Real estate O2O Dark Horse Room Many: How to do the annual turnover of hundreds of billions?

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

July 2014, real Estate Electric Company House announced the completion of the B-round financing, by the Jia Royal Fund, the Speed of light An Zhen China venture capital, Ding Hui venture investment combined 80 million U.S. dollars. Overall valuation billions of. 2014 platform turnover is expected to reach 200 billion. At this point, it was only three years since the company was founded. As co-founder and CTO of the company, Jiancheng witnessed and participated in all the development of the company. South Seven interview Jiancheng, the secret room a lot of high-speed growth behind the story, see how many change this with people living closely, but also conservative, deep barrier of a O2O field.

Complementary team is the cornerstone of entrepreneurial success

The room was created by me and Chi Yi (CEO), Zengxi (COO) three people. Chi Yi and I are EMBA alumni of Ceibs, both of whom Love sports, and then become familiar with the Gobi challenge, in the same group. (Note: "Xuanzang's Road" International Business School Gobi Challenge, organized by a number of business schools, including Ceibs). The Adventure section of the competition section chooses Xuanzang. So far, Jiancheng's signature remains "Central Europe, Goshi". Fourth competition, referred to GE Four, COO Zengxi for Go Jiu. The game is evident in the depth of his life. )

Before starting a business, I have been in Tencent for many years (note: As the general manager of Tencent Shenzhen Research and Development Center), Chi Yi and Zengxi operating a real estate services companies, development is not bad. Then we kept the frequent communication. Everybody wants to do something. Chi Yi and Zengxi at that time the company has done very well, but has been constantly pondering, how to better sell the house, and I was also clearly aware of the shortcomings of the traditional internet and limitations. The development of the Internet to this stage, BAT's pattern has been determined, pure Internet projects to be big and difficult. Only by going deeper into the service of traditional industries can we go further. And real estate is China's largest traditional industry.

On the one hand, the real estate industry for ten years of resources and experience, on the other hand is the accumulation of Internet technology and practice. At the same time, because of the common educational background of China and Europe, it lays the foundation for our communication of language, thinking mode and decision-making mechanism. So we started a business together. How to use the Internet to make selling house more cool? Around the idea, in 2011, the housing platform was born.

How to find the pain point of the industry?

In China, real estate sales are generally divided into two kinds, new homes and second-hand housing, new homes by sales offices, second-hand houses by the community second-hand House brokers sales. Both trading links, trading time is very long. But according to the experience of Hong Kong and Taiwan, almost all houses are sold by brokers who trade in second-hand homes near the community. Real estate in a very long time is one of the most profitable industries, but because the industry is too closed, consumer information, broker income is too low, real estate companies to promote the cost is too high is the industry pain point, which for the entire industry is a headache.

From consumers, because of the number and frequency of buying a house is low, so the vast majority of consumer trading experience is very limited. As the house becomes more expensive, the decision cycle for buying a house will grow longer, about 6 months to 24 months. According to daily habits, most consumers will choose a nearby second-hand real estate broker for consultation. Brokers will be the main source of reference information for consumers. In the process, consumers will slowly clear their own demand for housing. However, this information is limited to second-hand housing information. Adding new information to the new house is no doubt a more comprehensive choice for consumers.

From brokers, a long-term objective is: as a heavy asset industry, the broker group is one of the most important in society. Intermediary industry because of less regulation, low threshold, high degree of marketization, so the people will be very mixed. This is more obvious in the north, if there is no background of college graduates, can not find a job, at least the choice to sell the house. But the broker group is also the pyramid structure, following the 28 principle. 20% of the people in the spire earn 80% of the industry's money, and 80% of the towers have only 20% of the income, and cannot even make up for and meet the expenses and costs of life. These people have a strong incentive to sell and make money. If we can help this group to make more money, it will have great commercial and social value.

From the real estate companies, the traditional sales offices are inefficient. At the same time, the high cost of real estate sales, accounting for the turnover of house sales, such as the Country Garden Company reached 12%, there will be other increases in the future. Rapid sales, while reducing costs, the completion of capital repatriation becomes the most important.

So, we are sensitive to the perception that if we can grasp the needs of brokers, create a service for their mobile internet products, so that they participate in the sale of old and new property, should be very popular. We persuaded the developers to put the new disk on our platform, so that the broker who had only been second-hand housing to promote the house to consumers. After the success of the sale, we charge a commission to the property developers, brokers get incentives, consumers have found the right housing. Three in a swoop, everybody's happy. After exploring the business model, 2013 began to promote the national distribution point. At present, more than 40 cities across the country, penetrating brokerage company stores more than 50,000, more than 500,000 contracted brokers. More than 500 projects, including Vanke and other front-line developers, the estimated 2014 turnover can be completed 200 billion yuan.

Since domestic real estate has been one of the easiest to make money, the industry has no incentive to innovate and change. Search room for a year of advertising costs more than 80% gross margin, net interest rate of more than 50%, than many internet giants company's profits are much higher, do not need to spend the mind to do products. Make the product investment is big, time-consuming laborious expensive. As the real estate industry growth rate slowed down, macro-economic overall downward, lying can earn money in the past, but real estate in the country for a long time is absolutely just needed. The traditional extensive management can not meet the needs of the present. Based on our years of experience in the industry, we understand that online service determines how far we can go under the line. So from the beginning, the entire company's product development team invested a lot. This is an important feature of the Internet team that differs from other real estate concepts.

The company's entire product, technical team most of the backbone from bat, product designers from the micro-letter international version of the main designer, technical backbone including Tenpay founder and master architect, technical director, Baidu Phoenix Nest Advertising data Center director. In other positions are also mostly Baidu and Tencent and other companies backbone. They have quite a lot of experience in large data and technology, so it is definitely a luxury team to set up the Internet business in O2O industry and traditional industry.

Because real estate is a very traditional industry, according to the characteristics of this user group, corresponding to adopt a different product strategy with pure Internet. For developers, brokers and other groups, the house has a lot of houses treasure, the room point pass, customer many, room a lot of brokers, room a lot of variety of app products. Product clusters and piling may not be suitable for pure Internet users, but in the traditional industry, not only can give users a sense of height, while reducing the user's learning and use costs. Whether it is now popular "dimensionality reduction" or previously mentioned "away from the Internet center to do the Internet", in short, only in accordance with the actual situation to serve the industry and users to solve the industry pain point, rather than mechanically way pure Internet. In order to support the product matrix, our core technical team of nearly 500 people, the talent gap is still very large.

The mobile Internet in traditional industries is still very low and there is an urgent need for professionals to help them achieve the Internet. This is also our original intention to open the platform. Everyone is talking about mobile internet, but also elusive, real estate people are very anxious about it, at this time, the room many take the lead to do some technology and product things. Through the technical platform to complete the real estate brokerage companies and brokers, while the technical ability to open up, so that can generate more play, with a lot of internet thinking and technology, service the traditional industry people, improve the transaction rate. Our dream is to use our technology and strength to serve and change China's largest traditional industries.

Play O2O, Internet thinking and industry experience is indispensable

Over the past two years, O2O has become a particularly popular concept, with entrepreneurs and investors piling into it. But according to the experience of a lot of room, to do a good job of O2O, it is not easy. Entrepreneurs enter the traditional industry to engage in O2O entrepreneurship, either they are industry experts, or have team members are industry experts.

If it is pure internet people to do real estate O2O, or simply in the industry for a period of time, it is difficult to operate the project, one or two technology-oriented entrepreneurial talent all era has passed. Internet people think they're smart, but the chances of becoming experts in a traditional industry for a short time are pretty low. To a traditional industry, the real understanding is to need time and tuition fees, many people in an industry for more than 10 years or even longer, also did not grow into an expert, because he has no intention and thinking.

For a complex industry such as real estate, many experiences and lessons are not paid for the cost of time and money. Bystanders get only the nowhere and the experience. You have to have the mind to experience the rules of the game deeply. For example, Lei, although many of his own modules have not done, but he came to the partners are professional talent. such as millet audio and so are looking for the industry's top talent. The people who really can use the Internet to create value in the traditional industry are the people who deep and understand the industry. China's Internet market furniture well-known brand wood industry, the early days are offline furniture manufacturing industry immersed in many years. Companies like Ufida Kingdee, their product managers or policymakers, are certainly not pure internet people or a programmer, but financial people.

(Note: Chairman of the US, investor Cai said that "the future belongs to those who know the Internet in traditional industries", the two views are highly consistent)

The operation of O2O is different from the operation of pure Internet, more is the service under the line. This is somewhat like the American group and the public comment. The so-called O2O, the most important thing is to fall, not like the pure Internet products, with the universality of the, do it will be someone to use. Real estate trade is the most complex chain, must have strong offline service capabilities. This is one of the characteristics that distinguishes us from other teams.

The financing we have just completed in July, everything is natural, not deliberately to pursue capital and operation. Because our platform is trading closed loop, so the project from the beginning in a benign development stage, the previous rounds of financing most of the money in the account, the cost is not much. The purpose of financing is to expand the readiness of the team to increase the company's ability to resist potential risks. We only spend money where we want to know. Once you understand, we will not hesitate to put the money in. We will not do business extension, real estate such a huge transaction link, has been worth the team to ponder and busy, this involves the industry chain up and down, and even the stability of the family and the quality of life, happiness, light this piece is worth studying and in-depth.

This article is an interview with Tencent Entrepreneurial department no.003, South Seven: Hong Yi founder of Wireless, Tiger Sniff and other mainstream technology media columnist, public number: South Seven road