A technician from Zhuangzhuang, a Chinese second-hand trading platform, inspects electronic products during an on-site recycling collection. (Photo/Zhang Chenlin)
Chongqing - The 2025 High-Quality Development Conference of the Second-Hand Economy recently opened in Chongqing. Chang Dalei, Executive Vice President of the China Resale Goods Trading Association, said second-hand goods circulation is shifting from practical, cost-driven buying to a new consumption model.
For years, second-hand trading was linked to fragmented markets, pawn shops, and informal transfers. The industry faced challenges such as poor information, inconsistent product quality, and a lack of transaction security, which limited market growth.
Today, the second-hand trading industry is rapidly emerging as a trillion-yuan market. Data shows 78.3% of Chinese people have engaged in second-hand transactions, and 97.2% own second-hand goods. By 2024, the market is projected to reach 1.69 trillion yuan (239.1 billion U.S. dollars), with second-hand e-commerce growing by 12% to 614.49 billion yuan. This market is supported by over 300,000 stores and 10 million workers.
Policy support has been a key driver for the industry's growth. The 15th Five-Year Plan highlights the promotion of the circular economy. In April 2025, the Ministry of Commerce and four other departments selected 10 pilot cities and 28 enterprises to drive industry standardization. By year-end, China officially released the national standard for second-hand market operations.
Innovative market practices have made these policies effective. For example, Chongqing’s flea markets combined with cultural tourism have become city landmarks, with the “weekend market" attracting over 20,000 visitors daily.
Online and offline platforms are transforming China’s second-hand industry. The online recycling service “Ai Huishou” has already established 45 collection points across Chongqing, processing more than 500,000 electronic devices each year. Meanwhile, platforms such as Xianyu and Zhuangzhuang are leveraging livestreaming to cultivate “second-hand influencers,” helping the market better match evolving consumer preferences.
The market’s vitality is further evident in the expanding range of traded goods. Second-hand items now cover electronics, furniture, books, luxury goods, clothing, and toys. Electronics account for 41.34% of transactions, while luxury goods, furniture, and clothing account for 25.13%, indicating a more diversified industry ecosystem.
Despite the promising prospects of the second-hand economy, challenges persist. Mo Yuanming, a researcher at Chongqing Technology and Business University, noted that the industry still faces issues such as low standardization, insufficient trust in transactions, regulatory challenges, and unclear boundaries of responsibilities.
"For example, the lack of authoritative authentication for second-hand luxury goods leads to disputes and difficulty in protecting consumer rights. Some platforms also engage in 'low-quality, high-price' tactics, damaging the industry’s reputation," he said.
In response, Chang proposed three solutions. First, strengthen the legal framework to clarify the rights and responsibilities of all parties involved. Second, improve the regulatory environment by establishing a collaborative "government + industry + society" governance mechanism. Third, enhance technological innovation by using blockchain for full traceability and AI to improve authentication efficiency.