Turedeal uses blockchain to help second-hand luxury goods transactions take off

China's second-hand luxury goods transactions have entered the fast lane of development. Blockchain will become a powerful tool to solve the circulation management of second-hand luxury goods and remove the final obstacle that affects the industry's takeoff.

Looking around the world, Japan has the most mature second-hand luxury goods industry. Its second-hand luxury goods transactions have a mature industrial chain, with more than 10 listed companies in the second-hand category and an annual transaction volume of up to 100 billion.

The rise of second-hand luxury goods in Japan is due to the cyclical fluctuations of the Japanese economy. The economic prosperity in Japan in the early 1980s promoted consumption upgrades and luxury consumption. In the early 1990s, the economic bubble burst and entered a period of great recession. People entered the second-hand market to cash in their high-net-worth goods. Japanese consumption entered a rational consumption stage. In addition, the Japanese government introduced corresponding measures and a perfect second-hand management system, thus gradually forming a mature second-hand luxury goods market in Japan.

Therefore, we can judge that there are three conditions that determine the development of the second-hand luxury goods trading industry: first, there is a sufficiently large stock of first-hand luxury goods; second, it is driven by the material needs of consumption upgrades and the spiritual needs of rational consumption; and third, there is a mature second-hand luxury goods circulation management system.

The domestic second-hand luxury goods market is fully prepared, only the east wind is missing

At present, China's second-hand luxury goods market has the first two necessary conditions. First, the development of China's economy in recent years has increased people's extra disposable income and brought about consumption upgrades. In 2013, China's luxury consumption exceeded Japan. According to the "2017 Global Luxury Industry Research Report", the Chinese market accounts for 32% of the total global demand for luxury goods, and this figure will rise to 34% in 2020. After years of accumulation, China has a huge stock of second-hand luxury goods.

Secondly, luxury consumers in the Chinese market are becoming younger and younger, with the average age dropping from 35 to 25. Young consumers have strong demands for consumption upgrades, but are constrained by their economic capacity. Second-hand luxury consumption has become a powerful balance between demand and rationality.

According to data released by the Second-hand Luxury Goods Working Committee of the China Association of Used Goods, the annual transaction volume of the second-hand luxury goods market exceeded 8 billion yuan in 2016, and it has been growing at a rate of more than 20% per year. By the end of 2016, there were more than 2,500 large-scale second-hand luxury goods stores in the country, and more than 400 new stores were opened that year.

China has a stock of luxury goods that is no less than that of Japan and a consumer base that is several times larger than that of Japan. However, compared with Japan's second-hand luxury goods market, which is worth hundreds of billions, the current scale of China's second-hand luxury goods market is far less. The core reason that affects the take-off and prosperity of the industry lies in the circulation management of second-hand luxury goods. China's second-hand luxury goods market lacks an orderly management mechanism, resulting in chaos and disorder in the second-hand luxury goods market: many second-hand merchants offer sky-high prices, scaring off buyers; there is no guarantee for the authenticity of luxury goods; consumers have no way to get rid of fakes after purchasing them, etc.

The backward circulation management mechanism has seriously hindered the development of the second-hand luxury goods ecosystem.

Truedeal uses blockchain technology to realize peer-to-peer transactions between buyers and sellers , achieving product traceability and trustless transactions

Truedeal combines blockchain technology with global high-end commodity transactions (mainly luxury goods), and establishes a global idle product traceability certification system and industry smart contract standards on it, providing both parties with commodity identification, commodity traceability, financial guarantees, community arbitration and other services, in order to completely solve the trust problem of second-hand high-end goods, especially second-hand luxury goods, in the entire circulation process.

The core of blockchain technology is to record data and contracts along the timeline, which can only be read and written but not modified or deleted, thus eliminating the possibility of online fraud.

In addition, Truedeal can also provide auction services using smart contracts, allowing users to auction goods on the DApp, enriching the services of the entire trading network.

Truedeal will use advanced image processing and artificial intelligence technologies to build the world's largest and most professional second-hand luxury goods database.

Truedeal uses advanced image processing, identification and artificial intelligence technologies to collect and record product information, store data, call data and verify information. It can completely realize the collection and identification and authentication of product identity information, and ultimately make it impossible for counterfeit goods to hide in the Truedeal ecosystem.

At the same time, Truedeal improves the second-hand luxury goods trading ecosystem through an incentive mechanism, encouraging more high-quality professional appraisers to join.

Truedeal Finance will also launch two financial service products to ensure the convenience of transaction circulation: True Installment and True Pledge. Relying on blockchain, it greatly reduces the operation and labor costs of credit from a technical level, thereby reducing the fraud risk of consumer finance, providing users with the best installment shopping experience, and reducing the financial risks and capital use costs during the transaction process.

We believe that by introducing blockchain technology, Truedeal will truly create a completely decentralized, traceable, identifiable, and arbitrable trading platform for the circulation of second-hand luxury goods around the world, allowing buyers on the platform to purchase with confidence, sellers to have their interests guaranteed, and third-party service providers to increase their profits. By meeting the needs of participants in all aspects of the ecosystem, we will make the circulation of second-hand luxury goods transactions more credible, efficient, and convenient, solve key issues that affect the development of the entire second-hand luxury goods trading industry, and help the industry take off.

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