The Rebirth of Wealth

Starting on the 15th, Li Dong frequently entered and exited major hotels.

At first, everyone didn't care.

But soon, there was news in the industry, and Li Dong reiterated the previous exclusive cooperation matters.

As early as 2008, Li Dong once mentioned the exclusive cooperation at a real estate developer gathering.

However, at that time, the strength and fame of the distance were not enough. When this proposal was made, almost no one on the scene agreed.

In the later period, Yuanfang was going to launch a boutique supermarket, but some real estate companies agreed to cooperate.

However, the exclusive cooperation agreement on the commercial plaza has never been able to make it.

Even if Longhua and Longhu had reached a settlement agreement with Yuanfang before, it was not an exclusive agreement. The commercial plazas developed by Longhua and Longhu, except for some of them being settled by Yuanfang Supermarket, are still inviting investment.

This time, in July 2009, Li Dong reached the top of the world's richest man's throne, and he entered the world's top 500 in the distance, and began to impact the status of the top ten retailers.

The distance at this time is not the same as last year.

At this moment, Li Dong mentioned the matter of exclusive cooperation again, and the effect was quite different.

Before the charity night has begun, there are already six or seven real estate companies that have begun to discuss specific cooperation matters with distant places.

These real estate companies may not be top-notch, but Li Dong selects real estate companies that develop commercial squares in some second- and third-tier cities.

In the commercial square of the core area of ​​the first-tier cities, these developers must be either powerful or jointly developed by multiple enterprises.

Moreover, it is more difficult to sign exclusive cooperation agreements in first-tier cities. After all, the core commercial squares in these cities are not worried about the issue of investment and lease.

The second- and third-tier cities need to be slightly weaker, and even developers must be weaker.

Talking about cooperation with these companies, the distant place still has the advantage.

...

Li Dong kept talking and working with these real estate companies for several days.

Even if some people didn't understand it at first, they would understand it later.

No one at the helm of a large enterprise, whether it is a state-owned enterprise or a private enterprise, is a fool.

I didn't understand it at first, not because I didn't understand it, but I didn't expect it.

Monopolize the commercial square!

This idea, in the current business world, in the current retail industry, almost no one really thought about this possibility.

Without him, the price is too high!

There are 334 prefecture-level administrative regions in China.

Regardless of the county-level administrative area, if monopoly prefecture-level administrative area, what is the concept of monopoly?

In the distance, at least 80% of prefecture-level areas must be monopolized.

And a prefecture-level administrative area generally has a main urban area, a prosperous area, a commercial area ...

In a prefecture-level area, if you want to complete the monopoly of core commercial squares, on average, for each prefecture-level city, the minimum standard must also be settled in more than three core commercial squares.

334 prefecture-level administrative areas, at least nearly 1,000 shopping centers in the distance!

It's a shopping mall, not a supermarket, and it's not a convenience store!

In the industry, shopping malls are actually one level higher than hypermarkets, but even if hypermarkets are the standard, supermarkets above 7,000 square meters can be considered hypermarkets.

1000 hypermarkets with more than 7000 square meters, what is this concept?

In the second half of 2004, Li Dong rented tens of thousands of square meters of floor space in Longhua Square in Pingchuan to open a hypermarket. At that time, the various early expenses plus the first year's rent cost more than 10 million!

Of course, at that time, the distant reputation was not obvious, and various expenses were more expensive.

At this point in the distance, rents are generally much lower for long-term rents, and there is a longer rent-free period.

In addition, there are many suppliers in the distance, and the payment cycle has been extended a lot, and there is no need to invest too much in the early inventory.

But the current rent is much higher than in 2004.

Converted, in fact, the cost is about the same.

A hypermarket of more than 7,000 square meters must invest at least 15 million yuan, which is the minimum standard.

After all, what the distance wants is the commercial core area. In fact, there are 15 million in some third-tier cities, and it is normal for the first- and second-tier cities to double several times.

If you want to win 1,000 hypermarkets in the core area, you must prepare a minimum of more than 20 billion yuan for investment.

20 billion is the minimum standard, and 1000 is also the minimum standard.

More than 300 cities and 1,000 hypermarkets want to complete the monopoly?

In 2008, according to the statistics of the Shanghai Stock Exchange, there were more than 200 hypermarkets in one place!

Can't the other companies that 3 hypermarkets in a city want to force?

That can only be said that Li Dong thought too much!

If he really wants to cut off the expansion of other large enterprises at the root, this scale has to be tripled, which is probably almost the same. After all, some third-tier small cities can't have so many big stores.

In other words, if you want to complete this plan in the whole country, except the first-tier cities, it is almost enough to win 3000 hypermarkets in the distance.

And the amount of investment needs about 60-80 billion.

It does n’t sound like much, but these are just the pre-investment, post-employee expenses, corporate expenses, utility bills ...

This series of things are not counted!

Including warehouses, distribution centers, these things are okay to rent, and if you want to complete the layout yourself from afar, this investment scale will more than double!

In total, the amount of investment should be at least 150 billion!

150 billion investment in supermarkets?

If you add the original system of the distant place, a distant retail group alone, the net asset scale in China can reach about 200 billion, distribution centers and warehousing are counted separately and included in the logistics group.

What is the concept of spending more than 200 billion yuan to invest in a retail enterprise?

Investment does not represent market value, these are two very different concepts.

A supermarket with an investment amount of more than 200 billion yuan. In fact, if this 200 billion yuan is converted into data of a listed company, it can be regarded as the shareholder ’s equity. Of course, the shareholders ’equity can also be called net assets, which means that the shareholders’ equity has reached More than 200 billion yuan.

Among today's retail groups, Walmart is a well-deserved world overlord.

How much did Wal-Mart shareholder equity have in 2008?

$ 60 billion! It looks like 400 billion yuan.

And Wal-Mart is a large-scale super retail group in the world, and from afar, China will invest 200 billion yuan in China. This crazy idea has not been considered by outsiders.

Once the distant place really wants to do this, when the performance in China's mainland is not up to expectations, then Li Dong is waiting to make a death.

After all, this cooperation is a leasing business, not a self-owned property acquisition.

With the increase in rents, the last profits made by Yuanfang Supermarket probably helped real estate developers.

Does this expansion make sense?

...

Does it make sense?

Such doubts arose several times in Yuan Chengdao's mind.

After Li Dong continued to negotiate with other real estate developers, Yuan Chengdao finally couldn't hold back and broke into Li Dong's office, asking this sentence.

"Does it make sense?"

Yes, Yuan Chengdao is hard to understand!

If Li Dong wants to expand internationally, even if he doesn't make money, he also recognizes it.

After all, in the international market, there is a blank in the distance, even if it does not make money, but in order to open the market, Yuan Chengdao feels bad, but also defaults.

However, in China, the distant place has achieved the status of the first overlord.

At this time, it was necessary to do such a thankless thing. In Yuan Chengdao's view, it really didn't make much sense.

Li Dong looked at Yuan Chengdao, who was angry in front of him, and smiled lightly for a moment: "Why doesn't it make sense?"

Yuan Chengdao was annoyed and his words were not polite: "Now, our retail market in China has already occupied a considerable market share!

In East China, apart from the Shanghai Stock Exchange, even the Shanghai Stock Market, our market share is well-deserved first!

In other regions, our business is also covered.

Earlier you said that you want to enter the southern market and expand your market share in the south. I can agree that you want to continue to increase our market coverage. I can accept this.

But now, what is the point of paying a high price just to complete the market monopoly in China?

Without profits, there is a vast market, is it necessary?

Also, with so much money, we do n’t have this ability. I know that you should use financing to make external financing.

At that time, we will have to pay these interest rates, coupled with high rents, and we may experience a loss.

If you do n’t make money, do n’t say, there is a loss, just to satisfy your vanity? "

Yuan Chengdao said it very directly. At this time, he couldn't help it, and rebuked: "Is it really good to monopolize?"

That's not necessarily true!

In today's monopoly industry, you can also see that without government support, many monopoly industries will have to pay for it!

Moreover, we are not a high-profit energy industry, but a retail industry.

Our profit margin is not high already, and now we need to expand without covering the cost and repeat the expansion and coverage in the mainland. Is this necessary?

These cooperative malls are lease contracts.

Once the contract expires and no further renewals are made, in fact we have nothing left.

That is to say, maybe ten years later, there may not be an increase in the distance, but began to decline.

During these ten years, was it used to satisfy the monopoly?

I do n’t even say that the government has other companies ’responses and attitudes. What about you?

This explosive growth and breakthrough is not what we need now.

Now, what we need is a steady fight.

As the real estate market picks up and rents rise, we can use this money to expand our proportion of self-operated properties.

At present, the proportion of self-operated properties in our distant retail is only about 14%. In the first two years, this proportion is not low.

But now, other companies are actually expanding this ratio. The proportion of self-operated properties of retail companies such as Gaoxin has even reached 20%. This data is still growing.

What about us?

Let's stand still and say that once we adopt the leasing model this time, the proportion of our self-operated properties will fall below 10%. Such a distance is the distance you want?

Yes, at that time, our revenue was the first, the scale was the first, and many things were the first.

But this kind of castle in the sky will collapse faster than everyone imagines.

I really have a hard time understanding, what was your original intention?

Once, when we wanted to expand, you suggested to expand the proportion of self-operated properties. At that time, our funds were so difficult that we were doing these things.

now what?

Now the group is having a better time. At this time, you have said that we have spent hundreds of billions of funds to complete the full coverage of our self-operated properties. I do n’t have much opinion.

But in order to expand the scale and the number of stores, you spend a lot of money to suppress opponents. I can't understand this point! "

Yuan Chengdao said more and more annoyed, watching the real estate market now more and more popular.

At this time, everyone seized the last opportunity and began to increase their own property ratio.

It's better to be far away. At this time, not only did it not increase, but a large amount of money was used to expand the number of stores.

Originally, the number of stores in the distance is not small. With Guomei, the number of stores in the distance may not be the first in China. The actual operating area is definitely the first in China.

It is already the first, and it is still expanding desperately. What is Li Dongtu?

Before he was planning to expand the international site, Yuan Chengdao was worried, although he felt that it was a little too far away, but he could understand, and really could understand.

Now, that is really incomprehensible!

Regarding Yuan Chengdao's dissatisfaction, Li Dong was also not angry, and smiled and said: "Sit down and say that you are very angry, and talk slowly about something, there is no need to hurry up."

The more he said this, the more angry Yuan Chengdao was, and he sat down angrily, and then stared at Li Dongdao: "If Mr. Li cannot give us a reasonable explanation this time, although Mr. Li is yours from afar, we have no right What changes are made, but we also don't want to be a failed professional manager.

I don't want to wear a hat that tossed a legendary company!

President Li has discussed cooperation with major real estate developers this time. You have also seen that although the outside world is concerned, almost no one can stop it.

why?

Just because no one else can understand!

With so much capital and so much energy, we can do anything else, even if I expand the international expansion, I can still cover it in China, I ca n’t understand it! "

Li Dong didn't hurry to speak, leaning on the chair for a while and silently said, "So let's put it this time, more than half of this plan is actually my selfishness.

Personally, I have always hoped to defeat the companies such as Bailian and Huarun, and these were my goals a long time ago.

However, it is difficult for these enterprises to defeat them by other means.

Only by eradicating their expansion from the roots and gradually encroaching on them can we hope to solve them completely.

Of course, from a selfish point of view, this is not worth the loss.

However, it's not just selfishness.

On the other hand, you said that after ten years, a large number of stores in the distance may be closed, and passive closure, the scale of the distance will be compressed.

Actually, how do you know that this is not the result I want? "

Yuan Chengdao froze for a moment, and Li Dongan opposite said with a smile: "So far, haven't you seen it?

Physical stores will not die, but with the impact of e-commerce, it will gradually decline.

This time will not be too long. Ten years is actually the limit.

Ten years later, some of our large retail groups will inevitably close some stores based on their current store coverage.

Therefore, I signed a ten-year contract with major shopping malls. At that time, whether it is active or passive, we can freely choose to close some stores.

In addition, you say that the scale is useless?

joke!

Larger scale, more revenue, more cash flow, more fixed assets ...

By that time, we will have more funds available.

Yes, the money is borrowed, but if there is no store expansion plan, who will lend you the money?

With this money, we can increase the proportion of our self-operated properties on a large scale.

In the next few years, our goal in China is no longer to expand, but to choose a reasonable layout and layout.

A few years ago, in order to expand, we opened stores everywhere, and the store overlap rate was actually very high.

But now, with thousands of more stores, plus Guomei and our own system stores, our number of stores will reach about 6,000.

This scale is indeed too huge!

On the basis of these 6,000 companies, we can choose with ease and select about 2,000 to 3,000 companies as our foundation for layout.

These stores can be operated by self-operated property model.

Where does the money come from?

Of course it comes from the retail group itself!

Even if the newly opened store does not make money, then what about?

As long as these stores are still open, it is actually equivalent to at least hundreds of hundreds of billions of more goods on hand, which can be used by us without paying interest.

Do you think I care about the profits of the supermarket?

Do you think that what I think is really suppressing other retail companies can't look up?

Am I so bored?

Everything I do is to lay the foundation for Yuanfang Group!

What is the concept of 3000 self-operated stores and stores?

Ten years later, supermarkets and stores are no longer open in the distance. These stores are rented out and sold. That is a trillion group!

And it ’s not as obvious as the mountains. It ’s not as conspicuous as real estate companies, and no one cares about it.

After all, we have more than 6,000 stores, and the proportion of our self-operated properties is about 50%. It is completely reasonable and reasonable. What's so strange?

And if we continue to do retail ten years later, then we are 100% self-operated.

Think about it for yourself. What are the advantages of a retail group that is all self-operated?

How do I let him let his rent rise, and what does it have to do with us?

I ca n’t wait for the rent to go up, and other retail companies have closed down, and we ca n’t.

No matter how shocking e-commerce is, it will not let physical stores die.

At that time, we are the only physical stores that can survive.

As for e-commerce, we still dominate.

In fact, I ca n’t wait to get to this point now, whether it ’s online or offline, whether it ’s impacting others, or whether we are impacting others offline.

We are silent online and offline, let other people die completely, no chance of resurgence.

Is such a thing not worth it?

Finally, by the way, let's increase our revenue and impact the world rankings. There is nothing wrong with it.

The only thing we have to do is actually not to lose money.

As long as we don't lose money, we are equivalent to more than 100 billion free payment, is it not good?

The bigger our scale is, the more our suppliers trust us. Now the payment cycle is three months, and it may be six months later.

Once it reaches six months, with our annual transaction volume, think about it for yourself, how terrifying!

With trillions of dollars in revenue, at least 800 billion in goods, and a half-year cycle, that is, we can free up 400 billion in money!

If we don't fall into the distance, we can use the money forever.

Light knows howl, light knows the benefits in front of it, but it does not know to think about it later.

What's wrong with not making money?

Not making money, in fact, we are making money!

How much do you think Wal-Mart really earns in the retail business?

Since retail profits are so low, why are these large groups expanding their mergers and acquisitions?

With that spare money, what's wrong with doing something?

Why expand?

It's been so long, how did you become the president?

Your task is not these, but consider how to increase the rent, increase the salary of the employees, and increase the interest, so that the group will not operate at a loss. This is what you should consider.

Shout at me?

My own group, can I still toss him to death?

Another point is also what you need to do, that is, the location layout, and then we selected some of the stores that need to be self-operated from the developers.

There are so many things you need to do, you never know how to use your brain.

By the way, there is also the issue of the extension of the supplier ’s payment cycle, which also requires you to consider, measure, and persuade them to agree.

You said, how many groups are waiting for you to do it?

If I do n’t say it, you wo n’t take the initiative to think about it?

Will it not take the initiative to share?

Just like you, and want to control the distance alone, go early!

Other companies can't do it, they can do it from afar, because I'm Li Dong!

I am there, then there is hope for success, I am not, can you do it? "

If it is an explanation in the front, it can be said to be abusive in the back.

Li Dong was also very annoyed at this time, staring at Yuan Chengdao fiercely and continuing: "Why? I think Li Dong is now outdated and can't keep up with the rhythm of you guys?

Still think that I will arrange orders, you are the core of the group?

Ask yourself, every time I give you the task, who will solve some of the core troubles?

Whether it is the acquisition of Guomei ~ www.wuxiaspot.com ~ to defeat Teng Xun or the expansion of the enterprise, the most troublesome thing is for me to solve!

Although it is also troublesome to execute and close, I admit that you all have a lot of credit, but Li Dong believes that he is worthy of everyone!

These are not your proud capital!

Of course, maybe it ’s because I did n’t explain it to you. As the president of the group, can you understand it if I say it every time?

This is the last time, and the next time, I broke into my office and questioned my boss aloud. Your career as a professional manager in the distance can be over!

Go back and think about it, think it through, or do n’t think about it, I said, you do, and the rest, if you want to understand it, you will hold it in your heart. "

Yuan Chengdao's lips moved, but he didn't know what to say.

Li Dong ignored him and waved his hand: "Go out, I still have something to do!"

Yuan Chengdao was a little embarrassed, so he had to accuse him of leaving.