In-depth interview background
Kerui first proposed "service capability" in 2020 to measure the future-oriented comprehensive competitiveness of property service companies. Service capability is the ability of an enterprise to continuously and innovatively meet customer needs. In 2020, Kerui released the relevant research results at the Kerui New Gravity Summit, and formed a book to interpret the service ability - "Service Ability: How Material Enterprises Can Continuously and Innovatively Meet Customer Needs", which has been widely recognized by the industry. positive response from outside.
has entered 2021, and this year's national service capability survey has officially kicked off. In order to do research more solidly, we will enter excellent enterprises and projects, communicate with enterprise management and specific business service personnel, obtain relevant practices of enterprise service capabilities, capture the shining points in enterprise management services, and form relevant research results .
Following 2020, Kerui Property Management will continue to launch a series of high-end in-depth interviews on China's property service capabilities, interpreting the choices of companies under the transformation of the property management industry from the perspective of industry leaders, and jointly promote the industry to reach a consensus on "service capabilities".
This issue of Kerui Property Management's exclusive dialogue Li Dalong, executive director and president of Ya Life Group , brings you an interpretation of service power from a new perspective.
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In February 2018, Ya Life Group successfully landed in the capital market. At the beginning of its listing, it set a "three-year plan" and planned to achieve 10 billion revenue in 2020. Now that three years have passed, Ya Life Group has successfully fulfilled the target .
can achieve such a leap-forward development, thanks to what insights into the "service capability" of Ya Life Group in the past?
In November last year, Ya Life Group changed its name to "A Life Smart City Service Co., Ltd.".Recently, Ya Life Group acquired 5 leading comprehensive service companies in cities including Shaanxi Mingtang, Beijing Huifeng Qingxuan, Dalian Dalian, Anhui Yurun and AVIC Beautiful Urban and Rural for RMB 1.18 billion, and entered into a new track of urban services. , and officially released the "double 100 billion" strategic goal (1, refers to the market value of company exceeding 100 billion; 2, incubating new industry clusters with a market value of 100 billion).
Ya Life Group's big moves are so frequent, what is the consideration behind the future development of "service capability"? As far as
is concerned with the current material enterprises, the expansion of scale and is indeed an important goal of development, but it is also worth thinking about how to upgrade the dimension after the scale reaches a certain size.
has successfully entered the forefront of the industry through the "three-year plan", and has clearly defined the future "double 100 billion" development goal of Ya Life, whether based on past scale growth or consideration of business exploration, it is undoubtedly an excellent one. research sample.
In April 2021, Li Dalong, Executive Director and President of Ya Life Group, accepted an exclusive interview with Kerui Property Management, which gave us the opportunity to follow his perspective, review the development past, deduce development trends, and deeply analyze his perception of "service capability". knowledge and practice.
Wonderful Views
· Talking about Industry Cognition
The overall market capacity of the property management industry is very large, but there is still a large space for integration.
· Talking about enterprise development
Ya Life Group is the first in the industry to propose to transform into a platform-type enterprise, and put forward the strategic goal of "double 100 billion": First, the future market value of the property management business will exceed 100 billion; Cluster, in 3 to 5 years, the valuation of and can also reach 100 billion.
· Talking about service capability Understand
Service capability in a narrow sense is service quality, and service capability in a broad sense can be summarized as brand premium capability, platform construction capability, and innovation incubation capability.
The following is a transcript of the dialogue, with some abridged
Last year was the final year of the "Three-Year Plan" of the Ya Life Group. The annual revenue exceeded 10 billion, and the management scale exceeded 700 million square meters. This is compared with the beginning of the Ya Life Group. , can be said to usher in "leapfrog growth". How does Ya Life do it?
Li Dalong: First of all, Ya Life Group has gradually started to market from serving real estate before, is one of the first group of head property companies that started to fully market ;
Second, Ya Life Group saw the industry opportunities for integration. The entire property management industry of is still in a relatively fragmented state, and there are many opportunities for integration. Therefore, at the beginning of the listing, we have carried out a strategic layout of and , and plan to use 65% of the funds raised to integrate the industry. The integration action is mainly based on the following considerations: first, to make up for the insufficiency of regional distribution; second, to make up for the insufficiency of the business format to create a whole industry chain; third, to improve the ability.
Therefore, on the one hand, the development in the past two years comes from the accurate positioning of Ya Life Group in the strategic direction, which is forward-looking; on the other hand, it comes from the professionalism and strong execution of the team. What kind of vision is the goal of "double 100 billion" mentioned at the
performance meeting? To build an industrial platform company with a valuation of 100 billion within 3 to 5 years, does it mean that the existing business sector should be split into a separate listed entity?
Li Dalong: Ya Life Group has been focusing on scale development in the past few years, and has continuously improved our brand power and market share, and now has a good foundation.Regarding future development, our thinking is: if an enterprise wants to develop for a long time, it needs to become a platform-based enterprise. Therefore, Ya Life Group took the lead in proposing to transform into a platform enterprise. It is also in this context that we proposed the goal of "double 100 billion": the first "100 billion" of
refers to the development to a quality scale Transformation, enhance the capability of the industry, and reach a market value of 100 billion at the main business level. establishes brand influence in every segment and format, and plays a supporting role in the future market expansion. At present, the market value of Ya Life Group is close to 50 billion. With the continuous improvement of scale and profitability, it is believed that the market value should exceed 100 billion. The second "hundred billion" of
refers to the transformation to an ecological platform and the layout in the subdivision track. Different industries and different innovative businesses of can develop independently, creating new industry groups, and their valuation can reach 100 billion in 3 to 5 years. As far as the future is concerned, after the market is integrated to a certain size, the key to development is the product strength, industrial capability, cluster operation capability and innovation capability of the enterprise. The goal of "new 100 billion" is because the valuation methods and profit models of innovative industries are different from those of traditional properties, so they must be deployed separately. Incubation of innovative industries tests whether companies can go to the next level.
Ya Life Group currently has five major industrial sectors: residential , social business, commercial writing, public construction, and urban services. The future industry group with a valuation of 100 billion includes both existing industrial companies, such as the above five sectors; It includes innovative industries that are incubating, such as housekeeping, childcare, home care, catering and other services. How
builds industrial capabilities through mechanisms, incentives and team configuration so that it can operate in a market-oriented manner and reflect its own value is the focus of business development at this stage.
Ya Life Group subdivides the "city housekeeper" business into urban services and public services. What is the purpose of such a division? When undertaking the "city housekeeper" business, how should various industrial companies coordinate?
Li Dalong: There are both linkages and differences between urban services and public services. Business segmentation is for professional and deep cultivation. The
linkage is because the city service has actually moved from property management in buildings such as public services to a wider range of city-level property services. The difference between
is reflected in the following three aspects:
is on the market side, and public services are mainly for government recruitment and property services, such as China Art Palace , Shanghai Natural History Museum currently managed by Ya Life Smart City Service , unlike city services.
On the operational side, city services often involve asset and equipment management, while public services are less involved.
On the supervisory side, city services are supervised not only by the government but also by the public, so city services have assumed more social and public responsibilities.
Urban butler service projects take the urban service sector as the main body of negotiation, but at the group level there will be market and brand coordination and support. The property scene provides corresponding professional services, and finally forms an integrated solution to jointly solve the pain points and difficulties encountered in the process of urban management.
Aya Life Group has 60% of the area under management in the Yangtze River Delta and the Greater Bay Area. What factors should you pay more attention to in terms of city entry?
Li Dalong: The Yangtze River Delta and the Greater Bay Area account for a large proportion. On the one hand, this is the most developed place in China's service industry, and many service companies in the area are at the forefront of the country.Through the cooperation with these excellent enterprises, the ability of Ya Life Group has been indirectly enhanced.
On the other hand, the more developed the service industry, the more intense the local market competition and the higher the threshold. Participating in competition in such a market requires long-term accumulation and precipitation. In order to quickly enter the market, Ya Life Group adopted the equity cooperation method, cooperated with three top 10 enterprises in Shanghai , and cooperated with Shenzhen , one of the largest third-party property companies besides real estate companies. , these equity cooperation also increased the proportion of the two major urban agglomerations.
Now, Ya Life Group's service projects are mainly concentrated in first-tier cities, new first-tier cities and second-tier cities. Except for Hong Kong, Macao and Taiwan regions, it has achieved full coverage of all provinces, municipalities and autonomous regions in the country.
Will Ya Life Group continue to acquire some high-quality property companies this year? How about the screening threshold standard ?
Li Dalong: Ya Life Group has a set strategic direction, and has a set of formed judgment criteria for acquisitions.
The first is to look at the team, mainly examines whether the team's philosophy, values, and vision are consistent, whether they are willing to pay for the property management industry, and jointly make the company better.
The second is to look at market competitiveness, such as brand and word of mouth. For service companies, this is the long-term core competitiveness. As long as
meets the above standards and can meet the investment calculation requirements, there is the possibility of equity cooperation. In addition to industry integration, this year, Ya Life Group proposed to carry out endogenous growth, and the market expansion reached 100 million square meters. At present, the market expansion in the first quarter has approached 30 million square meters, and we are still very confident in achieving this year's goal.The brand integration after the acquisition of
is a major problem in the industry. How does Ya Life Group handle it? How to coordinate the service standards of various brands?
Li Dalong: At present, Ya Life Group implements the strategy of "one product with multiple brands":
"One product" means to have a core brand. For example, in the residential field, Agile Property is the core. It has been deeply cultivated in this field for nearly 30 years, and its service reputation and service system are leading in the industry.
"Multi-brand" In terms of "multi-brand" , Ya Life Group has also cooperated with some residential property brands, such as Harbin Jingyang Property and Ruixiang Shangfang Property, which have empowered and improved their brands and gradually formed differences. change. In addition, in the non-residential field, Ya Life Group has also cooperated with Shanghai Minghua Property, Shenzhen Longcheng Property, Guangzhou Yuehua Property and other brands, and subdivided the brands according to business formats and regions, and quickly established these brands. Brand moat in the field. In this way, Ya Life Group has formed its own brand matrix, including core brands and subdivision brands. Under the overall planning of the strategic market center, it can be said that Ya Life Group has come to the forefront in terms of brand integration by expanding the market with the best qualifications, brands and service systems within the group.
Is there a business format that Ya Life Group pays more attention to?
Li Dalong: In the area under management of Ya Life Group, 40% is residential, 40%+ is public construction, 15%~20% is commercial, T0 C (Customer), T0B (Business) and T0 G (Government) The proportion of business formats is very balanced.
First, the balance of this business format shows that we are a property service group with the entire industry chain or all formats, and can provide a variety of property services.
Second, a balanced business layout has higher anti-risk capabilities.The conversion of new residential projects is easily affected by the cycle of the real estate industry, and the balanced layout of the business format makes it more resistant to cyclical risks.
Third, there are different service standards and service systems for different sub-sectors, which can make Ya Life Group more professional in the format, and the future development will be a more balanced development.
What challenges has Ya Life Group encountered in the process of rapid development?
Li Dalong: The property management industry has now entered a period of rapid integration. The problems faced by Ya Life Group today are also the problems that most property companies have to face. On the one hand,
is the supply problem of talents . Before , the talent structure was relatively simple, and now it needs talents of different dimensions. At the group level, what is needed are strategic compound talents who understand property management, innovation, and the implementation of strategies; at the project level, what is needed are operational talents. The Ya Life Group established the Ya Life College, which trains, promotes, rotates, and finally takes the job with a certificate.
on the other hand is a matter of digitizing and standardizing . The physical enterprise has developed rapidly, but digital transformation and service standardization have only started in the past two years. For digitization and standardization, I think it is necessary to do digitization on the basis of operational standardization. Ya Life Group is currently formulating standards for different business segments and different service products, and then formulates a digital management and control system for these standards, and reversely supervises the implementation of these standards through digital means.
At present, Ya Life Group is responsible for providing the platform, and its technology companies conduct experiments and output of digital management of operational standards within the ecosystem. After the standards are perfected, they are not only suitable for self-operated enterprises, but also for equity cooperation units. a platform.After acquiring a company in the future, it will also use the platform's standards to output service standards and correct errors. Technology companies implement an internal settlement mechanism within the ecosystem to be responsible for their own profits and losses. When technology companies can truly achieve marketization, it means that the standards of this platform have been recognized and accepted by the industry.
How does Ya Life Group view the community business field? From your perspective, what metrics would you use to measure opportunities in the field of community commerce?
Li Dalong: rental and sales and Mercure have strong real estate attributes, and the property companies that are backed by the large real estate company have natural advantages. At present, the rental and sales business of Ya Life Group is developing well. Mercure’s business is not limited to new houses. It also has different products and renovation plans for 5-, 10-, and 15-year-old houses. Specialized divisions and professional companies are doing it, and the business model is relatively mature.
For other innovative businesses, it is still under study. Because the real estate attributes of innovative businesses are weak, and the living and consumption attributes are strong, sufficient professionalism is required to open up the market. Therefore, businesses such as housekeeping, childcare, and home-based elderly care must be professionally operated in the future. Due to the large differences in the valuation models of different formats and industries, the assessment standards are also different.
At present, many people in the Ya Life Group's team are not from property backgrounds, but from the Internet, information processing, operations and even other industries, which is to meet the characteristics of innovative businesses. The amoeba mechanism is also adopted in the organizational method of the innovative business company, and will be assessed and motivated in a suitable way. Therefore, the basic market of Ya Life Group should be stable, but it should be more active in innovation.
Will the professional company you just mentioned be a direct subsidiary of Ya Life Group in the future, or will it serve as a supplier for all property management companies?
Li Dalong: has two modes, is a platform mode, Ya Life Group is only a customer of a professional company, and it will have other customers; the other is a direct subsidiary, but The internal market-oriented settlement mechanism is also needed in the member enterprises within the group, and their market-oriented capabilities are continuously cultivated. Of course, different businesses have different development models and valuation models, but we must create such a market-oriented development atmosphere. In the future, the transformation direction of Ya Life Group is to be an ecological platform enterprise, and more new businesses should be incubated.
With the transformation and adjustment of the business, what changes have taken place in the organizational structure of Ya Life Group?
Li Dalong: At present, the organizational structure of Ya Life Group is a "three-level management and control" model. The first level of
is the first-level department of the group. The main function of is platform function, setting strategic direction, and controlling compliance risks, including market, investment, finance, manpower, information, risk control, etc. In particular, we have newly established a post-investment management center, which mainly manages and evaluates post-investment risk control, equity, and performance. The second level of
is the industrial company level. currently has five industrial companies: housing, public construction, business writing, social business, and urban services. The main functions are to research industries, innovate products, build operating systems, and control service quality. more professional. The third level of
is the business entity level, and includes business entities such as regions, professional companies and equity cooperative enterprises. At the group level,
are all platform talents; at the industrial company level, they are all professional talents; at the regional company level, they are mainly management talents.Through such a division, it can not only do full authorization, but also do risk management and control, which can be regarded as an organizational structure of three-level management and control.
How do you understand the concept of serviceability?
Li Dalong: Service power in the narrow sense of refers to service quality, but with the continuous development of the property management industry, the scale of the industry continues to expand, the management scope and service dimensions are becoming wider and wider, and the concept of service power has become broader.
is the first, and the service capability is reflected in the "brand premium capability". brand power is also customer word of mouth, is the quality of service. As a service enterprise, the future market competition must be the competition of brand power.
Second, the service capability is reflected in the "platform construction capability". This is a brand new challenge for property management companies, because the current property management companies not only have self-operation, but also third-party takeovers and equity cooperation. What is behind building a platform is the standardization and technological capabilities of the property companies. And whether the ability to cultivate talents can support the rapid expansion of material enterprises.
Third, the service capability is reflected in the "innovation incubation capability". In a relatively traditional industry such as property management, property management companies must continuously improve service quality, reduce staff and increase efficiency through technology, so as to improve corporate profits and improve service experience. In addition, can it be possible to transform a material enterprise from a labor-intensive enterprise into a technology-based enterprise through technological iteration? This will be a challenge that all companies will face. Finally, enterprises also need to innovate at the level of incubation industries. Whether or not they can incubate innovative industries determines the ceiling of the revenue of material enterprises. From my personal understanding,
’s broad service capabilities include the above three aspects: brand premium capabilities, platform building capabilities, and innovation incubation capabilities.
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