“The Rise Of Second-Hand Shops In China Is A Microcosm Of The Luxury Industry”
Milan Station is expanding rapidly in mainland China despite dozens of copycats
We’ve kept a close eye on the emergence of luxury second-hand shops in places like Shanghai and Shenyang, but with high-end consumption booming throughout China, these stores are now proliferating nationwide. Along with hugely popular chains like Milan Station, which was 2,100 times oversubscribed in its Hong Kong IPO this past May, dozens (if not hundreds) of “shanzhai Milan Stations” (山寨米兰站) have sprung up in cities like Chengdu, Dalian and Zhengzhou, as well as Beijing and Shanghai. Though “buyer beware” is very much the mantra at China’s second-hand luxury shops — many of which continue to stock the occasional counterfeit item — attractive prices and ample inventory make them irresistible for office workers who couldn’t otherwise afford authentic luxury goods.
While arguably good for consumers, the rapid spread of second-hand shops throughout China is causing headaches for established chains. Still, this isn’t hampering expansion efforts, and indeed the vast and growing market is attracting second-hand retailers from outside of China as well. From Hexun (translation by Jing Daily team):