Zhang Dazhong: Gome Dispute "Outsider"

Beijing is the base of Gome and Dazhong electrical appliances. Yongle entered Beijing in those days. Release conference It was chosen in Deshengmen, Beijing. However, in Beijing, in the era of Dazhong electrical appliances under Zhang Dazhong's administration, Gome and Suning All of them can't be done. As for best buy, the layout of Beijing remains unchanged.

This is the competitive scorch of Beijing's home appliance chain.

Everything was rewritten in December 14, 2007, when Zhang Dazhong made a price of 3 billion 650 million and changed all the stores of Dazhong Electric Appliance to Gome. The last account of the sale was September 2008, when Wong Kwong Yu came to discuss the delay of the account for one month. Two months later, Wong Kwong Yu Imprisonment.

Up to now, Beijing's large and medium sales of 7 billion yuan has not yet merged into Gome listed companies. The Beijing market of home appliance chain industry is still the base of Wong Kwong Yu non-listed company.

Idle people

The Beijing people who paid $560 million in personal income in 2008 did not tax themselves like many rich people. He always has a special understanding of money. For example, he can let shoppers do not shop and draw raffle. The prize is still a car. For example, he bought the homemade floor lamp he sold at that time.

If it were not for the dispute over the board of directors between Wong Kwong Yu, the founder of Gome in August and the authorized Gome chairman Chen Xiao, Zhang Dazhong might still be quiet. Zhang Dazhong came back from the United States and hurried to Singapore. It seems that there is a loose state of hand washing.

Busy people

The culture of Beijing's Dazhong is a "shopkeepers" culture. Zhang Da Zhong's title is "chief shop assistant". His logo is a blue vest. In Beijing, every employee wears such a blue vest. Zhang Dazhong often wears blue vest to run and run. He sums up the culture of big and middle schools, that is, "to serve you best."

Among the top 5 enterprises in China's household appliance chain, Zhang Dazhong entered the business field for the first time: he started working in Haidian District Beijing supply and marketing cooperatives in 1972, and in the next 7 years he sold pork and sold cakes. Relying on self produced and sold 60 floor lamps, he completed his first pot of gold.

These experiences familiarise him with formal and complete business processes. In April 1982, Zhang Dazhong registered the "Zhang Ji electrical appliance processing shop" and only had a 10 square meter facade. This was the only name allowed for private enterprise registration at that time. "Zhang Ji" is the main business of making audio amplifiers. In September 1988, turnover exceeded 100 thousand yuan for the first time. By December 1988, "Zhang Ji" occupied more than 90% of Beijing audio amplifier market share.

At this time, Zhang Dazhong's taste is brilliant. At this time, his future rivals have not yet entered this line: in 1984, Zhang Jindong, who was also an orphan, had just graduated from university. He was assigned to be a clerk in a district enterprise when he was 21 years old. In 1985, Wong Kwong Yu, who was only 16 years old, was going out to the world with his eldest brother to bid farewell to his hometown. In 1987, Gome was set up on New Year's day. The 100 square meter shop in Zhuzhu City, Beijing, finally caused the great movement of the Chinese household electrical appliance retailing industry.

Before 1989, Zhang Dazhong's goal was to make profits from the wholesale and retail price difference of components, because the trade volume and capital turnover were fast and had good prospects. But as China's economy plunged after 1989, his company gradually became gloomy.

But Zhang Dazhong has been waiting patiently. In 1990, Dazhong audio company participated in the bidding of the Asian Games project. With the comprehensive advantages of technology, industry and trade, and the trinity of sales, construction and service, Dazhong company won the bid in one fell swoop, and the small store began to start a big business. {page_break}

In that year, Zhang Jindong in Nanjing no longer wanted to be tied up by the unit. He went to sea to start selling Chunlan air conditioner. At this time, Wong Kwong Yu has begun to jump off middlemen, directly contact with Changhong and other manufacturers, and engage in marketing innovation such as home appliances underwriting. People from three different regions will eventually lead to the same goal.

Three strong contends for Beijing

Compared with Gome Suning, who loves horse racing, Zhang Dazhong's main energy has been on the Beijing market. But in the era of capital ownership, this year's struggle will eventually have to wait for the price to come up.

In 1992, Dazhong audio company was already a famous enterprise on West Fourth Street. At this point, Wong Kwong Yu began to unite all the stores as "Gome". Suning sales of air conditioning in 1996 have reached a record 1 billion 500 million yuan, and its absolute turnover has been able to keep pace with the year's Kelon and Haier. In the same period, with the rise of domestic color TV set headed by Changhong, Gome shifted its main business from pure imports to domestic and joint venture products.

Three years later, Dazhong electrical appliance started the operation of an electrical Monopoly chain store. In 2003, Dazhong Electric Appliance opened up to 32 stores, occupying 50% market share of Beijing electric appliance sales, and became the only electrical appliance chain store covering Beijing inner city, community and outer suburb county. In the same year, Dazhong electrical appliance's first foreign store, Tianjin the Yellow River Road store opened, Dazhong Electric Appliance started to become a national electrical appliance chain seller from Beijing.

However, compared to the Gome, which has been implemented in Beijing, Tianjin and Shanghai in 1999, and the Suning, which completed 4 billion sales in 2000, the big and Middle China did not prepare well for the layout and going out of the country. This made him lose the best time to be bigger and stronger.

In December 11, 2004, according to China's WTO accession commitments, the retail market in China was fully open to foreign investment. The home appliance chain market, which has been grasped by domestic chain enterprises, has also grasped the opportunity to compete in the enclosure, which will result in a more brutal price war. The profits of the whole industry are very low.

Although Zhang Dazhong has been hoping that Dazhong electrical appliances can enter the capital market since 2002, he has not been able to do so. His colleagues came on the market successively. In June 7, 2004, Gome backdoor China made its listing in Hongkong, and Suning listed on A shares in Shenzhen in July 21, 2004. In November 14, 2005, even Shanghai Yongle was successfully listed in Hongkong. At this time, although Dazhong electrical appliances also started the layout of the nationwide chain, the development of all its own funds is bound to be stretched. Zhang Dazhong has realized that it is impossible to rely on past solo to develop.

As early as 2002, 5 regional chain household electrical appliances enterprises such as Dazhong and Yongle had set up "Zhong Yongtong Tai" to carry out joint procurement to counter the expansion of Gome and Suning, which once participated in 17 enterprises. But it fell apart before and after 2004. At this point, the US appliance chain store boss, best buy, extended olive branches to the big and middle businesses.

It's really tempting to get American advanced management skills for Zhang Dazhong, who has only high school culture.

But Zhang Dazhong finally chose to cooperate with Yongle.

In April 2006, the merger agreement between Beijing and Shanghai Yongle, at that time, Zhang Dazhong hoped that this would fulfill his long cherished wish of more than 4 years - listing. Best buy has failed to buy big and medium-sized products and has completed its holding of five stars in Nanjing. The industry pattern has changed as Zhang Dazhong predicted. If Dazhong Electric appliance can borrow Shanghai Yongle, through the way of equity replacement, Beijing Dazhong can complete the breakthrough of capital market that Gome and sunning have completed two years ago.

However, the situation of Shanghai Yongle's operation is not good enough, which makes the seemingly unmatched combination of the north and the South seem to be a bubble. Chen Xiao turned to cooperate with Gome. In July 25, 2006, Gome announced the acquisition of Yongle, and the two sides formally merged in November 22nd. In January 31, 2007, Yongle officially withdrew from the Hongkong stock exchange. {page_break}

This is Zhang Dazhong's most difficult time after many years of commercial war. Through the failure of the two Confederation of China's Yongtai Tazhong and Dazhong Yongle, Dazhong has missed the best time for the layout of the whole country. And the 150 million yuan deposit of Yongle makes the big and middle like the throat move in the throat.

It is better to shrink the front than to blindly develop. In 2007, Zhang Dazhong resolutely chose to retreat to the Beijing market. He soberly realized that his greatest strength was to understand Beijing's business contacts with Beijing people. Zhang Jindong, 60 years old, has been unable to continue the protracted war compared to the 38 year old Wong Kwong Yu and 44 year old Zhang Dazhong. His only son did not show any willingness to succeed in the operation of Dazhong electrical appliances.

Strategic point

Gome, Suning, best buy, who are the buyers of big and medium?

Since July 2006, Zhang Dazhong has been extremely low-key. Even when he had caught a Gome spy, he planned to open a press conference to expose the scandal. Dozens of media outlets across the country gathered at the Shangri-La Hotel meeting site, but Wong Kwong Yu's soft message arrived 5 minutes before the meeting, and Zhang Dazhong gave up the "wolf coming" conference.

He knew well that no rival's bid had no good price. For the reputation of a business spy, it is not worth being hurt by future buyers. In particular, you should not allow yourself to fall into only one or two sellers.

People began to ignore this opponent. In September 18, 2007, Suning Beijing District announced the golden week sales target is "sales exceeding Gome". Unexpectedly, the "JINGWAH times", which was sold by Su Ning in September 30th, was fully purchased by Gome, and then the advertisements for Suning were distributed free of charge in their own stores. In order to resolve Suning's marketing offensive, 50 Fen of retail newspapers can even increase their price by 1 yuan. Gome's tens of thousands of Yuan's purchase of newspaper input has eliminated millions of advertising fees of Suning.

At this time, Gome and Suning fought to the white heat. However, the two sides did not think that Suning and Gome nearly 80 stores in Beijing completed nearly 90% sales of Dazhong electrical appliances, and even Dazhong appliances sold 350 million yuan a day. Facing the market share of 50% in the Beijing market, Gome and Ningdu have lost the last patience to play.

At the end of the golden week, Suning and Gome returned to the negotiating table. At this time, Suning needs more than ever. Because sunning Beijing has fewer than 40 stores, far inferior to the 54 stores and Dazhong of Gome, and Suning must consolidate its own dam in Beijing.

With the experience of Yongle, Dazhong has always been the two line of negotiation: on the one hand, it admitted that Suning and Dazhong were in contact, but stressed that the two sides did not sign the agreement. Always keep a buffer for Gome.

Finally, Gome reached all the requirements of Dazhong electrical appliances within 48 hours and increased its price by 20% on the basis of Suning 3 billion transaction price. Suning abandoned mergers and acquisitions in 24 hours. This is a rare commercial battle. Huang spent 3 billion 650 million yuan on the acquisition of large and medium sized enterprises, and it needed Gome's almost 3 and a half years' net profit to get back to the cost. Gome's increase of 600 million yuan became the last straw to crush camels. Suning Appliance's net profit in the first half of 2007 was only 578 million yuan.

Although it is not bought for sale. But walking around the three ring road in Beijing, you will find the precise location of Dazhong electrical appliances since 1993: the average layout of one store every four kilometers, so that 11 large and medium-sized stores on the three ring road in Beijing will take the lead. Take the Dazhong Madian store, which opened in 1997, for example, the site area is more than 4000 square meters, and the annual rent is as high as about six million yuan. The price is even higher than that of many gold commercial circles in the second ring road.

The central and Central TV Tower stores opened in 2004, with a total area of up to more than 20 thousand square meters, although the annual rent is as high as tens of millions, but the household electrical appliances are very rich. The industry says that the first Asian home appliance chain stores sell more than 1 billion 500 million yuan annually. Create a record of selling an electrical appliance every 0. seconds, and maintain the highest output of single store in the country. {page_break}

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Such a deal has been calm for Zhang Dazhong, a few of the ups and downs.

For Wong Kwong Yu, Dazhong is his most important acquisition. Until now, Dazhong electrical appliance is also part of Gome's non-listed company. The value of this part is not just a few hundred million management fees. Otherwise, Suning and Gome won't fight so fiercely. The annual sales of Dazhong electrical appliances in 2007 should be 7 billion yuan, which means that the Gome platform has gained more business and game weights. Every 1 billion yuan purchase in the chain area can bring 100 million yuan gross profit to the appliance manufacturers. The value of the big and medium value in the purchase of the total plate of Gome is self-evident.

After completely quit home appliance industry, Zhang Dazhong has a new company, big and medium investment. Although the financial strength is strong, there are few high returns. There are rumours that he will provide some interest free loans to Wong Kwong Yu. Others say he has nothing to do with Chen Xiao, but he can really dismiss the dispute at the moment.