Couples Start A Business With A Revenue Of 4 Billion

On October 20th, more than ten years ago, Wang Tian resigned and went to sea. He opened a BBK restaurant company in Xiangtan with his 50 thousand yuan borrowed from friends.

More than a decade later, the company metamorphosis into a BBK commercial chain Limited by Share Ltd (hereinafter referred to as BBK chain). Its IPO application was approved by the trial committee, and is going to be listed in the small and medium board ETF of Shenzhen.

As of December 31, 2007,

Public information shows that BBK's revenue in 2007 was 4 billion 184 million yuan, and its net profit was 125 million yuan.

As of December 31, 2007, BBK has set up 47 stock holding companies in two provinces of Hunan and Jiangxi, with 87 outlets for the national top 100 businesses.

Many years ago, when the countryside besieged the city, Wang Tian, chairman of BBK chain, had been debated with a businessman in Hunan province about whether he first hit the city or the countryside.

At that time, Wang filled with a low attitude, the city was occupied by some older brothers, and the BBK chain was not there.

These big brothers are all big trees. BBK is just a little grass. But when the grass becomes a piece of grassland, it may encircle the big trees.

In the first few years of the BBK chain, Wang fills in the grass.

The company started from Xiangtan, gradually consolidating the surrounding counties (cities) and districts, and gradually developed to two or three neighboring cities such as Zhuzhou and Loudi.

But a red line is: resolutely do not touch capital cities such as Changsha.

At the time, whether it is the Hunan industry, or Wang Tian himself, do not cover up the BBK chain of the natural color.

Years later, when Wang filled BBK's chain of chess pieces and covered all the counties and cities in Hunan, the Hunan business community began to wonder.

In the development strategy, the BBK chain takes the layout strategy of the rural encircling cities, adopts the expansion plan that concentrates forces, avoids strong enemies, and breaks through and steadily advances, thus avoiding the brutal competition of the strong enemy and gaining the dominant position in the market competition.

Hunan University of Commerce Professor Liu thought this evaluation.

In his view, throughout the history of BBK's chain entrepreneurship, rural encircling the cities and breaking down one by one is an obvious feature. It is precisely this strategy that allows its conquered territory to be lost and then expand.

Throughout the country, many commercial enterprises have the intention of chain expansion, but often missteps. In addition to the usual factors of so-called acclimatization, an important reason is to attack in real time without laying a solid foundation.

When talking about the development mode of BBK chain, Guo Geping, President of the China Chain Store Association, mentioned that in large supermarkets, the large supermarkets in the first tier cities are becoming saturated. The two or three line cities will become the key areas for the development of large supermarkets. Foreign-funded enterprises and some regional advantageous enterprises are also accelerating to infiltrate into the two or three tier cities, and the number of shops opening at county level has also increased significantly.

Chen Zhiqiang, deputy general manager of BBK chain, said that the concentration and stability of the network brought cost advantages to the company. This advantage also contributed to the low price strategy, which in turn promoted the consolidation of the network.

BBK is not without.

In the past two or three years, we have also gone through a long detour. Wang fill can not forgive the mistakes that have been made strategically, and this kind of mistake is the biggest harm to the enterprises.

The strategy of BBK's chain entrepreneurship to the core development strategy is to construct the strategy of small and medium-sized cities, that is, the strategy of rural encircling the cities and low cost.

But in 2005, when entering the Jiangxi market, a new model was adopted, which started from the Nanchang market of the provincial capital city, and the result was very bad.

At that time, it was the entire retail industry in China that was taking advantage of the trend of the important cities.

He concluded that the local competitors in Nanchang had already done very well. As a latecomer, the BBK chain did not have enough compression capacity.

A year later, we quickly adjusted our strategy to return to the strategy of small and medium-sized cities.

The whole story of expanding Tian Ji racing tells the industry that a good combination of formats can win competition.

Although we are faced with a lot of problems in the face of large multinational enterprises and national retailers, we can avoid the edge of it and use the combination of department stores and electrical appliances + supermarkets.

Wang Lei likes to use such language to express his consideration of the development of many formats.

In his view, China's retail industry has entered the era of regional king, but to truly become a regional leader, to make my site, I am the leader of my site, it is very difficult.

This will depend on the development of many formats.

One of the questions we must consider is who will be our biggest competitors in the future and what weapons our opponents will use to deal with us.

In his view, in sectors such as department stores, electrical appliances, supermarkets and hypermarkets, the biggest harm to the regional enterprises is the stores. Therefore, the regional chain enterprises are faced with the problem of choosing the format. In the final analysis, we should choose the competitive strategy to win the market.

In 2001, BBK opened its first twenty thousand square meter shopping center and began to operate in many formats.

Subsequently, in the two tier markets of Xiangtan, department stores, fresh supermarkets, community supermarkets and specialized department stores were gradually opened.

At present, the BBK chain has already set foot in supermarkets, department stores, household appliances, warehouses and other formats, almost covering all the current commercial forms.

Since the beginning of 2006, the BBK chain has made a format to sort out the format of the shopping center in the vicinity of the business circle, and has found a new shop site according to the new format standard and format model. At the same time, it has pformed the old shop according to the new format model and format standard, so that the enterprise has found business opportunities.

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At the end of 2006, WAL-MART opened in the store in Loudi, Hunan, and only a hundred meters away from BBK, and the area of the appliance was 20 thousand square meters.

BBK planned the store with the combination of formats: 18000 square meters of department stores and electrical appliances, only 2000 square meters of supermarkets.

As a result, after WAL-MART opened, BBK's sales increased by 17%, and its gross margin increased by 1.5 percentage points.

If it was also a big store at that time, even if the store was busy, it would never make money, and I wouldn't be so easy to stand on this podium.

When collecting the outstanding achievement award of China's chain industry, Wang fills in with this example to explain the position of the format.

In response to the layout of the format, BBK's investment in the chain is nearly 300 million yuan, and a large logistics distribution center will be built in the core area of the three cities of Changsha, Zhu and tan. It will face Hunan, Southern China, southwest, East China, central China and other regional markets.

According to the prospectus, BBK chain will raise funds for new stores, BBK Shopping Plaza (Xiangtan) expansion project, logistics distribution center renewal project, information system upgrading project and so on. The total investment will be more than 900 million yuan.

Chen Zhiqiang disclosed that the construction of new stores will continue the company's layout, not necessarily a single supermarket or department store.

He also revealed that it would speed up the takeover operation.

In the next two years, the company will focus on the deep development of two provinces in Hunan and Jiangxi, continue to expand and consolidate the market share of the existing regions, enhance brand influence, actively carry out supply and demand research, develop dual formats, and form the best combination of formats and regions, so that the number of outlets will reach more than 130, and the sales scale will reach 8 billion yuan.

In 2007, the company's operating income was 4 billion 180 million yuan.

Dr. Liu Yahui, deputy director of the Securities Research Institute of Taiyang, thinks that such a commercial enterprise like BBK chain will be distributed throughout the country with municipal units. The future development is still the expansion and layout of the network, and the profit margin can be reduced in the development process.

From the industry perspective, the retail industry is benefiting from the trend of consumption upgrading and has investment value.