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China’s JD.com enters second-hand market, challenging Alibaba’s Xianyu and Tencent-backed Zhuanzhuan
 
Screenshot of Paipai Secondhand homepage
 
China’s online retailer JD.com has recently launched an online platform called Paipai Secondhand to provide second-hand product transaction services, according to Chinese media.
 
Industry insiders said JD.com’s Paipai Secondhand will increase the competition in the rising Chinese second-hand market which is now estimated to be worth about 40 billion yuan, according to the 2016 report of the State Information Center of China. And the number of Chinese users trading second-hand products will reach close to 40 million by the end of 2017, predicted Qeust Mobile.
 
Paipai Secondhand’s rivals now include Alibaba’s Xianyu (闲鱼) launched in 2012 and Tencent’s Zhuanzhuan (转转) launched in 2015. Both platforms have mobile app versions for users. According to 36Kr, Xianyu now has 19.61 million monthly active users, and Zhuanzhuan has 17.47 million. Zhuanzhuan was introduced by 58 Tongcheng, China’s version of Craigslist, and received $200 million investment from Tencent in April this year. The user number of Zhuanzhuan broke 100 million in 2017, and its total transaction volume surpassed 21 billion yuan, increasing by 200% from the previous year, according to the China Newsweek.
 
JD.com, which was founded by Liu Qiangdong in 1998 and later renamed in 2013, has an advantage in the so called 3C market, known as computer, communication and consumer electronics, and provides deliveries using its own logistics system. 
 
According to the South China Morning Post, JD.com has said it aims to provide a better experience for its merchants by offering services like product recycling, quality assessment and logistics through Paipai Secondhand, so that both merchants and customers can have peace of mind when buying and selling on the platform.
 
Paipai Secondhand allows both individual users and merchants to list their products on the platform, which include luxury, mobile phone, piano, computer, clothes as well as books, according to Wang Yongliang, manager of Paipai Secondhand. 
 
With the help of JD.com which has a large user base, Paipai Secondhand said its service can originally cover 266 million users from the PC-end and mobile app of JD.com. 
 
Different from Xianyu and Zhuanzhuan, Paipai Secondhand has also established a valuation system which helps users set the price of second-hand goods. And the JD logistics will pick up the products from the sellers based in Beijing, Shanghai, Guangzhou and 125 other cities in China before 15:00 on the same day and go through the goods identification process.
 
On December 21 the day Paipai Secondhand was released, JD.com also said it plans to invest up to 1 billion yuan within three years to build up an ecosystem of merchants and to nurture around 100 “star merchants” with advertising and promotional support. According to a statement, more than 150 merchants have registered their accounts on the platform.

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