Alibaba-backed used goods platform Idle Fish investing in content
What happened: China’s top second-hand goods selling platform Idle Fish, known by its Chinese name Xianyu, plans to foster 100,000 key opinion leaders (KOLs), or “players” as the company refers to them, on the platform in the future over the next three years, the company said Thursday. More than one million users post over two million “idle” items on the app per day, according to the company.
The average income of Idle Fish users was RMB 4,000 (around $600) in 2018, up 16% year-on-year.
Why it’s important: Born out of Alibaba’s massive e-commerce ecosystem, Idle Fish started as an online platform allowing China’s consumers to cash in on used goods that “idle” at home. The company’s new initiative highlights a strategic turn in its positioning, mirroring efforts on Taobao to create quality content and build an active community. Used goods selling platforms have gained momentum in China as consumer spending power has increased.
In addition, Chinese consumers have become more open towards purchasing second-hand goods thanks to the popularity of rental economy businesses. However, the used goods resale sector has had its share of problems including counterfeit goods, merchandise quality, and even legal issues (in Chinese) concerning the sale of endangered animals. Idle Fish competitors include Tencent-backed Zhuanzhuan and classifieds platform 58.com.