Internet entrepreneurship case: How to solve O2O pain point?

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Pedestrian network December 1, 2011 officially online. Do a high quality vacation apartment reservation.

Just a little over a year.

In a large number of Internet entrepreneurship cases, we see are: The first step to accumulate users, the second step of capital expansion, the third step is the establishment of the ecosystem, the formation of the industrial "moat."

Even specific to a lot of O2O company body, is this path way, offline resources to build a little later than the online access to a large number of users (ie online to Offline). And passers-by are not the same, from the founder of the Rojun to build a business model at the beginning, it will exert its force on the line under the online ecology-line to find listings, online search flow, docking of various remaining resources. This year, in the media reports, passers-by more exposure is in it with poly Real estate, China Railway, Shimao shares, such as domestic top developers, and even the Shandong Provincial Tourism Bureau and other government agencies signed and reached strategic cooperation occasions.

For the passers-by model, the author has mentioned in the article:

Tourism real estate projects have been the problem of the shortage of tourists and service standardization. And the pedestrian network is the tourism real estate and tourism industry grafting, the Ctrip model copied to the tourism real estate industry. The pattern is not complicated, but it needs a strong resource integration capability and operational capability. In general, the pedestrian model is a Ctrip plus hotel management operations, both to provide online booking, while the holiday apartments for standardized management operations.

Model closed-loop, online under the ecological Perfection, product standards, and finally, there is money to earn, this is actually a lot of O2O companies now survival and development of the pain point.

The first-year-olds now seem to have done a good job in these areas-except that they haven't made any profits yet.

Founder and CEO Rojun said: "What type of company is related to the DNA of each company." The enterprise's DNA determines the enterprise's future and development, a pure online company, you want him to do offline, this is impossible, because no one in the team understand.

The DNA of the passers-by is relatively mixed. Rojun has done Cisco, Oracle, Avaya and other company executives, formerly Nasdaq listed companies in the Sino-house Letter of the group's joint executive President, Sina le Habitat general Manager, co-founder and CTO Melissa from the passers-by "prototype" one of HomeAway.

Recently, Tiger Sniff interviewed Rojun. Below, listen to him to do O2O aspect of actual combat experience, is how to build a "moat" at the beginning.

The following for Rojun dictation, Tiger Sniff finishing:

Entrepreneurial motives

I was first inspired by the 9.11 incident. When I was in Hawaii, I was forced to leave for 4 days at the Hilton 170 dollars a night. And the most impressive is that the other two friends live 45 dollars a night of the apartment, but also with others, a few people share down a person one night 10 dollars. I wash the shirt every day about the money can buy a shirt, and then eat also not smooth, I thought that two young guys how so fine, find such a cheap house. At this time I do not know the concept of the holiday house leasing, just feel that this thing is worth doing.

This thing in the past more than 10 years, I later in Sina le Habitat for 5 years of general manager, the whole real estate industry contact deeper, found that one of the biggest problem is "sedimentation room" is very powerful. I thought, if I had seen the same pattern I saw in the United States before, and then found HomeAway and Airbnb, I would have been inspired.

On the data, the United States and Europe for 2011 years of the year for non-owned home ownership of the industry to the size of 85 billion U.S. dollars, including vacation rentals accounted for the total size of 37%, China accounted for how much? Hardly even a single digit, which proves that this thing can be done.

Some considerations when entering the profession

But can not copy the United States? In fact, all of China's successful models are not copied completely intact, or they will die. America's Holiday house rental (Ovr=online vacation rental) model is a platform, the house on the top, and then people can see after the rental, China is certainly not feasible. Because the environment is still in a period of non-trust.

Although it cannot be replicated, it is worthwhile to do so from a long-term perspective. But we have to consider two issues, on the one hand, for the company's long-term profits, the price can not be too low, otherwise there may be no profits. On the other hand, for the industry to consider, if the first day of the industry is 0 profit or negative profits to survive, then the industry will become very bad. Generally speaking, we live in the house is not willing to rent, but the investment in the house and the destination house are willing to rent. What are the characteristics of this kind of house? That is, most of the owners are not resident there. If you have a house overseas, you occasionally go to live for 2 weeks, the extra time I run out for you, and then I use the income division, such a pattern of the owners like, because the transparent, I have the system to see him, he can see the situation, the price of every day.

This idea is feasible from the cost, the biggest hotel cost is the whole of the rent of a building. If a building rents down 500 million, each year to be amortized, the entity also has the swimming pool, the sauna, the upscale dining room all is the vacant cost. And the hotel's consumption, central air-conditioning system, ventilation system, heating system, this counted down on the sea went. This is not the most terrible, the most terrible is the off-season, off-season words these services you are to keep. These costs do not exist for passers-by. One of the cost of staff, but we will be in the off-season Yantai Weihai to go to Hainan, because the company is a package of food and lodging, so young people are the same, not to mention a week there are two days can be a holiday, so that the cost of employees also effectively controlled.

Want to do this thing from the beginning to now there are 3 difficulties, the first difficulty is the business model and integrity, the second is the service system, the third problem to be solved is the traffic volume.

The first difficulty, by the Big O to solve. I do O2O, but the offiline part of the line, with my butt is Big O. Sanya, for example, has two thousand or three thousand vacation apartment management companies, but we've only picked 20. We do not do offline service, they go to do offline service. We choose high quality, quality control of these companies, we can completely control them, they are not good quality, not obedient we can immediately put them offline.

The second major difficulty is the need for a system, because no one in China has done such a system, only people have done family hotels. It's easy to write a system, but it's very rare to make it work. I was fortunate to have found the CTO Melissa of Escapia, a HomeAway acquisition.

The third need flow, the electric business model is through a large number of buy sem, do seo. But I want to be more long-term and more efficient, so I think of a question: Who is the biggest O2O in China? is Ctrip, but Ctrip has air tickets, hotels, tourism, travel 4 business, then ctrip your holiday business can participate in the passers-by, and let the passers-by exclusive do, so come in is a huge amount of precision orders, Visitors can also use the price of the hotel as a reference, will reflect our cost-effective.

At present, there are three types in the domestic OVR industry--I think parallel lines, not competition. The first is the pure offline institutions, such as gifted Parker, Flower Hall, there are many, usually 50, 100 sets, 1000 sets of large, wrapped and then renovated, but in essence, boutique hotels. The second kind is pure consumer-to-consumer, like ants, piglets short rent this type. The third type is O2O, like a passer-by.

Tiger Sniff: You can see that the whole model of a passer-by is actually made up of three companies. First, the pedestrian's online platform refers to HomeAway, the second hotel management refers to the Swidden (Sweetome), the third, responsible for room service frame of reference is the European interhome. The company's future may be split into an online platform, hotel management, room service three separate business units.

Upstream resource issues

In solving the housing problem, passers-by did a practice with Chinese characteristics.

In the real estate, Europe and the United States do not have a primary market only two level market, the U.S. real estate and leasing business is not cooperative, but China is a market, the so-called new house market, and is the emergence of a large number of idle rooms. Because there is no foreign reference frame, so China did not take this industry before the company, but because of my previous background, so I found.

Passers-by are standing behind the developer to the owner said, you can rest assured to buy this House, if you do not rent the way home to do the housekeeper, if you rent the way home do hosting. If there are these two commitments, the developer House is certainly good to sell. So this and developers are mutually beneficial. Like passers-by in Qiandaohu Villa Group, a collection is dozens of sets. Although the passers-by now on the line although only 20000 sets, but look back, passers-by have signed down 150,000 sets, in the talk has more than 900 projects, more than 900,000 sets, give me 2 years, this pattern will become what?

Downstream standardization issues

After the flow through Ctrip to solve the problem of demand and standardization.

On the demand side, there are two types of division:

One is according to the nature of accommodation can be divided into two types, one is the nature of tourism, such as Sanya, the other is a business nature, such as Nanjing, Suzhou, Hangzhou. For example, in Chengdu Island International, I am equipped with a waiter 24 hours a day in the inside, such a house 3000 quick money a night. These two aspects of our current gravity is not the same, the future may be in these two aspects of the proportion of adjustment. There is a passer-by now there are also foreign countries, the future of the amount of foreign countries may be magnified a little bit. Special attention is, because the whole tourism market is more and more mature, personalized demand more and more, for different groups, such as the needs of the elderly, the romantic needs of couples, in different regions in the future to have different solutions.

Another division, can be divided into to C and to B, in the to B demand, the passers-by have a special department called the Channel department, for B customer needs, signed the company agreement customers. NEC China, for example, has been living in our house for a year.

And in the standardization, is to ensure the consistency of customer experience: that is, a passer-by lived go to live the country's passers-by, from the search, place orders, customer service, reception, check-in process are all the same, but the room is not the same, do not have to pay the cost of repeated learning, this is very important, but also a fundamental principle of internet development. As a result, commuters are available in all parts of the home, except in some places where fees are not charged. Some of the two or three-hour drive, if not charged, directly to the profit to eat clean, it is impossible to do so.

The sort of the house on the net, the current is according to comment, click to row of.

Analysis of passers-by

After listening to the introduction and thinking of the Rojun model, Tiger Sniff made some analysis of the passers-by.

According to Luo introduced, passers-by a year's income to billion, at present in the loss, but each order is to make money. In Rojun's view, the profit time depends on the cost allocation of the volume. He says the company costs the bulk of the current online and manages this part. For example, passers-by in Sanya Airport, a front hall 1 million a year, but now the amount of housing and income is not enough to thin such costs.

The advantage of the passers-by lies in their availability and the set up of a reservation, management and service system, but the challenge is the same as that of other short-term O2O: How long does this market take? Ants, piglets short rent and the market entry point of the passers-by is completely different from the positioning. Rojun that ants, piglets, such as short rental model profit is too thin, market cultivation is difficult, quality brand is not very good. But ants short rent CEO Gong to Tiger Sniff said, short rent in more than 40% of the demand is from students, which means that students this group has become a short rent this market loyal customers. He said, although at present apart from passers-by, everyone do is consumer-to-consumer, but in fact, see the evolution of Taobao can know that the future of Consumer-to-consumer will become a company, and then there will be a low-end short rental upward compatibility or backward-compatible trend.

The advantage of the passers-by is standardization + flow, while the ant's advantage lies in the price and distribution. From this point of view, it may be easier for ants to establish a market awareness, which model and market first prospered, may prevail. If the short lease of the outbreak point in transit home before the arrival, I am afraid the future of the war will be very cruel.

Only when the market is up, can the passers-by talk about a richer source of earnings. HomeAway, one of the passers-by ' shareholders, is a diversified profit model of "Advertising + Trading Commission + value-added Services": 87% of its revenue comes from advertising revenue, while charging the landlord for a transaction commission, providing the property or landlord with a paid information display service, and charging according to the number of visitor inquiries and online bookings. In cooperation with the third party, the collection of tourism insurance, housing damage protection and other value-added services are also the development of the new fee.

However, Rojun's position is very clear--passers-by have four resolute do not do: real estate development does not do, agents do not do, advertising does not do, pure hotels do not.

Besides, will the passers-by face the risk of supervision? It is pointed out that: the definition of the identity of the passers-by is vague, and it is still in the industry supervision vacuum, and in the future, the market access, tax collection standards and industry supervision are faced.