China’s secondhand goods trading sector is on the verge of significant growth, driven by young, internet-savvy, and environmentally conscious consumers who prefer to buy or share affordable used products online.
The government’s recent initiatives to promote large-scale equipment renewals and trade-in programs for consumer goods are expected to further stimulate consumer spending, unlock domestic demand, and lay the groundwork for economic recovery.
Ding Jian, president of Xianyu, Alibaba Group’s online platform for secondhand goods, highlighted the increasing focus of young Chinese consumers on sustainable, green shopping. He noted that the purchase of secondhand items is seen as a cost-effective and environmentally friendly choice. Xianyu plans to collaborate with relevant government departments to expedite the establishment of standardized systems for the secondhand market, enhancing recycling efficiency and reducing carbon emissions.
The platform will also utilize digital technologies, such as artificial intelligence, to continuously innovate in the trading of secondhand items, promoting the reuse of idle resources and supporting trade-in deals for consumer goods.
In late July, China announced an allocation of approximately 300 billion yuan ($42 billion) in ultra-long-term special treasury bonds to support large-scale equipment upgrades and trade-in initiatives, aiming to capitalize on domestic demand.
Ding mentioned that the new trade-in program will encourage consumers to replace outdated products with environmentally friendly, energy-efficient alternatives. This is expected to significantly boost the circulation of idle goods, presenting new opportunities for growth in China’s secondhand market and circular economy.
Xianyu’s daily active users have been steadily increasing, reflecting the rapid development of the country’s secondhand trading sector. Since its launch in 2014, Xianyu has grown to become one of China’s largest online platforms for used goods, with over 500 million accumulated users and more than 4 million products posted daily.
The trade-in program is also beneficial for phasing out high energy-consuming goods with declining performance, further stimulating consumer spending and driving economic growth.
Industry experts suggest that trading underutilized or unwanted goods is crucial for promoting efficient resource utilization, supporting China’s dual-carbon goals, and fostering sustainable development.
Government agencies have called for efforts to ensure the standardized and orderly development of the secondhand goods market. This includes third-party appraisals for high-value used items, improving recycling networks, and enhancing the processing of renewable resources.
While the outlook for the secondhand goods business is promising, success will depend on overcoming challenges such as raising public awareness of the value of used goods, establishing effective recycling systems, innovating marketing strategies, and strengthening brand recognition. Achieving these goals will not only yield economic benefits but also contribute to environmental protection and resource conservation.
