Turbutu 5 times IPO, is there any opportunity for Internet home improvement?

Source | Bohufn

Author | Dongli

In 2015, an advertisement of "Decoration on Turbutu" starring Wang Han quietly occupied all corners of the bus, subway, and elevator rooms. Basic brainwashing and ubiquitous publicity made Tuba Rabbit quickly enter the public's vision and become the public's vision and become a public vision and become a public vision. Comparable to the existence of the conditional reflex of Qingyang removed dandruff and relieving sterilization.

Behind the crazy marketing of Tuba Rabbit is the financial support of capital. That year, Tuba Rabbit obtained a round C financing of 200 million US dollars of round C, which was jointly invested by Sequoia, Jingwei, and 58 City. Internet home clothing head brand.

However, Wang Guobin, the founder of such a unicorn company, was only 33 years old. At that time, he might have thought that after three years, he would lead the grand willingness of Turbutu's "first share of Internet home improvement" to impact the listing, but it is difficult to predict that listing will end in failure. And what is more dramatic is that such a failure has repeated 5 times in a row.

The third entrepreneur of Wang Guobin, "Big Gerandous Gears"

Wang Guobin was born in Fuzhou, Jiangxi in 1982. Rural families. At the age of 18, he opened his first computer training school in his hometown and earned the first bucket of gold in life. Wang Guobin, who had tasted the sweetness, began to develop diversified, and operated a hotel, decoration company, computer sales company, and advertising company. At the age of 23, he earned 10 million, which became a well -known "successful person".

At that time, Baidu successfully logged in to Nasdaq with a market value of nearly 4 billion US dollars. Wang Guobin, who was uneasy, was eager to try and began to enter the market to search the market. But because he did not understand the capital market, Wang Guobin lost all the money he earned before, and had to leave the field. But it didn't take long for Wang Guobin to make a comeback.

In July 2008, Wang Guobin returned to Nanchang, Jiangxi to register a online decoration company -Tuba Rabbit.

(Picture source network)

Home improvement has always been a large market, but the industry concentration is low and lacks head companies. With the improvement of people's living standards, consumers have put forward higher demand for home decoration design and quality. The supply and demand of the traditional home improvement industry are scattered, and the industry's configuration efficiency is low. In addition, the decoration "guerrillas" are popular, the market is mixed, and the entire decoration process has involved professional knowledge such as design, building materials, and construction steps. It is difficult for layman consumers to distinguish. In addition, the decoration cycle is long, which is 3 months short, and the time can be 1 year. The friction and pain caused by information asymmetry are infinitely magnified with the passage of time.

It can be said that the development history of a decoration is mixed with the history of blood and tears of countless consumers. With the popularity of the Internet, these "victims" stepped on the pits found the exit of venting and vomited bitter water in Baidu Tieba. Inspiration of entrepreneurship.

After the establishment of Tuba Rabbit, it quickly grew into an online decoration platform. From the initial convergence of the designer to sell decoration drawings, to gather the decoration company and the client ends, to match the needs of home improvement more efficiently, and in 2012 Payment "guarantee services, qualified payment, and the platform can help acceptance. According to its official website, Tuba Rabbit has reached more than 1.3 million designers and more than 110,000 decoration companies, covering more than 300 cities in China, with a cumulative demand for owners of more than 41 million.

At the same time that Tuba Rabbit has grown, the size of the domestic Internet home improvement market has also continued to grow. According to the "Blue Book of China's Internet Home Instyle Industry", from 2016 to 2020, the total size of the domestic home improvement market increased from 2 trillion yuan to 2.6 trillion yuan, with an average annual compound growth rate of 6.5%. It is expected to increase from 2020 to 2025 to 2025 The speed will be increased to 9%.

The industry has a good prospect, the market is prosperous, and the size of the enterprise has expanded. It is time to seek listing. So in August 2018, in August 2018 in round C, Tuba Rabbit began to sprint the IPO.

First of all, the Hong Kong stocks. It is reported that it is not clear due to the large gap in its funds, the profit model is unclear, and there are 650 million yuan depository funds involved in unlicensed operation and payment business; then the A -share GEM in 2021 is not smooth. The application information expired and was pressed for a suspension key. Until July 18 this year, Tuba Rabbit took the initiative to withdraw the listing application, and officially announced that its 4 -year listing road came to an end. The biggest competitors of Turbutu Qi Jiawang have successfully listed on the Hong Kong Stock Exchange in 2018, and hit one blow.

In this regard, Wang Guochun, the co -founder of Tuba Rabbit, responded on Weibo that the success of the enterprise is based on whether it can continue to create value for users. IPO is only a link in the development of the enterprise. In the future, it will wait for the right time to restart the listing plan.

But is there still a chance for Tuba Rabbit?

Tuta Rabbit difficult to solve the pain point of the home improvement industry

From the perspective of Bohu Finance, the birth of the Internet+has the mission of empowering or subverting the traditional industry in order to resolve the accumulation of the industry and solve the pain points of consumers. But after so many years, there may be companies that have completed this mission, but not many. Tuba Rabbit failed to fulfill the promise of "renovation", but added a lot of blockage to consumers.

As of press time, there were 206 complaints on the complaints on Black Cat complaints, and 194 have been completed. Among them, complaints about the decoration company with poor strict customsization and poor recommendations for consumers to consumers have been completed. According to the data of Tianyan, Tuba Rabbit involved more than 500 judicial cases, of which more than 26%of the judicial cases were decoration and decoration contract disputes. (Screenshot of Black Cat Complaint)

The reason is related to the negligence of the Tuba Rabbit platform and is not strict with the review. According to China Network Finance, Tuba Rabbit only reviews the business license and office locations on the platform, and some do not even have decoration qualifications. The quality of decoration and the reputation of merchants are difficult to guarantee. For the home improvement industry, the supervision of the Internet home improvement platform is not strictly not only in the filtration effect, but has caused more new problems.

Zhang Ren, the Residential Decoration Committee of the China Architectural Decoration Association, pointed out that the decoration industry itself has the problem of lack of strong supervision. The rise of the Internet platform allows companies to pay more attention to online operations, ignore the industry chain coverage of the industry itself, and use more layers to adopt layers. The layer subcontracting system, which leads to the inadequate price space, insufficient quality control, and unclear responsibility, resulting in the increase in various types of leather and complaints after decoration.

In addition to losing the reputation of consumers, Tuba Rabbit has no money.

As mentioned earlier, Tuba Rabbit has received $ 200 million in financing in 2015 and has invested money into advertising marketing, and has signed a number of stars such as Wang Han, Lei Jiayin, and Da Dawei. Since 2015, Tuba Rabbit's annual advertising has reached tens of millions of yuan, plus 15.6 million investment invested in the first half of 2018, and a total of 200 million yuan advertising fee has been burned, and the expected US $ 200 million financing in 2015 finally finally It also received 200 million yuan.

Followed by three consecutive years of losses. According to the prospectus, the losses from 2015 to 2017 were 750 million yuan, 560 million, and 1.11 billion yuan, respectively. As of the first half of 2018, the Tuba Rabbit's period lost 630 million, with a cumulative loss of more than 3 billion. Even if Tuba Rabbit has achieved a profit for three years, the cumulative net profit is less than 300 million yuan, which is difficult to fill the losses left over from history.

From the perspective of income sources, in 2021, the income of Tuba Rabbit online platform accounts for 99.88%, including smart orders matching services, value -added services, financial promotion services and advertising services. Among them, the intelligent order matching service is the information intermediary service. It is its core revenue source. In 2021, business revenue was 445 million yuan, accounting for 68.02%of the total revenue.

(Figure source Tuba Rabbit Prospectus)

However, information intermediary services are essentially a business that sells traffic. With the continuous increase of traffic procurement costs, the passenger fee of Tuba Rabbit has reached 240 million yuan in 2021, accounting for 36.66%of the current income. Over 30 % of the income is used to purchase traffic, which seriously squeeze the profit space. Is such a business model sustainable and doubtful.

What is even more impressive is that the Tuba rabbit, who once recruited a number of talents in Qingbei, seems to be a family business. Before Tuba Rabbit's first seeking Hong Kong stocks, nearly 20 senior executives including the Vice President of Finance, Vice President of Marketing, General Manager of the Internet Division, and General Manager of the Platform Division resigned successively. And Wang Guobin appointed a number of relatives and friends on the company's important positions, such as the director Wang Guochun as his brother and executive Xie Shuying for his spouse. When a large number of executives left the market, it means self -evident.

From this point of view, Tuba Rabbit has not been ready to become a quasi -listed company in terms of strength and psychology.

Can Internet home improvement support the second IPO?

On July 12, 2018, Qi Yi Technology, the parent company of Qijia.com, officially knocked on the bell on the Hong Kong Stock Exchange. One month later, Tuba Rabbit also submitted a listing application to the Hong Kong Stock Exchange. However, Qi Jiawang, as the "first stock of Internet home improvement", does not seem to be favored by the secondary market.

In fact, during the public offering of Hong Kong, the market only subscribed to 3.3505 million shares, which was far lower than the 24.2 million shares on sale. The subscription enthusiasm was obviously insufficient. Now that more than three years have passed, the market value of Qijia.com is only HK $ 542 million, shrinking by 90%of the peak period.

When capital is optimistic, major institutions have "smashed money" to enter the market. According to incomplete statistics, there are 22 domestic Internet home improvement industry in the first half of 2015 alone. However, after the ventilation, the construction quality and service quality of the Internet home improvement began to be questioned. In 2018, the National Consumers Association organized a total of 10,474 complaints of house decoration. The number of complaints doubled year -on -year. Apple decorations have also experienced business problems. In the first half of 2018 alone, more than 100 home improvement companies in the country have closed.

In addition, since the outbreak, economic instability has increased, and consumers have become more rational. Coupled with the continuous tightening of the property market regulation policy in recent years, the number of new housing and second -hand housing trading volume in the country. At the same time, the introduction of the full decoration policy of commercial housing has further reduced the supply of rough housing on the market, the growth of the home improvement market has fallen into a bottleneck, and the decoration enterprises have been further under pressure.

(Picture source network)

But home improvement is still a large market. The Foresight Industry Research Institute predicts that the market size of the home improvement industry will reach 3.2 trillion by 2023. And "where to make money, there is BAT", Baidu, Ali, JD, byte beating, shells and other Internet manufacturers have heard the wind, and they have been launched one after another, and they have launched Jingdong's "home channel", shell "quilt home", Baidu "pretend to pretend to be outfit The Internet home improvement platforms such as Xinjia "and Ali" Lie House ". The entry of Internet giants has undoubtedly caused greater development pressure on the "native" platforms such as Tuba Rabbit. The domestic Internet home improvement industry may usher in a new round of large shuffle under the stir of the giant.

At the end

In the past few years, the Internet+model has been sought after, but in fact many business models are just "changing soups without changing medicine". The thunderstorms of YY learning cars and eggshell apartments have been confirmed. The platform only takes care of integration and marketing without understanding the industry, and it is difficult to go long -term.

Tuba Rabbit failed to change the inherent disadvantages of the home improvement industry, and the platform settled in merchants failed to upgrade their own decoration quality. Only by focusing on creating core competitiveness, effectively solving consumer pain points, and creating value can the Internet+truly empower traditional industries, and can we live in the environment of changing the international situation and stable economic situation.

Reference source:

China Business Daily: Tuta Rabbit "Battle" IPO Internet home improvement encountered a dilemma of growth

China -Views Network Finance: High hair profit and low profits, spending 660 million to buy traffic in 3 years, can the profit model of Tuba Rabbit last longer?

Dongfang.com: Tuba Rabbit: The digital "tide of tide" in the home improvement industry is directly hitting the pain point of the traditional home improvement industry.

Leju.com: Tuba Rabbit IPO Kandu

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