Fangdd Network Group Ltd. (DUO): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a company navigating the choppy waters of China's property sector, and honestly, the numbers from the first half of 2025 tell a fascinating, if slightly complicated, story about Fangdd Network Group Ltd. While their revenue jumped 45.3% to RMB203.4 million and their closed-loop GMV hit RMB8.0 billion, that sharp drop in gross margin to 9.1% signals real pressure on their core transaction model. It's clear their big bet-bolstering the SaaS tools for real estate digitalization and making that US$34.32 million AI asset buy in October-is the key to their future Place and Promotion strategy, moving beyond simple brokerage fees. To see exactly how their Product, Place, Promotion, and Price are set up to handle this margin squeeze and drive that growth, you'll want to dig into the full breakdown below.

Fangdd Network Group Ltd. (DUO) - Marketing Mix: Product

The product offering from Fangdd Network Group Ltd. centers on the digitalization of real estate transactions within China, fundamentally delivered through a suite of technology-enabled services. The core product architecture is built upon SaaS tools (Software as a Service) designed to streamline the entire property lifecycle for participants in the ecosystem.

Fangdd Network Group Ltd. operates as a customer-oriented property technology firm, leveraging mobile internet, cloud computing, big data, and artificial intelligence technologies to provide its solutions. This forms the basis of its O2O platform (Online-to-Offline), which connects developers, brokers, and property seekers in a unified environment. For the first six months ended June 30, 2025, the total closed-loop Gross Merchandise Volume (GMV) facilitated on this platform grew by 27.3% to RMB8.0 billion. The overall revenue for H1 2025 increased by 45.3% year-over-year, reaching RMB203.4 million (US$28.4 million).

The product suite is characterized by modular solutions powered by AI, cloud, and big data, offering specialized tools for different user segments. The company's offerings include specific platforms aimed at agent efficiency and transaction management.

• Property Cloud: A software as a service solution specifically for real estate sellers.
• Duoduo Sales: A tool providing real estate agents instant access to marketplace functionalities for on-the-go transactions.
• Duoduo Cloud Sales: Connects agents to the property database and buyer base for sourcing, managing, and completing transactions online.

A significant strategic move to enhance the technology underpinning the product was the strategic acquisition of AI technology assets. On September 30, 2025, Fangdd Network Group Ltd. announced an agreement to purchase certain artificial intelligence technology assets from a British Virgin Islands company for a purchase price of US$34,320,000. This transaction is explicitly part of the Company's continuous strategy to expand into technology-enabled real estate management.

The financial structure of this acquisition includes potential performance-based incentives. The seller is entitled to an earnout payment for each calendar year ending on December 31, 2025, December 31, 2026, and December 31, 2027, calculated as an increase in total revenue for the given year multiplied by a ratio of 20% for 2025, 25% for 2026, and 30% for 2027, respectively. These earnout payments are payable by the issuance of the Company's Class A ordinary shares.

The overall gross margin performance in H1 2025 reflects a shift in the revenue mix. The gross margin for the six months ended June 30, 2025, was 9.1%, a decline from 12.5% for the same period in 2024. This compression was attributed to value-added services, which saw a lower contribution to H1 2025 gross margin. Despite this, the gross profit for H1 2025 increased by 5.7% to RMB18.5 million (US$2.6 million) from RMB17.5 million in H1 2024.

Here's a quick look at the key product-related financial metrics as of H1 2025:

Fangdd Network Group Ltd. (DUO) - Marketing Mix: Place

You're looking at how Fangdd Network Group Ltd. (DUO) gets its digital real estate services to the customer base. The distribution strategy centers on making its technology accessible where property transactions happen.

Primary market is the Chinese real estate sector.

The entire distribution effort is aimed squarely at the People's Republic of China's property market. The scale of transactions facilitated by the platform gives you a sense of the distribution reach. For the first half of 2025, the total closed-loop Gross Merchandise Volume (GMV) facilitated on the Fangdd Network Group Ltd. platform reached RMB8.0 billion (US $1.1 billion ). This figure represents a 27.3% increase compared to the RMB6.2 billion recorded in the same period of 2024. This growth in facilitated volume is the direct measure of distribution effectiveness within the target market.

Digital distribution via mobile application and web platform.

Distribution is fundamentally digital. The company provides its services through a proprietary online ecosystem. This includes the use of a mobile application and a web platform, which serve as the primary touchpoints for agents and, indirectly, for property seekers. The revenue generated through this digital channel for the first six months of 2025 was RMB203.4 million (US $28.4 million ). This revenue saw a 45.3% year-over-year increase for the period ending June 30, 2025.

The operational scale underpinning this digital distribution can be summarized:

• Total closed-loop GMV (H1 2025): RMB8.0 billion
• Revenue (H1 2025): RMB203.4 million
• GMV Growth (H1 2025 vs H1 2024): 27.3%
• Revenue Growth (H1 2025 vs H1 2024): 45.3%
• Cash and equivalents (as of June 30, 2025): RMB188.1 million

O2O model integrates online platform with offline agent networks.

The Place strategy relies heavily on the Online-to-Offline (O2O) model. This means the digital tools are married to a physical network of real estate agents who execute the final steps of the transaction. The platform offers tools like Duoduo Sales and Duoduo Cloud Sales to these agents, giving them instant access to marketplace functionalities and property databases, allowing them to conduct transactions on the go. The success of the closed-loop GMV is a direct result of this integration.

Platform facilitates transactions across major urban markets in China.

The digital infrastructure is deployed across key metropolitan areas within China. While the exact number of covered cities isn't explicitly stated, the substantial GMV indicates deep penetration across major urban markets where property transactions are concentrated. The platform's ability to handle transactions online, supported by agents on the ground, defines its geographic distribution capability.

Focus on in-depth cooperation with reputable developers.

A critical component of ensuring product availability and quality in the distribution chain is the partnership strategy. The growth in closed-loop GMV for the first half of 2025 was attributed, in part, to the Company's strengthened focus on development of its core projects and in-depth cooperation with reputable developers. This focus ensures that the inventory being distributed through the digital and O2O channels is sourced from established and reliable entities within the Chinese real estate sector.

Here is a quick look at the financial scale related to the platform's distribution activity for the first half of 2025:

Fangdd Network Group Ltd. (DUO) - Marketing Mix: Promotion

Promotion for Fangdd Network Group Ltd. (DUO) centers on communicating technological advancement and performance-driven results to stakeholders, supported by measurable investment in marketing channels.

Strengthened focus on core projects and developer partnerships is a key driver explicitly cited for recent platform success. The total closed-loop Gross Merchandise Volume (GMV) facilitated on the Company's platform increased by 27.3% to RMB8.0 billion (US$1.1 billion) for the six months ended June 30, 2025, compared to RMB6.2 billion for the same period in 2024. This growth was attributed, in part, to the Company's strengthened focus on development of its core projects and in-depth cooperation with reputable developers. This focus acts as a form of promotional messaging, signaling stability and quality to the market.

The investment in digital outreach is quantifiable through operating expenses. Sales and marketing expenses for the first half of 2025 rose significantly to RMB3.9 million (US$0.5 million) from only RMB0.5 million for the first half of 2024. This increase was stated as being primarily due to the increased marketing costs in order to support revenue growth. This direct spend supports the digital promotion efforts.

Leveraging AI and big data to enhance platform utility is a major theme in recent corporate communications, which serves as a high-level promotional narrative. This was cemented by the September 30, 2025 announcement that Fangdd Network Group Ltd. entered an agreement to purchase certain artificial intelligence technology assets for a purchase price of US$34,320,000. This transaction is part of the continuous strategy to expand into technology-enabled real estate management, positioning the platform as technologically superior.

Public relations efforts tied to strategic moves like the US$34.32 million AI asset acquisition provided a significant, high-profile promotional event late in 2025. The announcement of the US$34,320,000 asset acquisition, which positions Fangdd as 'Powered by AI System,' was followed by a related announcement on October 24, 2025, regarding a US$34,320,000 Convertible Note Issuance to satisfy payment obligations under the asset purchase agreement. This financial maneuver and the accompanying press releases are central to the company's external messaging regarding its technological pivot.

Digital marketing to drive the 27.3% growth in closed-loop GMV is supported by the increased sales and marketing spend, which saw a year-over-year increase of 680% in H1 2025 (from RMB0.5 million to RMB3.9 million). While the 27.3% GMV growth is the result, the increased marketing spend is the direct promotional input intended to achieve it. For context on other digital promotion tactics, a previous structure for referral programs included a Referral Bonus of RMB 150-500 per successful transaction and a Total Annual Referral Budget of RMB 9.7 million, with a Conversion Rate of 6.3% of referred users completing a transaction.

Here's a quick look at the key promotional investment and result metrics from the first half of 2025:

The company's promotional messaging appears to be heavily weighted toward technology adoption and performance validation, as seen in the following areas:

• AI Asset Acquisition Cost: US$34,320,000.
• H1 2025 Revenue Growth: 45.3% to RMB203.4 million (US$28.4 million).
• H1 2025 Sales & Marketing Expense Increase: 680% year-over-year.
• AI Earnout Structure: Ratios of 20%, 25%, and 30% of revenue growth for 2025-2027.

Fangdd Network Group Ltd. (DUO) - Marketing Mix: Price

The pricing strategy for Fangdd Network Group Ltd. (DUO) centers on a transaction commission-based revenue model, supplemented by software-as-a-service (SaaS) fees for its agent network. This dual approach aims to capture value from both transaction volume and technology adoption.

For the first half of 2025, the company's top-line performance showed significant growth, with revenue increasing by 45.3% to reach RMB203.4 million (US$28.4 million). This revenue was generated while the Closed-loop GMV (Gross Merchandise Volume) facilitated on the platform reached RMB8.0 billion (US$1.1 billion) in H1 2025. However, the pricing structure's effectiveness in terms of profitability saw a contraction, as the gross margin declined to 9.1% in H1 2025, down from 12.5% year-over-year.

Here are the key financial metrics reflecting the pricing realization for the first half of 2025:

The technology component of the pricing involves a tiered freemium SaaS model directed at real estate agents. This structure allows agents to access essential tools, with higher tiers offering more advanced functionality. An example of the pricing for a premium tier is the Enterprise offering at ¥699 monthly.

The core revenue stream is tied directly to transaction success, which is reflected in the commission rates:

• Transaction commission-based revenue model.
• Average residential transaction commission estimated at 1.5% to 2.5%.
• Tiered freemium SaaS model for agents.
• Example SaaS tier: Enterprise at ¥699 monthly.

The company generates the majority of its revenue from the Base commission from transactions in China. The overall pricing strategy balances capturing a percentage of high-volume transactions with recurring subscription revenue from its software offerings.