The traditional e-commerce industry is booming. From traditional integrated retail to vertical e-commerce, it has always followed the “seller-platform-buyer” inherent model. As the value of idle items is further tapped, the past inherent patterns seem to have loosened and created new opportunities and challenges.
On December 7, 2019, the 2020 International Circular E-Commerce Summit Forum with the theme of “Knowing Everything and Adding New Value” was held in Shenzhen. The forum was organized by the China Recycling Resources Recycling Association and Helin Circular Store Co-sponsored and jointly released the White Paper on the Recycling E-commerce Industry 2019.
President of China Recycling Resources Recycling Association Guan Aiguo
The demand for idle goods trading has always existed, but regardless of the flea market stage or the old market stage, the restriction of geographical location and the difficulty of standardization have always been the shortcomings of the development of idle goods trade.
Each piece of leisure goods has a large subjective difference in the perception and value evaluation of the same piece of idle goods due to different factors such as the degree of old and new, the location, and the feelings given by the owner. This determines that idle items can only enter the market in the form of standard commodities and be widely disseminated through the Internet only after the standardized processing and evaluation of the platform, so that the value can be reused.
The development of the Internet platform solves some problems in idle transactions. On the one hand, it solves the problem of asymmetry of supply and demand information of idle item transactions. On the other hand, the idle transaction platform provides buyers and sellers with services such as quality inspection, valuation, and so on. Reflect your own value. But it does not provide a fundamental solution to the trading obstacles that the industry faces due to trust and subjective differences.
Actually, the model to solve the geographical restriction and standardization problems in the process of trading idle goods is not complicated. It only needs to provide services to the customer’s doorstep, but why do so many idle goods trading companies turn a blind eye to this solution? Because although it is the ultimate solution, it is obvious that this is also hard work, so everyone is only willing to build a platform, not willing to send services to the customer’s doorstep.
SWL (“Shop-Warehouse-Cabinet”) New Model
Compared to the e-commerce industry’s need to solve the “last mile” problem of express delivery, the problem of e-commerce for idle goods is the “first mile” reverse logistics problem.The problem is that the suppliers of idle goods transactions are extremely scattered individual users. The types of second-hand goods owned by users are very complex, including books, daily necessities, 3C digital products, clothing and cosmetics. And the individual is not picky about the platform when it is idle, as long as it can achieve the purpose of processing.
“Shop” refers to a circular store. Given that users have a large number of high- and medium-frequency large items and low-frequency high-net-worth small items, the best solution is to remove the store from Go online to go offline, to the community where the user is, and to the user’s side. The community stores around users can not only greatly improve efficiency, but also greatly increase trust, and derive a series of community operation methods, such as community group purchases corresponding to community group purchases, such as flea markets that promote neighborhood relations.
“Warehouse” refers to the warehouse. The premise of continuous good operation of each store is sufficient goods protection. The adjacent store uses the “front store and back store” model, so that each store has There are exclusive small warehouses, so that each region’s store group has medium-sized warehouses for goods transfer. In addition, the Yilin Circular Store has opened central warehouses in key cities across the country to provide flexible goods allocation services for medium-sized warehouses in various regions. So that each store can get a full range of three-dimensional and sufficient goods supply. At the same time, Neighbor empowers Kokura terminals with standardized processing capabilities and valuation services to ensure that users enjoy standardized services.
“Cabinet” refers to the convenience cabinets, courier cabinets, and lockers scattered in various communities, similar to Fengchao Express cabinets, allowing users to upgrade the handling and consignment services of used items to almost Peer-to-peer intimate service, through the setting of cabinets in the neighboring neighborhood store, successfully opened the connection between the idle items in the hands of the end user and the neighboring neighborhood store, which is the most pragmatic innovation.
With the new model of SWL (“shop-warehouse-cabinet”), reading neighbors activates the liquidity of idle items in the homes of end-users. The pain point of cost reduction and efficiency enhancement of reverse supply chain is essential.
This set of SWL (“shop-warehouse-counter”) model has been successfully used in some markets and can be quickly copied to franchisees and agents everywhere.
Cai Wenyuan, CEO of Yueling Circular Store
China Re-association join hands with neighbors to advocate a new ecology of e-commerce
With the implementation of China’s waste classification policy, the outlet for the recycling of renewable resources is coming. These policies also reflect the urgent needs of the government and society for recycling resources. With the strict implementation of regulations in the future, many families are facing a problem. Many items are not actually garbage, but if they are not handled properly, they will become problems and burdens.
One of the guests of the China Recycling Resources Recycling Association, the President of the Patriotic Association mentioned at the meeting that there are mainly two types of resource reuse: traditional bulk material processing and re-consumption and recycling of used items. With the advancement of the garbage classification system, the disposal of bulk materials and resources has been on track. However, the issues of re-consumption and recycling of second-hand items have not yet received much attention and solutions.
There are three main issues:
First is the non-standard issue of second-hand products, which is completely different from new product sales. How to accurately standardize the pricing of non-standard second-hand items has always been a problem in the industry; second, the logistics flow of second-hand product transactions is different from the traditional positive The way of logistics is to transfer the goods after getting them through the hands of consumers. This form is a test of the logistics level of the entire industry, especially the level of reverse logistics. Finally, the two parties to the transaction have inconsistent perceptions of the value of second-hand items, leading to transactions Obstacles and numerous subsequent disputes.
President Guan believes that from the perspective of the industry’s development trends, the business model of Yilin can effectively solve these problems. Therefore, the China Recycling Resources Recycling Association will work with the Yilin recycling store to deeply cultivate the industry and benefit the society.
Innovation in science and technology, offline service in the neighborhood and deep cultivation
Science and technology innovation and model innovation are the decisive factors driving the development of human business society and industry.
At the end of the summit, Cai Wenyuan, CEO of the neighborhood shopping store, said: “We look forward to using artificial intelligence and image recognition technology to achieve the most accurate identification and accurate pricing of most of the idle items. Through the neighborhood reading algorithm and data center stage Services, all human idle materials will become priced, tradable, and reusable targets. In this way, all items will be truly interconnected. We look forward to building a truly connected city community through reading data and algorithm capabilities of neighbors . “
Now, the era of circular economy has arrived.
The size of China’s second-hand idle market in 2018 has exceeded 700 billion yuan, and the compound growth rate in 2014-2018 has reached more than 40%. Based on this growth, it is expected thatIn 2020, the domestic secondary market will reach a trillion scale. Consumer demand will also shift from meeting basic material needs to more diverse spiritual needs.
Cai Wenyuan, CEO of the Reading and Recycling Store said, “In urban communities in China, at least 10,000 or more recycling stores and 80,000 or more community recycling sites are needed to effectively complete the first mile of goods. A function of recycling and recycling “
In China, everything has just begun. People are not excluding recyclable e-commerce for trading idle goods because they have become richer. Instead, they have promoted the rapid development of this economic situation. This is because in addition to making money or In addition to saving money, it also meets the mainstream needs of young people in the new era to experience different products and find novelties. It is foreseeable that in the near future, circular e-commerce will be like ordinary e-commerce, from niche to the public, and eventually become a lifestyle that everyone is accustomed to.