The luxury market heats up! The trade of used luxury goods is gathering pace on Junggonara

① Popular luxury brands among different generations according to Junggonara data

The second-hand market is often called a 'recession-proof market' as it is closely tied to the economic climate. Nowadays, with the economy hitting rock bottom due to COVID-19, the market known as 'benefiting from coronavirus' is none other than 'used luxury goods'.

According to the domestic distribution industry, the transaction market for used luxury goods has grown about sevenfold from 1 trillion won in 2012 to approximately 7 trillion won at the end of last year. Looking at the annual growth rate alone, it exceeds 30%. In particular, not only cost-effective consumers but also the MZ generation (Millennials + Generation Z) use it as a means to find unique items, thus broadening the base of the second-hand market. Currently, the so-called 'resell market' of luxury goods, sneakers, and other rare items is growing rapidly, intertwined with the popularization of second-hand platforms.

The online used luxury goods market is gaining momentum thanks to the increasing consumption of luxury goods by the MZ generation.

The MZ generation refers to the Millennials born in the early 1980s to the early 2000s and Generation Z born in the mid-1990s to the early 2000s. They are known for being familiar with digital environments and seeking the latest trends and unique experiences that differ from others. The MZ generation, which is currently the main consumer group, freely purchases or resells luxury goods through second-hand platforms like Junggonara.

One of the flagship items in the resell market is sneakers. It's not just about reselling shoes as fashion items; investment concepts are involved. It's about buying limited-edition sneakers and reselling them for a higher price a few days later. Sellers do not hesitate to spend nights outside stores or stand in long lines to purchase limited-edition sneakers.

For popular models, while the purchase price ranges from 200,000 to 400,000 won, the resell price can increase by as much as ten to a hundred times. This is known as 'sneaker investing' or 'sneakertech'.

Another representative item in the resell market is 'luxury goods'.

Limited editions with collectible value and signature designs that reveal a brand's unique identity increase in value over time and yield unexpected profit margins. Hence, new terms such as 'shatech' (investing by reselling Chanel bags), 'lutech' (investing by reselling Louis Vuitton bags), and 'roltech' (making money with Rolex watches) have emerged, similar to 'sneakertech'.

This reflects a new shopping trend among the millennial generation, who may earn a small salary but still desire to own at least one luxury item. In fact, 'used luxury goods' are popular because they are affordable and, with some effort, can be purchased in like-new condition.

Moreover, the perspective of the MZ generation on 'used luxury goods', the ease of access to second-hand platforms, and the reflection of the 'Flex' trend are contributing to the steep growth of the 'used luxury goods' market.

The term 'Flex' is commonly used in the hip-hop scene to show off success or wealth. Searching for 'flex' on Instagram or YouTube easily brings up unboxing videos or brand-new bag certification shots, and this consumer trend is closely linked to 'used luxury goods'.

#What are the popular luxury brands among different generations according to Junggonara data?

The company with the longest history among second-hand trading platforms is Junggonara. Junggonara touts its 'market presence' based on the largest number of items and users, including those from the Naver Cafe, as its greatest strength. When including both the cafe and app, there are 23 million registered members and 390,000 new posts a day, which equals about 4.5 posts per second.

Junggonara's 'used luxury goods' data for the past three months, from September to November, reflects various factors including keyword search numbers, preferences, and transaction volume.

Firstly, the product listing rate of luxury brands by age group shows that the 30s have the highest percentage at 32%. This is followed by the 20s at 27%, the 40s and 50s each at 25% and 13% respectively, and the teens at 3%.

The current used luxury goods trading market is predominantly comprised of individuals in their 20s to 40s, making up 84% of the total, with especially active participation in product listings and searches observed among those in their 30s. The participation of teenagers and those over 50 in the used luxury goods market exists but requires further verification for expansion.

The number of searches per brand was highest for 'Chanel' with 46,662 cases, followed by 'Gucci' with 36,961, 'Prada' with 27,081. 'Louis Vuitton' and 'Dior' were searched 19,967 and 14,949 times respectively.

#Popularity rankings of luxury brand product lines by generation

Teens and twenties prefer 'Dior Montaigne', thirties 'Louis Vuitton NéoNoé'

In the popularity rankings of product lines by brand, 'Dior Montaigne' ranked first among teenagers and those in their twenties. 'Louis Vuitton NéoNoé' ranked first in the popularity rankings among those in their thirties, while 'Chanel Boy Chanel' was number one among those in their forties. For those over fifty, 'Prada Hobo' was the preferred choice.

In second place, 'Dior', 'Chanel', and 'Gucci' appeared side by side. 'Dior Saddle' was ranked second in popularity among teenagers and those in their twenties, while 'Chanel Coco Handle' took the second spot in popularity among those in their thirties and forties. For those over fifty, 'Gucci Marmont' made it to the second place.

In an overall generation survey, 'Gucci/Marmont' ranked first followed by 'Chanel/Classic' in second, 'Prada/Saffiano' in third, and 'Chanel/Caviar Bag' in fourth.

According to Junggonara, it's observed that for those in their thirties and forties, product transactions and searches for 'Chanel' are active. In contrast, the preference for 'Dior's Montaigne' is distinctly apparent among those in their teens and twenties.

There appears to be a discrepancy between preferred brands (searches) and actual transactions (product listings and sales). Searches occur for high-priced brands and products, but actual transactions overwhelmingly occur with more popular luxury brands.

# What is the ranking of luxury brand product lines by transaction volume?

Then, which luxury brand products were actively traded by each generation?

In the ranking of luxury brand product line transaction volumes by generation, 'Gucci Marmont' ranked first across all age groups (teens to over fifties). Second place differed by age group: teens, thirties, and forties mostly traded 'Chanel Classic', whereas twenties and over fifties chose 'Prada Saffiano'.

Third place saw teens and over fifties trading 'Gucci Ophidia', twenties traded 'Chanel Classic Bag', and thirties and forties traded 'Prada Saffiano' the most.

In the overall ranking of luxury brand product lines by transaction volume, 'Gucci/Marmont' took first place, followed by 'Chanel/Classic Bag' in second, 'Prada/Saffiano' in third, 'Chanel/Caviar Bag' in fourth, and 'Gucci/Ophidia' in fifth.

Seungwoo, the representative of Junggonara, said, “With the change in values towards second-hand goods, the growth of second-hand platforms, and an increase in time spent at home due to COVID-19, naturally, the second-hand trade of unused items is expected to become even more active. The demand for second-hand luxury goods is also expected to expand in line with this trend,” he said.