Numerous experts exposed that Douyin Real Estate went through a brand-new round of structural modifications in February this year.
Following the modification, Douyin’s realty organization is divided into 2 departments: Real Estate Department One and Real Estate Department Two. The previous head of the vertical service in the realty market at Ocean Engine, Zhou Hongzhen, has actually moved to Douyin’s realty department as the head of Real Estate Department One, accountable for organization and sales. The functional instructions of Real Estate Department Two is a port sales design comparable to Anjuke.
Both department heads reported to Zhu Shiyu, the individual in charge of Douyin’s realty and home design. The previous head of Douyin’s genuine estate, Liu Juan, now serves as the head of production operations.
This suggests that the Douyin property company has actually completely changed into an online company, with CPS and marketing becoming its primary service instructions. CPS means expense per sale, which is an online realty deal commission design. In easier terms, it indicates utilizing live banners to assist property designers offer residential or commercial properties, generally brand-new homes.
The press reporter looked for verification from ByteDance on the above info, since the time of publication, there has actually been no reaction from the other celebration.
According to reports, business design of Douyin Real Estate has actually gone through a number of changes. Formerly, Douyin Real Estate’s company consisted of 2 instructions: Xingfuli and Douyin Real Estate. In 2020, Douyin Real Estate’s Xingfuli company benchmarked Beike, going into brand-new home and pre-owned home deals through self-built groups, financial investments, and other types. The design of Douyin Real Estate resembles Anjuke; realty representatives and brokers can open ports, pay the platform charges to release residential or commercial property details, and acquire sales leads.
By the end of 2021, Xingfuli withdrew brand-new home sales in numerous locations. In regards to pre-owned real estate deals, Xingfuli purchased Maitian Real Estate in 2021 and opened an offline property brokerage shop “Xiaomai Real Estate” in Fujian. In May 2023, Xingfuli moved more than 200 shops to Maitian Real Estate and left offline pre-owned real estate deals.
Last December, Xingfuli and Douyin Real Estate combined to form the Douyin Real Estate company platform, transitioning to a brand-new CPS organization design.
Before the improvement of realty on Douyin, Kuaishou’s realty company ‘Ideal Home’ had actually currently taken the lead in carrying out the CPS design. According to information formerly divulged by Kuaishou Ideal Home, the typical deal conversion rate of Kuaishou realty anchors is in between 20% and 30%.
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According to sources near Douyin Real Estate, Douyin Real Estate has actually hired a previous magnate from KuaiShou’s Ideal Home and began piloting the CPS design in Chengdu in 2015. At the December launch occasion in 2015, Douyin Real Estate presented the ‘Superior House’ system to assist realty developers better attain content acquisition, lead management, and conversion follow-up.
An expert from ByteDance examined that the withdrawal of Douyin’s property service from offline operations and its complete shift to online is a lead to line with ByteDance’s internal ‘service focus’ tactical instructions. In 2015, ByteDance CEO Liang Rubo shared the business’s brand-new tactical objectives at the 11th anniversary yearly conference, mentioning that in the coming year, the business will concentrate on purchasing its info platform and e-commerce as its 2 core companies.
In addition to the offline exit of the property organization, another organization under Zhu Shiyu’s obligation, Douyin Home Decoration, has actually likewise changed its functional instructions.
Last month, Douyin’s self-operated home decor company Zuhaojia suspended offline operations and stopped taking brand-new orders. Clients who have actually signed agreements however have actually not yet been carried out are presently being interacted with for refunds. A market expert exposed that Zuhaojia will present top quality home decor business in the future, transitioning from a platform design to a guidance mode and beginning pilot tasks.
From an organization reasoning point of view, both the property and home design services of Douyin have actually deserted the heavy offline company design and transitioned to the light-asset online design, which ByteDance is more proficient at.
An individual in charge of a firm working together with Douyin’s property CPS program stated that from the viewpoint of the anchors, Douyin’s realty material is not down-to-earth enough, it is more high-end, and there are substantial distinctions in design compared to property financial organizations. ‘Real estate representatives are more rough and down-to-earth.’
The head of those company mentioned that presently, Douyin Real Estate has actually set reasonably clear efficiency objectives for its partner organizations. Douyin has a big quantity of traffic, Douyin Real Estate is still a brand-new platform, and it is challenging to identify the conversion rate. Some partner organizations of Douyin Real Estate likewise have some problems.
According to feedback from several partners, the property system gotten ready for launch by Douyin was called “Haoduofang” at first, however due to its absence of functionality, it was later on repeated with a brand-new system called “Juhaofang”.
“Kuaishou Ideal Home has actually been checking out CPS for over a year, and its services and products are fairly more fully grown. In the future, Douyin Real Estate will still require to follow in the steps of Ideal Home.” stated the head of those company.
Last December, the info launched at the Douyin Real Estate conference revealed that by December 2023, Douyin Real Estate had actually currently landed in over 25 cities across the country. In 2024, Douyin Real Estate will broaden its cooperation scale and its company will land in 50 cities, presenting over 100 partners.
The CPS organization of Douyin property has actually set targets for 2024, consisting of the variety of cities opened, the scale of brand-new residential or commercial properties established, and deal volume.
One partner stated that the overall deal volume set by Douyin Real Estate this year is low, generally following Kuaishou’s Ideal Home, which accomplished an overall deal volume of around 50 billion yuan in 2015.