Core Viewpoint - The second-hand e-commerce platform Zhuanzhuan is shifting from a C2C model to a C2B2C model, focusing on "official verification" of second-hand goods to enhance trust and standardization in transactions [3]. Group 1: Business Model Transition - Zhuanzhuan announced the closure of its C2C "free market" business, with the personal goods publishing entry closing on September 24 and the trading service shutting down on September 29 [3]. - The CEO of Zhuanzhuan, Huang Wei, stated that the decision to close the "free market" was difficult but necessary due to issues like online fraud and disputes that arose from the C2C model [3]. - Since 2019, Zhuanzhuan has been gradually shifting its focus to the C2B2C model, with the "free market" business now accounting for less than 3% of the platform's overall GMV [3]. Group 2: Market Context and Challenges - The second-hand e-commerce market is projected to reach a transaction scale of 645.02 billion yuan in 2024, reflecting a year-on-year growth of 17.56% [6]. - The C2C model faces challenges such as insufficient trust, limited supply, and low conversion efficiency, leading to a small profit margin [4]. - Zhuanzhuan's C2B2C model aims to improve trust and supply by implementing quality inspection teams and providing after-sales guarantees, which are seen as essential for enhancing user experience [4][7]. Group 3: Competitive Landscape - Zhuanzhuan and Xianyu are both classified as comprehensive second-hand trading platforms, but they differ significantly in their attributes; Zhuanzhuan focuses on transactions while Xianyu emphasizes community engagement [6]. - Both platforms generate revenue through commissions, advertising, and value-added services, but they face common issues in the C2C market, including trust deficits and inefficient dispute resolution [7].

Core Viewpoint - 转转 Group is transitioning from a C2C model to a C2B2C model, focusing on quality inspection and service capabilities, marking a significant shift in its business strategy [1][3][4] Business Model Changes - The "Free Market" C2C model, which accounted for less than 3% of the overall GMV, will be gradually shut down, with the transition ensuring a smooth user experience [3][4] - The company aims to enhance its C2B2C business, which has shown rapid growth and profitability over the years [3][4] Strategic Focus - CEO Huang Wei emphasized the need for the company to reassess its business focus, stating that the shift to a "new consumption enterprise" is essential for future competitiveness [3][4] - The C2B2C model will prioritize official quality inspections, addressing consumer trust issues in second-hand transactions [4][5] Quality Assurance Initiatives - Since 2019, the company has been developing its C2B2C model, introducing services like "official inspection" to standardize quality control in second-hand goods [4][5] - The introduction of a quality inspection team and standardized processes aims to mitigate trust issues and improve transaction efficiency [5][6] Competitive Landscape - Other platforms like Xianyu are also expanding their B-end merchant offerings and enhancing quality inspection processes, indicating a broader industry trend towards service and efficiency [6][7] - Both Xianyu and 转转 are navigating the challenges of balancing C2C and C2B2C models while addressing consumer trust and transaction efficiency [7][8] Operational Expansion - 转转 has established quality inspection centers in major cities and has a significant number of on-site recovery engineers, indicating a heavy investment in physical assets [9][10] - The company has opened large retail stores to better understand consumer needs and enhance trust through in-person interactions [9][10] Financial Health - 转转 has achieved a positive cash flow since July 2022, indicating a healthy financial status and the ability to invest in service optimization [10]

Core Viewpoint - The company has announced a strategic shift from the "free market" model to the "official verification" business model, aiming to enhance consumer trust and experience in the second-hand trading market [1][3][4]. Group 1: Business Model Transition - The transition from C2C "free market" to C2B2C "official verification" is seen as a necessary evolution for second-hand e-commerce platforms, focusing on user experience and industry growth [3][4]. - The "free market" will be phased out by September 2025, with the closure of personal product listings and trading services, extending customer service for existing orders [4][6]. - The decision to close the "free market" is driven by inherent flaws in the C2C model, which struggles with standardization and scalability, and has led to issues like fraud and disputes [4][5]. Group 2: Consumer Trust and Market Dynamics - Consumer trust in the second-hand market is low due to the lack of a clear value assessment system and concerns over privacy during transactions [6][7]. - The "official verification" model aims to provide a standardized experience, addressing the high trust costs and frequent disputes that have hindered the C2C model's success [5][6]. Group 3: Financial Performance and Growth - The "official verification" business has seen rapid growth since 2019, now representing less than 3% of the platform's overall GMV, indicating a shift in user preference [7][8]. - The company achieved its first profitable year in 2022 and has maintained profitability in subsequent years, reflecting a successful transition to the new business model [8]. Group 4: Infrastructure and Innovation - The company has established a robust service network with three quality inspection centers and nearly 3,000 on-site recovery engineers across over 300 cities [10][12]. - Continuous investment in R&D has led to over 200 patent applications, focusing on quality inspection technology, which includes a comprehensive standard for second-hand mobile phone assessments [12]. Group 5: Industry Standards and Future Outlook - The company is actively participating in the development of national and industry standards, including the first carbon reduction accounting standard for second-hand trading platforms [12]. - The shift to "official verification" represents a significant change in the company's focus from scale and traffic to trust and user experience, paving the way for a more regulated second-hand market [12].