Entertainment

The “Cool Factor” Driving Secondhand Luxury Sales in China

The following is an excerpt from Jing Daily’s newest market report, Leveraging China’s Online Luxury Resale Boom. Packed with case research, revenue-generating finest practices, highlight interviews, and in-depth profiles of home Chinese resale platforms, the 68-page report is essential for anybody seeking to perceive the large potential of secondhand luxurious demand in China.

The rise of social media, brief video, and devoted interest-based platforms has given a millennial and Gen Z-palatable sheen to secondhand luxurious, enabling connections and the formation of communities amongst fans. The fashion-focused social platform Xiaohongshu (often known as Little Red Book or RED) is a prime vacation spot for younger shoppers to indicate off their private model and for impartial shops to advertise themselves to a younger and eager-to-spend consumer base. Launched in 2013, Xiaohongshu has 100 million principally feminine month-to-month lively customers, with greater than 70 p.c born after 1990.

And whereas Xiaohongshu initially developed as an Instagram-like app for customers to flaunt their life, newer social traits and official disapproval of ostentatious shows of wealth have spurred creation of extra content material round classic buying and micro-trends like MIY (make-it-yourself).

In April 2021, Xiaohongshu launched new neighborhood pointers to ban extreme promotion of luxurious amongst customers and to require disclosure of commercials and sponsored content material. In August 2021, Xiaohongshu introduced it could take away hyperlinks on content material that go to e-commerce websites, together with Tmall, Taobao, WeChat mini packages, and even its personal on-line store. The solely exception might be for hyperlinks that seem throughout livestreams.

Xiaohongshu didn’t elaborate on the choice aside from stating that it goals to “enhance the consumer expertise.” Xiaohongshu already requires that any sponsored content material be registered with the platform and clearly labeled as such, which has prompted some influencers to undertake extra delicate promotional methods to get across the guidelines. Thus eradicating all buying hyperlinks from Xiaohongshu posts creates one other barrier and can, in idea, result in extra genuine and goal influencer content material.

Livestreaming presents sellers a technique to present secondhand luxurious items intimately and reply to shopper inquiries in real-time. Image: Weibo

Although the brand new coverage dangers alienating customers who’re accustomed to having the ability to store as they scroll, the transfer displays Xiaohongshu’s larger ambition of bolstering its personal e-commerce ecosystem (a lot as Douyin has executed), and accompanies one other set of latest measures aimed toward getting manufacturers and retailers to open retailers on the platform. Xiaohongshu stands to win massive by drawing its 300 million customers to observe e-commerce livestreams, the place exterior buying hyperlinks are nonetheless allowed and the platform’s personal retailers are prioritized.

What is shaping up in China is an surroundings during which resellers and content material creators alike have to be more and more inventive, as platforms change their e-commerce insurance policies whereas authorities stress ratches up on tech firms. These traits are unlikely to trigger curiosity in luxurious or vogue influencers to dry up totally. Rather, it means customers need to take totally different approaches, maybe mixing and matching appears that mix new designer items with classic finds and selling sustainability within the course of.

This additionally creates a possibility for secondhand vogue and luxury-centric influencers in addition to resale platforms. Even tv packages recognized for selling a high-end way of life such because the summer time 2020 hit Nothing But Thirty, integrated a reference to the secondhand luxurious growth with the Shanghai-based boutique Vintage Musevie making a cameo.

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