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Why Ziroom's Business Model is so successful?

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Ziroom’s Company Overview


Ziroom is a leading Beijing-based property management company that specializes in providing rental services for apartments and shared accommodations. Established in 2011, Ziroom has grown to become one of the largest players in China's rental market, offering high-quality, technology-driven services to millions of tenants. The company operates in over 10 major cities across China, including Beijing, Shanghai, and Shenzhen, managing a vast portfolio of properties. Ziroom differentiates itself through its commitment to customer service, its innovative use of technology, and its dedication to providing clean, comfortable, and convenient living spaces. In terms of its business model, Ziroom operates on a unique platform that combines both online and offline elements. The company collaborates with property owners who wish to rent out their apartments, handling everything from property renovation and maintenance to tenant management. Ziroom's platform allows potential tenants to browse available properties, book viewings, and even sign rental contracts digitally. This comprehensive service not only provides property owners with a hassle-free way to generate income from their properties but also ensures tenants have a seamless and convenient rental experience. Ziroom's revenue model is primarily based on rental income. The company leases properties from owners for a certain period of time, renovates and furnishes them, and then subleases these properties to tenants at a higher price. This difference between the lease cost and the rental income is where Ziroom generates its profit. In addition to this, Ziroom also offers value-added services such as cleaning, maintenance, and moving services, which provide additional sources of revenue. The company also monetizes its platform through advertising, leveraging its large user base to attract advertisers from various industries.

https://www.ziroom.com/

Country: China

Foundations date: 2011

Type: Private

Sector: Consumer Services

Categories: Internet


Ziroom’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: simplifies, organizes, connects, reduces effort, quality, variety


Ziroom’s Related Competitors



Ziroom’s Business Operations


Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Best in class services:

When a firm brings a product to market, it must first create a compelling product and then field a workforce capable of manufacturing it at a competitive price. Neither task is simple to perform effectively; much managerial effort and scholarly study have been dedicated to these issues. Nevertheless, providing a service involves another aspect: managing clients, who are consumers of the service and may also contribute to its creation.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Shared rental:

In this model, businesses offer rental services while individuals rent items and pay appropriately. The procedure through which a current homeowner puts their home or an empty room available for short-term rental as an alternate type of housing. Peer-to-peer rental of property is a kind of peer-to-peer renting, which is a component of the sharing economy. The business strategy is almost identical to that of a conventional vacation rental. Through peer-to-peer property rental, participating homeowners may earn money by renting out their primary residence or an empty room they may have available.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Rent instead of buy:

Services that do not need the product to be purchased but rather rent it for the economic benefit of requiring less money to access the commodity. When you rent, you assume less obligation since most of the burden is placed on the owner's shoulders. There is no debt; you are just responsible for the monthly rent. When renting, you have more flexibility by signing a six-month or one-year lease. This implies that you will be confined to that location for at least that period. When your lease term expires, you have the option of switching to another product or renewing your lease.

Lease:

The item that's being sold is now available for rent on an hourly/daily/monthly/yearly basis. A lease is a contract that specifies the terms under which one can rent a property. It ensures the lessee, the tenant, access to an asset, and the lessor, the property owner or landlord, receives monthly payments from the lessee for a predetermined period of months or years. Both the lessee and the lessor risk penalties for breaching the contract's conditions.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

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