Qijia.com's long-term philosophy: SaaS services carry the banner of growth

In recent years, with the comprehensive advancement of domestic digital transformation, the digital wave has rapidly swept through all walks of life in the country, and the home improvement industry has also begun to move from “Internet home improvement” in the consumer Internet era to “home decoration digitalization” in the industrial Internet era. In this context, SaaS services that help the digital transformation of the home improvement industry have also emerged, and Qijia.com was one of the earliest testers to implement SaaS strategies in the Internet home improvement field.

As the first online home improvement platform in China that adheres to the power of digital technology, Qijia.com has not only taken the lead in the home improvement industry with the advantage of comprehensively promoting the digital transformation of the platform, but also ushered in its second spring of performance through continuous focus on SaaS strategies.

Another outstanding report card

Recently, Qijia.com, a one-stop home improvement service platform, officially announced the financial report for the first half of 2021. According to financial data, in the first half of 2021, Qijia.com's revenue was 524 million yuan, up 66.5% year on year; net profit was 20.54 million yuan, up 286.3% year on year. Judging from this data, Qijia.com's performance in terms of revenue and profit is outstanding.

Specifically, Qijia.com's SaaS and extended service business revenue in the first half of 2021 was 309 million yuan, up 37.9% year on year; gross profit increased 36.2% year over year to 271 million yuan; interior design, construction and other service revenue was 215 million yuan, up 175.8% year on year; gross profit increased 160% year on year to 25.77 million yuan. As can be seen from the data, Qijia.com's two core businesses have grown significantly, and due to the large share of revenue and gross profit from SaaS and extended services, they have become “important engines” for Qijia Online's outstanding performance in half a year.

Qijia.com's revenue and profit can achieve impressive results. On the one hand, it has a lot to do with the number of active paying merchants and the increase in ARPPU. According to the data, up to now, the number of active paying merchants on Qijia.com has reached 5,667, an increase of 33.8% over the previous year; at the same time, its ARPPU has increased to 55,000 yuan. The growth of these two core data directly drives the growth of its platform's payment business.

On the other hand, thanks to improvements in operational efficiency, its share of operating expenses continues to decline. According to the data, the share of Qijia.com's sales and marketing expenses in the first half of 2021 fell from 57.1% in the same period last year to 44.2%. Obviously, the continued decline in fixed costs has also had a positive impact on the increase in Qijia.com's profits.

SaaS services carry the banner of growth

It is easy to see from the above data that SaaS services play an extremely important role in Qijia.com's revenue structure, and focusing on the SaaS strategy has also become an important factor driving the steady growth of Qijia.com's performance.

First, the full-industry chain service launched by Qijia.com helps it increase user retention. Home improvement itself takes time and is highly professional. As the main consumer group of home improvement, the post-90s are demanding that home decoration be efficient and convenient. Meanwhile, the full-process decoration service provided by Qijia.com helps users save time, effort, and money, and has gradually become the preferred platform for many consumers to decorate.

In addition, the high transparency and high quality of Qijia.com's one-stop packaging service has also won the trust of more users. Qijia.com has opened up the upstream and downstream of the home improvement industry chain through SaaS services, not only making it deeply involved in every step, but also making the decoration process extremely transparent. This has undoubtedly increased consumer trust and reputation, thereby enhancing the user experience, thus increasing the number of active users day by day.

Second, the ability to reduce costs and increase efficiency has also made Qijia.com more popular among decoration companies. Through big data analysis, CRM and SaaS services, Qijia.com enables decoration companies to obtain accurate sales leads, while also tracking and managing the entire process of decoration companies from customer acquisition, signing, design, construction, to delivery, increasing the conversion rate of every step and greatly reducing their customer acquisition costs. Financial reports show that in the first half of 2021, Qijia.com added 1,082 new active paying merchants, and the merchant retention rate reached 93%.

The “B+C” two-wheel drive has brought considerable benefits to Qijiawang. Financial reports show that as of June 30, 2021, Qijia.com had 384,000 sales leads, an increase of 16.4% over the previous year; the average sales price of each sales lead was 691 yuan, an increase of 19.2% over the previous year, reaching the highest value in history.

Continuously empower the industrial chain

As the core driving force of Qijia.com, the contribution of SaaS services to its performance is unquestionable. However, Qijia.com's ability to stand out from many Internet home improvement platforms is also inseparable from the continuous empowerment of its SaaS service to the industrial chain.

On the one hand, SaaS services solve the problem of the low level of digitalization in the home improvement industry. Although there are many players on the Internet home improvement circuit today, most platforms still play the role of “intermediaries”. They only earn price differences and traffic revenue through simple docking and matching, and have not actually implemented Internet home improvement into the home improvement itself. Therefore, the home improvement industry is generally underdigitized, and the problem of low internal efficiency has not been effectively solved.

Unlike other platforms, Qijia.com provides digital collection for assembly companies through self-built home improvement supply chain systems, and helps construction companies strengthen internal management through modules such as order management, construction site management, customer service management, employee management, and financial management loaded into SaaS products. Judging from the results, Qijia.com's comprehensive digital solutions have indeed improved the operating efficiency of the construction company and accelerated its digital transformation.

On the other hand, SaaS services have improved the pain points of construction management in the home improvement industry. The supply chain in the home improvement industry is scattered and lengthy. Although Internet home improvement has broken the shortcomings of traditional home improvement consumption and uncontrollable construction periods, it has not fully solved problems such as high material costs and poor consumer experience, and has not really created value for users.

Meanwhile, Qijia.com has standardized home improvement services to a certain extent through SaaS. By grasping the pain points and needs of both supply and demand in the home improvement industry, Qijia.com uses SaaS platforms to digitally empower decoration companies, making the home improvement service process more transparent and controllable. And it is this kind of standardized and intelligent service that has solved the “persistent industry problems” of the home improvement industry, such as opaque information, difficult supervision, and low service efficiency.

Embrace the 100 billion digital blue ocean

Under the current wave of digitalization of decoration companies, the prospects for home improvement SaaS services are huge. According to iResearch's “2020 China Enterprise SaaS Industry Development Report”, the size of China's enterprise-level SaaS market is expected to exceed 100 billion yuan by 2022. Thanks to the many benefits brought by SaaS services, Qijia.com will also have more room for development in the future.

First, the prospects for the digitalization of home improvement are very broad, and there is still a lot of room for growth. According to 36 Krypton reports, the market size of China's clothing industry has now reached 3.54 trillion yuan, with a compound annual growth rate of 11.1%. It is expected to reach 6 trillion yuan by 2025. However, the digital penetration rate of the entire industry is still relatively low, and there is still a lot of room for improvement in the development of the industry.

Second, giants are scrambling to expand the home improvement industry, and the value of home improvement digitalization will be further exploited. The huge potential of the home improvement industry has also attracted Internet giants such as Ali, JD, and ByteDance to share the pie across borders. However, as the shortcomings of the Internet home improvement model itself gradually became apparent, more and more decoration companies began to implement in-depth digital transformation. And the addition of giants will undoubtedly put the entire home improvement industry's digitization process on the fast track.

Finally, with its first-mover advantage in SaaS services, the long-term value of Qijia.com will be further highlighted. Compared to other Internet home improvement platforms, Qijia.com is quite forward-looking in digital construction, and it is based on its many years of deep cultivation in the home improvement industry. Now, Qijia.com has basically opened up the upstream and downstream of the industrial chain, making it currently the platform with the highest coverage rate for domestic digital transformation and decoration companies.

In the future, with the deepening digitalization of the home improvement industry and the further improvement and iteration of the SaaS service system, Qijia.com, which already has a first-mover advantage, will further demonstrate its long-term value.

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