Core Viewpoint - The second-hand business has significant potential, but the second-hand e-commerce platform faces challenges, leading to strategic shifts in companies like Zhuanzhuan, which is transitioning from C2C to C2B2C models [2][11]. Group 1: Zhuanzhuan's Strategic Shift - Zhuanzhuan has decided to strategically withdraw from its C2C trading business, closing the "Free Market" feature and focusing on "Official Recycling" and "Consignment" services [2]. - The CEO of Zhuanzhuan, Huang Wei, acknowledged that the "Free Market" has facilitated online fraud and disputes, making it difficult to manage [2][11]. - Zhuanzhuan's C2C business now accounts for less than 3% of its total operations, indicating a significant decline in this segment [2]. Group 2: Competitive Landscape - Zhuanzhuan faces stiff competition from Xianyu, which has over 600 million registered users and daily GMV exceeding 1 billion yuan, making it a formidable rival in the second-hand market [4]. - Despite initial backing from 58.com and Tencent, Zhuanzhuan has struggled to maintain user engagement, with active users dropping significantly after aggressive marketing ceased [6][8]. - The competitive dynamics are shifting as Zhuanzhuan pivots to a model that emphasizes quality assurance, but it still needs to build a reliable "traffic pool" to sustain its operations [11][14]. Group 3: Financial Backing and Investments - Zhuanzhuan has received substantial investments, including $200 million from Tencent in 2017 and an additional $300 million in 2019, followed by $390 million in subsequent rounds [6][8]. - The influx of capital allowed Zhuanzhuan to invest heavily in marketing, but user retention has been a challenge once spending decreased [6][8]. Group 4: Quality Assurance and Trust Issues - Following a trust crisis related to inconsistent quality reports, Zhuanzhuan has implemented a "7-day no-reason return" policy and expanded its quality inspection team significantly [12][14]. - The company has established three major quality inspection centers across the country, aiming to enhance consumer trust in its services [12]. Group 5: Future Competition - Zhuanzhuan's shift to a C2B2C model may lead to direct competition with Aihuishou, which has a strong offline presence and has expanded its business model to include various categories of second-hand goods [15][17]. - The offline market is becoming increasingly competitive, with Aihuishou leading in store coverage, while Zhuanzhuan is also expanding its physical store presence [17].

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 is transitioning from a C2C model to a C2B2C model, focusing on quality inspection and service, marking a significant shift in its business strategy [1][4][10]. Business Model Transition - On September 22, the company announced the gradual shutdown of its C2C "Free Market" business, which currently accounts for less than 3% of its overall GMV [4][9]. - The C2B2C model, which has been growing rapidly and achieving scalable profitability for several years, will become the core focus moving forward [4][5][11]. - The CEO emphasized the need for the company to reassess its capabilities and the user experience in the C2C space, leading to the decision to discontinue the "Free Market" service [4][7]. Quality Inspection and Service Focus - The company aims to establish itself as a reliable intermediary in the second-hand market, with a strong emphasis on quality inspection through its "Official Inspection" service [5][6]. - A dedicated quality inspection team and standardized processes have been implemented to address issues of trust and information asymmetry in second-hand transactions [6][7]. Competitive Landscape - The shift in focus is partly a response to competitors like Xianyu, which have begun integrating more B-end merchants and enhancing their quality inspection processes [8][9]. - The company recognizes the importance of building trust in second-hand transactions, particularly given the non-standard nature of second-hand goods [7][9]. Heavy Asset Investment - The company is increasingly investing in heavy assets, including quality inspection centers and physical stores, to enhance its service offerings [10][11]. - As of now, the company has established three quality inspection centers and employs over 2,500 quality inspectors, with a nationwide presence for its collection services [10][11]. Financial Health and Strategy - The company has entered a phase of positive financial development since July 2022, achieving profitability and maintaining a positive cash flow [11]. - The CEO stated that the company will continue to invest strategically in key areas while ensuring financial health and sustainability [11].

Core Insights - The company, Zhuanzhuan Group, announced the gradual shutdown of its "Free Market" business to focus on its "Official Verification" model for second-hand transactions [1] - CEO Huang Wei acknowledged the difficult decision to close "Free Market," citing issues with online fraud and disputes between users as key reasons [1] - The "Official Verification" business has seen significant growth since 2019, now representing the mainstream choice for users on the platform, while "Free Market" accounts for less than 3% of the overall GMV [1] Company Strategy - Zhuanzhuan will concentrate efforts on enhancing the "Official Verification" business model, which offers more secure options for second-hand transactions beyond "person-to-person" exchanges [1] - The decision to close "Free Market" reflects a strategic shift towards improving user experience and reducing risks associated with fraudulent activities [1] Business Performance - Since 2019, the "Official Verification" business has experienced rapid growth, becoming the primary transaction method on the Zhuanzhuan platform [1] - The diminishing role of the "Free Market" segment is highlighted by its contribution of less than 3% to the platform's total GMV [1]

Core Insights - The company announced the gradual shutdown of its "Free Market" business to focus on its "Official Verification" model for second-hand transactions, which offers users a more secure alternative to peer-to-peer trading [1] - The CEO acknowledged the difficult decision to close "Free Market," citing issues with online fraud and disputes between users as significant challenges [1] - Since 2019, the "Official Verification" business has seen rapid growth and now represents less than 3% of the platform's overall GMV (Gross Merchandise Volume) [1]

Core Viewpoint - The company announced the gradual shutdown of its "Free Market" business, focusing instead on the "Official Verification" model for second-hand goods, ensuring a smooth transition for users [1][3][9] Summary by Sections Business Transition - The "Free Market" business, which operates on a C2C model, will cease operations starting September 24, 2025, with the closure of the product listing entry and the gradual removal of browse and purchase options by September 29, 2025 [1][3] - Customer service and after-sales support for orders placed during the transition will be extended for one month, with full closure of these services by October 31, 2025 [3][9] Rationale for Change - The decision to shut down the "Free Market" was described as difficult but necessary, as it has been associated with issues such as online fraud and disputes between buyers and sellers [3][9] - The company aims to enhance its "Official Verification" services to meet the evolving demands of consumers for quality and reliable second-hand transactions [9] Future Focus - The company will concentrate on its core C2B2C business, which has shown rapid growth and has achieved scalable profitability over the years [9] - The shift towards "Official Verification" is intended to standardize non-standard products and provide users with a more certain and satisfactory experience in second-hand trading [9]

Core Insights - The company, Zhuanzhuan Group, announced the gradual shutdown of its "Free Market" business to focus on its core C2B2C model, emphasizing the "Official Verification" service for second-hand transactions [1][5][2] - The "Official Verification" service has seen significant growth since its inception in 2019, becoming the mainstream choice for users on the platform, while the "Free Market" segment now accounts for less than 3% of the overall GMV [1][2] - The decision to close the "Free Market" is aimed at enhancing user experience and addressing the increasing consumer demand for quality and reliable second-hand products [1][5] Business Strategy - Zhuanzhuan Group aims to provide a more secure and standardized second-hand trading experience by focusing on the "Official Verification" model, which seeks to transform non-standard products into standardized offerings [1][5] - The company has established a closed-loop service for hundreds of product categories, including recycling, quality inspection, sales, shipping, and after-sales support, with a commitment to 7-day no-reason returns and 365-day warranty services [2] - The company achieved its first profitable year in 2022 and has maintained profitability for several consecutive years, indicating a successful business model transition [2] Transition Plan - The "Free Market" service will begin to be phased out on September 29, with a complete shutdown scheduled for October 31, 2023 [7] - Customer service and after-sales support for orders placed during the transition period will be extended by one month to ensure user concerns are addressed adequately [7] - The company expresses regret for the impact on "Free Market" users and commits to improving the "Official Verification" service to enhance user trust and satisfaction [5][6]