Is there still an opportunity between “matching” and “direct management”?

The domestic epidemic situation has improved. After experiencing a severe shortage of service personnel and a sharp drop in on-site service orders, the domestic service industry has begun to recover. Some people believe that the epidemic has strengthened the health awareness of enterprises and residents, and may drive the growth of health-related daily necessities and related service industries. iiMedia Research has predicted that the size of China’s government service industry market will reach 878.2 billion yuan by 2020.

Apart from the traditional offline service providers and O2O field representatives, 58 more and more Internet housekeeping service brands have entered the home service scene. For example, So generous at home , Hager Housekeeper , Rejoice at home , etc. These new Internet housekeeping platforms are aimed at specific groups of people, focusing on standardized services and quality of delivery.

The recently contacted project “Volkswagen Craftsman” is an Internet one-stop home life service brand. The brand was established at the end of 2016. Its current main businesses include housekeeping services, appliance cleaning, corporate cleaning and high-end cleaning. The Group’s future development direction is mainly focused on home services, blue-collar vocational training and technology platforms. In 2019, the “Volkswagen Craftsman” GMV exceeded 300 million yuan, generating 180 million yuan in income for domestic helpers.

Hundreds of billions of domestic housekeeping service markets are highly fragmented. Xin Heng, chairman of “Volkswagen Craftsman”, takes the Beijing area as an example. There may be more than 5,000 traditional intermediaries and Internet service providers in the Beijing housekeeping industry. Although the Internet model has already penetrated, Internet brands The share is still low. Traditional enterprises are generally small in scale, traditional in management, low in service standardization, and even random pricing. These industry pain points are opportunities for startups.

In 2019, GMV will increase by about 12 times. Internet housekeeping brand

“Housekeeping service + Internet” or “Internet + Housekeeping service”?

For Xin Heng, “household + Internet” and “Internet + Housekeeping” are two different concepts. For the purpose of improving management efficiency, traditional domestic service providers may choose to introduce Internet-based marketing methods and management systems.The system of informationization of this traditional enterprise is defined as “household + Internet”.

“Internet + Housekeeping” puts more emphasis on the Internet genes of enterprises. The Internet genes of “Volkswagen Craftsmen” are mainly reflected in the following aspects:

  • Build your own management system. According to reports, “Volkswagen Craftsman” has invested tens of millions in the development of management systems, and has a client-side APP and a service craftsman-side APP. The client-side APP provides users with a closed-loop online transaction process, allowing service visualization and price transparency. Users use APP to realize the whole process of browsing, ordering, service, order receiving and evaluation. In addition to the transaction link, the app also has a customer service feedback system and artisan information display area.

    The service craftsman app visualizes the process tracking. The service process includes online sign-in, service confirmation, transaction completion, and user feedback. The data backstage is built with a craftsman growth system, covering attendance management, order receiving reminders, location navigation, online training, skill tags and other content. In addition, the intelligent dispatch system replaces manpower matching and filters dispatch orders through multiple tags such as order pool and capacity pool according to customer preferences.

  • Focus on the new middle class. The target users of “Volkswagen Craftsmen” are mid-to-high-end income groups who pay attention to the quality of life. The company provides high-value services to new and middle class. The service prices are at the high level in the market. At present, the average unit price is about 260 yuan. The team plans to invest in precision marketing in 2020 to reach the target group through WeChat, Meituan and other channels.

  • Online service + offline experience store model. In addition to the online service system, the company plans to build a small number of offline experience centers in cities such as Beijing. The main purpose is to convey brand value, strengthen emotional interaction with users, and cooperate with online business.

    How to choose the platform and direct management, whether to join expansion or direct expansion?

    The platform is mainly based on matching. Compared with the domestic service industry and taxi, takeaway and other industries, the user needs are more personalized and the service unit price is higher. Xin Heng said that the matching platform involves multiple interests, is prone to conflicts of interest, it is difficult to unify service standards, and it is difficult to guarantee the quality of the delivery link. Faced with the pain points of the matching platform, many new Internet housekeeping brands have chosen a direct operation model to staff the housekeeping service staff, such as Good Gene Online.

    Employee system improves the brand’s control over service and management, but at the same time greatly increases operating costs. It is difficult for startups to support this model at the beginning, and the pressure of further expansion through direct management has led to joining. Alternative ways for some brands. The core of the employee system is to promote the professionalization of the housekeeping industry.The model is to sign a cooperation agreement directly with the craftsman, while avoiding the involvement of third-party suppliers, it can also maintain the management of service personnel. The team is more cautious about the franchise model, and currently focuses on direct expansion.

    In the “non-intermediary” mode of “Volkswagen Craftsmen”, craftsmen are independently interviewed, managed and trained by enterprises. In the training session, resident artisans need to undergo manual interviews, health certifications, and 108 training internships. In addition, in order to ensure the quality of the delivery process, the company establishes an independent quality control and quality inspection team to supervise the quality of the craftsmen and improve customer satisfaction.

    At present, “Volkswagen Craftsmen” has entered Beijing and Chengdu, with more than 1,000 contracted craftsmen serving more than 200,000 families. Enterprises’ GMV in 2019 will increase by about 12 times compared to 2018, and active users in 2019 will increase by more than 5 times compared to 2018. The average monthly settlement fee of its artisans ranges from 7,000 yuan to 15,000 yuan, and the user repurchase rate exceeds 50% .

    In 2020, in addition to its main business, “Volkswagen Craftsmen” will gradually launch service categories such as babysitters, moonlight, childcare, and home appliance repairs around the family service scene. On the craftsman side, the team plans to achieve the entry of 3000+ professional laborers, whose business covers first-tier cities such as Guangzhou, Shanghai, Shenzhen, quasi-first-tier cities and provincial capital cities.