This article is from WeChat public account: wddtalk (wddtalk), head map source: Oriental IC.
The second-hand e-commerce sector does not seem to change because of JD’s strategic choice of “slimming”, which may also mean that love recycling failed.

In June this year, Jingdong Group officially announced the merger of its second-hand commodity trading platform and the recycling of love, and immediately announced through the US Securities and Exchange Commission official website that it has recovered nearly 20 million US dollars through investment love, and obtained some shares of love recycling. .

At this point, Jingdong, a successful slimming company, has become the largest strategic shareholder of Love Recycling.

On the surface, in the vertical field of second-hand recycling, it has fallen behind the love recycling of platforms such as recycling treasures and smashing machines. It has won the blessing of Jingdong, but it is different from the support of Ali’s leisure fish and Tencent. The merger of the recycling looks more like “the meaning of the drunkard is not in the wine”, the goal is not the pat on the already squatting position, but for the 20 million US dollars. To this end, Love Recycling not only paid the equity, but also paid the position of co-president.

Unfortunately, after a few months, the gap between love recycling and leisure fish after the merger has not narrowed. Instead, it has also used an exclusive cooperation agreement with online malls signed by brands such as Huawei and Xiaomi. The news of gaining profits by defrauding consumers in a price-cutting manner hurts the interests and trust of consumers.

Blood money financing, loss of consumer trust, but also to be willing to go it alone, I am afraid it is also related to its eagerness to fill the gap caused by the laying of offline stores and labor costs, and more serious is the pattern of love recycling. It is hard to return.

Get a late set

In 2011, the original “Leyi Net”, which was a C2C idle item transaction, was transformed into a C2B second-hand electronic product recycling platform. It is said to focus on the recycling of second-hand mobile phones and other products.

The online second-hand commodity trading at that time was almost blank, and Jingdong received it in 2014.When buying Tencent’s pat network, Ali hatched the fish in the same year, and the transfer of 58 city was born after the merger in 2015. Therefore, love recycling into the second-hand recycling field has the innate advantages that other platforms do not have.

However, the accumulation of users for 9 years, the gap between love recycling and leisure fish, and the turnaround has become bigger and bigger, and even the newly-used second-hand platform such as looking for a machine and selling it has been opened.

In May 2018, the Speedway Research Institute released the “2018 Q1 domestic second-hand trading market research report”, in which the second-hand idle APP first-time download volume was transferred to 52.88 million, ranking first, and the floating fish was 45.96 million. Ranked second, and love recycling is only 1.256 million.

After a year, love recycling data has slipped more clearly. According to the data provided by Bida Consulting, in March 2019, the number of monthly users of the idle fish APP reached 24.399 million, and the number of users who transferred to the monthly number reached 11.429 million. 1.559 million people. As for the recycling of love, the number of monthly users is only 372,000, and it is still behind the search for the machine, Confucius’s old book network, ranking sixth.

In addition, according to the statistics of iResearch for nearly one year, from the monthly number of independent devices, the recovery of love is the most serious, down to -40.1%. And from this picture can also be seen intuitively, love recycling, pat andThe user data gap between the two head platforms also seems to explain why JD’s pat and love recycling weak combination can not achieve the expected results.

Why is the earliest love-recovery team so serious?

One of the most important reasons is the “down-dimensional strike” of the vertical platform by the comprehensive second-hand e-commerce platform such as idle fish and transfer.

Like the layout of Ali, JD, beauty, maternal and child, luxury goods, etc., severely squeeze the living space of vertical e-commerce such as Jumeiyou, Le Bee, Baby Tree, etc. Vertical second-hand recycling field is also Stage the same scene. Leisure fish, transfer back to Ali, Tencent’s huge traffic portal and financial support, gradually attract new users, improve industry penetration, and their services in the core category directly compete with vertical platforms such as love recycling, with the endorsement of giants It is easy to sneak out the users who love recycling.

Of course, Love Recycling has not been able to transform to a comprehensive platform, and its own business model of earning the difference is increasingly criticized, which also leads to the loss of platform users, which exacerbates the survival dilemma of love recycling.

loss cloud

In June of this year, Chen Xuefeng once said that the merger of pat and love recycling strategy is JD’s “objective choice” and “reverse trend” of love recycling, and will “make a difference advantage with competitors and eventually change the entire second-hand Trading market pattern.”