The ultimate pleasure of shopping is to do whatever you want, and “changing” can satisfy the user’s pleasure.
In five years of entrepreneurship, Zheng Liqun and the team have established a firm foothold.
However, at this time, the mobile phone recycling and trade-in industry in which it is located has gone from silence to silence, and the trillion market has ushered in the collective intrusion of Internet giants and startup companies. She and the team must evolve quickly. Before the opponent’s guns come in, their only chance of winning is to catch the pain points and hit the bullets into each other’s eyes.
“In this case, you can win too,” Zheng Liqun told more than once.
Getting through the last step of easy machine change
On the last day before the Spring Festival in 2019, Zheng Liqun and colleagues from the 360 City Club met in Beijing to review the gains and losses of the past year and discuss changes in the future industry.
Now, 360 City Gang is already the top three startup companies in China’s recycling industry. Everyone recalls that in the past few years, the “old-for-new” industry has done a good job, but many problems and pain points are still there – the existing “old-for-new” model, selling old and buying new separation, business flow in formal.
“Sold out on this platform, go to another platform to buy”, the price has no advantage, the operation is time-consuming and laborious.”
“Mobile phones have become a part of the human body, but recycling old phones and then buying new ones will cause consumers to lose contact for two or three days. This is anti-human practice.” Zheng Liqun said.
Because of the shortcomings of this model, the trade-in situation of Chinese mobile phones has been less optimistic. Most users prefer to put their mobile phones in drawers, and they don’t want to trade in new ones, or they usually come out with mobile phones that have been eliminated for generations, and the value of these phones is very limited. Over time, a reverse cycle has formed in this industry.
A colleague stood up and asked, in this case, why don’t we do the sales of new mobile phones ourselves? The questions raised by colleagues made Zheng Liqun suddenly open. If you don’t just do the “old machine recycling” in the “old-for-new”, and at the same time do new mobile phone sales and mobile phone recycling, and then get through these two links, the industry’s problems will be solved.
This summer, relying on China’s largest 3C distribution platform, Tmall’s “easy to change digital flagship store” went online, bringing a unique new model in the industry. The new model brings “saving money”, “saving time”, “saving effort” and “saving the heart” to break the pain points of “old-for-new” on the market one by one.
The new model compresses the trading chain, which creates the advantage of profit return. For example, the new machine is sold at the purchase price, and the second-hand recycling is revitalized, and then the profit is given out as a subsidy for the user.
Take Apple’s iPhone XR released in the fall of 2018 as an example.
The price is 4,588 yuan, and the actual purchase price can be as low as 2088 yuan through the new purchase mode of “easy change”. The price of the new machine, plus 2,200 yuan for the old iPhone 7P, and 300 yuan for the new subsidy, the iPhone XR can finally be as low as 2088 yuan. All the new machines in the store can enjoy 50% off within one year.
From the overall renewal process, users enjoy a one-stop renewal experience. After the sesame credit score reaches the requirements, the old models can directly deduct the new models, allowing consumers to achieve “easy change”. The desire for a new machine.
Now, mobile phones are integrating more and more features, and privacy security is considered the “last mile” of mobile phone recycling. Concerns about privacy and security have blocked the “old-for-new” industry. Ensuring the privacy of users is an easy change. With the help of 360 City’s “Privacy Crush” patented technology, the user has a “double insurance”. When recycling, the user will be smashed in person; when the old machine reaches the background, the second privacy will be smashed; A privacy smashing security report will also be issued to protect users’ privacy by 360 degrees.
Of course, the key to creating a new model is to easily change how to get Apple’s new machine official license, sell authentic licensed products; how to get Tmall’s traffic and operational support, and then open the business closed loop. It is thanks to the Tmall and Apple squad.
“I am the most professional in replacing my mobile phone. The advantage of Tmall is user management and traffic. Apple’s user experience is the best. The three parties put the best things together and become a state-of-the-art model. Zheng Liqun said, “When the 5G change is coming, it will make the change mode better. How can you not catch up with this vent?”
A proposition composition
After the Spring Festival of 2019, Zheng Liqun contacted the head of Tmall Consumer Electronics and said that he found an opportunity that was exclusively for Tmall and easy to change. Zheng Liqun knows that to build a state-of-the-art model, the huge Tmall ecosystem has the infrastructure and realistic conditions for landing the dream.
Tmall, as the country’s largest new mobile phone sales platform, is not only a household name, but also covers more than 400 million consumers in China, and is a platform to support the innovation of new machine sales companies. At the same time, after five years of experience in the country’s largest second-hand trading platform – leisure fish, it is also a platform to support the innovation of second-hand enterprises, the transaction volume in 2018 exceeded 100 billion.
On this basis, Tmall has already built a new machine sales – old machine recycling – two mobile phone sales, layout of the ecological closed loop of the mobile phone industry.
Before Zheng Liqun, Tmall has noticed the opportunity here. In the past few years, people have changed their mobile phones frequently. From two and a half years to one year and one for more, the mobile phone integrates more and more functions such as telephone, camera, computer, education and shopping. In the millennial generation, mobile phones are changing from a tool to a lifestyle. Since then, the head of Tmall Consumer Electronics has realized that rapid technological advancement and business model innovation will definitely amplify the demand for replacement.
The supply and demand are all there, what do you do next? For Tmall and its partners, this is a proposition essay that is waiting for the emergence of a professional partner.
Many people have seen the opportunity and hope to cooperate with Tmall. But they all use this as a business, and A products are exchanged for B products, earning the difference, and how much to say as soon as they come up. The head of Tmall Consumer Electronics said: “On that big wave, I think how many mobile phones you sold, and sold a few new machines by replacing the old ones. This is a very short-term digital demand. I hope for the society. Providing value. In the year, 400 million mobile phones were eliminated. Where did they go? Second-hand mobile phone sales, changed users, and generated new value for brand chambers? Will there be a service standard in the middle?
But Zheng Liqun is different. From the very beginning, the two talked about the closed loop of the mobile phone industry and rose to the strategic level. Within half an hour of a short conversation, the two sides decided to work together to create this big closed loop.
“Selling new machines, today Tmall is the biggest platform, two mobile phones are recycling, and free fish is the biggest platform. Why do we still have to do this trade-in? A professional enterprise in the field of consumer electronics is very hot outside. Why choose to cooperate with us?” The head of Tmall Consumer Electronics replied, “Because we are together to serve the user experience and the brand side, and promote the development of the bilateral market.”
Zheng Liqun also feels that the two sides have similar ideas. She said that Tmall not only has a large infrastructure, but also has a strategic height and can set up a large closed loop. “There are very few such large platforms that can achieve large closed loops. It’s just an executor to facilitate a smoother loop.”
In addition to the concept fit, Tmall chose to work with the team, and it also has the factors of Zheng Liqun and his team. Mobile phone integrates a lot of informationTo consider quality, safety and privacy, brand is a very important factor in business relationships.
When the cat was determined to get through the big closed loop of the industry, it was easy to change the team. Such a highly professional team, which is an authorized dealer of Apple, has also been verified by the market and capital. After five years of entrepreneurship, I experienced four rounds of financing and steadily and steadily. Among them, the angel financing in 2015, the investment of millions of RMB by Qihoo 360; in the A round of 2016, the investment of Zhiyuan Capital was 30 million RMB; in the B round of 2017, the investment of Suning Tesco was 60 million RMB; the B+ round of 2019, Suning Tesco invested 200 million yuan.
The ultimate pleasure of shopping is whatever you want
Before the Spring Festival of 2019, when there was the idea of a new model, Zheng Liqun first thought of Apple.
At the time, as the dollar strengthened, the iPhone, which was priced in dollars, became more expensive in countries and regions outside the United States. Zheng Liqun, who has been engaged in the mobile phone industry for many years, realizes that Apple’s popularity is there, but the price/performance ratio is not good. The replacement model may solve the problem of Apple’s mobile phone price/performance ratio. This idea coincides with Apple.
As an authorized dealer of Apple mobile phone, easy change can not only ensure stable supply of genuine goods, but also understand the trajectory of user change through big data analysis, for example: which users are using iPhone7 for iPhone XR, which users are using iPhone8 for iPhone XR? This allows for precise marketing and targeted user experience. This is precisely the professionalism that mobile phone manufacturers need most.
Zheng Liqun found that users who come to change easily are mainly divided into two categories. One type of user is a fashion family who wants to shop as much as they want. These people change frequently, and change the mobile phone once a year. If the brand is new, they want to change. Another type of user is a savvy user who is looking for a price/performance ratio. They only take shots when the price/performance ratio is right. Taking the old mobile phone out and replacing it with a new one, and getting a new machine at half price is an opportunity for such smart users to show their intelligence and intelligence. How can they miss it?
With the new “easy to change” model, mobile brands can recommend different policies and activities to different users.
For the first type of users, they regard the freewheeling and pursuit of fashion as the ultimate pleasure of shopping, and can meet the user’s pleasure. The major brands will have a new machine, and they can easily change one for two or three thousand yuan, greatly improving the experience of changing.
Change, it is productThe card sticks to the user’s good mode. Zheng Liqun joked that the change model is a way to make e-commerce out of low-level fun. The low-level taste of e-commerce is always looking at who is five dollars higher than anyone else, and users can turn around in one second. But the change model, the experience is better, can stick to the consumer, let the brand continue to maintain the connection with the consumer.
Easy to change the second category of users, mainly young people, they have longed for the brand, but the budget is limited, many consumers are entangled in buying 64G, 128G or 256G. With the new mode of “easy change machine”, this decision is much simpler. I bought a 64G first, then I switched to 128G and 256G. Today, it’s easy to change the value of the brand to continue to provide value to the user, not a one-time consumption.
After doing an easy change, Zheng Liqun and the team slowly saw that someone bought a new machine, bought a new model, who recycled the old machine, and changed the old model. In the long run, the constant accumulation of data will also bring unlimited imagination. From a deeper level, it will reshape the industry and user behavior.
Zheng Liqun strongly agrees with the head of Tmall Consumer Electronics that “the ultimate pleasure of shopping is whatever you want.” The change can satisfy the user’s pleasure. In the future, the easy change will also be expanded from “new machine” to “all categories”, from “changing mobile phones” to “changing lifestyle”.
Now, Zheng Liqun and her team are standing at a new starting point and starting a new journey.
She said, “The next goal: let the world have no hard to change things!”