For residents, a community is not just a housing location, it is a comprehensive living place that integrates living environment, living experience, daily services, etc., carrying people’s yearning for a better life, and these must be achieved without property.
In fact, with the application of technologies such as the Internet of Things, 5G, artificial intelligence, and big data, the domestic property industry is accelerating its digital transformation. However, all transformations have to face pains, and this kind of pain is particularly evident in labor-intensive industries such as property management. In the words of Li Mingyuan, founder of Fengwu Technology, “the digitalization of property management is not only a set of business and financial systems. Such digital tools, and more importantly, a management platform that can connect with tools for decision-making and demand feedback, but very few companies in the market really understand the value of properties.”
In recent years, especially after the 14th Five-Year Plan, digitalization has become the strategic focus of property companies. According to the data from the China Index Academy, from 2013 to 2021, the compound growth rate of capital invested in intelligentization by China’s top 100 property management companies exceeded 50%. As an emerging technology company involved in property management in 2019, Fengwu Technology pays more attention to innovation and quality. It invests more than 100 million yuan in research and development every year, continues to deploy a digital platform for property management, and deepens its capabilities on the side of smart property operations to empower material enterprises. Provide better property management services for owners.
Identifying the track, cultivating and developing, Fengwu Technology’s breakthrough in the property industry is worth exploring.
Entered property: opportunities and challenges coexist
As we all know, property management is a labor-intensive industry, and “high labor costs, low income and a single model” have always been the difficulties in property development. If you want to choose an entrepreneurial track, it is difficult to say that property is a good choice.
As a relatively cautious entrepreneur, Li Mingyuan is keen to discover opportunities: the development of urbanization is becoming more and more mature, and the real estate development in core areas will eventually move towards stock operation after initial incremental development. This is also the property development and community. Serve the inevitable development opportunities in the future.
However, there are often risks in the opportunities.
Before the establishment of Fengwu Technology, Li Mingyuan had been exploring in the real estate industry for several years, and the direction of exploration was the attempt of digital construction related to real estate. The clear cognition is also more persistent in the idea of applying digital technology in the real estate industry.
Judging from past practice, he believes that there are two main reasons for the low level of digitalization in the property management industry: First, domestic property management is mainly done by real estate developers, and there are obvious short-term decisions. Second, the industry ceiling is very low, management is relatively inflexible compared to the emerging e-commerce service economy, young people are rarely willing to enter this industry, and the development of the natural industry is relatively easy to be restricted.
Even so, for property, Li Mingyuan believes that it should take a long-term view. Whether it is the management model of the grassroots in China, or as the problem of the aging population becomes more and more prominent, the market demand for properties must be more and more. People expect more and more properties. It is not only basic services such as cleaning, security, green maintenance, and warranty, but also higher community value-added services such as pension and education.
The key to breaking through the industry is to find the pain points of property management
At the beginning of the establishment of Fengwu Technology, Li Mingyuan was faced with a choice: to provide the property industry from services to the construction of technical capabilities, should the business model be to C or to B?
to C mode: directly realize the cash from the front end of the service, as the direct performance party of the property service.
to B mode: realize the realization of cash from the supply chain and back-end large-scale procurement, instead of directly fulfilling the contract, but feeding back to the C-side through intermediate services.
Although these two business models can work well in the property industry and have good practice, Fengwu Technology chose the latter. The direct factor that contributed to this choice was that he saw the problem of the income structure of the property industry, that is, 75% of the income went to labor costs, which was a performance of low efficiency and there was a lot of room for improvement.
In Li Mingyuan’s view, the problem of high investment in labor costs is not only in personnel management, but also in the supply of B-side. If the enterprise organization of the B-side is not modern enough, and the productivity and production relationship cannot grasp the supply of the B-side, it will not be able to provide long-term large-scale services to the C-side.
Therefore, for property management, the real difficulty lies in improving its own management capabilities, thereby driving the transformation of production methods in the industry, doing a good job in demand satisfaction management, end-to-end contract performance, and further replication and fission.
Digitally empowering properties is also to solve this part of the problem. There are many technology companies in the market that do “property + Internet”, but they are all providing management tools. Although the efficiency has been improved to a certain extent, the effect is not significant. The digitalization of property needs should be a demand management platform connected by tools, through which the platform responds to demand, mobilizes resources, solves problems, improves efficiency, and finds industry growth points.
Frontier Technology’s Property Empowerment Practice
Fengwu Technology positions itself as an innovative smart community platform operator, aiming to provide intelligent platforms and applications such as property cloud, smart security, and smart IoT for property and real estate development to create a beautiful and comfortable living environment.
Li Mingyuan mentioned that Fengwu Technology’s empowerment of properties mainly solves two needs:
The first is to make up for shortcomings, mainly to solve the complex human management and expense management problems within the property. As an entrepreneur who has jumped out of the Internet industry, Li Mingyuan is well aware that the property management system is far behind that of Internet companies.
In Li Mingyuan’s view, property is different from other industries, and the internal labor logic is relatively complex, and it is difficult to directly apply existing products in the market. Therefore, Fengwu Technology has made some changes. Combined with the human and financial software in the market, through the needs of different types of project properties, it has customized its own business and financial system, and has opened up the editing effect to flexibly adjust the code according to actual needs.
The second is to find a way to get rid of the labor-intensive industry’s over-reliance on people, so as to reduce costs and increase efficiency in manpower. This is not simply understood as replacing human labor with machines, because it requires the technical support of AI and big data algorithms behind it. Taking the “security patrol” scene as an example, the staffing hours, patrol routes, and whether there are any omissions are extremely uncertain, but Fengwu Technology has turned passive services into active discovery through AI, and can be detected through camera visual recognition and big data algorithms. To fully meet the needs of security, Fengwu has achieved more than 50 kinds of scene-based management like this.
Of course, Fengwu’s goal is not as simple as the community.
China’s smart city construction and grassroots social organization management, in Li Mingyuan’s view, are also opportunities for long-term development of property in the future. The government’s response management to grassroots complaints, responsibility performance and standard requirements are relatively high. High service standards have obvious advantages.
Where will the property go in the future?
Lack of competitive differentiation between the head and the long tail of the capital market
With the continuous refinement of the real estate industry, the market’s demand for property value will inevitably appear stratified.
The head market requires more diversified and more customized services for high-end real estate companies, but such real estate formats are usually like high-end hotels, which are difficult to concentrate, so they are more suitable for value investment; while the main market is still in the middle and long tail, because this Sections are usually typical and standardized.
For Fengwu Technology, the price does not affect the product itself. Fengwu’s market entry angle is the pain point demand. The medium and long-tail market solves the rigid demand. The basic products and services are standardized, and then the scale effect is formed. Continued growth in scale.
Resource reorganization accelerates property branding layout
Many leading real estate companies have established a digital demand management platform, and realized the reorganization of the effective resources of the property through the platform. From personnel and financial management, to community security maintenance, and even third-party services, they can obtain an effective combination of resources and greatly expand. extension of the property business.
In this case, large property brands with more resources usually have more integration advantages, and gradually form a branding effect. In addition, many property companies will quickly form a brand matrix through mergers and acquisitions. However, with the increase in market demand, the service subdivision of different property projects, the pain point needs of residential users, and even the broad value-added prospects of the property industry have put forward higher requirements for the branding of properties, and brand properties are gradually decoupling from real estate development. .
In this regard, Li Mingyuan is optimistic, “In the early stage of capital integration, it is normal to look at short-term performance simply and rudely, but in the future, capital will pay more attention to long-term capabilities, and there will also be some quality investment and restructuring. In particular, with some The decline or exit of real estate background properties will together promote this investment logic to maturity.”
Frontier Technology Methodology
Improve the organizational efficiency of material enterprises, rather than single-line performance capabilities
In the overall business design of Fengwu Technology, service is a very important part, but the service pursued by Fengwu Technology is not the performance capability of the C-side alone, but more importantly, whether the platform design that carries the entire service system is reasonable, and its Whether the efficiency that can empower the material enterprise organization has been improved.
Services, platforms, and organizations are cyclical and iteratively evolve. As Li Mingyuan said, the value of property is not only a service, but also a platform for carrying services. The key is to effectively integrate and restructure various resources of the property to establish a more efficient and valuable service system that can also be replicated and fissioned. Thereby improving the performance capacity and efficiency of the material enterprise organization. And Fengwu is going in this direction. Property services are only one part. Effectively combining resources to establish a value chain of platform-based management services and empowering property formats is the key.
The original intention of “care for old age”
In addition to organizational efficiency, a company’s values determine how far it can go in the future. Because technology ultimately has to serve people.
When talking about the original intention of Fengwu Technology, Li Mingyuan mentioned that “taking care of the elderly is not an easy task. Grandpa and grandma are now in their 80s. When they go home during the Spring Festival, they want to find someone willing to live in. It is very difficult to provide nursing care workers, especially now that the labor force is flowing out, and it is difficult to find such labor in second- and third-tier cities. You have to go back and take care of the elderly yourself, which is sometimes difficult to do.”
This is also a problem that everyone faces as society ages. Especially in the 1990s, most of them are only children. As their parents get older, the pressure to take care of them will be even greater. There are many problems in terms of the time cost of caring and the timeliness of communication.
Pushing himself and others, Li Mingyuan believes, “This kind of thing requires technology to develop some products, which can allow parents and children to maintain a timely communication.” But soon, he found that it is difficult to form a closed-loop communication of information by relying on the product network alone. Nor can it be solved by a smart product alone. Fundamentally, it is still necessary to solve the problem from the source of the demand. For the community, the property is the most direct contact. “If it can help the property reduce management and operating costs, they will have the time and energy to provide more subdivided services.” Therefore, it is necessary to establish a property management service platform. , which was later known as Frontier Technology.
Be the most knowledgeable about real estate technology
From the very beginning of its establishment, “accompanying” has been engraved in the DNA of Fengwu Technology. In Fengwu’s values, the product is not a cold tool, but an existence that accompanies the growth of customers and property development. In terms of organizational management, the project responsibility system is implemented internally, and all project members must understand the property, so as to have a sufficient understanding of the behavior feedback and supervision formed by users. In order to ensure this, Fengwu will also let each project member really go to the front line of the property to rotate, and better integrate the technical advantages into the details of the property management. For Fengwu, delivery is not the end of a property product. Later operations and continuous services are all important components to ensure the interests of customers.
This year is the fourth year of Fengwu Technology’s entrepreneurship. With its unique observation of the property industry and its outstanding technical advantages, it has accumulated rich experience in smart property and smart city projects. There are relatively mature projects, including mid-to-high-end residential projects, public construction projects and government grassroots governance projects. It is a leader in the field of digitally empowered properties. It is also expected that Fengwu Technology will continue to create value for the property industry and create more comfortable and better people. living environment.
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Related events
- Li Mingyuan, founder of Fengwu Technology: Technology empowers property platform value reorganization2022-07-26
- Smart community solution provider Fengwu Technology completed 500 million yuan in Series A financing2021-03-17
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