China's second-hand luxury goods transactions surged by 12%, LVMH、 Kaiyun is laying out official recycling platforms one

China’s second-hand luxury market has emerged as a pivotal growth engine in the global luxury industry, with a 12% year-on-year surge reflecting a profound shift in consumer behavior and market dynamics. This growth trajectory, outpacing the 3% expansion of the primary luxury sector, has prompted industry giants LVMH and Kering to abandon their historical resistance to the pre-owned market and instead establish official recycling platforms — a strategic pivot that redefines luxury’s relationship with circularity, exclusivity, and consumer trust. This analysis examines the market forces driving this transformation, the competitive strategies of these luxury conglomerates, and the long-term implications for China’s luxury ecosystem, drawing on academic research and industry data to contextualize this paradigm shift.

China’s second-hand luxury market has evolved from a niche segment to a mainstream phenomenon, with Bain & Company reporting 15-20% growth in 2025 despite a 3-5% contraction in the primary luxury market. The 12% surge cited reflects a broader trend of "luxury democratization" — a term coined by marketing scholar Ki et al. (2024) to describe how pre-owned channels make luxury accessible to price-sensitive consumers while maintaining brand prestige. This growth is particularly remarkable given China’s second-hand luxury penetration rate remains at just 5-10% of total luxury sales, compared to 20-30% in mature Western markets, indicating significant untapped potential.

The 12% surge is driven by three fundamental shifts in Chinese consumer psychology:

These shifts align with Lipovetsky’s (2002) theory of "light luxury," which posits contemporary luxury consumers prioritize experience, mobility, and meaning over traditional opulence — values perfectly embodied by the second-hand market’s emphasis on access, sustainability, and storytelling.

The 12% growth is also supported by maturing market infrastructure:

• Digital Platform Proliferation: Xianyu (Alibaba), Zhuanzhuan, and Red 布林 have created seamless C2C and B2C trading ecosystems, processing over 300 million luxury transactions annually
• Authentication Ecosystem: China Origin Inspection Co. (COIC) and other agencies provide third-party verification, resolving the "trust deficit" that historically limited pre-owned luxury adoption
• Policy Support: China’s National Development and Reform Commission has identified high-value luxury goods as priority sectors for circular economy development, encouraging formalization of the second-hand market

For decades, luxury conglomerates viewed the second-hand market as a threat to brand exclusivity, with many implementing policies to discourage resale — including voiding warranties for pre-owned items and refusing to service authenticated products from non-official channels. This resistance stemmed from two core concerns:

1. Brand Dilution: Fear that widespread pre-owned availability would erode luxury’s scarcity premium
2. Quality Control: Anxiety about counterfeit proliferation and inconsistent product conditions damaging brand reputation
3. Revenue Cannibalization: Worries that second-hand purchases would substitute primary market sales

LVMH and Kering’s recent foray into official recycling platforms represents a calculated response to the 12% market surge, repositioning pre-owned channels as strategic assets rather than threats:

LVMH has developed a comprehensive circularity framework comprising multiple interconnected platforms:

• Weturn: Launched in 2024, this consumer-facing takeback program allows customers to trade in pre-owned LVMH products for store credits or cash, with authenticated items resold through official channels
• Nona Source: An internal start-up that repurposes dormant stocks and production scraps into new designs, reducing waste while creating limited-edition "circular couture" collections微博
• CEDRE Dismantling Platform: Specializes in end-of-life product disassembly, recovering valuable materials for reuse in new luxury goods
• Re-Crafted by RIMOWA: A premium restoration service that extends product lifecycles while maintaining brand integrity

This ecosystem aligns with Carvajal Pérez et al.’s (2020) research showing luxury brands that embrace circular practices see a 27% increase in brand loyalty among sustainability-conscious consumers.

Kering has adopted a similarly ambitious approach:

• Kering Pre-Owned: Launched in 2025, this official resale platform offers authenticated pre-owned Gucci, Saint Laurent, and Bottega Veneta products, complete with manufacturer warranties
• Material Innovation Lab: Focuses on developing recyclable luxury materials, with 30% of Kering’s 2025 collections incorporating recycled components
• Partnership with Vestiaire Collective: A strategic alliance that combines Kering’s brand authority with Vestiaire’s technological infrastructure, creating a hybrid model that bridges official and independent resale channels

Kering’s strategy reflects MacCormack & Zheng’s (2022) finding that "moderate disruption" — maintaining brand identity while embracing controlled innovation — yields the strongest market response in luxury sectors.

The conglomerates’ investment in recycling platforms serves five interconnected objectives:

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