China's second-hand luxury goods market crashed in the last two months amid economic turmoil that has curbed discretionary spending among wealthy folks.
Financial Times said prices for some of the most popular brands of luxury watches and designer handbags (such as Rolex watches and Hermès bags) on secondary markets have plunged between 20% to 50% since Shanghai imposed strict Covid lockdowns earlier this year.
China's deflating property bubble and President Xi Jinping's controversial zero-Covid policy in Shanghai and dozens of other regions have sent the economy into a tailspin, denting consumer sentiment.
With China's economy decelerating, Watcheco, an industry portal for used luxury watches, said the price of second-hand Rolex Submariners has crashed by 46% since March. Luxury bag shops in Shanghai and Hangzhou have slashed the prices of Hermès Birkin bags by 20% over the same period.