Beike announced changes to the organizational structure of the Group and Beijing Lianjia.

On March 29th, Peng Yongdong, the co-founder, chairman, and CEO of Beike Group, sent an all - staff letter titled "Beike's Next Phase: Reconstructing the Organization with the Consumer at the Center", announcing the launch of a strategic transformation. This transformation involves multiple aspects such as the upgrade of the service model, the change of the organizational structure, and the reform of Beijing Lianjia, clearly indicating that the company will deeply transform from a transaction platform to a community living service platform.

The all - staff letter clearly states that the general direction of Beike's transformation is to upgrade the community living service model. By embracing the dual opportunities of the changing consumer demands and the reconstruction of the industry's underlying logic by AI, it aims to help real estate agents transform from "information intermediaries" to "trust - based expert service providers", and change Beike's service model from "changing the connection mode of the industry" to "changing the service mode of the industry".

Peng Yongdong pointed out in the letter, "After 24 years, we have inevitably contracted the 'big - organization disease': the departmental barriers are getting thicker, processes take precedence over common sense, and the complex stacking of indicators masks the real value creation. It seems like management, but in fact, it's internal strife; it seems like the pursuit of efficiency, but in reality, it's for self - operation, getting farther and farther away from consumers. We will further streamline various indicators, enabling those who truly create value to get closer to consumers; allowing all capabilities and resources to reach the front - line directly; and making the organization revolve around consumers, being agile and flat."

After the all - staff letter was sent, Beike issued a document to restructure its management framework and announced the establishment of the Group Transformation Management Committee, led by Peng Yongdong. The committee aims to transform the business structure, assessment incentives, and resource flow to meet consumer demands. The functional middle and back - offices will also transform synchronously, upgrading from the traditional "control center" to a "capability factory", focusing on capability building, reducing ineffective management consumption, and enabling reusable capabilities and group resources to reach the front - line of services directly.

In order to meet the fundamental changes in consumer demands, Beike will upgrade front - line customer service (Service) and functional professional capabilities (Skill). It clearly includes "serving consumers" in the core responsibilities of managers at all levels, requiring cadres to shift from looking at reports, imposing indicators, and strong control in the back - office to serving consumers on the front - line. At the same time, it will eliminate ineffective assessment indicators for front - line service providers, weaken the short - term transaction scale orientation, and strengthen dimensions such as customer satisfaction, service quality, and long - term value creation.

Beike's latest organizational structure is divided into three levels:

• At the group decision - making level, the Group Transformation Management Committee is established, directly led by Peng Yongdong. Five special management committees are set up: Human Capital, Strategy and Operations, Product and R & D, Safety, and Culture and Discipline, which are responsible for decision - making and resource allocation in professional fields.
• The group business lines are reorganized. The original product and R & D business line is split into a product business line and an R & D business line, with clearer division of labor. The original Human Resources Organization Department is merged into the newly established General Cadre Department to strengthen cadre management. The Beike Research Institute is assigned to the Public Affairs line. A new Integrity and Discipline Affairs line is added.
• In the city and regional structure, the north - south regional divisions are cancelled, and ten directly - affiliated regions are established, including Chengdu, Chongqing, Guangzhou, Hangzhou, Nanjing, Shenzhen, Suzhou, Tianjin, Wuhan, and Xi'an. Li Fengyan is appointed as the Group's Senior Vice - President and City COO, coordinating the ten regions.

Beijing Lianjia will also be integrated synchronously. The Beijing Lianjia Strategic Committee will be established, with a professional middle - platform and two major regions in the east and west. Three Chief Customer Officers (CCO) are initiated for the first time, reporting directly to Peng Yongdong. All management positions' names will highlight "customer", and the assessment will shift from scale to satisfaction.

The regionalization of diversified business lines: The whole - house decoration business is divided into the east and west regions; Beijiahao is set up in eight regions such as Beijing, Shanghai, and Wuhan; Huiju is divided into two major regions, the northeast and the southwest.

The goal of this transformation is to change the middle and back - offices from a "control center" to a "capability factory", allowing resources to flow directly to front - line service units, and comprehensively shifting from a "transaction - oriented" to a community long - term living service - oriented approach.

The full text of the all - staff letter "Beike's Next Phase: Reconstructing the Organization with the Consumer at the Center" is as follows:

More than a month ago, in the New Year letter, we looked back on the 24 - year journey of Beike together. In that letter, I discussed with you a question again: Facing five forces of change, what should Beike adhere to?

The answer is simple and straightforward: Put the consumer at the center.

"The fundamental change in consumer demands" is the most powerful force. It is profoundly changing our housing industry and forcing us to rewrite the organization, rewrite the service, and rewrite the way of value creation. Today, I want to further share my thoughts. These thoughts will be implemented as a series of transformation measures.

I. Upgrade the Model: Meet the Fundamental Changes in Consumer Demands

In the past, the main demands of consumers were "buying a house" and "selling a house". But today, what more and more consumers are really facing is not a lack of information, but too much information; not the transaction itself, but the decision - making itself. Buying, selling, renting, and decorating a house have become comprehensive judgments around the family, assets, lifestyle, and future expectations. Especially when the market enters a stage of differentiation and fluctuation, what buyers fear most is "buying the wrong house"; what sellers care most about is "whether someone truly understands my house and helps me sell it well". Those who can adhere to a neutral market view, stand more firmly on the side of consumers, and help them make better choices are the ones who truly create value.

This is not only true for the second - hand housing business. The same applies to new housing services. Before today's consumers enter the sales office, they often have completed the first round of screening and comparison on different online platforms and even begun to form initial preferences. If the information is incomplete at this stage, decision - making mistakes are inevitable.

At this month's earnings conference, an analyst asked me how I view self - media. I think the emergence of any new form is not accidental. It must have met some demands that were not well - met in the past. Self - media is actually a signal, reminding us that today's consumers need someone to clearly explain the house, the neighborhood, and "why it's worth buying" when making housing decisions. What consumers want is decision - making support.

So, do our managers and service providers have the ability to "explain the decision - making logic"? Those who can clearly explain the real advantages and disadvantages of a house, the living logic of a neighborhood, and the family's choice path are creating value for consumers; those who can simplify complex problems, clarify uncertainties, and address consumers' concerns and hesitations are helping consumers make correct decisions.

To truly achieve this, our service model itself must also change. In the past, we disassembled things according to different product lines, focusing on short - term transactions: how many customers, what the market share is, and what the average order value is, and then analyzing the business results through these indicators. But this logic is no longer suitable for the future. When we truly put the consumer at the center, we won't just focus on a single transaction. Instead, we'll take a longer - term view of a community, a family, and a long - term service relationship about "home".

For example, when looking at a community, we don't just see how many transactions there are, but how many households there are; not just how many houses are sold today, but how many demands there are for home decoration, leasing, asset management, and even future community services among the residents. How much in - depth service can be provided? In the future, what we'll focus on is not just the average order value of a single transaction, but how deep a connection we can form around the customer's life cycle, how much value we can create, and how strong the trust we can build.

There are still a large number of opportunities to be iterated and redefined around the matter of "living". When we talk about "meeting consumer demands" today, in essence, it's no longer the same kind of "meeting" as in the past. Instead, we need to rebuild our service capabilities around consumers' new decision - making methods, risk perceptions, information - acquisition habits, and living expectations. At the same time, we also need to restructure our content system, product system, and organizational approach around long - term customer value.

We need to move from one - time delivery to a business model based on long - term trust relationships. Only by starting from this origin can the subsequent changes in the organization, capabilities, and service model truly make sense.

II. Adapt to the Reconstruction of the Industry by AI

Will AI bring a revolution to the real estate service industry?

My core judgment on this matter is not about "whether AI will replace humans", but rather: AI is reconstructing the underlying logic of this industry. In the New Year letter, we put forward a basic judgment: AI cannot be ignored, and humans cannot be replaced. What this statement implies is that AI will weaken low - value, homogeneous labor, while the value of judgment, explanation, coordination, and trust will be magnified.

This industry won't be simply replaced by AI because it has two inherent characteristics:

First, it's difficult to fully express the demands. Many people can't precisely describe what they need at the beginning. Although they say "I want to buy a house", what they actually need to solve might be hidden demands such as children's schooling, changes in family structure, commuting convenience, improvement of living conditions, or even emotional stress.

Second, the supply is highly non - standard. A house is not a fully standardized and commercialized product. Its suitability, price, risk, substitutability, and the seller's expectations all carry a high degree of uncertainty. That's why real estate transactions are never a simple price - comparison behavior, but a process of continuously coordinating cognition, emotions, expectations, and responsibilities.

Therefore, what AI brings is not simply "replacement", but will give rise to more refined professional divisions, such as buyer consultants, seller service providers, cloud butlers, school - district experts, loan consultants, community consultants, etc. They will provide deeper, more accurate, and higher - quality support around different scenarios.

This also means that the role of real estate agents will change fundamentally.

In the past, the value of real estate agents was mainly reflected in information connection and transaction promotion; in the future, real estate agents will increasingly transform from "information intermediaries" to "trust - based service providers", relying on their ability to understand customers, explain complex problems, organize multi - party cooperation, and provide professional advice to gain long - term trust from customers. Those who can use AI to hand over standardized work to the system and focus more of their energy on judgment, explanation, coordination, and taking responsibility are more likely to become high - value service providers.

The value of excellent service providers will be further magnified by AI. For our organization, the question is not "whether we have AI capabilities", but "whether we can organize people and whether we can organize people and AI together".

For Beike, this is not a smaller opportunity, but a bigger one.

Beike will more actively use AI to upgrade itself into an industry foundation for living services: on the one hand, making information, matching, processes, and cooperation more efficient; on the other hand, making transaction responsibilities, performance guarantees, and service delivery more reliable.

I believe that in the future, a truly competitive platform is not just one that has AI, but one that can integrate AI and professional service providers to win customers' trust. What determines how far a platform can go in the future is whether it can truly achieve: Equip service providers with AI and win trust with professionalism.

III. Reshape the Collaborative Ecosystem

In Beike's first phase, it was able to change the industry thanks to collaboration. The ACN real estate agent cooperation network, real housing sources, and platform collaboration gave real estate transactions a foundation for large - scale cooperation for the first time, making the originally scattered and inefficient transaction relationships operate on a more transparent platform. This is a very important starting point for Beike and also the first real - sense collaborative upgrade in this industry.

However, today, with the changing consumer demands and the underlying reconstruction of the industry by AI, such collaboration is no longer sufficient.

In the new collaborative ecosystem, the store will be the most important minimum business unit. We will position the store as a "community housing service station", which not only undertakes transactions but also provides a series of long - term services around the family living scenario.

One of the most important responsibilities of the Beike platform in the future is to continuously empower the stores. Every platform position should answer the question: Can we make the stores stronger in serving consumers, managing housing sources, and providing community services?

The ACN must be upgraded. In the past, the ACN was more about cooperation around a single transaction; in the future, the ACN will increasingly be carried out around the professional division of different roles. Those who are better at understanding customers, providing advisory services, and helping consumers make decisions will move more towards the buyer side; those who are better at managing housing sources, understanding homeowners, and promoting the sale of housing sources will move more towards the seller side. This is not necessarily a mandatory division, but more likely a result that naturally emerges in practice.

In the future, those entering the ACN will not only be real estate agents. Consultative service providers facing customers, professional service providers for special issues such as schools, communities, loans, and policies, service providers for maintaining long - term entrusted relationships with homeowners, and even new collaborators formed around different scenarios such as home decoration, leasing, asset management, and community services may all join. The future ACN will not just be a "cooperation network among real estate agents", but will become a cooperation network formed around the long - term value creation for consumers and homeowners. It will connect not just a single transaction, but a whole set of living services.

The upgrade of the collaborative ecosystem will ultimately be reflected in the upgrade of the distribution mechanism. We need to form a new mechanism that is more suitable for different roles, different contributions, and different service cycles, so that those who truly create value can get more reasonable and long - term rewards.

IV. Reform the Structure: Return to the Organizational Form of Creating Value

After 24 years, we have inevitably contracted the "big - organization disease": the departmental barriers are getting thicker, processes take precedence over common sense, and the complex stacking of indicators masks the real value creation. It seems like management, but in fact, it's internal strife; it seems like the pursuit of efficiency, but in reality, it's for self - operation, getting farther and farther away from consumers.

We will further streamline various indicators, enabling those who truly create value to get closer to consumers; allowing all capabilities and resources to reach the front - line directly; and making the organization revolve around consumers, being agile and flat.

All managers, especially front - line managers, must go deeper into the front - line, get in touch with real estate agents and consumers, and directly participate in the business. In the past, we were better at managing "ten thousand houses, ten thousand customers, and ten thousand people"; facing the future, we need to be able to truly serve "one house, one customer, and one person".

Our services do not happen in reports or in the reporting chain, but in the hesitations of each specific customer and the judgments of each specific house. Can our managers explain the neighborhood and the house well? This is a hundred times better than repeated presentations and constant number - crunching.

The roles of the group and the COE also need to be redefined. They should not just be departments that support internal operations and put forward requirements, but should become departments that empower Skill: precipitating the problems in real front - line scenarios and the methods from historical experience into capabilities, and then giving these "resources and weapons" to the front - line, becoming professional departments in the AI era.

The governance structure, cadre positions and responsibilities, and assessment incentives will all be rewritten. We will set up Chief Customer Officers and write "customer" into the names and responsibilities of a series of management cadre positions, so that cadres have a stronger sense of direction and mission, knowing who they are serving every day. In the future, incentive resources will flow to those who create customer value, build long - term capabilities, and help the organization move towards the future.

We will put forward higher requirements for management cadres. Next, we will strengthen the construction of the cadre system, enhance compliance and supervision capabilities, safety governance, and upgrade cultural values. Only when those who truly create value are recognized and those who break the rules and damage trust pay the price can the organization be full of integrity.

V. Make Our Existence More Meaningful

When talking about the transformation today, a colleague asked me how confident I am