Chapter 14 Transforming the Funeral Industry with Internet Thinking

"This must be done secretly, and when the raw rice is cooked, I will tell my sister. Even if she kills me then, she won't be able to change the fait accompli, hehe. ”

"Your relationship with your sister is quite interesting."

"What's the point, she kicked me last night, and my ass still hurts!" Fu Hao exaggeratedly said: "You don't know her, if you understand her, you will know how terrifying she is!" Don't be fooled by her beauty, she's a devil! ”

After taking a sip of roasted barley tea, Fu Hao took a moment to say: "Alas, let's not talk about her first, you should help me first calculate how to buy this cemetery." As far as I know, the contract signed by Song Danqing and the Shuiquan Village Committee in 03 is 50 years, covering 800 acres of mountain, and the contract price is 500,000 yuan per year. Later, Song Danqing paid millions out of his own pocket to transform this barren mountain into what it is now. The price at which he sells the cemetery is about 6,000 yuan for a 1-square-meter tomb, and 10,000 or 20,000 yuan for a better location. The ravine we went to just now is the first phase of the cemetery, and more than 4,000 cemeteries have been sold. I saw in the introduction of the new development of the cemetery that the second, third, and fourth phases of the cemetery have already begun to be built, and in about five years, this cemetery will be able to accommodate 30,000 cemeteries. You are engaged in finance, you should have been in contact with some industry acquisition cases, how much do you think I can pay to buy a cemetery of this scale? ”

Qiu Ting first didn't expect Fu Hao to know in such detail, such as Song Danqing's contract, which should be a very confidential document, especially for this kind of illegal project, the original contract must not be exposed, she can't understand how Fu Hao learned about these trade secrets.

Secondly, she didn't expect the scale of this cemetery to be so large! There are 800 acres! To develop 30,000 mausoleums! That's not a small amount.

Not counting inflation, just by selling the cemetery, Song Danqing will be able to net hundreds of millions in the next few years! Of course, there are still some garden maintenance costs and gray expenses that must be paid, but even if these are thrown, Song Danqing can still earn hundreds of millions of income!

Such a fertile project, Fu Hao wants to buy it, with Fu Hao's financial resources, the pressure will be great.

After thinking for a moment, Qiu Ting told Fu Hao: "I can't give you an estimate right now. I don't think this can be solved with money. As you just said, Song Danqing is the pioneer of the Beiliang tree burial method, and as far as I know about some industry pioneers, they will not give up their original intentions lightly. If Song Danqing is not a person who is short of money, then no matter how much money you pay, he will not sell his career. He may have embraced tree burial as a way of practicing his life. I've known some avant-garde artists, and I think they don't behave in a normal way. This Song Danqing may be such a stranger. ”

"No, this Song Danqing is still quite vulgar, he does a tree burial cemetery, a big purpose is to make money. Maybe at the beginning, he wanted to accumulate yin virtue and did it with the heart of doing public welfare. But later on, after finding out that doing this is very profitable, he may only have money in his eyes. Otherwise, he wouldn't have made such an illegal cemetery. Fu Hao's judgment is based on the critical revelations of Song Danqing by the public media ten years later.

In his own judgment, Song Danqing is also such a so-called artist who makes money for nothing in the name of serving the deceased.

Ten years later, Song Danqing made a lot of money from the cemetery, but the relevant departments wanted to ban the illegal cemetery and named the cemetery to crack down on him, he was still unwilling to give up this cemetery, and even gambled his reputation, nor was he willing to let go of this cornucopia, which was enough to see that he was a money-loving person.

"Do you know him?" Qiu Ting didn't know about these situations, so she asked Fu Hao.

"I don't know him, but I've investigated some of his background, and I can probably tell that he is a wealthy artist, and I don't really want to build a cemetery with such a person. If I buy Shun Lì, I hope to spend a sum of money to buy this cemetery completely from him. ”

"It's not an easy task. Looking at the scale of this cemetery, even if you can really buy it from Song Danqing, it will cost a lot of money. And after the conversion to a cemetery, your expenses will be greater, you need to do a lot of renovation that meets the standards of the cemetery, and the annual maintenance investment will not be less in the future. Have you considered all of this? I'm not afraid to say things that offend you, if you buy this cemetery, if you don't manage it well, it won't take a few years, and you may use up all your bonuses. What you're buying now isn't a cemetery, you're buying a big burden, do you know what I mean? ”

"I know, I have considered all of this, so I want to ask you to help me make a reliable business plan."

"This kind of funeral industry plan, with my experience and ability, I can't do it for you. If you really want to do it, I can recommend you some powerful public relations agencies, who will help you plan to complete the acquisition and provide you with some constructive advice on the management of the cemetery. A financial advisor like me doesn't have such a diamond. ”

"Okay, then you can help me recommend some public relations companies with experience in the O2O industry, I want to use Internet thinking to transform the funeral industry in the future, and take care of the cemetery with the O2O model."

“O2O?”

Qiu Ting was stunned, she thought to herself, if there was a mistake! Isn't this little whitehead crazy? He doesn't seem to understand the tragic performance of O2O in the current domestic market!

O2O - that is, Online-to-Offline (Online-to-Offline/Online-to-Offline), refers to the combination of offline business opportunities with the Internet, so that the Internet can become the front desk of offline transactions. The concept originated in the United States.

Its core is to bring online consumers to the real store, that is, to allow users to pay online to buy offline goods and services, and then enjoy services offline.

Since 2013, O2O has entered a stage of rapid development in China, and the integration of localization and mobile devices has led to the emergence of the O2O business model.

For example, carpooling applications, group purchase applications, movie ticket applications, and travel applications commonly used in everyone's mobile phones are all regarded as the development of the O2O model.

When Qiu Ting was a student at New York Business School, she was exposed to many classic cases of O2O.

She still knows a lot about it.

In this model, in the domestic environment of big waves and sands, there are few successful cases, but a lot of dead projects are grabbed.

Especially in the past two years, almost 80% of O2O projects have been stillborn.

Fu Hao now wants to use the O2O model to transform the funeral industry, which is simply a fantasy!

There have been companies that have had experiences in this direction before, but all of them have failed.

If Fu Hao burns money in this closed industry, it will not be enough!

Trying to restrain her feelings, Qiu Ting asked Fu Hao: "Do you understand what what you say now?" Do you really want to use the thinking of the Internet to transform the funeral industry? ”

"I know it's expensive, but I'd like to try it anyway." Fu Hao asked Qiu Ting rhetorically: "Listen to what you mean, Qiu Meinu, you seem to know a lot about the O2O model?" ”

"I took this course when I was in business school, and after I worked, I was exposed to angel investment in this area. As far as I've learned of O2O, this model doesn't look as rosy as it seems. Especially in China, the O2O industry is full of mud and sand, and nearly 90% of the cases are dead, and the remaining 10% are also gasping for money burning. You want to use the O2O model to transform the funeral industry, it sounds ...... It seems to be very inadequate. ”

"Whether you stick it or not, you can't just think about it, you have to look at research and look at numbers." Fu Hao confidently asked Qiu Ting: "If you want to understand the O2O model, then you should know what issues are usually considered when choosing to change an industry with O2O." ”

Qiu Ting thought for a while and said: "When choosing O2O, there are usually three issues to consider: first, the size of the industry and whether the growth is considerable; Second, whether the offline part of the industry is scattered enough and whether the information asymmetry is deep enough; Third, whether a certain part of the industry, including consumers or businesses, can provide sufficient value in an economically feasible way to leverage their Internetization. ”

"If you have this kind of thinking, then you apply these three standards to the funeral industry, and you will find that some conditions are almost perfect!"

Fu Hao excitedly chatted with Qiu Ting: "First of all, the volume and growth of the funeral industry are very huge. According to the calculation of the Ministry of Civil Affairs, the number of people who die in China every year is nearly 10 million, and the per capita funeral cost is estimated to be 3,000 yuan, and the domestic market for funeral services alone is 30 billion. Counting cemeteries and ashes storage, as well as the part that cannot be included in the statistics, the entire market potential is estimated to be more than 100 billion. If the existing funeral industry chain is extended to cover legal services, hospice care, catering and other associated consumption, the market volume will be more impressive! At present, China's elderly population has exceeded 200 million, the aging rate is nearly 15%, and the growth trend is accelerating.

"Second, the service process of the funeral industry is extremely cumbersome, and the suppliers are characterized by small, scattered and chaotic. From the disposal of remains, the handling of legal procedures, the planning and execution of funerals, the procurement of funeral supplies and facilities, to the purchase of cemeteries and final burials, more than a dozen projects are involved before and after, and N suppliers need to be docked. The most terrible thing is that the entire service chain is extremely opaque, and there are too many intermediate links, such as at least two hands after the shroud leaves the factory, the service quality lacks standards, the price is inflated, and the price increase of funeral supplies is more than ten times the norm, and the consumer experience is usually very bad. These are things that can be changed by the Internet.

"It is precisely because of the bad experience of the traditional funeral industry that the Internet has been given room to intervene. For users, the Internet can provide more transparency and consumer freedom, through the integration of supplier resources, and can also provide a one-stop solution. For merchants, the Internet can optimize the industrial chain, improve their cost structure, and help high-quality merchants gain a larger market. In my personal opinion, these two points are more realistic pain points for users, and they are also the most powerful levers for network tools to leverage the traditional funeral industry. It is absolutely feasible to use O2O to transform the funeral industry. ”