In the face of the wave of the times, a powerful individual is nothing but a weed.
Editor’s note: This article is from WeChat public account “Bear ink Note“(ID:xiongxiongbiji), the author bears ink.
Huaqiang North, this magical place was awarded the title of “China Electronics First Street” in 2008. Over the years, its leading position in the electronics business world in China and the world is unquestionable. With its name, Zhongguancun, with its business card of “China Silicon Valley”, once became a paradise for entrepreneurs and a holy place for consumers.
However, these are memories of the last era.
Currently Huaqiang North and Zhongguancun have embarked on the road of transformation. In the recent visit, bears to pay attention to understand that the transformation process of Zhongguancun Electronic City is not smooth. In contrast, Huaqiang North is more fortunate, Mingtong Digital City, Hualianfa Square, Manha Square, etc. have turned to the beauty business.
But think about it, it’s even more embarrassing. Not selling iPhone to sell beauty, Huaqiang North seems to be gradually drifting away from the electronics industry.
The temple can no longer be tested. Following the Zhongguancun , this paper talk Huaqiang North. What is the problem behind the decline? Looking forward to who can take Huaqiang North this stick and continue to run?
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The capital of the cottage, every day a new mobile phone is born
Time axis forward callback, this is actually not the first transformation of Huaqiang North. However, the transformation of Huaqiang North will completely bid farewell to the electronics industry, so it has received much attention.
In 1998, Huaqiang North Commercial Street began to transform. Over the past 30 years, Huanqiang North has experienced two ups and downs with the success of the cottage machine. The two ups and downs are closely related to the changes in the external environment.
cottage machineThe year of vigorous development began to be untestable, but in 2003, MediaTek’s breakthrough monopoly in the chip field was a landmark event.
When MediaTek launched an integrated chip solution, the production threshold for mobile phones was greatly reduced. Simply add a cell phone to the MediaTek solution, battery, case and other components to assemble a cell phone.
Overnight, countless cottage brands have emerged. The 2013 China Shanzhai Mobile Phone Market Research Report released by Sino, pointed out that in 2009, there were as many as 6,400 mobile phone integrators in China.
Huaqiang North has a complete electronic industry chain, as long as you want to get something, you can find it here. Cyril Ebersweiler, the founder of the hardware incubator HAXLR8R, once said that Huaqiang North “can let us find any raw materials we want within 1 km, which is impossible in the United States, Europe and anywhere in the world.” .”
So, Huaqiang North has become a gathering place for mobile phones in the cottage. “At that time, Huaqiang North, a new mobile phone was born every day.”
The turning point appeared in 2011. On August 16th of this year, at the Beijing 798 Art Center, Lei Jun walked onto the stage in cheers, and Xiaomi 1 born for fever was officially unveiled. Selling for 5 minutes, 300,000 sets of millet 1 are all sold out.
August 16th, the 8th anniversary of the launch of Xiaomi mobile phone, Lei Jun voiced, under the participation and promotion of Xiaomi, China’s cottage has been completely eliminated.
Of course, outside of Xiaomi, the general decentralization of market prices, the popularity of smart phones and the clean-up actions of the regulatory authorities are also important factors in the demise of the cottage.
Second-hand trading center, relying on iPhone for serious injuries
The cottage has withdrawn from the historical stage, and Huaqiang North has targeted second-hand mobile phones.
In the movie “Over Spring”, the female host Pepe is in Shenzhen, going to school in Hong Kong during the day. At the risk of being caught, Pepe tied up dozens of iPhones on his body and became a “water passenger”, that is, with a parallel iPhone. It can be seen that the iPhone was popular at the time.
By the east wind of the iPhone, Huaqiang North, the capital of the cottage, has become a wholeThe largest used iPhone trading center. The reason is that, first, there is a solid industrial foundation. Although the cottage is gone, Huaqiang North still has the advantage in the electronics industry. Second, it has a superior geographical position and helps it become a “parallel base”.
But over-reliance on second-hand iPhones has weakened Huaqiang North’s ability to resist risks. As the iPhone went down the altar, Huaqiang North once again fell into the mud.
In recent years, domestic manufacturers have gradually gained a foothold and gained user recognition. Moreover, market competition is heating up. Product quality is up, prices are down, and incrementals are sought. Especially this year is the most obvious, the major domestic manufacturers have used the sub-brands to fight the price war.
vivo launched iQOO, OPPO launched realme, Xiaomi brought red rice, Huawei brought glory, new machines frequently appeared, and the high, medium and low third-speed markets were fully covered. Under the cheap, easy to use and quality guaranteed screening conditions, users have a lot of options.
The tight-fitting cofferdam makes the aura of the iPhone’s head no longer.
Apple’s financial report data showed that in the first quarter of FY 2019, due to the sudden decline in iPhone sales in China, iPhone sales in the quarter fell sharply by 15% year-on-year, and sales in the Chinese market fell by 2% year-on-year. In addition, third-quarter earnings report data showed that iPhone revenue for the quarter was 25.986 billion US dollars, down 12%. More notably, this is the first time since 2012 that the iPhone accounted for less than half of Apple’s total revenue.
At the beginning of this year, the iPhone implemented a rare price reduction promotion due to less-than-expected sales. The prices of major e-commerce platforms have dipped, and the maximum concessions for some models have even reached 1,500 yuan. In April, due to the implementation of the New Deal, Apple officially adjusted the price of the iPhone, ranging from 300 yuan to 500 yuan.
The latest Q3 mobile phone market shows that the iPhone is still the most popular mobile phone brand in the second-hand market. In the TOP10 platform trading volume, almost all iPhone models; especially during the time when the iPhone 11 was released for sale. The average transaction price of the main models such as iPhone XS and iPhone XS Max has even increased slightly.
However, although the iPhone in the second-hand market is still hot, but under the butterfly effect, Huaqiang North is badly hurt. The price adjustments that followed one after another made Huaqiang North even more unprepared.
Business is getting harder and harder to do, and the previous offline stores can sell in one day.Hundreds of iPhones, now even 10 units are difficult to sell; finally sold out, the new machine price cuts, users then demand return, make up the difference. As a result, many reports on the transformation of merchants and the transformation of shopping malls appeared.
On-line store decline, online platform reconstruction trust mechanism
“The water is deep” is an inherent label for the used mobile phone industry. To a large extent, this pot is going to be backed by Huaqiang North.
There are legends in the industry. Don’t underestimate any counter in Huaqiang North. Huaqiang North’s hidden master can transform an iPhone 5s into an iPhone SE within 20 minutes, and then unconsciously use iPhone SE. The price is sold to consumers.
In addition, according to informed sources, cracking AppleID, changing memory, jailbreak, and fingerprint repair are common operations in Huaqiang North’s stores. Id machine, lock machine, demon machine, writing machine and so on, all kinds of problems are shoddy, screens, shells refurbished to replace the old and new sales are also common.
After the machine was bought, the problems were endless. Over time, consumers mentioned that the words “Huaqiang North” began to play drums. Some netizens said that when they buy a mobile phone online, they will be alert to the store in Shenzhen.
“No way, the profit margin is small, no hands and feet, no money to play, no money to earn”, the theory of “business just”, the consumer sneered.
There is no such thing as a hard-working brother of Huaqiang North. The second-hand mobile phone sellers in Zhongguancun’s electronic stores have also been criticized for their integrity. Please note that during the visit, the products sold by the merchants in Dinghao Century Building are mostly unknown brands. Moreover, the slaughter routines that existed more than a decade ago, such as the virtual standard price, still exist.
In terms of business, there is no trust, and the reason why the electronic stores in Huaqiang North and Zhongguancun have declined is not only the necessity of transformation, but also the signboards of illegal merchants. For users, over the years, users have Electronic products have a basic understanding. Therefore, the two major stores have declined.
The replacement is the rise of online platforms.
In the new machine market, the emergence of e-commerce providers such as Taobao and Jingdong has made the price of mobile phones more transparent. In the second-hand mobile phone market, more and more consumers are turning their attention to online. Because for the second-hand mobile phone industry with obvious pain points, branding, standardization and efficiency are the only way for the industry to optimize.
The “Second Mobile Phone Industry Research Report” released also shows that the online rate of used mobile phones in China is currently close to 20%, and there is still much room for development in the future. Among them, the high-quality, standardized service provided by the e-commerce platform is an important reason to improve the online rate of second-hand mobile phone transactions. Because of the opacity of the traditional offline market, the standardized trading system of the second-hand trading platform and the faster trading process continue to drive the sales of used mobile phones and economic consumption.
“For us, the transformation is inevitable. Because the supply of online platforms is more abundant, in addition to selling mobile phones, we can also provide other services for these online platforms, such as maintenance and testing.” Huaqiang North Amin, a merchant, said that he and several fellow villagers still insist on doing business in second-hand mobile phones in Huaqiang North, compared to the more popular beauty. However, the industry is changing, and they also need to “advance with the times” and begin to transform online.
Continue to the point of this article. Building a trust mechanism for the second-hand mobile phone market is a valuable experience summarized by Zhongguancun and Huaqiang North as an online platform.
Take a second-hand trading platform as an example. The transfer of CEO Huang Wei has said that if the infrastructure of new e-commerce is logistics, credit and payment, the quality inspection and standardization service of second-hand e-commerce is the most important infrastructure.
Therefore, in order to eliminate the concerns of buyers and sellers in the transaction process, the transfer was first introduced to the second-hand mobile phone transaction at the beginning of the online inspection service. Xiang Changfeng, the co-founder of the transfer and co-founder of the 3C business group, has introduced the industry-leading standards for the second-hand mobile phone quality inspection. The self-built intelligent inspection center and the quality inspection engineer team provide coverage for users. 66 major items of mobile phone quality inspection, including testing whether the phone has been replaced by the screen, the back shell, whether there is disassembly, immersion and function is normal, and other consumer concerns, and for each mobile phone through the platform inspection The objective quality inspection report can eliminate the risks of fraud, empty parcels, and hand knives while eliminating refurbished machines and high imitation machines.
From the transaction mode, the second-hand mobile phone transactions transferred can be divided into two types: C2C transactions, the seller first mails the mobile phone to the platform, and the platform issues an inspection evaluation report after the inspection. After the buyer confirms the platform Then send the mobile phone to complete the transaction,Enjoy a 30-day warranty; B2C transactions, transfer to the official setting has a self-operated area, that is, second-hand mobile phones that have passed the quality inspection, providing buyers with a 180-day warranty.
These compliance services have become the main source of transfer revenue on the one hand, and the key to enhancing trust and bringing more user conversions and facilitating transactions.
The released “User Observation Report for Second-hand Economy” data shows that 64% of users “strongly agree” that second-hand trading platforms strictly control the quality of mobile phones, and 82% of users are willing to use professional institutions to provide quality assurance services. In the second-hand mobile phone transaction order of the transfer platform in 2019, 90% of the users have selected the inspection service.
It’s more convenient and more secure, and it brings a better user experience. Other online platforms are also taking the pace of change, and gradually take quality inspection as a force point.
As a result, the onlineization of second-hand mobile phone transactions has become a trend.
The
report pointed out that the online rate of second-hand mobile phone transactions is increasing year by year, currently close to 20%. For the future, the transfer of CEO Huang Wei, previously interviewed by the media, pointed out that China’s second-hand mobile phone market, the proportion of online in the next two or three years is expected to rise to about 30%, which will undoubtedly further squeeze the offline store living space.
Last
Huaqiangbei or Zhongguancun is worth mentioning. The reason why it can win widespread attention from all walks of life is because the decline of the two represents the end of an era.
The external environmental impact coupled with its own problems has accelerated the process of online industry. The market still exists objectively, except that the protagonist under the spotlight is replaced by the online platform of Huaqiang North and other lines.
Second-hand mobile phones are the third-largest category of second-hand and second-hand vehicles in second-hand transactions. According to statistics from the Ministry of Industry and Information Technology, more than 2 billion mobile phones were idle in 2014-2018. Among them, 10% of used mobile phones have a unit price of 1,000 yuan. In other words, the domestic second-hand mobile phone market has a market potential of over 200 billion yuan.
Online platforms, compared to offline stores, break the constraints of time and space, and users all over the country can trade online anytime, anywhere.
The “White Paper on Second-hand Transaction Services in 2018” shows that by the end of 2018, the number of total users transferred has exceeded 200 million, and the number of users of APP and small programs has exceeded 50 million, and the service covers 564 cities. Mobile InternetAnd the player’s own continued development, online platform services will be covered in more areas, reaching the users of all circles.
In summary, the online platform has taken over the baton from the offline store and continues on the track of used mobile phones. Among them, the quality inspection system was laid out earlier, and the performance inspection service such as quality inspection was turned into a core capability. While further consolidating the market position of the head platform, it has also established its core advantages in the vertical field such as second-hand mobile phones. .
From the perspective of consumers, online trading has already begun to occupy the consumption scene of the younger generation. The trust foundation between people is built by a strong brand platform and standardized processes. Under the new economic cycle and diversified demand, online trading platforms should continue to improve service links, improve transaction efficiency while ensuring transaction security, and bring better trading experience to users.