Something interesting is happening in the global used goods market. Bain & Company, a US-based business strategy consulting firm, estimates that the used goods market will be worth approximately ¥8.7 trillion in 2024. Compared to 2017, the global used goods market is growing at a significant rate, with the new market growing 42% and the used market growing 2.4 times faster, even for luxury goods. Among these, used goods from Japan, known as “Used Japan,” are attracting the attention of overseas consumers. They are highly regarded for their near-new quality, lack of counterfeits, and virtually no scratches despite being used. The Japanese used goods market places great importance on storage condition and meticulous care. Furthermore, a high aesthetic sense and a focus on perfection lead to extremely high valuations upon resale. Luxury goods exported from Japan’s used goods market, which places a premium on the quality of used goods, to other countries appear to be enjoying sustained popularity.
In the West, since the Middle Ages, each class has been identified by its own unique clothing. For aristocrats and clergy, clothing represented hierarchical relationships such as status and lineage. Even among commoners, clothing was determined by occupation. In Europe and the United States, possessing brand-name clothing or bags signified a standard of living appropriate to that class. However, changes are also evident as time progresses. Clothing is gradually losing its function as a distinguishing feature of class or social status. Clothing is becoming a matter of personal freedom. Tokyo seems to be the place where this freedom is most naturally enjoyed. It is said that 30 million Japanese people own Louis Vuitton. An additional 90 million own other luxury international brands. There is a treasure trove of used luxury goods from these people. A slightly astute businessman will recognize Japan’s enormous market potential.
Due to the growing global reputation of used Japanese goods, sales of used goods have potential for expansion. Foreign buyers are increasingly seeking these goods. At Komehyo’s used brand specialty store, many foreign customers browsed luxury brand items. Komehyo’s first store, which opened nearby a year ago, is booming, with 70% of purchases made by foreigners. An American man from Georgia, USA, whose wife bought a Chloe bag for approximately 70,000 yen, commented, “Unlike in the US, there’s no need to worry about counterfeit goods in Japan,” expressing satisfaction. Used Rolex watches from Japan also received the highest buyer ratings, with a score of 4.742 out of 5. Furthermore, smartphones traded in Japan have the lowest post-purchase damage rate of any major country, at 0.5%. Overseas, the term “used Japanese goods” itself has come to denote high value.
Note: 10,000 yen is approximately $65.
