Second-hand market matures as $ 3 billion Chinese platform prepares for US IPO

Beijing Zhuanzhuan Spirit Technology (BZST), the online second-hand marketplace supported by Tencent, is preparing a $ 400 million funding round ahead of an initial public offering, according to reports.

BZST, currently valued at $ 3 billion, attempts to gauge the interest of private equity and strategic investors, Bloomberg first reported, citing people familiar with the matter.

The second-hand retailer is planning an IPO in the United States as early as next year, the people said.

Consumers in China, the UK and the rest of the world are increasingly embracing second-hand goods, from clothing to technology.

China’s electronics-focused recycling and trading platform Aihuishou International raised around $ 227 million in a U.S. IPO last month.

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Used moneymaker

June also saw the Etsy online marketplace take over the London-based second-hand clothing resale platform Depop for $ 1.6 billion, which was a hit among generation shoppers. Z.

Last year, the company posted gross sales of $ 70 million, double the previous year, as second-hand shopping attracted consumers aware of the environmental impact of fast fashion. .

While confirming the deal, Etsy said the second-hand market is expected to double the size of fast fashion globally, reaching $ 64 billion by 2024.

The fresh market, although it is based on the sale of second-hand goods at a lower cost, has become a real money generator for shareholders.

Just a few weeks ago, the resale market heavyweight eBay announced that it was preparing to sell a controlling stake in its South Korean branch to retailer E-Mart for $ 3 billion.

While South Korean company E-Mart, part of retail giant Shinsegae Group, has agreed to buy 80% of the eBay branch for $ 3 billion, that’s a little over one-tenth of eBay’s total revenue.

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The environmental weight of fashion and consumer-generated waste among shoppers fueled the success of BZST and Depop.

Synthetic materials used in a growing amount of fast fashion clothing mean it could take thousands of years to break down, the Royal Society of Arts, Manufactures and Commerce (RSA) think tank said last month.

In a damning report for the UK fast fashion industry, RSA found that half of the fast fashion items sold by online brands like Boohoo and Missguided are made only from non-recycled plastics.

Beyond fashion, Amazon came under fire in late June for destroying hundreds of thousands of unsold items every week, or millions of items every year, many of which are new and unused.

A secret investigation by ITV found the online retail giant sorted out smart TVs, laptops, drones, hairdryers, high-end headphones, computer readers, books and thousands of masks sealed in boxes marked “destroy” in its Dunfermline warehouse.

And with consumers more environmentally and climate-conscious than ever, the market trajectory looks strong.

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