Huge Potential in Mobile Phone Recycling Market: Platforms Like Xianyu and Zhuanzhuan Drive the Boom of Second-hand Phone Trading

Huge Potential in Mobile Phone Recycling Market: Platforms Like Xianyu and Zhuanzhuan Drive the Boom of Second-hand Phone TradingData from the China Circular Economy Association shows that the average lifespan of a mobile phone is about 2.2 years

Huge Potential in Mobile Phone Recycling Market: Platforms Like Xianyu and Zhuanzhuan Drive the Boom of Second-hand Phone Trading

Data from the China Circular Economy Association shows that the average lifespan of a mobile phone is about 2.2 years. In the past five years, China has generated over 400 million discarded mobile phones annually, resulting in a stockpile exceeding 2 billion units. However, in China, approximately 54.2% of discarded phones are kept idle by consumers, with only about 5% entering professional recycling platforms or "trade-in" programs. This situation highlights the enormous potential of the mobile phone recycling market and the urgency for a more comprehensive recycling system.

According to the Southern Daily, Zhan Yi, the head of Xianyu's mobile phone and digital sector, stated that the secondhand phone trading is "crucial" to the platform. "The transaction volume of secondhand phones accounts for about 15% of the platform's overall transaction volume, making it our top category." Chen Xiaocheng, the strategic head of Zhuanzhuan Group, also mentioned that among the top 5 cities with the highest transaction volume (delivery cities), Guangdong holds 3 spots: Shenzhen, Guangzhou, and Dongguan. "Guangdong is not only a major consumer province for mobile phones but also the undisputed leader in the secondhand phone trading market."

Wang Yongliang, the executive president of Wanwu Xinsheng (Aihuishou) Group, introduced that in 2023, the group's entire platform achieved 32.3 million transactions for secondhand goods, with the majority being secondhand phones. This data clearly indicates that secondhand phone trading has become a significant market sector and has gained increasing recognition from consumers.

It's worth noting that mobile phone recycling not only alleviates resource scarcity but also generates considerable economic benefits. Zhou Jing, the president of the Hunan Provincial Circular Economy Research Association, once mentioned that "a mobile phone contains over 60 types of raw materials, including precious metals like gold, silver, palladium, and rhodium, and its materials can be recycled for reuse." It is estimated that each ton of discarded mobile phones can yield about 200 grams of gold, 2200 grams of silver, and 100 kilograms of copper.

Currently, there are three main channels for mobile phone recycling in China:

• Manufacturer Recycling: Mobile phone manufacturers typically offer "trade-in" programs, encouraging consumers to exchange their old phones for new ones and then recycle the old phones.

• Sales Platform Recycling: E-commerce platforms like JD.com and Suning.com have launched discarded phone recycling services, providing convenient channels for consumers.

• Corporate Recycling: Some professional recycling companies purchase discarded phones at high prices, disassemble and process them, and extract valuable metals and other materials.

However, the current mobile phone recycling system still faces several challenges, such as:

• Low Recycling Rate: Despite the vast number of discarded phones, the proportion that actually enters legitimate recycling channels remains low. A large number of discarded phones are left idle or discarded carelessly, leading to resource waste.

• Low Recycling Prices: Some recycling companies, in pursuit of profits, depress purchase prices, discouraging consumers from selling their old phones to them.

• Complex Recycling Process: Some recycling channels lack well-defined processes and services, causing consumers to encounter various problems during the recycling process, reducing their enthusiasm for recycling.

To promote the development of the mobile phone recycling industry, governments and relevant agencies need to take corresponding measures, such as:

• Improving the Recycling System: Establish a more comprehensive mobile phone recycling system, encouraging more companies to participate in the recycling industry, increasing recycling channels and service outlets, and enhancing recycling efficiency.

• Developing Industry Standards: Develop unified industry standards to standardize the recycling process, improve recycling efficiency, and ensure that the recycling process does not pollute the environment.

• Raising Recycling Prices: Encourage companies to raise the purchase prices of discarded phones, stimulating consumer participation in recycling.

• Strengthening Publicity: Increase publicity about mobile phone recycling, enhancing public awareness about the practice and fostering a good environmental consciousness among consumers.

With the growing public environmental consciousness and the flourishing secondhand phone trading market, the mobile phone recycling industry is poised for new development opportunities in the future. Through joint efforts from governments, businesses, and consumers, we can optimize mobile phone recycling, achieve resource circular utilization, and promote sustainable green development.