Ecostar (Tianzhong Electromechanical Nanjing Co., Ltd.)

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Ecostar refurbishes used copier machines for the Chinese market, which reduces global electronic waste.

Market Opportunity:

• Millions of electronic devices are inadequately discarded or destroyed every year around the world, creating hazardous waste and pollution.

• Ecostar saw a market opportunity when the founder traveled to the United States in 2000 and saw hundreds of used photocopiers stacked up in warehouses.

• Ecostar sees a huge potential for growth–there are currently 400,000 photocopier machines in China yet Ecostar estimates the market size in China to be 4 million photocopier machines, both new and used.

• Ecostar sells refurbished copiers to small businesses that provide printing and photocopying services. These small businesses make up the majority of China’s 100,000 printing shops and 600,000 shops that specialize in express digital printing. In addition to small businesses, Ecostar sells copiers to the government, schools, and large businesses.

Unique Business Solution:

• Business Model: Ecostar imports used copier machines from leading firms in the US, Europe, and Japan and refurbishes the machines. The machines are then resold under the Ecostar brand and leased directly to customers or distributed through a network of wholesalers and dealers that serve as a middleman to Chinese buyers. All of the leasing contracts are backed up by comprehensive service support.

• Competitive Advantage:

  • Ecostar is the only remanufacturer of used photocopiers that is licensed by the Chinese government to import used copiers.

  • Ecostar has a cost advantage–they are able to offer copier machines for 1/3 the price of new copier machines.

  • After almost 2 decades of operation, Ecostar has developed a widely recognized and highly respected brand with a reputation for quality and service. Ecostar refurbished copiers last at least 5 years longer than used copiers that are not refurbished. Ecostar provides regular maintenance services to prevent mechanical problems, and 24-hour service teams are available across the country.

  • The Ecostar management team has extensive printing business experience and technical knowledge. They have strong relationshps with key stakeholders, such as customs officials, and with partners in the value chain. Ecostar has also particiapted in industry standard rule setting.

Environmental & Social Impacts:

• Ecostar’s business model reduces e-waste, which contains over 1,000 different substances, many of which are highly toxic. Specifically, every 100 machines that are refurbished reduce electronic waste by 20 tonnes. Ecostar sold 20,000 units in 2009, reducing e-waste by 4,000 tonnes.

• Approximately 50 kg of water are required for each refurbished copier, compared to 100 kg for the manufacture of new copiers. Ecostar sold 20,000 remanufactured units in 2009, avoiding the use of 1,000 tonnes of water.

• China’s growing demand for color and digital printed products is an opportunity for small entrepreneurs to earn additional income. However, many of these small entrepreneurs cannot meet this demand because of the high costs of color digital printing equipment and lack of access to credit. Ecostar sells the refurbished photocopiers at 1/3 the price of a new copier, helping to create tens of thousands of job opportunities downstream.

Successes:

• Customers are happy with Ecostar’s quality product and service–no products have ever been returned.

Future Plans & Challenges:

• Ecostar plans to diversify their revenue by developing a nation-wide network of digital processing centers and franchised print shops and kiosks.

• Ecostar plans to partner with universities for R&D to explore the development and production of new copiers.

Partnering with New Ventures:

• Ecostar has attended several events organized by New Ventures China where they have forged new connections, gained knowledge and insights, and met with investors. In addition to the immediate benefit, Ecostar believes the benefits of these services will continue to materialize in the years to come.

Financial information on this company has not been included for confidentiality reasons. Please click here to learn how you can receive more information about this company.

Profile updated: March 2011

Ecostar attended the New Ventures Global Investor Forum: Green Opportunities in Tomorrow’s Markets in New York City on April 6, 2011 along with five other innovative New Ventures environmental enterprises. Click here to read about the Global Investor Forum and to learn more about upcoming regional investor forums.