On April 10, 2018, Boao — The 2018 Annual Conference of the Boao Forum for Asia was held from April 8 to 11. The topic of the "sharing economy" once again became a focal point of the forum. On the 10th, during the sub-forum themed "Sharing Economy: From 'Capital Fad' to the Essence of Business," Chen Chi, CEO of Xiaozhu Short-Term Rental, continued to express optimism about the sharing economy, stating that it is a long-term trend.
As China’s largest home-sharing platform, Chen Chi, co-founder and CEO of Xiaozhu Short-Term Rental, was invited for the second consecutive year to attend the Boao Sharing Economy sub-forum. He mentioned that this year in Boao, he noticed a change — many journalists and entrepreneurs told him they were either Xiaozhu hosts or guests, indicating that the sharing economy is increasingly taking root in people’s minds. Founders and executives from Didi Chuxing, Mafengwo Travel Network, VIPKID, and Chehaoduo Group joined Chen Chi to discuss hot issues and the commercial essence of the sharing economy.
Speaking about the recent hot topic of shared bicycles, Chen Chi believes the sharing economy should not be an innovation model driven purely by capital. "The new economy requires a reconstruction of transaction costs and user experience, as well as the creation of new models, which demands long-term commitment from entrepreneurs, rather than being a simple capital game." Chen Chi stated that he remains optimistic about the social and commercial value of shared bicycles. He also specifically reminded entrepreneurs to maintain a long-term perspective when cooperating with capital.
According to a report by the National Information Center, China’s sharing economy market transactions in 2017 amounted to approximately 4.9205 trillion yuan, with housing accommodation transactions ranking third in growth rate at 70.6%. "After five years of exploration, Xiaozhu’s business model and unit revenue model have now matured," said Chen Chi.
According to the annual data report released by Xiaozhu Short-Term Rental, the cities with the fastest growth in orders on the Xiaozhu platform in 2017 were: Tianjin (700%), Chongqing (520%), and Changsha (480%). Sharing economy unicorns in China, represented by Didi Chuxing and Xiaozhu Short-Term Rental, have laid a solid foundation for the development of the sharing economy in first-tier cities by building infrastructure suitable for sharing economy models and improving the credit system, and are now accelerating their expansion into second- and third-tier cities.
"The greatest value of the sharing economy lies in empowering individuals and creating value for society," Chen Chi pointed out. "In the future, home sharing will further penetrate second- and third-tier cities, creating greater value for a wider range of users."
Lü Gang, Yang Haoyong, Mi Wenjuan, Li Jianhua, and others also shared their views on what constitutes the true sharing economy and the commercial essence of the sharing economy.