More Chinese turning to pawnbrokers for their luxury fix
Staff Reporter 2012-12-08 12:24
A pawnbroker in Beijing. (Internet photo)
Pawn shops are becoming an increasingly attractive option for fashion conscious Chinese seeking imported designer goods, our Chinese-language sister paper Want Daily reports.
Gold and silver jewelry, luxury watches and handbags, ultra-thin notebooks, tablet computers and high-end SLR cameras are appearing in pawn shop windows in greater numbers. With prices generally 40% to 60% lower than new items, the relative inexpensiveness of the status-signaling goods is attracting the eye of shoppers. According to reports, a fashionable notebook computer worth 6,000 yuan (US$963) can be purchased for a mere 3,500 yuan (US$562) at the pawn shops.
Compared to the wares sold by pawnbrokers, international designer label goods are generally more difficult to authenticate as fakes abound in China. For this reason pawn shops previously rarely dared to get involved in the trade of luxury brands. Yet, as this market matures and as the trade in used luxury handbags are is undeveloped, some pawn shops in recent years have taken the opportunity to snatch a piece of the market by opening stores exclusively for luxury brands.
One authentication specialist said that just a few years ago most of the items available at pawn shops were things such as gold jewelry, antiques, paintings, emeralds and jade pieces. Yet in the past two years, some popular international luxury brands have moved front and center.
Since autumn, the volume of the luxury goods placed in pledge has increased substantially and is rising 20% each day. Most of the handbags accepted by pawnbrokers in are in mint or near-mint condition, some even brand new. One employee at a pawnshop said in the past they received 15 or 16 orders a day, but now they field 20 to 30 orders each day. "Numerous customers come to offer luxury bags or watches; sometimes we have to delay lunch to deal with the orders."
Tian Yuan, head of the luxury goods line at pawnbroker Huaxia which trades brands including Hermes, Chanel, Louis Vuitton, Gucci and Mont Blanc, said it is difficult to determine the authenticity of luxury goods. For example, one would need to examine the quality of the leather, needle work, metal accessories, logos and original sales receipts to identify a genuine luxury brand bag. Considerable knowledge and a keen eye is needed, after all the craftsmanship of ersatz luxury bags is often excellent and these kinds of products are easier to copy than others. Even receipts can be faked.
