The shift from idle item circulation to a quality shopping experience is making second-hand consumption an increasingly important choice for consumers seeking a quality lifestyle. Reports indicate that China's second-hand market transaction value reached 1.69 trillion yuan in 2024, with a compound annual growth rate exceeding 12% from 2020 to 2024, signaling that the second-hand economy is entering a new phase of trillion-scale, large-scale development. Amid this trend, the transaction value for second-hand goods on LexinFintech Holdings Ltd. (NASDAQ: LX)'s Fenqile Mall continues to climb.
In the carefully curated second-hand channel of Fenqile Mall, a 95%-new, second-hand, genuine domestic iPhone 15 Pro with 128GB storage is priced around 4,000 yuan. The offering includes 72 rigorous quality inspections, a 7-day free trial, and a one-year warranty. Fenqile Mall supports various installment options of 3, 6, 9, and 12 months, with minimum monthly payments starting from just over 300 yuan. Currently, this phone model ranks number one on the channel's best-seller list, with a user satisfaction rate as high as 98.9%.
A recent research report titled "New Consumption Series Report 2: The Golden Age of the Trillion-Cycle Economy" highlights that the vigorous growth of the second-hand economy results from a combination of increased supply, upgraded consumption concepts, and improved transaction service capabilities. On one hand, economic development has led to a significant accumulation of high-quality idle goods in the consumer market, providing abundant supply for the second-hand sector. On the other hand, second-hand trading platforms are continuously enhancing product inspection, quality assurance, and transaction service experiences, driving the market towards standardization and quality improvement, which offers crucial support for the second-hand economy's development.
Against a backdrop of ample supply in the consumer market and increasingly refined transaction services, consumer attitudes are also evolving. Previously, second-hand goods were often seen as "substitute consumption" driven by budget constraints. However, as consumption concepts become more rational and pragmatic, consumers seek to obtain high-quality goods and premium product experiences in a more cost-effective manner, striving for a balance between rational and quality consumption. This is particularly evident in the fast-evolving 3C digital sector, where products like mobile phones, tablets, and laptops have become some of the most active categories in second-hand consumption due to their abundant supply, high standardization, and mature inspection and after-sales systems. For budget-conscious consumers who still pursue quality experiences, high-quality second-hand goods are increasingly becoming a vital choice that balances quality with cost-effectiveness.
As consumer demand for high-quality second-hand goods continues to grow, enriching the supply of quality products and enhancing the transaction service experience are becoming key to sustaining the development of second-hand consumption. To cater to diverse consumer needs, Fenqile Mall is continuously expanding its second-hand goods supply by partnering with several leading domestic second-hand platforms, offering consumers a wider and more reliable selection. Currently, Fenqile Mall's second-hand SKUs exceed 10,000 items, covering multiple categories including mobile phones, tablets, computers, and digital accessories. Leveraging mature e-commerce supply chain capabilities, Fenqile Mall continues to refine its product supply and consumer service systems. Combined with services like quality assurance, convenient fulfillment, and installment payments, it provides consumers with a more secure and convenient quality second-hand shopping experience.
The sustained release of consumer demand is also driving the growth of transaction volumes for second-hand goods on platforms like Fenqile Mall. Data from Fenqile Mall's consumption performance shows that high-circulation-value, high-average-order-value 3C digital goods are the primary drivers of second-hand consumption growth. Compared to other second-hand categories, these products have faster update cycles, higher standardization, and more mature quality inspection and after-sales service systems. They not only meet consumers' desire to experience flagship products at more cost-effective prices but also naturally align with installment consumption scenarios. Fenqile Mall data reveals that in June, the transaction value for second-hand goods increased by 12.65% month-over-month, setting a new high for the period.
The growth in second-hand 3C digital goods is also a microcosm of the second-hand economy's move towards quality development. As consumption concepts continue to evolve, consumers are placing greater emphasis on product value, user experience, and resource efficiency. Second-hand consumption is gradually integrating into the mainstream consumer market, becoming a significant component of quality consumption.
As China's first online installment shopping mall, Fenqile Mall launched in October 2013 and is a key business segment within the LexinFintech Holdings Ltd. ecosystem. For over a decade, Fenqile Mall has consistently focused on meeting consumers' quality consumption needs, fully leveraging its scenario and installment advantages. Relying on mature e-commerce supply chain capabilities, it continuously builds more competitive product offerings and consumption experiences. Looking ahead, Fenqile Mall will continue to optimize its product supply ecosystem and service system, enabling more consumers to enjoy quality goods in a more cost-effective manner, and contributing corporate strength to unleashing consumption potential and promoting the development of circular consumption.
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