Ningbo Lishi Group: Planned Sales Exceed 13 Billion In Three Years.

Ningbo Lishi group

Some time ago, I watched Liu Xiang's TV broadcast in the United States. After watching it, I suddenly felt some emotion. Actually, we are doing a "hurdle race" or an endless competition. The goal is pformation and upgrading.

In the "competition", I can now say with pride: in the past few years, through the implementation of the strategy of "two plus three", we have broken through the "ceiling" of the traditional export processing enterprises, and achieved the first leap from "traditional manufacturing" to "modern business and trade", laying the foundation for the further pformation and upgrading of "12th Five-Year".

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Now recall that the first leap from "traditional manufacturing" to "modern commerce" is not very easy.

At that time, that is, 6 years ago, we just acquired Hongkong Tongda industry (Group) Co., Ltd., and sat on the top of Asian plastic household products industry.

But at the same time, we feel the "growing pains": after the takeover, the development speed of enterprises is slowing down, and it is urgent to find new profit growth points. Low cost, low price competition, extensive economic growth mode needs to be adjusted urgently; foreign trade businesses are mostly large customers, and potential risks are self-evident.

Yes, we must pform and upgrade, but how to turn it? At the very beginning, I was very entangled. Finally, I chose the development path of "excellent two into three", that is, in optimizing and upgrading the manufacturing industry, we entered the third industry -- commerce and circulation industry. The first move was to acquire Ningbo's old business enterprise, new JIANGSHA joint stock company.

"You two" can understand why we should "enter three". At that time, I joked with my staff, "opening up shopping malls and running supermarkets without polluting the environment."

However, the most important reason is that I have seen the great potential of Zhejiang's domestic demand market. Zhejiang people have money in their pockets, the government's social security has been well done, and the domestic demand market has boundless prospects.

Today, our commercial chain has fully covered all kinds of retail formats including large department stores, shopping centers and supermarkets, and has quickly entered the three or four tier cities.

In 2010, the total operating income of "Li Shi" was 8 billion 500 million yuan, and Commerce and circulation industry accounted for 6 of the total revenue.

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Go to the countryside to run business

In commerce and trade, we are latecomers, and later must have new ideas.

Therefore, unlike other supermarkets, we are going to "go up to the mountains and go to the countryside". They mainly attack the rural market dominated by counties and townships. The specific tactics are summarized as follows: "chain operation, market segmentation and quick distribution".

First, chain operations: department stores, supermarkets or shopping centers, no matter what kind of business format they are, we all adopt chain operation.

The new JIANGSHA department store has Jiangdong store and Jiangshan store in Ningbo. The new jiangha shopping plaza includes Quzhou store, Changxin store, Ji Shi Gang store and Hangzhou Bay New District store.

At the same time, Yinzhou department store, Haiyan store, Xiangshan store, Tonglu store, Zhenhai store and other large department store chains were opened.

The two is subdividing the market: subdividing the target market, setting Zhejiang into the current target market, and adopting the strategy of "encircling the cities by the countryside", attacking the three or four tier cities and townships market, avoiding the large and medium cities that business competition has become more and more intense, and subdividing the formats.

The target customers of new jiangha department store are the salaried class and the public. The department stores are middle and high-end consumers. The new JIANGSHA supermarket serves the rural consumers, and the new jiangha shopping plaza is similar to the urban leisure complex.

Department stores generally open in the county seat, is the largest and most high-end.

Shopping Plaza can quickly form a business circle.

Supermarket stores in towns and townships are smaller than Carrefour and other large supermarkets, larger than ordinary supermarkets, and realize farmers' desire to visit supermarkets at home.

The three is fast distribution: as of 2010, "Li Shi" already owned 10 large department stores, shopping plaza and 40 chain supermarkets with annual sales of over 5 billion yuan.

On average, there are 2 chain stores and 8 supermarket chains.

In the future, we will also speed up the commercial chain. We plan to build 25 large chain stores and 120 supermarket chains in the next 3 years, and sell more than 13 billion yuan, and provide more than 10 thousand jobs for the society.

Transformation without losing our old business

"Li Shi" depends on manufacturing industry. When considering pformation and upgrading, I have never thought of losing my old bank.

Because I think, first, we have not achieved the ultimate goal of manufacturing, and there is still much room for improvement. Second, manufacturing is related to employment, which is the social responsibility of Chinese entrepreneurs.

If you don't give up, you have to do well. Doing well is to increase the research and development of new products and implement the brand strategy, so that household appliances can be pformed from low technology and low added value to high technology and high added value.

But be determined and determined.

In recent years, we have resolutely eliminated some products with no market prospect, invested 150 million yuan in research and development funds, developed a batch of new products with high added value, launched 2 new products per week on average, carried out energy saving renovation for injection molding workshop, filling workshop, air pressure system, cooling system, passed the national environmental cleaner production check and acceptance, the plastic products reached international health and safety standards, and the international marketing network has also been promoted unprecedentedly. Since 2006, more than 10 overseas branches and offices have been established in the United States, Germany, South Africa and Dubai.

With these, when the financial crisis broke out in 2008, the household products industry suffered from market shrinkage and price decline. The market share of "Lishi" has been expanding. Sales in 2009 increased by 15% compared with the same period last year, and the growth rate reached 40% in 2010.

Now, we are more convinced that as long as the pformation and upgrading are going on, the manufacturing industry will be promising.

In October last year, we acquired two high-tech enterprises and entered a more growing new manufacturing industry.