“Quality rental choose Ziroom”

Founded: 2011 in Beijing, China

Category: Real estate & rental services

Primary office: Beijing, China

Core technical team: Beijing, China

Status: Private

Employees: over 10,000

Amount raised: $2.1 billion (4 rounds – 2020)

OVERVIEW

  • An online-to-offline company that provides quality residential products and professional daily life services

 

PERFORMANCE METRICS

  • Valuation: $4.5 billion (2020)
  • Revenue: $1+ billion (2019)

 

ACHIEVEMENTS 

  • 1+ million freely managed houses
  • 500,000+ service owners
  • 3+ million tenants
  • China’s leading long-term rental apartments company, stationed in 9 cities across the country: Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing, Wuhan, Guangzhou, Tianjin, and Chengdu
  • Won “Internet Innovation Practice Model” at 13th China Internet Conference (2014)
  • Ziroom marketing processes form case studies for MBA teaching by Tsinghua University and China Business Administration Case Center
  • Ranked No.57 on Hurun Global Unicorn List (2019)

Sells

  • Rental services
    • Ziroom Youjia: Long-term flat share to young professionals with limited budget
    • Ziroom Zhengzu: Long-term entire house rental to young professionals with good budget
    • Ziroom Lvju: Short-term bed and breakfast for travelers
    • Ziroom Yu: single high-quality youth apartment for Generation Z
  • Additional Services
    • Ziroom moving services
    • Ziroom cleaning services
    • Ziroom home maintenance services
    • Ziroom U Pin: Sell furniture and household items to users

Channels

  • Mobile app and website (with user-friendly interfaces)
  • Service marketing: provide quality service to enhance customer satisfaction and increase loyalty
  • Organize interactive social activities to attract new users and enhance company/customer interactions (e.g., night running club, cycling club…)
  • Social media marketing (e.g., Weibo and Wechat)
  • New user first month rent free
  • Targeted advertisements
  • “Haiyan Plan”, which provides special support for new university graduates with their rental payments and avoiding deposit

Competencies

  • Deep understanding of targeted users (white-collar workers and Generation Z in big Chinese cities)
  • Community building and inventing a new rental market pattern using online-to-offline model
  • Data modelling, artificial intelligence
  • Software research and development build an online rental service platform covering all aspects of renting
  • Development of technologies for controlling apartment smart devices using an App

Resources

Assets

  • Powerful stakeholder – Lianjia
  • Created largest online-to-offline youth community in China
  • Quality rental housing resources and professional staff to provide services (all properties are professionally designed, fashionably decorated, brand appliances, ensuring the quality and comfort of the house; provide tenant insurance, double week cleaning service, professional maintenance, and moving services)
  • Strategic partnerships (e.g., JD.com to launch Ziroom Baitiao; real estate developers for housing resources and shared customer base; home appliance suppliers and furniture suppliers; China Quality Certification Center to promote the establishment of industry standards; and China Foreign Economy and Trade Trust Co., Ltd. to issue asset-backed securities)
  • Highly educated, high income clients living in big cities with quality of life requirements

Processes

  • Houses and apartments are sourced from their owners, renovated using standardized template, and then rented out at above-market prices
  • Ziroom Yu apartments are directly sourced from real estate developers, with common areas including gyms, game rooms, cafes, restaurants
  • Additional services provided over-and-above straight renting (e.g., moving services)
  • Processes to ensure and improve the professionalism of employees and to better serve customers
  • Processes to build communities
  • 3-day full refund option for dissatisfied tenants

Priorities

  • Customer first with a focus on the good interaction between customers and the company
  • Innovation of products and services
  • Diversification of product and service offerings
  • Increase number of partnerships

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Increase demand by using scientific and technological advances to develop innovative products and services
  2. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
  3. Increase sales by offering a variety of products and services to each market
  4. Advance product designs and high-quality customer services to increase demand
  5. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace