Chapter 1589 If You Can't Understand It, You Have to Understand It!

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

At first, everyone didn't care.

But soon, there were rumors in the industry that Li Dong brought up the previous exclusive cooperation again.

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

However, at that time, Yuanfang's strength and reputation were not enough. When this suggestion was made, almost no one on the scene agreed.

In the later period, Yuanfang planned 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 implemented.

Even though Longhua and Longhu had reached a settlement agreement with Yuanfang before, it was not an exclusive agreement. Except for some of the commercial plazas developed by Longhua and Longhu, which were settled by Yuanfang Supermarket, others were still attracting investment.

But this time, in July 2009, Li Dong ascended to the top of the world's richest man, Yuanfang entered the world's top 500, and began to challenge 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 completely different.

Before the charity night started, six or seven real estate companies had already started to discuss specific cooperation matters with Yuanfang.

These real estate companies may not be top-notch in strength, but the targets Li Dong chooses are real estate companies that develop commercial plazas in the core areas of some second- and third-tier cities.

In commercial plazas in the core areas of first-tier cities, these developers are either powerful or jointly developed by multiple companies.

Moreover, it is more difficult to sign exclusive cooperation agreements in first-tier cities. After all, the core commercial plazas in these cities do not have to worry about attracting investment and leasing.

The second and third tier cities are slightly weaker, and even the developers are weaker.

When discussing cooperation with these enterprises, Yuanfang still has an advantage.

...

Li Dong didn't stop, talking about cooperation with these real estate companies for several days in succession.

Even if some people didn't understand it at first, they all understood 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 because I didn't expect it.

Monopoly Commercial Plaza!

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

Without him, the price is too high!

There are a total of 334 prefecture-level administrative regions in China.

Regardless of the county-level administrative region, just talk about the monopoly of the prefecture-level administrative region. What is the concept of monopoly?

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

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

In a prefecture-level area, if you want to complete the monopoly of commercial plazas in the core area, on average, each prefecture-level city must settle in more than three core commercial plazas as a minimum standard.

There are 334 prefecture-level administrative regions, and there are at least nearly 1,000 shopping centers in the distance!

It's a shopping mall, not Supermarket, let alone a convenience store!

In the industry, shopping centers are actually one level higher than hypermarkets, but even with hypermarkets as the standard, only supermarkets with an area of ​​more than 7,000 square meters can be considered hypermarkets.

What is the concept of 1,000 hypermarkets with an area of ​​more than 7,000 square meters?

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

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

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

In addition, Yuanfang now has many suppliers, and the payment cycle has been extended a lot, so there is no need to invest too much in the early stage of inventory.

But the current rent is already much higher than in 2004.

Converted down, the cost is actually about the same.

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

After all, what Yuanfang wants is the core commercial area. In fact, 15 million yuan is still available in some third-tier cities, and it is normal for first- and second-tier cities to double it.

If you want to win 1,000 hypermarkets in core areas, you need to prepare a minimum investment of more than 20 billion yuan.

20 billion is the minimum standard, and 1,000 is also the minimum standard.

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

In 2008, according to the statistics of the Shanghai stock market, there were more than 200 hypermarkets in the Shanghai stock market!

Three hypermarkets in a city want to force other companies to fail?

It can only be said that Li Dong is thinking too much!

If he really wanted to cut off the expansion of other big companies at the root, the scale would have to be tripled, and that would be about the same. After all, some small third-tier cities don't need so many big stores.

In other words, if we want to complete this plan across the country, excluding the first-tier cities, it is almost enough to win 3,000 hypermarkets in the distance.

The investment amount is about 60-80 billion.

It doesn't sound like a lot, but these are just the initial investment, the later employee expenses, business expenses, utility bills...

This series of things is not counted!

Including warehouses and distribution centers, it's okay to rent these things. If Yuanfang wants to complete the layout by itself, the investment scale will more than double!

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

150 billion investment in supermarkets?

If the original system of Yuanfang is added, the net assets of Yuanfang retail group alone can reach about 200 billion in China, and distribution centers and warehousing are included in the logistics group.

What is the concept of investing more than 200 billion yuan in retail enterprises?

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

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

Among today's retail groups, Wal-Mart is a well-deserved world leader.

What was Wal-Mart's shareholder's equity in 2008?

$60 billion! About 400 billion yuan.

And Wal-Mart is a large-scale super retail group in the world, and Yuanfang will invest 200 billion in China. This kind of crazy idea has never been considered by outsiders.

Once Yuanfang really wants to do this, and the performance in mainland China fails to meet expectations, then Li Dong will wait to pay for it.

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

As rents rose, the profits that Yuanfang Supermarket made in the end probably helped the real estate developers.

Does such an expansion make sense?

...

Does it make sense?

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

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

"Does it make sense?"

Yes, Yuan Chengdao is difficult to understand!

If it is said that Li Dong wants to expand internationally, even if he does not make money, he will admit it.

After all, in the international market, there is nothing in the distance, even if it does not make money, but in order to open up the market, although Yuan Chengdao felt bad, he also acquiesced.

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

At this time, it really doesn't make much sense to do such a thankless thing in Yuan Chengdao's view.

Li Dong looked at the angry Yuan Chengdao in front of him, paused for a moment before smiling lightly: "Why is it meaningless?"

Yuan Chengdao was annoyed, and said rudely: "Now, we have occupied a considerable market share in China's retail market!

In East China, apart from the Shanghai stock market, even including the Shanghai stock market, our market share is well-deserved No. 1!

And in other regions, our business is also covered.

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

But now, what's the point of spending a high price just to monopolize the market in mainland China?

There is no profit, and there is a vast market for nothing. Is it necessary?

Also, we do not have the ability to use so much money. I know that you should be able to use financing methods for external financing.

At that time, we will have to pay these interests, coupled with the high rent, we may suffer a loss.

Not to mention not making money, but also losing money, just to satisfy your vanity? "

Yuan Chengdao said it very directly, at this moment, he couldn't bear it anymore, and angrily said: "Is monopoly really good?

That's unlikely!

Today's monopoly industries, you have also seen that without government support, many monopoly industries will have to pay the bottom up!

What's more, we are not a high-margin energy industry, but a retail industry.

Our profit margin is not high, and now we have to expand regardless of cost, and repeat expansion and coverage in the mainland. Is this necessary?

These cooperative shopping malls are all lease contracts.

Once the contract expires, if the contract is not renewed in the future, we actually have nothing left.

In other words, maybe ten years later, there may not be an increase in the distance, but a decline.

Then these ten years, could it be used to satisfy the monopoly desire?

I don't even talk about the response and attitude of the government and other companies, so what if you really made it?

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

Now, what we need is steady progress.

With the recovery of the real estate market and rising rents, with this money, we can use it to expand the proportion of our self-operated properties.

Now, the proportion of our self-operated properties retailed by Yuanfang is only about 14%, which was not low in the past two years.

But now, other companies are actually expanding this ratio. For retail companies like Sun Art, the proportion of self-operated properties has even reached 20%, and this figure is still growing.

What about us?

Let’s not say that we are stagnant. Once we adopt the leasing model this time, the proportion of our self-operated properties will drop below 10%. Is this far away place what you want?

Yes, we were number one in terms of revenue and scale at that time, and we were number one in many things.

But this kind of castle in the air will collapse faster than anyone imagined.

It's really hard for me to understand, what is your original intention?

In the past, when we wanted to expand, you suggested expanding the proportion of self-operated properties. At that time, we were all doing these things because we had such financial difficulties.

What now?

Now that the group has managed to make life easier, at this time, I don't have much opinion when you say that you will use 100 billion funds to complete all the coverage of our self-operated properties.

But you spend a lot of money to suppress opponents just to expand the scale and the number of stores. I can't understand this at all! "

The more Yuan Chengdao talked, the more annoyed he became. Seeing that the real estate market is getting hotter and hotter.

At this time, everyone seized the last opportunity and began to increase the proportion of self-operated properties.

Yuanfang is good. At this time, not only does it not increase, but it spends a lot of money to expand the number of stores.

Originally, the number of stores in Yuanfang was not small. If Guomei was added, the number of stores in Yuanfang might not be the largest in China, but the actual operating area is definitely the largest in China.

It's already number one, and it's still desperately expanding, what about Li Dongtu?

Before he planned to expand the international territory, although Yuan Chengdao was worried, although he felt that he was a little too ambitious, but he could understand, really understood.

Now, that's really incomprehensible!

For Yuan Chengdao's dissatisfaction, Li Dong was not angry, and smiled and said: "Sit down and talk, it will hurt your body if you are angry, talk about things slowly, there is no need to get angry in a hurry."

The more he said that, Yuan Chengdao became angrier, sat down angrily, and then stared at Li Dongdao: "If Mr. Li can't give us a reasonable explanation this time, even though Yuanfang belongs to you, we have no right What to do to change, but we don't want to be a failed professional manager.

I don't even want to wear the hat of tossing and breaking a legendary company!

You have also seen that Mr. Li is negotiating cooperation with major real estate developers this time. Although the outside world paid attention, almost no one stopped him.

Why?

Just because others can't understand!

With so much money spent and so much energy, we can do other things. Even if we expand internationally, I agree, but we still cover China, which I can't understand! "

Li Dong was not in a hurry to speak, he leaned back on the chair and was silent for a while, before he said: "Let's put it this way, this time's plan is actually more than half of my own selfishness.

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

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

Only by stopping their expansion at the root, and then gradually encroaching, can we hope to completely solve them.

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

However, it's not just selfishness.

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

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

Yuan Chengdao was stunned for a moment, Li Dong on the opposite side smiled lightly and said, "Didn't you see it until now?

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

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

Ten years later, our large retail groups, with the current store coverage, will inevitably close some stores.

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

Also, you say scaling is useless?

joke!

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

At that time, we will have more funds on hand.

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

With this money, we can massively increase our proportion of self-operated properties.

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

In the past few years, in order to expand, we opened stores everywhere, and the overlap rate of stores was actually very high.

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

This scale is indeed too huge!

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

These stores can all be operated in a self-operated property model.

And where does the money come from?

From the retail group itself, of course!

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

As long as these stores are still open, in fact, it means that we have at least tens of hundreds of billions of additional payment 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 hold their heads up?

Am I so bored?

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

What is the concept of 3,000 self-operated stores and stores?

Ten years later, Yuanfang will no longer open supermarkets or open stores. If I rent out these stores and sell them, it will become a trillion-dollar group!

And it's not as conspicuous as a real estate company, so no one will care about it.

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

And if we continue to do retail ten years later, then we will have a 100% self-operated property ratio.

Think about it for yourself, how much advantage will a retail group with all self-operated properties have?

I let him increase the rent, what does it have to do with us?

I can't wait for the rent to go up so much that other retail businesses have closed down, and we can't close down either.

No matter how impacted by e-commerce, physical stores will not die.

And by that time, we will be the only physical stores that are truly immortal.

As for e-commerce, we still dominate.

In fact, I wish I could get to this point now, when the online impacts the offline, it is others who impact, or we are impacting other people's offline.

We let other people die completely online and offline without any sound, and there is no chance of resurrection.

Isn't this kind of thing worth it?

Finally, by the way, it will 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 paying more than 100 billion more for free, isn't it 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 in a while.

Once it reaches six months, with our annual transaction volume, think about it, how scary it is!

Trillions in revenue, at least 800 billion in payment, and a half-year cycle, that is, we can deposit 400 billion for free!

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

You only know how to roar, you only know how to look at the immediate benefits, but you don't know how to think about the future.

What's wrong with not making money?

If we don’t make money, we actually make money!

How much do you think Wal-Mart really makes in their retail business?

Since retail profits are so low, why do these large groups continue to expand and acquire?

What's wrong with having that spare money?

Why expand?

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

Your task is not these, but to consider how to prevent the group from operating at a loss under the circumstances of rising rents, employee wages, and interest increases. This is what you should consider.

What are you yelling at me for?

My own group, how can I deliberately torment him to death?

Another point that needs to be done by you is the location selection and layout, and how to buy some stores that need to be self-operated after we have selected them from developers.

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

By the way, there is also the issue of extending the supplier's payment cycle, which also requires you to consider, measure, and convince them to agree.

Say it yourself, how much of the group is waiting for you to do it?

If I don't tell you, you won't take the initiative to think about it?

Won't you take the initiative to share?

Just like you, you still want to control the distance alone, it's too early!

Other companies can't do it, but Yuanfang can do it, because I, Li Dong, are here!

If I am here, there is hope of success. If I am not here, can you do it? "

If the former is an explanation, the latter can be said to be a scolding.

Li Dong was also very annoyed at this time, staring at Yuan Chengdao viciously and continued: "What? Do you think that I, Li Dong, are outdated now and can't keep up with you people?

Still think that I can only assign orders, and you are the core of the group?

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

Whether it is the merger and acquisition of Guomei, the defeat of Teng Xun, or the expansion of the company, I will solve the most troublesome things!

Although the execution and ending are troublesome, I admit that you all have a lot of credit, but I, Li Dong, think I am worthy of everyone!

These are not the capital for your pride!

Of course, maybe it has something to do with me not explaining it clearly to you, but as the president of the group, do you have to explain it thoroughly every time in order for you to understand?

This is the last time, and there will be another time, break into my office and question your boss loudly, your career as a professional manager in the distance can be over!

Go back and think about it yourself, whether you can figure it out or not, I said, you do it, and for the rest, if you understand it, hold it in your heart, and if you don’t understand it, hold it back! "

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

Li Dong ignored him, waved his hands and said, "Go out, I still have things to do!"

Yuan Chengdao was a little embarrassed, so he had no choice but to leave embarrassingly.