Core Insights - The announcement of shutting down the C2C marketplace by Zhuanzhuan has stirred significant reactions in the second-hand industry, marking a strategic shift towards a focus on the C2B2C model [1][7] - Zhuanzhuan has undergone three major transformations over the past decade, evolving from an e-commerce platform to a circular economy enterprise, and now positioning itself as a new consumption company within the circular economy [1][22] - The decision to close the C2C marketplace is seen as a necessary step to enhance focus on core business areas, particularly the "official verification" model, which has become a key differentiator in the market [5][20] Group 1: Strategic Shift - The farewell to the C2C business was not impulsive but rather a culmination of a five-year process, with a clear business division established in late 2019 [2][4] - The core resources of Zhuanzhuan have increasingly shifted towards the "official verification" model, with minimal staff dedicated to the C2C business by the end [4][5] - The decision to close the C2C marketplace aligns with industry trends, as the growth rate of the C2B2C market has surpassed that of C2C, indicating a consumer preference for more secure second-hand transactions [5][8] Group 2: Operational Challenges and Innovations - Zhuanzhuan faced a survival crisis in 2019, prompting a shift from a light model to a heavier, more industrialized approach to ensure sustainable revenue [8][12] - The establishment of quality inspection centers and the introduction of on-site recovery services have been pivotal in transitioning away from a traditional internet platform model [9][10] - The merger with Zhaoliangji in 2020 provided new insights and strategies, leading to significant growth in online orders and the expansion of on-site recovery services [11][12] Group 3: Market Expansion and Consumer Trust - Zhuanzhuan has successfully expanded its offerings from 3C products to luxury second-hand goods, creating a new consumption logic centered around verified quality [13][18] - The integration with Hongbulin has further enhanced Zhuanzhuan's market presence, allowing for a more efficient product flow across multiple platforms [15][17] - The company maintains a focus on high-value brands and categories that require verification, ensuring that resources are concentrated on products that align with its core business principles [19][20] Group 4: Future Outlook - Zhuanzhuan has established a unique business model and scale effect, with over 1,000 offline stores and extensive coverage of on-site recovery services [22][25] - Continuous investment in technology and user experience improvements is essential for building trust in the second-hand market, which remains a challenging sector globally [25] - The next decade for Zhuanzhuan will focus on maintaining clarity in its strategic focus and delivering unique social value, reinforcing its position in the "trust economy" of second-hand goods [25][22]

Core Viewpoint - The article emphasizes the importance of "user trust" as a central theme for the company over the past decade and as a key factor for its future growth [2][4]. Group 1: Strategic Transition - In September, the company announced the closure of its C2C marketplace, a significant move given that this model was foundational to its business [3][6]. - The CEO highlighted that this decision, while seemingly self-sabotaging, is a necessary strategic focus, marking a shift from C2C to a C2B2C model [3][4]. - The company has undergone three major identity transformations: entering the second-hand market as an e-commerce platform in 2015, transitioning to a circular economy enterprise by the end of 2022, and now fully embracing the "official verification" model [3][4]. Group 2: User Trust and Market Position - The company has built a reputation as a "heavy industry company" by establishing barriers through quality inspections, on-site recycling, and physical stores [4][19]. - Over the past decade, the company has created a new supply that has increased consumer demand for second-hand goods, particularly among those who were previously hesitant to purchase them [4][34]. - The CEO acknowledged that the C2C experience was inferior to competitors like Xianyu, leading to a fundamental conflict with the company's focus on trust [11][13]. Group 3: Operational Changes and Innovations - The company has shifted its resources away from C2C operations, with the majority of its team now focused on the "official verification" process [9][19]. - The establishment of quality inspection centers and the introduction of on-site recycling services have significantly improved user satisfaction, as evidenced by a rise in NPS scores [20][23]. - The company has successfully integrated its online and offline operations, enhancing efficiency and customer experience [29][32]. Group 4: Future Directions - The company aims to expand its offerings beyond 3C products to include luxury second-hand items, reflecting a shift in consumer demographics and preferences [27][32]. - The integration with Hongbulin has been strategically planned to avoid past mistakes, focusing on building a strong brand identity and enhancing operational efficiency [29][30]. - The company continues to invest in technology and service improvements to enhance user experience and maintain its competitive edge in the second-hand market [42][43].

Core Viewpoint - The company is undergoing its largest strategic transformation in ten years, shifting from a C2C model to a C2B2C "official verification" model, which poses significant challenges and risks to its business model [3]. Group 1: Strategic Transformation - The company announced the gradual shutdown of its C2C "free market" business by September 2025, focusing entirely on the "official verification" model [2][3]. - The CEO described the decision as "difficult but necessary," acknowledging that the C2C model had become a breeding ground for online fraud and gray market transactions [3]. Group 2: Business Model Challenges - The company's C2B2C model is caught between two optimal business models: a high-frequency, low-price model and a low-frequency, high-price model, leading to an awkward position [4][5]. - It struggles to achieve the scale effects of low pricing due to high costs associated with quality inspection and physical stores, while also failing to provide the deep service required for high-priced items [5]. Group 3: Cost Burden - The company has entered a heavy asset operation model to support its "official verification" service, employing around 2,500 quality inspectors and nearly 3,000 on-site recovery personnel [7]. - The investment in quality inspection centers, such as the 1.5 billion yuan facility in Qingdao, and the establishment of over 1,000 offline brand stores have led to high operational costs [8]. Group 4: Trust Issues - The attempt to resolve trust issues in second-hand transactions through "official verification" faces challenges due to the non-standard nature of second-hand goods, making it difficult to establish uniform quality inspection standards [9]. - A recent incident highlighted the trust crisis, where a blogger found discrepancies in quality inspection reports for the same phone, leading to significant price differences [10]. - Complaints against the company have exceeded 110,000, primarily concerning inflated valuations and quality inspection issues, raising doubts about the sustainability of its business model [10].

Core Viewpoint - The company, Zhuanzhuan Group, announced the gradual shutdown of its "Free Market" business, focusing instead on the "Official Verification" model to provide a more secure second-hand trading experience for users [1][2]. Group 1: Business Strategy - The decision to close the "Free Market" was described as a difficult but necessary choice, aimed at eliminating the space for online fraud and gray market transactions [1]. - The "Free Market" business accounted for less than 3% of the overall GMV (Gross Merchandise Volume) of Zhuanzhuan, indicating that its closure would not significantly impact the company's overall operations [2]. - The company aims to enhance user experience by focusing on the C2B2C model, which has shown rapid growth and profitability in recent years [2][7]. Group 2: Market Positioning - Zhuanzhuan's shift from C2C to C2B2C reflects a broader trend in the second-hand market, where platforms are increasingly differentiating based on user needs, with Zhuanzhuan emphasizing service quality and reliability [4][5]. - The company has established a complete closed-loop service for second-hand transactions, addressing issues such as information asymmetry and trust, which enhances user experience and transaction efficiency [7]. Group 3: Quality Assurance and Standards - Zhuanzhuan has developed its own standards for second-hand product verification, including a comprehensive 367-step inspection process for mobile phones, ensuring quality and reliability [6]. - The company has set up quality inspection centers across the country and employs over 2,500 quality inspectors to maintain high standards in its offerings [6]. - The focus on standardization in the second-hand market is seen as essential for meeting the evolving demands of consumers who prioritize product quality and service experience [7].

Core Insights - The future of Zhuanzhuan remains within the second-hand industry, shifting focus from an e-commerce platform to a broader C2B2C model [3][21][22] - Zhuanzhuan's CEO Huang Wei emphasizes a strategic retreat from C2C business, which is dominated by competitors like Xianyu [3][4][9] - The company has undergone significant transformation since its inception in 2015, adapting to market pressures and evolving consumer needs [12][14][18] Company Strategy - Zhuanzhuan will gradually close its C2C business line, marking a strategic shift to a 100% C2B2C model, allowing sellers to utilize various methods for transactions [3][4] - The company aims to enhance trust in the second-hand market through official verification services and a focus on user experience [6][18][19] - Zhuanzhuan has invested over 200 million yuan to expand its quality inspection department, establishing three major quality inspection centers across China [19][20] Market Context - The second-hand market in China has surpassed 3 trillion yuan, with intense competition from platforms like Xianyu and Aihuishou [5][14] - Zhuanzhuan's market share in C2C has dwindled to less than 3%, prompting the need for a strategic pivot [6][12] - The global second-hand luxury goods market is projected to grow from $37.2 billion in 2024 to $77.8 billion by 2033, indicating significant potential for Zhuanzhuan's new focus [24] Operational Developments - Zhuanzhuan opened its first large-scale second-hand multi-category circular warehouse store, "Super Zhuanzhuan," in Beijing, aiming to create more consumer engagement [7][23] - The company has acquired Hongbulin, a leading second-hand luxury goods company, to strengthen its supply chain and authentication capabilities [24][26] - Zhuanzhuan's approach includes a blend of online and offline strategies, with plans to explore further opportunities in retail environments [26]