Love Recycling: Nuggets second-hand electronic products market

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The electronic product recycling industry has also killed O2O players. Founded in 2011, the Love Recycling network, is acting as a fresh blood in the electronics recycling industry, which is recycling mobile phones, laptops, SLR cameras and other electronic devices, and then through a variety of ways to deal with, including the flagship of their own "second-hand goods" brand selling second-hand electronic products, will also be sold to other businesses. That is, this is a typical C2B enterprise.

Love Recycling Network has been expanding the sale of recycling electronic products channels. December 2014, Grammy (002340. SZ) and Love Recycling Network signed a strategic cooperation framework agreement, love Recycling network will be recycled waste electronic products to Grammy for environmental protection dismantling. In addition, Grammy Chairman Xu Kaihua also disclosed that will participate in the love Recycling network after the start of the C-round financing, to invest tens of millions of dollars in the layout of the online recycling.

"We are a complete layman, a layman who subverts industry." In fact, in many cases, it must be a layman to subvert. Chen She, co-founder and CEO of Www.aihuishou.com, said in an interview with the economics report 21st century.

Prior to that, the love recycling network in early 2012 by the morning Hing Venture to invest 2 million dollars a round of financing, July 2014 by the World Bank's International Financial Corporation (IFC) 8 million dollar B round financing, morning Hing venture investment and investment. Chen She bluntly, the introduction of IFC, hope to be more convenient to expand overseas markets.

The combination of business and public welfare

Today, if you have an old mobile phone to sell, you can search the phone model in the love recycling online, according to the Love Recycling network valuation system for mobile phone after a test, check the merchant quotes. Then submit the order, and then through the Shun Fung Express mail to love recycling. Some cities can wait for door-to-door recycling, or directly to the love of recycling stores.

According to the U.S. Market Research Institute International Data Company (IDC) statistics, 2013 China Mobile phone sales of about 320 million, is expected to 2014 China's mobile phone sales will exceed 400 million units. According to the United Nations Environment Development Agency released in 2009, "recycling-Electronic waste resources," reported that the world's discarded mobile phones around 400 million, of which China has nearly 100 million, the recovery is less than 1%.

"We can recycle mobile phones not only last year, but also previous years of elimination of mobile phones, which is a very large stock." In addition, the domestic first-tier cities on average 12-15 months to change, the elimination speed so fast, mobile phone will be very protected. "Chen Xuefeng is very fortunate to choose this field to start a business: In the TMT entrepreneurial boom today, such as the electronic product recycling industry, the potential of the blue sea, has become increasingly scarce."

It is also because of the optimistic electronic product recycling industry, the original morning Hing Venture Vice President Liang Weihong will be active in 2012 years to find a home to invest in love recycling network.

"We have a judgment at the time that China's economy has begun to get saturated or even excessive from the original scarcity economy," he said. And parents bought home appliances a more than 10 years different is, now we buy a lot of things, are beyond the needs of daily life, mobile phone is a typical example. The frequency of mobile phone replacement is speeding up. ”

In fact, Morning Hing Venture is also a big search car, car easy racket, fair price, such as second-hand vehicle trading platform early investors. Liang Weihong, the current source of venture capital, has also invested in second-hand-car trading companies, saying "other second-hand economies will be concerned".

In the morning, Shi Jianming, managing director of Chen Xing Venture, looks like the recycling net is in fact using the market method to solve the problem of recovery of administrative difficulties. "China produces 300 million mobile phones and 10 million vehicles a year," he said. If not recycled, perhaps 10 years later, will be filled with all kinds of electronic waste and waste vehicles. The government may intervene, but instead of using these policies, it is better to use the market method to solve the problem, door-to-door, so that consumers get the most convenience, rather than by administrative means to promote people to do classification. ”

Chen She also likes to emphasize the charitable nature of the love recycling net. In the B-round financing choice of investors, love Recycling chose the "people know" the World Bank. And in the acceptance of the IFC's B-round financing, love recycling also in the top of the home page hanging out the "World Bank Group Strategic Investment Enterprise" slogan, further strengthen their public good image.

Heavy line: The "moat" of Love recycling

Although the love of recycling has been and courier cooperation, can provide nationwide users with mail recycling services, and bear freight, but Chen Xuefeng still want to insist on door-to-door service or store transactions.

"We have counted, the mailing collection will 3%~5% the dispute rate, and the average postage cost is about 15 yuan, while face-to-face transaction, if detects the mobile phone to go through the water, has carried on the dismantling repair and so on question, may cancel the transaction or the negotiation solution." "Chen She analysis, customers are rarely dissatisfied with the cancellation of the transaction, but if it has sent electronic products to form some kind of expectation, the love recycling net again cancel, more likely to dispute." Therefore, the love recycling network in order to encourage customers to face transactions, will moderate in the economy to give customers a certain discount.

Therefore, love Recycling has opened in Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Tianjin, Wuxi, 7 cities in the door-to-door recycling services. Chen She revealed that in 3 years will be door-to-door recycling services to the national 30~50 one or two-line city.

Although Chen She believes that over the years, love recycling to improve the technology and operating system, and their quality of service control, enough to avoid the love of recycling by "small players" beyond, but in fact, the establishment of the first second-hand digital network recovery platform "repo net", from the Shenzhen offline store recovery into the network recycling "Lok Recycling Network", and " Recycling Network "and other electronic products recycling platform, are competing for the electronic product recycling this" blue sea. And as with love recycling, repo nets and music recycling provide mail recycling and parts of the local recovery services.

In order to expand market share, love recycling in July 2014 after the second round of financing, the Business Heavy Center to the one or two-line city store laying on. It is expected that in the next 3 years love recycling will be an additional 300 stores nationwide, of which Shanghai will add 30~50 stores. In the first-tier cities, stores are mainly opened in the people's large flow of shopping malls, each store can cover 3 to 5 kilometers.

This "biased" business approach is also seen by Chen She as the capital that prevents large net internet companies such as bat from entering the industry.

Although the waste cell phone is not the main source of profits, but love recycling will be used as a marketing theme, the purpose is to increase market share. "One step Away" when the release, love to recycle with Guevara, launched the "Scrap mobile phone for movie tickets" activities. An average of 5 yuan of discarded mobile phones per recycling price can be exchanged for tickets or vouchers ranging in value from 20 to 100.

And in the future, love recycling network also consider with Starbucks, McDonald's, operators and other online stores more life service enterprises, in the business Hall to put the recycling box, and the introduction of waste mobile phone vouchers or charges activities.

To get through the industry chain or to win the key

Love recycling will be through the above marketing activities recycled waste cell phone to Grammy, environmentally friendly dismantling and metal refining. According to Xu Kaihua, a ton of mobile phones can extract 280 grams of gold, 2000 grams of silver, 150 kilograms of copper and 100 grams of palladium. He called the discarded mobile phones "a city gold mine unmatched by natural mines". However, Chen She revealed that such used mobile phones accounted for its total recovery of 5%~10%.

And for the recovery of the 90% new record value of the mobile phone, the love recycling network hatched a "second-hand goods" subproject, the high value of the mobile phone to carry out quality inspection, rating and then directly to trade again. In addition, second-hand goods also to other second-hand mobile phone recycling business purchase.

"Using second-hand is not a disgrace, but should be a very fashion (fashion) concept, we hope that second-hand goods can make second-hand electronic products trading market more standardized, more trustworthy." Said Liu Facheng, head of the second-hand goods project.

Liu Facheng also revealed that second-hand goods buyers more than 70% from the one or two-line city, while the university city accounted for more than 50%. November 2014, second-hand goods and college students have been on the installment plan to achieve cooperation.

In order to focus on the acquisition of university students, second-hand goods will be focused on the National University of the city and university city. Late December 2014, second-hand goods in Shanghai Songjiang University City opened the first pilot franchise. Liu Facheng said second-hand goods intended to train students to use second-hand electronic products consumption habits, and the college students after graduation of the consumption potential is very optimistic.

Love Recycling net recovery of the high value of the mobile phone can be sold directly through second-hand goods, but the lower end of poor color is not so sought-after. This type of mobile phone, just occupy the total number of recycled mobile phone nearly 80%.

By Liang Weihong praised as "grounding gas" love recycling team, in the early days of the start-up and Shanghai second-hand mobile phone recyclers have dealt with, and offline traditional recyclers are very familiar with, and these recyclers, with a strong digestion capacity. Love recycling will be in the low-end recycling mobile phones to recyclers, recyclers will be mobile repair, renovation, sold to the relatively backward economy of the domestic three or four-line city or rural areas, and even Latin America and Asia. "This is tens of billions of big business," Chen She said, and they developed a recycling business auction system, through which the phone was recovered the day before, and it could be sold all the way back.

Shenzhen Huaqiang north of the recycling business Liu (alias) The original source is the mobile phone market all over the country near the stall of cattle. Two years ago, he saw the love of recycling online, he actively contacted the love of recycling, want to find them to accept mobile phones. Liu told reporters that at present he from love to collect the price of the mobile phone, probably accounted for more than 50% of its weight.

In July 2014, after the second round of financing, love recycling successively and Jingdong, No. 1th store cooperation, launched the "Old for new" business, Jingdong and shop 1th in the new Machine purchase page added with Love recycling cooperation "to old for new" link. As a result, the volume of love-recycling business is growing fast, with November business 3 times times that of July.

Boats。 Liu's December 2014 revenue was 3 times times the monthly revenue of six months ago. "After they have cooperated with Jingdong and No. 1th stores, I am more abundant." Recently, almost every day, a collection of more than 300 units, up to 1000 units. Asked whether there was time to digest the goods, Liu smiled and said: "There is no pressure, can digest, so more and more." ”

At present, the Love Recycling Network Camera recycling business has been online. Chen She said the future may also extend to home appliances and other fields.

Liang Weihong that the market for second-hand products, such as cameras and home appliances, is self-evident, but the premise of success is whether entrepreneurs can build an industry chain that is as good as the recycling business of recycling phones. "Who can get through the industry chain, who can do it well." ”