baitnearme| 30,000 technicians, not only come to the door but also go public?

Special topic: "Great Health Care" is going to be on the market.Baitnearme? 20, 000 door-to-door massage technicians prop up Dongjiao to home IPO

If you want to speculate in the stock market, you can see the research report of Jin Kirin analysts.BaitnearmeAuthoritative, professional, timely, comprehensive, to help you tap the potential theme opportunities!

Source: China Newsweek

Original Yu Shengmei

Has more than 30, 000 technicians, "24-hour on call", registered users more than 10 million.

An unusual door-to-door massage platform is ready to be listed in Hong Kong. Recently, Tang Fan, founder of door-to-door massage brand Dongjiao to home, said in an interview with the media that the IPO (initial public offering) of Dongjiao to home is in progress.

However, compared with the popularity brought by the listing, Dongjiao Zhijia's "edge ball" behavior in marketing has already made it famous. On social platforms, it has become a tacit "secret" that door-to-door massage industries such as Dongjiao may breed special services. During the 315 period of this year, Dongjiao even was directly named "related to pornography" by Fujian Satellite TV's "Live" column.

What kind of business is door-to-door massage? can 30,000 technicians really support a listed company?

Make a fortune in silence

According to the official website, Dongjiao Home Service, established in 2018, is a door-to-door massage O2O service platform. Dongjiao to Home has developed from Chongqing. At present, its platform services have covered 47 cities across the country, 3/4 of which are in the south.

It is understood that its founder Tang Fan is from the Internet industry, proficient in online brand promotion. At first, Dongjiao to home to try the online + offline business model is not smooth, and even "in 2019, the daily number of orders is less than 30, book loss of more than 3 million", so close offline stores only to develop the online model.

After the outbreak, the online model won the opportunity, coupled with unusual marketing bombardment, the eastern suburbs to home to be able to expand rapidly.

Li Weihua, an associate professor at the School of political Science and Law of the China University of political Science and Law, told China Newsweek that the O2O model in Dongjiao is similar to the Didi platform, bringing together massage technicians and users who need massage. use information services to make deals. This light asset model does not need the physical stores of the traditional massage industry, and can expand rapidly to achieve a certain scale effect.

In fact, Dongjiao's relationship with technicians is similar to that of Didi-technicians are not Dongjiao employees. The number of employees in the 2022 annual report of Dongjiao to my parent company Jumi Network is only 19, according to the information of the Tianyan inspection platform.

Open Dongjiao to Home App, it clearly marked the technician's "subordinate unit", many technicians' introduction page with the label of "small and micro merchants", or the name of individual merchants named after themselves. In other words, there is no direct labor relationship between Dongjiao and technicians, who need to apply for a self-employed business license and sign a "cooperation agreement" with the company.

Relying on the light asset model, Dongjiao to home has also been able to expand rapidly. In the latest introduction of its App, the slogan "the cumulative number of registered users exceeds 10 million, and the number of contracted merchant technicians exceeds 30, 000" is impressively in sight.

Although the model is light, the earning power of the eastern suburbs should not be underestimated. Combined with relevant reports and market public information, the transaction value of the project from Dongjiao to Home in 2023 GMV exceeded 2 billion yuan.

The price of door-to-door massage in the eastern suburbs is not cheap. According to its App, Chinese massage costs 218 yuan for 60 minutes and Thai SPA costs 398 yuan for 120 minutes.

Photo / App from Dongjiao to Home

Dongjiao also set different commission rates for technicians: less than 6500 yuan, technicians divided into 50% Bing 6500 yuan, technicians divided into 55% Bing RMB 9500, technicians divided into 60% Xing 14500 yuan, technicians divided into 80%. In other words, as a platform, the proportion of eastern suburbs to home is between 20% and 50%.

Even if calculated according to the minimum percentage of 20%, the income from Dongjiao to home will reach 400 million yuan in 2023.

"We have completed the service network layout from one to 22 cities in three years, and now we have a market share of about 70 per cent, making it a quasi-unicorn in the industry," said the company introduction released by Dongjiao Zhijia's official Wechat in December 2023. "

You know, in the investment community, a company that can be called a unicorn refers to a sector leader with a valuation of more than $1 billion.

The storm of "involving porn"

The rapid expansion of Dongjiao to home is inseparable from its service model.

Door-to-door service is a major feature that distinguishes Dongjiao from traditional massage parlors. In the promotion video released by Dongjiao Home Social platform, technicians will come to the house for massage at the agreed time, using disposable bed sheets, pillow towels, massage towels and so on.

Photo / Screenshot of Social platform

At the same time, Dongjiao claims to be on call 24 hours a day. It is understood that the technician on the platform uses the independent order mode, App will show the distance between the technician and the user, before the technician comes to the door, the user needs to pay a certain "transportation fee".

More importantly, the eastern suburbs focus on young and beautiful female technicians, while there are very few male technicians.

The details of the project also mentioned, "if the client requests a refund due to irrelevant factors such as seeing that the physiotherapist is not beautiful enough, half of the project fee paid by the client will be refunded, and the transportation fee will not be refunded."

Photo / App from Dongjiao to Home

However, taking appearance as the selling point is also easy to be eaten back by the consumer experience.

On the black cat complaint [download black cat complaint client] platform, the appearance of the technician is the focus of complaints from Dongjiao to home. Some users complained that the technician "concealed the technician's own appearance and figure with image modification software and beauty camera".

Picture / Black Cat complaint

This kind of complaint is inseparable from the marketing strategy of door-to-door massage platform such as Dongjiao to home to magnify and publicize the appearance of technicians. With the external conditions of the technician as the attractive background, its "explicit" related advertisements also caused public discomfort.

Since 2022, Dongjiao has launched a marketing bombing mode, laying advertisements on elevator screens, high-speed rail backs, taxi advertising spaces and other media, and even "accurately" advertising into men's toilets.

In these ads, the camera technician is beautiful and sexy, and words such as "24 hours, on call, door-to-door" are more imaginative.

Photo / Screenshot of Social platform

Baidu Index data show that from March 1 to March 31, 2024, 80% of the users who searched home in the eastern suburbs were 20 to 39 years old.Baitnearme.72%, and 91%Baitnearme.8% are male.

However, once the edge marketing has been scrubbed, it is easy to become pornographic.

On March 15, 2024, Fujian Satellite TV's "Live" program named a number of door-to-door massage App, including Dongjiao to home, saying that some platform technicians hinted and encouraged customers to "add clock" and upgrade "special service" in the process of massage.

It is reported that in the process of providing a 218 yuan 60-minute Chinese massage service, a home-to-home technician in the eastern suburbs proposed to add money to do "characteristic prostate maintenance."

Picture / "Live" video screenshot

After the incident was exposed, Dongjiao quickly responded that the platform has been abiding by relevant laws and regulations, and once it is found that the illegal behavior of cooperative merchant technicians will be cracked down to the end.

Just recently, "the man was seduced by the female technician" related topics on the hot search, the technician involved is from the eastern suburbs to home, and the previous 315 exposure of the "routine" is the same. According to the Xiaoxiang Morning Post, Mr. Zhao said he made an appointment for a Chinese massage on the Dongjiao platform on April 6, when the female technician suddenly leaned over him, touched his private parts on a large scale and asked for "extra bells".

Afterwards, Dongjiao Jiejia platform customer service responded that the platform absolutely does not allow any illegal projects. "after customer feedback, we verified that if there is a corresponding situation, we will certainly seriously punish the relevant technicians and refer them to the public security for handling."

Can it really go public?

A series of porn-related incidents point to the internal control problem of Dongjiao to home as a platform.

In the view of a number of interviewed experts, Dongjiao to home as a platform to charge a certain fee for transactions between the two sides, regulatory responsibility can not be avoided.

Li Weihua interpreted that the relevant "porn-related" incidents reflect the disadvantages of the door-to-door massage service model. "users often do not have a professional massage bed at home, and technicians have to go to bed to operate at the massage level. In the implementation process, it is easy to produce certain risks to both users and technicians."

Liu Xinyuan, a lawyer from Shanghai Qin Bing (Beijing) Law firm, told China Newsweek that according to articles 66 and 67 of the Public Security Administration punishment Law, anyone suspected of prostitution or introducing prostitution may be punished and fined. At this time, the share collected by the platform for providing consumer services is also illegal income, and the platform should also bear the responsibility of returning stolen goods and assisting the investigation. If it is heavy, its business license is revoked.

The crux of the problem is that Dongjiao to home as a platform charged fees, massage is a more private project, how to ensure the monitoring of the service link?

Founder Tang Fan once said publicly that in terms of compliance, Dongjiao went home to draft and implement the "White Paper on illegal Management of platform Merchants", adopted a porn-related special management and control system, and developed an AI big data model, which improved the early warning accuracy of offending merchants by 400%.

On how to control the risk, China Newsweek sent an interview letter to Dongjiao, which has not received a reply as of its publication.

Compliance has indeed become a major problem in front of the Dongjiao to-home listing.

Huang Lichong, president of Huisheng International Capital, interpreted to China Newsweek that the Hong Kong Stock Exchange has relatively stringent requirements for the compliance of listed companies. If there is a legal or moral dispute over a company's business model or behavior, such as suspected of providing or covering up illegal services (such as pornographic services), this will seriously affect the examination results of its listing applications.

It is also mentioned in the listing decision of the Hong Kong Stock Exchange issued by the Stock Exchange that if a company has major compliance problems or moral hazard, the Stock Exchange may consider that the company is not suitable for listing.

"if Dongjiao does not fully prove that its business is fully legal and compliant, and has taken effective measures to prevent violations, the probability of success of its subsequent listing in Hong Kong may be relatively low. Companies need to thoroughly address these compliance issues before applying for listing and demonstrate to the SEHK and potential investors the legitimacy and ethics of their business. " Huang Lichong said.

Will the company still press ahead with its listing plan when the compliance risk is exposed?

On April 25, China Newsweek contacted the legal representative of Chongqing Dongjiao Zhijia Information Technology Co., Ltd., which said, "We (Dongjiao Zhijia) are only doing compliance operations in accordance with IPO business standards and working with multiple regulators to establish industry standards, which has been misunderstood by many media."

At the same time, the business model of door-to-door massage also has to face a lot of competition, and all kinds of "home-to-home" massage emerge in endlessly.

Li Weihua believes that the competition in related industries is more homogeneous, and the level of cultural quality of technicians is also relatively low. In terms of industry comparison, although Dongjiao is known as a unicorn, it is difficult to say that it has an absolute advantage. More importantly, whether it is the business model, the boundary of power and responsibility, the business model of door-to-door massage is facing a lot of challenges.