You can not see the waste paper shell jar, in the eyes of entrepreneurs is a big business

How do you dispose of your home's paper shells, plastic bottles, cans and other waste products? With the rest of the rubbish to throw away, or 2 dollars a pile sold to streets's collection of waste? If you open a small shop, is it always a lot of waste paper bins and no one to collect? Many people can not see the paper shell bottles and other waste, in the eyes of some entrepreneurs is a lucrative big business.

Waste recycling has been a low-paying attention to the industry, but in recent years, the field of waste recycling has sprung up a lot of startups, such as focus on electronic products recycling love, recycling, but also the whole category of recycling enterprises such as recycling, re-life, idle bean recycling. Recently, the author and the Idle Bean Recycling founder Fanghao and re-life founder Chavannes respectively to Exchange, take two as an example, explore the Internet + waste recycling logic.

ToB or ToC, two samples of waste recycling entrepreneurship

Idle Bean Recycling

Idle Bean Recycling in July this year on-line, provide waste home recycling services. Busy beans target customer groups are mainly convenience stores, small shops along the street, supermarkets, etc., the main categories of recycling are cardboard, plastic bottles, newspapers and magazines, home appliances. Users can use the free bean public account or the idle Bean app, the time to book home collection. Idle beans currently covered four areas, Chaoyang Media University area, the four-Hui area, Jinsong area, Fengtai District Liu Kiln, there are more than 20 recycling personnel.

Life again

March 2014 "Re-live" on-line to provide services, and idle beans, and then live customer groups are C-end resident users, recycling category has paper, plastic bottles, cans and other life-like waste and mobile phones, home appliances and other electronic products. Re-living now covers 30 service areas, nearly thousands of communities, with 180 recyclers. Similarly, life is also through, the app and the user connected together, the difference is that it provides a periodic onsite service, users need to set the service time (such as Saturday 12:00-14:00) and service cycle (every two weeks, three weeks, four weeks).

No money for home recycling?

When talking to the founders of two companies, they all mentioned: for scattered residents, home recycling plastic bottles, cardboard, home appliances and other life-like waste, basic earning no money. The reason is that the cost of recycling logistics is very high, and the guest unit price is very low.

Therefore, in this industry, many enterprises choose to do the back-end processing, but also bitter, tired, but not the front end of the money to do the recovery no one would like to do. However, the idle beans, and then live to do is the front-end recycling business. So, what are their logic?

The strategy of the idle bean is to find the user group on the B-side, and raise the customer unit price relatively. Its choice of B-end customer base is small merchants, big supermarket, etc., the guest unit of idle beans is relatively high, at about 20 yuan. B end users relatively large C-side, customer base is small, and customer shipments are large. According to the founder of Fanghao, idle beans are currently recycled around 90% are cardboard-like waste.

In contrast to the idle beans, life still locates the user group at the C end. Again life has built a logistics chain facing the C-terminal, its CEO Chavannes said, "In fact, we are a logistics company." "The strategy is that the previous door dry many things, the current mode is to recycle waste + e-commerce.

After the recycling of waste from users, not to pay the customer cash, but the transaction amount to the user to live electronic account. There is a life service supermarket on the life platform, users can use the money to buy all kinds of daily necessities. After the purchase of goods, the next time the recycling staff to reclaim the waste, will also be users in the online supermarket purchases of goods to the door. According to the founder Chavannes Introduction, re-living guest unit price at about 4 yuan. 30% of the users will choose to spend in the platform supermarket, the credit balance and the amount of external spending on the consumption of 4:6. The current strategy of re-living is to back up the cost of home with the profits from both recycling and e-commerce. Recently, live again on-line mobile phone home repair services.

To think than to say, the idle bean mode is simpler and more straightforward, then life is done more heavy, although the imagination space is larger, but each on-line a service, the resulting operating costs will be higher.

The advantages of Internet + Recycling

At present, more than 80% of recycling industry enterprises are "pop", "Small workshop". According to incomplete statistics, the number of industry practitioners from the last year about 18 million people to reduce to about 15 million people, and urban scavenging staff has added more than 2 million people.

The front end recycling market, which is dominated by individual recyclers, is characterized by:

The industry threshold is low, the individual recovery personnel are mixed, the identity is complex, many have no business license; The working mode of individual recyclers is guerrilla-type streets, the work efficiency is relatively low; the industrial chain of waste recycling is very long, with waste paper as an example, its process users- Individual tour Operators-Recycle Bin-recycling (sorting) factory-paper mills, at the bottom of the individual tour operators are difficult to negotiate ability. Finally, the recovery of guerrilla warfare is also a problem in urban management.

After the combination of recycling and internet, especially the mobile Internet, the advantages of recycling compared to traditional waste are as follows:

Self-built team, the quality of service can be controlled

In this paper, two cases of idle beans and re-life, have chosen the self-built recycling team. has been in the field of renewable resources for many years to make a profit recovery, launched a new service-"Help Home", in the face of community residents, to provide home service waste recycling. "Help Home" choice is the reorganization of the original social recycling staff, reduce personnel, logistics input costs. So, start-up companies do waste recycling, in the end should be self-built team, or integration of the original social recycling staff?

In fact, at present, the home recycling company is more like a logistics company, to provide door-to-home delivery services. Well, how to get customers, on the one hand, depends on the quality of your on-site service. However, the integration of social recovery personnel management costs, coupled with the existing habit of recycling staff, it is difficult to improve the service. In addition, what is the attraction of recycling companies to these people, and why did the original people abandon their vested interests and come to your recycling platform?

Supply and demand information barrier elimination

As in other industries, the biggest change in the recycling industry is the disruption of information barriers between the supply and demand sides. There is no need to say much about the efficiency of a destination-specific recycler, compared to the way traditional streets work.

For idle beans and re-life, breaking information barriers is only the first step, more importantly, how to effectively match the supply and demand information. The matching of supply and demand needs to consider time and place. The problem that extends is the timeliness of information matching and the mobility of information matching. Take the example of two typical samples, drip and hungry. Drip solution of the mobile supply and demand matching, and timeliness is strong; both sides of the supply and demand of hungry are fixed, just consider the timeliness. So it's hard to do things like route optimization for drops and hungry. This also to a certain extent led to the drop carpool and hungry, the development of a bad spelling, low utilization reasons.

For the recycling of waste, neither timeliness nor the need to consider mobility. Therefore, in matching the supply and demand, the waste recycling company can plan the recovery line, further saving logistics costs.

Diverse service Models

In the service mode selection, the Idle bean and the re-life strategy is not the same. Free Bean is an appointment to the door service, the user can be collected by advance appointment time. Re-life is the cycle door, users can set the cycle through or app service time. In order to avoid user forgetting, the cycle door service before, there will be, telephone reminders.

For B-end users, it is more appropriate to book a home. For super of all sizes, it is impossible for them to take up too much storage space, once accumulated to a certain amount, the willingness to handle is relatively urgent. For the C-terminal residents, the amount of waste produced in family life is relatively small, and there is no need to dispose of it as much as super. In addition, the cycle of the door to help users to use the service habit, conducive to business and users to achieve a continuous transaction. Finally, the cycle of the door also helps to increase the guest unit price.

User Experience Promotion

For users, whether it is a single appointment or a cycle door, the initiative is in the hands of users. Relatively professional team, transparent price, so that users feel in the sale of waste is a service. Recycling is a real platform, if the real unpleasant, users will no longer have eat哑巴亏 sense of helplessness.

Short-cut industrial chain

Waste recycling industry chain longer, idle beans, and other front-end recycling companies to achieve a certain volume, it can penetrate upstream, direct and the end of the waste manufacturers to negotiate. For them, every reduction in a chain is a boost to their profit margins.

At present, the idle bean recycling has won the light stone VC million Yuan Angel investment, and then life has also been financed (not announced specific information). Shallow stone venture believes that the waste paper recycling alone should be a billion-dollar business. This July, the Ministry of Commerce announced the "China Recycling Industry Development Report (2015)", according to the report data, waste paper, waste plastics, waste electronic products, three categories, the total value of 2014 recovery is 61.6 billion yuan, 110 billion yuan, 7.84 billion yuan. Recently, and the re-life model similar to the Amoy has just announced the acquisition of Pre-a round 10 million yuan financing. The industry, which is not much of a concern, has gradually attracted the attention of capital.

You can not see the waste paper shell jar, in the eyes of entrepreneurs is a big business