[BLOG] GUHADA and Secondary Market of Luxury Products
GUHADA, an online shopping mall that is changing the secondary market of luxury products
The continuous growth of the second-hand market.
As the economy is struggling to get back on its track, the second-hand market continues to increase in volume. Based on the statistical analysis, because of the downsizing of the economy, consumers are moving toward purchasing second-hand products, causing the trend to go from “owning” to “sharing”. The size of the second-hand market is increasing due to the current status of the economy. The Korean second-hand market has increased from 3.4 billion in 2008, and now it is about 5 times of its size from 2008. The renowned second-hand market platform in Korea called “Joong Go Nara” (https://cafe.naver.com/joonggonara) has 17 million members and the mobile app users have increased from 4 million to 5 million in over the course of 2 years.
The consistent problems of the second-hand market.
Even though the second-hand market is fast growing, there are still problems that have not been solved. Most notably, the frauds. When the second-hand market platforms are searched, “fraud” and “scam” and more related keywords appear. You can also find out about the cases of second-hand product purchasing scams and others, very easily.
The second-hand market scams are continuously becoming worse. Recently, there had been increasing in cases where scammers receiving imprisonment sentences for their unlawful activities. One scammer had consumers believing that the products will be delivered to them and this person had scammed for 20,000 in USD, receiving 1-year imprisonment sentence. Also, there had been another case where a 30-year-old man had received 5 months imprisonment sentence, and after he had been released, he committed another fraud activity to 124 people on social networking sites. As the scams in the second-hand market have been increasing, even a movie based on online scams has been made in Korea.
With such fraud cases happening, one must consider the risks of being scammed while shopping online. For example, when you are shopping online for second-hand products, you are not sure of the actual quality. It is difficult to determine how and where the product was used, how many times it has been worn/used, or the first purchase date, transparently. Especially, if the product that a consumer is purchasing is at a high price or of the luxury brand, the consumer may want to find out more information about the product and whether they are reliable; however, most of the vendors/sellers do not share such information transparently and are more so lie to the consumers, in order to make more profit.
The innovation that GUHADA will bring.
Realistically, the problems that second-hand market face nowadays has much to do with the transparency of the information. The vendors/sellers have much more information than what is shared publically. However, they do not share more information than what is on public, transparently. This is one of the reasons for transparency problems in the second-hand market.
Solving the intransparent problem in the second-hand market through NFC chip technology.
To solve the intransparent problems in the second-hand market, GUHADA is using the NFC chips. On GUHADA platform, the NFC chips are inserted to the products that are sold on the GUHADA platform and the entire distribution record of the products (related information prior to the ownership) will be traceable. Accordingly, in the case of purchasing new or second-hand products on GUHADA platform, the information regarding authenticity, purchase path, previous owners, etc. can be verified through the blockchain.
Transparently sharing the resale information using the NFC chip technology.
In the case of resale of the products on GUHADA platform, much-needed information about the product, such as the price at the point of purchase, purchase date, distribution records, etc. can all be accurately checked through the NFC chip. This system creates trust between the vendors/sellers and the buyers, and the vendor/seller is unable to provide false information to the consumers.
For example, if a consumer “A” purchased the luxury fashion bag from a company “L” on GUHADA platform, and decides to resale the luxury fashion bag on GUHADA platform, the bag will have the NFC chip already inserted, meaning that the consumers are able to find the details of the price at the point of the previous sale, purchase date, authenticity, and distribution records, conveniently. Because of this, consumers will be able to trust the vendors and purchase the products safely.
GUHADA, adding innovation to the second-hand market.
GUHADA is adding innovation to not only the e-commerce market but also the second-hand market as well. Currently, there are no specific solutions for scams and various problems in the second-hand market, however, GUHADA helps provide hope for consumers of the second-hand products. Great innovation by GUHADA platform in the 2nd half of this year is expected.
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