Huishoubao

About Huishoubao

Huishoubao, whose name translates to "recycling treasures," was established in 2014 and is a key player in China's second-hand smartphone and digital device market. The company was co-founded by He Fan, a serial tech entrepreneur, and Li Xiaoya, who serves as the COO and was previously a product manager at Tencent. They identified a significant market opportunity during the transition from 3G to 4G, anticipating that rapid hardware upgrades would create a booming market for used devices.

Headquartered in Shenzhen, the epicenter of the world's mobile phone supply chain, Huishoubao has developed a comprehensive ecosystem for the consumer electronics lifecycle. The business provides an all-around aftermarket service that includes recycling, remarketing, repair, and leasing of smartphones. The company's primary business model involves an online recycling and shipping service where customers can get a valuation for their used devices. The platform sells refurbished phones to second-hand dealers and salvages usable parts from devices that cannot be resold. Revenue is generated through this B2B model and also through its B2C channel. To address different customer segments, Huishoubao launched its own registered brand, Cola Goods, to sell secondhand handsets directly to consumers. This platform is the exclusive cooperative partner of Taobao.com in the secondhand smartphone category. While users trading in their phones are typically more affluent individuals from major Chinese cities, Cola Goods targets younger consumers in less developed areas.

Operationally, Huishoubao receives millions of devices. Upon receipt, approximately 10-15% are in top condition for immediate resale, while only 5% are discarded for materials recycling. The majority of handsets are stripped for parts by partners to be used in repairs. The company has also deployed phone collection ATMs in Shenzhen which have significantly increased turnover. Financially, Huishoubao has secured substantial investment, including a Series C round from e-commerce giant Alibaba in 2018. This strategic partnership has integrated Huishoubao with major online resources for electronics recycling. The company has also attracted other notable investors such as CITIC Capital, Chengwei Capital, and SMC Capital China.