Market VS58 who is classified information website Industry boss

As China classified information website Industry two mega sharks, net and 58 city in order to compete for market, they bite each other, exactly winner, still to be time textual research, but for now, who is the industry leader, Yiu Jingbo (founder of the City of 58) and Yang Hao-hu (founder of the net) are extremely concerned about the answer to this question. Two business models of the same Web site, user preferences is everything. House, looking for a job, buy and sell second-hand goods, you choose "Magical 58 City" or "all have net"?

In the two Web site battles behind, is the entertainment star, VC, third party internet giant infighting between.

Sina Weibo has 18.54 million fans of Yang and 21.59 million fans of Chen Yao, respectively, become 58 with the city and net spokesperson. Each road VC silently conveying a large number of "ammunition and fodder." Baidu, Google two giant "Internet traffic manufacturers" for their respective interests, choose to carry 58 of the city, net, consolidate their status.

Classified information website market is still in hand-to-hand combat period, both sides morale exuberant, neither side has failed to show. "China's largest classified information Web site," the crown, will wear on whose head, the market has not given the answer. Yiu Jingbo, Yang Hao-hu between the "Yu Liang" controversy will continue.

Turtle PK Coyote

Yiu Jingbo and Yang Hao Chung, one is "hyena", One is "turtle", two people experience have nothing in common. But in the venture, they invariably chose the classified information site.

Like other internet companies in China, Yau Yang's two-person operation mentality is also to copy the U.S. mature Web site model to the Chinese market, to attract VC financing, to a certain scale, and then to the U.S. capital market to complete the listing.

The originator of the American classified information website was craigslist.org, which was founded by former IBM software engineer Newmark in the San Francisco Bay Area in 1995. Craig's initial idea was to allow the Bay Area's internet users to share technology and cultural information, but did not expect to open the market for classified information sites. Even more surprising is that such a "No business model" of the Web site industry, unexpectedly has ultra-high traffic, and later attracted ebay also follow the classification of web sites.

In 2001, Hefei youth Yang Hao received a master's degree in computer Science from Yale University and entered the Junipernetworks company created by Deng, Koering and other people to work in research and development, earning about 120,000 dollars a year. His brother, Yang Haojan, was also engaged in security technology research at an American IT company. Leisurely, comfortable middle class life did not let Yang Hao-hu, Yang Haojan brothers Complacent, "my character is not very suitable for working, or want to do something." "Yang Hao-hu said.

He began to keep looking for projects, non-stop to various investor mailboxes to send project plans, and frequently ran to the Silicon Valley road to find VCs, but all went down the drain.

Yang Hao-hu and Yang Haojan brothers focused on Craigslist in June 2004, and the two brothers were very excited by careful analysis of the statistics. They decided to move Craigslist to China. After 3 months of hesitation and the refusal of countless investors, Yang Hao-hu decided to start with his own money, plus the money borrowed from his classmates and brother Yang Haojan, almost 100,000 dollars.

December 23, 2004, Yang Hao-hu returned to Beijing to start a business. At the same time, Yang Haojan in the United States to build net the earliest Web site framework. "I would have thought a lot before I made my decision, but I was determined to execute it quickly. "Yang Hao is fast.

March 23, 2005, Yang Hao Chung's net online.

Almost the same period, has been China's largest domain name trader-China million network, deputy general manager of the Yiu Jingbo resigned to prepare for the third venture. The previous two, he created a separate Yi Lan, successfully sold to China million nets, and later and a few friends to create education, successful landing in the United States New York Stock Exchange, become a billionaire.

After a careful study of the top 100 sites in the United States, Yiu Jingbo was also attracted by Craigslist. "I definitely want to do it in this direction, and I think there's a lot of room and no limit." "Yiu Jingbo said his goal is to be like Robin Li to do" Everyone uses 58 City "," This will be very large, and the user reputation is very good, the income is very high. " ”

The same year December 12, 58 with the city officially online. Yiu Jingbo said: "The name is 58, is my hair, I released, I found the meaning, let you publish information easier." ”

It's hard for everyone

The development of Yang Hao-hu and Yiu Jingbo in the Chinese market has suffered many setbacks in the early stage. Do classified information Web site technology threshold is very low, in the net line before and after, the country has thousands of of similar web sites, especially Sina such a Big Mac also killed in this market, which makes Yang Hao-hu anxious out of a sweat: "At that time very nervous, especially the fear of Sina such companies." ”

Classified information Web site business model is not clear, hindered the net financing. Yang Hao All the money is only 100,000 dollars. "At that time one-month overhead is basically 50,000 yuan, wages 20,000, market costs 30,000, can support 16 months, I do not have a profit model." 16 months will be the end of the financial investment. ”

Lack of funds, the group of enemies, let Yang Hao-hu very pressure. He did two things: the first one was "only the Beijing market"; the second was to compress the product type into renting and second-hand trading. Yang Hao-hu at the time wanted to "make a model, to show investors, to prove that I can do it."

One months later, Yang Hao-hu found that only this is not enough, a monthly market budget of 30,000 yuan compared to the Beijing market is simply "a drop in the bucket." He began targeting the most direct target groups: students, community residents.

Yang Hao-hu with staff to the residents of the community, the school issued convenience cards, printed on the front net, negative print some life information, such as Pet hospital, police, moving company's phone. Yang Hao-hu also ran to the campus to do lectures to promote.

After half a year, "We did best in Beijing." We are the only one of two categories in Beijing. Yang Hao-hu said he went to find investors, DCM, IDG and other VCs are interested, but he chose to work with Google.

The important reason for this cooperation is that Google is anxious to enter the Chinese market, but the application for ICP (Internet content Provider) card requires 280 working days. Can't wait for Google to choose and net cooperation, by net on behalf of the operation of Google, CN domain name, two sites share a ICP card, Google each year to net operating fees (this model is suspected of violating the rules, and later by the relevant departments to stop).

By contrast, Yiu Jingbo is lucky to start early and has plenty of silver bullets. 58 with the city just operation, the rich Asian Investment Fund management company partner Sheep East Initiative to find door-to-door, to 58 with the city to invest. At that time, Yiu Jingbo even had no PPT to do. Sheep East and Yiu Jingbo only chatted once, will 5 million dollars to 58 of the same city. The investment in the sheep east is largely a conscious judgment, and he believes that Yiu Jingbo is a person who can make Craigslist a model in China.

The market gave Yiu Jingbo a sap. After a year of imitating the Craigslist model, Yiu Jingbo found that the model was not suitable for the Chinese market. Craigslist is mainly paid by individual users, and this model is not feasible in the Chinese market. Yiu Jingbo into the strategic confused period, he put money to set up a DM magazine "Life Circle", hope to rely on online resources, on-line to make money. But a year later "Life Circle" ceased, Yiu Jingbo found that their most suitable job or the Internet.

58 The early development experience of the city illustrates a truth, and a good business model must also be localized. Who knows more about the local market, and who is more likely to succeed as soon as possible. Soon, 58 of the city's business from the simple Consumer-to-consumer adjustment to Consumer-to-consumer and business-to-business coexistence, relying on consumer-to-consumer access to information and advertising, relying on the consumer to obtain corporate users pay.

Who has more money?

Unlike the business environment in China and the United States, Craigslist and its followers--58 with the city and net. By 2007, Craigslist, which had 18 employees, had 2.5 billion visits a month and hundreds of billions of dollars in income. Craigslist's income, in addition to maintaining the company's operations, often makes charitable donations. The founder of Craigslist, who does not lack money, is dismissive of venture capital.

Yiu Jingbo, Yang Hao-hu but not Craig's heroic, they need venture capitalists constantly "blood transfusion", otherwise, the company may not survive.

On the eve of the financial crisis in June 2008, the Internet market environment changed. In order to deal with the crisis, Yang Hao-hu began to negotiate investment matters with VC. The first contact is the blue-chi venture. "Once we met, we had a fairly high valuation of 20 million dollars." Yang Hao-hu was delighted. But the money of the Blue Chi Ventures is overdue, by October, "the company is more difficult, and by November we will not be paid." "Yang Hao-hu did the worst of the plan, let employees go back to the New year, ranking March 2 again to start."

At this time, the financial crisis is ravaging the global economy, "the whole internet has changed." In December 2008, blue-hit ventures lowered their valuations for net, "we accepted." "In the end, Blue created this round only 5 million dollars, until May 2009, the money was hit Net's account."

Before that, Yang Hao-hu determined to do his best to earn income. "By April 2009, our company was profitable. Sixty or seventy people made 1 million yuan income, mainly advertising. For example, when the user is looking at the property, we will recommend to him some of the more matching agencies. This does not interfere with him, the user is not exclusive. "Yang Hao-hu said.

In the same period, Yiu Jingbo also began to change money, Sai Fu investment sheep East to its additional 5 million dollars of investment.

Since then, net, 58 with the city began to find the wind to invest in financing, two always before and after the foot of the media announced to obtain financing, to strengthen the momentum.

In January 2010, NET received a joint investment of nearly 20 million U.S. dollars from Nokia Growth Partner fund and Lan venture. In April, 58 of the city received a 15 million dollar investment in DCM and SoftBank. December, Net won today's capital and Sequoia 70 million U.S. dollars in the C-round investment, 58 with the city of Warburg Group and Yiu Jingbo personal investment of 60 million U.S. dollars.

Two companies after the completion of the C-round financing, Yang Hao-hu said: "Blue after the three rounds of financing, now there is no shortage of money." ”

"Our financial strength will at least guarantee the company's adequate funding requirements for the next two years," Yiu Jingbo wrote in an open letter to employees. And we have already worked out a framework agreement with the investors of Warburg Pincus, its and DCM to invest 100 million dollars in the next two years. In addition to this investment of 5 million dollars, I still reserve the right to reinvest, will be to ensure the founder and management of the largest shareholder position, to ensure that the company's development direction and rhythm. ”

May 2011, 58 with the city announced the acquisition of Japan's similar enterprises recruit company's strategic injection, the end of the year to complete the D-round financing. "The amount is huge, but it hasn't been announced yet, enough for us to use our current strategy for a few years." We want to finance is to rob this time difference, to use more input to do two things well: open up the market, cultivate users. "Yiu Jingbo said.

Yang Pk Chen Yao

At the beginning of 2011, Yang Hao launched the Internet enterprises through television advertising, outdoor advertising, Subway bus mobile advertising brand, do traffic patterns. This classification information website industry competition threshold to the billion Yuan club, no money play not turn.

Entrepreneurship nearly seven years, Yang Hao-hu has been very distressed and people do not know net, and he needs to cover the crowd, there are a large part of the Internet habits are very irregular, "no specific internet media can cover them", such as housewives, restaurant attendants, moving labor, drivers and so on. "We would like to be able to use offline advertising coverage." "This is the original intention of the innovation of Yang Hao Chung advertising model."

December 2010, Yang Hao-hu decided to put into action. He consulted, including CCTV, "Do not bother", "every day up", including the mainstream media and well-known programs, "We want to do in the year Eve advertising." Then Spring Festival 7 days a day more than 60 times a high density play. "Yang Hao-hu wants to catch the Golden node, the most demanding category information--after the spring festival.

December 25, net from GE, Big S, Chen Yao and other stars among the selected Chen Yao as the advertising spokesperson. January 10, 2011, the ad shoot. On the day of filming, Yang Hao-hu personally ran to Shanghai to communicate with Chen Yao.

For this advertisement effect, Yang Hao Chung quite complacent: "Originally is when the brand dozen, did not expect after the traffic directly doubled." 30 million of the total input to net brought hundreds of millions of visitors. An average of 3 cents a. ”

NET's advertising campaign made Yiu Jingbo unexpected.

In Yiu Jingbo's view, he never thought that technology companies need to do TV commercials, outdoor advertising. "We don't think this is an internet company to adopt the promotion way." But Yiu Jingbo did it. He said: "Later we think of the problem, not others do we have to do." But the number of users, the popularity itself is part of the user experience. ”

After careful analysis, Yiu Jingbo decided to invite the hot play "palace" heroine Yang to do the spokesperson. Yang was also a 58-city user in the age of students. "Yiu Jingbo said. The overwhelming amount of advertising also brings huge clicks to the 58 city. Yiu Jingbo has positioned the subject of the next ad as "reliable".

For the victory of this advertising war, net and 58 who wins who is negative? "The effect is the same, but they are twice times the money," Yang Hao-hu said. Yiu Jingbo, "I'm sure we won." They picked it up first. ”

Who gains first?

The huge amount of advertising investment has promoted the brand influence, has brought the huge website traffic, but these also have not turned into the profit. About NET, 58 with the city "capital chain tension", "huge loss" of negative news constantly.

Yang Hao-hu defined This period as "strategic deficit status". Yiu Jingbo stressed: "We want to profit in minutes to be profitable." "For the 58 city and net, it is more important to seize the market now than to profit."

Yang Hao-hu and Yiu Jingbo often focus on each other's newest products. After 7 years of leapfrogging, net, 58 and the city began to show a different profit focus.

Net income source is mainly classified ads, it for housing intermediaries, recruitment units, moving companies, pet shops and other products to provide targeted, charging a certain fee. NET also in the original brand products continue to develop further. For example, to create a short-term rental online trading platform-ants short rent. "In the field of renting to do the first. "Yang Hao-hu said.

58 the same city will be the profit direction to rely on local service businesses E-commerce, such as restaurants, photography, KTV, leisure and entertainment. Through the on-site verification of the merchant to pay a deposit after 58 in the same city "online shop", thousands of yuan a year to the marketing costs can be released to the platform at any time, "can be completed online transactions, purchase, I will let him have more exposure opportunities." "Yiu Jingbo Concept" 58 with the city from the view of the information to direct booking, make a transaction.

Yiu Jingbo and Yang Hao-hu both believe that a good user experience is the begotten of the company's future survival.

In order to get user feedback, Yiu Jingbo has customized the "58 City" keyword on Weibo, and spends a lot of time browsing micro blogs and forums every day. Yang Hao-hu Stick to the law of his own business so far--fast geoscience, rapid change. "The user experience to do a good job of the user's services, the company must be valuable." "Yang Hao-hu said.