Let’s start with a few facts:
Shell went public in early August 2020 with a market value as high as $82.9 billion, far exceeding vanke’s market value.In the past two years, developers have become more and more dependent on the channel, and more and more money has been taken away by the channel. Marketing people always complain bitterly.There are more and more listed property companies with an average dynamic p/E ratio of more than 40 times.The market value of country Garden’s services has exceeded 100 billion yuan, and the market value of Services such as Ya Life and Greentown has also exceeded the market value of real estate development sector.Enterprises with good product standardization, such as regional Binjiang, have achieved rapid growth in scale in recent years.
What do these facts point to?Ming Yuan Jun thought:
Most industries will go through three stages of evolution: project mode, standardized product mode and platform ecological mode.The latter business model is a dimension reduction blow to the former one, such as shell and other channels for traditional real estate marketing is a dimension reduction blow.
The real estate industry has its own particularity, not all links can complete the evolution of the model.But once a link completes the evolution, it constitutes a dimension reduction blow to the traditional model.
At present, if the real estate industry chain is simply divided into four stages:
Investment and financing;2. Design and engineering construction;3. Sales;4. Customer service and property management;
Real estate investment and financing: still in the project mode;
Real estate design and engineering construction: evolving to a standardized product model;
Real estate marketing, customer service and property: rapidly evolving into a platform ecosystem.
If the traditional developers do not complete the evolution, will encounter the dimension reduction blow.
Three phases in the evolution of business models
To explain the evolution of the business model of the real estate industry, it is necessary to popularize the project model, standardized product model and platform ecological model.
Let’s start with the project model.
In fact, the project model has existed since the beginning of human production.
A blacksmith makes a knife, a painter paints a picture, a mason builds a house, a sculptor makes a statue, a consulting firm makes a consultation — it is all a project.
The benefits of the project model are:
Personalized, each project production is different, if the author carefully, can make the work into a work of art.
Weaknesses of the project model are:
The reliance on individual capabilities is so strong that it’s hard to replicate on a large scale and therefore not really big.
At the very beginning, Mercedes Benz was also a project model:
Demand from high-end customers, and partners who understand the whole process of car design and production to tailor their cars.