Shoppers are becoming smarter and more sophisticated.
Shops selling, renting, and repairing second-hand luxury goods are springing up across China. High-end consignment shops from Japan and Hong Kong that buy and sell second-hand goods are more common now too.
Milan Court was one of the first pre-owned luxury stores in Shanghai when it opened eight years ago. But its owner Liu Lian says she only recently started putting her logo on the store’s shopping bags because consumers used to be ashamed about being caught buying used goods.
There are now signs that the stigma is melting away. Since 2009, Milan Court has posted double-digit annual sales growth, and the shop has hundreds of bags for sale, many on consignment from individuals. Ms. Liu has opened six shops in Shanghai and plans to expand to other provinces.
Shoppers in China are becoming more sophisticated. Why spend top dollar for something that many other high-end shoppers have when you can get it for a bargain? This seems to be the beginning of a new trend, a trend we’ve seen in other places like the New York, London, and Korea. We could see an influx of boutique shops catering to the consumer segment, offering luxurious yet more low-profile goods that these shoppers would be proud about finding.