Market players move to formulate standard for luxury industry
With prices of luxury products rising and the popularity of livestreaming e-commerce blossoming in the country, secondhand luxury products are seeing strong growth in China.
China has emerged as a major market for new and secondhand luxury products with significant growth potential, but a sound industry standard has not been established yet.
To this end, a professional committee for luxury products was established last Friday to better meet market demand by the China Entry-Exit Inspection and Quarantine Association－a voluntary nonprofit nationwide social organization composed of market players related to the entry-exit inspection and quarantine sectors of the country.
The committee aims to formulate industry standards and institutionalized communication mechanisms. By gathering experts, appraisal agencies and retailers together, the committee hopes to unify appraisal standards and assess the range of valuation of certain products.
China has become the largest luxury consumption market globally. In 2021, sales of personal luxury products in China reached 471 billion yuan ($74 billion), up 36 percent year-on-year, a report by consultancy Bain& Co said.
Unlike some Western markets, young Chinese consumers have become the main demographic for luxury spending in China, and the trend has been prominent in the secondhand luxury market as well, said a report by market research firm iResearch.
For secondhand luxury goods, its business scale accounts for 5 percent of the total luxury market in China, which is 20 percent to 30 percent lower than figures seen in some developed markets, according to a report by the University of International Business and Economics and Youshe Yipai, a platform for secondhand luxury deals.
Despite the fact that spending on luxury goods has grown rapidly in China, the nation has insufficient talent and experience in the luxury market.
"The professional committee should do more industry analysis, provide guidance to the sector and strengthen the fostering of more talents," said Wang Qinhua, a former senior official with the Ministry of Commerce.