Used consumer goods trade in China
China has traditionally associated buying used goods with financial insufficiency. Since the 1970s, the country experienced profound economic reforms that helped end poverty throughout a number of towns and villages. At that time, owning brand new products was considered a symbol of affluence and success. Nevertheless, like many of their western peers, younger generations in China have developed a more sophisticated shopping pattern than their parents, including being open to the circular economy.In 2020, China's second-hand market surpassed one trillion yuan, nearly quintupled compared to 2015. Pre-owned consumer electronics, mainly smartphones, contributed to about 40 percent of China's second-hand sales . According to a survey in 2020, more than one out of five male consumers in China bought used smartphones, and consumers from middle-size cities were more likely to purchase second-hand phones than those who reside in metropolises. In contrast, when it comes to second-hand luxury sales, female consumers and those living in larger cities dominate the market . For many of China's young consumers, buying used luxury items is not only for saving money but also to demonstrate their fashion tastes .
Re-commerce in China
In China, the rapid development of e-commerce has also allowed consumers to buy or sell second-hand items on online flea markets. At the end of 2021, approximately 223 million Chinese consumers used re-commerce services, accounting for almost one-fourth of the country's online shoppers .China's re-commerce services providers primarily conduct their businesses via C2C and C2B2C modes. Alibaba-owned app Xianyu, also known as Idle Fish, remained China's most popular C2C re-commerce platform. While Zhuanzhuan, jointly funded by Tencent and 58.com, ranked second with about nine million monthly active users . Additionally, second-hand luxury goods trade platform Plum and Dewu, as well as consumer electronics trade platform ATRenew , were some of China's most popular C2B2C re-commerce platforms.
