At 10 am on Oct 14, the auction floor at Huai Guo Jiu, also known as H22, was filled with excitement. Nearly 30 professional buyers from China and abroad gathered for the venue's seventh live pre-owned luxury auction, where more than a thousand designer handbags from Louis Vuitton, Chanel, Dior, and Goyard went under the hammer in rapid succession.

Founded in 1954, H22 was once a treasure trove for generations of Shanghainese, a place to hunt for rare finds in an era when resources were scarce. Now reborn on Middle Huaihai Road, the nostalgic name has returned with a new mission to lead Shanghai's growing secondhand luxury market.

Its partner in this revival, Japan's YBA Group, is one of Asia's most influential pre-owned luxury auction companies. Since their first collaboration in March, YBA has brought more than 50 professional buyers from Japan, the United States, Singapore, Russia, and other regions to Shanghai, bringing new vitality to the city's vintage and luxury resale scene.

Before the auction began, rows of handbags were meticulously arranged: LV bucket bags, Chanel 19s, and Dior Saddle bags, all ready for inspection. Buyers moved swiftly between tables, scrutinizing every stitch and clasp.

When the gavel finally came down, Japanese auctioneer Takeshi Fujii set a rapid tempo, calling bids in both Japanese and Chinese as prices flashed across the big screen. Each lot sold in under 10 seconds.

Industry experts said that although China is one of the world's largest luxury markets, its pre-owned segment remains largely underdeveloped. The country's secondhand luxury inventory is estimated at 2.8 trillion yuan (about $393 billion), yet only about 5 percent of it circulates, far below the 20 to 30 percent seen in Europe and the US. Millions of idle luxury items remain tucked away in private wardrobes, with few transparent or standardized resale channels available.

Offline auctions such as H22 × YBA are beginning to bridge this gap. Combining live inspection with timed bidding, this model brings authenticity, structure, and scalability to a market once dominated by fragmented and informal trading.

By the end of this year, H22 and YBA plan to hold nine auctions in total, with projected sales reaching 8.4 million yuan. So far, seven events have been completed, selling more than 1,500 items at a 25 percent success rate. Many long-time buyers have already become repeat participants.

Looking ahead, the auction categories will expand beyond handbags to include watches, apparel, and jewelry, bringing more high-quality and affordable options to China's growing community of savvy luxury consumers.

If you go

Address: 1F, No 766 Middle Huaihai Road, Huangpu district

Participation: Follow the official WeChat account of H22 for updates on upcoming auction events.

Source: Official WeChat account of the publicity department of the CPC Huangpu district committee at "shhuangpu"