Device refurbishment company CompAsia aims to change people's perception of used devices
With Asia generating the most volume of e-waste in 2019, one company, CompAsia, has decided to give these used devices a second life. Its chief executive officer, Julius Lim, has made it his mission to give these second-hand devices a new home.
HOW IT STARTED
Lim didn't embark on the second-hand device business straightaway.
"Before CompAsia started, I spent a few years in the Boston Consulting Group," he said.
"When the company (CompAsia) was established in 2012, we bought used computers from companies that wanted to upgrade their hardware, and then sold the refurbished units to those who couldn't afford expensive ones," said Lim, who holds a degree in electrical engineering and economics from John Hopkins University and a Master of Business Administration from Wharton School, University of Pennsylvania, the United States.
Then, as smartphones began to overwhelm the market, CompAsia's focus shifted towards smart devices and the mobile market, which eventually overtook the computer segment.
As the consumer hardware purchase trends changed, the company soon recognised the potential of the second-hand mobile phone market in Malaysia and other parts of Southeast Asia.
That's when the company expanded further by talking to major telecommunication companies, original equipment manufacturers and mobile retailers to maximise affordability, minimise e-waste, and provide customers with a trade-in or financing solution.
"When we entered the used mobile phone market in 2015, it started with only 3,000 to 4,000 devices per year, with RM7 million to RM8 million in revenue. But now, the company and market have grown exponentially," he added.
HOW IT WORKS
When it comes to second-hand devices, people often think of small shops with untrained owners who assess the devices' quality and functionality poorly.
Those shops often offer inconsistent prices and pose a high risk, but according to Lim, CompAsia is different.
"At CompAsia, we don't only sell used devices, but also refurbished devices that are fully tested, functional, and are in good shape. We change customers' experience with second-hand devices by giving them the best quality we've received from large corporations and consumers," explained Lim.
"Besides dealing with local corporations, we also work with international partners to source high-quality devices and manage the pricing," he said.
Lim added that they also buy from consumers who are upgrading their devices via the InstaCash app that lets users trade in their devices anywhere and anytime.
"It's a perk during the Covid-19 pandemic season," he said.
THE REFURBISHMENT
Lim explained how refurbishing the devices, with the help of the InstaCash app, becomes a seamless task. It works in only four steps — download, diagnose, confirm and get paid.
"After downloading the app, you will go through a series of self-diagnosis tests, which will then generate the value of your device. Once you are content with the offered price, just confirm your trade-in, and a rider will come for a pick-up as well as do second checks. Upon collection, the seller will immediately get paid. The app is available on the App Store and Google Play Store too," he explained.
Lim said CompAsia places importance on data privacy and will do a factory reset once it obtains the devices.
They will go through a 32-step check, using a system that is internationally recognised when it comes to phone assessments, and get help from its highly qualified technicians.
"The 32-step check entails checking and assessing the screen, the buttons, the ports, responsiveness, sound, camera, and more. We also sanitise and grade them with clear guidelines to ensure consistency across our products," he added.
CompAsia provides a warranty of up to 12 months and provide a free delivery service.
"This is all for building a second-hand market. With our efforts, we will prolong the devices' life cycle, reduce the need to manufacture new products, drive sustainability and the circular economy, and divert e-waste from landfills," said Lim.
CHALLENGES
Lim said shifting customer's perception of second-hand products is the biggest challenge of all.
"People perceive second-hand devices as a problematic and risky option to take. However, we are beginning to see a change in behaviour among them and why wouldn't they? You can get a better device for less, and at the same time, reduce e-waste on the planet.
"With this as an alternative, it's been growing on our customers, especially the youngsters," he added.
FUTURE PLANS
Lim aims to make buying and selling second-hand devices the norm and not take them for granted.
He said people should see their smart devices not just as tools, but also a combination of precious resources and manufacturing.
"It seems insignificant, but it makes a difference in the grand scheme of things," he added.