Zhang Zhijun and Luo Qian, two post-95s college graduates in Wenshan, Yunnan, founded Chuanyuan Renewable Resource Recycling Co., Ltd. in early October this year, specializing in used clothing collection and reselling to export companies in Kunming. As of November, the two had collected about 15 tons of used clothing, with the first batch of about 9 tons sorted and sold in Kunming, currently earning over 10,000 yuan a month and achieving profitability.

Key Points

  • Zhang Zhijun and Luo Qian launched used clothing recycling in early October 2022 in Dashidong Village, Xinping Street, Wenshan, with warehouse rent of about 20,000 yuan per month (including investment in a second-hand van and electronic scale)
  • Purchasing at 0.3 yuan/kg for winter clothing, 1 yuan/kg for summer clothing, and 0.5 yuan/kg for mixed loads, with door-to-door collection provided; about 15 tons collected cumulatively since October
  • In early November, the first batch of about 9 tons of used clothing was sold to an export company in Kunming; after washing, disinfection, and ironing, it is mainly exported to African countries without textile industries

The two were high school classmates who both studied engineering construction in college and worked at construction sites after graduation. Not wanting to stay in their original industry, they discussed starting a business at a gathering and believed that used clothing recycling in Wenshan was still a blank space with low barriers to entry, so they learned about the industry's current situation from friends and decided to enter. Initial investment included renting a warehouse along a road convenient for parking, a second-hand van, and an electronic scale. The collected used clothing was sorted by summer/winter style, condition, and material, and damaged clothing was also packaged by category and sent to Kunming for further processing. Market promotion mainly relied on online channels such as Douyin and WeChat, which also let more residents know that used clothing can be sold for money.

To make it easier for residents to sell, door-to-door service is provided in addition to receiving goods at the warehouse. During one door-to-door visit, resident Ms. Ma weighed and sold used clothing she had sorted in advance, selling more than 80 jin in total. She said that some of these clothes were out of style and some no longer fit because her children had grown up; previously they were all thrown directly into the trash, but now being able to exchange them for some money is more worthwhile than throwing them away.

The sales channel for used clothing points to export. Zhang Zhijun introduced that once the warehouse is full, a large truck transports the clothes to Kunming and sells them to an export company, which then washes, disinfects, and irons the used clothing before packing it for export. The destinations are mainly African countries with weak economies and no domestic textile industry, where processed Chinese used clothing is quite popular. From October to the time of the report, the two had collected about 15 tons of used clothing; in early November they completed the first sale of about 9 tons, and after deducting initial costs there was still profit. Zhang Zhijun admitted that this line of work is "a bit dirty and tiring," but the income is considerable, with the two basically earning over 10,000 yuan a month, and it is freer than their previous construction site jobs.

From their experience, it can be seen that used clothing recycling in inland county-level cities is still in its early stages. By purchasing at low prices, sorting centrally, and connecting to the Kunming export chain, individual merchants can already run a small-scale profitable model. The key to this model lies in the organizational efficiency of upstream supply and the sorting quality requirements of downstream export companies.

Source: Don't Throw Away Old Clothes! Two Young Men in Wenshan Specialize in Recycling for Export... · Originally published on 2022-12-05