What: Japan's luxury resale sector experiences robust expansion through international tourism revival and strategic global market penetration by major retailers.

Why it is important: The trend highlights Japan's growing influence in the global luxury resale market, as retailers leverage the country's reputation for quality and authenticity to drive international expansion while capitalising on increased tourist spending.

Japan's luxury resale market is witnessing an unprecedented surge in demand, driven by a perfect storm of tourism recovery and strategic retail expansion. The sector has recently experienced remarkable growth, with secondhand clothing and luxury goods reaching ¥818.1 billion, representing 28.2% of Japan's total secondhand industry. Major players like Geo Holding and Komehyo Holdings are capitalizing on this momentum through aggressive international expansion strategies, with plans to significantly increase their global footprint. The weak Japanese yen has attracted international tourists, particularly from Asia, contributing to record-breaking duty-free sales. This growth is further amplified by sophisticated domestic operations, with established retailers like Beams and United Arrows implementing luxury resale initiatives. The market's appeal extends beyond traditional retail, with Chinese social media platforms playing a crucial role in driving engagement, as evidenced by the #JapanVintage hashtag garnering over 8.5 million impressions on Xiaohongshu.

IADS Notes: Japan's secondhand luxury market is experiencing unprecedented momentum, as evidenced by recent developments throughout 2024. The sector's growth is particularly notable in March 2024, when department stores achieved record-breaking duty-free sales of ¥49.5 billion, demonstrating the strong appeal of Japanese retail to international visitors. This trend aligns with Japan's emergence as the strongest luxury market in Q2 2024, where major brands reported significant sales increases. The secondhand market's resilience is further underscored by its ability to attract both domestic and international shoppers through digital platforms, a trend that has encouraged major players like Geo Holding and Komehyo Holdings to pursue ambitious international expansion plans. This expansion strategy reflects the growing global demand for Japanese pre-owned luxury items and the sector's evolution from a primarily domestic market to an international retail powerhouse.

Japan’s luxury secondhand sector gains popularity as tourism booms