Category: Money tips Release Date: 2007-04-13
"No Who will win long hair power!" Listed a half months later, Wing-lok, Chairman Chen accept the "Daily Economic News" exclusive interview. Paradise in the home appliance chain industry, is currently ranked third. Chen asked, "Do you think this marathon, everyone went to the last?"
Half a month ago, the Wing-lok, listed in Hong Kong. Complete listing burst busy, Chen returned to base camp is located in Nanhui, Shanghai Yongle, in a three-storey medium-sized villa, 1.8 meters tall, he busy in various conference rooms, presided over the decision-making.
Paradise in the home appliance chain industry, is currently ranked No. 3: public financing later than Gome and Suning year; in the Yangtze River Delta, but have not reflected in its dense fabric-point multi-sector involvement in non-chain management, market performance has always been tepid.
"No Who will win long hair power!" Listed a half months later to accept the "Daily Economic News" interview, the Chen case of rebuttal. In Chen's eyes, could anyone see this is a marathon finish line.
"One to go is the boss, unrealistic" For Chen, in which he likened to marathon competition, little difficult to maintain the peace of mind.
In recent years, the scale of expansion of home appliance chain industry and wealth accumulation model has been concern, so that Yongle was forced to work with the industry boss, the younger comparison: Why Gome and Suning in accelerating the expansion of the Yongle not? Why Gome and Suning large-scale promotional price cuts, while the Yongle not?
Thin and lean, solemn eyes of Chen, answering questions, often dished out the same sentence: This is not so simple.
Yongle Finance 1.026 billion Hong Kong dollars after Gome, Suning have announced the expansion of the future in 2035 figures, Chen talks about the future, the answer is still vague: "We will follow our usual business style, a strong increase market share."
Industry experts and the media frequently heard question: Without the speedy completion point of the national fabric, for chain industry, is equal to wait for their demise. Chen have to laugh it off: It's really wait and see. Chen's calculations is that not all indicators of the scale.
After the Yongle raise funds there are many things to do: South China market, in-depth; north, central market development; right acquisition target considerations choice; product structure adjustment and the upstream manufacturers to continue to game and so on.
Recently, the Yongle in Beijing to open three new stores, but no increased advertising investment. Chen to Beijing store's mission is to advance the North China market, test the water. This three stores in the Beijing market somewhat deserted, Chen said "other people to enter this market for 10 years, I have one to go is the boss, unrealistic."
For the industry to another "crazy" price reduction initiative, in his view, industry consolidation, only the appliance store at the same time the risk of buying back, have a reasonable price. "You can not sell back, sell poorly, they can exchange them, to find that they make up the difference in value plunges all the risks are suppliers." Thus, the channel will have nothing to fear in terms of prices as a means of perfect competition.
Chen refused to talk about a price war, in his view, is irrational, and is bound to change.
Chen said that he was doing a rational attempt. More recently, Chen bought apple mp3, mp4 sales in China. This way the original buyout income slotting allowance, the deferred payments is different from Wing-lok, a cash transaction. "Price and global synchronization, there is no threat of pressure." Chen said, "This is a challenge to the future viability of the enterprise will focus on commodities and consumers, rather than on the price with the supplier game."
"Without the development of a template" In the Yangtze River Delta, Yongle has a market operation at all levels of experience. But Chen believes that the expansion model, the "Yangtze River Delta" model can not be copied across the country.
And the country the United States in the country, "4 enclosure, point-like proliferation" is different from the expansion of Yongle use block mode: in a region dense cloth-point, and then enter the next area. Chen advantage is that the massive in-depth two points, first, integration of logistics and distribution, and second, 123 the market at the same time advancing the overall development of the region. But precisely because of this, Wing-lok, a long time to give people the impression of a regional chain of stores.
Even if adequate funds raised from listing, Chen will not rush into the shop dense in several areas.
Chen stressed that the preliminary analysis of regional markets. In December 2003, Wing-lok, mergers Guangzhou East-Ze, for the first time outside into the Yangtze River Delta region. Today, South China market is the second largest block area Yongle. Chen was to determine, particularly in Guangdong in southern China, like Dongguan, Foshan, Shunde, a city like it is between the range of 23 market areas in South China's biggest market. As the third largest city of Guangzhou, Chen believes that its purchasing power is far and Beijing and Shanghai. Therefore, he will not use the layout in Beijing. "Every place has different stores strategy, no development of the template." Xiao said calmly.
In the expansion of the pathway, as opposed to a big shop, Chen is more inclined to mergers and acquisitions. In April of this year before a monthly rate of Paradise "annexation" of local businesses, to Kwong Yuen, Jiangsu, Nanjing Lantern, Chengdu Department Store (electrical) reverted under their command; to July, mergers and acquisitions in Henan Tongli and Tsann Kuen 3C (channel plus currency). Yongle This from the "Yangtze River Delta" chain store's image.
Chen hope to achieve through the merger a plus 1 is greater than 2 results. Do not worry of the Chen set three pole, first of all Yongle wish to enter this area; second to see if it is not a strong local brands; third is the team's culture, corporate values. Not long ago, he denied rumors of mergers and acquisitions, Wuhan Industry and Trade, "Wuhan is basically a disorderly market." As the price war is still in the pure level, the region has not yet adopted by Chen considerations.
"Now people are worried fool" Sometimes, a number of phenomena within the industry Chen could not see do not understand. "Why am I mad at you when, followed by crazy?"
By the end of October, Chen has taken a very courageous move he claims will be the first big store Yongle Shanghai Pudong New World store moved. The store has special significance for the Wing-lok. In 1999, the Yongle leased nearly 1 million square meters of the New World stores, followed by six years, the store witnessed the Paradise, "from small to large" growth. Yongle Marketing Manager had an interview revealed that the shop rent from the earliest risen to 26 million yuan every year six million yuan. In recent years house prices doubled in four times, Yongle has been reluctant to give up.
However, when the rent rose to 37 million this year, when Chen decided to let go. "The store's annual sales of 10 billion, is the highest output of a single shop." His "Daily Economic News" said, "but we have to consider the costs." By contrast, Gome, Suning shop in Zhongshan Park, the rent is 38 million yuan. According to United Network for Business 17 major Chinese home appliance chain enterprises in 2004 sales statistics, data, Yongle-store average sales reached 1.5 billion, while the country of beauty and Suning's single-store average sales of 105 million and 115 million. "I do not understand why this industry, the cost is so high how to provide value-added services?"
Pudong New World stores were moved to the melting of the way across the mall, an area of more than 50% expansion of the New World stores, rent costs less than the original store.
"From this we can see the difference between Paradise and others." Chen stick to his own actuarial, "Now hurry people are fools, is certainly a waste of resources, input-output entirely unreasonable."
Bottlenecks faced by the profits of the traditional household appliances, listed after the Wing-lok, there is no financing involved in other sectors of the investment plans. Towards the end of the interview, always actuarial and prudent Chen's answer was simply, and clear: "I will never enter the other sectors, except I do not do home appliance chain."
Chen in a marathon in the uniform forward. "The real go in the end only a handful of enterprises." Chen's mouth revealing a hint of imperceptible smile, he asked "Daily Economic News", "Do you think this marathon, everyone went to the last?"
