China Carbon Credit Platform

Trade-in, where did the old go

SourceCenewsComCn
Release Time4 months ago

Since March 13, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in", the prelude to trade-in has been kicked off in various places. In the past few days, Zhejiang, Guangdong, Hunan, Shandong and other places have released implementation plans for the trade-in of consumer goods, which has attracted attention from all walks of life.

Stimulated by the subsidy of "real money", a trillion-level market has been created by promoting consumption and attracting investment, and the power of "replacement" is worth looking forward to.

So, where do the old goods go to the replaced? Along the various links of the recycling of old goods, we find that another big market is being reborn.

Both industries are growing   

Second-hand markets and recycling are the two main destinations for used goods. The most important criterion is the price that can be charged for disposing of the asset when the old goods are scrapped, which is often referred to as the "residual value" in the industry.

Most of the used goods with high "residual value" will flow into the second-hand market because of their good circulation, so that second-hand merchants can have enough profit difference between recycling and secondary sale to maintain the commercial operation of the second-hand market, and the rest will be classified as scrap.

Looking at the many old goods on the second-hand platform Xianyu, the brand mobile phone stands out because of its high "residual value" and small size, and has become the best old goods with the best circulation.

If you want to dispose of an old mobile phone, just click the recycling button, and the recycling guy will quickly come to the door to complete the process of testing the mobile phone and valuing and recycling in person, helping you quickly realize it. Of course, through the form of helping to sell, self-selling, etc., idle mobile phones can also quickly enter the second-hand market.

"In fact, in recent years, with the change of people's attitudes, the thrift market is ushering in a round of significant growth. Zhan Yi, head of business operations of Xianyu Digital Electronics, believes that the trade-in policy, whether from improving consumer awareness or injecting market liquidity, has brought new opportunities for the growth of the industry.

With the east wind of trade-in, Xianyu has also opened up e-commerce platforms such as Tmall to promote one-stop trade-in services, and at the same time that users receive new goods, they will directly recycle and disassemble users' old goods on site, so that people can trade in the old without leaving home.

The old goods that are rejected by the second-hand market can only be reduced to waste products and enter a new round of resource circulation.

Headquartered in Yuhang District, Hangzhou, Zhejiang Huge Waste Management Co., Ltd. is an enterprise deeply engaged in the recycling of urban renewable resources. Every day, Brother Hu's special cleaning vehicle will transport the household waste collected from various districts and counties to the sorting centers in various places, and carefully sort these renewable resources according to more than 40 sub-categories in 9 categories, and provide them to qualified enterprises for recycling, and a small amount of residual residue and hazardous waste will be sent to waste incineration power plants and hazardous waste disposal units for harmless disposal.

"Old goods need to be covered after all, and our existence is to secure this bottom. Hu Shaoping, vice president of Tiger Brother, revealed that at present, the average daily recycling volume in Yuhang District alone has reached 250 tons, the resource utilization rate has reached more than 97%, and the harmless disposal rate has reached 100%.

Catalyze business models

Not long ago, a set of data released by Xianyu can be seen: the average daily transaction volume of Xianyu has exceeded 1 billion yuan. In the past year, nearly 30 million new post-95 users have used Xianyu.

It is self-evident that there is great potential in the second-hand goods trade, how to use this round of trade-in to tap more opportunities? Many enterprises have already geared up and are ready to take advantage of this wave of dividends.

In Changxing, Huzhou, an important production base for lead-acid batteries in China, a reverse logistics platform "Lead Egg" around battery recycling has been built.

"Lead Egg" is like an old version of the Internet taxi platform, mainly aimed at the lead-acid battery in the two-wheeled electric vehicle, as long as the platform matches the most suitable team for recycling quotation, the other party will come to the door to receive the goods, the scrapped electric vehicle for unified recycling and disposal.

"For the average person, it's hazardous waste, but in the thrift market, it can be a big industry. "The processing of 300,000 tons of waste lead-acid batteries can produce about 200,000 tons of recycled lead, and recycle plastics and waste acid. The use of recycled lead to produce batteries can save 60% of standard coal and 50% of water.

As of the end of March this year, the "lead egg" platform has entered 22 provinces across the country, with 87,000 registered waste merchants, 4,700 contracted transportation capacity, 443 recycling enterprises, and a total of 1.2 million tons of lead-acid batteries collected. At the beginning of this year, the "Lead Egg" platform also expanded its business to the field of lithium battery electric vehicle recycling.

Xianyu is looking forward to building an idle trading market with more complete categories, smoother transactions and larger user scale. To this end, they are deeply involved in all chains of the market and are one step deeper into the recycling industry.

It is understood that Xianyu is currently actively doing three things: first, to expand more categories of old goods recycling, including the home appliance industry highlighted in the trade-in policy. The second is to increase the number of recycling stores, and spread the tentacles directly connected to users offline and deeper. The third is to continue to improve technical strength to cope with the rapid growth of used goods detection and recycling links in the future.

Tiger Company has paid attention to the value of data in the thrift industry chain, and they have realized the digitization of the entire recycling chain through their own platform.

"In this way, people can see the whereabouts of their old goods, create an environmental protection point system, government departments can effectively supervise, and back-end enterprises can also realize the traceability of resources." Kill three birds with one stone. Hu Shaoping, vice president of Brother Tiger, said. Another benefit of digitalization is that it can also be calculated as carbon reduction data, laying the foundation for further linking the carbon trading market.

There are three major pain points that need to be solved urgently

Different from new products, non-standard attributes make it more difficult for old goods to be recirculated and recycled. This also means that the thrift market, which seems to have unlimited potential, still has many pain points.

One of the most criticized pain points is the lack of standardization.

"For example, when we evaluate a mobile phone, we will use one word, color. What is condition, including screen condition, battery condition, breakage, ......" Zhan Yi explained, adding that each phone has a different condition and each recycler's evaluation system is different. As a result, the different judgments on the fineness have produced a price difference, which has also brought about the problem of market circulation.

In order to solve this problem, Xianyu has done some exploration on its own. For example, actively participate in the formulation of some market standards, and by improving intelligent detection technology, to minimize subjective differences caused by manual evaluation.

But in the final analysis, the promotion of industry standards and even national standards still needs to be done by the government. The reporter found that not long ago, 13 departments including the Zhejiang Provincial Market Supervision Administration issued a "Zhejiang Province to promote large-scale equipment renewal and consumer goods trade-in standards to improve the action plan", which mentioned that it is necessary to speed up the formulation and revision of equipment updates, consumer goods trade-in, recycling and recycling related standards.

Fanglin second-hand car market Photo provided by the interviewee

The annex lists 294 items in the list of key national standards, 58 items in the list of provincial and local standards, and the national standard construction of "second-hand electronic product usability grading specifications" that is closely related to the fineness is also among them.

Fang Chongqi, general manager of Fanglin's second-hand car market, believes that on this basis, the data system should be further opened. "At present, the domestic second-hand car market has not yet formed a unified evaluation and testing system, nor has it formed a unified maintenance database, so that consumers have too many concerns when choosing second-hand cars. ”

He believes that if we can further optimize the cross-regional registration management, promote the open use of non-confidential and non-private information in the automotive field, support the construction of a new energy second-hand car power battery testing and valuation platform, and build a unified platform for second-hand car testing, it is a powerful tool to promote the circulation of second-hand cars.

From the perspective of waste recycling companies, one of the major pain points they face is the limitation of recycling sites.

Since the recycling industry itself is a low-income business, it is particularly cost-sensitive. From the perspective of environmental protection, there must be a standardized internal site for waste disposal, but from the perspective of profits, the construction of a standardized site requires a lot of investment, especially the land cost is difficult for enterprises to bear, and open-air treatment can achieve controllable costs and avoid losses.

The relevant person in charge of the Circulation Development Department of the Zhejiang Provincial Department of Commerce believes that since waste recycling itself has the nature of the bottom line and the attribute of public welfare, the site for recycling and disposal should be incorporated into the public infrastructure.

"This year, we will add 30 standardized sorting centers in the province that match the scale of regional waste according to the comprehensive consideration of the industrial structure and population density of each block. The person in charge said that in this way, it can not only protect the environment, but also reduce the burden on enterprises, and drive the standardized development of the entire recycling industry.

RegionZhejiang,Shandong,Hunan,Guangdong
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