Economy Overseas tourists drive Japan's luxury brand secondhand market

[thomas]

Japanese secondhand shops are actively seeking new ways to source luxury and branded goods due to a surge in demand from foreign tourists fueled by the historically weak yen. Strategies include collaborations with major department stores to enhance their inventory and the use of AI to appraise items brought in by customers.

According to the Reuse Economic Journal, the Japanese secondhand market has consistently grown, reaching ¥3.1 trillion in 2023, a 7.8% increase from the previous year. Within this market, branded goods represented ¥365.6 billion, showing a substantial 19.4% rise. An official from the publication suggests this growth trend is likely to continue in 2024.

Bags and fashion accessories released by luxury brands decades ago are especially popular after U.S. West Coast celebrities and social media influencers posted pictures of themselves with retro products from high-end brands such as Louis Vuitton and Chanel. Shops selling such vintage goods are lined up in Tokyo's Omotesando district, now dubbed a mecca for inbound visitors seeking secondhand branded goods amid the weak yen. Major secondhand buyers are also beginning to expand into the district. In November last year, Komehyo opened its first outlet dedicated to vintage branded goods, which is often crowded with foreign visitors. Geo Holdings, which operates the Okura chain that buys used luxury watches and branded bags, will also open a vintage specialty store in Omotesando this spring.

The weak yen is not the only reason for the popularity of secondhand branded goods among foreign visitors. According to Komehyo, the Japanese secondhand market is rich in items because Japanese people bought many branded products overseas during Japan's bubble economy era in the late 1980s and the early 1990s. Secondhand products in Japan are also praised for their quality.

Secondhand shops rush for branded goods in Japan

Some operators have partnered with department stores, while others have use AI to determine the value of vintage luxury goods.

www.japantimes.co.jp