That Aiwu Yoshiwu who wants to kill the "second-hand housing agency", why? | game zeus judi, kaisartogel88

The Aiwu Yoshiwu, known as a disruptor and revolutionary in the second-hand housing industry, went bankrupt.

At that time, Aiwujiwu was the first team to try to use O2O to subvert the intermediary industry. The slogan of "killing offline" catered to the restlessness of capital and market under the O2O trend. One year and three months after its establishment, it has completed 5 rounds of financing. 18 months after its establishment, Aiwujiwu's valuation has risen to US$1 billion. Investors include top institutions such as Temasek, Gaorong Capital, and Shunwei Fund.

Now, when searching for the official website of iwjw.com (www.iwjw.com), the page displayed is "Landlord on the First Floor" and cannot be clicked. Currently, its APP and mini-programs have ceased operations.

The reason why emerging real estate e-commerce companies such as Aiwu Jiwu can soar in a short period of time is not only relying on subsidies and traffic dividends, but also mainly due to the hot real estate market under the destocking policy in various places after 2014.

But only four years later, this darling of capital and markets sadly fell.

Has Aiwu Jiwu really figured out how to play "Internet + real estate"?

Looking back afterwards, the death of Aiwu Jiwu was essentially due to its toVC strategy of relying on Internet e-commerce subsidies and blind expansion. Instead, it ignored the user experience and the advantages of the Internet in reducing costs and increasing efficiency, and even more ignored the value of offline intermediaries in matching transactions and obtaining housing listings.

In the end, in China’s already alienated real estate agency industry, the fairy tale of Aiwujiwu became a misty castle in the air.

Where does the confidence of “subversives” come from?

In 2014, Aiwu Jiwu was established in Shanghai. It was founded by Li Yongjin and Deng Wei, who once served as COO and CFO of Tudou.com and Vice President of Sales of Tudou.com respectively.

Before founding Aiwujiwu, the team had just sold the online ride-hailing platform Bumblebee Taxi. "Those eight months were very unforgettable in my career." In an interview, Deng Wei said that for the first time, she realized that the entire entrepreneurship speed of the mobile Internet is four times that of the traditional PC Internet. Although Bumblebee lost the competition with Didi,they decided to apply the Internet style of play to the real estate track.

That year, China's real estate market entered a new turning point. The real estate market is moving from the era of huge profits to the era of existing housing. Traditional intermediaries are struggling to survive, and the problem of information asymmetry in housing sales has not been solved. New concepts such as mobile Internet and O2O have impacted people's offline lives. The top-level policy support for destocking in various places is like a shot in the arm for the real estate agency industry. Everyone believes that the era of China’s real estate buyer’s market is coming.

For a time, a large number of new and old players, including Lianjia, I love my home, Anjuke, Dr. Rabbit, Fangtianxia, Fangduoduo, Real Estate Sales, and Jiwu.com, have taken advantage of the O2O trend to deploy on mobile terminals.

Aiwu Yoshiwu is the most radical among them.

Different from traditional intermediaries, as soon as Aiwu Jiwu entered the track, it targeted the second-hand housing market and announced that it would eliminate intermediaries and offline stores.

Why such huge ambitions?

Looking back now, in the business logic of Aiwujiwu at that time,The Internet platform can completely replace the offline physical stores operated by heavy models, allowing real estate and customers to realize offline docking and transactions. In this way, while achieving efficient matching, it also reduces the cost of offline store opening, operation and commission.

And this logic not only convinced the whole company, but in those years when O2O was popular, Aiwujiwu’s high-profile real estate e-commerce model was also recognized by the industry and capital.

Looking back at Aiwu Jiwu’s financing history, it only took one year and three months to go from Series A to Series E, with a cumulative financing of US$350 million. The investors behind it include Temasek, Hillhouse Capital, GGV, Morningside Capital, Gaorong Capital, Shunwei Capital and other front-line domestic and foreign institutions.

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With the support of capital, Aiwu Jiwu is trying to burn money in exchange for traffic and scale to cultivate user habits.

It is reported that Aiwu Jiwu has recruited a large number of employees with high salaries due to abandoning offline stores. In addition, Aiwu Jiwu has also done a lot of advertising; the commission for second-hand houses on the platform has been reduced to 1%, and the commission for renting a house through the platform can also be halved. At the same time, the platform also provides services such as video viewings and one-to-one viewings.

The idea of "burning money in exchange for traffic and users" is already very common in the current era of e-commerce everywhere, but at the time, this ruthless approach shocked the originally conservative real estate agency industry.

In fact, in less than half a year, Aiwujiwu ranked first with a market share of 28% in the Shanghai market, and 10% in the Beijing market.

The "revolution" failed and star companies fell rapidly

Witnessing the record-breaking growth rate of Aiwu Jiwu, the industry has also begun to become restless.

Lianjia launched "Dingding Rental" in February 2015, announcing that tenant commissions would be waived and all rental business of Lianjia would be transferred to Dingding Rental. Fangtianxia, ​​a subsidiary of SouFun.com, has also lowered its commission, with a commission of 0.5% to compete with Aiwu Jiwu for customers.

In order to cope with competition, during the Spring Festival of 2015, Aiwujiwu signed the famous comedy star Cai Ming as its spokesperson and increased its advertising efforts both online and offline. In a previous interview with Entrepreneurship Network, Deng Wei revealed that Aiwu Jiwu has gathered more than 13,000 agents with salaries and commissions that are much higher than the industry average, and the average monthly labor cost has reached 10,000.

Beginning in May of the same year, Aiwujiwu began to enter the national market. In a short period of time, it has entered the leading cities in second-hand housing transactions such as Guangzhou, Shenzhen, Tianjin, Hangzhou, Wuhan, Chengdu, Nanjing, and Chongqing.

Throughout 2015, the business of AiwujiwuThe experiment created a staggering GMV. Only one year after its establishment, it has handled a real estate transaction volume of 40 billion yuan and a transaction volume of more than 20,000 units.

It took Lianjia ten years to reach this figure, but Aiwu Jiwu achieved it in one year.

However, in the real estate transaction market with low transaction frequency, non-standardization, and high customer unit prices, Aiwu Jiwu's violent expansion did not last long.

On the one hand, the early blind expansion and high-paying recruitment of brokers also dragged down the company's financial status. Although Aiwujiwu eliminated a lot of offline stores that were heavily operated and saved a lot of property costs, its online and offline placement, marketing and labor costs have turned into a bottomless pit.

After November 2015, Aiwujiwu has never received financing again. After the advertising volume was significantly reduced in 2016, its market share has declined significantly. Agency data shows that from January to September 2015, Aiwu Jiwu ranked third in the Shanghai intermediary market with a market share of 4.04%. From January to September 2016, Aiwu Jiwu’s market share in Shanghai fell to 1.73%, and its ranking fell to eighth place.

On the other hand, the market environment has also undergone new changes.

Since mid-to-late 2016, the state has successively introduced regulatory policies to prevent systemic financial risks and began to consciously curb the excessive rise in housing prices in first- and second-tier cities and hotspot cities surrounding first- and second-tier cities. Immediately, many local governments regulated the real estate market on the demand side through "price restrictions, sales restrictions, business restrictions, and signing restrictions".

This is just adding insult to injury for Aiwu Yoshiwu, which is already deep in the quagmire of losses. According to public information, the total transaction volume of Aiwujiwu in Beijing and Shanghai in 2016 was only 11,978 units, and as of July 2017, the total transaction volume of Aiwujiwu in the two places was only 1,400 units.

The irony is that although Aiwujiwu tried offline stores during this period and redeemed itself by expanding its upstream and downstream businesses in finance and real estate, it still came to an end quietly.

On February 18, Aiwujiwu’s website and APP have ceased operations. According to the Daily Economic News, Aiwu Jiwu officially stopped its normal external business at the end of January 2019 and entered the aftermath of the liquidation process. After TMTpost learned from many sources, Aiwujiwu’s office at Pinggao International Plaza at No. 128 Anyuan Road, Shanghai was vacated as early as December 2018, and the legal person was changed again not long ago.

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"I saw him building a tall building, I saw him entertaining guests, I saw his building collapse." This sentence is perfect to describe the growth of Aiwujiwu.

A victim of industry trial and error?

AiwujiThe house died, and the bubble of real estate e-commerce burst together.

"Ping An Haofang" and Aiwujiwu, which are backed by Ping An Group of China, have become close friends; Dingding Rental, which has high hopes from Lianjia, announced its full business and returned to Lianjia Rental as early as 2016 due to continuous losses; Anjuke was founded by Liang Weiping, the original founder of Anjuke. Gejia was forced to cease operations; Haowu China failed in its bet with Mingbao Jewelry due to losses; "SouFun.com" was renamed "Fangtianxia" in 2014 and transformed into an Internet intermediary, and finally returned to the real estate information platform model...

It is reported that at the peak of Aiwu Jiwu in 2015, its low commission model changed the charging model of many small intermediaries. Everyone was grabbing customers by reducing commissions, and it also accelerated the reshuffle of the industry. Traditional intermediaries such as Lianjia have acquired a large number of intermediary stores at very low costs.

According to the industrial and commercial information provided by Qixinbao, there are currently more than 4,000 real estate e-commerce companies that have been revoked or canceled nationwide, of which 1,934 went bankrupt in 2018.

Zhang Bo, chief analyst of 58 Anjuke Real Estate Research Institute, said in an interview with "Daily Economic News",

The collapse of Internet intermediaries was first due to their over-reliance on the successful "subsidy" model of the Internet in other fields, but they failed to recognize the low-frequency and non-standard characteristics of real estate transactions;

Secondly, the so-called Internet innovation, which essentially involves poaching agents with high salaries and high commissions and low commissions, has not had a substantial impact on the industry;

The uncertainty of the economic environment has accelerated its demise.

In this regard, Lu Jun also believes that the reason why Aiwujiwu fell was largely due to the fact that the founding team came from the Internet and ignored the power of stores and offline.

The store not only connects customers, but also connects landlords and housing to a greater extent. In other words, offline stores are the first to obtain housing, and then move from offline stores to online. In other words, good properties are digested offline in advance.

Zuo Hui, chairman of Lianjia.com, has criticized the de-store strategy on many occasions, saying, "In Beijing, if there are stores, the operating costs are shared with the brokers, and each person is 1,500 yuan; if there are no stores, the operating costs shared by each broker are 1,000 yuan, which is only 500 yuan less."

In China’s real estate market, where listings are opaque and non-standardized, consumption is infrequent, and are affected by policy fluctuations, listings are the real moat. Internet intermediaries such as Aiwu Jiwu advocate "de-storeization", which seems to reduce the cost of store rent, personnel management, etc., but in order to obtain housing and customers, they have to burn money to change markets. Once subsidies cease, we will have to face the risk of both housing and customer sources declining.

In addition to the lack of accurate understanding of the value of offline stores, the reason why Aiwujiwu collapsed was because it failed to recognize the current situation of China's intermediary industry.

“The biggest problem in the industry at present is institutional issues, and this has nothing to do with the Internet.” Hu Jinghui, former vice president of I Love My Home, bluntly said in an interview with the 21st Century Business Herald that the domestic real estate agency model is an intermediary model, supporting two companies with one hand, which is equivalent to the plaintiff and defendant hiring a lawyer. When buying a house, the lower the price, the better. The seller wantsThe higher the price, the better, and the faster the intermediary wants to close the deal, the better.

In other words, unlike the foreign real estate agency system, China's intermediary system is a bilateral agency system. In order to broker a deal, intermediaries often unite with the stronger party to suppress the weaker party. The reality of China's second-hand housing transactions is that the buyer has no say. In second-hand housing transactions, the commission that should be paid separately by the buyer and seller shall be borne by the buyer.

Obviously, on the premise that the current status of the industry cannot be changed, Internet intermediaries try to use subsidies and price reductions to carve an entrance into the low-frequency second-hand housing market. This is a pure fantasy, and it is doomed to the failure of Aiwujiwu.

But we should also see that the "legacy" left by Aiwu Jiwu is not just a "burning money" approach. In the collision between emerging Internet thoughts and conservative forces in traditional industries, big data, AI and other technologies are better penetrating into various industries in the constant struggle. This reflection should also be extended to more "Internet +".

[Source: Titanium Media Author: Gao Mengyang]