Wong Kwong Yu: Good Fortune Of Electrical Appliances

Wong Kwong Yu, who was born in Fengpeng village, Shantou City, Guangdong Province, is a small village that neither supports nor relies on the sea. The whole village has more than 300 people. The Wong Kwong Yu family is the poorest family in the poor village.

Huang has four brothers and sisters. Wong Kwong Yu is the second child. His name is Huang Junlie. He was born in 1969, and big brother Huang Junqin is 3 years older than him.

There are two versions of Wong Kwong Yu's history of Entrepreneurship: the first version is that in 1985, only 17 year old Shantou teenager Wong Kwong Yu and his brother spent 4000 yuan from their home town to Inner Mongolia to do business.

A year later, the two brothers came to Beijing to start selling household appliances with a loan of 30 thousand yuan at an electrical appliance shop with an area of less than 100 square meters in Pearl City, and the first sign of Gome in January 1, 1987.

The second version of Wong Kwong Yu said that the first time he opened a shop in Pearl City, Beijing, was selling clothes. After six months of losing money, he had to switch to selling electrical appliances.

For this period of history, Wong Kwong Yu kept silent.

Anyway, more than 10 years ago, Wong Kwong Yu was an ordinary businessman. Like thousands of other businessmen, he took care of the storefront from dawn to dusk.

This is the myth of the Chinese business community.

In the late 80s of last century, the demand for the entire household electrical appliance market was far greater than that of the supply.

Wong Kwong Yu is keen to find the best market for home appliances. At the same time, it is foreseen that with the development of China's economy, the market will eventually turn to the buyer's market.

China and the United States are rooted in the large population market and have a deep understanding of consumers' price tendency.

Gome did not adopt the practice of buying up and selling prices in order to increase profits in general merchants, but decided to "adhere to retail, small profits but quick turnover" business strategy.

This strategy continues to date and has become the foundation of the founding of the United States.

A lot of people say that the Gome that Wong Kwong Yu brought out is "price killer". Wong Kwong Yu refused to comment on it. "Since competition is inevitable, then only the winner is the king loser."

But he did not think he had driven down producer prices.

"Ten years ago, I heard that foreign electrical appliances were not worth repairing, because cheap, what I had to do was to let the Chinese people buy cheap appliances."

Wong Kwong Yu said that the affirmation he brought to China's household electrical appliance industry is a positive influence, accelerating their progress or elimination.

The profits of manufacturers are less than that of Gome, but the competitiveness of enterprises is decreasing.

Why are enterprises with core technological capabilities, brands and quality service systems not afraid of competition?

You can't say that if I give, I will give something back, then there is no able person and ordinary person to say.

Wong Kwong Yu said that he is pursuing profits should be more and more reasonable, so that enterprises can enhance their core competitiveness through enhancing their core competitiveness, whether they are businessmen or manufacturers.

For example, he said, now manufacturers and businesses are not very well matched, resulting in a lot of resources dislocation, at headquarters to discuss a round, to dozens of branches to talk about, in manpower, material resources, time is a waste, this waste will inevitably lead to higher supply price, and ultimately to consumers.

Compared with the 1 billion 800 million assets in 2003, Wong Kwong Yu's fortune increased by 8 billion 700 million yuan in 2004, while the total sales volume of Gome in 2003 was only 17 billion 790 million yuan.

It can be said that the great contribution of Wong Kwong Yu's wealth is attributable to the stock market.

Therefore, for the title of "the richest man", Wong Kwong Yu has his own ideas. He does not object to people saying he is a "book rich man".

He also said something very meaningful: "to be exact, the 10 billion 500 million yuan can not be called wealth because it can not be realized at all."

You think, once the 10 billion 500 million yuan is fulfilled, it means that the control of the company falls on others' hands.

At that time, I was rich, but I had no career at all.

How can this be done? "

In fact, Wong Kwong Yu had planned to let Gome go on the market at home and abroad, but the road was not smooth.

It was not until this year that he realized the listing of Gome in Hongkong by using the backdoor method of "left-handed right-handed".

Many people think this is brilliant, but Wong Kwong Yu does not admit that he is a master of capital operation. He even admitted that this is the operation of a professional company.

He is rather understatement of the significance of the listing of enterprises. "I hope that the listing of companies can be more demanding for the competitiveness of enterprises, and let the randomness and irregularities of enterprises in the past be broken.

At the same time, the demand for industry competitiveness will be higher, and there will be some influence on the way of operation. "

That's it.

He even sighed, "companies are listed, and my profits have made investors go away!"

On the other hand, Wong Kwong Yu appeals to international capital strategic investors to rely on stable cash flow and rapidly growing market dominance of China's home appliance retail market. He does not need to raise cash in cash without a fragile "brokerage bank trust" financial chain, and is not affected by the entire domestic financial order.

The secret of Gome lies in accounts receivable and cash flow control.

Generally speaking, large scale electrical appliance retail enterprises have huge cash flow, and retail enterprises also require upstream suppliers of electric appliances to enter into the field, pay back fees, and store fees, etc., and generally pressure upstream suppliers of electrical appliances for more than 3 months.

Retail enterprises have the opportunity to provide liquidity to the supply industry and expand operational capital needed for capital operation, or even become industrial capital through embezzlement of liquidity.

Gome's idea of expanding its scale is exactly the same as that of WAL-MART, Carrefour and other large supermarkets.

Wong Kwong Yu, of course, knows the tricks and risks.

Gome chain operation has stable source of funds, low cost, no regulation, and the temptation of overdraft is very large.

The enlargement effect of this kind of fund is very popular: retailers expand the purchase quantity for the land, pressure the suppliers' money, and then promote sales at flat or even lower than the price of the goods, rapidly expand the sales volume. Through the group's internal financial adjustment, some of the stores and subsidiaries' sales and profits will continue to expand rapidly for a long time, while some other stores and subsidiaries will bear the loss.

If the old storefront stores get part of the money through mortgage loan, it can pool with its own capital to open a new store.

As long as new sources of energy and energy continue to flow back through the market to repay the initial payment of the outstanding suppliers, the surface prosperity will continue.

The sales performance in full swing will create a resource gathering effect, forcing upstream suppliers to make more concession.

Gome opened up more stores and attracted more strategic funds from international strategic investors and quickly realized industrial monopoly.

This enterprise industry self - development model, if the capital market can be successfully combined, the capital chain will never seem to break up.

Such risks are catastrophic.

However, if entrepreneurs can effectively control enterprises and activate the capital chain chain between the industrial chain and capital chain, the probability of such extreme situation will be very small. Snowballs will gradually be digested and digested under controlled speed.

Wong Kwong Yu, a marketing leader, is also very good at capital operation.

In 1988, Wong Kwong Yu founded Peng Run Investment Co., Ltd., with a total assets of about 5 billion yuan.

Peng run investment enterprises are Gome, Peng run real estate, Peng Tai Investment.

The investment has been completed by HK $135 million in the purchase of 74.5% stake in Hong Kong listed companies Capital Automation Holdings Limited. It has injected some of its assets into listed companies and renamed it China Peng run group (Peng run real estate).

"Peng run will develop two large flats, 1 million square meters, and 300 thousand square meters.

In addition, we have prepared some small and medium-sized real estate projects.

Wong Kwong Yu likes to "go out of business."

Peng Tai Investment Company has acquired Ningcheng Laojiao.

"It is certain to make liquor, but it has not yet been decided whether to do it as a major industry."

Wong Kwong Yu said, "it is a simple principle to buy things at a low price and sell things at high prices."

According to the general train of thought, Wong Kwong Yu will sublime from selling merchandise to the important stage of "reselling business shell" and accelerate the enclosure of money.

Gome mode follows the operation of the Delong system. China's Peng run is like the three carriages of Derong. Huang's brothers are likely to turn into second "down brothers" in the mainland market.

It's what we have been preparing for.

Wong Kwong Yu resumed his pale tone.

According to Mr Wong Kwong Yu, he is considering Gome's high-level shareholding scheme, but he will never give up his absolute controlling position.

According to Gome's assumption, sales revenue will exceed 100 billion yuan by 2008.

In this way, Wong Kwong Yu's body still has much room for appreciation.