New trend: on-demand business rise on-demand storage boom in Hong Kong

cloud network hunting note: on-demand storage patterns emerged in the 70 s, according to store customer need the old stuff stored in the warehouse, now this model fusion logistics, science and technology and the Internet, suddenly again in land-scarce city shows a strong vitality. and and and and is the pioneer to promote the model, we take a look at their story.

in crowds of Hong Kong, a group of obscure startup has set sail, and this time it’s competitors has just set foot on the starting line.

in the past six months,,,,, and five companies for space scarce city introduced a successful business model. They provide the same service, the home is full of things and no place to put through an app to order a plastic box. Suitcases to their apartment, users are throwing things you don’t use this box (such as a winter coat or old photo album), and then sent to a warehouse storage. The user to place an order for a box is not expensive, generally only about $7 a month.

this business model using the Internet management box order, arrange the warehouse with database technology and the location of the preview box. These seemingly mundane, but the real innovation in plastic box can be used repeatedly.

traditional warehousing business model is the user to rent a large storage cabinet. They have to pack your stuff and their storage space. Normally, these only part of the cabinet is make full use of, the remaining part is empty.

this on-demand business business model by specifying the standard size of parcel to maximize efficiency. This business model is in the 70 s, but in today’s “Uber For Everything” under the social trend of again struck a chord with the public.

the “five tripartite confrontation”

in view of the five business of the company’s business model has universal, discuss which first opened in Hong Kong are meaningless.

GNL Storage of founder Mark Sims said: “I have been watching the world within the scope of using this business model to open company in Hong Kong market, as many as 30 companies according to me. The last three or four months they are active in Hong Kong, all think of the game.”

Boxful by two Hong Kong native Norman Cheung and Carl Wu created, before they two Zooq created the Chinese e-commerce company, specializes in women’s clothing. Their financing Boxful of $1.5 million in angel investment, financial support for Hong Kong has abundant on-demand storage one of start-up companies.

StuffGenie finance team also rely on the Chinese fashion. Marburger Miles Davison in shenzhen li warehousing done two years of general manager, responsible for overseeing 6 square meters of clothing store, special “spike” luxury goods. After he and his brother Charlie doing web development and cooperation, jointly created StuffGenie.

Miles said: “although the storage mode of on-demand service isn’t new, but compared with other experienced company, we still have a chance to do better, especially in the user experience.”

Spacebox Louis and Cerne is the other team to play hall’s brother. Although no engaged in logistics industry background, but together they create a weather consultancy Enecore, then sells it to an investor. Unlike Boxful and StuffGenie, Louis and Cerne brothers to create on demand of the storage business model more or less accidental.

Louis said: “we just begin to do custom furniture. How many odd design apartment in Hong Kong, furniture pendulum are inappropriate. In the process of research of custom furniture, we store outside the apartment on domestic waste idea.”

GNL Storage Mark Sims claims that the company is part of his MBA graduate course project. In September 2013, he ended his job in Oracle for 13 years, to create a Storage company, become the index to the success of today.

The creator of a

Klosit not own information public, but a person familiar with team, according to the founders before engaged in logistics industry.

obvious things in Hong Kong

a seemingly mediocre proposal has attracted numerous enterprises of great interest in Hong Kong, it seems to be less common. But considering the local conditions and the tide of global entrepreneurship company, it is no surprise.

according to Colliers in August 2014, a report, Hong Kong has 820000 households do not have a special storage space. If half of each family need 15 square feet of storage space, the market will be more than about 615 square feet of a private storage space. Helen Ng to private storage association in Hong Kong in September last year in an interview with the “Hong Kong commercial daily”, points out that private storage market is far from saturated. Although these plastic box startups can’t dig out the real space in land-scarce Hong Kong, but they reduce the cost of the majority of users of private storage and trouble, to expand the storage market.

Boxful, co-founder of Norman Cheung said: “in terms of penetration, private storage market (Hong Kong) don’t like America or Britain. Hong Kong’s storage space per capita is only 0.5 square feet, far lower than per capita is in the west.”

meanwhile, on-demand storage patterns have already produced in the United States, several startup has raised several rounds of huge amounts of money. The Brooklyn Boxbee has raised $7.3 million from 500 Startups and Google Ventures, MakeSpace financing of $10.1 million in New York City, the last round of financing by the Upfront Ventures led.

even Rocket Internet, made the German startups SpaceWays services cover a wide range of Chicago, Toronto, London and Paris, now seems to attract talent in Singapore, this is another of Asia due to less space of the land and spawned a storage company. Sapaceship from Ardent Capital financing, was formally established in January; Another similar start-up company Vault Dragon also began in 2013.

the Brave of Hong Kong as the clerk of the vc Derek Kwik, points out that the whole city of on-demand private storage craze in the final analysis is the need for speed.

he said: “here to investors and founders saw us gradually rise trend, but must take the time to build similar industry. Between each country’s branch there are different levels of competition, all in Asia where the rent is high, the space is little, storage is a problem.”

package at home and abroad to

on-demand storage patterns of creative co., LTD., the same between different modes. Each operation box store company finally to resort to complete web service, cool mobile application, proper case tracking technology and perfect customer service. Some people focus on establishing the target business model, while others on an “send your friend’s house” pattern (Roost in the United States, for example) are more interested in.

if these as needed to provide storage service company what are the essential differences between words are hidden behind the scenes. And orderly transport team and good indoor storage helps users keep valuables. To logistics outsourcing to the third party can save cost, but the possibility of an accident, the higher it not to the company the credibility of plaster.

Kwik said: “the traditional e-business mode, if someone bought a pair of shoes from amazon has confiscated the arrival of the goods, amazon will send a pair again to your satisfaction. But if lost the user’s photo album is not so simple thing to apologize. Personal storage than e-commerce model to take on more responsibility.”

Hong Kong most on-demand storage companies outsource logistics in different degrees. Will such as StuffGenie distribution and storage logistics providers to business processing. Wearing StuffGenie T-shirt lorry drivers trained and even know how to scan StuffGenie box, warehouse management technology, but they still not StuffGenie formal employees.

compared with GNL and SpaceBox transport process under control. In addition to some (GNL well-paid) loyalty drivers, truck all the call center or similar Gogovan all service center. SpaceBox box with a spokes, even free scheduling truck to unload in temporary distribution point in this model, the storage delivery man then box sent to each user.

the Louis Spacebox Cerne said: “we are not interested in or rented warehouse operation team, in general, we don’t need to manage the accumulation of assets. By contrast we pay more attention to create a popular brand of trust and respect.”

the Boxful is not. Boxful most of his rivals for warehouse to develop a special short-term deals to adapt their box to box’s business model. But Cheung and Wu long-term leases storage and the team, they are considering buying these assets. Real estate to “100% belong to the Boxful”, all labor is Boxful of employees.

of course, although indoor storage mode in theory can ensure items safer, services more circumspect, but it is still hidden risk, if you rent or buy assets idle down, that you spend money wisely.

Kwik said: “I’m not full ownership of the sale team, I just think the money again on storage passively wait customer calls too risky, they don’t call one thousand?”

winner-take-all?

because of all these new companies create less than six months, they are likely to need several months or even more than a year to get market leader position. But the strange thing is when asked whether they believe that on-demand storage will evolve into a winner-take-all market, most companies answer is “no”.

the Louis Spacebox Cerne said: “at least at this stage the industry does not create a powerful network effect. Of course if do big brand, you can dominate the market to a certain extent. But I believe that no company can merger and acquisition (m&a), all other similar company to become the city’s most successful and only a company on-demand storage, any city of any storage companies can.”

but if all the team are committed to establish the same pattern, the result is a vicious circle. Like Uber and transport network, on-demand storage is a commodity. Box is box, shipping is shipped.

Kwik said: “all companies in the bargain, then than services. Once all of the company’s prices and services are about the same, they are no longer profitable. So go further or profitable.”

if you want the goods services and products applicable to a particular market success, companies often need positive marketing strategy to highlight his win customers. Do this cost is high, especially after the vicious competition demand will be more expensive. Uber, for one, it billions of dollars of financing increase driver allowance give discounts for passengers, only for marketing.

two other factors show that this competition will ultimately comes down to good advertising. Like any new concept of promotion, the business model must be “education market” and explain the value of their service to the customer. But the education market quickly became a “tell the market users need it. In order to stand out his competitors, on-demand storage company must convince customers check more things and not just a winter coat and photo albums, the best they can to save save, and save it now.

Kwik said: “any storage company may not passively waiting for you a year or two to decide when to save, companies must come up with an idea to alert users to store every month, or Christmas items such as cleaning storage zone and so on. Companies with a multitude of financial support and experienced logistics experts to win in the competition.”

storage companies in Hong Kong are using action to determine whether or not this argument holds. Boxful on Facebook and local website launched a violent campaign ads, Klosit deliberately avoid ads.

storage companies and global logistics organization

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