Decided to go public! Shellfish has submitted a prospectus to the SEC, and it is estimated that the total amount of funds raised will be about $1.841 billion to $2.119 billion. The Underwriters include
houses, which is an inseparable topic for everyone. Real estate agents such as chain operators and shells also play an important role in the stock housing and new housing market. Shell’s IPO attracted Tencent, Sequoia China, Hillhead, Softbank and other head institutions. Why is this “shell” so attractive to many well-known investment institutions? Let’s take a look at shells today.
real estate brokerage business can be divided into first-hand business and second-hand business according to business types. Among them, the first-hand business can be divided into first-hand case field, first-hand channel and first-hand agency business. Second hand business, now presents online and offline mutual integration, and gradually into the first-hand business situation.
real estate brokerage is an important part of the real estate industry. The development of commercial housing market and the expansion of housing scale have brought the prosperity of real estate brokerage industry. According to the economic census data, at the end of 2018, there were about 1.583 million employees in the real estate brokerage industry. In 2018, the annual income was 327.76 billion yuan, with an annual growth rate of 19.1% since 2008.
real estate brokerage business is inseparable from offline stores. Second hand brokers rely on community stores and experienced brokers to deeply cultivate community housing resources and actively match the demand for house purchase. From the perspective of industry development history, many new entrants, including the Internet, Aiwu Jiwu and other internet background enterprises, have basically failed in their efforts to “de offline”, and community stores are still an important starting point of second-hand brokerage business.
the rent expenses of stores and the training cycle of excellent brokers make the single store model run smoothly and the formation of scale effect needs long-term investment and cultivation. If the changes of real estate policies and the uncertainty of transaction volume are taken into account, it means that new entrants face greater uncertainty. Self operation + strong management and control franchise has become the mainstream mode of industry development.
58 platforms such as the same city and SouFun adopt the mode of charging port fees and bidding ranking. The so-called port fee is to let intermediary companies buy ports to send housing source information, and the information will be arranged in chronological order; therefore, intermediary companies will constantly send information, hoping to rank higher to obtain more users; in addition, there will be a small amount of top information, which is charged by bidding.
under the mode of 58 same city and SouFun, the purpose of publishing house information is to attract users to call the intermediary, so that the intermediary can obtain customers; in order to stimulate users to call for consultation, the intermediary usually puts the house information with the price lower than the market price to attract users. The platform also wants the intermediary to send the better as soon as possible, and consume more messages, and the platform can charge more money. Therefore, 58 cities and search room and other platforms slowly evolved into a false information gathering platform.
the difference between the shell and the shell is that the transaction fee is based on the transaction, and only when the transaction is completed can the money be collected. The faster the transaction is, the faster the money will be collected. Therefore, the shell has the power to drive the buyer and the seller to trade quickly. Accurate housing information, real transaction prices, and matching based on the real wishes of buyers and sellers are conducive to faster transaction.
in 2019, shell platform contributed to 1.30 trillion second-hand house sales and 0.75 trillion new house sales (first-hand channels and agents, but mainly through channels), accounting for 19.2% and 5.4% of the transaction amount of second-hand houses and new houses in the country in that year, respectively. The market share of the company is in the leading position in the industry.
in 2019, the income of shell will reach 46 billion yuan, with a year-on-year increase of 60.6%. Among them, the income from second-hand housing transactions was 24.57 billion yuan, with a year-on-year increase of 21.9%, and that from new housing transactions was 20.27 billion yuan, with a year-on-year increase of 171.3%. New and second-hand housing transactions are the most important income units.
in 2019, the commission rate of new housing will remain stable, and the commission rate of second-hand business will decrease. However, this is because of the change of the company’s income structure, that is, the non direct part only confirms the platform service fee, and will not be included in the total service commission. The real commission rate of the second-hand brokerage industry is basically stable.
in the prospectus, the founder of shell said, “in China, there are three things happening at the same time in many industries: the industry is very complex and the foundation is poor, the effectiveness is extremely low; the experience of practitioners and consumers is very poor; the industry has a huge market size and growth rate. The three things that happen at the same time will make all practitioners face the great temptation of short-term “big” opportunities. Without any improvement in efficiency and experience, they can achieve considerable growth. The uniqueness of our organization is that we firmly choose long-term interests, choose to do the “right” things instead of fast success. We have a natural aversion to taking shortcuts. We are also aware that the “right” things are often difficult and require long-term transformation of the industry’s infrastructure to improve efficiency and consumer experience, and then gain long-term business returns. Doing the hard and right thing is the way to success that we understand and believe in. ”
shell’s important shareholders include Tencent, Softbank and Hillhouse and other well-known investment institutions. The management of the company also holds different degrees of shares. The real gold and silver of these large institutions fully shows that they are optimistic about shell.
the emergence of shells has indeed improved the efficiency of the whole industry. From the perspective of industry and competition pattern, shells have the potential to become unicorn in the future. But from the investment point of view, whether the future shell can overcome the traditional brokerage model and whether the shell can earn long-term stable cash flow needs further observation.
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