Huarun Wanjia Hong Jie To Seize The Future Of China'S Retail Industry

If we want to find a touchstone or experimental field in China, Hongkong, which has a population of about 7000000, is by no means the best choice.

Because the area is too small, many international retail giants are also very difficult to launch here.

However, the Huarun group, which was born in Hongkong, China, is based on Hongkong and sees the future of China's retail industry.

Around 2000, Huarun group began to study whether retail industry should be taken as its strategic industry.

At that time, Huarun was looking for an industry that could continue to grow. After research, it was found that the retail industry had strategic value, and most of the world's top 500 came from the retail industry.

But the reality of the Chinese market is that the international giants such as WAL-MART and Carrefour began to take shape in China in the mid 90s of last century.

These international retail giants are experienced in management and have first hand advantages. Are there any opportunities for latecomers? But an interesting phenomenon is that retail industry is often a strong dragon without pressing a snake. Huarun Wan CEO Hong Jie said, "in short, WAL-MART is more powerful. It is not the first to go to Britain, it is not the first in the Japanese market, so is it in Korea."

Can all of this happen again in the Chinese market?

This research conclusion is very exciting. At that time, the retail industry in China was still dominated by foreign giants, and the shopping mall mode was in the ascendant.

At that time, Hong Jie had worked in Hongkong for 8 years, and he did not expect that the biggest retail giant in the future, Huarun retail (original Huarun Wanjia), will merge with his personal career trajectory, and the layout of China's retail industry after ten years will change accordingly.

More importantly, he eventually became the one who pressed the button of change.

Huarun's advantage lies in its natural internationalization.

Of the four chief negotiators of China's WTO, three came from Huarun group.

Over the years, this international gene has played a role in the pformation of China's retail industry.

Hong Jie, who has worked in Huarun Hongkong for 10 years, has a deep understanding of this. Internationalization is a spatial perspective, rather than just copying international experience.

"Not only do we need to know the competitors and understand the market in the areas we operate.

You may also need to learn from the experience of international colleagues who are not in the region you operate in the global region. "

This International Personal inheritance also determines the role of Hong Jie later.

At Huarun's Wanjia headquarters in Shenzhen, hung Jie walked into the conference room alone and sat down in front of him with a roll of paper marked with TESCO logo and Huarun Yi Bao mineral water.

This is naturally associated with the biggest acquisition in the industry.

In August 2013, Huarun and Tesco, the largest retail chain in the UK, issued a memorandum of understanding, announced the establishment of a joint venture in China, and the approval of the Chinese government authorities in May 2014.

In the subsequent open letter, hung Jie wrote, "history needs us to write.

I want to borrow 70 years ago, when the British Prime Minister Churchill of the World War II celebrated the battle of the battle of the battle of Al Armen (Allied armies from a strategic defensive to a strategic counteroffensive), we shared it with all our Huarun colleagues: "Nowthis is not the end. It is not even the beginning beginning".

This is indeed the time to write history. People familiar with the history of World War II know that in Churchill's comment on the battle of the battle of Al Arab, there is a more famous sentence, but perhaps because of its strong gunpowder flavor has not been mentioned by Hong Jie.

"We never won a battle before the battle of alaman, but after the battle of alaman, we were invincible."

I wonder if it is the same meaning that hung Jie has given to TESCO in the heart of the acquisition of the new service? Will this be the turning point in the Chinese retail industry? At least, hung Jie himself has said that since then, the pattern of the three pillars of China's retail industry is being changed.

Of course, the history of a country's business evolution can not be equated with the history of war, but it is certain that this is indeed the moment that hung Jie is waiting for.

Or this is the moment he needs to create.

To this day, Huarun's CEO Hong Jie is still mysterious.

In addition to the open letter mentioned above, Hongjie himself can express his keynote speech at the sixteenth China chain industry conference in 2014.

On Baidu encyclopedia, there is not even an independent entry to the head of the first retail brand in China.

You said he was too low-key, he would think that peers are very low-key, which is determined by the nature of the industry.

But in the eyes of peers, Huarun is not only the largest retail chain in China, but also the unpredictable industry variable.

Hong Jie took over the Huarun business in 2009. At that time, it was the financial crisis. But as CEO's Hongjie, he made a surprise trip with one hand.

At the bottom of China's economic cycle, Huarun began a counter cyclical expansion, accelerating the looting of market share.

Every year, Huarun's 10000 stores sell more than 70 stores. The result of this expansion is the rapid opening of the gap between the main competitors and the Huarun's leading position in scale.

Later, hung Jie recalled that he knew that the competitiveness of the local retail industry and foreign giants remained relatively large.

After all, for a long time, foreign retail giants are "masters", while local retail businesses are "disciples".

If we only talk about the "martial arts" of the retail industry, the disciples who follow step by step will not be able to surpass the master in the short term.

"Chain retail it is a business form, it is developed from Europe and America, so the local retail enterprises in China are in fact imitating learning."

Hong Jie also believes that local enterprises are inadequate in the accumulation of core competence in the retail industry.

"So it has always been said to be big but not strong. We also admit that the reason why we are big and not strong is one of the core competencies of retailing, one of which is organizational capability, and these two are short boards."

If you want to surpass the master, the apprentice must find another way.

Hong Jie, a keen observer, realized that being big and not strong is not enough to dominate the world, but "growing up" is still a necessary step.

Huarun's acquisition of genes has always been a unique feature, which has become an important means for Huarun's rapid expansion.

Hong Jie admitted that this is a shortcut. "In this time window period, Huarun has achieved 100 billion yuan from billions of dollars in the past ten years. I think it is right to do so now."

In the battle of the AAH man, British general Montgomerie was famous for defeating Desert Fox Rommel.

Now it's the turn of hung Jie to play the role of fox hunter.

After becoming bigger, Huarun has more calmly space to solve the problem of strength. "We used this strategy to drive the scale growth, and at the same time, we also suffered from the inefficiency of weak capabilities, so before and after 2011, we have been thinking about how to build up the core competency quickly."

Hong Jie recalls.

From the beginning of CEO, there are two roads in front of Hongjie, the first is to explore slowly, and the second is to inherit the characteristics of Huarun and to integrate external resources.

From Huarun's genes and Hong Jie's habits, it is obvious that the second way is more in line with Huarun's appetite.

And later facts proved that hung Jie was not willing to slow down the scale expansion for the development of internal expansion.

"As commander in chief, it is necessary to see the concept of speed of military forces correctly," Hong Jie said. "If you slowly grope, it means that you have to spend a lot of energy, so my extension will be slow.

In the current market, it will be very difficult for us to draw a long distance from our counterparts. "

On the other hand, the successful history of Huarun brand cooperation proves that the second roads can go through.

Whether it is cooperation between Huarun snowflakes and foreign giants, or the cooperation between Yi Po and Kirin company in Japan is an example.

Well, when Huarun million needs to be more sophisticated in retail technology, TECOS, which is good at membership management and information system, is undoubtedly the right target.

In 2013, Hong Jie joined the China Chain Store Association to take part in an industry seminar in Tokyo, Japan, and made a report entitled "win win the Chinese market together".

Now it seems that this report is the focus of Huarun's win-win cooperation.

In October 2, 2013, Huarun and TESCO signed a cooperation agreement in London.

Hong Jie wrote later: "Huarun has returned to Shanghai with the largest mergers and acquisitions to date in the Chinese retail industry, the height of the Chinese retail market and the top three in the Shanghai market.

The surging Huangpu River, with thousands of sails, has witnessed several rounds of closed and open China, and witnessed the ups and downs of numerous merchant giants. Now, the Huarun retail business started from Hongkong has gone on for 30 years and has opened a new starting point with international standards.

Unlike Hongkong, Shanghai, an international metropolis of tens of millions of people, is more tolerant to all kinds of retail formats. From Hongkong to Shanghai, it means a more powerful and multifaceted Huarun family.