Second-hand Industry Development Report (2024)
China Resale Goods Trading Association
Supporting Organizations
WS Network Economics, Wanwu Xinsheng, Zhuanzhuan, YouxianYoupin, GEII Green Recycling (Limited Resources, Infinite Recycling), PONHU, PURE LINK Environmental, SHESHOUDUO, KOPENHAGEN FUR
September 2024
Table of Contents
Overall Development Situation
- Steady Growth in Transaction Volume
- Increasing Improvement of the Industrial Chain
- Continued Expansion of Business Categories
- Significant Rise in Market Popularity
- Accelerated Progress in Standardization
Main Business Models
- Physical Markets Awaiting Activation
- Online Market Remains Hot
- Flea Markets Full of Vitality
- Positive Growth of Physical Retail Stores
- Social Media and Local Service Platforms Emerging
Trends and Outlook
- Continuous Improvement in Service Capabilities
- Expanding Sources of Resale Goods
- Multi-Model and Multi-Business Synergy
- Speeding Up the Application of Advanced Technology
- Initial Success in Cross-Industry Integration
- Breakthroughs in Expanding Overseas Markets
- Refining Second-hand E-commerce Policies
Section 1: Overall Development Situation
2023 marked the first year of fully implementing the spirit of the 20th National Congress of the Communist Party of China, as well as a key year for transitioning into the “14th Five-Year Plan” and setting the stage for the 2035 long-term development goals. The 14th Five-Year Plan for national economic and social development and the 2035 Vision Outline emphasized the importance of green consumption and resource recycling. Against this backdrop, the second-hand goods circulation industry has been continuously improving its industrial chain, innovating business models, and driving the sustained rise in market interest.
1. Steady Growth in Transaction Volume
In 2023, the national second-hand goods circulation industry saw steady growth in transaction volume. According to data compiled by the China Resale Goods Trading Association and various institutions, the total transaction volume for the year reached approximately 1.32 trillion yuan, representing a 5.6% year-on-year growth. Of this, online transactions accounted for 552 billion yuan, a 15% increase compared to the previous year.
2. Increasing Improvement of the Industrial Chain
The traditional second-hand goods industry was mainly driven by individual entrepreneurs, with the “buy and sell” model being the core approach for these small operators. However, in recent years, with national policies encouraging green consumption, “Internet + second-hand goods,” and the growing public awareness of savings and environmental protection, second-hand goods enterprises have begun to emerge and grow. A full-chain business model, represented by acquisition (recycling), distribution, and services, is gradually becoming the mainstream.
By 2023, a number of “leading” companies such as ZHUANZHUAN, AIHUISHOU, SHESHOUDUO, and PONHU have formed in the industry. On the acquisition (recycling) side, businesses are leveraging Internet technology to allow residents to connect with merchants at any time, benefiting from broad coverage and transparent information, thereby better meeting market demand. On the distribution side, due to the richness and aggregation of second-hand goods from the acquisition phase, many small and medium-sized businesses have come to purchase, saving costs related to sourcing, information, and authentication. The service side has developed standard services including sorting, authentication, and delivery.
3. Continued Expansion of Business Categories
In recent years, the range of second-hand goods has expanded beyond traditional categories such as electronics, furniture, books, and machinery to include luxury goods, clothing, entertainment and sports equipment, toys, and commercial kitchen equipment. These categories now cover almost all durable consumer goods and production materials. According to the China Resale Goods Trading Association’s survey of typical product categories in 2023:
- Electronics and electrical products accounted for 41.34% of transaction volume.
- Luxury goods, furniture, and clothing made up 25.13%.
- Commercial kitchen equipment and machinery accounted for 13.1%.
- Books and other categories comprised 19.02% of the total transaction volume.
4. Significant Rise in Market Popularity
In addition to the guidance from the government and media, the growing awareness of environmental protection and savings among consumers, many businesses have adopted more professional authentication techniques. By strictly controlling the quality of second-hand goods and selecting more refined products for resale, along with improving their service systems — including after-sales support — these businesses have greatly boosted consumer confidence in purchasing second-hand items. According to a survey by the China Resale Goods Trading Association, 78.3% of people have engaged in second-hand transactions, while 21.7% have not. Regarding the channels for buying and selling second-hand goods, 41.5% prefer regulated physical second-hand markets; 39.5% opt for large online trading platforms; 27.0% choose street or mall stores; 21.5% shop at campus flea markets; 14.4% at community flea markets; 6.6% buy from street vendors; and 5.9% use other channels.
5. Accelerated Progress in Standardization
Currently, the second-hand goods circulation standard system encompasses more than 30 projects, including published standards, those under development, and those scheduled for initiation. The framework for these standards, primarily focused on national and industry standards, with supplementary group standards, has been further refined (see Figure 4). In 2023, three industry standards, such as Second-hand Goods Terminology, were completed and are undergoing review and approval. Additionally, group standards led by enterprises, such as the Basic Requirements for Second-hand Goods Authentication Institutions and Technical Requirements for the Circulation of Second-hand Office Furniture, are paving the way for specialized sector standards. Notably, Beijing Zhuanzhuan Spirit Technology Co., Ltd. and Guangzhou LeRen Recycling Instruments Co., Ltd. were selected as 2023 Leading Enterprises for Corporate Standards.
6. Ongoing Optimization of Talent Pool
In 2005, the Ministry of Commerce and the former Ministry of Labor and Social Security issued the “Notice on Promoting the Vocational Qualification System for Appraisers in the Resale Goods Industry.” The China Resale Goods Trading Association took the lead in formulating national vocational skill standards and related training materials, laying a solid foundation for industry talent development. According to a survey by the China Resale Goods Trading Association, by 2023, nearly 80,000 people had participated in appraiser and evaluation skill training. Moreover, there has been a significant improvement in the educational background of industry personnel, with 19% of workers holding a college degree or higher, a nearly 10% increase compared to 2017.
Section 2: Main Business Models
1. Physical Markets Awaiting Activation
Physical second-hand markets are the foundation of the second-hand industry and the most basic platform for the trade of used goods. In 1996, the former Ministry of Domestic Trade initiated the trial of second-hand goods exchanges, which were based on physical markets. These markets can bring together business operators, improving transaction efficiency, eliminating “trust crises,” shortening transaction cycles, and facilitating industry management.
In China, large second-hand markets with transaction volumes exceeding 100 million yuan saw rapid growth between 2006 and 2007. In 2005, there were only 14 markets of this size. This number grew to 21 in 2006 and 39 in 2007, nearly 2.8 times the number in 2005. Both the number of stalls and transaction volumes saw significant growth, with the number of stalls increasing by approximately 167% and the transaction value in 2006 reaching 21.36 billion yuan, 4.53 times the volume in 2005.
However, after 2007, the number of large second-hand markets began to decline. With the exception of a noticeable recovery in 2009, the number of large second-hand markets and transaction volumes have generally decreased. By the end of 2022, there were only 5 markets with transactions exceeding 100 million yuan, a reduction of 2 from 2021. The total transaction volume also dropped from 6.7 billion yuan in 2021 to 1.46 billion yuan, a decrease of 78.2%, with the number of stalls falling by 27.2%.
The decline in physical markets is mainly attributed to the lack of policy support. In many regions, physical markets have not been included in urban and rural planning or commercial infrastructure planning. Without guaranteed planning, many physical markets have been demolished arbitrarily. In most cases, the demolition does not provide compensation for operating spaces, severely disrupting the stability of physical circulation, while the supervision and management of these markets has become a difficult challenge.
2. Online Market Remains Hot
In 2002, Kongfuzi Used Books launched online, marking the beginning of China’s exploration of second-hand online trading. Since then, various comprehensive second-hand trading platforms have emerged. Between 2018 and 2020, second-hand online trading entered its market initiation phase.
In 2018, issues like fake products and information asymmetry caused problems in the online second-hand market, leading to financing difficulties and the exit of many start-up second-hand online businesses. This led to a wave of mergers in the market. In 2019, JD.com’s second-hand platform Paipai merged with Aihuishou and began exploring the C2B2C model. In 2020, Zhuanzhuan and Zhaoliangji merged, and the business model in the industry began to gain acceptance. In 2021, the government issued several policies that helped standardize and regulate the industry. Following these regulations, second-hand online trading began to experience rapid development. In June 2021, Aihuishou was successfully listed on the New York Stock Exchange, marking a new phase for online second-hand trading.
Currently, there are several business models for second-hand e-commerce, including C2C, C2B2C, C2B, B2B, and B2C. Among them, C2C and C2B2C are the dominant models for second-hand e-commerce.
Second-hand e-commerce platforms are primarily focused on the trade of second-hand goods, including second-hand sales, exchanges, and recycling. According to 100EC.cn, a leading e-commerce research platform, there are over 70 second-hand e-commerce companies, with 19 located in Beijing, 18 in Shanghai, 16 in Guangdong, 5 in Zhejiang, 4 in Jiangsu, and 2 each in Hubei, Chongqing, and Sichuan, with one each in Shaanxi and Fujian.
Notable second-hand e-commerce platforms include:
- Comprehensive platforms: Xianyu, Zhuanzhuan, etc.
- Electronics: Zhaoliangji, Aihuishou, etc.
- Luxury goods: Hongbulin, Zhi Er, Feiyu, etc.
- Books: Kongfuzi Used Books, Yuelin, etc.
According to Data from 100EC, the user base for second-hand e-commerce reached 580 million in 2023, growing by 25.26% year-on-year.
The rise of second-hand e-commerce has also attracted significant investment. As of July 2023, it was estimated that 15 billion yuan had been invested in the second-hand consumer electronics sector, 3.5 billion yuan in luxury goods, and 500 million yuan in the book sector.
3. Flea Markets Full of Vitality
In recent years, flea markets organized by residential communities and universities have gradually become a popular trend. Community flea markets have become widespread, with markets operating not only in large cities but also in remote towns. For example, in Wulii Town in Bayingol Mongol Autonomous Prefecture, Xinjiang, a “Neighborhood” flea market was held in May 2023. Additionally, flea markets in universities have been established, some spanning thousands of square meters and showing a trend of gradual expansion. For example, the Xiamen University Flea Market in the university town is visited by nearly 1,000 vendors and over 40,000 buyers every week, with weekly transaction volumes reaching millions of yuan. Whether on campus or in communities, flea markets offer simple transaction processes (instant trading), clear target consumer groups (teachers, students, local community members), and features of environmental friendliness and economical living.
According to a survey, 98% of people support organizing flea markets. 75.4% believe flea markets provide convenience to life, 62.6% think they solve urgent life needs and employment issues for disadvantaged groups, 41.1% believe flea market prosperity is an indispensable part of urban culture, 38.5% see flea markets as a form of leisure and entertainment, and 35.8% think flea markets can stimulate the development of related industries.
4. Positive Growth of Physical Retail Stores
The growth of physical retail stores, including consignment stores, has become a new highlight with a promising outlook. According to relevant data, by the end of 2023, there were over 300,000 physical stores engaged in second-hand goods retail and consignment across the country. These physical stores primarily focus on the sale of second-hand luxury goods. The advantage of physical stores lies in their ability to provide customers with a direct shopping experience, reduce the risks of online shopping, and offer after-sales services, which increase consumer trust. Physical stores are typically located in bustling urban areas, with business premises usually consisting of 2 or 3 storefronts, using decoration and display techniques to enhance their image and attract consumers. In recent years, major online platforms such as Wanwu Xingsheng, Zhuanzhuan, and Xianyu have been actively setting up physical stores or locations within commercial complexes.
5. Social Media and Local Life Service Platforms Gaining Ground
A unique trading ecosystem has emerged within the second-hand transaction circles on social media. Users post second-hand goods on platforms like WeChat, Weibo, and Xiaohongshu (Little Red Book) and engage directly with potential buyers. This mode of trading is characterized by high user activity and rapid transaction frequency, making it particularly suitable for small items or products that need to be sold quickly. Additionally, second-hand trading on social media platforms has a certain social aspect, allowing users to share their trading experiences and enhancing trust in transactions.
Local life service platforms also play an important role in the circulation of second-hand goods. These platforms are often regionally focused and offer a wide range of services, enabling users to access second-hand goods information conveniently and engage in offline transactions or pickups. In addition, some platforms provide value-added services such as home collection and valuation, further enhancing the user experience.
Section 3: Trends and Development Outlook
1. Continuous Improvement in Service Capabilities
Second-hand goods businesses, especially leading enterprises, will continue to advance the construction of physical locations, accelerate their integration into urban commercial districts formed by multiple business formats, and accelerate the establishment of large regional centers that include warehousing and display. At the same time, service models supported by digitalization will be created, speeding up the iteration and upgrade of acquisition (recycling), distribution processes, and services, enhancing the full-scenario market service capabilities for sellers, distributors, and consumers, thus improving the efficiency of the industry chain. Precision acquisition (recycling), meticulous service, and refined management will be prioritized.
The industry concentration will further increase, and the advantages of large-scale operations will become more apparent. Leading companies will enter the era of chain operations, promoting franchise businesses. As enterprises continue to expand in scale, they will inspire more trust among sellers and buyers, attract more clients, offer a broader range of second-hand goods, and expand their outreach and influence.
2. Richer Sources of Supply for Second-Hand Goods
The second-hand goods industry is largely driven by supply — operators need to acquire sufficient sources from households and individuals to provide a wide selection for consumers. After China’s per capita GDP exceeded $8,000, the upstream sources of second-hand goods — the new product retail sector — further exploded. Whether it’s rational or impulsive consumption, “buy-buy-buy” has become the norm. The frequency of product upgrades has accelerated, and technological advances have extended product lifecycles, leading to a significant increase in the volume of second-hand goods accumulated in households. As a result, people’s willingness to dispose of these items has also risen steadily. According to a survey by the China Resale Goods Trading Association, 97.2% of households and individuals have second-hand goods. 76.5% of people have sold second-hand goods, 19.5% wish to sell second-hand items but don’t know how, and 4.1% of people do not want to sell them.
3. Collaborative Development of Multiple Business Formats and Models
With the diversification of consumer demand channels, business enterprises are speeding up innovations in business models, and a trend of diversification is becoming increasingly evident. Online businesses, supported by digital marketing, gather users and open offline experience stores, allowing consumers to test products before purchase and enjoy after-sales maintenance services. This addresses the sensory and trust issues often missing in online transactions. Physical markets are using tools like WeChat groups and mini-programs to connect offline second-hand transactions, share trading experiences, and overcome challenges such as limited reach and customer acquisition.
In addition to the traditional “buy and sell” model, many companies are increasingly adopting consignment and auction models to expand their business strategies. Furthermore, the exploration of new and emerging models, such as private domain e-commerce and social commerce, is beginning to merge with industry development.
4. Accelerated Application of Advanced Technologies
The rapid development of “Internet+” poses new challenges for traditional second-hand goods markets. Supply chain management technology will continue to enhance the information management capabilities, intelligence, transparency, and professionalism of the entire process from recycling (acquisition) to final sale, thus optimizing the management system of second-hand goods transactions.
Technologies such as artificial intelligence and big data will enhance the efficiency and transparency of second-hand goods verification, benefiting sellers, operators, and consumers alike. These technologies can accurately assess the quality, value, and authenticity of second-hand goods, reducing fraud and misunderstandings during transactions. Additionally, AI and big data can precisely recommend the most suitable second-hand goods to consumers, improving transaction rates and reducing transaction costs.
5. Initial Successes in Cross-Industry Integration
Second-hand goods are often rich in history and unique stories, making them particularly appealing when integrated with nostalgia culture and vintage art. The influence of nostalgia and vintage art will drive the popularity of distinctive items in the second-hand market, such as second-hand books, clothing, collectibles, and artwork. This fusion of cultural and artistic elements is not only enhancing the appeal of second-hand goods but also opening up new business opportunities and expanding growth space for the second-hand industry.
6. Breakthroughs in Expanding Overseas Markets
As early as the beginning of this century, second-hand goods traders in China’s border and coastal areas began small-scale export activities, trading second-hand goods and surplus consumer goods with developing countries such as Laos, Myanmar, and Russia through sales or barter. Second-hand export trade aligns with the general trend of second-hand goods flowing between different consumption levels and between economically developed and underdeveloped regions. In 2019, China introduced policies to promote the export of second-hand cars, which had a positive impact on the second-hand export market. Leading companies in the industry began exploring the export of second-hand clothing, mobile phones, luggage, and machinery, achieving significant progress even though the export market is still in the exploratory phase. The development of second-hand exports is expected to break the domestic “bottleneck,” increasing the demand for higher-quality new goods while also upgrading the consumption structure.
7. The Policy Landscape for Second-Hand E-Commerce Will Improve
Second-hand e-commerce has gone through several stages of development: the exploration stage (2002–2013), the startup stage (2014–2018), the cooling-off stage (2018–2020), and the rapid growth stage (2021-present). Throughout its development, second-hand e-commerce has faced operational challenges such as counterfeit products, information asymmetry, industry standardization issues, and financing difficulties. Platforms have also faced pressures to expand their business scope and transform their operations.
On the policy front, government and regulatory bodies have been actively addressing the characteristics of the second-hand e-commerce industry by introducing a series of more refined and targeted measures. These policies not only clarify operational standards for platform enterprises, such as product information publishing standards, transaction process management, and after-sales service guarantees, but also refine the responsibilities and scope of platform enterprises. Specifically, platforms are required to take responsibility for vetting the qualifications of merchants, monitoring product quality, protecting consumer rights, and ensuring data security. This means that when consumers encounter counterfeit products, false advertising, or transaction fraud on second-hand e-commerce platforms, they will have effective channels for protecting their rights, while violators will face legal sanctions and market elimination.
Our Perspective on the Report
The findings in the Second-hand Industry Development Report (2024) highlight an encouraging trajectory for China’s second-hand goods industry. From steady growth in transaction volume to advances in standardization, the domestic market is not only becoming more robust but also increasingly aligned with global sustainability trends.
At DoDoBird Used Clothing, we take pride in being a key player in this evolving industry. As the first company to establish standardized quality systems for second-hand clothing circulation in China, we ensure consistency, transparency, and reliability in our processes. This commitment has enabled us to provide high-quality second-hand apparel to over 140 countries, bridging the gap between China’s recycling excellence and the growing global demand for sustainable fashion.
The report’s insights into cross-industry integration and the expansion of overseas markets reinforce the strategic importance of second-hand clothing exports. By leveraging China’s competitive advantages — efficient recycling systems, cost-effective logistics, and advanced digital infrastructure — brands like DoDoBird are well-positioned to meet the diverse needs of international buyers.
As the second-hand industry continues to mature and innovate, we remain steadfast in our mission to promote sustainability and resource circulation. Through partnerships with global clients and adherence to international standards, we aim to redefine perceptions of second-hand clothing, fostering trust and building a shared commitment to a greener future.
We invite our partners worldwide to join us in this transformative journey — because together, we can make second-hand fashion a global standard for sustainability and success.
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