Research On Internet + Used Mobile Phone Recycling Mode

The technological innovation and progress of the hardware and software of mobile phone, coupled with the popularity of 3G and 4G, accelerates the upgrading of smart phones. China has a large number of mobile phone users, correspondingly faces the social and environmental issues that the large number of used mobile phones bring. For a long time, non-standard and faultiness recycle channels has been the problem that besets the recycle and management of used mobile phones. With the development of the Internet, "Internet +" has become the focus of attention. Through deep integration of Internet and traditional industries, there creates new business models. The emergence of "Internet + recycling" mode provides the possibility to solve the existing problems, more and more companies and individuals established the network recycle platforms for used mobile phones. The "Internet + recycling" mode transfers the traditional recycling mode to online mode, and builds a trading platform for consumers, recycle and processing enterprises, makes the recycling mode break through the limitation of time and space, provides convenience for the parties to the transaction.There is a trend of rapid development of used mobile phone network recycle platform in recent years, and that increases the degree of competition among the platforms. Profitability is the foundation of the network recycle platform for survival, but the amount of profits depends on the number of consumers that can be provided targeted services to, and can be attracted on the Internet. "Internet + recycling" mode is still in the stage of development, its recycling process, development strategy and some other aspects needs to be explored and improved continuously. Therefore, this paper studies the recycling process, value chain and profit model of the "Internet + recycling" mode, puts forward the suggestions and trend of network recycling platform of used mobile phone, provides a reference for its development.Firstly, the current situation and existing problems of traditional recycling mode in China are studied, and the advantages of "Internet + recycling" mode are analyzed by comparing with traditional recycling mode. Combining with the existing policies and regulations, we analyzed the necessity of the development of "Internet + recycling" mode.Secondly, we collated and summarized the existing network recycling platform of used mobile phone, and the existing network recycling platform can be divided into three categories, established by the manufacturers, by processors, and by the third party. Then we selected typical representatives of three types of network recycling platform, studied their recycling process and mechanism.Thirdly, due to the fact that network recycling platforms established by third party have occupied a majority among network recycling platforms, many manufacturers not only recycle the products by self-channel, but also commission to the third party platform for recycling. Therefore, the competition degree between the two recycling channels has been a problem that manufacturers need to consider. In considering the scenario that the manufacturer recycles from self-channel and the third party platform, through modeling, we studied the influence of the degree of dual channel competition to the profit, recycle rate, price of the manufacturer, the retailer and the third party platform. We found that if the degree of dual channel competition is intense, the third party platform will be in a state of loss, and needs to take appropriate financing or expand the profitable channel to ensure the operation of the platform. Compared to the centralized decision model, the decentralized decision mode has a profit loss, in order to achieve the maximum profit, we design a revenue and cost sharing contract to coordinate the supply chain.Finally, through the analysis of the internal and industrial value chain and profit model of network recycling platform, we pointed out the difficulties and problems faced by profit model, proposed the corresponding development trend from the perspective of value chain, including internal ability construction, horizontal integration, vertical integration, and value chain expansion. This provides a reference for the development and popularization of the "Internet + recycling" mode, and for the government to regulate the recycling industry.