23
Jul
Prospects for the development of Indonesia’s second hand bag business
1. Demand side: the potential of the local market exists objectively
Indonesia has a population of 270 million and a large young population. The middle class and Generation Z in Jakarta, Surabaya, and Bandung have a strong demand for second-hand bags.:
High-end brands: LV, Gucci, Coach and other A-level used bags, brand-new counters are priced high, and there is plenty of premium space for second-hand bags; local used physical stores, Instagram/TikTok online sellers continue to look for sources of goods;
Volkswagen track: cheap second-hand commuter bags, backpacks, and student schoolbags are sinking. The market demand is huge.;
2. The existing circulation model and corresponding risks
1) Scattered delivery of small pieces by express delivery (a small number of retail players are in use)
The use of personal parcel limits for scattered mailing, the upper limit of the cargo volume is extremely low, which cannot support the wholesale business, and is not suitable for the source sorting factory to do the B-terminal strapping trade.
2) The best feasible alternative (compliance ideas)
The source of the goods is first exported to the two major export markets of Malaysia and Thailand, and the small packages are split by local buyers, and then transshipped across borders to Indonesia.;
3. Profit margin reference
Assuming that policy risks are put aside:
A-level brand second-hand package terminal retail price increase of 150%-250%;
B-class cheap mixed package price increase 100%-160%;