Tencent owns shares in Yonghui Supermarket, Ali holds shares in Gaoxin Retail, and new retail combined online and offline has increasingly become an important area for Internet companies to deploy. From payment, terminal to supply chain, platform business, and the road to heavy assets has also become The direction of the choice.
On June 20, the largest O2O recycling platform for used mobile phones in China announced that it plans to invest 1 billion yuan to put 10,000 self-service recycling machines on the market in the next six months, with chain stores, small community malls, and subway stations. University campuses, supermarkets, and other densely populated areas. Among them, the most eye-catching paving point is chain stores with 5,000 stores nationwide. This is also in line with the chain's idea of positioning stores as community service providers. Self-service recycling machines become the chain home for free printing. , Sharing rain gear, emergency charging, college entrance exam rest stop and other community service projects after another grounding convenience service.
“Huaxia Times” reporter learned that Alibaba.com and its sub-brand B2B platform, PaiTang Hall, currently have a monthly transaction volume of 600 million yuan. From the current data, it is only half a year since the auction hall was launched. It is already close to 300 million yuan.
ALP's innovative business model in the vertical sector has been highly favored by capital. In 2011, Love Recovery won the investment of Morningstar Capital, the investment agency of the World Bank, IFC and Tiantu Capital, etc. The latest round of financing took place in December 2016. On August 21, Love Recovery completed RMB 400 million D-round financing, led by Kahui Fund and Dachen Ventures, Tiantu Capital, Jingdong Group, Morningside Ventures, Jinglin Investment, Qianhai Fund, and other new and old shareholders investment.
300 million domestic market in the 'disorderly war'
According to statistics, there are about 500 million mobile phones sold in China each year, but the recovery rate is less than 5%. Most of the old mobile phones are idle in the hands of consumers and do not enter into good digestive channels. According to the average of 600 yuan, Recycling price calculation, second-hand mobile phone market has about 300 billion market capacity.
Contrary to the huge market, the competition in the second-hand mobile phone market is extremely 'primary'. In addition to a certain amount of C2B 'player' participation such as love recycling, a large part of the entire second-hand mobile phone market deals with C2C. The way is proceeding.
In the C2C transaction mode, some of the transactions took place in domestic second-hand trading platforms such as pats, fish, and transfer, and most of the transactions occurred in the transactions between mobile phone users and second-hand cattle. Insiders believe that domestic second-hand mobile phones The original mode of circulation has a lot to do with China’s national conditions. On the one hand, China’s mobile phone sales are not like many countries rely on operators’ models; on the other hand, it is difficult for domestic mobile phone users to find the channel for mobile phone recycling. And ways, can only use the Internet information flow and 'cattle' to complete the replacement and circulation of second-hand mobile phones.
According to statistics, the recovery rate of second-hand mobile phones in China is less than 5%, but in the United States and Hong Kong, the recovery rate of second-hand mobile phones has reached 48% and 60%, respectively. This means that there are nearly 30 times as many second-hand mobile phone recycling markets in the Chinese mainland. Progress and growth space.
Faced with such a big cake, Love Recycling adopts the typical O2O model, orders online and offline and completes the transaction offline, becoming the second-hand mobile phone recycling industry NO.1. It is understood that Love Recycling through the offline 200 main shopping mall stores and mailing After recycling mobile phones, the company conducted quality inspections through 1000 back-end teams from six operation centers nationwide. The phones were divided into multiple levels. Different levels have different processing channels. High-end mobile phones will be handed to second-hand platforms such as Jingdong Pat. In retail, low-end and mid-range mobile phones are distributed to back-to-back recycling channels through back-end service distributors. Based on this, Love Recycling has also accumulated heavy operating, big data, back-end distribution and other high barriers.
The founder of Love Recycling, CEO Chen Xuefeng, said that the combination of online and offline is a beautiful business model. However, from the data obtained from the current survey, the most important reason for restricting the Chinese people's 'reporting their old mobile phones' is that the transaction process is too tedious and Inconvenient, people are reluctant to trade their old mobile phones so much. Many old mobile phones have become people's 'bottoms' objects. 'To solve this pain point, we plan to put 10,000 self-service recycling machines on the market in the next six months. The device will be deployed in densely populated areas of the community and densely populated areas of the mall. If each self-service recycling machine can receive 1 old mobile phone a day, the received volume of 10,000 self-service recycling machines will reach more than 3.6 million units a year. , The corresponding transaction size may exceed 2 billion yuan.
The emergence of self-service recycling machine can realize online and offline inquiry and ordering, and can be analyzed through big data, accurate drainage. Open up the new O2O model through online and offline, and turn the past people into scenes to find people. Ni Chun, vice president of A&E, stated, 'At present, Alibaba Recycling has established a nearly 2,000-point layout in Shanghai, Beijing, and Shenzhen, including Jingdong’s wireless retail system, Chain Group, China Unicom, China Telecom, China Mobile, Neighbourhood Convenience Store, Carrefour Supermarket, Lotus Lotus, and a large number of CBD properties.
Layout trillion market
Chen Xuefeng said, 'The second-hand mobile phone market is actually a global, trillion-scale market. In Hong Kong, China, Dubai, Miami, and Europe, these global free-trade markets have a trade circulation platform for used electronic products. For example, Hong Kong. There are hundreds of second-hand mobile auction houses in Kwun Tong, and the slightly larger auction houses can achieve more than 10 billion Hong Kong dollar transactions a year. This means that Hong Kong has a larger offline market than Huaqiangbei. The same thing is also true. Occur in Dubai, Miami and Europe. Hundreds of thousands of people in the world are engaged in this industry, and hundreds of millions of secondhand mobile phones are circulated and recycled around the world.
According to IDC and GFK data, global mobile phone shipments exceeded 1.5 billion units in 2017. After the second-hand mobile phone experienced three to four turnovers, the stock market reached a scale of trillion yuan, which has great potential.
However, at present, there is a regional demand and price difference in global second-hand digital product transactions. Consumers in different regions have different preferences for operating systems, brands, and price points. In a single region, there is a tendency for mismatches between supply and demand. Local prices are not transparent, and trading patterns are relatively low. Effectiveness. The current global circulation of used digital electronic products is mainly carried out through offline trading centers. This will not only result in high transaction costs, high entry barriers, but also low transaction efficiency, leading to large stock losses.
There is no systematic standard and norm for the definition of products in mainstream mainstream digital free-trade markets. This is the main reason for the above problems. This leads to the supply and demand sides can only adopt the unified or spot transactions, and can not be specific to a single SKU ( At the present, there are more than 8,000 mainstream SKUs on the market.
Based on this, Love Recycling built a second-hand electronic product auction platform for the supply and demand of both used and demanded second-hand electronic products, which is the auction platform. Pai Hall said that the pavilion can be understood as an online version. Huaqiang North. Any one wholesaler has a batch of second-hand mobile phones that need to be processed and can be handed over to the platform. After using the love-recovery quality inspection and grading, it will be sold out.
Up to now, AEG has completed the layout of major global secondary digital free trade markets in Hong Kong, China, Dubai, Miami, India, Russia, Brazil, etc. Currently, the auction hall is only half a year old and the monthly transaction volume is close to 300 million yuan.