On March 29, KE Holdings Inc., a technology-powered integrated platform for housing transactions and services, issued multiple notifications and a company-wide letter announcing the establishment of a Group Transformation Committee and five specialized management committees. Significant adjustments were also made to the group's functional lines and city-level organizational structure. This represents the most extensive organizational restructuring since the company's inception. Specifically, the leading property transaction platform has decided to undergo a profound transformation, shifting from a transaction platform to a community living service platform. Concurrently, a Group Transformation Management Committee was formed. This committee will be led by the company's co-founder, Chairman, and CEO, with the aim of restructuring the business framework, performance evaluation, incentives, and resource allocation around evolving consumer demands.
The real estate sector remains in a period of deep adjustment. Consequently, the actions of industry leaders are under intense scrutiny, as they not only indicate the future direction of these companies but also shed light on the potential trajectory of the industry. On March 29, the company's leader published a company-wide letter titled "KE's Next Phase: Consumer-Centric Organizational Rebuilding." The letter contained substantial information, revealing the launch of a strategic transformation involving upgrades to the service model, organizational changes, and reforms within its Beijing Lianjia unit. It clearly stated the company's deep transition from a transaction platform to a community living service platform.
Regarding the rationale for this transformation, the CEO stated in the letter: "Consumer demands have fundamentally changed. What consumers need is not just more information, but more authentic information, more neutral explanations, and especially definitive solutions. We must shift our core focus from 'transaction' to 'residential decision support' and 'long-term service relationships.'" The letter has outlined the broad direction for KE's transformation: upgrading the community living service model. This involves embracing the dual opportunities presented by shifting consumer demands and the restructuring of the industry's foundational logic by AI, helping agents transition from "information intermediaries" to "trusted expert service providers," and changing the company's service model from "transforming how the industry connects" to "transforming how the industry serves."
It is noteworthy that this transformation direction aligns with the adjustment trends in the real estate sector. A key national urban work conference held in July 2025 outlined the future direction for urban development, emphasizing the optimization of modern urban systems and the construction of comfortable and convenient livable cities, reflecting the public's aspiration for a better life. Future urban development requires not only property developers to build "good houses" but also other entities to provide "good services."
Following the release of the company-wide letter, KE Holdings immediately restructured its management framework, announcing the formation of the Group Transformation Management Committee. This committee, led by the CEO, is designed to reshape the business architecture, performance metrics, incentives, and resource flow around fulfilling consumer needs. A key highlight of the restructuring is the "deep involvement of management in frontline operations." The CEO emphasized the need to upgrade frontline customer service and functional expertise, explicitly incorporating "serving consumers" into the core responsibilities of managers at all levels. Executives are required to move from back-office roles focused on reviewing reports, setting targets, and enforcing controls to directly serving consumers on the front lines. Concurrently, ineffective performance indicators for frontline service personnel will be eliminated. The focus will shift from short-term transaction volume to dimensions like customer satisfaction, service quality, and long-term value creation.
Simultaneously, KE's functional middle and back offices will undergo a parallel transformation, evolving from traditional "control centers" into "capability factories." They will concentrate on building capabilities, reducing inefficient managerial overhead, and ensuring that reusable capabilities and group resources are directly channeled to the service front line.
As part of this transformation, the company also established a Beijing Lianjia Strategy Committee to integrate brokerage, leasing, and home renovation businesses. This aims to transform housing services from traditional one-off transactions into a family lifecycle service model. The CEO stated that henceforth, KE will not focus solely on a single transaction but will prioritize long-term service relationships within a community, for a family, or around a residence, replacing short-term deals with long-term companionship and rebuilding the service system around customer living needs.
Reflecting this approach, in building the new management structure, Beijing Lianjia appointed three Chief Customer Officers for the first time, who will report directly to the CEO. Under these Chief Customer Officers, a three-tier management structure comprising Major Customer General Managers, Regional Customer Directors, and Community Customer Managers has been established. All these management titles place the customer at the forefront, with management duties focused on serving consumers.
Under the new service model, KE will position its physical stores as "Community Living Service Stations." These stations will not be driven by short-term transaction closures but will be community-rooted hubs offering comprehensive services including property transactions, leasing, renovation, property management, and asset management. This shift is also reflected in KE's financial reports. Data shows that in 2025, the proportion of revenue from non-property transaction businesses, such as affordable leasing and home renovation, reached a record high of 41%. The CEO indicated that these businesses, along with newer initiatives, form the foundation and confidence for upgrading the community living service model. From the perspective of living services, scale is no longer the measure of success; certainty is.
Over the past year, several property developers have adjusted their organizational structures based on industry changes and their own business development needs. Since the beginning of the year, multiple developers have initiated organizational and personnel adjustments. Within the industry, it is widely believed that during this period of deep industry adjustment, seeking internal transformation has become the primary consensus for property developers pursuing security and growth.
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