Digging for silent giant mines: E-commerce pry mobile phones to recycle hundreds of billions of new markets

Scan the machine on the two-dimensional code, and then put the old phone into the ATM machine small window, 2 minutes can complete the mobile phone inspection, valuation, user to determine the recovery, automatically completely clear the mobile phone data, 1 second recovery can be fully accounted for … In the past two years, a “recycling treasure mobile phone recycling ATM” quietly appeared in Shenzhen’s commercial streets, subway stations, retail stores … In the business circles and communities of big cities such as Beijing, Shanghai and Guangzhou, similar products are emerging.

The emergence of “mobile phone recycling ATMs” is only a microcosm of the second-hand mobile phone recycling market that smart e-commerce companies “exploit”. Facing the massive second-hand mobile phone stock market, as well as the upcoming 5G era of change of machine tide, more and more intelligent e-commerce to accelerate the offline layout, an innovation and efficiency competition is “prying” second-hand mobile phone recycling blue sea.

Digging for silent giant mines: E-commerce pry mobile phones to recycle hundreds of billions of new markets

Excavation of mobile phone “silent giant mine”

The mobile phone recycling market is a “silent giant mine”. According to the Ministry of Industry and Information Technology, the total volume of mobile phone sales in China in 2018 was 414 million units, with the forecast phase-out amounting to 461 million units. With hundreds of millions of eliminations, the recovery rate is only single digits. More than 90% of consumers are still used to putting old mobile phones in drawers.

Traditional mobile phone recycling is the home of street vendors and “Yellow”, second-hand mobile phone from the collection and re-entry into the consumer market, need to go through multiple links, the process is not convenient, unreasonable prices, data insecurity, in a long time hindering the development of the industry.

“Information asymmetry, data insecurity, complex processes … This is where the Internet can be transformed. He Fan, founder and CEO of Shenzhen Recycling Bao Technology Co., Ltd. (hereinafter referred to as “Recycled Treasure”), believes that the market potential of second-hand mobile phones is huge, but the current industry is small and slow heat, how to make good use of the ‘Internet plus’ depth mining market, is the key to the future development of the industry.

In 2014, recycling treasure was established in Shenzhen Huaqiang North, when the second-hand mobile phone trading market has entered a rapid development stage, “recycling treasure” “free fish” “turn” and many other platforms coexist, making the industry appear “blowout”.

Looking at many platforms, there are two main driver modes: the traffic-driven C2C mode and the supply chain-driven C2B mode. The former is represented by “free fish” and “turnaround”, while the latter is represented by platforms such as “love recycling” and “estimation”, “recycling treasure”. The former as a traffic platform, in the vertical field of mobile phone recycling, mainly through cooperation with the latter or investment holding to obtain control of the supply chain. As a result, the C2B platform has become a high-profile “seed player” in the second-hand mobile recycling circuit.

At present, with the three major operators to fully open the sale of 5G package, 5G commercial curtain opened. According to research published by Market Research Group Strategy Analytics, 5G devices will take off in full power by 2020 and 5G phones will account for nearly half of all handset sales within five years. A 5G wave of change has begun.

At present, the platforms are stepping up the pace of “building power”, and behind the e-commerce giant’s figure.

In July 2019, Love Recovery announced the completion of a new round of financing, amounting to $150 million, led by the Tiger Global Fund. JD.com’s third follow-up, to support its only channel partner in electronic product recycling. In September, “Recycling Treasure” completed the C1 round of financing, Ali is a strategic investor. After the completion of financing, “recycling treasure” will be combined with “free fish” and other Ali platform, heavy gold into offline channels and scene construction.

“Second-hand mobile phones are a hundred billion blue sea. But user experience, transaction trust, supply and demand matching, supporting services, profit model is still in the enterprise’s way forward several mountains, but also determine which platform in the future can ultimately win. He Fan said.

Digging for silent giant mines: E-commerce pry mobile phones to recycle hundreds of billions of new markets

Preemption of the industry’s “new wind” opportunity

In recent years, second-hand mobile phone recycling platform constantly “dig deep” new scenes and new models, trying to seize the industry’s first opportunity.

In 2014, “recycling treasure” only to “online evaluation and Shunfeng mailing” mode into the market, users through the official website, mobile phone APP, etc. to complete the second-hand mobile phone online estimate, after placing an order Shunfeng parcel, platform detection and payment.

“We realized from the beginning that the ‘recycling’ industry alone does not work and that we have to create an industry model with a whole chain off line and offline. “Recycling bao partner Xiong Zhou said.

In 2017, “Recycling Treasure” invested in hangzhou, a 3C digital door-to-door repair platform called “Flash Man”, it not only complements the recycling treasure “receiving, selling, repairing, renting” ecological closed-loop “repair” this piece, but also added the scene of door-to-door recycling. At present, “FlashMan” has set up 35 operating centers in 30 cities across the country, with more than 1,200 full-time engineers.

At the same time, “recycling treasure” has also developed a second-hand mobile phone detection, valuation, data deletion and other functions of the APP “changeman”, the ability to retail stores.

“Love Recycling” focuses on the layout of offline recycling systems. According to incomplete statistics, the current “love recycling” in the country has hundreds of direct stores, mainly responsible for the recycling of second-hand mobile phones.

“Mobile recycling ATM” is another “point” of power on the major platforms. On June 20, 2018, Love Recycling announced the launch of automatic recycling machines across the country, in residential areas, shopping malls, supermarkets, schools, convenience stores and other crowded places, and plans to lay 100,000 machines in 20 cities in china in the next five years.

And the “mobile phone recycling ATM” launched by Recycling Bao has been in Shenzhen’s business district, community and other points put about 100 units, will continue to increase technical investment, optimize the interactive experience.

Tencent Research Institute in the report “second-hand trading ignites another high tide of the sharing economy” pointed out that the second-hand transaction as the entrance, can derive a huge profit imagination space, including new goods trading, financial services, peripheral accessories, after-sales service, leasing services, community social and so on.

Industry experts pointed out that after experiencing huge advertising investment, “blood-stained financing” of the early market development, combined with different scenarios, the development of efficient access, smooth profitability of the operation of the “model” has become the industry into the stage of fine competition key.

Digging for silent giant mines: E-commerce pry mobile phones to recycle hundreds of billions of new markets

Build a mature business model

The establishment of standardization is the industry to mature the only way, in the “deep dig” new scene and new model at the same time, the platform has been doing industry chassis capacity-building, for example, testing standardization, service standardization, process standardization, data removal standardization, so that more people participate.

“Do second-hand mobile phone recycling, as long as the price, safety, convenience of the three core points to do a good job, on the ‘sitting in the wind and other wind’. Xiongzhou introduced, “recycling treasure” internal merchandise flow is in accordance with the “router way” to create.

According to the introduction, “recycling treasure” multiple channels to recycle mobile phones, to go through quality inspection, disinfection, data removal, supply chain delivery and other links. At the same time, “recycling treasure” also has a number of sales channels, excellent mobile phones in cola excellent products, Taobao, recycling treasure auction, idle fish circulation, etc. ;

Through different treatmentmethods, all mobile phones can be most effective, to avoid unconscious discards or into informal channels, resulting in environmental pollution and waste of resources.

“The fluctuation of the recovery price of second-hand mobile phones is a difficult thing to grasp, and it changes every week or even every day. “An offline recycling mobile phone shop assistant’s words, said a second-hand mobile phone recycling e-commerce a big pain point and difficult problem – quality inspection and valuation.

Reporters learned that the second-hand mobile phone industry in accordance with strict quality inspection standards, the need for machine testing dozens of projects, will inevitably consume a lot of labor costs, but also become the efficiency and cost bottleneck of the entire second-hand mobile phone industry, and the introduction of AI and other intelligent technology is expected to help the industry further reduce costs, improve efficiency.

According to the “assessment” revealed that the platform has begun to try to AI intelligent detection instead of part of the manual quality inspection link, this application makes “estimated” access to higher than the industry average quality inspection efficiency of 5 to 10 times the improvement.

And “recycling treasure” intelligent valuation system can be based on big data analysis of second-hand mobile phone price trends, and combined with mobile phone detection to obtain the recovery price. In addition, “Recycling Treasure” uses repeated deletion filling techniques to make the data completely unrecoverable.

Reporters in the interview also found that in the current marketing of high cost, relatively extensive business background, has already entered the track of a number of platforms are still rarely profitable.

“At present, the mobile phone recycling industry is still in the early stage of exploration, the existing system is completely market-driven, whether it is recycling, testing or secondary sales, there is no clear industry norms, the relative lack of relevant domestic laws and regulations. He Fan said that only by building a closed-loop chain that includes consumers, recycling enterprises, mobile phone manufacturers, processing enterprises, etc., can all parties benefit from it, can we completely solve the problem of second-hand mobile phone recycling, and release hundreds of billions of new markets.