TikTok Makes A Strong Entry Into The Second-hand Luxury Goods Market To Compete With Industry Giants

Reports show that TikTok Shop is cooperating with Real Authentication, a leading US luxury goods appraisal company, to provide users of the US platform with appraisal and evaluation services for second-hand high-end brand handbags.

TikTok Shop just established a partnership with the artificial intelligence validator Entrupy last month and also provides similar services or self-service in the United States. TikTok Shop sellers get a handheld microscope that they can connect to their smartphones to take photos of their items. They then upload the photos to Entrupy, and an AI model authenticates the inspected items and provides certification. All second-hand luxury goods listed on TikTok require third-party authentication, such as Entrupy or Real Authentication.

In order to improve its strength in the second-hand luxury goods market, TikTok Shop has taken a variety of measures. As early as August, "Business Insider" reported that TikTok was building a professional team for the North American second-hand luxury market by recruiting second-hand luxury goods supervisors and sales managers. TikTok is also trying to include influencers in its "content and creator commerce" sales category. By improving its ability to resell luxury goods, TikTok will directly compete with established competitors such as The RealReal and Poshmark, or Europe's Vestiaire Collective.

The global second-hand luxury goods market is expected to grow to US$31.1 billion in 2022, with a compound annual growth rate (CAGR) of 9.1% from 2023 to 2028, and the market size is expected to reach US$51 billion by 2028. With the development of TikTok’s e-commerce sector, mature platforms have also begun to pay attention to the second-hand luxury goods industry. eBay has partnered with authenticators and other third parties to address the problem of counterfeit goods in the resale market. Last October, Amazon partnered with vintage luxury goods retailer WGACA to provide supply, warehousing, shipping and certification services. As the market expands, TikTok may face fierce competition.