Feng Lun: How to do "Industry 4.0" in the real estate industry?

Summary: "The impact of the Internet has not changed whether we need a house or not, but how we need it, how we use space, how to get the most convenient and comfortable, and the space we like the most. The Internet has really made us It can meet people's needs for space faster and better, which also creates a new path for the future development of real estate." On April 15th and 16th, at the 2015 iResearch Summit with the theme of "follow the trend, dance in the wind" At the meeting, Feng Lun, Chairman of Vantone Holdings, explained the five major innovation trends in the real estate industry in his eyes in the Internet + era.

Feng Lun: In the past two years, there has been very little traditional news in real estate. The real estate news that can attract everyone's attention is related to the Internet. It is no small news that Vanke executives joined Fangduoduo. Soon after, "YOU+" appeared, and it was also Internet news, because real estate became particularly enchanting news after it was related to Lei Jun. Three months ago, Vanke's Mao Daqing came out to start a business again, and it was also linked to the Internet to create an office space innovation. On April 14, Greenland signed a contract with Ali and launched a real estate network. It seems that real estate has finally become a treasure, but it is because of the Internet, not because of the house.

(The picture shows Feng Lun, Chairman of Vantone Holdings)

I think five changes in the real estate industry deserve our attention.

The first change is the change in the path from product to customer. The change in access has led to the emergence of a lot of companies, especially Airbnb in the United States, to rent excess houses online. In the past, I have visited and discussed opinions. The valuation of this company exceeds that of Vanke and Greenland, which means that it exceeds the largest traditional real estate development company in China. But it only did it for five years. A similar company in China is called Tujia. There are many competitions in the real estate sales link. Fangduoduo and Soufun are all companies that developed in the real estate channel. And in the channel, these new types of companies are disrupting traditional sales.

There are also some new companies specializing in the sale of subdivided second-hand houses, specializing in new houses and luxury houses. In short, there will be new companies and new entrepreneurs. In addition, there are some models of growth that we have seen and have not seen, from products to channels, if it is large-scale, you can learn about needs from customers, buy a house, rent a house, just like Didi Taxi, a number of individuals give You pass a list, and then do a particularly good service.

The second innovation is a reform of the entire interior structure of the house. That is, the smart home we are talking about gradually replaces the traditional home improvement industry. The house of the future does not mean that you buy a TV after the traditional home decoration is completed, but integrates all current consumer terminals, whether it is mobile or changes, and becomes a site for furniture information life, an entrance to the largest integrated system. So in this field, all the big Internet companies are staring at this "home" field, how to combine with the house. But this is a challenge to the traditional home improvement industry. If BAT companies start to enter the smart home, the house will eventually become an industrial product, just like an electrical appliance. You live in a smart electrical appliance, which appeared in science fiction films in the past. scene, but now it's getting closer to reality.

The third, life O2O, also called community e-commerce, is replacing traditional property management. One of the most important features of the so-called good and bad traditional property management in the past is "learning from Lei Feng". Ten years ago, the property management company could help customers open a door and hail a car, which is called very good property management. But now everyone knows that all these functions can be easily satisfied through the mobile Internet and through the mobile phone. So now calling a doctor, calling a lunch, calling a car, including maintenance, settlement, electricity bills, etc. all these things can be achieved through the Internet. In fact, traditional property management companies have no advantage at all, so including various new O2O service methods for life, our traditional property management companies have no way to support. At present, traditional property companies, especially residential property companies, are 100% loss-making and 100% subsidized to customers, but it is still difficult to survive, and the service quality is getting worse and worse, and they are facing complaints. But with O2O life e-commerce actually makes up for the service of the property. So customer complaints about the property are now down instead.

Fourth, similar to the way of Industry 4.0, starting from the needs of customers and looking backwards, what kind of house should we make. Therefore, there have been a lot of free customization of houses recently, or some methods such as crowdfunding. Through a project, gather all the needs, and then through crowdfunding, get a part of the funds from the customer, then design, build, and finally hand over the house to the customer, which can save the cost of development and save the bank loan as a The cost of development loans and the cost of sales, this model saves about one-third of the money compared to traditional real estate development, so house prices will drop.

Customize the house according to customers and needs, and then form a new manufacturing model (development model) through crowdfunding. In fact, anywhere in the world you want to make a small house in the future can actually be achieved through this customized method, which is easy and fast to achieve.

Fifth, our definition of space has changed. In the past, the definition of space was very simple. The living room was the living room, the coffee shop was the coffee shop, the dining room was the dining room, and the office was the office. But now we find that the Internet era is very interesting. The demand for people's communication and public places is increasing, not decreasing. The demand for space has greatly increased. So there is a special phenomenon, which is the compounding of spatial functions, such as drinking coffee, which may also serve as office functions, social functions, and party activities. Therefore, functional compounding is the biggest trend in the future. Therefore, public space is now related to people's behavior, because real estate is ultimately to create a fixed and good space with the most value. Cars, planes, and MH370 are moving spaces, and once they move, they can't be found. But venues, residences, these are called fixed spaces, and what determines the value of these spaces? An important reason for this is behavioral decisions. Different behaviors are willing to pay different fees, and we will get different funds. In general, standing is worse than sitting, and sitting is worse than lying. For example, the funeral home, once lying down, charges a huge amount of money.

And the frequency of communication between people is getting higher and higher, the frequency of communication between strangers is getting higher and higher, the purpose of communication is less and less simple as traditional, and the needs of communication are more and more diverse, Therefore, diversification will create more demand for new space, including the Chinese version of Wework made by Mao Daqing, which is also adapted to this demand, and the greater compression of public space.

In short, the real estate industry is a heavy industry, and the impact of the Internet does not change whether we need a house or not, but how we need a house, how to use the space, and how to obtain the most convenient, comfortable and our favorite space. The Internet does allow us to meet people's needs for space faster and better, which also creates a new path for the future development of real estate.