The internet's subversion of the funeral industry will come mainly from 5 aspects

Absrtact: When we choose to change an industry by O2O, we usually consider such a few questions: 1, the industry volume, the growth is considerable. 2, the industry's offline part is enough dispersed, information asymmetry is deep enough. 3. A link to the industry

When we choose to change an industry by O2O, we usually consider a few questions:

1, the industry volume, the growth is considerable.

2, the industry's offline part is enough dispersed, information asymmetry is deep enough.

3, for some sectors of the industry, including consumers or businesses, can be economically viable way to provide enough value to pry their internet.

Applying these three criteria to the funeral industry, you will find that some conditions are almost perfect:

1, last year, the domestic statistics of the funeral industry output value of about 50 billion. According to data from the Ministry of Civil Affairs, China's death of nearly 10 million people per year, per capita funeral costs estimated 3000 yuan (already very conservative estimates), only the funeral only one of 30 billion markets. The total market potential is estimated at more than 100 billion per cent of the burial grounds and the storage of ashes, as well as the inability to incorporate statistics. If the existing funeral industry chain extended to cover legal services, hospice, catering and other joint consumption, the market volume is more substantial. At present, China's elderly population is over 200 million, the aging ratio of nearly 15%, and the accelerated growth trend, the relevant industries will benefit from China's aging tide.

2, the funeral industry service flow is extremely cumbersome, suppliers to small, scattered, disorderly as the characteristics. From body handling, legal procedures, funeral planning and implementation, funeral supplies and facilities procurement, to the purchase of cemeteries and eventual burial, before and after the more than 10 projects involved, need to butt n suppliers. The most fatal is that the entire service chain is extremely opaque, too many links (such as the shroud after at least two hands after the factory), the quality of service is not standard, the price is high (funeral equipment prices more than 10 times times the normal), the consumer experience is very bad.

3, it is because of the poor experience of the traditional funeral industry, the internet to intervene space. For users, the Internet can provide more transparency and freedom of consumption, through the integration of supplier resources can also provide a one-stop solution. For businesses, the Internet can improve its cost structure by optimizing industrial chains and helping quality businesses get bigger markets. Personally, these two points are users more realistic pain points, but also network tools to pry the traditional funeral industry the most powerful lever.

In the entire funeral market, graveyard turnover accounted for more than half, as we joked: lying can earn money in addition to the sex industry, is the cemetery developers. As Asia's largest funeral "real estate" company, the longevity Park relies on high-end cemetery development and sales, creating more than 600 million revenue per year and 80% of the high Maori myth. The Hong Kong stock IPO raised more than 1.6 billion dollars last year, and it was 678 times times oversubscribed. At present, the company's market value of nearly 9 billion Hong Kong dollars, than the IPO growth of more than 40%.

The attitude of the start-up company towards the funeral property is contradictory. On the one hand, the development of high-end funeral property has proved the user's tendency to pursue personalization and consumption freedom (which is generally preferred by internet companies), and some startups can also find opportunities as a subsidiary of the funeral and interment industry, such as the "Snow Angel", which is mainly a cemetery group purchase, has already got 2 million But on the other hand, the abnormal development of the funeral property also squeezed the user's consumption in the funeral goods and services, and the two are the main battlefield of the funeral O2O.

Fortunately, the current funeral supplies and service industries are growing, and there is enough blue sea for the internet to reclaim. In the funeral O2O recently more active is "the other Shore", the company through the online virtual storefront marketing brand, will guide customers to the line of the self-employed entity shop consumption. "The other side" commodity prices are generally lower than peers, hope to rely on Word-of-mouth to create economies of scale, coupled with lower store rents and users to obtain cost profit, rather than rely solely on the gray pricing. At present, "the other side" has obtained Xiaoping investment, allegedly more than 60% traffic from the line.

In fact, objectively speaking, "the other side" does not provide an industry-level solution, the change of meaning is not deep into the outside of marketing levels, more often like a funeral version of the Huang Taigi. The funeral O2O We are looking for should be deeper and more industry-specific than anything we can see today. In my opinion, the Internet's subversion of the funeral industry will come mainly from the following 5 aspects:

1, from the cultural perspective to reshape the funeral experience. The inheritance system of traditional funeral rites in China has been broken, and the channels and contents of the education for funeral and burial are completely different from those of the previous generation, and they have completely different understanding of the value of "dignity" and "remembrance". For future funeral users, they are craving a new culture-shapers, a funeral brand that caters to modern emotional structures, and a well-designed funeral experience. Friends who have seen "encoffined" should be impressed by the serene, dignified funeral process.

2, the industrial chain of transparency. The grey area of the funeral industry needs no further elaboration, and every user knows he will be slaughtered. If Internet service can let the user be "slaughtered" a little bit less, or can let "slaughter" the customer lighter some merchant to stand out, all is to this industry positive promotion, and also not difficult to obtain the commercial success.

3, to give users more freedom of consumption and control rights. Personally, the funeral industry and home furnishings, weddings have a lot in common, and now these industries have been validated in some models, can be funeral O2O for reference (reference to our previous report of the Turkish Rabbit, Geek Home). And through the main line of these patterns, is how to organize and shape the industry resources, so that users enjoy more personalized service, but also to a certain extent to control their own consumption choices.

4. Reshape the supply chain (B2B2C). In view of the fact that the funeral experience mainly comes from the offline, the funeral O2O relies on the offline link to a considerable extent. Then how to service and the business under the control line, it becomes a problem to be considered. Entrepreneurs may be able to build a business-to-business market where supply and demand information can flow more efficiently and weaken the influence of traditional distributors, helping small businesses optimize their cost structures. can also be deep into the upstream, the goods, professionals, training, brand and other upstream resources and capabilities to the C-terminal experience-oriented integration, in the form of similar APIs for small and medium-sized business calls.

5, new products, services, new market development. Under each route, funeral companies have shown us their creativity in products and services (such as making artificial diamonds from the remains of carbon), and there is a particular concern about the potential opportunities of the two or three-line cities. Shanghai's GDP accounted for only 3.8% of the country, while the funeral industry accounted for 10% of the country's output. Excluding the graveyard price, population consumption habits and other effects, I believe that this figure to a certain extent also reflects the two or three-line urban funeral market deficiencies. We know that the funeral industry in the two or three-line city will eventually rise, but it is not certain which day it will come. If one day this long tail is launched, Internet funeral companies will be able to rely on their channels and brand advantage to explode huge energy.