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"The second-hand market has become the main battlefield for young people's consumption."
Author / Sand Line
Edited by / Li Shuguang
Many years ago, netizens ridiculed Wang Sicong, giving birth to the buzzword of "buy, buy, buy". Although not everyone is so rich and willful, for ordinary people, "buying, buying" has gradually become an important part of life.
There is no doubt that "buying" is a science. Women are proficient in lipstick numbers, and men are familiar with graphics card performance. Through consumption, you can bring a certain degree of happiness, and how to spend money more cost-effectively has become something that everyone is happy to think about.
A popular option is to devote yourself to second-hand trading.
This was once a market that lacked discussion, attention, and even was once full of prejudice, but in 2020, its market size has actually exceeded one trillion yuan. In 2021, the user scale is expected to exceed 200 million people.
Especially for young people whose consumption is more diversified, the acceptance of second-hand transactions is increasing.
1
The second hand is getting more and more fragrant
Statistics show that between 2000 and 2015, the total global production of clothing doubled, but the average number of times each piece of clothing was worn before it was discarded fell by 36%. From 2002 to 2016, the average number of garments worn in China dropped from 200 to 62.
The data is, of course, lagging behind, and today, 6 years later, that number is bound to be even lower.
When it comes to the second-hand trading market, the first thing that comes to mind is the old goods. But "old" is less and less a problem, the focus is on the degree of oldness, whether it affects the texture and function of these idle items.
In fact, there are a large number of "ninety-nine new" or even "ninety-nine new" goods circulating in the second-hand market. And many idle products belong to the new products that the owners have not yet had time to unseal.
Xie Yu, a post-90s girl, is keen on variety shows, chasing stars, likes to wear JK uniforms and all cute little things, and is extremely familiar with cosmetics.
Givenchy N37 autumn and winter color lipstick, an e-commerce platform price of 360 yuan. However, Xie Yu used the preferential rules of the duty-free shop to place an order of six at a time, and the price of the hand price was 903 yuan after the full discount, which was equivalent to 40% off the original price.
A person can not digest so much lipstick, Xie Yu first found a friend to spell a single, and then the lipstick that could not be used changed hands on the second-hand e-commerce platform.
The same post-90s girl's thoughts will come to a large "break away" once a year. Skin care products and daily necessities that cannot be used, and clothes that have not been worn several times but have not been liked, are all objects of abandonment.
Ichinian likes the japanese miscellaneous goods management consultant Hideko Yamashita, as long as it is not suitable for him now, he should be eliminated or given away.
She believes that by cutting off idle products, it will not only make the living environment refreshing, but also improve people's state of mind. And when you think of things that you can't use at home, you can re-shine when you go to others, and you will have a sense of accomplishment in your heart: this is not only good for yourself and buyers, but also good for environmental protection.
Wang Le, who likes to play games, is also a member of the second-hand trading enthusiast. Unlike the girls, this boy who has just worked for a short time prefers electronic products. Not long ago, he found a second-hand vacuum cleaner, the original price of 800 yuan, 350 yuan transaction, in addition to the noise is slightly larger, other functions are intact.
"There is no need to buy everything new", which has gradually become a consumer consensus of young people.
What can better reflect the popularity of the second-hand trading market is the mobile phone. A netizen who has been using second-hand mobile phones for a long time shared the reasons for preferring second-hand: cheap, low cost of replacement, and very little difference between the functional experience and the new machine.
Not only used iPhones, but also second-hand Apple computers, tablets and smart watches.
According to market research firm IDC, used smartphone shipments will reach 351.6 million units in 2024, with a compound annual growth rate of 11.2% from 2019 to 2024.
In addition, second-hand home appliances are also favored by consumers.
According to the data of the transfer group, in the 2021 double 11 promotion, in addition to the completion of 171,000 second-hand mobile phones and 3C digital commodity sales within 28 hours, the order volume of home appliance payment also increased by 1450.05% year-on-year, and major appliances such as air conditioner hang-ups, drum washing machines, and washing and drying machines were particularly popular.
Relevant reports show that the scale of the mainland idle market will exceed the trillion level in 2020. In the second-hand market, the younger group is more active.
According to QuestMobile statistics, in May 2021, among the two largest second-hand e-commerce platform transaction users in China, the proportion of post-90s is about 40%, which is significantly higher than that of other age groups.
2
Idle trading is on the rise
The Internet is the most sensitive industry to user needs and changes in social trends, and behind the growth of the second-hand e-commerce market is the change in consumption habits and the change of consumption concept.
China's second-hand e-commerce rose at the beginning of the new century. The first second-hand e-commerce platform is The Confucius Used Books Network, which focuses on the trading of old books. Since 2014, comprehensive second-hand e-commerce platforms have risen.
That year, the Double Eleven Shopping Festival came to the sixth edition, and both merchants and consumers were full of enthusiasm. At that time, Tmall had nearly 27,000 merchants and 42,000 brands participating, with a daily transaction volume of 57.1 billion yuan and logistics orders of 278 million.
The rise in consumer enthusiasm reflects the expansion of material demand, but excessive consumption will inevitably lead to a large number of unused things around.
In 2014, a survey by relevant agencies showed that 98% of online shoppers have idle items, and everyone has the need to deal with idle items, but most users think that selling idle items is very troublesome, and a small half of users are not clear where to sell.
At the same time, benchmarking Japan's four consumption stages, with the rapid development of social economy, in early 2015, the mainland began to enter the third consumer social stage, consumption showed excessive, personalized, the public from durable consumer goods consumption to high-frequency, high-quality consumption.
Changes in consumption habits have exacerbated the growth of idle goods. Second-hand trading naturally becomes an export of excess consumption. Many of the "nine-nine new" and "brand new" idle things circulating on second-hand e-commerce platforms are the products of impulsive consumption and excessive consumption.
Xie Yu recently hung up two of her coats and a lipstick online, which she wore two or three times, the lipstick was brand new and unopened, and her old iPhone was sold through a transfer recycling service.
Coats were bought when they looked liked, but now they don't feel right for them; lipstick is an impulse consumption in another promotional event; selling an old phone is because it is indeed a replacement cycle.
3
Second-hand e-commerce turned around
The change in consumption habits has spawned a huge user base and market space for second-hand transactions. After more than ten years of development, second-hand e-commerce platforms have begun to integrate deeply with people's daily lives.
A problem that cannot be ignored is that compared with the transaction of first-hand e-commerce, second-hand transactions naturally have problems such as trust, and there are still people who have doubts and even prejudices about this today.
For example, some people will feel that the use of second-hand goods is not so reassuring, and some people feel that the second-hand industry is too heavy...
How to make second-hand transactions safe and reassuring has become a matter that enterprises in the second-hand market must solve.
The key is service.
In the second-hand consumer market, one of the most important sectors is 3C Digital. In the traditional recycling system, it is very common for sellers or some vertical recycling platforms to use market information to earn differences, and from the perspective of buyer experience, the recycling price of mobile phone 3C goods is low and opaque, and everyone's enthusiasm for second-hand transactions will also be affected.
For second-hand e-commerce, the "Internet + Recycling" service can improve the trust and efficiency of transactions through technology.
For example, the "second-hand commodity price guidance system" developed and launched by the transfer group launches intelligent valuation and dynamic price adjustment through the combination of AI technology + platform big data.
Among them, the AI valuation model is based on the historical transaction data of B2B and B2C to evaluate the value of commodities; dynamic price adjustment is based on market supply and demand, user click rate, price trend prediction and other conditions, dynamically adjusting commodity prices.
On this basis, the "transfer recycling" service launched can give sellers a more reasonable and accurate recycling price, and the price of selling goods such as mobile phone 3C is 15% to 20% higher than the industry average; and compared with some other vertical platforms in the industry that are engaged in mobile phone recycling business, the recycling service operation process of the transfer group is simpler and the payment is faster.
The above price guidance system not only greatly enhances the trust of users in trading second-hand 3C goods, but also directly brings about the rapid growth of the platform recycling business, accelerating the efficient circulation and recycling of idle items.
It is worth noting that on January 7, the Beijing Municipal Science and Technology Commission and the Zhongguancun Science and Technology Park Management Committee published the list of "Beijing New Technology and New Products (Services)" on the official website, and the "second-hand commodity price guidance system" of the Transfer Group also successfully passed the certification, which shows that its practice in the industry has been recognized by the relevant government departments.
In addition, the first performance service system in the industry, including quality inspection, quality assurance and after-sales, has improved the trust of user transactions. The C2B2C model similar to the transfer group is also the mainstream exploration of second-hand e-commerce to meet consumer needs.
Compared with C2C transactions between individual buyers and individual sellers, the advantage of C2B2C is that the platform party intervenes, providing value-added services such as valuation, quality inspection, and after-sales service, and using the detection and evaluation of the platform to reduce the information asymmetry of the goods.
This can not only eliminate buyers' worries about the quality of second-hand items, but also reduce the bargaining troubles encountered by sellers.
Xie Yu previously sold his own iPhone 7 Plus, which was directly traded in the offline store located on Beiyuan Road in Beijing after comparing the quotations of a number of second-hand platforms.
In fact, not only selling, but also buying second-hand has become a trendy, mainstream way of life. According to the annual second-hand 3C data of the transfer group, including the mainstream flagships such as iPhone 11, iPhone 12, Huawei Mate40 (5G) and Xiaomi 11, they are all very popular products in the second-hand market in the past year.
Changing roles between buying and selling has allowed this generation of young people to find a sense of satisfaction in the release of demand, while the concept of consumption has changed: more people are beginning to realize that idle transactions are actually an environmentally friendly behavior that everyone can participate in.
4
Outlook on the vent
In addition to the high consumption trend in previous years, which has spawned a large number of idle items, second-hand trading is also in line with the most important social development concept of the moment, that is, "carbon neutrality".
Low carbon and environmental protection have become an important consideration for some groups in their consumption choices. On the policy side, second-hand transactions have also been supported. If the troubles of buyers and sellers of second-hand transactions can be successfully solved, then it is the best development window period for second-hand e-commerce platforms.
In 2021, two circular economy policies at the national level were introduced. Among them, the "14th Five-Year Plan for the Development of circular economy" of the National Development and Reform Commission mentions that it is necessary to standardize the development of second-hand commodity markets, improve the circulation regulations of second-hand commodities, establish and improve standards for the identification, evaluation and grading of second-hand commodities such as vehicles, home appliances, and mobile phones, and encourage the development of the "Internet + second-hand" model.
In 2022, seven departments, including the National Development and Reform Commission, issued the Implementation Plan for Promoting Green Consumption (hereinafter referred to as the Plan). The plan clearly states that it is necessary to broaden the channels for sharing and utilizing idle resources and second-hand transactions, actively develop second-hand transactions such as home appliances, consumer electronics and clothing, and optimize the trading environment; actively promote the "Internet + recycling" model, strengthen the recycling of durable consumer goods such as waste home appliances and consumer electronics, and promote the integrated development of the urban and rural waste material recycling system.
(Used Bag Sale)
From a micro perspective, second-hand trading is good for both buyers and sellers. From a macroscopic point of view, the circulation of second-hand goods realizes the re-creation of surplus value of commodities, which, in addition to generating economic benefits, can also reduce resource consumption and help improve the living environment.
The "2021 China Idle Second-hand Trading Carbon Emission Reduction Report" pointed out that in 2020, China's large-scale commodities, clothing, 3C electronic products, books and four major categories of carbon emissions will be about 870 million tons, and second-hand trading can effectively reduce carbon emissions.
For example, each single second-hand mobile phone transaction can achieve at least about 25 kilograms of carbon emission reduction, and an idle transaction of a household refrigerator can achieve a carbon reduction of 130 kilograms.
The data on the corporate side also confirms the social value of second-hand transactions. According to the data of the Transfer Group, since its creation in 2015, the transfer platform has completed a total of 1.783 million tons of carbon emission reduction and a cumulative energy consumption reduction of 2372.4GWh by promoting the circulation and reuse of idle goods, which is equivalent to saving the energy consumption of 200,000 Chinese households for one year.
In fact, the opportunity for second-hand trading is not only in the country. Globally, second-hand e-commerce is becoming popular, and second-hand goods are becoming more and more sought after.
Just in mid-January, Back Market, a second-hand 3C platform in France, announced the completion of a new round of $510 million in financing, with valuations soaring to $5.7 billion, a sharp increase of nearly 80% from the valuation level of $3.2 billion in May 2021, becoming the world's most valuable second-hand e-commerce company outside of Mercari.
Media reports said that investors' confidence in Back Market has increased because in the context of the epidemic and economic slowdown, consumer demand for discounted prices has created a huge opportunity for Back Market, a second-hand commodity sales company that is mainly based on the C2B2C model and can provide intermediary services, to win more business.
In addition, Back Market's market valuation has been "red", thanks to its adherence to the quality of goods and service standards. For example, Back Market will strictly detect second-hand 3C products sold through the platform, and at the same time provide consumers with after-sales protection such as returns and exchanges, which is also in line with the current trend of low-carbon development.
Since 2021, second-hand e-commerce has frequently moved in the capital market around the world, such as the US second-hand e-commerce company Poshmark and ThreeUp have been listed, and the UK second-hand e-commerce platform Depro has also been acquired for $1.6 billion.
China's second-hand e-commerce has also received more attention.
According to the data released by the E-commerce Research Center of the Network Economic and Social Society, the total financing of China's second-hand e-commerce field in 2021 is about 5.81 billion yuan. For example, the comprehensive second-hand e-commerce transfer group will receive a total financing of about 550 million US dollars in 2021; only a number of second-class platforms in the second-hand luxury goods field have also raised funds; to B class second-hand 3C e-commerce Love Recycling has been listed on the New York Stock Exchange in June 2021.
At present, in China's second-hand e-commerce development model, C2C meets the needs of long-tail transactions, and the transaction of high-value items such as second-hand mobile phones is more suitable for the C2B2C model, such as platforms such as transfer and Back Market, which improve trust and transaction efficiency by providing after-sales services such as quality inspection, warranty and 7-day no-reason returns.
Previously, some investment bankers interviewed and analyzed by the media believe that the capital market has a completely different value judgment logic for the to B and to C platforms, and the to C model will have more room for development in business, and the market will recognize the value of the service platform.
These capital operations reflect the value of second-hand transactions. Through business figures, the more worthy question to ponder is, what exactly is consumption?
Japanese social thought critic Masakazu Yamazaki believes that consumption takes the consumption and regeneration of goods as a superficial purpose, but actually pursues self-enrichment.
At the end of the day, consumption is one thing that centers on the needs of the true self.
In the stage of the third consumer society, people are accustomed to reflecting personality and presence by purchasing differentiated goods. In the next stage of consumer society, consumers will realize that goods are only self-attachment. The uniqueness and value of the self do not need to be reflected by continuous "buying, buying and buying".
The vision of carbon neutrality, the development of circular economy, and the promotion of second-hand trading to the take-off window. From the perspective of personal experience, everyone's thinking about the concept of consumption and the value of goods is the direct driving force for the outbreak of the idle goods market.
Some netizens shared their shopping experience. When he wants to buy a certain item, he will first browse the second-hand transaction information, and if there is a good quality of idle goods, he will not choose new items.
Such a choice may soon become the common norm among the population.
(Except for the separately marked source, the above picture is from Visual China)
END
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