Header photo source: ATRenew.
Over the past year, a quiet transformation has swept through China’s consumer economy. A market once driven by speed, novelty, and scale, is now rediscovering value in reuse, durability, and longer-term utility.
This behavioral shift has been building for some time: in 2023, China’s secondhand goods market reached RMB 1.32 trillion (USD 184.8 billion), with online transactions accounting for RMB 552 billion (USD 77.3 billion), up 15% year-on-year (YoY), according to a report by the China Resale Goods Trading Association. As the industry matures, integrated full-chain models that encompass recycling, distribution, and after-sales service are seemingly becoming the norm.
One of the clearest beneficiaries of this shift is ATRenew, operator of the AHS Recycle platform. The company’s rise reflects broader changes in consumer habits, retail infrastructure, and national policy priorities.
In the first quarter of 2025, ATRenew reported revenue of RMB 4.65 billion (USD 651 million), up 27.5% YoY and surpassing the high end of its own guidance. Non-GAAP net profit nearly tripled to RMB 78 million (USD 10.9 million). This performance builds on a strong 2024, when ATRenew recorded RMB 16.3 billion (USD 2.3 billion) in full-year revenue and achieved GAAP operating profitability for the first time.
This momentum is particularly pronounced in electronics. Smartphones, tablets, and wearables have all benefitted from state-backed trade-in subsidies, boosting interest in refurbished devices. In Q1 2025, revenue from consumer-to-business (C2B) mobile recycling jumped more than 50% YoY. Meanwhile, multi-category recycling—including handbags, watches, gold, liquor, and fashion—saw transaction volume and revenue nearly triple.
This momentum traces back to a policy origin. In 2009, China introduced a nationwide “old for new” trade-in scheme as a stimulus measure. Revitalized in 2024, the policy now emphasizes sustainability and green consumption. Secondhand luxury, in particular, is emerging as a trend: during the Lunar New Year period, recommerce platform Zhuanzhuan reported a 33% increase in secondhand designer orders, according to Xinhua, suggesting luxury shoppers could now be balancing status with practicality.
Beijing’s support for circular commerce is expected to deepen. The “two new” consumption policy, which encourages trade-ins and circular economic models, has placed secondhand retail firmly in the spotlight. In early 2025, the Ministry of Commerce named ATRenew an official pilot enterprise for secondhand circulation, a nod to its growing role in formalizing the sector.
Building trust and infrastructure in a skeptical market
By the end of 2024, ATRenew operated 1,861 stores across 283 cities, supported by more than 1,000 door-to-door agents. It has also partnered with platforms like JD.com, facilitating device trade-ins during new purchases. This hybrid model—combining online trade-ins, offline collection, and resale—has positioned ATRenew to scale efficiently while enhancing consumer convenience.
Meanwhile, trust remains a crucial hurdle in the secondhand market. Consumer concerns about hygiene, quality, and wear remain common. ATRenew addresses these through standardized quality assurance (QA) protocols, including automated inspections, transparent pricing algorithms, centralized logistics, and post-sale guarantees.
The company has also expanded its role from collector to enabler. Reportedly, its PJT Marketplace now serves over a million registered merchants. In March, ATRenew also opened a 1,200-square-meter flagship in Shenzhen’s Huaqiangbei electronics hub, where merchants can inspect, grade, and purchase inventory onsite, cutting days from the typical supply chain cycle.
Automation plays a growing role too. At its Dongguan hub, ATRenew said it uses proprietary QA systems to improve inspection speed and accuracy, powering its expanding B2B resale operations.
Consumer-facing sales, too, are on the rise. In 2024, the Yanxuan sub-brand under its Paipai Marketplace posted 90% GMV (gross merchandise value) growth, driven by demand for certified, preowned goods. Yanxuan focuses on quality-graded products backed by after-sales support, helping rebuild trust in the resale model.
Looking ahead, ATRenew plans to scale aggressively. It aims to grow its AHS Recycle store network to 5,000 locations and expand its recycling service team to 5,000 agents. The company also plans to integrate artificial intelligence to optimize pricing, customer service, and quality inspection.
In what was once considered a low-tech, low-trust corner of the economy, ATRenew seeks to set a new benchmark not just in recycling, but in reengineering retail logistics for a future defined by reuse.