Vertical Electric business logic: Selling houses, selling cars the same?

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

The auto IPO, which rose by 76% on the day, SouFun's share price has risen more than 150% per cent in the past year. These two websites are playing the electricity quotient recently, what common logic do they have?

If the auto is not listed, the vertical site may also be forgotten in a corner. The pattern of vertical website looks mostly not "sexy", imagine space also seemingly limited, but if look at income, will discover fact is not so: Take SouFun and Auto for example, SouFun 2013 third quarter revenue 1.123 billion yuan, net profit 586 million yuan; Auto 2013 third quarter revenue of 331 million yuan, operating profit reached 167.5 million yuan.

In addition to strong revenue, careful analysis of the two Web site development process, we can find many similarities: recently auto involved in the electric business, began to sell cars, in the "Double 11 car purchase Festival" Harvest quite abundant; The house was officially released on December 16, "House Search financial Services platform", hoping to further facilitate the transaction. They all from the information and media platform, into the service platform, the trading links in the step in the step-by-step, which will make vertical site more space to imagine?

How do they play from the media to the electric dealers?

An average of 3.67 million yuan per minute of the order, 24.7 cars per minute is ordered-this is the 2013 auto "Double 11 car shopping Day" battle, the same day auto complete the total order of 2.643 billion yuan, order 17,776 vehicles.

Based on this, some people called the 2013 Automotive Electric Shangyuan. 2.6 billion yuan a day of sales, although and the day cat 35 billion far, but enough to shock people, after all, just a car category, and the first time.

The car festival, is auto first foray into e-commerce. "We used to combine brands and distributors to do offline activities," he said. "Auto CEO Qingeo told the" Entrepreneurial State "reporter, for the total order of 2.6 billion yuan he is not surprised, the reason is that auto had done offline before the car activities, but this time put online, using the Internet way.

What's the difference between online electric dealers and traditional car-buying festivals?

Auto's approach is this: in early November, the car festival began to accept user reservations, users only pay 499 yuan deposit, you can get a car code. In the "Double 11" day, the user chooses the desired model, the submission is completed can go to the line of the 4S shop to lift the car. Compared with the offline car purchase section, the online model is no longer subject to geographical restrictions, the "radiation" range is broader.

Throughout the process, auto acted as a platform role. If the auto business as a B2C++O2O model, we can find a similar company in another industry-Ctrip, it through the Internet and information means, the hotel booking standardization. The appearance of Ctrip makes the transaction difficulty of the user and the Merchant House greatly reduced.

In the entire business model, auto is the aggregation of car buyers and offline distributors, changing platform. Original consumer car, must go to 4S shop, bargain. And with the car festival, Auto has done for consumers and dealers "game"-The price down.

If the auto represents the attempt of the automobile electric dealer, the house search is the proof of the real estate electric quotient.

December 16, 2013, SouFun officially issued "house Search financial Services platform", stepped into the internet financial sector. SouFun in a specific city will be selected Third-party financial products and services, through the SouFun provided to the search room members to meet the user in the purchase of homes, home, decoration process needs.

"We were thinking about it a few years ago, but we were immature and didn't understand it objectively," he said. In recent years with the development of our electric business, closer to the trading links, found that there are a lot of things can be done. "On the Internet financial business, SouFun vice President Zhaohongjiang told the" Entrepreneurial state "reporter, gradually found that the user's needs and trading links to the involvement, so that every step of the house to go to the power of the natural.

Zhaohongjiang refers to the electric business, mainly refers to the search House card members of the new House group purchase business, for brokers SouFun shop business and home business search house. Search Room Card member business can be likened to the early in the airport, Ctrip distributed "Ctrip card", through this "free" mode, Ctrip obtained an earlier batch of members, built a huge call center, this is the first mouse + cement mode. The user registers "free" the search room card to be able to enjoy the integral gift, the search house cooperation real estate exclusive preferential treatment, and also can participate in the house search to hold the View House group, buys and so on activity. All business models are no more impressive than "free".

Through the search room card, search the room to obtain a huge membership (currently has more than 15 million card users). With the basis of C, the search room of the electrical business path to rapid development. In the figures, we can also support the development of the business of the search for the premises: search for housing the revenue from E-commerce services in the third quarter of 2013 was $49.7 million, up 94.2% from 25.6 million US dollars in the same period last year.

We can find out the advantage of the platform of Search house from the new house purchase business of the house-search company: Click to enter the search room of the Amoy Room help page, you can view the ongoing group buying real estate; Click "I want to participate", the search room will jump out to two boxes, one is a member login, one is not a member fast booking area. Most of the real estate will be labeled "Search House members, enjoy XX concessions." This differentiated operation makes it almost impossible for a "non-member" to become a member because of "free".

Search the room more members, search room can and more real estate "game", there will be more "search room exclusive".

"A person to go and development negotiations, is not to come out, but the use of the force of the group to work with developers, the strength is reflected." The biggest feature of the internet is that it will have a lot of power to bring small needs together and negotiate with any big supply. ”

When it comes to the energy of the platform, zhaohongjiang it to the individual. He thinks it is the aggregation of a small individual, can and developers to game. Search the house to do the internet finance, all follow this routine. "We are not doing finance to finance, it must be to facilitate our members, do finance to talk to the bank, and the new house and development negotiations are the same." All the problems related to the house and home, the search room can be solved. ”

Why is it extended to the trade?

Both sites extend to deals. Today, whether it is auto or the financial search house, in the outside world, it seems like a sudden jump out, but from the process of our interview, the reaction of the two families are surprisingly calm. To understand the reasons for this calm, I think can be summed up in six words: User-oriented.

"Auto Go today, are following the changes of the user." "Qingeo explained that from the initial evaluation, test drive, and then to today's electric business, are the results of user-driven, rather than" layout "" strategy. " "After reading the evaluation, the price, the user will say you can get a car, then we do." ”

From the user's point of view, Qingeo's "Guidance theory" is not difficult to understand. The first is the property of the commodity. Cars can be classified as "standard", but there are two differences between cars and 3C digital: high complexity and large total merchandise. High complexity mainly refers to the number of parameters, before the purchase need to do a considerable amount of "evaluation." Auto early is to do such things, through the EGC (edit generated content) way, let users see more professional content. With the increasing specialization EGC, the quality of UGC is gradually driven.

It can be said that auto in the early years has been committed to solve the user's "purchase decision" problem, decision-making problem solved, what is the next step?

Buy It! If it is not the unique property of the automobile industry, Auto's electric quotient is not necessary. In terms of price transparency, cars are much lower than 3C and home appliances. To 4S shops, consumers need to do multiple rounds of "game" with salespeople. High commodity prices also make it possible for consumers to reach deals longer than ordinary consumer goods. In such an ecological chain, whether a platform can be born, so that both sides reduce transaction costs, increase the probability of trading?

From both ends of the trading link, Auto is the right platform. For car dealers, Auto has a large number of users, information interaction data, can be "sales leads" feedback to the dealer; for users, auto can bring individual forces together, through the power of the platform and dealers "game", the effect is naturally better than the individual users.

SouFun's electrical quotient logic, and auto have a lot of similar. First do a vertical portal, so that consumers get professional property information; The user obtains the real estate information is only the first step, the second step is the purchase decision, this step resembles auto's evaluation. Because of the price and complexity of the house, consumers are more difficult to make decisions. Therefore, the soufun of the Housing group, electric business and so on, on the internet, online finance, but in order to better promote the "buy."

Two have entered the electrical business, downstream users and manufacturers are the same choice. Because the platform of "electronic commerce" can better contribute to upstream and downstream transactions.

The whole platform: the future of the same?

"You can think of us as a public comment on the car category." When it comes to the business model of the future, Qingeo this analogy with the car service market. Judging from the market capitalisation of auto, which has reached 2.8 billion dollars, it is difficult for investors to see growth if it is purely a media platform.

And for soufun future layout and space, vice President Zhaohongjiang think the value of house search will affect the entire industrial chain. "We want to be a platform for connecting real estate and consumers. Before buying a house, the search room can provide the information service, when buys the House may provide the loan service. The future can also add other products to meet the decoration needs, insurance needs. As long as the housing, home related to the future can be found in the house. ”

From the industrial point of view, the real estate search house is broader, the current real estate market is China's largest market, the value of house search is not only to see the House group, Amoy room to help such a new business, but with the house-related business, such as second-hand housing, decoration, home and so on. But the biggest space is not these three dollars, but finance. Because of the business related to the house, almost all have the demand of loan.

"What is the advantage of the Internet?" is not to reduce transaction costs, improve the efficiency of the transaction! Members are my clients, developers are my clients, and brokers are my clients. Search room to play the role of the platform is to get through the industrial chain. ”

Aside from market capitalisation, we see vertical web sites causing increasing concern.

The two industries of automobiles and real estate have huge scale and market, so the professional media platform can also get good income. Auto has been profitable for many years, SouFun in 2012, earning more than Sina.

In addition to the media platform, due to the high degree of professionalism, auto, search rooms can also be more involved in trading links, whether it is the Auto car Purchase festival, or the house to see the housing Group, financial services, are through the power of the platform to influence the industrial chain, not only improve the efficiency of the transaction, but also reduce the cost of both sides.

Can intervene in the transaction, in addition to own users, and professional degree is inseparable. "We can plunge very deep and we can serve our customers in 106 cities." We do not socialize, games, only the real estate business. "For professionalism, Qingeo also expressed a consistent view:" Auto future only do what you are good at. ”

Search room and auto development path, in addition to their own operational capacity, and the industry's particularity has a great relationship: high decision-making costs, large total merchandise. Because of the high cost of decision making, consumers need to keep looking for information in order to more professional knowledge of the commodity, and auto evaluation, property Search house information and look at the housing group are in the solution of this problem; Because the total amount of goods, so that consumers have a certain demand for concessions, and auto car shopping day, the purchase of a room to solve the "discount" This problem.

Through the search room, the auto of the electrical business Road, we can not find the common logic: in a vertical area, through the specialized operation, thus participates in the trade link, then transformation and affects the industrial chain. I'm afraid that's the value of two websites.