China’s luxury resale market is projected to reach a valuation of $33 billion by 2025, according to iResearch.
The sector is currently valued at around 51 billion yuan ($8 billion) last year, as the pandemic sped up the growth of ecommerce.
The industry’s compound annual growth rate (CAGR) of 32.5 per cent is expected to boost it to new heights by 2025.
Last year, over 50 per cent of in the individual sellers in the market were born after 1990, with over 80 per cent being female.
The luxury resale sector accounts for around five per cent of China’s total luxury market, according to the report.
This is relatively low when compared to the same figure in the US (31 per cent) and Japan (28 per cent).
The growth of the industry has been attributed to the country’s vast ecommerce infrastructure which includes platforms such as Alibaba’s Tmall, where luxury brands are highly sought after.
Livestream shopping, which is highly popular in China has also been cited as a reason for the sector’s rapid growth, and will continue to help it climb within the next few years.
Counterfeits are a big problem for the sector, with Beijing cracking down hard on ecommerce sites that sell the fake goods.
Alibaba, Pinduoduo and other major Chinese ecommerce companies have all previously been accused of allowing counterfeit goods to flourish on their platforms for years, with both featuring on the US government’s ‘Notorious Markets’ list last year.
The State Administration for Market Regulation (SAMR), China’s market watchdog responsible for the recent spate of regulatory crackdowns, revealed proposals to amend the country’s ecommerce laws in September as a result.
“The problem is that the fake products today, they make better quality, better prices than the real products, the real names,” Alibaba’s co-founder Jack Ma once said.