Research On The Profit Model Of Luxury Goods Of The Pawn Shops

The pawnshops not only have been increasing at a steady pace in the quantity, but also in the scope of business under the new policy. At present, China, as the leading customer of luxury goods worldwide, has also been driving the second-hand luxury markets forward. In addition, in order to increase profits, the pawnshops develop a new service—luxury recycling and consigning.Even though the growth rate of second-hand market increases, the second-hand luxury brands basically stay deficit and small in scales, which shows the unity of operation models and the lack of brand core competitiveness in the whole. The development of luxury goods is still in the initial start stage in pawn industry. “How to manage the new service?” has become a new subject to be discussed.In this paper, a new profit model of pawn brand is given through the analysis and comparison of second-hand luxury industry both here and abroad, which based on the pawn industry in China nowadays. First of all, the origins and current situation of pawn industry are discussed, and the second-hand brands as well. Second, based on the theory of brand strategy and balanced scorecard, Dehave(Japan), Milan Station(Hong Kong) and Huaxia Pawnshop(China) are chosen as the cases, meanwhile, the model of balanced scorecard and profit model—finance, customer, internal business, learning and growth is established. In the end, the profit mode of China is summarized through the analysis of the domestic and overseas cases,also, the guidance and advice for development of luxury goods among indigenous pawnshops are given.