Jun 06, 2019 (China Knowledge) - Chinese online e-commerce giant, JD.com, in a bid to reap profits from the used smartphone market amid a maturing digital landscape, spent USD 500 mln to purchase an undisclosed stake in Aihuishou, a platform for recycling used smartphones.
Aihuishou features both online and offline experience to recycle smartphones. Apart from featuring a mobile application, Aihuishou manages about 300 physical locations throughout Mainland China. Aihuishou will pay smartphone owners for their used phones and subsequently resells these phones after cleaning and testing them.
JD.com did not disclose the specific amount of stake held but the e-commerce giant will be the leading shareholder of Aihuishou.
Apart from second-hand app Aihuishou, JD.com has Paipai secondhand, a flea-market app within the group as well. Investment in Aishuishou will further strengthen Paipai’s extensive lineup of secondhand consumer electronics, apparel, and other hardware.
However, there are also views that the online second-hand trading market is currently very competitive. Strong competitors include Xianyu of Alibaba Group Holding, and the Zhuangzhuang of 58.com. This is not surprising since the e-commerce market growth has faced slowdown.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI