A Comparison Between the Second-Hand Clothing Consumption of China and Korea

The purpose of this study is to research and analyze the second-hand platforms in China and Korea. Todays, second-hand trading has evolved and more and more consumers are using it. In the past, most of the users of the second-hand trading market were low-income households, and the current users of the used trading market are the MZ generation. In this reason, feeling the necessity of researching the second-hand trading platform, I analyze it from data of China and Korea. To achieve the purpose of this study, I collect and analyze two big platform of each country “Xianyu” from China and “Secondhand Market” from Korea. We can see how differences in economies, societies and cultures between China and Korea affect second-hand trading platforms. The study compared the trend of second-hand clothing consumption, the major channels of second-hand clothing consumption, the key categories of second-hand clothing consumption, the leading brands of second-hand clothing consumption, the motivations and obstacles of second-hand clothing consumption. I hope this study to develop the second-hand trading platforms around the world.


platform in Korea and China and compared it for the study.
Market is where usefulness and money are exchanged. New products that have various kind of pattern and character have strength in reputation, innovation, quality, and selling point. For second-hand product, since products that already used or owned are not useful for owner, but it is useful for others who are willing to buy it. Global research shows that the digital approach helps not only maintain but also increase the trend of generations X, Y, and Z to re-commercialize consumer forms. With the introduction of new trading models, the development of new generations of consumers and social media, and protection of the Internet and the environment, the second-hand trading market has gradually increased. Especially for last 40 years, buying second-hand products became a world"s trend (Guiot et al., 2010). For example, global sales of second-hand clothes, footwear and ornaments are expected to increase from $24 billion in 2018 to $51 billion in 2023 (ThredUP, 2018). According to comparing the study of "Kim" and "Jang" in 2015, the major factor that determines what to purchase from buying preference came from their country and gender. Therefore, I research and analyze the world"s largest second-hand trading platform based on the background of Korea and China (Kim&Jang, 2015).

Method
At first, let's look at the developed second-hand clothing consumption platforms in China and Korea. Secondly, let's look at the types and methods of second-hand clothing consumption platforms in Korea and China. There are two types of second-hand clothing consumption platform process: B2C (Business to Consumer) and C2C (Consumer to Consumer). Thirdly, based on the above, I'll look into the top 5 items sold by country based on 'Xianyu' and' Secondhand Market', the largest second-hand clothing consumption platforms in Korea and China. Fourthly, I'll analyze the top 10 brands of second-hand clothing consumer platforms in Korea and China. Finally, I'll survey and analyze on consumer motivations and obstacles in second-hand clothing consumption platforms in Korea and China.

Leading Investigation on Chinese Second-Hand Trading Platforms
For long, China has been unable to handle oversupplied inventory products, or has had difficulty handling remaining items due to employment or moving or other reasons. The recent expansion of the second-hand trading market in China is also drawing attention since the online second-hand trading platform is activated. China's first second-hand trading online platform was launched in 2011 and has been growing rapidly ever since. At 2017, the number of online second-hand trading in China reached 40 million reaching $77.3 billion and will be 80 million in 2020 reaching exceed $150.7 billion. "Xianyu" is China's largest second-hand trading mobile platform site launched by 'Alibaba' in June 2014, and you can simply log in using Taobao and PayPal. in 2019, "Xianyu" has strategy launch took place in Beijing on April 11. According to the announcement, the platform's trading volume has exceeded $15.4 billion by 2018, with about 1 million subscribers registering more than 2 million goods(second-hand) every day. As a result, more than 1.4 billion items are on the platform. 61% of "Xianyu" users are counted as birth in the late 1990s, and more and more young people are using the second-hand trading platform. The platform quickly introduces hot new products and create statistics on expensive electronics and famous brand watches, bags, books and children's toys. China's active second-hand trade is based on huge market demand, and the relevant market will continue to expand. In particular, the online second-hand economy, which integrates the public sector and e-commerce, along with increasing transaction convenience through mobile platforms, is expected to maintain strong growth (Lee, 2019).

Leading Investigation on Korean Second-Hand Trading Platforms
By COVID-19 economic cold, the number of people buying and selling second-hand products is increasing. Also new platforms such as the "carrot market" are also growing rapidly. Beyond the thinner wallet, the fun, experience-seeking tendency, and pragmatism of secondhand transactions are rising. Wealth people, millennium generations, and even housewives are falling for the charm of second-hand trading. Like this, as the economic recession continues due to the prolonged COVID-19, second-hand trading is mounting as a new consumption trend. By analyzing this, we can think that second-hand trading has been activated as pragmatic thinking, emphasis on experience values, and ethical consumption flows intertwined. After the global financial crisis in 2008, low growth has continued, and the second-hand trading market has grown around the world. With the prolonged low growth, demand for second-hand products increased rather than new products for economic reasons, and more people tried to raise cash by selling unused items. In 2008, the size of the domestic second-hand trading market was estimated at $3.61 billion, but the industry estimates that it has grown to about ass.ccsenet.org Asian Social Science Vol. 17, No. 3 2021 $18.26 billion after the global financial crisis as the second-hand trading market gradually grew. Industries expect this market to grow more steeply in the future. This is because, unlike in the past when there were many people who had high reluctance to second-hand products, more and more people became accustomed to second-hand trading. In particular, as the sharing economy has increased since 2018, the perception of other things used has improved a lot This may because It's not just looking for new products, but it's intertwined with the characteristics of second-hand transactions that are used when needed and then sold back when the need is over. Notable thing is the recent change in perspective surrounding second-hand products. second-hand products that looked shabby in the past have recently changed to 'ethical consciousness'. Since there is recognize of that the high-growth consumption patterns of purchasing new products and indiscriminately use them lead environmental damage, second-hand transactions are being recognized as a kind of sustainable ethical consumption. In particular, second-hand clothing (vintage clothing) is considered not only ethical, but also hip (modern fashion) and an expression of personality, and second-hand trading has become a kind of 'meaning out' (expressing political and social beliefs as consumption). It is also noteworthy that they found fun and abilities through second-hand trading consuming. MZ generation (born in the early 1980s, early 2000s) was born in a prosperous era, experienced a variety of experiences, so they treat it important to have experience. They also put interest in second-hand trading since they seeing it as an experience-enhancing consumption. It has recently shifted from looking for second-hand products like hidden gems at the cheapest price to looking for fun. In this experience, consumers sometimes discover their "competence." A consumer psychology professor says "good second-hand products like hidden gems, by experience from finding and trading, consumers feel 'competent' and have fun (Lee,2020)."

The Major Channels of Second-Hand Clothing Consumption
China's second-hand clothing consumption channels include 'Xianyu' and 'Zhuanzhuan', while South Korea's second-hand clothing consumption channels include 'Secondhand Market' and 'Carrot Market'. First, look at the second-hand clothing consumption channel in China. China's second-hand clothing consumption channels are C2C and B2C, and O2O is still in preparation.
Xianyu (C2C method): The relevant company is Alibaba and operates in a Consumer to Consumer business method. It provides users with a trading platform and does not participate in certain transactions. Services such as product quality inspection and logistics are not offered, and all processes are voluntarily negotiated by users. Chinese users are 300 million, and daily event users reach 30 million. 'Heon-woo' said he plans to open offline second-hand stores in 20 cities over the next three years.
Zhuanzhuan (C2C → C2B2C method): The related company of '58 Tung Chung', and it has been changed from the Consumer to Business to Consumer business method. In addition to providing users with a trading platform, they actively promote products sold directly on the platform. The number of monthly subscribers in 2020 was 15 million, down by more than 56% from 34.7 million in 2019.
I'll analyzed the channels of second-hand clothing consumption platform in China. After examining the channels of the second-hand clothing consumption platform in Korea, we compare and analyze the differences between China and Korea.
Secondary Country (C2C method): It is the largest second-hand trading platform in Korea. It operates in a consumer to consumer business way. Currently, the number of members is 23 million and the number of product registrations per day is 390,000, the largest. For this reason, the age range of users is also large. The coronavirus particularly accelerated the influx of second-hand subscribers and secured 550,000 new members from February to June when the corona spread. The cumulative transaction amount by the third quarter of 2020 is estimated to reach $3.99 billion by the end of the year and $4.92 billion by the end of the year.
Carrot Market (C2C method): Carrot Market has the meaning of the second-hand trade that can be found near you, and the greatest competitiveness is being able to trade second-hand product in nearby neighborhoods. It operates in a consumer to consumer business method. In September 2020, it had 10 million subscribers and 20 million cumulative downloads. The carrot market is active in direct trading by providing services from the region, also it has overcome the limitations of the existing platform's parcel delivery transaction because it is possible to trade bulky goods without difficulty since it's nearby your home. It can be seen from this that both Korea and China started with C2C method, but in China, B2C method is increasing. On the other hand, Korea also tried to use the B2C method, but still prefers the C2C method.

The Key Categories of Second-Hand Clothing Consumption
Look at the table below ( No. 5 Cosmetics Shoes 1. One Piece: Women's clothing is the most common on Chinese second-hand product platforms. One-piece dresses are the largest, and the price range is from low to medium. One-piece dresses were the largest, and prices ranged from low to high-priced. 1. Children's clothing: According to a survey of Korean second-hand platforms, most of them were children's clothing. Because Children's clothing is waste of money since children are grow up quickly, but the product itself is clean, making it the most suitable second-hand product and popular among consumers.
2. pk T-shirts: pk T-shirts are popular not only for children's clothing but also for women and men's clothing. Although 'Ralph Lauren' is the flagship brand, it sells most of their products in golf wear. I'm not sensitive to fashion, so I've worn it for a long time and its second-hand products are also a popular product.
3. Windbreaker: Typical Nike and Adidas products are found in golf wear. Products that are out of fashion are being actively resold.
4. One Piece: The second-hand platform in Korea, 'Secondhand Market', also has the greatest number of female dresses. One-piece dresses are often worn once or twice so it's usually almost new. It is widely distributed from high-priced products to low-priced products.
5. Shoes: Nike and Adidas, as well as a variety of shoes such as hiking boots and shoes. it is faster to resold it than other products.
If you look at China's second-hand consumer clothing platform, you can see that there are many products related to women. Among them, dress topped the list, indicating that many women are participating in second-hand transactions. Looking at Korea's second-hand consumer clothing platform, there are a variety of items unlike China. In them, children's clothes are notable, and children's clothes, which are easily wasted due to fast-growing children, topped the list. Through this, it can be predicted that many second-hand transaction users in Korea are raising children or more likely to be people with families.

The Leading Brands of Second-Hand Clothing Consumption
Look at the table below (Table 2). This is a comparison of the differences between Chinese and Korean second-hand clothing brands. First, I'll analyze the top ten brands of second-hand consumption apparel platforms in China. First known for its silverware, Tiffany became famous for its decoration in 1851, and began as a generation of high-end royals and nobles who entered the jewelry business, setting their own standards for platinum and serving the imperial family. Prices range from a minimum of $460 to a maximum of $8900. There is no difference between the resale price and the new product price.
I analyzed the products that are ranked in the top 5 in the second-hand clothing consumption platform in China. Now, after examining the items that are ranked in the top 5 in the second-hand clothing consumption platform in Korea, we compare and analyze the differences between China and Korea.
price is more than twice as expensive, but it is preferred by those who purchase basic high-quality products with a reasonable price by increasing the quality. COS pursues Timeless and Minimalism. Prices range from a minimum of 26 dollars to a maximum of 308 dollars with resale prices range from $23 to $54.
By analyzing the brands that entered the top 10 second-hand clothing platforms in China, you can see that there are products more expensive than Korea. You can see that most of the top 10 brands of second-hand clothing platforms in China are luxury brands and are resold by high prices. On the other hand, the top 10 brands on the second-hand clothing platforms in Korea have many children's clothing and general brands, and have a mediocre price. In addition, if Chinese second-hand clothing items are mostly women-related brands, most of Korea's are children's wear and sportswear.

The Motivations and Obstacles of Second-Hand Clothing Consumption
Look at the table below (Table 3). It analyzed the motives and obstacles of consumption of second-hand clothing in China and Korea. First of all, environmental protection appeared in common motives for consumption of second-hand clothing in China and Korea. It shows that both of them prefer eco-friendly products and strive for sustainable consumption. The difference is that the motives for consumption of second-hand clothing in China include limited edition and cost-effectiveness. After they purchase limited edition sneakers and luxury bags, they resell them with a more expensive price when time flows. This is called 'ShoeTech (Shoes + tech)' and 'Chatech (Chanel + tech)', and are increasingly showing their expertise. In addition, people born in 1990s who are emerged as a new consumption's main force in second-hand trading, show a tendency to enjoy good products at low prices. In other words, the rapid rise of the second-hand market is relevant with the characteristics of 90s's people which places importance not only on the cost-effectiveness, but also on the psychological satisfaction.
Reasonable consumption and vintage are the motives for consuming second-hand clothing in Korea. Consumers who are Millennium and Z generations show more rational and moral consumption tendencies than previous generations. As they aim for experiential consumption rather than material consumption, they borrow or purchases second-hand products instead of buying new ones, and tries to find products that are on discounts even though he can afford it economically. They prefer products with a "vintage" sensibility and products that can save time and are practical. Obstacles of second-hand clothing consumption platform in China include quality problems, security problems, and logistics and distribution problems. It is difficult to define product quality itself, and there are many problems with platform supervision, lack of credit system, and fake sneakers and bags. Also, some cases include that though sellers send products, but normal payments have not been received. As a buyer, it is very difficult to judge whether the other end of the transaction is a private seller or, in particular, reseller organization. For the more, the hygiene and safety of second-hand products are often not guaranteed, and product damage that occurs in the delivery process are one of biggest problem of transaction disputes. On the other hand, in Korea, fraud, defective products, and a/s function were selected as obstacles. As the second-hand trading market expands, fraudulent crimes have increased. This is because there are still a classic second-hand fraud tactics that swindler cut the contact after receiving money or that after selling a product that has defect, they don't offer a refund or A/S service.

Conclusion
This study analyzes the second-hand trading platforms in Korea and China, and show the top purchasing products in the second-hand trading platform, the brands of the top purchasing products, and purchase motives and obstacles of people using second-hand trading platforms. According to the results of this study, first, it was found that the current second-hand trading market is different from the past and many people using it with a positive perception. Second, in the top 5 items of second-hand trading platforms, Korea had a lot of children's clothing, and China had a lot of women's items. Third, as for the brands that are ranked in the top 10 on the second-hand trading platform, there are many general brands in Korea, while many expensive luxury brands in China. Fourth, as a result of analyzing the motivations and obstacles of the second-hand clothing consumption platform, the motivations for trading second-hand clothing in China were limited edition, cost efficiency, and environmental protection. Obstacles to Chinese second-hand trading include quality issues, security issues, logistics and distribution issues. The results of Korea, environmental protection, pursuit of rational consumption, preference for vintage products, etc are the motives of using second-hand trading, and obstacles include fraud, receipt of defective products, and A/S function problems. Based on these results, the significance and implications of the study are as follows. First, there is not much data on existing research on second-hand trading. The second-hand trading platform market is showing greater growth as it recently overlapped with Corona. At this point, this study investigates and analyzes the developed second-hand trading platform market and reveals it in various aspects, and through analysis of purchase motives and purchase obstacles of second-hand trading buyers, it identifies the factor that affects to increase purchases. It is meaningful to present an element that can increase second-hand trading purchases. Second, according to the results of this study, the top 10 brands, top 5 products, and obstacles in motivating second-hand trading are significantly different in each country's platform. This imply that the cultural, social, and economic differences between the two country make the difference of their main second-hand trading brand and purchasing products. This can be used to further expand the second-hand trading platform market. As this study analyzed and researched the largest second-hand trading platforms in Korea and China, the results of the study can't represent all second-hand trading, Also, it is necessary to analyze the sales motives of second-hand sellers. Future studies taking this into account are needed, and studies that consider various variables that can affect second-hand trading platforms with infinite potential for development should also be conducted.