China’s booming second-hand market is perfect for penny-pinching, but maybe skip the used socks
- Hundreds of millions of China’s second-hand e-commerce shoppers are finding the market heavily saturated after decades of consumption-fuelled economic growth
- The trade of used goods in China has become more commonplace as e-commerce platforms have matured and reduced some of the online fraud that was once more commonplace
Kang Yu, a 24-year-old PhD student in Shanghai, has been buying mainly second-hand items online for four years, penny-pinching wherever she can to maintain her financial independence in a time when economic hardships and uncertainties have become increasingly commonplace.
The pre-owned items she seeks out are mainly bigger necessities such as home appliances and furniture: “Large items are expensive new, but buying used ones at a cheaper price is a win-win for the buyer and seller,” she explained. “Plus, it’s actually a hassle to get rid of large appliances, and it’s easier for someone to take them away.
“If there is no particular need for the items to be new, like with underwear and socks, I will usually consider buying second-hand.”
Kang is one of more than 243 million second-hand e-commerce shoppers in China. The value of second-hand e-commerce transactions in China reached about 240.12 billion yuan (US$33.8 billion) in the first half of 2022, and it is likely to reach 480.24 billion yuan by the end of the year, up 20 per cent from last year, according to the market research platform 100ec.
After decades of rapid economic growth, China’s people have amassed a stockpile of excess goods. Some are old but still-useful items that have been replaced by newer versions. Others are as good as new, perhaps rarely used.
And in a time of pandemic-induced economic difficulties, this second-hand market has become not only ripe for the picking, but also an essential means of saving money.
“Excess consumption by residents has led to significant growth in the total volume of used items, which has increased competition levels in the second-hand market, with lower prices raising the willingness of downstream users to buy,” said Peng Zhiwei, an analyst with market research consultancy huaon.com.