Media Focus

Cheng Fang: The "Extremely Fine Steel" could not Beat the "Pliant", "Soft Service" Becomes the Trump Card of Science and Technology Based Real Estate

Time:2016-10-14 16:01    Publisher:tiholding

Author: Cheng Fang, the president in THTI Co., Ltd.

Five Elements is a kind of systematic perspective for Taoism in China, and Chinese ancient philosophers explained the formation and mutual relationship of all things in the world with the theory of Five Elements. Nowadays, most people like to laugh at themselves with Five Elements but lack of money. Actually, the soil has the most close and complicated relationship with human from beginning to end among the five elements: the land is the base for human, the foundation for humans survival and development, and also the standardtomeasure the wealth and status.

So, we can often hear such topic: the house price hasrisen, it rose again, buy a house, can not afford to buy a house, when can I afford to buy a house... If the residential property is the debris flow forever in the real estate industry, the scientific real estate to be talked about att oday can be regarded as a clear spring in the industry.

The earliest form of scientific real estate is mainly concerned on the science park, one park and sixteen parks in Zhongguancun are typical. However, many traditional industries are overset along with the progress of science and technology especially the development of Internet.Moreover, the accelerated internationalization makes the scientific real estate have new form on the type, such as the emergence of neighborhood, community and small city. The science and technology industry enters into a new round of change and renewal, the scientific real estate industry is also looking for the right exit. Winston Churchill once said: the optimistic person can see the opportunity in each crisis, while the pessimistic person can only see the crisis in each opportunity. In the reform, the one who seizes the opportunity and resolve the crisis can become the leader in the industry. Among the round of upgrading process of scientific real estate, Mao Daqing from Vanke created Urwork, Pan Shiyi launched SOHO 3Q, HuJing from Greenland gathered the distributed mobile office with Distrii, Tiholding also cooperated with World Union to launch the youth entrepreneurial comprehensive platform Creative Young Community, the innovation and transformation become the choice in the industry.

Among them, we have to mention WeWork, the originator enterprise for WeWork space with a hot degree recently. WeWork is a typical representative of shared economy, it launched the new concept of WeWork and realized the online and offline connection via software technology and physicalspace, 113 WeWork spaces have been openedin 33 countries. It can be said thatit have got the market recognition on the mode innovation and practice.Moreover, the domestic innovation incubator pioneer garage coffee and 3W coffee,Innoway Tiholding participated in the planning and operation, Hangzhou YuhangDream Town and other tries in many space forms also have made the phase dachievements.

However, the invisible crisis may be hidden in all changes mentioned before. We can know from the media report, the number of maker space in China has surpassed 2300 in 2015, while that of WeWork space inUS has increased to 3000 in 2015 from 250 in 2010. The rapid emerged enterpriseand capital accelerated the industrial competition and compressed the profitspace of separate individual. In 2016, the expected profit of WeWork decreased by 78% from $65 million to $14 million. Meanwhile, the occupancy rate of manymaker spaces is also declining. There are two core points: firstly, the emergence of large number of agencies causes the mixing in the industry; secondly is the single service function and deviated user location in some science realestates.

In the future, what kind of space is more vital? Where is the new energyfor scientific real estate?

Firstly is the layout. Throughout the whole scientific real estate industry, there are more and more international layouts,different incubation and enclave incubation. Currently, the development mode in the enterprise managing the scientific real estate industry mainly focuses onthe expansion of scale and land. Actually, the increase of amount can bringsome benefits, while the layout shall be oriented on the demand so that it canplay the role. In thecase of gradual saturated market in Beijing, Shanghai,Guangzhou, Shenzhen, the second-tier cities with good economic base, convenient geographical position, good surrounding infrastructure, rich human resource and broad market channel shall also be considered. Meanwhile, we shall cooperate with the county having powerful economy with a huge thirst for the science and innovation. On the premise of following the market demand, expanding the potential regional cooperation partner and build the new and fixed scientificreal estate network via the chaining development can form the scale effect.

Secondly, after all, scientific real estate is madeup of “hardware”and “software” jointly. It can be predicted that with the development of science and technology the hardware level of scientific real estate will be higherand higher in the future. The application of VR virtual technology, intelligent robot and network interconnection technology will be more in-depth. In thefuture park, the 3d printing can be used for doing the model and the intelligent robot can be used for cleaning, delivering meals and other basic services. Augmented reality can let people thousands of miles away have a “face-to- face” meeting...However, the “hardware” is always likely to be copied,especially with so developed communication and so smooth information nowadays no secret can be said by us. That is to say, the competition between enterprises is difficult to form a decisive barrier on the hardware. In this situation, only through the breakthrough of “software”, it is likely to havethe existence of “has been imitated, and has never been surpassed all the time”.As far as the scientific real estate is concerned, “soft” servicewill be the last assassin’s mace.

Resource Service

The function of traditional scientific real estate isrelatively single. It mainly provides the water and electricity, cleaning andother basic property services.With the development of The Times and the change of office working way, it’sjust not enough to satisfy the demand of people. And more value-added services“in place” should be provided.

Firstly is the resource service. Resource service requires the enterprises who manage the scientific real estate to have their own repositories. The repository is equivalent to a blood bank. It can provide the enterprises which need to enter the residence with the fresh blood timely. At present, the resource serviceof the scientific real estate provides original team, capital, site, the industrial and commercial registration consulting service and other prior services for an enterprise, and business model building, policy interpretation,legal, financial consulting, media information, management experience, listingguidance and other comprehensive resource latter-phase services, in addition,based on perfecting service resources each enterprise forms its own characteristics according to different situations. Among them, soho3Q laysparticular stress on the advantages of space and itsconnections. Microsoft isgood at the Internet technology. Tencent takes the leading position of platformadvantage. CYzone is outstanding in the mentors and media resources. Ti HoldingKechuang relies on Tsinghua industry to form thescientific research and talents advantages. The resource backgrounds ofdifferent enterprises will attract different types of entrepreneursand theteams to be able to solve the problems which they face more professionally andimprove the adaptation degree and utilization rate of the resources in theservice process.

However, these resources service is far from enough.In the future, resource services need to build a broader platform and channel,and the resources configuration needs to be subdivided and be humanized, and the obtaining and use of the resources need to be more convenient. In thefuture, the deep ploughing and the expansion for theresource services ofscientific real estate can be achieved mainly by three ways. The first way isto build the platform. Throughvarious activities the internal and external resources can be widely connected. In the internal space the barriers between regions andindustries should be broke down so as to let the information flow. In the external space the partners in various fields should be united positively so asto expand the channels of resources, and enhancethe overall strength ofresource services. The second way is to strengthen the judgment of different demands for different enterprises in residence and at the same time enhance the predictability. These demands are divided by category so as to let the resources configuration be more subdivided and be humanized. The third way isto let the enterprises in residence be able to obtain these resources more conveniently and make the rich resources and the successful operation mode be transplanted and grafted successfully in the light of local conditions throughthe construction of the internal network system. The fourth way is to learn tolook at the world in the current life with more and more obvious globalization trend. The future international exchanges and contacts will only increase and won’t decrease. Please follow the trend, grasp the international and domestic situation, and constantly introduce the high quality overseasresources.

Financial Service

Secondly is financial service. In recent years, withthe improvement of the national financial system and the activity of eachinvestment institution, the driving action of capital for the innovation highlights to a higher degree. The combination of science and technology and financial has become the dominant force for leading the development of modern industry. Building the financial services system is a punch in the fierce battle of scientific real estate and the market. As far as scientific realestate is concerned, the whole chain investment funds equipped from the earlystage angel to VC, PE should be the first to be affected. Under the situationthat at present“seed stage and early stage” medium small and micro-sized enterprises ofscience and technology still have difficulties in obtaining the venturecapital, it will form the attraction for the small and micro-sized enterpriseswhich urgently need to break through the bottleneck. What’s more, setting upthe industry funds which conform to the park ecology is very important too.Encouraging, guiding and supporting the development of enterprises in residence within the filed of park focus is conducive to form thr bright characteristics and the leading professional advantages.Setting up and introducing the guarantee company, and providing the guarantee for the financing of scientific and technological enterprises is of great significanceto further ease the problem for the difficulty of thefinancing of the medium small andmicro-sized enterprises of science and technology. At the same time, we alsos hould introduce the scientific and technological insurance, financial leasing and other financial instruments with positive attitude and create themulti-level scientific and technological financial service system with the full coverage of enterprises from the seed stage to the mature stage.

Humanized Detail Service

Thirdly is the humanized detail service. Only if thereally good service is "rooted from the demand and higher than the demand", it can win with surprise. With the upgrading of consumption,emotional consumption has become the new feature of market. Adorable pet marketing is a very classic case. There is a park feeding the rabbit on the grass. The rabbit is very cute. Feeding rabbits has actually no cost, but it virtually forms an emotional attraction for a lot of young people in the park,which has become the low-cost marketing means. For another sample of the sample youth community, it launches mobile canteen, sample sleep warehouse, sample gymnasium, sample meal ticket, sample matchmaker and other products andservices in succession, to help entrepreneurs solve the integration demand ofemployment, housing, entertainment and life. These humanized detail service areall the pointsto innovate in the process of the park operation.

Catering industry spreads a word that "hot potis divided into two kinds; one is the Haidilao and another is other hot-pots."The content of the eating is actually almost the same, the difference lies inthe service. They generously gift the customers favorite snacks, take care of the children for dining parents and gift the doll to the customer dining alone for accompanying….These details may seem simple, but let the Haidilaowin the customer and reputation, so as to be far ahead in the trillion marketof catering industry. The service of Haidilao has the systematic one and thestandardized one, such as providing the apron, setting the game, manicure andmassage, etc. Some are more personalized. You will find that every waitress isvery enthusiastic, but the feeling is not the same. They will independently and sincerely provide the corresponding services according to different customersrather than with a copy mode. This is the reasonwhy so many enterprises learn the Haidilao but fail; at the same time, it reflects the core of humanized detail service: humanized detail serviceis comprised by the "specified action" and "optionalitems" together. The specified action is often difficult to become barrier, but the optional items will become the real barrier. And this isprecisely the essence of so-called "pliable temperament".

Under the impact of the Internet, the business modelhas had huge change. We can see that Airbnb doesn’t have any real estate but has subverted the travel and accommodation industry; Didi doesnt has a taxi, but it has changed the way Chinese people travel; Facebook doesn't have a content producer, but it has becomeone of the world's best social community….The competition of scientific real estate is also quietly transferred fromthe "heavy" to "light", and it is becoming increasingly fierce in the field of operation and service. Although the current industryseems more like a "Red Sea", but human effort can achieve anything.In the era that the world enters into unprecedented innovation-intensive andindustrial revolution, simultaneous lightness and heaviness, diligence trainingskills and practically providing service are the right way of business. We must bear in mind that the ultimate success of scientific real estate depends on the success of the settled enterprises. Only serving the settled enterprises well by heart and marching towards success with them together are the value of scientific real estate.