China’s growing middle class can now shop online for second hand handbags, watches and fashion accessories. Secoo, the e-boutique for second hand luxury products just received a record $100 million round of funding to build on its current success.
Middle-class Chinese with money to spend have a hard time showing off their new wealth. It is hard to find luxury goods that really make you stand out and big international brands suffer high import taxes, making them more expensive and unreachable.
Secoo functions as an online consignment shop for second hand luxury goods. Sellers can either complete the entire consignment process online, or take items to the company’s brick-and-mortar ‘Secoo Clubs’ in Beijing, Qingdao, or Shanghai. Appraisers evaluate items for condition and authenticity. Secoo has clubs in Hong Kong and Tokyo, and is planning on opening more in Milan, New York, and Paris.
Secoo’s research has shown that millions of Chinese consumers are interested in buying second-hand Gucci bags and Rolex and Cartier watches, as long as the products are the real thing. To assure consumers that the goods circulating in the market are not counterfeit, the site employs appraisers from the United States and Japan.
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