As an absolute leader in the field of idle economy, Xianyu has successfully solved the pain points of high release threshold, lack of trust and inefficient matching in second-hand transactions with core functions such as “one-click resale”, “circle community” and “credit system”. This article provides an in-depth analysis of how Xianyu has evolved from a tool-based platform to an emotional community and business ecology, revealing the deep insights into user needs and the continuous iteration of product logic behind it.
In 2024, Xianyu’s monthly active users will exceed 350 million, with a cumulative transaction of more than 12 billion idle items, accounting for 65% of China’s idle economy market share, becoming the undisputed absolute leader in the industry. When we disassemble the product evolution history of Xianyu, we will find that its goodness is not accidental – it captures the human needs behind idleness, uses tools to simplify transactions, community connections emotions, and ecological amplification of value, and reconstructs the circulation logic of second-hand items. All of this is based on in-depth insights into user needs and continuous iteration of features.
1. Underlying logic: positioning upgrade from processing idle to redistribution of surplus value
1. Grasp the core pain point of idleness: hidden assets after consumption upgrades
With the upgrading of consumption, idle items in Chinese households have changed from useless to unactivated assets. According to the “2024 China Idle Economic Development Report”, the average Chinese household has 16 idle items per household, with a total value of more than 2.5 trillion yuan. However, the three major pain points of traditional second-hand trading have always restricted the development of the industry:
- Posting trouble: It takes more than 15 minutes to take photos, write descriptions, and fill in information;
- Lack of trust: Buyers are worried about buying fakes, sellers are worried about not receiving money;
- Matching inefficiency: The personalization of second-hand items makes it difficult to accurately connect supply and demand (for example, 90% of new strollers are difficult to find newly pregnant mothers).
The emergence of Xianyu is a precise solution to these pain points. It turns idle transactions from a hassle to a hassle, making users willing to share idle items – because it’s not just about the item but also about respecting the surplus value.
2. Differentiated positioning: complementary to new e-commerce, not competitors
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Unlike Taobao and JD.com’s new e-commerce, Xianyu is positioned as a residual value redistribution platform. It does not do an incremental market (selling new things), but a stock market (selling old things), which realizes the efficient circulation of resources by connecting idle people and people who need idleness. The advantages of this positioning are:
- User demand is stable: As long as there is consumption, there will be idleness, and the demand will never disappear;
- High barriers to competition: The core of new e-commerce is the supply chain, and the core of idle e-commerce is the user ecology (two-way accumulation of buyers and sellers) – as of 2024, the overlap rate between buyers and sellers in Xianyu will reach 45%, forming a closed loop of selling idle → buying idle;
- The social value is outstanding: In line with the trend of low-carbon environmental protection, allowing idle items to continue their lives (according to Xianyu’s 2024 data, every 1 idle item traded is equivalent to reducing carbon emissions by 0.6 kg).
2. Core function: use minimalist tools to solve trading pain points
1. One-click resale: A god function that lowers the publishing threshold
One of the core functions of Xianyu is one-click resale – products purchased by users from Taobao and Tmall can be resold directly on Xianyu without re-uploading pictures, filling in descriptions, and selecting categories. The launch of this feature has shortened the idle time of posting from 15 minutes to 20 seconds, and the number of releases in 2024 has increased by 180% compared to 2023.
For example, if a user buys a piece of clothing and feels that it is not suitable after trying it on, he can directly click on a one-click resale, and the system will automatically import Taobao’s order information (picture, description, size, purchase time), and the user only needs to modify the price to publish it. This seamless experience makes reselling idle a breeze – as easy as taking old clothes from your closet and hanging them on a hanger at the door.
2. Circle: Accurately matched community trading scenario (original fish pond upgraded function)
In 2021, Xianyu upgraded the fish pond to a circle, retaining the core logic of the vertical community, but adding functions such as topic tags, essence content recommendations, and offline event registration, so that users can more easily find like-minded people and exchange idle experiences. For example, Hangzhou second-hand book circle pet supplies idle circle Beijing rental idle circle, users can in the circle:
- Publishing idle: When the stroller is posted in the mother and baby circle, the system will give priority to newly pregnant mothers (according to 2024 data, the transaction conversion rate in the circle is 50% higher than the average of the platform);
- Engage in topics: For example, what are the stories of your idle items? Users can share their idle experiences and increase interaction;
- Sign up for offline events: For example, in the Hangzhou West Lake idle market, users can set up stalls with idle items and trade face-to-face with other users.
The value of the circle is not only accurate matching, but also the enhancement of trust – most of the users in the circle are like-minded people, and the more interaction, the more trust will naturally increase. According to Xianyu’s 2024 survey, 70% of users said they would prefer to buy idle items in the circle because they feel that the other person and themselves are the same kind of person.
3. Credit system: the key weight to solve the problem of trust
The core contradiction of second-hand trading is trust, and Xianyu has established a full-link trust mechanism through the four major systems of sesame credit score + real person authentication + transaction evaluation + security guarantee:
- Sesame credit score: Users can see the other party’s sesame credit score (for example, 750 points or more means good credit), and 85% of users will check the other party’s sesame credit score in 2024;
- Real person certification: Sellers need to upload ID card photos for real-person authentication to reduce fake accounts (real-person authentication rate will reach 92% in 2024);
- Transaction Evaluation: Users can score and write reviews for sellers, and the reviews will be displayed on the seller’s homepage, and 60% of users will refer to the reviews to choose transactions in 2024;
- Safety and security: Xianyu has launched a safe purchase service, covering scenarios such as authenticity identification, quality problems, and logistics damage, and accounting for 78% of safe purchase orders in 2024.
This credit system makes Xianyu’s fraud rate much lower than that of other second-hand platforms (only 0.02%), and the user’s trust score for Xianyu in 2024 will reach 4.8/5 out of 5.
3. Community ecology: emotional upgrade from transaction to connection
1. Idle Stories: Give items emotional memories
Xianyu’s idle story function allows users to write the story behind the item when posting idle. Like what:
- This laptop was bought by me when I was in college, and I wrote 3 papers with me, and now I have a new computer, hoping that it can help those in need;
- I wore this dress when I got married, and I only wore it once, hoping to find someone who likes it and continue its happiness.
These stories make idle items no longer inanimate commodities, but carriers of emotions. According to Xianyu’s 2024 survey, 75% of users will buy idle items because of the story, and 60% of users will reply to the seller with a thank you after receiving the item. For example, a user bought an old guitar, and the seller attached a note: This guitar has accompanied me through my college youth, I hope you can continue to play your favorite songs with it, and the user replied: I will, thank you for giving it a new life. This emotional connection has turned Xianyu from a trading platform into an emotional community.
2. Offline Circle Market: Extend online relationships to offline
Xianyu’s offline circle market is to move online circles to offline, allowing users to trade and communicate face-to-face. For example, in the Hangzhou West Lake Circle Market and the Shanghai Bund Circle Market, users can set up stalls with idle items and chat and exchange items with other users. The value of this offline event lies in:
- Enhance user stickiness: Users who have participated in the offline market in 2024 have a retention rate of 35% higher than those who did not;
- Expand the influence of the platform: The offline market has attracted a lot of non-user participation, and 20% of new users in 2024 will learn about Xianyu through the offline market;
- Enrich community culture: Users can share idle skills on the market (such as how to disinfect second-hand clothes and how to repair old furniture) to form an idle culture – in 2024, the idle transformation tutorial of the Xianyu community will be played more than 1 billion times.
3. Xianyu Community: An extension from trading to lifestyle
Xianyu’s community is not only a trading place, but also a lifestyle sharing platform. Users can post in the community:
- Idle transformation tutorial: For example, using old jeans to make a backpack and old cardboard boxes to make a cat nest;
- Idle Strategy: For example, how to quickly sell idle mobile phones and how to choose second-hand luxury goods;
- idle story: For example, my idle items travel around the world.
These contents turn idleness into an attitude towards life – not that you can’t afford to buy new ones, but that you like the old and have warmth. According to Xianyu’s 2024 data, 45% of users believe that using idle items is a fashion, and 30% of users will use Xianyu more frequently because of community content.
4. Business closed loop: value amplification from tools to ecology
1. Xianyu Coin: A virtual currency that incentivizes users to be active
Xianyu’s Xianyu Coins are a virtual currency that users can obtain by posting idle, interacting, and completing tasks (for example, posting 1 idle piece to get 100 Xianyu Coins for 1 comment). Idle Fish Coins can be used to:
- Exchange merchandise: For example, 1000 idle fish coins for 1 mobile phone holder 2000 idle fish coins for 1 power bank;
- Deduct freight: For example, 500 idle fish coins deduct 5 yuan for freight, 1000 idle fish coins to deduct 10 yuan for freight;
- Participate in activities: For example, use idle fish coins to sign up for offline markets and exchange idle fish coins for idle transformation tutorials.
The value of Xianyu Coin lies in:
- Incentivize users to be active: In order to obtain idle fish coins in 2024, users will post idle coins 25% more frequently than in 2023;
- Increase user stickiness: Users who accumulate more than 10,000 Xianyu Coins in 2024 will have a retention rate of 90%;
- Facilitating transactions: Users who use Xianyu Coins to offset shipping costs in 2024 will have a 30% higher transaction conversion rate than those who do not use them.
2. Xianyu Youpin: The official endorsement that addresses quality concerns
In response to users’ concerns about the quality of second-hand items, Xianyu has launched Xianyu Premium – officially certified second-hand goods, covering digital products, luxury goods, furniture and other categories. Xianyu Youpin’s products have undergone strict quality inspection, guaranteeing more than 90% of the new products, and providing 7-day no-reason return and 1-year warranty service.
The launch of Xianyu Youpin allows users to buy second-hand with confidence, attracting many users who are afraid of trouble. According to Xianyu’s 2024 data, the transaction volume of Xianyu Premium will account for 20%, and the user repurchase rate will be as high as 45% – for example, some users bought an iPhone 13 of Xianyu Youpin, and the evaluation after use: The price is 2,000 yuan cheaper than the new product, which is too worthwhile.
3. Vertical category expansion: meet more idle needs
Xianyu not only does all categories of idleness, but also expands vertical categories, such as Xianyu rents, second-hand cars, and pets. These vertical categories provide more specialized services tailored to the specific needs of users:
- Rent a house with idle fish: Users can post idle housing listings, or they can find rental houses, and the platform provides services such as housing certification, electronic contract rent custody and other services (the transaction volume of Xianyu rental houses will account for 15% in 2024);
- Idle fish second-hand cars: Users can post idle second-hand cars, or they can find second-hand cars, and the platform provides vehicle condition inspection, transfer services, warranty services, etc. (the transaction volume of Xianyu second-hand cars will account for 10% in 2024);
- Idle fish pets: Users can post idle pet supplies, they can also find pets, and the platform provides pet certification, vaccine records, health tests, etc. (the transaction volume of Xianyu Pets will account for 5% in 2024).
The expansion of these vertical categories has changed Xianyu from an idle trading platform to an idle life service platform, meeting more idle needs of users.
5. User perspective: Why can’t users do without Xianyu?
1. Convenience: Publishing and trading are simple
The first reason why users use Xianyu is convenience. Like what:
- One-click resale makes publishing idle convenient;
- Circles make finding buyers precise;
- The credit system makes transactions reassuring.
According to Xianyu’s 2024 survey, 70% of users believe convenience is the main reason they use Xianyu.
2. Cost-effective: Buy better for less
The cost-effectiveness of second-hand items is an important reason to attract users. Like what:
- 90% of the new iPhone 13 sells for 3,000 yuan on Xianyu, which is 2,000 yuan cheaper than the new product;
- The brand new stroller is sold for 500 yuan on Xianyu, which is 300 yuan cheaper than the new product;
- 90% of the new treadmill is sold for 800 yuan on Xianyu, which is 1,200 yuan cheaper than the new product.
According to Xianyu’s 2024 data, 60% of users believe that cost-effectiveness is the main reason they buy idle items.
3. Community: Find like-minded individuals
Xianyu’s community allows users to find like-minded individuals. Like what:
- In the second-hand book circle in Hangzhou, users can exchange reading experience with other book friends;
- In the pet supplies idle circle, users can share their pet experience with other pet owners;
- In the idle transformation community, users can share their transformation skills with other craft enthusiasts.
According to Xianyu’s 2024 survey, 45% of users believe that community interaction is an important reason for them to use Xianyu.
4. Emotion: Give idle items a new lease of life
Another reason why users use Xianyu is emotion. Like what:
- Sell your old guitar in the hope that it will find someone who loves music;
- buy someone else’s old notebook and think it has a story;
- Chat with the seller and discover that you share a common interest.
According to Xianyu’s 2024 survey, 40% of users believe that emotional connection is the reason they use Xianyu.
6. Comparison of competitive products: What are the core advantages of Xianyu?
1. Comparison and turn: The community attributes are stronger
Zhuanzhuan is Xianyu’s main competitor, focusing on second-hand trading of digital products. But Xianyu’s community attributes are stronger:
- Xianyu has community functions such as circles, idle stories, and offline markets, but Zhuanzhuan does not;
- Xianyu’s user interaction rate is 55% higher than that of Zhuanzhuan (2024 data);
- Xianyu’s non-digital idle transactions accounted for 35% higher than Zhuanzhuan (2024 data).
2. Compared with Pinduoduo second-hand channels: the ecology is more complete
Pinduoduo’s second-hand channel is a supplement to new product e-commerce and has not formed an independent ecosystem. And the ecology of Xianyu is more perfect:
- Xianyu has functions such as one-click resale circle Xianyu Youpin, covering the whole process of release-matching-trading-after-sales;
- Xianyu’s users are both buyers and sellers, forming a two-way cycle, while Pinduoduo’s second-hand channel is mainly released by sellers and purchased by buyers;
- Xianyu’s community culture is stronger, while Pinduoduo’s second-hand channel has no community function.
3. Compare Taobao second-hand: brand positioning is clearer
Xianyu’s predecessor was Taobao second-hand, and in 2014 it became independent as Xianyu. After independence, Xianyu’s brand positioning is clearer:
- Taobao second-hand is a subsidiary function of Taobao, while Xianyu is an independent idle economic platform;
- Taobao’s second-hand users are mainly Taobao users, while Xianyu’s users cover all people with idle needs (non-Taobao users will account for 55% in 2024);
- Taobao’s second-hand functions are simpler, while Xianyu’s functions are richer.
Conclusion: The good thing about idle fish is that it understands users and idleness
Xianyu’s success is not because of what it does, but because it understands what it understands——It understands the idle pain points of users, the emotional value of idle items, and the ecological logic of the idle economy。
From one-click resale to circles, from credit system to idle stories, every function of Xianyu is to solve the real needs of users; From tools to communities, from communities to ecology, every step of Xianyu’s evolution is to amplify the value of idleness.
In the future, as the idle economy continues to grow, Xianyu is expected to become a super platform for the global idle economy. And its core competitiveness is always to understand users and idle – this is also the common password of all good products.
