Lightning Market is expanding its business field this year by operating used phone rentals.
On the 8th, Lightning Market announced that it plans to support the smooth distribution and use of used phones in the first half of this year by introducing improved used phone market price inquiry and purchase services, while seeking cooperation with various used phone related operators. Previously, Lightning Market last year launched a’Naephone Price’ service for inquiring and trading used smartphone prices, and then signed a business transfer agreement with Good Telecom’s Used Phone Division.
Reasons for strengthening the used phone business
The reinforcement of the used phone business at Lightning Market is to preemptively respond to the increasing demand for used phones. It is also part of a strategy to grow it as a core business in the digital business sector. Lightning Market recorded 1 million views within 50 days of launch after introducing the’Naephone Price’ service in the fourth quarter of last year. 82% of customers who completed the sale after receiving a quote after inquiring the market price, received favorable responses from consumers considering used smartphone sales. Since the launch of the service, sales of the used phone business have also grown 8 times in three months.
In particular, by signing a business transfer contract for the used phone business of Good Telecom, Lightning Market is able to create significant synergy with the strong online trading platform. Good Telecom is a distributor specializing in buying and selling used phones that has grown by securing various sales channels such as lightning market, affordable phone operators, open markets, and social commerce.
Through the acquisition, Lightning Market has secured the operational capabilities that Good Telecom has built so far, including accurate used phone market price data, high-quality quantities in the form of rental contracts, inspection know-how, and a cooperation model with MVNO (cheap phone operator). Since the acquisition of Good Telecom’s second-hand phone business, Lightning Market’s’digital business division’ sales increased more than eight times compared to the average of each three months before and after the acquisition, and the number of used phones distributed in Lightning Market also tripled during the same period.
Meanwhile, as digital content consumption increases and consumers’ demand for mobile products increases, related individual transactions at the Lightning Market are also steadily increasing. In 2020, the amount of mobile transactions including smartphones traded in the Lightning Market increased by 35% compared to 2019.
Head of Digital Business Division Pyo Byung-hoon said, “The service that solves the anxiety factors such as accurate value calculation of used smartphones as well as simple one-stop service was welcomed by users. He said, “We have secured professional capabilities that encompass the entire phone transaction, and based on this, we plan to make efforts to activate the used smartphone transaction that consumers can trust.”