Shell (02423) Transformation: Consumers take center stage, managers go to the front line, Beijing Lianjia upgrades community living service model.

On March 29th, Peng Yongdong, co-founder, chairman, and CEO of Beike (02423) Group, issued a company-wide letter titled "The Next Stage of Beike: Putting Consumers at the Center, Rebuilding the Organization", initiating a strategic transformation involving upgrading service models, restructuring organizational architecture, and transforming Beijing Lianjia, among other things. The letter clearly states that the company will transition from a transaction platform to a community living service platform. "Consumer needs have fundamentally changed. Consumers do not just need more information, but more authentic information, neutral explanations, and especially definitive solutions," Peng Yongdong pointed out in the letter. "We must shift from focusing on 'transactions' to focusing on 'residential decision support' and 'long-term service relationships.'" The letter explicitly states that the direction of Beike's transformation is to upgrade the community living service model. Embracing the dual opportunities of changing consumer demand and the underlying logic of the industry reconstruction by AI, Beike will help agents transition from being "information intermediaries" to "trusted expert service providers," transforming the service model from "changing the industry's connection methods" to "changing the industry's service methods." Establishing the Group Transformation Management Committee and having managers work on the front lines After the company-wide letter was issued, Beike restructured its management architecture, announcing the establishment of the Group Transformation Management Committee led by Peng Yongdong, aimed at transforming business architecture, performance evaluation, incentives, and resource allocation to meet changing consumer demands. To address the fundamental shift in consumer demands, Peng Yongdong emphasized the need to upgrade frontline customer service and functional professional capabilities, incorporating "serving consumers" into the core responsibilities of all levels of management. Managers are required to shift from focusing on back-office reports, target pressures, and control to serving consumers on the front lines while eliminating ineffective assessment indicators for frontline service providers, weakening short-term transaction scale orientation, and strengthening customer satisfaction, service quality, and long-term value creation dimensions. Simultaneously, the transformation of functional middle and back offices will evolve from a traditional "control center" to an "ability factory", focusing on capacity building, reducing ineffective management consumption, and allowing reusable capabilities to directly serve the front line. Upgrading the community living service model, Beijing Lianjia appoints Chief Customer Officer for the first time The restructuring also established the Beijing Lianjia Strategic Committee, integrating brokerage, leasing, and renovation businesses to shift from traditional single transaction services to a family lifecycle service model. "In the future, Beike will no longer focus just on a single transaction, but will view long-term service relationships in a community, a household, and a residence as more critical, replacing short-term transactions with long-term companionship and restructuring the service system around customer residential needs," Peng Yongdong stated in the letter. In the new management structure, three Chief Customer Officers have been appointed for Beijing Lianjia, reporting to Peng Yongdong. The Chief Customer Officer position includes General Managers of major customers, Regional Customer Directors, and Community Customer Managers. The reform aims to constantly remind all management personnel that "it's not about targets, it's about customer service." In the new service model, Beike will position its stores as "community living service stations", serving as the smallest operating and collaborative unit, not focusing on short-term transactions. Rooted in the community, they will provide property transactions, leasing, decoration, custody, and asset management services, aiming to build long-term relationships with community residents. Success will not be measured by scale for the "two wings", as Beikehaos will promote innovative integrated services According to Beike's 2025 performance data, Beike's "non-real estate transaction business" (such as Huju and renovation) has reached a historical high of 41%, leasing services have become profitable for the first time, and home improvement revenue has reached a historical high of 15.4 billion RMB. Peng Yongdong also outlined new directions for Huju, renovation, and Beikehaos in the letter. "These businesses are the foundation and backbone for upgrading the community living service model. From the perspective of residential services, scale is no longer the measure of success, 'certainty' is. In the new stage, Huju and renovation will focus on three key words: products, services, and efficiency." Huju has surpassed 700,000 housing units under management, combining its first annual profit with record-breaking achievements in scale and profit, making it Beike's new business driving engine. Internal documents from Beike show that Wang Yongqun has been reappointed as Senior Vice President of Beike Group and CEO of the Huju business line, focusing on the upgrade of leasing services in the new stage. In the next phase of Beikehaos, they will continue to focus on identifying "good houses", providing developers with innovative data, product positioning, marketing reach, and matching services in conjunction with Beike's brokerage business. (Source: https://news.fang.com/zt/caitxt_71910184.html)