Why the subversion of the Internet intermediary from the rental housing?

Lei Jun's seven words of Internet innovation: focus, extreme, word of mouth, fast, the end is a word of gold, when a large number of entrepreneurs holding the "Let the Bullets Fly" in the "If you live, sooner or later will die; if you die, you will always be alive, "the mentality of the Internet to play life with the sweeping and subversion of the industry one after another. Clothing, food, housing and transportation of the four major scenes of the stubborn bastion of "live" naturally became the ultimate goal.

The reason why the Internet of real estate is so slow is not only because of its heavy asset model is an important pillar of the country's economy and people's livelihood, it is extremely difficult to easily pry, but also because it has formed a set of mature and solid offline business system, leaving aside the sale of new homes, the stock of housing and rental transactions have been relying on the traditional intermediary store model in the closed operation.

Therefore, the emerging Internet model is based on a threefold consideration:

Searching for high-frequency and immediate need scenarios

Latest market surveys show that in 2015, about 25 percent of Chinese people have a need to buy a home, 50 percent of which are looking for a more livable environment, and another 40 percent are concerned about the living space and quality of life, which is a real need. This is a real demand that is extremely difficult for companies without sufficient background and resources to grasp, so the Internet model has logically discovered another high-frequency demand for rental housing spawned by high housing prices.

The biggest difference between Internet companies and traditional industries is that they have a very different insight into the status quo. According to the 2014 data released by 58Tongcheng, 91,000 people in Beijing are looking for a whole room for rent every day, and 37,000 people are looking for a room for shared rent, and behind the massive demand is the inaction of the traditional housing intermediary for no other reason than that the commissions are lower than those for buying or selling a room, and that the customers' needs are changing, and that it is not good to do business, and for For Internet companies, there is demand, there is traffic, there is traffic, there is everything, this is a blue ocean.

Creating and meeting demand was originally the Internet company's specialty, the traditional housing intermediary stores + broker one-to-one model, the fatal lesion is inefficiency, so that the landlord's average vacancy rate of 23 days, the rise of the Internet companies such as Aiya Jiya marketing + free + APP + subsidies, no store light capital model in the rapid collection of customers have a natural advantage in terms of efficiency naturally crushed the traditional intermediary. The traditional intermediary, the last chain home also simply divested the rental business to do Ding Ding rent room.

Perfection of the broker model

August 2014, the State Council announced the "decision on the cancellation and adjustment of a number of administrative approval projects and other matters", which ranked the first is the real estate broker, the sudden abolition of the threshold of the license qualification to make the housing intermediary quickly transitioned to the era of the universal brokerage, which makes the Internet intermediary listings and brokers in the era of the broker. Internet intermediary listings and brokers on the platform free flow has become possible.

For example, at the beginning of May, the number of employees of Aiya Jiya was 6,000, mainly concentrated in Beijing and Shanghai.

In November, the number of employees of Aiya Jiya had exceeded 16,000, spreading across the country's ten largest cities, and it has become a large national real estate agency group. Most of the Aiya Jiya team is made up of brokers, who are attracted by the lure of a base salary of more than 5,000-6,000 yuan, giving up the original traditional way of operation of the large single dead to try to use the Internet thinking of the order incremental mode of income, which is a completely new experience for them, bringing two problems:

1, brokers found that the reduction of the commission (Aiya Jiya is half price in Beijing, Shanghai and even completely free), although affecting the quality of life of the real estate agent, but also the quality of life of the real estate agent. Shanghai is even completely free of charge), although it affects their average income, but the faster turnover of listings mobilizes the enthusiasm of homeowners, and the number of singles does improve, the side effect is that the intensity of the work is increased and it is not possible to cultivate high-quality customers, and the competition between brokers becomes more and more intense;

2, if the platform lacks a mechanism of constraints on brokers, such as brushing orders, hidden listings, and concealment of commissions, this kind of situation will also occur in the Internet agency. Also will appear, love house JiHua each single has 450 yuan reward, this industry average of more than 200 incentives, it is very easy to induce similar Internet travel brush single impulse, but considering love house JiHua co-founder DengWei originally have bumblebee taxi project experience, should have enough experience to deal with it.

Recently, Aiya Jiya completed its Series E financing, totaling $150 million. The company's cumulative financing reaches $350 million.

From high-frequency scene to high customer unit price

Internet intermediaries and traditional intermediaries in a number of battlegrounds have exchanged blows, but one of the most important of the platform of the battle, regardless of the traditional intermediary of a single store to cover the regional flow of people model is not a class of McDonald's real estate business, which is the Internet's full flow of demand collection and *** enjoyment of the must be broken! offline geographic limitations, the real fight is the demand for the ability to quickly transform.

From the point of view of the inventory housing market, as of March 2015 the top three are still held by Chain Home, I Love My Home, and McDonald's, with Soufun coming in fourth. Although this is a coveted market, but the Internet intermediary to take the lead to break the game or to rely on the rental business. According to a data report released by 58 Tongcheng, the first and second runners-up in China's supply of whole-room rentals in 2014 were Beijing and Shanghai, with tenants favoring core areas such as the CBD, and 80% of the demand focusing on one- or two-bedroom apartments, with no obvious preference for whole-room and cubicle-style rentals, all of which suggests that the demand is supported mainly by the Internet company's favorite young demographic.

While the rental business in first-tier cities maintains a relatively fast ringgit growth, the upside of unit rent is limited, and the fierce competition for rushing volume has forced all players to offer crippling apps, with some Internet intermediaries focusing on installment payments, others directly doing high rebates, and even more making efforts to engage in networking and direct signing. As for the five rounds of financing in more than a year, the love house JiYa in Beijing's share has from nothing to do 12%, in Shanghai control more than 90% of the rental and inventory resources, the expansion of the speed of the industry is exciting.

The demand for housing is relatively low-frequency in terms of clothing, food, housing and transportation, but renting is a high-frequency business in terms of homeownership. Aiya Jiya such as Internet intermediary enterprises, in building up the rental platform and began to release the volume, immediately bet on the second-hand business, to reach "from high-frequency scene to high customer unit price" of the change of road beyond. Obviously, there has been such a high-powered warning: once the vertical ecosystem of similar housing intermediaries gets rid of the original regional human flow ecology and comprehensive Internet, supply and demand two-way transparency, it can only be the winner is the king, the winner takes it all, to complete the "air store" business closed-loop key pivot point there are three:

1 fast rush volume, and began to release volume of the second-hand business to achieve "from high-frequency scene to high unit price" change beyond. 1 fast volume + avoid brush single

Free subsidies and star brokers is only the primary competition of the Internet intermediary, very easy to form a similar Internet travel like vicious brush single competition, love house Jiyu allegedly mastered 70% of Shanghai, Beijing, 50% of the housing, last year, in Shanghai, to achieve a per capita transaction of 8 single, the efficiency of the traditional intermediary really crushed, but free of charge! There is no threshold, the influx of a large number of homogenized companies has illustrated this point, so the spell efficiency and spell conversion is the core, there is no shortcut to go, to know, the United States of America's Internet intermediary Redfin in the home base of Seattle, such a very innovative atmosphere of the city struggled for nine years, the market share has not yet exceeded 5 percent.

2 Effective control of service details

Traditional intermediaries are known for their "reputation", but have Internet intermediaries hit this pain point? The common service flaws and risks are avoided? This is the most important thing that you should pay attention to in addition to the only fast and furious. First of all, false listings still exist, the current stage of the Internet intermediary is only a platform, a lot of information is still in the hands of the agents with whom they cooperate, and secondly, the quality of the broker is not satisfactory, the traditional intermediary lingering habits of the era, which need to be Internet-based customer and employee management systems and other advanced tools in the support of big data in order to solve the problem completely.

Aiya Jiya on-line and off-line service connection is very under the effort, APP support preset multiple conditions to search for suitable housing, and then according to your viewing time, the system will automatically deploy brokers, this service is through and one-stop, brokers accompanied by the whole process until the signing of the contract, the advantage of doing so is that the Aiya Jiya control of the transaction of each link, you can honesty, efficiency, complaints and so on. The service link in a timely manner to deal with and solve the service various defects in the service.

3 profit model sustainability

Internet intermediaries and most O2O startups are the same as GMV to measure the valuation, so the secret of the water data is understandable, but holding up the banner of commission-free rental business is absolutely unable to carry the profitability of the expected, not to mention that there is also Dingding Rent, Ping An good room such a strong foundation of competitors, so the future strategy of the Internet intermediary will inevitably step in the dust of the Internet travel: first grasp the first-tier cities of rigid demand, and then to meet the demand for improvement, the channel to further sink to the second-tier cities is possible, but not mandatory, insufficient demand for the third and fourth tier cities will not be considered at all, in the horizontal expansion, from the small profit of the rental business to the more lucrative new homes, Inventory and other businesses, the transition is almost inevitable.

To this day, no one should doubt the Internetization of China's real estate industry, but Chinese people are accustomed to seeing is believing, which requires Internet intermediaries in the information collection, screening and filtering, as well as offline service links to undertake and control to make more efforts. In the end, the Internet intermediary initiated by the elimination of commission, the elimination of fraud and even the elimination of intermediary itself, the just war should not be at the cost of zero service.