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5dbfb2e0e85b1 The Catalyst Case Study PDF
5dbfb2e0e85b1 The Catalyst Case Study PDF
TRANSFORM
TRIUMPH
CASE STUDY
Industry
Co-living
/Co-Living/
NOUN
Co-living is a modern form of housing where residents share living space
and a set of interests, values and/or intentions.
As per a recently released report by JLL and FICCI, the shared rental market
consisted of 3.6 million beds with co-living penetration being ~2.5%. In 2023,
these numbers are estimated to swell up to 5.7 million beds with co-living’s
penetration going up to 8.3%. Estimated to grow at 17% CAGR in next 5
years, co-living will be an INR 1 trillion market opportunity by 2023.
GROWTH DRIVERS
The co-living space is growing at a fast pace because of the following
growth drivers:
1. Millennial Population and their Outlook on Home Ownership
Fueled by rapid urbanization, which is expected to increase to 40% by
2030 from ~30% in 2001, a large part of millennial population will keep
finding themselves looking for accommodation in a new city. Moreover,
millennial’s outlook on home ownership is vastly different from previous
generations.
While earlier generations moved to the peripheral areas to fulfil their
dreams of owning a home, the young population will not settle. While
choosing their accommodation, connectivity to their work environment,
security, neighbourhood amenities and a vibrant community are some of
the factors that influence their decision making process. In addition, a
migrant workforce will always lean towards rental space in light of the
vulnerability connected with the length of their stay and investment
cost. The result an expanded interest for rental accommodation.
Keeping in mind the needs of youth, OYO LIFE gives the freedom and space they
need and also eliminates the hassles of dealing with brokers, brokerage, lock-in
periods, houses with little or no amenities, maintenance charges, housekeeping
services, and security deposits, which can be a costly affair. Also, there’s no
lock-in period which ensures no hassles in case of a transfer to a different city in
three months or in case of a job change.
Depending on the location, properties have the option of private rooms, double
occupancy, triple occupancy and quadruple occupancy. Each property has an
on-call building supervisor who stays in the property and is responsible for the
maintenance of the property. Modern and artsy decor is another feature of the
properties along with amenities like WiFi, TV, DTH, washing machine,
refrigerator, RO, AC, weekly housekeeping etc.
Broadly speaking, there are two target customer groups - professionals and
students. Both professional and student co-living spaces were operated
similarly, however, the student housing segment is now being looked at
differently due to difference in the customer decision making journey.
Parents have a big say when it comes to student housing, along with an
increased focus on safety, security and living standards.
2. What's your one Big Business Idea which can help OYO LIFE grow at an
accelerated pace?It can be around new customer segments, products,
geographies, marketing campaign etc. While defining the Big Business
idea– call out the clear objective, idea, impact and execution strategy.