China’s economic decline, combined with repeated pandemic prevention measures and control, has created a negative impact on various industries. Many second-hand luxury stores closed down, and some women have sold their name brand items to support their husbands’ crumbling businesses.
According to a report by Shanghai Hotline, the price of Hermès, which is a top-notch brand, has been reduced. Tian is a famous online luxury appraiser. Many women who bought luxury bags from him are now coming back to sell them at discounted prices. Tian said that some Hermès “Himalaya Birkin” bags were once sold at the “exorbitant price” of about $220,000, but in the past two years, they have been discounted. This year, he sold only two Himalaya bags, and the price was about 10% less.
A woman in Hangzhou sold more than a dozen Hermès bags at one time. According to the report, some of the bags were gifts that her husband bought for her when his business was good, and some were bought from Tian last year. She told Tian that her husband’s business was not doing well, and the cash flow was about to run out.
The disruption of the supply chain caused by the lockdown and control of the pandemic is the first and foremost impact on foreign trade business. Almost all of the customers who came to Tian Ge to sell famous brand bags in bulk were doing foreign trade business. The businessmen who once created wealth in Yiwu and other places are now facing the pandemic prevention policy.
Sina Finance said that most of the bags that Tian purchased were not from retail investors, but from the closed shops of his peers. The pandemic in the first half of the year caused many second-hand luxury brick-and-mortar stores to have almost no customers. The goods sold online were backlogged in express outlets and could not be sent out. The goods in the hands of merchants who stocked up many years ago could not be sold, and businesses were going bust.
In fact, not only Hermès, but many luxury goods have experienced drastic price drops in the secondary market. Patek Philippe , the “top-notch watch”, is no exception. Two months ago, the prices of Rolex and Patek Philippe watches suddenly soared, rising by about $1,500-3,00 (10,000 to 20,000 yuan) in just one day. Two of Tian’s friends bought a Patek Philippe watch with a price tag of nearly $180,000 (1.2 million yuan), intending to take advantage of the price increase to “make a fortune.” After that highest point, it suddenly nosedived.
Li Yi, who is also in the luxury goods industry, also purchased a lot of luxury goods this year. She said, “A man in his 30s came with luxury goods worth about $440,000, including watches, bags, and some jewelry.”
Li’s store is in an office building near the financial center of Hangzhou. She said, “One day in April, the store received nearly 30 messages about people wanting to come to the store to sell luxury bags, some of which were from the financial circles working nearby.”
Li had a strong feeling this year that the handbags wouldn’t sell. Almost all of these financial professionals came to the store to sell their appraised bags. Even if someone came in to shop, it is polite to ask the price. Due to the impact of the pandemic, no one has no any money.
Xia Yifan, an expert on China issues and a commentator on current affairs, told The Epoch Times that the overall decline in China’s economy, combined with the impact of repeated pandemic prevention and control measures, has slowed down or even halted economic growth in many places. All industries are in recession. Small, medium, and micro enterprises have closed down one after another, and the government does not care. People have no money to buy luxury goods. In order to survive, their luxury goods have to be sold, which will be even worse in the future.
Xia Yifan believes that this is just the beginning, and the Chinese economy will continue to decline, and it cannot be stopped.