In 2015, the sales amounted to 16.8 billion yuan, the sales in 2016 was 30 billion yuan, and the inventory in 2017 was expected to reach 50 billion yuan. This is Zhongliang Real Estate Group (hereinafter referred to as “Zhongliangâ€), a company started in Wenzhou, Zhejiang 24 years ago. The growth path of the developer. In 2021, it will launch a sprint to 160 billion yuan, which means 9 times in six years.
Productism is the development concept of the founder of the company, Yang Jianzhi. In the second half of the real estate market, the profit is lower. It is commonality. At the same time as the pace is accelerating, Zhongliang will change from product side to force, return to the product itself, provide more soft services and tap the value points of more dimensions.
The establishment of a product development training base is a particularly critical step. On June 17, its Jiaxing product research and development training base in Zhejiang was officially opened. Zhongliang has become a company with its own product research and development base after several small housing companies such as Vanke, R&F, Shimao and Xuhui.
In fact, Zhongliang’s research on products has entered a new stage, and the blue ocean that has developed in the future has gradually become clear – batch decoration. “Fine decoration is also one of the core business of Zhongliang in the future.†Guo Yi, deputy director of the office of the chairman of Zhongliang Group, claimed that the media including Time Weekly.
According to Xu Zhongxin, executive vice president of Zhongliang, there are four essentials for the fine decoration of Zhongliang: livable, humanized, elegant and energy-saving. This is regarded as the foundation of Zhongliang's fine decoration products, and it is also the base of Zhongliang's involvement in the home improvement industry.
The value of the home improvement industry and the Blue Ocean, China Building Decoration Association data show that in 2015 the total size of this industry has exceeded 4 trillion yuan. It is a pity that no one decoration company has annual sales of more than 4 billion yuan, and even 1% of the market share is not. Then what is the preparation for the upstart in this big river?
Cut into the third and fourth line customer market
To be an "affordable mansion" is the slogan of Zhongliang. Up to now, Zhongliang has invested in more than 160 real estate projects across the country. Among them, Zhejiang and the Yangtze River Delta region are the main battlefields. Naturally, the next fine decoration is aimed at the middle class and top class in these areas.
“In 2017, the company will have at least 800,000 square meters of available space for sale in batches.†Gan Lai, general manager of Zhongliang Product R&D Center, said.
Japan’s level and efficiency in batch hardcover and construction management have impressed Gan Lai. “A 30-story building is full of water-flowing operations. From design and construction to every step in the entire industrial chain, even Accurate to the minute.†Gan Lai said to the reporter of Time Weekly that although there is a certain gap with Japan, the industry has become a trend.
From his experience, fine decoration is promising. First, China's real hard-loaded housing only accounts for 20%, and the market prospect is broad. Second, the current housing enterprises are only just beginning to explore the fine decoration of customers in the third- and fourth-tier cities, and the market structure has not yet formed.
The government has already appealed to the fine decoration. In Zhejiang, the birthplace of Zhongliang, the government requested that all new houses on the land be transferred or allocated in the central area of ​​the province, city, and county from October 1, 2016, all of which will be fully renovated and delivered.
Smelling the policy, Zhongliang urgently launched the construction of the R&D center in October last year, and undertook the fine decoration of the project of about 1/4 of the Zhongliang. It is reported that nearly 10 million yuan has been invested in the base, which is a big deal.
The speed is also fast. Compared with the ten-year hardcover road of the benchmarking enterprise Vanke in the fine decoration field, Zhongliang spent only half a year. The product research and development training base shows the research and development results of Zhongliang. Time Weekly reporter noticed that four sets of fine decoration standard model houses, two sets of standardized technology halls, craft work area and material parts area clearly displayed the real estate developers and designers. Real estate process information is developed by engineering parties, households and other real estate.
Gan Lai believes that there are two cores for bulk hardcovering: the ability to allocate costs in a limited budget and the ability to negotiate bargaining. “Knowing the needs of customers and using the money in the cutting edge can win the market.â€
In terms of cost allocation, Zhongliang has its own proportion. “30% is visual effect, 20% is humanized, and 20% is storage. There are other parts.†Wu Liang, the person in charge of Zhongliang, said.
Zhongliang is particularly focused on the preferences of customers in third- and fourth-tier cities. Taking the floor as an example, the R&D team found that customers in third- and fourth-tier cities are more likely to accept marble-like bricks instead of the relatively low-priced wooden floors like first- and second-tier cities.
Purchasing bargaining power is another major aspect. With the help of Zhongliang's local reputation and quantity, it can deliver brand blessing and cost control capabilities for the business. It is understood that Zhongliang can get the material of about 50% of the retail price of the market. Most of the small owners can only buy 20% off when they buy it.
At present, Zhongliang has formed a complete set of logic for its own products, which is summarized as four needs (safety, comfort, health, intelligence), six senses (visual, warm, listening, touching, smelling, smelling) theory and Thinking about the nine ingenuity systems. The all-round storage system, intimate kitchen system, green health system, comfortable bathroom system, ingenious quality control system, intelligent living system, detail and living system, customized upgrade system and high-end brand system constitute the nine ingenuity systems.
Everyone understands that what is needed now is not just the developers who will build a house. How to understand customers and make better products is king. How can Zhongliang do better in breaking through.
The details are an important aspect. According to the Times Weekly reporter, Zhongliang is equipped with more than 200 details, 52 details of the bathroom, 44 details of the kitchen, and 24, 25 and 23 details of the bedroom, entrance and living room, respectively. It includes entry details, restaurant details, balcony details and intelligent details.
Product development and customization
Of course, Zhongliang’s research on products is far from the same.
According to the reporter of Time Weekly, in Zhongliang, there is a set of product standard system called “33NXâ€, which is launched for the band-type market, closed market and spillover market, and introduces three kinds of product models named after the watch, Patek Philippe, Rolex and Longines. . In the name of the watch, it is the classic, precise and ingenuity of the watch. These three points are also the classic elements in the design of the product line of Zhongliang.
This product model plays a key role in the urban layout of Zhongliang. It has the flexibility to adapt to local conditions: each product model has three product lines, each of which consists of N standardized modules and is combined with the middle beam. The layout of the project forms a warehouse of X-type houses, realizing the full coverage, micro-innovation and rapid landing of the standard product line of Zhongliang in all levels of the market.
As a result, the center beam has an advantage in cost control. In fact, the key to cost control of real estate projects is the design phase. The design cost of 1.5%-3% determines the final construction cost of 70%-80%. The middle beam cut into the batch of fine decoration, also means that the cost control work has been done at the design stage.
The cost control of the middle beam has already started from the definition of the target customer group. It is not the same target group as other real estate companies. The hardcover span of Zhongliang is not too big. It locks in four types of customers: mid-range, high-end, mid-to-high end and luxury, corresponding to Class D 600 yuan / square meter. , Class C 800-900 yuan / square meter, Class B 1000-1200 yuan / square meter and Class A 1500-1600 yuan / square meter of decoration standards.
Although the price gradient is not large, product characteristics are easily distinguishable. The highest standard Class A adopts the American classic Baker style, with high-gloss stone surface and stone elements. The B category is mainly comfortable, with white as the main color, paying attention to functions and effects; Class C is Hong Kong-style modern style, used A large number of wallpapers, door frames, etc., create a modern sense of clarity while creating a sense of dignity; the lowest standard Class D is aimed at younger customers, using Mediterranean style to create a free, open yet romantic decoration style.
It can be expected that in the field of fine decoration, Zhongliang will bring a new wave. In the past, the existing business model of the home improvement business was that the price per square meter was fixed, the size of the apartment determined the total investment, or the price route, or the style route. The home decoration of Zhongliang provides other layers than price and style.
The key point is that the above four categories are just a basic package. In addition to providing the original basic business for the owners, they also provide value-added services. The owners can choose additional installation packages, such as smart home decoration.
However, this is far from the calculation of Zhongliang. In the future, Zhongliang’s batch hardcover is the road to customized bulk hardcover. In fact, it has taken the first step. At present, Zhongliang has already cooperated with Shanghai Quanzhu Building Decoration Group Co., Ltd. (hereinafter referred to as “Full Buildingâ€), a company that specializes in bulk hardcover business.
“All customers can choose in their own products, such as what fabrics are used, what kind of cabinets are used, and how big is the cabinets. Is it possible to add some drying racks separately, so that the security system can be separately mentioned? Request." Gan Lai introduced.
The product development and training base of Zhongliang also has the function of industrialization. In the future, the construction project of the Zhongliang project and the contractor of the project will all enter the product development training base. "We hope to do every step as much as possible. The semi-manual industry cannot be 100% guaranteed to have no problems, but we will try to minimize the problem." Gan said.
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