National Day Mobile Phone Swap Tide: Second Mobile Phone "Picking up Leaks", Is Old Phone Profit Equal to Selling 8 New Phones?

Figure/ICThere are two idle phones at home. If the price is suitable, sell them all and add some money to take down a beloved second phone

Figure/IC

There are two idle phones at home. If the price is suitable, sell them all and add some money to take down a beloved second phone. "After 00, Wang Qiang contacted a recycling vendor and took photos of the entire and detailed parts of the idle phones according to their requirements, waiting for the other party to quote the price.

Wang Qiang told a reporter from Shell Finance at the New Beijing News that he has been in contact with the second mobile phone for two to three years. Nowadays, he has to browse relevant platforms every day and will take action when he meets a suitable one. "Why not buy a better cost-effective phone with less money

There are many young people like Wang Qiang who are enthusiastic about purchasing second smartphones. According to the 2021 "Circular Economy" Research Report, users under the age of 35 account for 74% of second-hand mobile phone sales. Among them, white-collar workers, small town residents, and students are the three main groups for purchasing machines.

The pursuit of young people is driving the continuous outbreak of the domestic second mobile phone market. Industry data predicts that the transaction volume of China's second-hand mobile phone trading platforms is expected to exceed 60 million units and the transaction amount is expected to exceed 80 billion yuan in 2023.

The market prospects are also favored by merchants. For a moment, many players flocked to this track, in addition to individual mobile phone vendors, there were also comprehensive second-hand trading platforms such as Xianyu and Zhuanzhuan, as well as vertical trading platforms such as Love Recycling and Flash Recycling.

The profit of a second mobile phone is far higher than that of a new phone, and can even reach 8 times that of some brand new phones. Liu Dong, who runs a second mobile phone store, keeps an eye on the market situation. "The upcoming National Day holiday is bound to usher in a wave of 'device replacement', which also means that a large number of second-hand phones will flow to the market. If we can obtain some supply from it, it will bring significant profits

The launch of new machines has given rise to a wave of machine changes

Preparing to acquire a new phone during the National Day period, we will have a 'comeback' on our previous phone. Li Xin, who is browsing the new phone on various e-commerce platforms, told a reporter from Shell Finance that he has been using his phone for three years and has been considering replacing it with a new one. Not long ago, when I saw the Huawei Mate60Pro go public, I was quite moved. "The phone I am currently using can sell for two to three thousand yuan, and I only need to add some money to get a new phone

As long as the phone is taken care of properly, no one can tell it's second-hand when the back case is put on. "Zhang Lei just spent more than 5000 yuan on a second-hand seller to buy an iPhone 14 Pro that is 95% new and priced nearly 10000 yuan, and showed it off to friends around him.

In recent times, with a number of mobile phone brands releasing new models and multiple stores launching promotional activities during the National Day holiday, the domestic mobile phone market has not only welcomed a buying frenzy, but also driven the second mobile phone market to heat up again.

Every time well-known mobile phone brands such as Huawei and Apple launch new models, there will be a wave of device switching on the market, "Li Xin told Shell Finance reporters

In fact, the domestic second mobile phone market is continuously exploding.

The intelligent research consulting report predicts that the transaction volume of second-hand mobile phone trading platforms in China is expected to exceed 60 million units and the transaction amount is expected to exceed 80 billion yuan in 2023. According to data previously released by IDC, the global shipment of second-hand smartphones, including official refurbished smartphones, is expected to reach 413.3 million units by 2026, with a compound annual growth rate of 10.3% from 2021 to 2026.

More and more consumers are no longer choosing brand new phones when purchasing mobile phones, but are more inclined towards cost-effective second phones. "An industry insider analyzed to a reporter from Shell Finance, stating that due to factors such as market saturation and insignificant version iteration, consumers are no longer blindly pursuing new phones and are also more rational in their choices.

When a reporter from Shell Finance searched on second-hand platforms such as Xianyu and Zhuanzhuan, he found that about thousands of merchants were selling second phones. In addition to brands such as Apple, Huawei, and Xiaomi, the models sold also include niche models such as Black Shark and IQOO, with prices ranging from hundreds to thousands of yuan depending on brand and model.

On Xiaohongshu, many UP owners post usage tips and purchase recommendations on the topic of "second mobile phones". On short video platforms, the number of views on the "second mobile phone" has reached 2.2 billion, including numerous KOLs (opinion leaders) evaluating and recommending the second mobile phone.

Not only is it currently in a hot stage, but the future market is bound to continue to expand with the continuous innovation of the brand side. "Analysis by Lao Jiang, who runs a second mobile phone store in Chongqing, Mobile phones are a rapidly evolving consumer electronics product. Although some models were introduced two or three years ago, they still meet consumers' daily needs in terms of machine performance and appearance design. Naturally, they have attracted many young people who enjoy tossing and turning, as well as players with limited wallets

Young People's Tao'er Mobile Phone: Curiosity and Half Price temptation

Zhang Lei's first encounter with the second mobile phone was purely accidental. Once, while accidentally browsing through his social media, he discovered that in the picture posted by a second-hand vendor he had previously added, there was actually a phone he had long admired. After communicating with the second-hand vendor, he found that this phone, which had only been used by the original owner for less than 4 months and remained 95% new in quality, was only half the price of the new phone, which made him hesitate to place an order.

A few days later, as he took his phone out of the delivery box and played with it repeatedly in his hand, he became fascinated by the fun of 'picking up leaks'. During that time, he paid special attention to many second phone vendors and browsed their social media every day. "I didn't expect so many phones to be 95% new or 98% new, just because they were 'second-hand', the prices would be so much cheaper

Similarly, Wang Qiang, a player born in the 2000s, is accustomed to purchasing second smartphones. Regarding the reason for entering the pit, Wang Qiang openly stated that he had been using phones priced below 2000 yuan earlier. Despite his longstanding desire for high-end phones, the prices of 6000 or 7000 yuan often made him unable to purchase them.

After communicating with netizens on a digital forum, he spent more than 3000 yuan on a phone that was 90% new and originally priced at about 7000 yuan.

Nowadays, behind the rapid rise of second generation mobile phones in the domestic market, the group of young people represented by the post-90s generation cannot be underestimated.

According to the 2021 "Circular Economy" Research Report jointly released by JD and Everything New, users under the age of 35 account for 74% of second-hand mobile phone sales. Among them, white-collar workers, small town residents, and students are the three main groups for purchasing machines. According to the "Mall Hot Words List" of Feigua Data, in June of this year, searches using the keyword "second-hand mobile phones" increased by 16186%, with a transaction index of over 289000.

Young people's curiosity about new items also makes them more receptive to second phones, "Lao Jiang told Beike Finance reporters. He almost receives multiple customers who come to inquire or buy and sell second-hand phones every day, and he found that these customers are mostly concentrated in the age range of 20 to 40." It is obvious that young people have a stronger understanding and desire to purchase second phones than their previous customers

As a "veteran player" who had been passionate about second smartphones more than 10 years ago, Ma Hao told a reporter from Shell Finance that he has a personality of liking the new and hating the old for 3C products such as smartphones. After playing with a new phone for a few days, he wants to change it. For this reason, he is not only enthusiastic about purchasing second phones, but also has sold several unused phones on second-hand platforms.

A good business, earning over 10000 yuan from over 40 second mobile phones

Lao Jiang, who had just arrived at the store, tirelessly arranged for employees to test the 10 second mobile phones he had just received.

Secondly, mobile phones usually first look for any damage or scratches on their appearance, as well as any signs of disassembly or repair. Then, they are tested for battery health, camera photography, and call performance. "Lao Jiang told Beike Finance reporters that only after precise testing can the phone be finally valued.

Quickly, the employees reported the test results: among these mobile phones, 4 were relatively good and could be directly put on the shelves for sale; 5 units are of average quality and require replacement of parts before switching hands; The remaining one was severely damaged and could only be disassembled as a repair part.

After obtaining specific information, Lao Jiang began to price each item in a targeted manner.

Pricing is a science. If set too high, no one will buy, and if set too low, there will be no profit, "said Lao Jiang. Nowadays, the second-hand market has passed the era when low-end phones were the main focus, and many mid to high-end phones are active in the market, among which brands such as Huawei and Apple are even more in demand. Especially Apple's Promax series and Huawei folding screens are popular styles among many netizens, with an additional price of four to five hundred yuan being sought after. And the pricing of other brands' second phones is usually not too high, "earning one or two hundred yuan per device is about the same

The model is only one of the factors that determines the price, and the channel is also a key aspect that second-hand traders value. Only through appropriate channels can we obtain high-quality and affordable second mobile phones, thereby gaining greater profit margins.

In order to obtain more sources of goods, Lao Jiang not only regularly contacts his family, but also frequently follows suitable digital products in digital forums. Once there are products he likes, he immediately takes them. Once, he spent 3800 yuan to receive a 90% new Samsung S22u from a netizen, and after simply cleaning the appearance of the phone, he successfully sold it for 4100 yuan.

Nowadays, there are indeed more people choosing second phones, "said Liu Dong, who has also been in the mobile phone business in Guangdong for nearly 10 years. He has hundreds of customers, including not only young customers who are accustomed to frequent phone changes and pursue freshness, but also many customers who actually do not know about second phones.

Liu Dong knows in his heart that this means that consumers who were originally in the new phone market are turning to second phones. "This group of people is mainly white-collar workers who have just started work, and the key to choosing second phones is the model, price, and quality. As long as the price is appropriate and the quality is relatively new, they usually place orders

During this period, Liu Dong is closely monitoring the second-hand market. The arrival of the "phone change trend" on National Day means that a large number of second generation mobile phones will flow into the market. If we can obtain a partial source of goods from it, it will inevitably bring us significant profits.

Nowadays, the sales and profits of the second mobile phone are much higher than those of most new phones. "Liu Dong admitted that in recent years, the transformation of young people's consumption concepts has led to a significant decline in new phone sales, and store business is difficult to maintain solely by selling new phones." More importantly, as new phone prices become more transparent, profits are also becoming increasingly thin. Coupled with competition among peers, a brand new iPhone can earn up to a hundred yuan, while Android phones may earn dozens of yuan

Compared to the relatively small profit margin of the new phone, the second phone, which is not a standard product, has no clear price and consumers are not aware that the price difference can naturally allow Liu Dong to make more profits. He told a reporter from Shell Finance that each second mobile phone can bring him profits of two to three hundred yuan or even higher. This is equivalent to selling 3 new iPhones or 8 new Android phones.

Last month, I sold more than 40 second generation mobile phones and earned over 10000 yuan, while the new phone only earned four to five hundred yuan. Compared to the other two, I am definitely more willing to choose the former, "Liu Dong said.

The 'zero threshold' is a mix of fish and dragon,Wrong order boardGrooving point

The market continues to expand, and the sales channels of second mobile phones are becoming increasingly diversified.

Unlike previous transactions that were mostly concentrated on offline platforms, the second mobile phone industry is gradually shifting its sales location to online. In addition to traditional e-commerce selling in the form of pictures, many influencers use short videos and live broadcasts to make their second mobile phone appear in front of the camera.

On September 24th, a reporter from Shell Finance noticed on a live streaming platform that several influencers selling second smartphones were enthusiastically introducing the styles and prices of their machines. The message board constantly flashed with inquiries from netizens and order prompts.

The appearance of second mobile phones on live streaming platforms has its own reasons, "explained one influencer. Many buyers question the authenticity of the images posted by vendors, fearing that the other party deliberately conceals defective details. Live streaming, on the other hand, can dispel buyers' concerns through a comprehensive display. "More importantly, buyers are more likely to have consumption impulses under the passionate words of the host

Wrong order board

"I bought a 95% new mobile phone that claimed to be free of dark diseases before, but when I got it, I found that it was obviously inconsistent with the seller's description. There were many fine lines on the screen and the back cover, and the phone crashed from time to time during use." Ma Hao roast that when he was ready to communicate with the seller, he found that the other party had already pulled him black.

5Wrong order board

Although the second-hand market continues to be hot, the current situation of industries such as' zero threshold 'and' C2C model 'has also mixed the market. "Liu Dong said," Most of the buyers and sellers of the second mobile phone are ordinary players, and transactions are mainly low-frequency transactions. Sellers do not need to pay deposits like opening stores on traditional e-commerce platforms, which undoubtedly increases the potential risks of transactions

With the continuous development of the market, more and more professional platforms and mobile phone manufacturers are also beginning to enter this track.

A reporter from Beike Finance learned that in addition to comprehensive second-hand trading platforms such as Xianyu and Zhuanzhuan, vertical trading platforms such as Ai Recycling and Shan Recycling have emerged. In addition, mobile phone brands such as Huawei and Apple also offer "old for new" services and offer subsidies ranging from 500 to 1000 yuan.

According to data, over 400 million smartphones are produced annually in China, with over 80% of them idle. Such a vast space naturally attracts players eager to profit from it. "An industry insider analyzed that professional platforms have to some extent promoted industry specialization and standardization.

Multiple individual second-hand vendors have also told reporters from Shell Finance that although the emergence of similar platforms has had a certain impact on business, for many consumers in third and fourth tier cities, as well as players who are accustomed to offline trading, they will still choose their more familiar offline stores.

Clearing up the current chaos in the industry can make the market more stable. Affected by this, the second-hand industry is bound to continue to erupt in an orderly manner in the future, and it is only a matter of time for a hundred billion dollar market, "said Lao Jiang.

New Beijing News Shell Finance Reporter Qin Che Editor Wang Jinyu Proofread Zhang Yanjun

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