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Exploring barriers to secondhand luxury consumption among Chinese consumers and changes during the COVID-19 pandemic
by Prof. Seong-Yeon Park
Division of Business Administration
PURE Research Profile
sypark@ewha.ac.kr
Background and Purpose: The rapid growth of the global secondhand luxury goods (SLG) market contrasts sharply with its limited development in China. Despite Chinese consumers’ strong demand for luxury goods, their engagement with SLGs remains minimal, primarily due to cultural, psychological, and market-specific barriers. These barriers include rampant counterfeiting, strong superstitions about secondhand goods, and social stereotypes associating SLG consumption with lower social status. This study systematically examines the perceived risks influencing SLG consumption among Chinese consumers and explores the pandemic’s impact on these perceptions. Two distinct periods are analyzed—before and during the COVID-19 pandemic—to provide a comprehensive view of how consumer behavior evolved under extraordinary circumstances.
Methodology: The first study, conducted in early January 2020, investigated the influence of perceived risks on the purchase intentions for SLGs before the onset of the pandemic. The second study, undertaken in December 2020, explored potential shifts in perceived risks related to SLG consumption. It also examined whether the research model and hypotheses remained valid given changes in Chinese consumers’ purchase behavior during the pandemic. A total of 348 valid responses were analyzed for Study 1, and 315 for Study 2. The data were processed using exploratory and confirmatory factor analyses, reliability tests, structural equation modeling, and moderation analysis via SPSS 25.0 and AMOS 25.0. The key variables included five dimensions of perceived risk: functional, financial, sales-source, physical, and psychosocial–superstitious risks.
Results: The findings revealed significant differences in perceived risks and purchase intentions between the two periods. The t-test results indicated that the mean scores for the five types of perceived risks toward SLGs in Study 2 were significantly lower than in Study 1. In contrast, perceived value and purchase intentions were higher. This finding suggests that Chinese consumers had a greater intention to purchase SLGs during the pandemic due to lower perceived risks and higher perceived value. Furthermore, pre-outbreak hypothesis testing revealed that, except for financial risk, all perceived risks significantly negatively affected the perceived value of SLGs. Conversely, the second study found that all five categories of perceived risks had significant negative effects. Functional and financial risks became more pronounced, driven by the shift to online transactions and economic constraints. On the other hand, sales-source, physical, and psychosocial–superstitious risks diminished as consumers became more accustomed to SLG consumption and began associating it with sustainability and affordability. Both studies also confirmed the moderating role of regulatory focus. Promotion-focused consumers were more influenced by perceived value, while prevention-focused consumers were more sensitive to perceived risks. These findings underscore the complexity of consumer decision-making in the SLG market.
Theoretical and Practical Contributions: This research makes several significant theoretical contributions. It advances the literature on SLG consumption by conceptualizing and validating a perceived risk-value model specific to the Chinese market. It introduces psychosocial–superstitious risk as a culturally significant factor, highlighting its dual role in influencing consumer behavior through perceived risks and benefits. The study identifies and proposes psychosocial–superstitious risk for the first time as a new dimension of Chinese consumer characteristics. Additionally, it demonstrates the moderating effect of regulatory focus, providing nuanced insights into how risk perception interacts with consumer motivation.
The research also offers practical implications for developing more effective marketing strategies to support the sustainable growth of FLG and SLG markets. Marketers should focus on reducing perceived risks by enhancing transparency and authenticity in SLG transactions. Blockchain technology and partnerships with trusted platforms can help address concerns about counterfeits and low-quality goods. Positioning SLGs as sustainable and eco-conscious choices can attract promotion-focused consumers while reducing the stigma associated with secondhand consumption. Furthermore, the increased reliance on online transactions during the pandemic emphasizes the need for secure, user-friendly platforms that minimize functional and financial risks. Partnerships between luxury brands and SLG platforms can foster market synergy, mitigate counterfeit issues, and expand consumer access to authentic SLGs.
Limitations and Future Research Directions: This study has some limitations. First, the validity and generalizability of the research are constrained by the inability to use the same respondents before and after the pandemic due to its unexpected onset. Additionally, China is a vast country with a diverse population, so the limited number of respondents may not fully represent the nation. Second, this study faced challenges in confirming why or how the COVID-19 pandemic affected Chinese consumption of SLGs. These issues should be explored further in future research.
* Related Article
Hong Luo and Seong-Yeon Park, Exploring barriers to secondhand luxury consumption among Chinese consumers and changes during the COVID-19 pandemic, Journal of Business Research, Volume 174, 114497, March 2024