Zhang Dazhong: Veteran Of Electrical Appliance Store

Chen Xiaoyi, former chairman of the board of directors of the United States and the United States, said, "Zhang Dazhong is the product of interest combination" and once again pushed Zhang Dazhong, 63, onto the cusp of the storm. As a Chinese household appliance Sale Zhang Dazhong, one of the biggest M & A parties in the industry, faced with Chen Xiao's accusations and had a reason to fight back. But after many years of rebirth, Zhang Dazhong's style of action was more steady. He not only did not compare with Chen Xiao Feng, but also showed an enterpriser's posture. achievement Work with quiet hard application.

As an old household appliance sales industry, Zhang Dazhong's attention has attracted much attention. In addition to fading out of the home appliance chain industry for many years, whether it can continue personal myths, the outside world is more concerned: as Wong Kwong Yu and Chen Xiao once competitors, the founder of the original Dazhong electrical appliance Zhang Dazhong, after taking over the chairman of the board of directors of the Gome, can it completely end the year's internal consumption of Gome? Where will the future of Gome go?

"Gome has introduced the story outside the theme, which has distracted people's attention and affected the speed of normal development of Gome. This page should now be basically turned over. Let's not forget Chairman Huang (Wong Kwong Yu) or chairman Chen (Chen Xiao). After listening to their stories, I shall be working next. " Zhang Dazhong said that in the future, Gome will not suffer any further internal friction, and the focus will also be shifted to upgrading business. "It's the story of work." Zhang Dazhong said so.

Retire from rivers and lakes

People who are familiar with the massive mergers and acquisitions in that year's home appliance sales industry should still remember the resentment between Zhang Dazhong and Chen Xiao.

Zhang Dazhong, who was born in Beijing, is said to be "the third senior high school student". She once joined the countryside in the suburbs of Beijing, and was assigned to Haidian District Beijing supply and marketing cooperatives in 1972. At the beginning of 1989, Zhang Dazhong opened the first store of Dazhong electrical appliances in Xidan, Beijing - the big and medium sound company with a business area of only 10 square meters. After years of painstaking efforts, Dazhong electrical appliances set sail as an electrical Monopoly chain store in 1999.

In 2005, Dazhong electrical appliances ushered in the peak of development. This year, Dazhong sales in Beijing accounted for 40% of the market share, equivalent to the sum of Gome and Suning. It was also in this year that Zhang Dazhong, 58, established the idea of national expansion in order to occupy the national market with his hands and expand the territory.

But when the performance of Dazhong electrical appliances is booming, strong competitors are also approaching it step by step.

Gome has already established a chain operation strategy which takes Beijing as the center and has spread the whole nation. It was successfully listed in 2002 and became the most powerful opponent in the big and middle enterprises. At this time, Chen Xiaohe Yongle electric appliance, which has long been in Shanghai, has also set its sights on the whole Chinese market. Zhang and his Suning have also stepped out of Nanjing, and have been fighting for a long time to expand their territory.

Due to the listing of Gome, Yongle and Suning, subtle changes have taken place in China's home appliance sales industry. In April 2006, Yongle and Dazhong signed a strategic cooperation agreement. The two sides plan to complete the merger within one year through the way of equity replacement. After merging, they will produce the third largest household appliance retail enterprises in China, and have the power to fight Gome and Suning two electric giants. In order to express sincerity, Yongle even paid the "combined margin" of 150 million yuan.

But what Zhang Dazhong did not expect was that in 3 months after the announcement of the acquisition, Yongle was personally coveted by Shanghai's long Gome. Originally planned to work with Yongle to compete with the plan of Gome and Suning, Zhang Dazhong is now left alone in support. All he could do was wait for it to be acquired.

In December 2007, Zhang Dazhong achieved his long strategic choice of "self development, preferable combination". The Gome holding company, which has been listed in Hongkong, has obtained the exclusive management and operation rights of Dazhong electrical appliances through the bank's entrustment of loans to the independent third party, and the purchase price is 3 billion 650 million yuan. The acquisition completed the great integration of the domestic appliance market.

"Zhang Dazhong will no longer be involved in the appliance industry. He has left the industry." In December 19, 2007, on the fifth day after Gome's purchase of all registered capital shares of Dazhong electrical appliances at 3 billion 600 million yuan, Chen Xiaoru, who had already been president of Gome, said, "and it is a clean departure. Nothing is needed. Shares are not needed, nor will it be in the future, as long as money is needed!"

For Chen Xiao, who once promised himself a bright future, Zhang Dazhong only left a "villain", and he really quit.

Zhang Da Zhong, who has retired from home appliance sales, has not retired. In Zhang Dazhong's own words, since the acquisition of Dazhong electrical appliances by Gome, it has transformed itself from an entrepreneur to a capitalist and has invested in the establishment of Beijing Volkswagen Investment Limited. Although "entrepreneurs" and "capitalists" are two totally different jobs, Zhang Dazhong said, "once entrepreneurs have made investments, they will see more clearly for enterprises. When we look at others, we can see at a glance how the future of enterprises will be under the leadership of their bosses.

It is precisely because of this "ability" that Zhang Dazhong thinks that the accuracy of his investment is higher than that of many fund managers. He said that he was very optimistic about Wanda and other enterprises already invested, and even thought that these enterprises will have considerable influence in their respective fields in the future.

It is easier to engage in investment than to be an enterprise. But investing is easier. " Zhang Dazhong commented on the difference between doing business and investing. Although in his eyes, "doing business" is a very hard and very hard work, but he seems to be prepared for heavy employment.

In the three years after Zhang Dazhong's retirement, the Gome, as the household appliance sales industry, experienced too many stories. From Wong Kwong Yu's imprisonment to Gome's "civil war", these unexpected incidents not only upset the normal operation of Gome, but also made Gome's management team in a precarious situation. At this time, Gome needs a person who can solve the contradiction between big shareholders and Chen Xiao - this person is Zhang Dazhong. {page_break}

Steering the Gome

In March 9, 2011, Gome announced the appointment of Zhang Dazhong as the company's non-executive director and chairman of the board. Li Gang Wei is an independent non-executive director of the company and will take effect next day. On the same day, Chen Xiao resigned as chairman of the board of directors and other national Gome duties on family grounds. Sun Yi Ting, executive director, resigned on family grounds.

On the second day, Zhang Dazhong turned off his cell phone and boarded the flight to South America, and began a family trip for about twenty days, leaving all doubts and puzzles in China. On the same day, Chen Xiao walked out of the Peng run mansion and went into the Maybach car that followed him for many years.

This scene is very similar to Zhang Dazhong's withdrawal from the rivers many years ago, but the two protagonists have been transferred.

Employees of the public investment were surprised when they saw relevant reports. Few people in the public investment know Zhang Dazhong's decision in advance. In fact, Zhang Dazhong had anticipated the shock of the news, so he had arranged for his trip to South America to take him away from the storm center.

In the eyes of the outside world, Zhang Dazhong seemed to be suddenly surprised by the airborne national Gome. But in fact, as early as the end of 2010, Wong Kwong Yu's wife, cuckoo, had begun to rush for Zhang Dazhong's coming out of the mountains.

In November 10, 2010, Gome announced that it signed a memorandum of understanding with ShinningC row n, a controlling shareholder of Wong Kwong Yu's major shareholder, in November 10th, and agreed to increase the maximum number of licensed directors from 11 to 13. Two new directors were nominated by major shareholders by Zou Xiaochun and Huang Yanhong. At the same time, the two sides also made it clear that they had no intention of splitting the unlisted stores temporarily.

According to people familiar with the matter, there are many additional conditions in the memorandum, including the commitment of major shareholders to Bain Capital, and Chen Xiao's resignation at the right time. In early December 2010, Chen Xiao's first speech at the E MB A conference in Tsinghua University also revealed for the first time the intention of leaving. He said at the time that he would leave Gome someday. After that day, Chen Xiao, who lived alone in the penthouse apartment not far from the Peng run mansion, rarely appeared in the office. Wong Kwong Yu's wife, cuckoo, entered Wong Kwong Yu's office. At the end of 2010, at the annual meeting held by Gome, Chen Xiao was absent. At this moment, Gome has released a clear message out of it - Chen Xiao is leaving.

However, because the cuckoo is "guilty of sin", Gome still needs a candidate to serve as chairman of the board. People familiar with the matter said that from the beginning, Wong Kwong Yu's brother-in-law Zhang Zhiming and Zhang Dazhong were not considering the list. The final choice of Zhang Dazhong is also a compromise. Large shareholders tended to be Zou Xiaochun, but Bain Capital voted against Zou Xiaochun who had no retail experience. After several deliberation and competition, the parties finally reached an agreement this Spring Festival and chose Zhang Dazhong to take the helm of Gome. People close to Zhang Dazhong say that Zhang Dazhong's relationship with Huang has always been good. In the middle of last year, when Huang family was in a difficult time, Zhang Dazhong had offered help, and Zhang Dazhong's qualifications earned Bain Capital's approval. Bain Capital has publicly stated that Zhang Dazhong has a high prestige, understands retail business and has rich experience, and is more convincing than other candidates proposed by major shareholders.

"Righteousness, integrity, humility and kindness" are the first impressions of many people on Zhang Dazhong. Zhang Dazhong and Chen Xiaoyou have many things in common: they were once a giant in the field of home appliance sales, and they were all bought by Gome. But compared with Chen Xiao, it is generally believed that Zhang Dazhong is more steady and honest.

But Zhang Dazhong, who is "steady and honest" to take over the Gome, can not calm the outside world's doubts. Because everyone knows that "steering the Gome" is not an easy task. At least after the "civil war" after more than a year of Gome, it will feel like a ghost. But Zhang Dazhong resolutely opted for the Gome who is not so beautiful now. Zhang Dazhong is ready for the challenges faced by Gome leaders. He said that as entrepreneurs often encounter challenges, when they take charge of the Gome, they have foreseen all kinds of difficulties that may be faced.

Zhang Dazhong said that when he accepted the position of chairman of the board of directors of Gome, he did a lot of thinking. He believes that Gome as a leader in the industry has played a pivotal role in the healthy development of China's household electrical appliance market, and has also contributed greatly to the modernization of the Chinese household electrical appliance market. Therefore, when the United States threw olive branches to him, he thought it was a great honor. In addition, he also believes that Gome is a very powerful enterprise. Although there has been a little accident in the past two years, the whole is still healthy. Therefore, we hope to make Gome a respected company in the world in a short time. Zhang Dazhong also said that he personally familiar with the appliance sales industry, and once led Dazhong electrical appliances in the competition with the Gome to grow and develop together. Therefore, he feels that accepting this position is in line with his strong points and is good enough for the "hot" job of this outsider.

Zhang Dazhong said he was also a founding shareholder at the beginning of his business, so he had enough understanding and action for the organization, management, planning and development of the whole enterprise. Gome invited itself to come out of the mountains, and for this reason, he hoped that he could continue to play the expertise in this area, make a planning work for the future of Gome, and coordinate the interests of the small and medium-sized shareholders and the interests of the management.

Fang Yanfei, a senior economist at Beijing University, believes that Zhang Dazhong may not be the best for Gome, but it must be the most suitable Gome at this stage. Zhang Dazhong has been struggling for a lifetime in the household electrical appliance industry. His reputation is outstanding. His qualifications and reputation are similar to those of Wong Kwong Yu and Zhang Jindong. His professional qualifications and qualifications, as well as his moral character and prestige, can be accepted by the parties to the maximum extent, including Wong Kwong Yu, Bain capital and major shareholders.

Reorganize rivers and mountains

"In the future, we will take into account the interests of major shareholders, small shareholders and management." Zhang Dazhong, who formally took the helm of Gome in March 10th, told reporters after nearly two months' silence.

"Gome civil war" has been temporarily lags behind. As the new leader of Gome, Zhang Dazhong must bring the parties back together.

Zhang Dazhong said that at present, the first task of chairman of the board of directors of Gome is to safeguard the interests of large shareholders, small shareholders and management. In the course of operation, Gome will continue to play an active role in the society, so that the appliance marketing will continue to maintain its international standard.

In this regard, Liang Jia, an analyst at the florescence Bank of London, told reporters in an interview with the economic reference daily that Zhang Dazhong's position indicated that he had been working for a period of time after he took the helm of the Gome. First, he wanted to finish the "Gome fighting" that lasted for more than a year, and the two is to continue to enhance the performance of Gome. Liang Jia analysis believes that after last year's Gome special shareholders' meeting in September 28th, Gome could not return to normal. On the one hand, the Wong Kwong Yu side always opposed Chen Xiao as chairman of the board of directors, and asked to reorganize the board of directors of Gome, which made the management of the Gome unable to be stable. On the other hand, Huang and Chen both had their own views on the future development strategy of Gome, and to a certain extent, bound the development of Gome. Now Zhang Dazhong is the chairman of Gome's board of directors, and his status is relatively neutral, which helps to end the internal interest disputes in the United States in a short time.

When asked about the relationship between Bain Capital, the second largest shareholder of Gome, Zhang Dazhong said that Bain Capital is an internationally renowned investor with deep attainments in the management and operation of the enterprise, and is very respectful to Gome's important opinions and Gome, and will listen carefully to relevant suggestions and opinions. Bain Capital helped Gome to invest in Gome, including positive support for the formation of the new board. "I have not been in touch with Zhu for a long time. He has impressed me very well and is very pragmatic." Zhang Dazhong said so.

Liang Jia pointed out that Bain Capital played a crucial role in the former Gome struggle. Zhang Dazhong's statement to the outside world released such a signal: at this stage, the relationship between the Gome's internal management and shareholders is harmonious, which is a great advantage for Gome's future development in the capital market.

"Gome has introduced the story outside the theme, which has distracted people's attention and affected the speed of normal development of Gome. This page should now be basically turned over. Let's not forget Chairman Huang (Wong Kwong Yu) or chairman Chen (Chen Xiao). After listening to their stories, I shall be working next. " Zhang Dazhong said that in the future, Gome will not suffer any further internal friction, and the focus will also be shifted to upgrading business. "It's the story of work." Zhang Dazhong said so.

In fact, when Zhang Dazhong took over the chairman of the board of directors of Gome, he already had a clear positioning for himself. He said: "I have worked in the home appliance industry for more than 30 years, and I am very familiar with the household electrical appliance industry. I will take advantage of my advantages to put forward more macroscopic suggestions for the development of Gome in the future. I am confident that I can lead the nation to create brilliant future."

Gome annual report shows that Gome sales in 2010 reached RMB 50 billion 910 million yuan, an increase of about 19.32% over the same period last year. During the period, 139 new stores were opened and 39 low efficiency stores were closed. By the end of 2010, the total number of listed stores reached 826, representing a 21.80% increase over the sales revenue of stores. Although the growth is gratifying, the fact that Suning, the largest competitor of Gome, has surpassed Gome in the same period.

In response, Zhang Dazhong said that after taking the Gome, there will be no big change in the big strategy, but it will speed up the development of Gome. The company has made appropriate adjustments to the 5 year strategic plan, and will increase its strength in the future, especially the new stores in the two or three line cities, hoping to reach 60% of the total number of stores, while improving the sales capacity of single stores.

Zhang Dazhong said he would transform the "Five Year Plan" published by Gome before paper into reality. He introduced two parts of Gome and unlisted stores in 2011, and plans to open 480 new stores. In the first quarter, more than 150 new stores have been opened. According to this speed, 600 new stores will be opened throughout the year. At present, Gome has 1400 stores, and these resources are guaranteed. There is little problem in completing the new shop plan. Two, Zhang Dazhong also revealed that the sales target of Gome's "Five Year Plan" was 200 billion yuan.

In addition to the speed of new shops, Zhang Dazhong believes that the completion of Gome's "Five Year Plan" needs to improve operational and managerial capabilities and increase the efficiency of single stores. He noted that in addition to accelerating the business of e-commerce, Gome also introduced advanced management systems such as E R P. In particular, the E R P system is made by the German SA P company and Hewlett-Packard Company for Gome. It will improve the operation of Gome and lay a solid foundation for the future profits of Gome. At present, more than 1500 Gome employees are learning to use this system. This year, all stores in Gome will use the system in October 1st.

In addition, Zhang Dazhong also pointed out that, in addition to the original competitors, Gome is also facing challenges from other formats, especially the impact of online shopping on traditional appliance stores. But Zhang Dazhong also revealed that Gome has already attached great importance to e-commerce. It has inspected the situation of e-commerce at home and abroad on a large scale, and has continued to study the successful experience of best buy and some Japanese e-commerce enterprises. In addition, Gome has tried electronic commerce through different forms. In addition to last year's acquisition of the Coba network, Gome's online shopping business began to run in full swing in May. In Zhang Dazhong's view, Gome has a wealth of sales experience, and other e-commerce sites do not have the advantage, although late start, but as long as we seize the trend of e-commerce, Gome can also make great achievements.