Luxury shoppers in China stymied by travel disruption buy second-hand and from local stores as shortages bite

China’s high-end shoppers are finding it hard to splash their cash with the Covid-19 pandemic halting travel and causing shortages of imported goods

Sales of second-hand luxury goods on online platform Paipai jumped 138 per cent from 2019 during its summer sale

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Chinese women dance outside a Prada store in Beijing, China. Chinese luxury shoppers spend US$111 billion a year on luxury goods worldwide, but the pandemic has seen them refocus their attention on the local market. Photo: Getty Images

Published: 8:15pm, 10 Jul 2020Updated: 9:39pm, 10 Jul 2020

Jeff Meng, a 25-year-old watch lover from a well-heeled family in China’s Guangdong province, had 160,000 yuan (US$22,800) burning a hole in his pocket. He could not find the Rolex Daytona watch he wanted, dubbed “panda” for its black-and-white face, anywhere in China.

The coronavirus pandemic has halted travel and disrupted networks of parallel importers, so Chinese high-end shoppers like Meng – who collectively spend US$111 billion a year on luxury goods – are finding it hard to spend their cash.

Global luxury houses from Balenciaga to Montblanc have been forced to rethink how to reach consumers in China, despite their long-standing concerns about counterfeiters and powerful e-commerce platforms that set the rules. The halt to travel is also fuelling the rise of a second-hand luxury market in China as consumers seek certain styles or models they can’t find in local shops.

Before the pandemic, two-thirds of Chinese luxury purchases were made overseas, according to consultancy Bain. The spending took place either on shopping-spree holidays or via resellers called “daigou”. Meaning to “buy on behalf”, daigou are Chinese people living, studying or travelling abroad who buy sought-after goods from boutiques in Europe or the United States and bring them or send them to China.

“Now, travel is impossible, and daigou sellers are either back [in mainland China] or stranded in Europe,” Meng says. “The pandemic made me realise you can’t easily get what you fancy in China.”