An offline store in Zhuanzhuan can be seen in a shopping mall in Chongqing. (Photo/Qiu Xiaoya)

Chongqing - A Chongqing white-collar, surnamed Wang, born in the 1990s, recently purchased a used projector for under 2,000 yuan ($276.16). Compared to the brand new model priced at 2,988 yuan, Wang believed the second-hand option offered better value for money.

Actually, many young people nowadays share the same view as Wang.

According to estimates from the China Resale Goods Trading Association, the nationwide transaction volume of second-hand goods circulation grew steadily in 2023, reaching approximately 1.32 trillion yuan, a 5.6 percent year-on-year increase.

The "idle economy" involves buying, selling, or renting idle items in the second-hand market to maximize resource utilization and extend the value of products within their limited lifecycle.

Young people fueling the idle goods market

"More than half of my small appliances were purchased from second-hand platforms, like air purifiers and ovens," said Xia Wanwan, a post-1995 resident in Chongqing.

Xia explained that since her house is rented and many items might be hard to take with her when she moves, buying second-hand small appliances is more cost-effective than buying new ones.

According to Xia, she has spent a total of 9,500 yuan on purchases from a second-hand platform. If these items were new, their total cost would be about 40 percent higher.

It's not just about buying secondhand—more and more young people are also keen on selling idle items on resale platforms.

"I recently sorted through my clothes for the new season and listed those in good condition but no longer to my liking on a second-hand platform. In just half a month, I’ve sold four or five items and earned nearly 2,000 yuan," said Huang Shuang, a white-collar born in the 1990s.

Huang said it's better to put items back into circulation rather than letting them gather dust at home.

Data from second-hand e-commerce platforms showed that the 18- —to 34-year-old age group is the most active in second-hand consumption.

A recent report on China's e-commerce green development also revealed that people born in the 1990s and 2000s have a significantly higher understanding of green consumption compared to other age groups, reaching 70 percent and 79 percent, respectively.

"With the development of society, the traditional concept of 'buying new instead of old' is gradually fading. The younger generation, especially those born in the 1995s and 2000s, is more concerned about resource waste. Choosing to buy second-hand goods that meet actual needs has become a way for them to practice environmental protection," said Li Ran, head of the Department of Applied Economics at Chongqing Technology and Business University.

According to Li, the price advantage of second-hand goods has also attracted many price-sensitive young consumers, further driving the development of the "idle economy."

Business potential in idle goods consumption

At the same time, the popularity of trading idle goods has also given rise to new business opportunities in the second-hand market.

"Now, I can sell about forty second-hand luxury handbags each month, and the turnover time for each bag is about half a month. The pace is still relatively fast," said Dai Feng (a pseudonym), who began recycling second-hand luxury goods and trading in Chongqing two years ago.

He said that since the beginning of this year, he has noticed an increase in market demand, with more and more people entering this business.

Dai explained that initially, his business was solely online; however, as the volume grew, he opened a physical store at the end of last year. Customers can visit the store to purchase second-hand bags, watches, scarves, and more, he said.

"Although around 60 percent of the transactions still happen online, the offline second-hand store will definitely be the future trend," Dai stated.

According to data from Zhuanzhuan, a major online platform for second-hand goods transactions in China, the platform has opened over 500 offline stores nationwide, with Chongqing ranking among the top five cities with the largest number of stores.

The booming trend in the second-hand trading market is also reflected in the growth of major second-hand e-commerce platforms in China.

In March, data from second-hand goods marketplace Xianyu revealed that the platform's average daily transaction volume has surpassed 1 billion yuan, with over 100 million people listing idle items on Xianyu in the past year. Meanwhile, electronics recycling platform ATRenew Inc reported a revenue of 12.97 billion yuan for 2023, marking a 31.4 percent year-on-year increase.

According to Li Ran, the continued growth of the "idle economy" can be largely attributed to policies related to green consumption.

'Trade-in' has become one of the hottest consumption trends. Encouraging and promoting the trade-in of old products for new ones is an important part of the green, low-carbon transformation of the economy and society, and the trading and circulation of idle goods is one of the key forms of practicing green consumption, Li noted. 

Li believed that second-hand trading and trade-ins are mutually reinforcing. The trade-in process brings many idle items into the second-hand market. The better the trade-in system, the more effectively recycled items can enter the second-hand circulation, expanding the supply and volume of the entire second-hand industry.

Problems to solve

Still, the "idle economy" development still requires further improvements in standards and services.

"As a practitioner in the second-hand luxury goods recycling industry, the biggest problem is the lack of unified industry standards for the pricing, grading, and services of second-hand products," said Dai Feng.

For example, when selling a second-hand bag, it's unclear whether it is considered 95 percent new or 90 percent new and how to determine this — there are no unified standards, Dai explained.

According to Li Ran, second-hand goods are typical non-standard products with significant differences in price, quality, and other aspects. Quality inspection and evaluation have, therefore, become crucial parts of second-hand transactions. A comprehensive quality inspection and evaluation system should be established to thoroughly and accurately assess second-hand goods, ensuring their quality and safety.

Li suggested that platforms and enterprises should be encouraged to invest more resources in the research and application of quality inspection and evaluation technologies to improve their accuracy and efficiency. Li also proposed addressing issues like industry standards through pilot programs and gradual promotion, refining solutions through practical implementation.

For consumers, many second-hand trading platforms and sellers do not support unconditional returns, which increases the difficulty of protecting consumer rights.

"In second-hand transactions, information asymmetry is a key concern for consumers. The issue should be addressed by strengthening information disclosure and improving transparency," Li suggested.

According to Li, related authorities should streamline consumer complaint and reporting channels, encouraging consumers to rely on legal measures to safeguard their rights. Additionally, leveraging credit management, industry self-regulation, and media oversight can apply public pressure on unscrupulous sellers and raise the cost of violations.

(Qiu Xiaoya, a reporter from Chongqing Daily, contributed the Chinese version of this report.)