Wanda Occupies Three Or Four Line Cities

In 2015, Wanda held 25 million square meters of property and became the largest real estate company in the world.

But Wang Jianlin is obviously not satisfied with such achievements.

He believes that the development speed of Wanda Plaza will double after throwing away the real estate capital.

"We will gain greater competitive advantage and go all the way to the three or four tier cities to occupy all physical market space.

In 2020, the Group owned and operated the property area would be equivalent to the total number of immovable companies in the world and exclude all competitors in mainland China.

However, some industry analysts expressed some puzzled Wanda's bold move.

Many housing companies are now returning to the first and second tier cities. Why do Wanda go the opposite way and concentrate on expanding small and medium-sized cities, where housing prices and rents are so high?

"This is not a deep understanding of real estate.

The core index of real estate is not the price of housing and the rent per unit square meter, but the ratio of rent to return.

From the rent to return ratio, the first and second tier cities may not be as good as the three or four tier cities, because the land price of the first and second tier cities is more expensive and the investment is bigger.

Wang Jianlin said.

In Wang Jianlin's eyes, the blue ocean of China's commercial real estate is not in the first tier cities with high profit margins and partial overheating, but the three or four line cities that are very scarce in commercial resources.

He then said that heavy assets mainly focus on housing prices, and high sales profits can make investment difficult to enter the development of the three or four tier cities.

Light assets are pure investment, no sales, no need to care about housing prices. As long as the urban population is enough, the rent return is better than the right one.

In addition, the land price of the three or four tier cities is relatively cheap, and Wanda is easier to get the central location.

According to Wanda's calculation, a three or four line city with a population of 4.5 million can fully carry a large Wanda Plaza, and the consumer loyalty of the three or four tier cities is even higher.

For example, Wanda has opened 7 Wanda Plaza in Shanghai, and will increase to 20 in the future, but it can only affect a fraction of Shanghai's population. Moreover, some regions have no investment space.

But the three or four line cities are different. A Wanda Plaza can cover all the population.

For example, in Langfang, Hebei, there are less than 400 thousand people in the urban area.

According to the statistics of Wanda, 40 thousand -5 million people spend every day in Wanda Plaza, which is equivalent to 1/7 of the total urban population.

It is learnt that the economy is not developed in Wanzhou, Chongqing, before the arrival of Wanda, also hesitated for a long time.

"The local government has invited Wanda to build Wanda Plaza many times, and the report given by Wanda development department after investigation is biased."

Wang Jianlin recalls.

Finally, with the help of "poverty alleviation" mentality, Wanda Plaza was settled in Wanzhou.

What Wang Jianlin did not expect was that when the Wanda Plaza opened in Wanzhou, it broke the traffic record of Wanda Plaza, and the passenger flow reached 1 million 100 thousand passengers in the first three days. That is to say, most of the Wanzhou citizens went to the public within three days.

At present, there are still 50 thousand -6 passengers per day.

"Many places (three or four line cities) do not talk about large-scale complexes, not even a multi hall cinema."

Wang Jianlin said.

Although the unit price is slightly lower, the total population is large and the consumption loyalty is high. It is easy to form the commercial single center of Wanda Plaza and become the first choice for the consumption of the public.

From the analysis of income data of Wanda cinema, more than 70% of the growth comes from three or four line cities.

The industry generally believes that the development of the three or four line cities

The biggest challenge is

In general, enterprises are afraid to go in because they can't recruit businessmen.

But this does not seem to be a problem for Wanda.

Wang Jianlin said that Wanda has more than 5000 businesses that have signed cooperation agreements, many of whom are close partners. Wherever Wanda goes, they go there.

Moreover, from the rate of return on investment rents, the three or four tier cities are higher than the first and second tier cities, which is a good opportunity for Wanda development.

In the future, after the success of a series of weight-loss plans, Wanda's expansion goal is to open 400-500 Wanda Plaza in 2020, and strive to open 1000 Wanda Plaza in 2025.

It is reported that this is nearly double the number of targets before "weight loss".

At that time, Wang Jianlin set the goal of opening 240-250 squares by 2020.

It is worth noting that in Wang Jianlin's light capitalization strategy, he attached much importance to the marginal effect of Wanda's light capitalization.

Such as the Wanda cinema listed on the Shenzhen Stock Exchange, most of its studios are in Wanda Plaza. As long as Wanda Plaza is "Crazy" expansion, the development speed of Wanda cinema is naturally followed by crazy growth.

Another example is Wanda children entertainment company.

Founded last year, it opened 9 stores in the first year. If it is developed according to the development of Wanda Plaza, it will soon become the world's largest entertainment business for children.

And the number of Wanda Plaza is expanding, and it can also provide more resources for Wanda to do O2O, Internet Finance and so on.

It is pointed out that when Wanda Plaza covers all the provincial capitals, prefecture level cities and major counties in China, the annual consumption of Wanda will exceed 10 billion people, covering 700 million -8 billion.

And these consumption data are not only shopping data, but also consumption data of culture, entertainment, catering and so on.

"Compared with the general electricity supplier, our consumer data link will be more complete and accurate.

This provides the best foundation for Wanda to provide consumer loans and Internet finance. "

Wang Jianlin said Wanda is developing "cloud POS", which will master millions of POS machines in Wanda Plaza and get cash flow data from all merchants.

Immediately, Wanda Internet financial business will follow up, giving loans to merchants, and repaying the principal and interest every day.

Compared with traditional banks, Wanda loan has lower cost and less risk.