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    Life And Death? Choice Of Crossroads

    2020/4/25 13:28:00 94

    Life And DeathChoice

    In February of this year, OYO announced its 2019 fiscal year results. The company's total global revenue was $951 million, and China's market revenue was $307 million, or less than 1/3. Net profit deficit expanded by 6 times, from $52 million in the previous year to $335 million, while China's market lost 197 million US dollars, accounting for more than 58%.

    Now, under the influence of the epidemic, China's market with huge losses is testing the financial strength of OYO owners.

    OYO Tang Xueming, a Chinese employee, admitted that OYO might not be able to carry it. After all, Softbank, a major shareholder, is now full of holes and the financial situation is not very optimistic. Chen Nailiang swore that the losses in the Chinese region were mainly internally created. In addition to the many questions mentioned above, the hidden problems of the internal organization and management structure were also major problems in the development of OYO China.

    Chen Nailiang, a former executive, told reporters that although there are a lot of executives in China, two of them are co founders in China, but OYO does not set up CEO role in China. The power is still in Indian hands. Li Tai hee does not trust the Chinese team at all. All the important strategic decisions are formulated by the India side, and the Chinese management team is going to enforce them. Therefore, a bunch of Chinese executives take charge of each other and fight against each other. Each mode upgrade is a shuffle. "If China cannot decide its strategic direction, OYO will never be able to develop in China." Chen Nailiang road.

    Such an internal "gene" must be projected outward to franchisees.

    In Chen Nailiang's view, the development of OYO driven by capital is full of wolves. In the increasingly fierce competition in the housing market, the fate of a single hotel will be even more volatile. Even if bullied by the big capital side, the mode will become more and more cruel, and the hotel will not resist the capital.

    In January 2020, OYO launched the 3 mode of "win win treasure". Compared with the 2 mode, the total cost of the win win Bao Lian has not been reduced, but it can shorten the payment cycle, and make the weekly payment more transparent. OYO hopes to turn the existing hotel customers into 3 models by March 1st this year.

    At present, it is not known how many partners are willing to continue to follow up the upgrading of OYO mode. As of press release, OYO has not yet answered many questions raised by reporters.

    Yang Honghao thinks light chain mode is a new main force to speed up market concentration. Their main battlefields are the stock market in the sinking market. This is a huge market. The hardware base of these hotels and accommodation facilities is relatively weak, and the management level and service level are not high. The owners have a high expectation of joining the light chain brand. Light chain brands can empower some tools such as technology empowerment, management empowerment, human resources empowerment and so on. In order to improve the quality of development. Yang Honghao warns that if some enterprises attach importance to "siege" instead of focusing on "guarding the soil", they can not bring fundamental changes to the franchising hotels, and can not let the owners really have "sense of gain" or even "get a sense of harvest". They will find that the occupied market can not be maintained, and the industry will be puzzled by the logic and development prospects of the whole light chain mode. 。

    Yang Honghao said that OYO hopes to use technology to help single hotels improve their management and service levels. For example, the prospect of a person can manage several hotels is worth looking forward to, but this is only an ideal mode. "I approve of this model." Yang Honghao said that it is a good mode to integrate a large number of monomer hotels by means of technology, improve their efficiency and reduce the cost of operation management, but it has not been used well. He cautioned that the next stage of OYO and other enterprises should pay attention to improving internal strength, steady and steady, and provide the owners with the value of declared and promised, and grow together.

    Chen Nailiang told reporters that during last year's national day, the OYO hotel was once offline by Ctrip, because the user experience was too bad and the complaints were very high. Many hotel owners were also angry that they were not fined by OYO after being fined by the software and hardware to improve their service level. Later, OYO rushed to the Ctrip public relations before resuming the on-line operation.

    It is worth mentioning that in May last year, OYO just paid a huge channel fee of 600 million yuan to maintain its affiliate hotel in the US group and Ctrip exposure. Prior to that, the OYO hotel was jointly blocked by two OTA. Chen Nailiang is not optimistic about the future cooperation between OYO and these major channels, and believes that the possibility of being banned again in the future is very high.

    Chen Nailiang told reporters that on the one hand, the future development of OYO will become more and more platform. In fact, it will pose a threat to the Ctrip and the US group, which are the same platform companies. In particular, after the US group and Ctrip invest in the development of similar light join mode enterprises, this kind of pressure on competitors is stronger. On the other hand, OYO's hotels in China only emphasize low price, bad customer service, high complaint rate, and less than 70% customer service telephone connection rate of OYO. Even if customer service records the complaint, most of them may not be able to solve it. Therefore, a large number of complaints are sent back to WeChat from Alipay and other channels. The US group and Ctrip have more sufficient reasons to ban OYO, or take this as an excuse. Raising the channel fees this year will undoubtedly exacerbate the financial crisis of OYO.

    For the future of OYO, Yang Honghao is worried that if OYO falls, it will bring a chain reaction to the industry. After all, OYO is the leading enterprise of light chain mode. Its success or failure has demonstrative effect and affects the confidence of capital market in light chain mode. He is worried that it will be more difficult for hotel financing in the future.

    (interview with Tang Xueming and Chen Nailiang as aliases)

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