Selling only beautiful "3-star smartphones" Strategy of used smartphone service "Nikosuma": Carefully select smartphones that Japanese people like using ITOCHU's network (1/2 page)

The revised Telecommunications Business Law in October 2019 regulates discounts on mobile phones, and the sales ranking of mobile phones is such that easy-to-buy middle-range smartphones occupy the top position. In addition, the attention of used terminals is increasing worldwide, and several research companies predict that the used smartphone market will continue to expand in the future.

In Japan, Reuse Mobile Japan (RMJ) was established in 2020 for the purpose of sound development of the used communication terminal market and consumer protection, and currently more than 20 companies are registered as members. RMJ has put together guidelines for buying and selling safe and secure equipment, and has established a "reuse mobile operator certification system" that gives endorsement to companies operating in accordance with the guidelines.

On the other hand, some companies do not participate in RMJ and set their own standards to provide used smartphones. Belong, which operates the used terminal sales site "Nikosuma," is one of them. This time, we interviewed Daisuke Inoue, President and CEO of Belong. We asked him about the origin of Nikosuma, the content of the service, and his commitment.

The used smartphone had an underground image

Belong, which runs Nikosuma, is a young company that was just established in February 2019. Mr. Inoue, the president of ITOCHU Corporation, and Mr. Takeshi Shimizu, the vice president and COO of ITOCHU Corporation, are also employees of ITOCHU Corporation.

Both of them have been involved in the mobile industry for many years, but since around 2014, they have been stationed in the United States as employees of ITOCHU Corporation at about the same time. At that time, he saw the rise of the used smartphone market and discussed whether the ITOCHU Group should also work on it. However, at that time, the "iPhone 5s" and "iPhone 6" were on sale. The evolution of terminals is fast, and the models two generations ago that appeared in the second-hand market had a functional problem that they could not support OS updates.

"Used smartphones are still an underground image, and I wasn't sure if Japanese people would really buy used smartphones. I made a pilot site with Shimizu, but I thought it was a little early in Japan." (Inoue Mr)

By the time Mr. Inoue returned to Japan in 2016 and Mr. Shimizu returned to Japan in 2018, the flea market app "Mercari" had taken root, and the barriers to the reuse of Japanese people had become lower. In addition, the evolution of smartphones has calmed down, and it has become possible to upgrade the OS version for 4 to 5 years if it is an iPhone. Furthermore, with the help of the Ministry of Internal Affairs and Communications, communication and terminals were separated, making it easier to distribute used smartphones. An environment that can be used even if it is used has been set up in Japan.

"I often use the analogy of gasoline and cars. Gasoline has a completely different industry structure in the form of'ahamo'and'povo', but cars are once every two or three years, from young people to the elderly. Replace with a 100,000 yen terminal. It's like a mysterious market where everyone rides a new BMW. Even if everyone doesn't go for reuse, "I'm fine with a new light car." People who say "I like a used BMW" want to bring various variations to the world of devices, such as having them buy it with a smile. "(Mr. Inoue)

Procure handsets through channels around the world

The actual start of this smartphone is 2019. At first, both of them were thinking of retiring and starting a company, but with the understanding of their bosses at the time, it became an in-house venture. A year later, in August 2020, Itochu officially issued a press release.

ITOCHU's position as a 100% group company contributes significantly to the procurement of handsets.

"There are expatriates around the world who are familiar with mobile phones. In the big part, we use channels all over the world, such as Asia centered on the United States and Hong Kong, and recently the Middle East centered on Europe and Dubai. A major feature is that we procure terminals that meet Japanese laws and standards and sell them directly to end consumers through our website. "(Mr. Inoue)

In the second-hand market, where many underground players are said, it is not easy to procure terminals that meet Japanese laws and standards. Inoue says it is important to work with a reliable partner.

"There are raw ITOCHU people in each country, and we research and obtain raw information every day. When we make a transaction for the first time, we do not purchase until we see the actual thing. The function of such a trading company is very important. Of course, if we can establish a proper relationship of trust both in Japan and overseas, we will have terminals with the quality that Japanese customers want. However, we cannot establish a relationship of trust overnight. "(Mr. Inoue)

Mr. Inoue recalled that although the quality standards of Nikosuma became understood by partners and the purchase was stable, it was difficult at first due to the arrival of unskilled terminals.

In Japan, it is also developing a purchase service from general users under the name of "Belong purchase". In April 2020, it will work with IIJmio Mobile Service, an Internet initiative. IIJmio users can access the Belong purchase page from the link on the IIJmio site.

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