Used goods trading platform Zhuanzhuan announced a strategic deal with Foxconn, aiming to promote the standardization of the trading of used phones.
Under the deal, Zhuanzhuan and Taiwan-based Foxconn will work together in phone quality inspections, supervision and guidance by assigning staff for quality inspections to promote the standardization of used phones. Financial terms of the deal were not released.
Meanwhile, for iPhones recycled in Apple's offline retail stores, Foxconn will also begin quality checks and select those suitable for online sales to sell them via Zhuanzhuan's platform. Foxconn is an original equipment manufacturer for Apple.
Huang Wei, chief executive officer of Zhuanzhuan, told local media that China's used goods market has a great potential; however, the industry lacks standards and is "in chaos". Zhuanzhuan would like to bring revolution to the industry by standardization.
In August 2017, Zhuanzhuan's trade volume reached CNY2.48 billion, of which 31% was contributed by the second-hand mobile phone business. During the second quarter of 2017, the trading of mobile phones on Zhuanzhuan reached 2.1 million units.
Foxconn said that they decided to cooperate with Zhuanzhuan to improve the standardization within the used mobile phone industry. With the strategic cooperation, the two parties will establish a used mobile phone quality inspection system which is in line with Apple's official standards and then sell used iPhones on Zhuanzhuan.