CHINA's second-hand and grey markets for luxury goods are booming, as price hikes from luxury brands in a weak economy are prompting some shoppers to buy, reports Reuters.
The market, estimated to be worth US$57 billion a year, has been fuelled in recent years by the rise of platforms such as DeWu, where luxury products, often sourced overseas, are sold at discounts from 20 per cent to over 50 per cent to prices at Chinese flagship stores.
LVMH, the world's biggest luxury group, reported a three per cent fall in quarterly sales last week, undershooting estimates in its first decline in quarterly sales since the pandemic as demand in China and Japan weakened.
Italy's Salvatore Ferragamo also reported a fall in quarterly revenue, hit by a slowdown in demand from China.
'As long as there are price gaps [between China and other countries], there is the opportunity for price sensitive consumers to go to the gray market,' said Max Piero, CEO of luxury intelligence consultancy Re-Hub, which tracks grey market luxury purchases in China.
SeaNews Turkey
The market, estimated to be worth US$57 billion a year, has been fuelled in recent years by the rise of platforms such as DeWu, where luxury products, often sourced overseas, are sold at discounts from 20 per cent to over 50 per cent to prices at Chinese flagship stores.
LVMH, the world's biggest luxury group, reported a three per cent fall in quarterly sales last week, undershooting estimates in its first decline in quarterly sales since the pandemic as demand in China and Japan weakened.
Italy's Salvatore Ferragamo also reported a fall in quarterly revenue, hit by a slowdown in demand from China.
'As long as there are price gaps [between China and other countries], there is the opportunity for price sensitive consumers to go to the gray market,' said Max Piero, CEO of luxury intelligence consultancy Re-Hub, which tracks grey market luxury purchases in China.
SeaNews Turkey