Innovation丨WEPLUS Cowok Co-Founder He Shanheng’s Exploration
1983: Born in the US. 2015: Co-founded WEPLUS
Now WEPLUS has completed first round of investment with a valuation of 1.1 billion dollars, leading the industry.
In 2007, He Shanheng returned to Beijing from the US. Upon finishing up the project of Zhongguancun Dongcheng Science Park ( government project, within Beijing second-ring, 273 acres), he set up his own gallery after realizing that operating was needed in Chinese market. Upon hearing gallery, we tend to have a stereotype of “ ten galleries, nine losses” in most cases. However, WEPLUS co-founder He Shanheng gave birth to “predecessor” of united office. “ Initially, the reason why I came up with this idea was because I had experienced bad office work environment in the US—— you can’t even place your magazines properly in narrow space. Then I realize that the strength of an excellent design group is limited, but if we empty the space and only provide framework for users to participate in design, which will generate indefinite possibilities and high customer satisfaction.” added He Shanheng in an interview for 21Tracker. Sophisticated organizational operation is based on interest, which is a mesh operation model that connects operator and customers. In this model, operator’s business change is not just limited to company or product itself. They are usually engaged in various businesses from exploring individual and organizational resource. “ In all, sophistication requires passionate people”.
“ From the perspective of an operator, I think that the development trend of future united office will appear polarized—— one is scale and the other one is sophistication”. So from 2013 to 2014, He Shanheng began considering how to make products on capital and strategies from “sophistication” to “ scale”.
Large scale united office industry is a traditional store model —— based on space utilization, network establishment, membership scale and brand output. Compared with sophistication, these two types of operations are just like civilian accommodation and big hotel. However, large scale operation is the main development trend, which is the primary strategy to lower operational cost and develop competitive advantages. Organizational cost generally includes fixed cost and changeable cost. In united office industry, fixed cost can be regarded as “ operational cost” while changeable cost is “ area of office building”. After large scale effect comes into being, although percentage of changeable cost may increase, the fundamental operational cost will become smaller with more incoming enterprises. So profit rate will increase as well.
Meanwhile, large scale operation is an efficient way to explore market and promote organizational brand. Corporate Identity System ( CSI) is gradually being valued even as a core part of identifying organizational core competitive advantages, which is a necessary measure for enterprises to achieve deepened brand implantation.
Apart from large scale economy effect, innovative business model is a necessity for every successful enterprise. For example, the innovative operational model——“super contact” plays an extremely important role in the success of WEPLUS who is leading the industry within 2 years by quickly occupying the market. He Shanheng says to journalist of 21Tracker : “the essence of this operational method is “ friend——acquainted —— connected”. “ Friends are the best assurance to explore business and later it is the most important step for our “ super contact” to find out common appeals or supply-demand relationship of different friends. At last, we are solely doing “ super contact” with the purpose of extracting profit”.
The idea of united office originated from the west. However, with the advancement of Chinese society, people’s attention and consuming attitude have changed as well. The old generations consume on “survival” while contemporary consumers focus on solving “ life” issues. On the other hand, enterprises are springing up in number in the big environment of deepened Chinese market, which has speeded up the demand for office buildings. Therefore, united office will be one of the potential industries of China in the future.