Fangdd: Exploring the Influence of Industrial Internet
Baidu (Nasdaq: BIDU), Alibaba (NYSE: BABA) and Tencent (HKEX: 0700) released their first-quarter earnings reports recently, showing an overall decline in advertising revenue.
Among them, Alibaba Group Holding Ltd.'s revenue and profits fell short of expectations, Tencent Holdings Ltd.'s revenue and profit growth slowed, while Baidu Inc. had its first loss in 14 years, with advertising revenue at a decline.
Investors believe that the industrial internet revolution will significantly upgrade the industrial value chain.
Baidu Advertising Revenue Decline Becomes a Trend
The main reason attributes the internet enters the “second half” of the industrial Internet. Since last year, the industry hope to have another potential, huge, and higher-value industrial market.
The Rise of Fangdd Industrial Internet Platform
Yi Duan, the founder and CEO of Fangdd, summed up the new opportunity. The upgrade of all business models must lead to the upgrade in operational efficiency and the optimization of the cost structure. If these two points are not achieved, all upgrades are false propositions.
On May 18, Duan proposed the concept of “private traffic” in the class of Entrepreneurial Dark Horses firstly. He explained how to grasp the opportunities in the industrial internet era and seek platform development. He said that the rise of “private traffic” has led to the forced separation of traditional traffic. To build an open platform is the way to transform and upgrade the traditional industry.
Private Traffic Reaches Success
Fangdd has been committed to building an independent and open platform for agents. Duan explained that in the past, traditionally, newly-entering agents could only reach 1-3 customers per week. Although these traditional platforms could bring in customers, they operated with high costs and low efficiency. Agents need to attract customers efficiently through “private traffic” and operate their own business. Fangdd is helping agents to operate.
The internet has greatly changed real estate. Data shows that during the period of house sales, 25.7% of agents update and maintain the listing online every day, and more than half of brokers update the listing every week. 69% of brokers use WeChat and moment as the most common channels selling the houses. In first-tier cities, 52.4% of the clients obtained information on housing through the internet. More than 50% of brokers spend about 500 yuan on internet platforms every month.
Fangdd focuses on real estate brokerage services and insist on operating an open platform. The model of building “private traffic” for merchants is: first, gather customers online, then use data to help agents. Finally, through the algorithm model and the products to achieve accurate data exchange, and then enhance the transaction efficiency through empowerment.