In 2021, China’s real estate enterprises, which had made rapid progress all the way, encountered the capital chain test on a large scale for the first time. In the face of this challenge, how will real estate enterprises seek solutions and how will they study and judge the new year?
Surging news exclusively interviewed a number of senior executives of China’s leading real estate enterprises, trying to seek the future development of China’s real estate market from their eyes.
The steady and healthy development of the real estate market is inseparable from the standardized development of the housing rental market.
“The phenomenon of ‘thunder explosion’ should be viewed dialectically. From the rise to growth, every industry must undergo many tests such as barbaric growth before it can gradually move from non-standard to standard.” Recently, Liu Jia, CEO of Rubik’s cube life service group, said in an exclusive interview with surging news.
Liu Jia mentioned that around 2015, enterprises with real estate developers, intermediary agencies, hotels and other backgrounds and all kinds of capital were rapidly pouring into the long-term rental apartment market. The number of brands of long-term rental apartments and the surge in the number of barracks and the contention of flowers in the industry can not avoid the phenomenon of mixed fish and dragons. The outbreak of the epidemic has undoubtedly accelerated and exposed the vulnerability of some enterprise business models.
It can be seen that in the past two years, many parents in the market, including eggshell, Qingke and Dingjia, have been “thundering” for renting apartments. For a time, the market has become cautious about renting apartments for a long time.
However, for the “thunder explosion” in the industry, Liu Jia believes that for the overall environment of the industry, “thunder explosion” is not entirely a bad thing. It is also transmitting a positive signal to us that enterprises that do not meet the market demand and people’s expectations will be eliminated, which is an eternal business law. The remaining enterprises will certainly move forward into a virtuous cycle period in the baptism of the storm and the norms of the industry, abide by integrity, innovate and develop steadily.
For the enterprise itself, Liu Jia said that only by practicing internal skills can we find certainty in uncertainty and be able to break the waves in the face of wind and waves. The long-term rental apartment industry has also seen an obvious trend of M & A integration after the epidemic test. Rubik’s cube has achieved rapid development in recent two years, and the house supply management has exceeded 100000 by the end of 2021.
“As the head operator of the housing rental industry, while deeply promoting the process of enterprise M & A, Rubik’s cube is also continuously cultivating the housing rental market in the first and second tier cities. Therefore, the road of diversified coordination after large-scale M & A will be the proposition that Rubik’s cube needs to hand over the answer paper in the short term.” Liu Jia said.
Under the guidance of the state’s long-term policy, we will vigorously promote the development of rental enterprises and focus on the development of rental enterprises in 2022.
The following is an exclusive interview with Liu Jia by surging news:
surging news: views on the development trend of housing rental market in 2022?
Liu Jia: first of all, the housing problem is related to the well-being of people’s livelihood. Vigorously developing affordable rental housing will still be the main theme of the industry. In 2022, the policies on the recognition standard, product planning, rent control and financial and tax support of indemnificatory rental housing will be gradually refined according to local conditions.
Secondly, with the maturity of the rental housing market, a multi-level supply system will be formed in which affordable rental housing and market-oriented improved housing supply complement each other and develop together. In addition to affordable rental housing, market-oriented and improved housing will still be an important part of diversified market supply and an important force to help the people move from “living” to “livable”.
Finally, thanks to the state’s support for Housing leasing in recent years, the market operating environment continues to improve. 2022 is a key year for the “14th five year plan” to connect the preceding and the following. It is believed that more enterprises will deepen the adjustment of development strategies, especially the “operation is the king” housing rental enterprises, which will still start from their own advantages, consolidate the operation foundation, provide operation empowerment for more market participants, and realize the orderly development of the industry and win-win results.
surging news: what changes has the housing rental industry experienced since the two-year epidemic?
Liu Jia: the test of the epidemic makes many peers fleeting like meteors, and also makes some enterprises that adhere to the essence of service and long-term ism go further. In general, I think it can be summarized from the following two points:
On the one hand, the survival of the fittest in the market. Around 2015, real estate developers, intermediary agencies, hotels and other enterprises and all kinds of capital are rapidly pouring into the long-term rental apartment market. The number of brands of long-term rental apartments and the surge in the number of barracks and the contention of flowers in the industry can not avoid the phenomenon of mixed fish and dragons. The outbreak of the epidemic has undoubtedly accelerated and exposed the vulnerability of some enterprise business models. In the process of development, they pursue short-term interests too much and try to achieve rapid profits through the rapid expansion of scale, thus ignoring the polishing of their own business ability. Once encountering variables, it is easy to fall into business crisis.
On the other hand, it is the source of market order. First, it is inseparable from the further strengthening of the state’s supervision of the order of the rental housing market. Restraint means that there are rules to follow for the development of enterprises, and policy guidance is a necessary condition for the orderly and standardized long-term development of the industry. Second, it is inseparable from the solid accumulation of the basic skills of the enterprise’s own industry. I have always believed that whether enterprises can effectively deal with major crises in the process of operation does not depend on temporary reform and innovation, but on the basic skills of the industry. To survive in the wind and waves, I have summarized five basic points, which I call the “Five Forces Model” of the magic cube.
In terms of security, it is the “boyfriend force” to guard the residents; In terms of fund management, it is the hard strength to resist risks; In terms of product quality, it is the vitality as always; In terms of after-sales service, it is the endurance to accompany in the end; In terms of talent training, it is the cohesion of harmony but difference.
Nearly 63% of the tenants of Rubik’s cube are aged 20-30, so most of our housekeepers and store managers are post-95. How to mobilize the service enthusiasm of young people and make their services more creative and valuable is the continuous exploration of Rubik’s cube to cultivate talents and improve services. We will periodically arrange half a working day for front-line staff across the country to receive the “full service training day” through the combination of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) to help employees remember the original intention of service.
The “Five Forces Model” is the core bottom operation and management ability of the enterprise. Only by practicing internal skills can we find certainty in uncertainty and be able to break the waves in the face of wind and waves.
surging news: how to treat the “thunder explosion” in the housing rental industry?
Liu Jia: the phenomenon of “thunder explosion” should be treated dialectically. From the rise to growth, every industry must go through many tests such as barbaric growth before it can gradually move from non-standard to standard. For the overall environment of the industry, “thunder explosion” is not entirely a bad thing. It is also transmitting a positive signal to us that enterprises that do not meet the market demand and people’s expectations will be eliminated. This is an eternal business law.
The remaining enterprises will certainly move forward into a virtuous cycle period in the baptism of the storm and the norms of the industry, abide by integrity, innovate and develop steadily.
surging news: what measures did the company take to deal with the epidemic and the “Aftershock” of the explosion of long-term rental apartments?
Liu Jia: in terms of strategic layout, Rubik’s Cube will formulate the group strategy every year according to the market demand and the current development characteristics of the enterprise, so as to ensure that the group makes every effort to make the best use of one place. After the epidemic test, the long-term rental apartment industry has shown an obvious trend of M & A integration. During this period, Rubik’s cube has also integrated many concepts with our consistent brands to work together to stabilize the rental order. With solid basic operation skills, Rubik’s cube has achieved rapid development in the past two years, and the house supply management has exceeded 100000 by the end of 2021. In terms of product research and development, Rubik’s cube has coordinated the layout of multiple product lines, including the “Rubik’s cube apartment” serving urban white-collar workers, the “Building 9 apartment” specially providing comprehensive solutions for the accommodation of enterprise employees, and the “Rubik’s apartment” focusing on the line of literature and art light luxury. Differentiated products can serve rental groups with different needs to ensure that everyone can find a suitable house in the magic cube. In terms of management and operation, Rubik’s cube is well aware that the efficiency of information technology development is unmatched by manpower, so it attaches great importance to the independent research and development of it strength. At this stage, it has successfully launched the “Rubik’s cube Zhilian” apartment intelligent operation platform, which can not only enable the cost reduction and efficiency of group management, but also export to provide digital operation, intelligent IOT Industry finance integration and other digital intelligence solutions. In terms of talent management, Rubik’s cube college has established a hierarchical and gradient innovative learning organization to create a healthy and orderly talent appointment mechanism by creating an all-round talent development path, provide broad space for employee development, build a talent cornerstone for high-quality service of Rubik’s cube, and create long-term value for the sustainable development of the industry.
surging news: what are the development ideas of the company in 2022? What are the new challenges?
Liu Jia: in 2022, under the guidance of the national policy of vigorously promoting the simultaneous development of rent and purchase, focusing on the institutional and large-scale long-term development of housing rental enterprises, the industry ushered in a new development opportunity. The Sixth Plenary Session of the 19th CPC Central Committee pointed out that achieving high-quality development is the unity of China’s economic and social development history, practice and theory, and the fundamental path to open a new journey of building a modern socialist country in an all-round way and achieve the second Centennial goal. Rubik’s cube closely follows the policy direction. In 2022, it will focus on the new group strategy of “high-quality development”, focus on higher quality, faster expansion and stronger organization, and continue to create value for the industry.
The new historical stage is bound to face new challenges. As the head operator of the housing rental industry, while deeply promoting the process of enterprise M & A, Rubik’s cube is also continuously cultivating the housing rental market in the first and second tier cities. Therefore, the road of diversified coordination after large-scale M & A will be the proposition that Rubik’s cube needs to hand over the answer paper in the short term.
It has been 13 years since the first store of Rubik’s cube opened in Nanjing in 2009. 13 years means that saplings can be cultivated into useful materials, and children can grow into vigorous teenagers. Since its first day, Rubik’s cube has always wanted to provide high-quality rental products for urban youth. Therefore, along the way, Rubik’s cube has not only made a lot of efforts in the R & D and iteration of new products, but also made a lot of investment in the transformation and upgrading of old projects. In 2021, Rubik’s cube completed more than 20 space promotion projects nationwide, creating more interaction between space and people and seeking new value growth points for business development. In 2022, we are confident to implement the upgrading and transformation of more projects, provide more high-quality rental products for the market, and continue to cultivate the fine operation of long-term rental apartments.
