BNBHero
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Contents
Background
"Collaborative consumption model" BnBHero is like an AirBnB business in Korea. They deal with the inbound tourist stay in their respective markets. this is a lucrative market that has alot of potential to improve the current lodging industry. As of 24/3/2014, AirBnB valuation soar to USD 10 billion which is a huge amount for a startup in this collaborative consumption business.
After Seoul City declared itself a “sharing city”, BnBhero was recognized as the first sharing company of Korea
Company Business Model
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- Heavily focused on America and Europe
- Gap in Asia
- Requires local knowledge and localised business capabilities
- Build strong host-guest networks in Asia
Major "sharing economy" players are heavily focusing on America and Europe. Gap in Asia
- Asian Market and its consumers have unique and different characteristics from the West.
It also requires local knowledge and localized business capabilities
- Good potential to make a success if we build strong host-guest networks in Asian
Company team
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It all started when 2 entrepreneurs-to-be met in Singapore. Both Koreans happened to stay in the same condominium. They started discussing about an idea of shared-accommodation collaborative business. Minsoung (CEO) went back to Korea to form his A team and got Youngsoon On Board after their main team has been formed.
All founding team members have something in common. – All of them quit their full time jobs in big firms and companies and have an average age of about 40 years old. And love travelling and wanted to have something that they can call their own (company).
They also have a unique team culture – strict 9 hours working policy. Work hard for 9 hours every day and the rest of their time can be spent with their families.No working on Weekends.
Company Financials
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BnBHero's market investment outlook
Evaluating the market potential of the tourism industry, we realized that the biggest market segment is indeed from Asia Pacific and that Chinese are the ones that have the most inflow of tourist traffic into Korea. Out of which, they are also the largest in number of international students staying in Korea. From here, we believe that BnBHero can focus their attention on the Chinese tourst
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Current Market Segment
- Inbound Asian Tourists - 80% of inbound tourists are from other Asian countries
- Interested in Korean Culture - Asians are interested with Korean culture and many of them are looking for cultural experience opportunities in localized settings rather than just commercial accommodation.
- Wants cheaper alternative to hotels
- Prefers interaction with Korean Hosts-Strong relationship with Korean hosts would enable tailored customer service in their language
- Tech Savvy customers that uses e-commerce
What does BnBHero's Financials say?
BnBhero is a startup that is based upon traffic flow within the website and revenue is derived from the transaction on a daily basis.
Challenges
Technical Challenges : Initial portal that was outsourced at the start was not up to standard
Current challenges: Dealing with competitor + entering the Asia Pacific Market In the initial stage, BnBhero do not have the right website to serve the needs of building an ecommerce website .Developer was outsourced to third parties. Then it was not up to expectations of the Team. Thankfully they had one partners with engineering background that assisted with the revamp of their website. their website is currently running smoothly thanks to the correct acquisition of technological talent into the team.
Analysis
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Recommendations
- Social media campaign to raise awareness on “Collaborative Consumption” model
- Targeting incoming international students in the university areas
- Better translation for Chinese Mandarin
- Establish more “Guan Xi” with Chinese businesses and government
