8 Years of Yiu Jingbo

Abstract: "Lead" 58.com (58 city) is a Life information classification website, founded in the end of 2005. Located in the local Life service platform, mainly for small and medium-sized businesses, the number of active merchants reached 4 million, monthly independent users 130 million, national Web site, 27 major cities,

"Lead" 58.com (58 city) is a Life information classification website, founded at the end of 2005. Located in the local Life service platform, mainly for small and medium-sized businesses, the number of active merchants reached 4 million, monthly independent users 130 million, national web sites, 27 major cities, hundreds of cities in the volume. The life services involved include real estate, recruiting, automobile, home economics, catering, second-hand sale and so on. From the 8 years since its inception, has been many times VC capital, most of the Japanese enterprises. Application for us IPO two times. Today, 58 of the city to the U.S. Securities and Exchange Commission submitted an IPO prospectus, planned to be listed on the NYSE, code-named Wuba, the highest financing of 150 million U.S. dollars. Eight years of business model of the exploration of 58 with the city to bring more than the advantages of competitors? The development trend of Chinese classified information website in the future What do you think?

58 with the city since its establishment eight years, 6 times financing

1, February 2006, won the soft silver race rich 5 million U.S. dollars investment

2, June 2008, SoftBank continued to invest 40 million U.S. dollars

3, April 2010, the DCM and soft silver tournament rich total of 15 million U.S. dollars investment

4, December 2010, Warburg Pincus investment lead 60 million U.S. dollars, 58 with the city CEO Yiu Jingbo personally with 5 million dollars

5, May 2011, received Japan's largest classified information Group recruit injection.

6, the second half of 2011, by the group and 58 with the city CEO Yiu Jingbo Personal Investment, the total amount of 55 million U.S. dollars. Among them, 42 million U.S. dollars by the Ping ' an group to provide 13 million U.S. dollars by 58 with the city CEO Yiu Jingbo personally in the name of the vote. Unlike before, Yiu Jingbo, who has invested 13 million of dollars in his personal investment and loan to Warburg Pincus, has to return the money to the group in a relatively short period of time.

Two applications for U.S. IPO

First: At the beginning of June 2011, at the time of the 58 city Yang Yandai Advertising, 58 of the city was sent to the listing application and will be listed in the United States by the end of June. June 27, 58 with the city announced the first CFO Hao officially. Hao previously in a number of listed companies and the proposed listed companies as CFO. However, with the Chinese concept stocks in the cold, 58 of the city listing is not the case. Before the application for listing, 58 and the city has been exposed Staff Provident Fund and Insurance disputes, arrears of business loans and group buying businesses to close the rumors of the rumor effect.

Second: Since 2011, 58 of the same city submitted a prospectus to the US Securities and Exchange Commission at the end of September 2013 to go on the U.S. market. The prospectus shows that 58 of the city has been profitable. The prospectus shows that 58 of the city's revenues in 2010, 2011 and 2012 were 10.7 million U.S. dollars, 41.5 million dollars and 87.1 million dollars. For the six months ended June 30, 2013, the revenue was $58.8 million and has been profitable.

Reasons for choosing a U.S. listing

1, the main purpose is to expand the visibility, enhance the brand image

2, hope that through the listing to attract talent, retain talent

3, the U.S. stock standard is the highest, is the listed enterprise management and development direction of recognition

4, the classification of information industry has a huge market potential, at this stage only to do 30% of the market, still have great opportunities for development, but also means 58 with the city has long-term development plans.

58 shares allocation of shareholders in the same city

The company's first major shareholder is CEO Yiu Jingbo, holding 27.9%, management and staff holding 9.2%, investment organization Warburg Pincus Investment Group, its, DCM respectively holding 25.8%, 20.5% and 16.6%.

If the 58 with the city of success, will become this year in the domestic stock of the Orchid Pavilion set potential, Shang small loan after the third listed company, but also will become the domestic classification information field of the first listed companies. The main competitor, net, had previously said it would not consider listing in the near future.

Comparison of Chinese and foreign classified information websites

Winning the classified information site "Profit war", first of all, to study the originator of Craigslist, the United States the most fire classified information site, after 18 years, it has been in the world more than 50 countries to establish a substation, the annual revenue of more than 300 million U.S. dollars. Although the site only charges some of the advertising business, and the entry price.

Unlike Craigslist, China's classified information website is still in its infancy, and the basic profit model relies on a huge flow base to sell product membership tools and advertising services with high ROI to achieve profitability. Although this approach has no innovation, however, in the rapid development of the Internet today, the flow is equal to the wealth of the equation does not appear outdated, this from the recent two years of development of the wind, now occupies the world's first identity 58 of the same city body can be glimpse.

From the rumors of the collapse of capital, to overtake Craigslist in the near future, become the world's first today; whether it is digging up channels to expand the city, or with the money to play advertising rivals, 58 of the city seems to have gradually felt a little "Chinese characteristics" feeling. Although as the vanguard of the industry, in the development model there is no reference to the object, a lot of things need to explore their own, but the drum up the waist can be the first to eat crab behavior to add a courage. This is actually good for the whole classification information industry, after all, someone willing to lead the way is an excellent thing, always more than quo mentality than many times. Only know to enjoy vested interests, sitting ducks, but will eventually be eliminated.

Compared to Craigslist, China classified information website "to win" is not simple, it is not easy, it involves more problems, but dig deep "user needs" is the urgent matter. One person who has studied the classified information industry for many years points out that China's large population, in itself, carries a huge natural user base. 58 the same city overtook Craigslist, and it is thanks to this.

58 the same city eight years of business model exploration

The first stage: advertising. 2005, China's Internet ushered in three classified information companies: Fair, 58 with the city and the People's Network. In eight years of industry competition, both are looking for better business models to win in the competition. Starting in 2011, 58 of the same city and net high density advertising campaign began, the two almost became a synonym for classified information industry.

Second stage: Paid membership and online promotion fee. These two are the earliest and most important business model of the domestic classified information website. According to the information disclosed in the 58 share prospectus, membership fees are still the main source of revenue for the city of 58. In the first half of the year 58.84 million U.S. dollars in revenue, the membership fee of 35.46 million U.S. dollars, and online marketing services revenue (ie, advertising fees) for 22.43 million U.S. dollars.

Phase III: Group buying business. In the capital winter of 2011 and 2012, net and 58 began to look for sources of income outside the two models. 2011, NET and 58 with the city have opened a group buying business, but group purchase is not profitable to become a common phenomenon in the industry, two companies have given up the business.

Phase IV: Electro-commercial. At the beginning of 2012, 58 with the city CEO Yiu Jingbo began to brew the company embarked on the "Electronic Business" of the transition road. Six months of preparation, 58 with the city has opened a mobile phone, ticketing and other categories of online trading functions. This strategy also allows 58 to evolve from a purely classified information platform to a Consumer-to-consumer trading platform. If the transition succeeds, the original daily Tens other traffic will be converted into considerable turnover. With the same as Taobao Cat, 58 of the city can receive Commission. In order to implement this strategy, 58 of the city in the transaction payment link introduced Alipay and other third-party payment companies. The implementation of the "Electronic Business" strategy has been implemented for one year, although it has been effective but still negligible. The prospectus shows that in the first half of the 58-city revenue, online trading commissions and other income is only 950,000 U.S. dollars, accounting for only 1.6%. 58 with the city CEO Yiu Jingbo said that the future may be the standard of e-commerce services, so that users choose whether the need to complete online transactions, the payment link will do more integration if necessary.

Some views on the future development of classified information websites

1. The huge population base is the future of classified information development in China

2, analysis of users in the use of classified information web site habits and hobbies, and then touch the needs of consumers psychology, to provide them with timely, reliable and detailed service information.

3, the continuous development of the spirit of innovation

With 58 City as an example, July 12, 58 announced the launch of Consumer protection plan, May 13 and Alipay cooperation to improve payment system, August 13, and Baidu to launch a wireless terminal "rental artifact" can be seen in the information quality and product innovation on the exploration, This also shows that its industry leader is qualified and responsible, it can in a few years to become the world's first classification site, not only rely on China's huge population base, which also contains its evolving spirit of innovation.

Senior IT personage Wang Kuanxiong thinks: Classified information is Big Thing, in the United States Craigslist ranked extremely high, people rely on it to solve the real problem of basic necessities. 58 listing will be a milestone in the local life information industry, Yiu Jingbo die eight years before today. China O2O market is amazing, will produce more than 10 listed companies. Run-off, at the moving end.

In short, 58 of the city's industry is fast, full of risk and uncertainty, the future strategy is to expand the user base, enhance the user experience, expand and strengthen the merchant network, enhance mobility, further monetization of traffic, seek strategic alliances and acquisition opportunities for any industry development. With the progress of technology, continuous innovation, will be able to bring users a new sense of value. Not only the future of classified information industry, the whole Internet enterprise is also so, to accumulate a huge user base as a starting point, many ways to meet user needs, two levels of active cooperation, this war will certainly win the future.