In fact, developers are also suffering. In order to attract buyers, it is not uncommon to spend hundreds of millions to build a sales department. Then there are all kinds of grand marketing activities. Look, it has to be the case. Developers who are glamorous in the eyes of consumers are actually far more miserable than we think.
Jack Ma once said: “In the future, a house will be like a scallion, and everyone can afford it.” Although most people regard it as a ridicule, there are still some people who are waiting for the arrival of the era of scallion housing, which is nearly 20 percent. It has been a hot topic in the past few years. People who bought a house expect the price to increase, but those who do not expect to buy a house expect the price to decrease. This conflict has remained unresolved for many years. Under the influence of Jack Ma’s words, many people hope that Internet companies such as Xiaomi and Ali will enter the real estate market and carry out a complete industry revolution.
Ali is finally here
On September 16, Tmall announced that it will jointly establish a real estate department with E-House and launch the “Tmall Haofang” platform. And promised not to make money for three years, all income subsidized home buyers, the grand occasion of the press conference on that day was also unprecedented, and almost all the top 50 domestic real estate companies were present. A single brand press conference has caused the stock price of Crazy Shell to drop recently. No matter whether Alibaba can truly reform the market in the future, at least it has enough expectations for users.
No industry in China can exceed the real estate market size, and any other retail industry can only be a fraction of the real estate market. In Ali’s last fiscal year, Ali’s annual transaction volume was about 1 trillion US dollars. This is already the world’s first and far-leading retail platform. In 2019, the transaction volume of new houses nationwide reached 16 trillion yuan, and the transaction volume of second-hand houses reached 6 trillion yuan. From this point of view, after Ali entered the real estate market, there is still room for at least three or four times the growth of its own scale. Dare to ask, is there any industry on the earth that has a larger scale than this?
Lu Weixing, general manager of Tmall Haofang, shared a set of data: “In 2019, the number of Taobao house viewings has reached 80 million, and the number of online transactions exceeded 150,000.” From the perspective of Internet products, such a conversion rate is relatively low, which does not count A good model, but the unit price of millions or tens of millions of customers can overturn all previous Internet theories. At the same time, with the development of technologies such as live video, VR/AR, and holographic projection, the basic conditions for online transactions such as large-scale transactions have been met. Of course, the market also needs to optimize the existing process to greatly reduce the upfront cost of the transaction. Not just home buyers, but developers as well.
Can Ali succeed in revolution?
Housing prices are high, and real estate developers are black-hearted; second-hand housing transactions are full of pitfalls and black intermediaries. These two major problems can be said to have continued since the housing marketization reform in China in 1998. At least until now, no developer or real estate agency has completely gained the trust of market consumers, the asymmetry of information and the complete distrust of both sides of the transaction. It has become an insurmountable gap in this industry. Even if new entrepreneurs come in, they are eventually defeated by the cost of credit.
Regarding the sudden emergence of Shell, many people do not understand why a company that neither owns a house nor sells or leases directly to the outside world is developing so fast that it has surpassed the top domestic real estate developers. In fact, this is the role of the platform. The entire real estate market needs such a platform with absolute volume to act as a credit guarantee for both parties. If Tmall Haofang wants to be successful in the future, it must also start from this perspective. Of course, judging from the grand occasion of the press conference, Ali does not regard intermediaries and developers as its own enemies. In fact, Ali also understands that developers It is the upstream manufacturer, and the intermediary is the merchant on the platform. Only with their existence can they have their own so-called platform, otherwise the reform is empty talk.
From the perspective of home buyers, it takes a month for each consumer to decide to buy a house and complete the entire transaction at the fastest, and more than a year for a slower one. Introduction, to signing a contract, carrying out a bank loan, mortgage and a series of processes, such a complex process makes many people miserable, buy a house they like, and do not want to pay too much upfront cost, this is Tmall good The greatest opportunity for the room.
Remember the news that Country Garden’s high-turnover model was exposed overnight in 2018? I believe this is just the tip of the iceberg in this industry. Therefore, developers also hope to have such a platform to do such marketing instead of themselves, which is also an opportunity for Tmall Haofang.
Ali dares to enter this market now, not only because of the huge size of the cake, but because of the maturity of technology and the success of its own market.
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