Entrepreneur Magazine: The "Money" scene in the garage sale

Even if you look around the world, old-house deals are a potential market consolidation/"entrepreneur" reporter Shomin More and more of the old things in the house make you more and more puzzled? Are good things, lost a pity, when the waste sold and feel the heart is unwilling. Such worries have in fact become a social phenomenon.　　With the development of China's economy and the improvement of people's living standards, the turnover of old and new items is getting faster and quicker, everyone, every family, every company will often have many items in idle state. At the macro level, the country in December 2007 after the implementation of home appliances to the countryside and cars, motorcycles to the countryside, in May 2009, the "Old for new" policy, aimed at promoting and guiding the residents ' consumption through government subsidy; in daily life we also find that in the past more than 10 years, used cars, second-hand furniture, Second-hand electrical appliances and other independent business classes have slowly emerged and gradually formed.　　In addition, China is a very large market, the current regional, urban and rural and the difference between rich and poor, different groups of consumer demand and consumption levels are not the same, so focus on the disposal of idle items of the old market there must be a great potential for development. What are some of the new patterns that can be tapped in the seemingly marginal industries of old-age trading?　　This issue of "and Jing Talk model" a article dedicated to doing idle goods Business Network CEO Ma and Jing together discussed the know-how of the old business. Discover the new space in the Old Market Jing: Flea Markets in Europe and the United States are very developed, we usually clean up, to the weekend or holiday to put those unused things out to sell, but in China it is very difficult to do, the Chinese people feel that this is personal privacy, the display in the psychological some conflict. However, with the improvement of living standards, idle items will be more and more, so now every city has a lot of old market, physical stores or shop have.　　What's the difference between you and them?　　MA: We have done market research, the current Chinese more popular idle goods handling methods are mainly two kinds, one is the old market, one is barter, but neither of these models to meet the needs of the general public. First, the garage market. Anyone who has tried to sell things in the flea market will have the experience that first things are likely to be sold out, and the second thing is likely to end in sale, which is a good thing and finally has to be sold as a scrap. I have this experience, 5 years ago I bought a set of more than 10,000 pieces of furniture, and then because the move to dispose of, sold less than 500 yuan, almost equal to throw away in vain.　　So the garage market is not really serving the public, instead, it serves two special needs groups, one group is a professional garage seller, they buy cheaply, sell at a high price and profit from it, while the other group is people with lower living standards who want to spend as little money as possible to buy old things. And barter model also has problems, since 2005, China has appeared a lot of exchange sites, but to 2008 years, these Exchange sites are basically dead, because this model to saveDefects in nature.　　First of all, it distorts people's original needs, and many people's attitude towards old things just wants to dispose of it. And did not think must at that time to change back to a specific thing, second, barter is a "two-way matching" process, two-way matching will be both sides are satisfied, so the right probability is doomed to very low, the transaction is difficult to achieve.　　In short, whether it is the old market or barter, it is not a good solution to the ordinary people efficient and easy to deal with the idle goods and purchase to satisfy the needs of the old items.　　Jing: So for unmet needs can open up new market space. MA: Our existing model is also a step-by-step exploration. Initially, in order to differentiate from other barter sites, we designed a trading medium called coupons, divided into three grades of gold and Silver copper coupons.　　Willing coupons as an intermediary medium, can help users to complete the purchase and sale of idle goods, to barter real-time transactions into a real-time transaction, thus giving users greater flexibility. But soon we found out that the pattern was also problematic, that is, after a period of time after the user began to lose, high-end users (more affluent people) and low-end users (the lower income group) are decreasing, because the low-end users of the idle items are limited, after processing with coupons to buy what he wants can not play And high-end users finish their own idle items, in the willing to net but can not find what they want, because they do not need someone else's old, but want new things.　　So we decided to open the "closed market" which had previously been targeted only for the swap, to become an open market: Design a task system for low-end users, make money by doing tasks, and meet the needs of high-end users, we began to work with Jingdong, excellence, when these sites, so that they can directly buy new products.　　After two improvements, our model has gradually formed, now mainly by three system: the first is the task system, low-end users can work to earn money; the second is a swap system; The third is the system of buying new goods with other commercial websites.　　Jing: Everyone, every household idle items will continue to produce, the circulation of idle goods not only placed these old things, but also can lead to new consumption, through cooperation with the commercial Web site, users can also be willing to shop online, is tantamount to the user is stuck in your here. KidZania Children Career Experience center of the profit model and willing to network is not the same, but there are many similar places. Before a child enters a career experience center, it takes 50 bucks to buy a ticket and get a 50 dollar KidZania currency. KidZania contains more than 70 projects, half of which cost money, half of the project can earn money, spending money on projects such as you want to experience the police, you need to spend 5 dollars, the project has to make money for hamburgers, shoeshine, etc., through labor can earn KidZania money, So in order to play more experience will need to do more work to make money. The experience Center also has a KThe Idzania bank, which can afford to spend more money on banks, can continue to use the next time they play – a big attraction for children. Constantly earning money, and constantly spending money, in the experience of the center within the formation of a virtuous circle.　　KidZania is equivalent to a small society, the KidZania currency and the KidZania bank increase the children's adherence to the place.　　It is also the role of willing to coupons, this invention is an important innovation, it acts like the KidZania currency, has played a kind of sticky person's role, lets the user form A to this as the Center small society, the low-end user may work to earn money, the high-end user may pass the second-hand goods to obtain the coupon to carry on the next consumption. Disposal of idle items can release greater consumer demand MA: At present, our monthly income is about 200,000 yuan, the specific source of income is mainly three big. The first piece is CPS (cost per Sales), that is, the order rebate, we give when or jingdong such a site with an order in the past, you can get a certain amount of rebate by order; The second is derived from the inflow of coupons or andlor, the low-end user to do every task we can get a part of the profit, This revenue can be counted as CPA (cost per Action) revenue; The third is value-added services, from the idle goods trading links, the specific performance of the transaction fees. We now have more than 1 million of the daily turnover of idle goods, of which 70% of the transaction is purely willing to the circulation of coupons, more than 15% is the form of coupons plus money, and more than 10% of the transaction is pure cash, so the old trading is also a source of our current income.　　In quantitative terms, the current CPS income in our total revenue accounted for the largest, CPA ranked second. Jing: CPS is the largest, that is, the old for the new customer has become your core customers, may also be your future focus on the development of the object, they are willing to deal with the old items, and then buy a new product, which is exactly in line with China's current national policy, home appliances to the countryside, So your website can also make a lot of fuss about this.　　and home appliances to the old for the new country is subsidized, you not only deal with second-hand, but also promote and stimulate new consumption, so I think you this "old for new" business logic sounds very cool, is the whole trading system is the most attractive place. MA: Yes, what we're doing is basically building a trading platform that frees and directs new consumer demand by helping users deal with unused items. In China, the user to dispose of idle goods no more than two reasons, the first is a replacement, the second is a gift, the sale of these things to the money, as we usually play Mahjong won the same as the money, feeling is not their own, so to be willing to pay coupons after the special willingness to spend. So it's important for us to focus on the people who are getting new items. We've done some statistics to help these people to dispose of 100 of dollars of unused items, and they can release them 500~1000 dollars in the purchase demand, if the 4% return rate, we can earn at least 20 yuan. Jing: In your model, I'm most interested in replacing it with old junk, and then digging out new consumer demand. Find a group of people and find their consumption needs, this is very rare, whether it is the KidZania children's experience Center, or Sanf Outdoor club-like model for the sale of mountaineering supplies, for vertical sites, as long as powering (community) done well after, can derive a lot of things to do,　　With these customers and needs in front, the back-end imagination can be infinitely broad. If you press "100 (Old Sale price): 500 (New Demand): 20 (Willing net profit)" logic, the proportion of dealing with old and new purchases is 1:5, from the perspective of stimulating consumption, is very beautiful figures. There are probably more than 100 million middle classes in China's 400 million internet users, and these people are certainly motivated by an old change. At present, your registered user is 3 million, to do 30 million should not be difficult, and we deal with things should be more and more, if willing to network in the future to deal with the value of second-hand goods more than 1 billion, which means that at the same time create a 50 billion of the new demand, the market is very big.　　Old items are originally a relatively limited market, if through this limited market to dig out 5~10 times of new consumer demand, the meaning of the old business is completely different.　　Jing has a saying that even if you look around the world, it will be a potential market. In willing to network the current 12 major types of goods, the current inventory and trading volume are the largest female supplies, such as cosmetics, clothing and so on, the second place is mother and child supplies, the third is the book audio and video, four is the digital products, the first home appliances. This shows that in the current garage market, the most popular is mainly durable goods.　　This actually shows that the current Chinese market is still in the primary stage of development, the future as an independent business open shop may be a future development direction, that is, the market will be further subdivided, we can enumerate the possible old business. Second-hand cars should be the first to separate from the old deal to become an independent business of the category, currently, the world used car turnover may be nearly 1 trillion, is the largest garage market. Recently, Japan has a very new model for second-hand car trading mainly rely on the computer to reflect, such as you have an old car to come in, there will be all angles of the photos are taken out, put these photos online can start the auction, the buyer bid, have a satisfactory price you press "YES" key,　　The cost of the entire transaction is very low as to who will be able to get the car at a reasonable speed.　　Next is home appliances and furniture, and now almost every city has a lot of independent trading market to deal with old appliances. Children's products also have the potential to come out alone, especially 0~6岁 children's supplies and toys, because this stage children grow fastest, clothing and daily necessities are updated veryQuick, and a lot of family children are born after a bunch of friends and relatives will give gifts, now China are all only children, so children grow up after many of these child supplies may not have time to unpack can only be used as a second-hand disposal. In China, there is a good business in idle goods, that is gift. The Chinese people received too many gifts a year, now gift processing for many people is very painful, can design a new model dedicated to do gift recycling, well done is quite a big business.