Market betting subdivision and 58 competition intensified

Absrtact: In the past few years, after a series of negative news, such as broken capital chain, senior management turnover and failure of transformation, the classified life information industry has been favored by the capital market this year, with 58 of the city's share price rising after the listing, and net yesterday announced the completion of the 200 million-us

In the past few years, after a series of negative news such as capital chain rupture, senior management turnover and failure of transformation, the classified living information industry has been favored by the capital market this year, with 58 of the city's share price rising after the listing, and net yesterday announced the completion of a new round of financing over 200 million dollars

For the market to obtain new financing, 58 with the city CEO Yiu Jingbo see very light, he accepted Tencent Technology interview, said that the market has lagged behind to only 581 and a half less than the scale, 58 This June, just get Tencent 736 million dollar strategic investment, have established development strategy, do not care about and will not be due to market financing and change their rhythm.

At the end of June this year, 58 announced the strategic investment in Tencent, the industry has been rumored that Baidu, Ali is also assessing the takeover of the market, but the parties in the price and the issue of controlling the right to agree. This time, Tiger Fund and Carlyle Investment Group decided to invest in the market, also means that the capital market is still optimistic about the development of 10 years of classified information markets.

The classification information website highlights its own value, because of the rise of O2O life service. From the user point of view, the demand for local life services a lot of direct docking is a variety of localized small and medium-sized businesses, including driving, home economics, hourly workers, nanny, decorate the house and so have practical, real-time life information services. Compared with pure internet companies, 58 and the market has mastered the offline resources (including small and medium-sized businesses, a huge network of service teams, etc.) have a difficult to replace the competitiveness.

"When others are not optimistic about an entrepreneurial project, especially dirty living dirty, it means survival and growth opportunities." "The most important decision on the 58 development path," Yiu Jingbo said, "is to get involved in the promotion and sale of the line, to localize the American Craigslist model and build a thousands of-person offline team." ”

58 the market.

Market this access to finance before, 58 with the city's successful first listing once to net caused no small pressure. "The growth of rivals after the listing has basically collapsed. "Yiu Jingbo has said that through the Baidu Index, Alex and a variety of third-party software downloads monitoring, the 58 after the listing of net flow rate of decline in 50% to 60%."

NET denied that 58 of the city's claims, and provided data that market traffic and business growth, Yang Hao-hu also to Tencent Technology, net last year, 4 consecutive quarterly sales growth of more than 58 in the same city.

After the acquisition of Tencent Strategic investment, 58 further challenges to the market prospects, the industry analysis that the local Life service competition is not a simple flow of competition, more important is the scene, user relations.

And the 200 million U.S. dollars to the account, although the market has not been able to obtain the support of strategic resources, but it is bound to be in advertising marketing, mobile business and other aspects of increased investment, and 58 brought new competitive pressure. Prior to Yang Hao-hu many times outside the market business to realize positive cash flow operation, not lack of capital, there is no pressure on the listing, but to want to not be 58 complete lead in marketing share, it is imperative to increase market investment.

NET said that this round of financing will be used for product development (focus on the wireless side), and increase market share to further seize the market, in the O2O field will also explore and new business attempts.

In fact, in the competition history of 58 city and net, the sustained high investment in the market and advertisement is the main reason for the competitive advantage of the 58 preemptive listing. 58 behind the investment party Warburg Cheng Zhanlun, managing director of the United States, said Tencent Technology interview, the competition in the middle of the soft gave up the advertising campaign, market share will decline, whether before or after the listing, 58 with the city next to the development of the center of gravity is still further integration of market share.

Repeated setbacks in the transition road: once stranded group buying and short rental

Previously classified information site revenue mainly from advertising revenue and membership fees, the advertising model similar to the search engine bidding rankings; membership fee is the fee charged to registered certified members.

Under the High Line promotion and the advertisement expense, the continuous loss and the market pressure which the investor brings, the exploration of new business model is the development theme of 58 and fair in recent years. "If we do not revolution our own patterns now, we will become the past." This gives us more impetus and pressure to transform the existing model. "Yiu Jingbo has analyzed the status of classified information sites in a job-hunting program.

And around 2011, 58 city and net almost at the same time chose to bet on group buying. For net and 58 with the city, kill the logic of the league is very simple, on the one hand is able to change the flow of their website, on the other hand, because they have a strong ground team, involved in a number of coupon services, so there are certain to do the basis for the purchase.

But 58 with the city and the market error estimated the group buying industry competition. After the Battle of the Red Sea, the market environment has been deteriorating. Although net and 58 have made huge sums of money after they killed the league, the high investment in group buying has not helped them hold out for too long. No matter net or 58 in the same city, have not been able to enter the top three of Chinese group buying sites, after the killing of 1.5, they also almost gave up buying business.

Relevant reports said, the market at that time to obtain the 40 million U.S. dollars in the third round of financing quickly depleted, only group buying net invested 100 million yuan of huge sums of money; 58 group buying strategy was also proved to fail, and did not give 58 to the city to bring a turnaround and a new interest point of growth.

Later, the market to litters group Buy to the joint operation, give up the net chose to buy in the short term rental markets again.

NET CEO Yang Hao-hu repeatedly declared that ant short rent provides an opportunity for a future IPO, potentially surpassing the classified information business of the market, which will breed a 1 billion dollar company.

Market at the end of 2011 on the line ant short rental business, by the original net executive Chen Yu responsible, early 2012, net will be responsible for the group to buy business Wang Liantao and subordinate staff also adjusted to ants short rent.

But the two people's development concept and then the market CEO Yang Hao, Yang Hao-hu think short rental investment too big, make ends meet, may repeat group purchase business, March 2012, Yang Hao-hu to ants short rental team make adjustment, dissolve nearly hundred people line push troops.

In the proposed to the Ant short rent business is not Yang Hao after the passage, Chen Yu and other people finally chose to leave the market, and then less than six months after the establishment of pig short rent, and market competitor 58 with the city to reach strategic cooperation.

January 6, 2013, the pig short rent announced that the morning Hing to invest tens of millions of dollars in a round of financing, and NET also announced that the short rental business of its ants officially split, and claimed that the ant short rent independently obtained by the advantages of capital, Blue Venture Investment, Sequoia Capital of nearly tens of millions of dollars.

For the short term rental business in China's development prospects, there is no doubt the voice of the market. "This model only looks beautiful, and in the short term it is hard to form an American-like boom in China." Although the short term rental website claims good tens of thousands of listings, but the real rental rate is low, there are many false moisture on the data. "Some insiders think.

Market betting, recruitment and other segments

At the time of last year's listing in the United States, Yiu Jingbo accepted Tencent Science and technology interview, said that 58 of the city's positioning is still a local life information platform, and this March, Yang Hao-hu accepted Tencent Technology interview, compared to 58 city all-inclusive classification information platform positioning, net current development strategy is in the recruitment, Real estate and other segments of the market force, in order to cut into the life service market.

Currently, the top three net are recruiting, real estate and living services. According to Yang Hao-hu revealed that this year net will probably invest 4~5 billion to recruit and property. The market in these subdivision areas of the main "cock silk economy", for example, online recruitment business target user positioning in the waiter, security, front desk, sales, factory workers and other grass-roots groups, providing a platform and a number of small micro-enterprises docking, in the real estate sector, is based on mobile end to second-hand housing and rental business to seek the two or three-line city as a breakthrough

This means that net in the "everything has" information platform positioning, and the adjustment also means that the market under the line of marketing personnel costs will face growth. Yang Hao-hu has said that, compared with tactics, technology and product input is a healthier Internet enterprise ecology, "Light Company" features more conducive to profit margins, but in fact, the market also continued to expand offline investment. At present, net employees in more than 2000.

Market currently in the mobile end of the app mainly includes "fair life", Real estate field "lazy people looking for a room" (users directly hair demand, through the algorithm to match the appropriate availability of agents), local life services in the field of "Home necessities."

However, it is unclear what kind of story the market will tell the capital markets when it launches the market. Sources said that the market has reached agreement with investors, will be launched in 2015 to launch the plan.

Before that, net completed five rounds of financing. 2009, Net won the Blue venture to invest in a round of 8 million U.S. dollars, 2010, the Nokia Growth Partner fund and Blue Net investment in the B round of 20 million U.S. dollars; 2011, the capital of today and Sequoia Capital participation in the C-round investment of 70 million U.S. dollars In 2012, Citic Industrial Fund and the Ontario Teachers Pension Fund, Macquarie's two rounds of financing, the total size of 90 million U.S. dollars.

It is not clear that the market investors in the latest round of financing of the withdrawal, but Yang Hao-hu has repeatedly stressed to the media did not go to the U.S. listing plans, and said that if the net behind the investors have to exit demand, in addition to the listing to accept new investment is also the exit mode.