China’s luxury market is transforming as buying new items is no longer the sole way to access designer brands. At the forefront of this change stands ZZER, a second-hand luxury retailer that has expanded from an online platform into a major physical presence, directly challenging established high-end retailers.
In Chinese, the company is called 只二. It operates large warehouse-style stores filled with thousands of pre-owned items from brands like Louis Vuitton, Gucci, Dior, and Hermès. Unlike traditional luxury boutiques, ZZER emphasizes scale, transparent pricing, and accessibility. Its flagship store near Shanghai’s Hongqiao transport hub opened in December 2022, covering 3,000 square meters and attracting over 100,000 visitors within six months. By 2025, the space had grown to nearly 10,000 square meters, hosting more than 100,000 products from 5,000 brands, according to China Daily.
Products are arranged in a supermarket-like layout, with QR codes offering pricing and authentication details. This shift mirrors broader trends in China’s luxury sector, where demand for second-hand goods is rising amid growing economic pressures.
According to Bain & Company, China’s mainland personal luxury market contracted by 3% to 5% in 2025, following a 17% to 19% decline in 2024. Meanwhile, the second-hand luxury sector expanded by 15% to 20%. Despite this growth, second-hand luxury still accounts for less than 10% of China’s overall luxury market—significantly lower than the 20% to 30% share seen in developed markets.
For younger buyers, platforms like ZZER provide a way to own high-end brands at reduced costs. A Chanel handbag or Rolex watch purchased second-hand retains the same status appeal while lowering the financial barrier.
For luxury brands, this shift presents both challenges and opportunities. When consumers can buy a nearly new Hermès bag for half the retail price, the incentive to pay full price weakens. Bain’s 2025 data shows leather goods and handbags declined by 8% to 11%, while watches dropped by 14% to 17%.
However, the secondary market also benefits brands by increasing product liquidity. Consumers may spend more on a purchase if they know they can resell it later. In China, where buying used luxury goods was once stigmatized, attitudes are evolving. Platforms like ZZER, combined with livestreaming and authentication services, have made second-hand luxury mainstream.
Unlike online transactions, ZZER’s warehouses allow customers to browse, compare, and even sell their own items in the same space. This creates a circular economy where one person’s unwanted luxury item becomes another’s affordable purchase.
China’s property downturn and cautious consumer spending have led households to reassess discretionary purchases. Reuters reported in 2022 that ZZER experienced rising demand from both sellers and buyers, as consumers sought discounts while others liquidated assets.
