Abstract:With the rapid development of China's economy and the advancement of urbanization, the demand for domestic service is increasing. Especially in first-tier cities and developed cities, due to the fast pace of life and high work pressure, people's demand for housekeeping services is more urgent. In addition, the government will also increase its support for the domestic service industry, provide more perfect policies and regulations, and provide a better development environment for the industry. According to statistics, from 2015 to 2022, the scale of the mainland domestic service market has an obvious upward trend, and it is estimated that the market size will reach about 1.16 trillion yuan in 2023.
1. Definitions and Classification
Housekeeping refers to the general term for family relations and their things, which involves family business, family law, family style, income and expenditure, education, interpersonal relationships, and family relations with relatives, friends, and neighbors. At present, housekeeping generally refers to housekeeping services, which mainly include nannies, confinement nannies, babycare, hourly workers, part-time workers, cleaning, foreign-related housekeeping, nursing workers, elderly care, nursing homes, home cooking, etc.
Second, industry policies
1. Competent authorities and regulatory system
The administrative departments in charge of the housekeeping industry include the Administration for Market Regulation, the Human Resources and Social Security Bureau, etc. The Market Supervision and Administration Bureau is mainly responsible for drafting draft laws and regulations related to market supervision and management, formulating relevant rules, policies and standards, organizing the implementation of the strategy of strengthening the country with quality, food safety strategy and standardization strategy, formulating and organizing the implementation of relevant plans, standardizing and maintaining market order, and creating a market environment of honesty and trustworthiness and fair competition. The Human Resources and Social Security Bureau is mainly responsible for formulating and organizing the implementation of the human resources market development plan and the human resources mobility system, establishing a unified and standardized human resources market, and promoting the rational flow and effective allocation of human resources.
The purpose of the industry self-regulatory organization is the China Family Service Association, which aims to collect, collate and analyze the development trends of domestic and foreign industries, coordinate the common development of industry enterprises, provide better family services for the people, and provide suggestions and suggestions for the government to formulate industry development plans, laws and regulations.
2. Industry-related policies
The housekeeping industry is not only a sunrise industry, but also a love project. Promoting the development of the housekeeping industry is a major event that supports both ends in one fell swoop, which is not only conducive to ensuring and improving people's livelihood, but also helping to promote economic development. In order to promote the development of the housekeeping industry, the mainland has issued a series of policies and measures. For example, in May 2023, the Ministry of Commerce and the National Development and Reform Commission issued the "Key Points for Promoting the Quality and Expansion of the Domestic Service Industry in 2023", which promotes the quality and expansion of the domestic service industry from six aspects: first, to improve the professionalism of employees, second, to strengthen government supervision and industry self-discipline, third, to build a supply and demand docking platform, fourth, to actively promote housekeeping into the community, fifth, to improve the level of protection for employees, and sixth, to implement policies to help enterprises bail out. In the "2023 Action Work Plan for Household Economics and Agriculture" released in July 2023, it is proposed to encourage qualified local organizations to organize excellent domestic enterprises to "enter the business circle" and "enter the community", expand the domestic consumption scene, boost the consumption of domestic services, and create domestic employment opportunities. Encourage the development of precise labor service matching, and help rural migrant laborers who are willing to engage in domestic service to directly reach community service outlets for employment. Encourage the integrated development of domestic enterprises and industrial chain and supply chain related enterprises, and actively introduce new products, new services, and new consumption suitable for community needs.
Third, the development process
From the perspective of development history, the development process of China's domestic affairs industry can be divided into five stages: embryonic stage, initial development period, expansion period, Internet + housekeeping, and cloud computing housekeeping. From 1980 to 1999, domestic service companies were just emerging, with small scale and low credibility, and the industry was in its infancy. From 2000 to 2010, the industry was in the initial development period. A small number of individual domestic service companies have begun to appear, which can basically solve the problem of matching the needs of domestic service workers with employers. However, the domestic service company does not have sufficient understanding of the background of the domestic helpers it serves, and the transaction process is vague and opaque. From 2011 to 2015, the industry was in a period of expansion. Housekeeping service companies have sprung up in China, highlighting service characteristics and creating a number of brand housekeeping service companies. With the continuous expansion of the demand for housekeeping services, the company's profits continue to grow, the scale continues to grow, and the housekeeping service industry expands rapidly. From 2016 to 2018, with the development of the Internet, people initially used the Internet to further solve the problem of information asymmetry in the domestic service industry, and at the same time, there was a problem of information surplus and inability to accurately match. Since 2019, emerging Internet companies have combined traditional models, such as the cloud housekeeping network under the Shanghai Housekeeping Association, to combine the housekeeping service industry with cloud computing, and intelligently divide and match suitable housekeeping personnel for the needs of employers through the concept of cloud computing.
Fourth, industry barriers
1. Channel barriers
Household enterprises need to obtain customer orders through various channels, such as online platforms, property company cooperation, community publicity, etc. However, high-quality channel resources are limited, and large housekeeping enterprises have often established a stable channel network and occupied a dominant position in the market due to their scale, capital and market experience, and channel construction often requires enterprises to invest a lot of money and time. Therefore, for new entrants to the market, access to channel resources can become a challenge.
2. Brand barriers
The brand image of the housekeeping business is also an important barrier. A good reputation can attract more customers and form a brand effect, thereby increasing the competitiveness of the enterprise. However, in the housekeeping industry, brand image building is a long-term and complex process. Consumers' brand image of housekeeping enterprises is often affected by many aspects such as service quality, personnel quality, and word of mouth. For new entrants to the market, building a good brand image requires a lot of time and effort, and the risks are high.
3. Talent barriers
The housekeeping industry is a labor-intensive industry that requires a large number of service personnel to provide services. However, due to the high mobility of domestic workers, recruiting and training qualified service workers becomes a challenge. In addition, excellent service personnel often become the object of competition among various companies, resulting in a shortage of human resources and rising costs. Therefore, for new domestic enterprises entering the market, they need to build their own talent reserves from scratch, and enterprises face high talent barriers.
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the domestic service industry chain is mainly domestic service training institutions, domestic service supplies suppliers and domestic service technical support, among which domestic service training institutions provide training and skill upgrading services for domestic workers to ensure that they have the required skills and knowledge. Domestic service supply suppliers provide cleaning supplies, tools, and equipment needed for housekeeping services, such as vacuum cleaners, detergents, brooms, mops, etc. Housekeeping Technical Support provides software and technical support for housekeeping management and scheduling to improve efficiency and customer satisfaction. Downstream in the industrial chain are customers of domestic services, who need a variety of domestic services to meet their needs, such as home consumers, corporate customers, government or social organizations, etc.
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