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How should the To-G model pension institutions transform? What difficulties and opportunities will we face?

Editor’s note: This article is from the micro-channel public number “Endowment think tank” (ID: AgeCarePro) , Author: AgeClub Academy.

To-G model (PS: refers to the government purchase service model) is a special existence in China’s pension industry. Many pension companies that rely on policy dividends to quickly complete the accumulation of original capital will face huge policy in the future. Deterministic operating risk.

And “marketization” may become the only way for them to survive and develop. How should these enterprises transform? What difficulties and opportunities will we face?

Writing by Dong Yingjie

Edit Jia Qian

Since 2013, China’s pension industry is about to enter its second five-year planning and development cycle.

As more state-owned enterprises, central enterprises, real estate and insurance crocodile enter, the pension industry seems to usher in a more prosperous scene. However, looking at the capital market, the domestic pension industry is still in a modest profit stage.

Taking the NEEQ as an example, according to statistics compiled by the AgeClub Research Institute, there are currently 13 pension-related companies listed on the NEEQ (see the figure below), but from the analysis of public financial data, only 6 companies can maintain relatively stable profits. rate.

Among them, one company caught our attention. Unlike the other five relatively market-oriented companies, more than 80% of this company ’s revenue comes from the To-G model. This company is called “Beijing Fuan” .

1. Past and present of Jing Fu’an: Fast track in To-G mode

Opening the To-G mode, Jingfu’an will achieve rapid listing in 8 years

Beijing Fuan is an aged care data service provider. It was established in 2008, positioning itself as “science and technology care and smart care”.

By applying for a service patent, investing in the construction of a 96003 call system and a community helper management platform for small helpers, the “Internet + pension”The development model also laid the foundation for later undertaking a number of government pension programs and opening the “To-G model.”

In 2010, Beijing Fu’an and Beijing Aging Office signed an operation and maintenance agreement for the “Little Helper Electronic Server” project;

In 2015, Beijing Fu’an and Beijing Community Service Association, as a consortium, were jointly responsible for the operation of the operation and maintenance management platform and service unit management of the Beijing Office for the Aged-Disability Card.

At present, Beijing Tong has become one of Beijing Fuan’s main businesses.

From the perspective of development model, Jingfu’s closely follows the national policy, and basically formed a pension operation model of “national policy leadership-municipal responsible for taking projects-neighbourhood responsible for response, supervision-street and township responsible for land realization”, It is highly consistent with the model of Beijing’s “three sides and four levels” solution.

From the perspective of resources, Beijing Tongkao has covered more than 90% of the 60-year-old elderly in Beijing. The number of issued cards has reached 4.4 million, and the actual number used is between 3.7 million and 3.8 million.

At present, Jingfu’an has 3.8 million Beijing elderly population resources, and has a number of pension data products and tools, forming a unique core competitiveness.

On December 13, 2016, Jingfuan was listed on the New Third Board. From the data disclosed in the past three years, Jingfu’s overall performance is relatively stable.

The To-G model of this “government pocket” is one of the main reasons for Beijing Fuan’s rapid listing and stable development.

Hidden danger in To-G mode:

Strong business uncertainty and poor model replication

But “To-G Mode” is also a “double-edged sword”, with many problems hidden behind it.

For example, the cooperation process is dominated by the government, and enterprises lack the right to speak; there are obvious differences in local policies and policies, and it is difficult to achieve regional expansion; the government payment cycle is long, and it affects corporate cash flow.

This model obviously lays a hidden danger for the development of Jingfuan.

Beijing Fuan has repeatedly mentioned in its financial report that the company ’s business relies on the government for its operational risks. Uncertainty. “

In addition, the To-G model has also increased the limitations of Jingfu’an in other regions.

According to AgeClub Research understands that Jingfu’an has been in contact with the Waifu market since 2017, but due to unstable local relations, policy differences, and inconsistent purchasing standards in different regions, Jingfuan’s operating model also fell into the process of replication “Difficulties of soil and water” predicament.

In order to solve this problem, Jingfu’an had planned to enter the Fufu market as a third-party outsourcing company, but so far no project has been implemented.

Marketization attempt:

Strengthen the construction of the C-terminal platform and increase the “family pension beds” project

After the liberalization of the elderly care service market in Beijing in 2018, old private nutrition companies have sprung up, and marketization has gradually become the mainstream and consensus of the industry.

Perhaps aware of this trend, coupled with the high risk of long-term reliance on government purchases, Beijing Fuan has also begun a market-oriented trial transformation in recent years, constantly improving market-oriented competitiveness, and developing new pension data products and pension tools. Products, trying to make “more complete business data, more applicable business tools, more extensive business services.”

For example, increase investment in Beijing Tong APP.

According to the AgeClub Research Institute, the Beijing Tong APP for the C terminal was more like an incidental, non-profit convenience service business, with less than 400,000 APP downloads, and the main download users were children.

After downloading, they apply for the elderly with a disability card through the platform, but the actual usage of the APP itself is not high, and the user experience is also very poor.

In order to enhance competitiveness, Jingfu’an plans to understand the real needs of the elderly through big data analysis in the next stage, and then add life services on the APP platform based on the needs.

For example: pension, catering, medical, home care, travel and other businesses. Beijing Tong APP has the opportunity to become an important C-end channel, and the elderly will also have corresponding discounts for consumption on this platform.

For example, in 2019, based on the big data of Beijing Tong, Beijing Fuan proposed the overall solution of home care for the elderly, that is, “family care beds”.

Products and services include: Beijing Tong APP, home care service information machine, SOS and other smart IoT devices, home care bed information management platform, professional home care services, auxiliary medical resources, and emergency assistance services.

According to the expected setting of this service system of Jingfuan, the elderly can basically be “inseparable from old age.”Home, service to home, help always at home “.

2. How to “monetize” 3.8 million C-end customers:

Three opportunities exist

From the above, Jingfu’s model of relying solely on government purchases is not only not replicable, but also has great variables, especially with the entry of more resourceful Internet companies, Jingfu’s market-oriented transformation Facing a more severe form.

But it is worth mentioning that Jingfuan has also accumulated its core competitiveness-big data within 12 years of joining the bank.

At present, Beijing Fu’an holds about 3.8 million people’s pension big data in Beijing. How to realize these data is the key to Beijing Fuan’s sustainable development in the pension industry at present and in the future.

Opportunity one:

Deeply focused data services to realize multi-dimensional data monetization

In the first five years of domestic pension companies, it is a common path for heavy assets to enter and deploy pension institutions, but it still faces profit difficulties in the short term. Jingfuan chose a data service platform model. light.

In 2016, the Family Development Department of the National Health and Family Planning Commission and the Social Welfare Center of the Ministry of Civil Affairs proposed that information technology represented by “Internet +” will be an important means to promote the upgrading of the smart pension industry. form.

This once again gave a good signal to the development of data service companies represented by Beijing Fuan.

For Beijing Fuan, which already has big data on pensions for 3.8 million people in Beijing, it has the most comprehensive and most dimensional customer consumption behavior data, and continues to focus on data services to deepen the “Internet +” retirement model. select.

From the financial report, Jing Fuan seems to have already done so. According to the financial report for the first half of 2019, Jingfuan’s net profit was 107.1 thousand yuan, a year-on-year decrease of 87.43%.

According to the financial report, the year-on-year decrease in net profit was mainly due to the company’s increased exploration and investment in new business areas.

The traditional data service business is gradually covered by the tool business and the information platform construction business. The elderly tools and information management platforms that carry accurate data have become business leaders.

It can be seen that Beijing Fuan has plans to go more professional and focused on big data services.

Opportunity two:

Establishing a platform for integrating consumer resources, Creating an “old version of JD / Taobao / Pinduoduo”

According to the AgeClub Research Institute, Jingfuan has tried to use big data to develop new businesses in the pilot process of market-oriented transformation:

By publishing agricultural product information on several platforms, it has achieved the effect of selling several thousand pounds in the short term. But based on concerns under the To-G model, Jingfu’s business this time isIn the name of “precision assistance”, it has not formed a normal market business.

At present, Jingfu’an has added merchant services on the Beijing Tong APP, and connecting business resources is also an important part of expanding new business.

It is reported that Beijing Fuan has now taken over Beijing’s large chain stores such as Wumart and Jingkelong, and there will be more business services coming in next.

We believe that after Jingfu’an launches home nursing beds in 2019, more business cooperation such as smart IoT devices and medical tools will also become Jingfu’s new business sector in the future.

In addition, reaching advertising partnerships with elderly shoe brands such as Zu Lijian and elderly entertainment platforms such as Happy 50 to divert business will also be a new business direction.

Opportunity three:

Open up channels for nursing homes to acquire customers, Construct “Public Reviews / Ctrip for Nursing Homes”

At present, the average average occupancy rate of Beijing’s elderly care institutions is less than 60%, and there are huge channel opportunities under tens of thousands of existing beds.

In recent years, real estate, insurance and other companies have entered the pension system, and a number of mid-to-high-end pension programs have sprung up, fierce competition in the industry, and homogeneous marketing channels have become obvious.

At present, the average rate of removal of 3-5 people per month for high-end senior care projects is obviously unable to realize the business model, and the emergence of new customer channels is urgently needed.

Beijing Fu’an has mastered all the middle-aged and older people in Beijing from the age of 60. Judging from the age structure, it basically covers both the elderly and their children, which undoubtedly has great appeal to the elderly care institutions.

According to our understanding, the pension institutions can currently provide 5,000 yuan to 30,000 yuan / person occupancy commission for marketing channels. For Jingfuan, this is an innovative business with extremely low marginal business costs.

Beijing Fuan is a typical case of the To-G model in the pension industry, which represents “the development trajectory of a number of government procurement enterprises and the hidden concerns in the future.”

Working with the government is conducive to the rapid development of the enterprise in the early stage, but after relying heavily on government cooperation, it will lose its ability and willingness to survive in a market-oriented way, laying a huge hidden danger for future survival and development.

Beijing Fu’an, with huge traffic and data resources, will be able to jump out of the “greenhouse” and bravely embark on an innovative and independent market-oriented development path. We wait and see.