How to break the “barrier-guest-person” matching barrier
Editor’s note: This article comes from WeChat public account “ Fosun Rising Capital ” (ID: FosunRZCapital), author of Fosun Rising Capital.
In this era, high-tech technologies such as artificial intelligence, 5G, and big data are rapidly emerging, and industry innovation is constantly exploding. Seven years ago and seven years later are two very different worlds. Among them, investment, as an important means of optimizing the allocation of resources in the capital market, has played a key role in boosting. Therefore, looking back at investment, every time a new stage of the industry is re-examined and defined, and the investment logic is reshaped from experience, it has become a weight for us to review the past and judge the future.
In response to the fierce fission of the Internet in the second half of the Internet, Fosun Ruizheng has launched a series of “Reverse Investment” topic selections, from which Fosun Ruizheng’s invested companies and various industries in which it is located, draw ideas, extract experience and reinterpret And define the current hot track.
In this topic, we will review the changes in the residential industry over the past few years and re-interpret the opportunity window of the stock market in the digitalization process. Through our research on Zhuge’s investment in housing, we look back at how “digitalization can advance into the deep water area of the existing housing market.”
Core point of this article:
-
There is still a high degree of information asymmetry in the heavy decision-making process of house buying and selling.
-
With the penetration of the Internet, real estate agencies have entered the deep water zone of the second half of the Internet.
-
The combination of “private domain” and “public domain” products and services can break the “house-guest-person” matching barrier.
-
In the future, the synergy value between different businesses in the real estate market will become greater.
In the era of stock houses, the real estate agent is flourishing
In 2016, the real estate industry entered an era of 10 trillion sales. First-tier and second-tier cities accelerated their entry into the stock market, and the proportion of second-hand housing sales continued to increase.After the year, the second-hand housing market in first-tier cities is already comparable to the new housing market, and the ratio of second-hand housing / commercial housing sales in second-tier cities has increased significantly from 38% in 2010 to 60% in 2016. At present, China’s stock housing transactions have reached 6 trillion yuan, and various local cities have gradually shown different leading enterprises. At the same time, the pressure on destocking in the new home market is high. In 2019, the transaction size of the new home market reached a peak of 16 trillion yuan, and real estate brokerage companies have become more and more important as their sales channels. Ba Shusong, Executive Dean of the HSBC Institute of Finance at Peking University and chief economist of the China Banking Association, put forward the research on the stock market. Domestic mainstream cities have entered the era of stock housing. It is expected that in the next 5 to 10 years, The transaction of second-hand housing will increase from 6 trillion in 2019 to 10 trillion, gradually surpassing the transaction of new housing.
After 20 years of rapid development in China’s real estate market, incremental development has gradually entered into the circulation of stocks, and the complex attributes of low-frequency, high-value and non-standard transactions in the real estate market have gradually begun to emerge, driving the real estate brokerage industry to accelerate its integration. Even shuffle. However, as of now, chaos in the real estate brokerage industry still exists, and there is still a high degree of information asymmetry in the heavy decision-making process of house buying and selling.
On the one hand, China does not have an independent public institution (generally an intermediary industry association) to integrate housing (similar to the US public housing system MLS), and there is no corresponding review and supervision of housing information, resulting in housing information. The large number of repetitions and the uneven quality have reduced the efficiency of the buyer in matching the listings. On the other hand, the level of professionalism of China’s real estate agents is low, 32.7% of real estate agents have no employment experience, 77% of real estate agents are under 30 years old, and the annual turnover rate of brokers in the industry is as high as 120%. Short professional life cycle, weak professional identity, lack of autonomy, low social status, and high turnover rate are typical characteristics of the real estate agent community. Under the background of disordered market competition, brokers create a large number of false listings to attract customers.
Industry forces, the rise of the real estate internet
How to inspire the value of existing homes and do a good job in residential operation services that are more suitable for today’s new retail has become a new proposition for the industry, and it has become the key for investors to pay attention to the representative projects of this track. With the penetration of the Internet, the corporate values of “how to meet user needs” of real estate agencies are constantly changing, entering the deep water of the Internet in the second half of the world.Area. The real basic data of housing, the credit data of relevant institutions and brokers, and the integration and use of data around the brokerage industry format have caused a lot of investment and development of real estate brokerage agencies and platforms in the Internet era.
In this context, although not a pioneer in the real estate Internet field, Zhuge Xunfang still stands out in this industry-wide Internet situation. Different from the traditional internet real estate brokerage platform, the processing and display logic of Zhuge’s real estate listing is obviously different. Through the application of big data technology, Zhuge finds a house and completes the SAAS direct connection with the mainstream brokerage companies in the country, and uses the self-developed real estate search engine to perform real-time cleaning and reorganization of the entire network of housing data, so that each house can objectively show a different The change in the quotation, the intermediary fee and the historical quotation of the intermediary has significantly increased the conversion rate of Zhuge’s real estate page.
At the same time, the real estate brokerage industry has always been a strong experience industry, and customers are accustomed to offline brokerage companies to bring houses to view. Compared with other industries, in the real estate brokerage industry, offline brokerage companies and real estate internet platforms have a mutually beneficial relationship. Even with the full penetration of the real estate industry by the Internet today, online and offline real estate brokerage companies still cannot completely separate and exist independently. The online real estate internet platform needs to provide better traffic and system services, so that users can access the entire process of offline viewing and transaction data. Zhuge Xunfang constantly introduces the latest technology and tools to “arm” brokers, deepening the depth of service to brokers and C-end users. On the one hand, the intelligent outbound system and Wolongyun SaaS system independently developed by Zhuge Xunfang greatly help the brokerage store to acquire customers and improve the efficiency of the exhibition industry. On the other hand, by building a system such as DMP, Zhuge finds a house to accurately match the algorithms of the three portraits of user portrait, listing portrait, and broker portrait to achieve efficient distribution of traffic.
After investing in Zhuge to find a house, the company has now opened search services for second-hand houses, new houses, and rented houses in 850 cities across the country. It has landed in 180 city companies in 2 years, and has served more than 150 million house-searchers. Helped more than 300,000 brokers and hundreds of developers to improve transaction efficiency.
Private domain traffic, maybe the next step for real estate agents
The concept of private domain traffic has been popular since 2018. Players from various industries have entered the game, and investment circles have bet with capital. The real estate industry is no exception. Real estate is not the long-term direction of real estate regulation and control policy, making developers have more pressure to destock.The demand for precise conversion of traffic in the real estate market is also increasing.
Compared with other industries, housing transactions have the characteristics of long cycles and large amounts of money. Brokers need to communicate frequently to gain insights into users’ living needs and give users suitable housing recommendations. At present, the use of social software such as WeChat communication, release of information from the circle of friends, and release of property video from Douyin has become an important means for agents to maintain customers. Each WeChat friend is a potential business opportunity and also becomes the agent’s private domain traffic. Therefore, how to reduce the cost of communication between the broker and the client, eliminate the communication barriers, and increase user stickiness to become the traffic demand of the real estate broker.
For brokers and new home purchase consultants, Zhuge is looking for real estate. Combining industry characteristics, it also launched a private domain traffic version port, which can realize real-time portrait calculation and push for users to access the broker’s “Cloud Store”, and develop WeChat mini programs , And support editing listing video synchronization to Douyin, Weibo and other video platforms. In 2018, Zhuge Xunfang and Alipay launched a smart store mini-program, and developed their own private domain traffic version products, and continuously explored various super efficiency tools and other products.
In addition, both “private domain traffic” and “public domain traffic” are defined for the B-side customer acquisition channel. For house-finding users, they are constantly on the real estate platform with “private domain” and “public domain”. Finding the right house, and only making products in the private or public domain, obviously cannot meet the core needs of users to find the most suitable house. Looking for a house in Zhuge, the broker can also freely choose additional “public domain traffic” service modules, such as “super promotion”, “selected customers”, “super transfer” and other services, which enables the broker to significantly reduce operating costs At the same time, according to your own operating preferences, you can choose the “public domain traffic” function module that is suitable for you. With the user experience as the core, the combination of “private domain” and “public domain” products and services can break the “house-guest-person” matching barrier.
New fission of Internet real estate brokerage platform in the post-epidemic period
Due to the impact of the epidemic, as of mid-February, more than 60 provinces and cities have suspended the opening of sales offices. The east of the Hu Huanyong Line has been fully resumed. At the same time, 25 provinces and cities have expressly stipulated that intermediary agency stores should be closed. The growth rate of real estate development investment in the new house market in February, the newly started housing area, the newly started housing area, the sales area of commercial housing, the sales of commercial housing, the sales of residential buildings, and the funds available to real estate enterprises all recorded a cumulative growth rate of 1998. Lowest value since housing reform, andMany indicators have fallen by far more than their previous historical lows. In February, the transaction volume of second-hand residences in 10 key cities was only 16,325 units, a 74.28% decrease from the previous month and a 59.94% decrease from the same period last year, a record low since 2011.
With the effective control of the domestic epidemic in March, the real estate brokerage industry has also entered a stage of rapid resumption of work. In order to hedge the negative impact of the epidemic, although the general direction of housing and housing will not change, timely and targeted adjustment of policies in response to the epidemic is a high probability event. After the resumption of work, various local cities have gradually introduced the relevant real estate encouragement policies applicable to their own cities. Judging from the 100-city house price index monitored by Zhuge Finding Houses, the number of rising cities in the 11th week of 2020 increased by 11 cities to 60, and the increase in TOP10 was mostly in second-tier cities. It can be seen that the real estate market has gradually recovered.
Under the epidemic environment, because people are restricted to a large number of homes and cannot go out, brands in various industries are looking for new ways to reach users. New private domain traffic ports such as live broadcasts and short videos became popular throughout the country during this period, triggering a new fission in the Internet landscape. The epidemic has accelerated the progress of online and dataization of the new and second-hand housing industry, and is increasingly inclined to the buyer’s market. On the one hand, this pattern makes the business cooperation between second-hand companies closer. On the other hand, it also exacerbates the dependence of brokerage companies and developers on Internet traffic, and the need for a system that reduces costs and increases efficiency is more obvious. In short, the epidemic has further strengthened the integration of the entire real estate industry online and offline. However, the heavy service property of real estate transactions has not changed, and the new traffic operation model has not yet been verified. Real estate brokerage companies still need to focus on the established rhythm of product iteration, technology upgrade, and market expansion.
In the future, as the real estate industry is a typical industry with low frequency, high unit price, and long cycle, users need the services of the entire industrial chain such as second-hand housing, new homes, home improvement, real estate finance, and existing brokerage companies and developers, decoration There has been a certain scale of cooperation between companies and financial institutions, but no standardized cooperation has been carried out at the system level. Therefore, based on the user’s LTV (user life cycle value) maximization principle, in the buyer’s market, based on different real estate transaction stages of the same batch of customers, the synergy value between second-hand housing and different businesses of new homes, home improvement, and real estate finance will increase. Coming bigger.
