Color life business model: property management + engineering services + community value-added services

company name:

Fantasia Holdings Group Co., Ltd. (color life parent company)

Founder: Pan Jun

Founded:

Started in 1998; Hong Kong listed in 2009

Business location:

Shenzhen

Color life business model: property management + engineering services + community value-added services

As the first independently-listed property service company in the Mainland, COLOR's highest market value rose more than 30% in two weeks because of its light asset model. Its market capitalization even dominates the parent company Fantasia Holdings. Earlier this month, Fan Jun, chairman of Pan Hong, was listed in Hong Kong and returned to Shenzhen for the first time after interviewing reporters from the South.

Color life business model can be simply summarized as "property management + engineering services + community value-added services." In the rapid expansion of color life scale, community resources will be realized at the same time, many people think that will affect the quality of property management. In response, Pan Jun said: "In the future, value-added services will be unified and standardized, and community e-commerce will solve this problem."

Property management fee system

Property management is a meager profit industry. Property Association of Guangdong Province staff south of the reporter revealed: "At present, more than 90% of property management companies are at a loss." And Southern Reporters in the color life prospectus to see some of the property management business gross profit margin is very high.

Among the data published by Color Life, the net profit margin of the company was 29.5% excluding the impact of listing expenses in 2013; its net profit margin was 16% and 22.8% respectively in 2011 and 2012, far exceeding the net profit of real estate development Profit rate.

What kind of color life model has been recognized by the capital market?

Pan Jun introduction, color life business model can be simply summarized as "property management + engineering services + community value-added services."

Choi Life adopts the management mode of "remuneration property management", that is, the property management committee signs a contract with the property management company and takes charge of the property management of the real estate agency. It manages and outputs intelligence and charges 10% of the property fee as compensation Relevant personnel and material costs borne by the industry committee. The prospectus mentions that in 2011-2013, the gross profit margin of this property management system will reach 100%, 100% and 98.2% respectively.

Engineering services include the acquisition for the community, installation and maintenance gates, remote monitoring, building intercom, alarm, parking security and other systems. At the same time to carry out contract energy management services for the owners to install energy-saving lamps, saving electricity to share revenue. Engineering services accounted for 22% of Cai Life's 2013 revenue with a gross profit margin of 39%.

The community value-added services is the most imaginative color life plate.

Assist the industry committee to lease the public space of the community, set up billboards in the community, and introduce the houses that the owner intends to rent and sell to the property brokerage companies. These value-added services are all rich sources for the colorful life. In addition, Color Life also launched a residential showroom in the residential area --- color life space, for vendors to display products and services such as rice, bottled water, cooking oil, fruits and other daily necessities display sales space. After receiving the order directly to the supplier delivery and receive a certain percentage of business introduction costs. The growth of this part of the business was rapid. In 2013, the value-added service revenue was nearly 45 million yuan, accounting for 19% of the total revenue and the gross profit margin was 100%.

"Zero management fee" why not

Beautiful on the books, but over-commercial district, the user can pay it?

In response, Pan Jun told reporters all south: "Now we have begun to reduce this piece. Before we want to rely on this income through the sale of crabs, selling rice, selling oil, does increase every year, about 6 million -7 million a year Profit, but from the beginning of this year all the cooperation with the electricity supplier value-added services unified standardization.

However, in the community value-added services, full of opportunities. Pan Jun had previously proposed "zero property management fee" concept. Pan Jun told reporters all south, the so-called "zero management fee" is to enable owners to spend in the color life platform, reach a certain point you can not pay management fees.

Pan Jun believes that this credit system is very easy to form. He told reporters in the south: "I have the owner of the big data, what time of the morning every morning he opened the car out, what time I came back, I have a record .As a property company we also know his property rights, his house When is the time to buy, the mortgage situation.So community finance, community education, community pension are related to the property, so many opportunities, property management fees compared to just a shred.

At present, the most important job in color life is staking their horse and expanding their scale. Pan Jun predicts: "By 2020, management of the property area will reach 1 billion square meters."

According to Pan Jun's estimation, by 2020, the total area of ​​residential properties in the country will reach 30 billion square meters, and the consumption of community services will exceed 1,000 billion yuan, exceeding 1,000 billion yuan in China's domestic demand market. The localized community O2O will be the main battlefield.

[House]

Guest:

● China E-Commerce Association senior expert Zhuang Shuai

● Fantasia holding chairman, color life chairman Pan Jun

● Shenzhen should be a community business Group Co., Ltd. General Manager Liang Zhijun

● According to Valley Network Marketing Director Chen Yu

● Grand Kam Co-founder Xiao Pan

Topic 1

VS mergers and acquisitions

South are: color life service is very large, merger and acquisition plan is like?

Pan Jun: In fact, color life only platform, more money will be used in mergers and acquisitions, to cooperate with the top companies in various industries. For example, if you are the best fresh cow, then I work with you. Just like Taobao, you just come to my shop, through your APP into your interface, and then you through my delivery system, in short, you have to fall in my community. Of course, to do the platform, we need the scale, so we are also staking their horse.

There are currently no specific targets, but 60% of the proceeds from the color life listing and fund-raising are intended for mergers and acquisitions. There are no specific targets at present. However, negotiations have been held and the target is still mainly residential property management companies. The conditions include the management of mature projects in the first, second and core cities, Big company The main goal is to merge the top 200 property companies. But I am not interested in the top ten, because it is generally too traditional and difficult to be like-minded.

Nandu: Whether it is mergers and acquisitions business or property management, usually require a great amount of capital and return. For unlisted property companies, is there a more clever way?

Liang Zhijun: Let us count an account: We have Great Wall property management area of ​​80 million, but dispersed to 40 cities in the country, an average city on the 2 million square, up to 20-30 district. If the concentration is not enough, there are many owners, but 10% are users and 2% are active users. In fact, this is very uneconomical to do, it is not cost-effective.

There are two concerns about M & A: first, high capital requirements, but also the pursuit of return; second, not all companies are willing to mergers and acquisitions, especially outstanding enterprises in the industry. Therefore, the Great Wall Property "alliance" approach to more property companies to provide a platform. And property companies caught in the mud of loss are also very willing to cooperate.

We now have two, one is the property cloud, one is the social cloud. Property cloud is a property management system. Because small and medium-sized property companies have no way to develop such a system, so that we use free or low-cost models to increase efficiency and reduce costs. Business clouds can also be used in franchises. This scale is easy to expand, the cost is very low.

Topic 2

User is king VS service is king

Nandu: using intelligent hardware breakthrough community, is a gimmick or a shortcut?

Xiao Pan: At present, the biggest problem doing community business: the first is how to drain the user over; the second is how to increase user viscosity. We have done a variety of attempts before. But in the end I found it hard to keep customers, whether it's us or the rest of the industry. why? I found that the use of mobile client is actually very narrow. Older or too small will not be used, usually very busy age group. Even if someone downloaded the client, but at most just complete the payment and other matters, it is difficult to increase the viscosity.

Therefore, through our own input, we hope to transform the original video intercom and replace each household intercom with a terminal platform. This in the most simple way to increase the user viscosity and frequency of use. Here, users can not only complete the mobile walkie-talkie function, but also includes three major sections: property manager, car butler and life butler. This is a good solution to user habits.

Chen Yu: In fact, for now, users for community services or community goods, do not buy it. As a supplier, we actually can see clearly. We found that these platforms did not significantly increase our sales.

In this context, if it is to break through the smart hardware, its hardware investment is too high. Our community e-commerce now customer price is only 35 yuan, far below the price of their own websites or common fresh Web site customer price. If every household should invest thousands of dollars to get users, this cost is too high.

Liang Zhijun: The use of intelligent hardware, the purpose is to seize the user, develop user habits. But do not forget, the user's home terminal more and more, in fact, it is difficult for the property to obtain the user. And hardware standardization is hard.

Pan Jun: I think we still have to concentrate on user experience this piece. Now we color life each year in the hardware and software inputs are more than 30 million. Now there is a feeling, in fact, customers accept new things higher than we expected. If the viscosity is not enough, can only indicate that users have not yet digging needs.

Zhuang Shuai: I think no matter be the intelligent hardware or other, will eventually have to return to the community service and business model.

We often divided into four stages: the first stage is the king of channels, which is the traditional retail era reference. The second phase is the flow of the king, often using the flow to cash. The third is the mobile Internet era often said that the user is king. The fourth phase is now the community of O2O often referred to the service as king. Deep in the "service is king" era, to deep service, carefully looking for those who have not been valued for a long time community service is more important.