Why am I not optimistic about the domestic model of the 58 city?

Last week, 58 with the city to borrow new brand 58 home to officially enter the domestic market. Founder Yiu Jingbo said it was expected to recreate 58 of the same city.

58 with the city is the information classification service providers, two years to accelerate the vertical, the establishment of a semi-closed-loop platform, but the whole can not take off the past color: breadth is advantageous, the depth is limited, can not complete closed loop.

Into the domestic O2O, revealed the crisis of 58. However, as a listed company, 58 of the same city is indeed quite brand effect, flow advantage, financial strength, plus its past several years of information services accumulation, into the domestic economy does meet the conditions of change.

However, this area is a relatively stubborn field of information, single brand and flow advantage is difficult to pry market. It needs not only the landing of bitter force, but also refinement operation. So far, bat has not been able to penetrate. and combined with 58 of the city for the 58 home positioning look, it does not seem to conform to the current situation.

Mutual stroke

Look at 58. Yiu Jingbo first day to render the traditional domestic service is not standard, and then tell the location of 58 home: Through the Internet technology subversion of the industry, so that 58 itself into a domestic company, the whole process Control customers, send aunt.

As early as 3 months ago, 58 city in Beijing has launched 58 home brands, to try to reform the traditional domestic service industry, mainly two: one let the employer satisfied. means through customer service quality and performance rewards and punishments combined to eliminate the loafing, two let cleaning aunt satisfaction. Means are processing funds, skills training, enhance the professional space.

I think there is a lot of risk in this position. It has obvious contradiction with the open features of the 58 city. We know that almost all O2O information can be displayed on 58 platforms, including, of course, countless domestic companies offline. They are 58 of the same city customers. But 58 of home to become the online domestic platform, these customers become competitors.

See how competitive the potential competition is. Not long ago, the country's largest O2O home economics platform, "cloud housekeeping" issued a report: only one or two-line cities, there are about 10,000 traditional domestic companies. This means that 58 home to become 1 domestic companies, a huge customer base, overnight will become rivals.

58 Home will operate in the name of an independent company, and will rely on the maternal brand and flow advantage layout, but this advantage, the actual expansion may not be able to play out.

Sun Li, vice president of Cloud Home Economics, said that the domestic market does exist many nonstandard, but the existing intermediary still has the value of existence. For example, they are familiar with the community, with regional customer resources (employers), to understand the bottom of the service is the aunt's survival status, service psychology, is limited to technology, team, professionalism, coverage ability, inability to change alone.

58 home thoroughly "to intermediary", directly docking employers and aunts, is the most ideal state. But the whole market is not mature, the actual operation will certainly suffer.

It is not so easy to cross the intermediary directly. Million home intermediary can not be reconciled to the core resources directly to 58 home. The development of user and Aunt Resources, will greatly lengthen the extension cycle. Of course, 58 home now have the mother support, will be set up online service network, but also money advertising, short-term will have a certain popularity concerns, but to the C end of the real results, I am afraid it will not be smooth.

Sun Li revealed that the North has a peer, is also "decisive" to give up the intermediary, since the establishment of stores, the use of advertising effect directly develop the C-end Aunt resources, but also adopted a very tall promotion strategy: to the Aunt Free mobile phone.

This attempt to detonate the short-term means of not realizing that Aunt groups in the current information society status: Most of them are outsiders, especially in remote villages, do most of the mobile phone, but rarely use the app. Strictly speaking, this group has not really integrated into the universal Internet life. Finally, although this peer to the aunts to do the training, the effect is not obvious, a high-profile, business stagnation.

Li said that the group of aunts to reach today 80, the degree of integration into the Internet, 4-5 years. This cycle, they also need offline support, mediation and a lot of accessibility, "unless you turn all the aunts into employees, it is not realistic."

That seems to point out 58 of the risk of getting home to kick off an intermediary self-employment, direct access to Auntie and employer models. The same day, Yiu Jingbo made clear that 58 home and aunt relationship between the platform and personal relationship, not employment relationship. Put in reality, also impossible, if the national, Aunt Quantity count is massive.

The model of Cloud home economics is different from the same city as 58. Sun said the company also advocated "intermediation", but instead of destroying 10,000 of intermediaries, it turned them into platform partners. Cloud home is not directly to do home economics, but the establishment of technology and business, the model similar to "Cat + Amazon", itself is a bridge, intermediary. Just said, in the whole value chain, cloud Home provides technology, large data support, management and operation, professional services, precision and efficiency of the promotion model, etc., belong to the platform services, and traditional offline stores provide the regional market landing services.

"This is complementary cooperation, cloud home economics can help the industry to establish a set of standardized process and standard system, improve the trust of the industry, improve the efficiency of the store under the line, covering a broader market, while the offline intermediary can enrich the landing services." "On the cloud home platform, every aunt is like a sku on a cat, and each intermediary is a service module," he said. In the future, the intermediary category of the cloud home economics will become bigger, they will cover the entrepreneur, brand and so on, thus play the whole social level O2O big platform.

"58 Home Service Module threshold low, low customer price, viscous weak"

Yiu Jingbo and Xiaohua published information that year, 58 home Service module mainly to home cleaning, while covering cleaning/maintenance, family cooking, door-to-door nail, car air purification, moving, repair, unlock change locks.

Landing 58 Home app, at present only opened a home cleaning service. In view of the frequency of the above modules, it can be said that cleaning O2O is 58 home business core. And this path is characterized by high frequency, high standard, experience, such as the threshold is low, can reproduce strong, user stickiness is easily broken.

Moreover, this path choice, must rely on the large-scale operation, otherwise it is difficult to balance the operating pressure.

The positioning of the cloud home is a clear difference with 58. Standardized family temporary cleaning services, accounting for about 30%, and 70% of the service, is a long-term job, such as mother and child, month sister-in-law, the elderly, long-term hourly workers.

The strategy of cloud housekeeping is to start with the most difficult "points" and then expand to "face" and involve more modules, Sun Li said. This is the hardest way to start, because long-term jobs require a higher level of service skills and maturity. However, in the Internet technology, platform support, once the establishment of service quality, standard system, trust system, with brand influence, follow-up infiltration will be greatly accelerated.

The margin difference is implied by the choice of the surface point and the path from points to surface. At present, pure cleaning O2O customer unit price of about 60-100 yuan, and the cloud domestic workers 70% long-term work of the customer unit price at 3000-3500 Yuan. Query 58 Home App on the cleaning service, about 30 yuan per hour. But the average family's request time is long, approximately also is 2 hours mainly.

58 Home positioning, it is clear that you may want to get the chance to come to the next scale. However, in the thorough mediation model described above, this will pose a huge challenge to its independent offline service, perhaps forcing it to become heavier. This in the field of electric business, has already staged many similar cases, many companies in the process, because the front stretched, the increase in human costs, in order to control costs, service quality, consumer experience is often sacrificed. This will directly disintegrate 58 home originally has the parent company's brand, the flow advantage.

Do not underestimate the location and path differences. This also involves the domestic service industry, the problem is the establishment of trust system. It is the whole industry lacks the standardization of the core, than to build a technical platform more difficult.

Sun Li revealed that over the past year, he had run through Shanghai, Beijing, Shenzhen 400-500 offline stores, the purpose is to penetrate the intermediary, employers, aunts, really understand their own difficulties, the service chain in the lack of normative links, to promote the cloud domestic platform service flow and standardization.

This is also the background of the past few years to strengthen training. It compiles a lot of teaching materials, oriented to the intermediary, to their operations management, marketing to establish standards, improve service efficiency and service quality. It also opens an independently developed SaaS management system for free to intermediary use. Data show that, with the cloud domestic cooperation, excellent intermediary store orders increased by 70%, turnover is doubled.

Vocational training for the aunt is to spend a lot of cost and effort. This vocational training, in addition to skills, but also include standardized dress, expression, effective incentives and so on. In addition to the cloud home in the long-term work of the main job, its platform 30% of the temporary cleaning aunt, and finally converted to long-term jobs of the repurchase rate, more than 10%. This shows that the user's stickiness to the platform relies on the establishment of the "trust" system. And this, the pursuit of High-frequency, standardized 58 home, I am afraid it is difficult to do fine, viscous relatively weak.

"US companies have once again taken the lead in IPOs, and China stocks are still in a period of germination"

See empty 58 Home The existing model is not a denial of 58 of the city's efforts, not to deny the market. I very much agree with Yiu Jingbo through the domestic business to recreate 58 of the city's intentions, but do not agree with the existing model and path.

In fact, no matter how 58 home in the future, at least it validates the market value. I believe that it will be the 58 of the city for the capital market to tell the beautiful story.

The market is really big enough. According to the data provided by the Shanghai Industry and Commerce Department, there are more than 2,800 domestic agents and 50.6 million employees. Beijing has registered more than 3,000 enterprises, the franchise of about 1000 companies. Guangdong currently has 16,000 government enterprises, practitioners are up to 3.2 million, of which Guangzhou 1400, Shenzhen 2000.

Cloud Home Economics released data report shows that the first-line city general supply and demand gap of about 10.2 million people, one months before and after the Spring Festival, the gap fluctuates between 30%-50%, the typical demand is childcare, live-in nanny, the elderly care, especially the family pension gap of 70%-80%.

And the market is lack of large-scale service platform. Although the home is the first big O2O platform, but the platform is only about 2,200 stores, 300,000 aunts, 100,000 employers, currently only covers Shanghai, Beijing, Shenzhen three cities. Among them, it has 1000 intermediary partners in Shanghai, home base. Sun said that at the end of 2014, the company will develop 3,000 cooperative stores, real-name domestic service staff of more than 300,000, the national average daily transaction of more than 2000 orders, to achieve tens cash flow on the trusteeship.

Up to now, cloud domestic platform daily orders more than 1000 single. Sun Li said that according to 58 of recent data released from home, the growth of its orders every half month is equal to 1 stores growth, and offline stores deal with the monthly orders about 30, so, 58 home at present the absolute value of growth is very limited.

The huge market and service gap has attracted more predators. Even the bat is in the layout. Before, "Aunt Help" had received tens of millions of dollars of financing. E bag wash has been invested by Tencent Angel, and soon announced the Matrix Jingwei and sig a total of 20 million dollars a round of investment.

Not only Tencent, but also Ali has begun. This April, the mobile phone Taobao online Taobao domestic service "Taobao living home." Sources said that Ali, Tencent had previously had contact with Cloud home economics, trying to inject capital. Sun Li did not confirm the news. But he revealed that before the company had Angel Investment, then a round of financing 4 million to 5 million U.S. dollars, the company is indeed also in contact with some agencies to carry out a B round of financing.

"We do see some of the big investments that some of our peers have accepted, but the market is large and standing in the right." Cloud housekeeping will maintain a very independent operation, the first to do a ' team ', with the Giants will certainly close cooperation, will love but not married, hehe. "he said.

Cloud housekeeping is indeed making full use of bat resources. Up to now, it is the whole industry only with bat complete docking domestic O2O platform, in B (Baidu Direct number), A (Taobao live Home), T (micro-letter public number) of the user, order quantity are the industry first. Among them, Taobao living home, it's the highest order accounted for nearly 80%.

However, China's domestic O2O market, although very large, as in many areas, in the global market, is still the foresight of overseas peers, creating a capital market effect. Founded in 2006, the United States home Economics O2O Platform Care company, after 6 years of local expansion, the beginning of 2012, suddenly rapid international expansion, has entered the United Kingdom and Canada, and acquired the first European O2O domestic platform Besser betreut,2014 year January 24, It successfully listed the United States of the city, become the world's first public companies in this field.

Yiu Jingbo said that 58 of the home will certainly not exclude the possibility of IPOs.

"Care does bring a follow-up effect to the whole market, but the meal is a mouthful." Sun said that the cloud home economics will continue to expand deep, if the threshold, hoping to develop to 10,000 stores, 700,000 employers, 1 million aunts, valued at least 1 billion dollars, and form a closed loop, can really see the effect of the stock, cloud domestic currently there is not a small distance.