Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

As pandemic spurs a tidying-up frenzy, Japan's market for second-hand goods booms

Published 12/13/2020, 08:12 PM
Updated 12/13/2020, 10:41 PM
© Reuters. Buysell Technologies worker takes photo of a luxury-brand bag in Funabashi

By Kim Kyung Hoon

TOKYO (Reuters) - When Japan announced a state of emergency due to the coronavirus pandemic this year, people were urged to declutter their homes to pass the time, with Tokyo's governor even roping in household-organising celebrity Marie Kondo in promotional videos.

Many have taken that message to heart and the market for second-hand luxury goods is booming as a result.

Mitsuko Iwama, a 71-year-old housewife, is a case in point. Pre-pandemic, she would have been spending a lot of time at the gym but after being stuck at home and cleaning her closets more often, she decided to part ways with kimonos that her parents bought her decades ago.

"I thought it was a waste to leave the kimonos just hanging up, and if someone from a younger generation would wear them, that would make me happy," said Iwama, who sold 22 kimonos for 4,000 yen ($38).

Buysell Technologies Co Ltd, the company used by Iwama which collects goods from people's homes and resells them through online stores and at old-style in-person auctions, has been one of the biggest beneficiaries of pandemic-induced tidying.

Visits to people's homes surged 31% to 20,990 in October from a year ago, the company said, adding that three quarters of its customers are in their 50s or older, selling kimonos, luxury handbags and jewellery.

Similarly, Mercari Inc, which operates a popular flea market app, reported a 52% jump in sales for its July-September quarter compared with the same period a year earlier.

A surge in the value of gold this year as the pandemic spurred demand for safe-haven assets has also prompted people to sell rings and necklaces that had just been sitting around, adds BuySell Chief Executive Kyohei Iwata.

"There's a term in Japanese, "danshari", which means minimise your life. People's mindsets have changed that way," he said.

© Reuters. Kinomos collected from private sellers are kept in boxes as they wait to be sorted at a Buysell Technologies warehouse in Funabashi

($1 = 104.4800 yen)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.