Japan’s Aucnet continues growth path with offering new services

Aucnet’s growing auction empire

Established in 1985 and headquartered in Tokyo, Aucnet has built a reputation for its online auction and distribution services across various sectors. The company’s auction platforms cover used cars, motorcycles, digital devices, branded goods, flowers, and medical equipment.

Financial performance and expansion

Aucnet’s financial performance in the first half of this year reflects the growing interest in pre-owned items. The company reported handling transactions worth JPY5 8.4 billion (€ 373.4 million) in the six months ending June. This figure mainly comprises sales of pre-owned luxury bags, watches, apparel, liquor, and used smartphones. Aucnet’s take rate from membership and commission fees stood at 30.8%, a significant contributor to its revenue. Lifestyle products, mainly used smartphones, accounted for a substantial 67.6% of Aucnet’s total sales during this period. In the Q2 alone almost 850,000 digital products were sold using Aucnet’s platform. A huge volume but 3.1% less if compared to same period in 2023. Japanese used smartphones are generally liked in the global secondary mobile market because these phones are often in better cosmetic condition compared to those in other markets, primarily due to cultural and market practices.

Japanese consumers place a high value on cleanliness and meticulous care of their belongings, which includes electronics like smartphones. The cultural norm of respecting one’s possessions means that many individuals use protective cases, screen protectors, and handle their devices carefully to avoid damage. Additionally, Japanese consumers frequently upgrade their smartphones, often responding to the release of new models. This results in phones being used for shorter periods, contributing to their better overall condition.

Moreover, Japan's resale market for smartphones is known for its stringent quality standards. Devices that do not meet high cosmetic and functional criteria are often not resold or are sold at significantly lower prices. Both retailers and consumers in Japan have high expectations for the quality of secondhand products, further ensuring that used smartphones remain in excellent condition.