Wanlian, a decoration company owned by Vanke, merged into Beike, and its expansion caused "skin-cutting pain"

Zuo Hui, founder of Lianjia and chairman of Beike.com, once claimed that he would not get involved in the home decoration industry, because in his opinion, “In the entire service industry, the home decoration industry has the worst reputation, and the second largest is In the intermediary industry, how can we combine two industries with the worst reputations?"

However, in June 2015, when Zuo Hui and Liu Xiao, senior vice president of Vanke Group, were drinking coffee at Starbucks, the two "hit it off" about the joint home decoration business. In July 2015, Vanke and Lianjia entered into a partnership. Announced a formal cooperation, and jointly established "Wanlian Home Decoration" to enter the home decoration industry, and jointly leveraged the trillion-level market in the home decoration industry.

However, five years later, Vanke chose to withdraw, and Zuo Hui planned to fully control "Wanlian Home Decoration" and merge it into Beike's newly launched new home service platform - Quilt Home Decoration.

On June 17, market news pointed out that Vanke will withdraw from Wanlian Decoration, and all its shares will be taken over by Lianjia or its subsidiary Beike Zhaofang, and then the latter will become a wholly-owned holding company of Lianjia, and The shareholding structure will be changed in the second half of this year.

In this regard, Beike Housing said, “We have reached an equity transfer agreement with Vanke. Wanlian will be merged into Beike’s decoration business in the future. This move is to further deepen the decoration chain and provide users with high-quality services. Quality home decoration service. ”

The full name of Wanlian Decoration is Vanke Lianjia (Beijing) Decoration Co., Ltd. The company was jointly funded by Beijing Vanke and Lianjia in July 2015.

Industrial and commercial information shows that Wanlian’s registered capital is 30 million yuan, with Beijing Vanke Enterprise Co., Ltd. holding 50% of the shares; Lianjia (Tianjin) Enterprise Management Co., Ltd. holding 35%; as an employee shareholding platform Beijing Jiaxinhe Information Consulting Center (Limited Partnership) holds 15% of the shares.

Being in the home decoration industry with the “worst reputation”, Wanlian once wanted to reshape this market through its own efforts. Indeed, Wanlian, which is backed by Vanke and Lianjia, ranked first in the home improvement market share in Beijing just one year after its establishment.

Data show that Wanlian’s performance in 2016 was sales of 500 million yuan, achieving a business scale of 5,000 orders. In 2017, Wanlian once targeted a 300% growth level, serving 15,000 orders throughout the year, and sales exceeding 1.5 billion yuan as its new goals. As an attempt by Vanke to transform into an urban supporting service provider, another significance of the existence of Vanke is to explore the possibilities of Vanke’s ecosystem and support the future vision of the trillion-dollar Vanke.

However, in the following years, affected by the adjustments in the real estate industry and the Internet home decoration industry, the home decoration market also entered a period of deep reshuffle and adjustment. Wanlian's original management team also experienced frequent changes. Guo Chong, the former general manager of Wanlian, and others resigned one after another, and Wanlian became increasingly "quiet." At the same time, performance is no longer the primary goal pursued by Wanlian.

The last time Wanlian appeared in the public eye was in July 2019. Wang Qifan, the current general manager of Wanlian, admitted in an interview with the media that Wanlian has also experienced the pain of declining customer satisfaction caused by rapid expansion on its development path. In its second year of establishment, Wanlian discovered that not every construction site could deliver to customers on time. After reflection, Wanlian believes that companies should focus on building their own capabilities and establishing customer reputation and satisfaction, rather than blindly pursuing scale.

An insider from Vanke Lianjia (Beijing) Decoration Co., Ltd. also told The Paper, "Wanlian will be merged into Beike. Subsequently, Beike and Wanlian will jointly lead quilt home decoration, and both parties will be responsible for quilt home decoration." Different business lines. ”

Vanke chose to withdraw, but for Zuo Hui, the home decoration industry is still a must-win.

On April 23 this year, Beike Zhaofang CEO Peng Yongdong announced at the 2020 Beike New Living Conference that Beike Zhaofang has entered the home decoration industry and launched a new home service platform - Quilt Home Decoration.

Peng Yongdong pointed out, "For us, quilt home decoration is not only a natural extension of real estate transaction services, but also an attempt for our new home decoration in the Beijing market." He believes that this track is also a very large, There is a lot of room for improvement. For Beike to find a house, this is also a process of slow first and then fast, first difficult and then easy.

As Vanke chooses to withdraw from Wanlian Home Decoration, Lianjia takes over Wanlian entirely. Wanlian, which has been in practice for five years, may be integrated with the resources of Beiwo Home Decoration.

It is understood that Quilt Home Decoration will create a home decoration experience for users that “achieves personalized design with standard precision”. Users can choose independent designers, or choose partial decoration or complete decoration packages, while the construction and delivery links are Uniformly manufactured by Quilt Seiko, we provide standardized services to ensure delivery quality. In addition, Quiet Home Decoration also enables online visualization of the entire decoration process. From entry to completion, Feiwo Home Decoration breaks down the complex decoration process into a series of service standards.