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Join hands with Yiju to launch Tmall's good house what kind of big move will Ali play in the real estate industry?
Sep 18,2020 15:03CST
Source:Financial Union
The content below was translated by Tencent automatically for reference.

SMM News: Ali is going to do a big job in the real estate field.

At the 2020 Real Estate Digitalization Summit held in Hangzhou on the afternoon of September 16, Tmall announced that he would set up a real estate department and launch the "Tmall good Housing" platform.

Tmall set up the real estate department, not to develop his own real estate. An important function of "Tmall good House" is to put the house on the shelf and sell it on the platform.

"We don't build houses. We know where our strengths lie. In the field of real estate, we will continue to give full play to our technical and digital advantages through collaboration. " Lu Weixing, general manager of Tmall good Housing, said at the summit.

Judging from the information currently released by Ali, "Tmall good Housing" gives himself quite ample time to adapt to and cultivate this huge market: no money will be made in the next three years, and all income will subsidize home buyers at 100%.

More than a month later, the first real estate "double 11 Shopping Festival" will be officially launched by Ali, SUNING, E-House and Leju four platforms.

Jiang Fan, president of Tmall Taobao, said at the summit on the same day that the purchase of real estate is a low-frequency behavior, and the house is closely related to everyone's life, but Ali has not extensively penetrated into the real estate field before. "the digitization of the real estate industry in the future will be a trend, which implies a lot of opportunities." Jiang Fan said.

At present, Ali has not disclosed its clearer strategy in the real estate field. Some analysts believe that selling houses is only one of the incisions for Ali to set foot in the deep water area of real estate. Sinking deep into the real estate transaction link, and in the development, investment and financing, asset management and other real estate-related industrial chains to further explore, looking for business opportunities that match the genes and advantages of Ali enterprises, and choose the opportunity to become bigger and stronger, cultivate and brew a business with sustained growth momentum, may be a bigger chess game laid by Ali.

In fact, Tmall's establishment of the real estate department is not the first time Ali has entered real estate.

Judicial online auction is a business launched by Ali auction platform a long time ago. Ali judicial auction system was launched in 2012, since then Ali assisted local judicial departments to launch the legal auction house, and made good achievements. Some legal auction house cases have also attracted a lot of attention in the market, but with the huge volume of new house transactions, and the growing stock housing transaction market, the legal auction room only accounts for a small proportion of the whole market.

Another Internet giant, Tencent, has indirectly cut into stock housing transactions, an area with huge imaginative space and strong growth, by investing in shells.

How the Internet giant sank to the offline entity, Ali needs a grasp, Ali chose to cooperate with Yiju China. While Tmall announced the establishment of the real estate department on September 16, Alibaba Group also jointly launched a real estate transaction cooperation mechanism (ETC) with E-House China.

Zhou Xin, chairman of the board of directors of ETC, E-House (China) Holdings Co., Ltd., described it as a real estate transaction and a cooperative highway.

"We will work with Ali to build a set of real estate transaction entities to participate in, efficient cooperation, based on digital, intelligent product empowerment, supported by block chain technology." Zhou Xin said.

Ding Zuyu, CEO of E-House China, further explained that the mechanism will be based on the principles of openness, cooperation and fairness, and will be supported by cloud computing, artificial intelligence, blockchain and other technologies. Its application, not only has the special price house, the auction house, but also will be able to implement in the new house, the second-hand house these four big transaction scenes.

"technological innovation and the digitization of commercial links will bring new dividends to the real estate industry. The future real estate consumption online will be an important scene, while the offline scene will also become more intelligent. " Jiang Fan said at the summit.

Jiang Fan did not further elaborate on the "new dividend", but an executive attending the summit gave a preliminary introduction to the vision.

"in addition to enabling the housing / customer source and real estate transaction mechanism, the future cooperation between the two sides is expected to carry out financial empowerment. Including in real estate transactions, try ant financial special service channel, through the corresponding cooperation to achieve financial, payment functions. " The executive said at the summit.

In addition to the platform of easy residence China in the field of new and second-hand housing transactions, Ali is expected to expand from residential to commercial, logistics, building materials, property management, cultural and tourism, capital management and other pan-real estate areas. If Ali can be in the pan-real estate in different areas of in-depth layout, its volume growth in the real estate field, will be considerable.

It is worth noting that shortly before Tmall set up the real estate department and launched a cooperation mechanism with E-residence China, Ali increased its holdings in E-residence China. E-house china disclosed on July 31 that the company would place shares to Ali, which would hold about 8.32% of its shares after the placement was completed. If all these convertible notes are converted, the proportion of shares held by Ali will be increased to 13.26%, making it the second largest shareholder in E-House China.

As early as 2018 when E-residence China listed in Hong Kong, Ali subscribed for new shares of E-House China and became one of the cornerstone investors of E-House China.

Perhaps partly in order to show how much traffic they can bring and the future potential of the cooperation mechanism, on the day of the summit, real estate bigwigs such as Yu Liang, chairman of Vanke Group, Li Silian, chairman of R & F Group, Zhang Yadong, chairman of Greentown China, and more than 70 senior executives at or above the president level of real estate enterprises attended the summit.

Li Silian said at the summit that R & F invested in the first "10 billion subsidy" double 11 housing festival activities in properties with a value of about 50 billion yuan across the country.

And Tmall real estate double 11 sales this year, Ali in the real estate field will also carry out what layout, the reporter will continue to follow up the report.

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