Wanda Shopping Center Faces Crisis, Wang Jianlin Formulating 2016 Three Goals

The sharp decline in the number of local shopping malls, represented by Wanda, has increased steadily.

The logic behind this is Dalian Wanda, the largest commercial real estate group in China, and is struggling to cope with the business surplus.

In 2016, Wang Jianlin set three goals for Wanda:

First, the group's service industry accounts for more than half of its revenue and net profit.

Strive for 60%.

"By the end of 2016, Wanda will no longer be a real estate enterprise, but will become an integrated enterprise. The service industry's income and net profit should exceed 55% of the two indicators.

It is estimated that by 2017, the two indicators will exceed 2/3, achieving a target of one year ahead of schedule. "

Second, Wanda commerce

Structural changes, and strive to Wanda business in 2016 more than 50% of profits from real estate sales.

Third, overseas incomes increased considerably.

In 2016, Wanda Group's overseas income accounted for 20%.

Ten thousand person adjustment

On the first day after the holidays in February 14th,

Senior executives stand for meetings.

"This year's work is more uncertain, and we need to make greater efforts to achieve this year's goal."

Wang Jianlin said so.

Efforts have been made since last year.

At the end of 2015 working conference, Wang Jianlin made a total reduction of 12% in 2016.

One of the most attractive points is that the real estate revenue target has decreased from 164 billion yuan in 2015 to 100 billion yuan.

This means that the team that generates 64 billion yuan will face adjustment. It is reported that about 50 thousand Wanda employees are facing new choices.

Wang Jianlin said that the real estate talent will only account for 1/3 of the total number of Wanda in the future.

This is consistent with the proportion of real estate revenue in planning.

At present, the total number of commercial staff in the main real estate business is around 80 thousand, accounting for 60% of the total Wanda.

In addition, the development and operation of Wanda Plaza through external investment and light asset mode of Wanda output makes Wanda no longer need a huge housing sales system to support the expansion of holding property.

It is expected to affect Wanda staff of about 30 thousand people.

It is the fourth pformation demand of Wanda to take the initiative to carry out personnel adjustment at ten thousand level.

That is, the pformation from real estate to service oriented enterprises.

In the next few years, Internet Finance and cultural industries will support half of Wanda, and even more.

In Wang Jianlin's view, achieving a successful pformation is not simply contracting business, but playing a key card in light assets.

Light capitalization

Wanda used to have four major project management centers: Wen, north, central and southern.

In order to implement the strategy of light assets, the other three major project management centers will be revoked in the new compilation, except for the original travel projects with light assets.

Such changes proved effective in the pformation of the 2015.

For example, Wanda Plaza, Baoshan, Shanghai, is the town of Wanda's light asset reform.

The Housing Manager checked the relevant information. After June 28, 2015, Wanda Baoshan Plaza was the direct docking Department of Wanda Commercial Management, and the middle operation center was cut down. The leaders of the business management headquarters directly divided 5 large shops into 71 small shops to increase the number of tenants and increase the total rental income. After the adjustment was completed, the total rental income of Baoshan Wanda Plaza increased by 38.7%.

The so-called light assets, that is, Wanda Plaza's design, construction, investment, operation, information system and e-commerce, are Wanda's products. They use Wanda brand, but all the investment comes from others, and assets are owned by investors. Wanda and investors are divided into net rental income.

This change is a way to get rid of the heavy assets operation of Wanda in the past to sell the housing and business of Wanda Plaza.

In the new mode, no matter the price change or the market cycle has little impact on this development mode, the goal of Wanda has become more simple, that is, to increase the investment income of Wanda Plaza.

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Multifaceted pformation

Compared with many housing enterprises in the pformation of the test water, Wang Jianlin cut down on the real estate business of Wanda Commercial Office. The greater the bottom line comes from: the income of the non real estate business such as Wanda culture group and Wanda financial group has been blooming in a relatively short time.

According to Wang Jianlin's work report, Wanda culture group earned 51 billion 280 million yuan in 2015 and completed 114% of the annual plan, an increase of 45.7% over the same period last year.

Through rapid mergers and acquisitions, four industrial sectors have been formed: film, sports, tourism and children's entertainment.

In addition to the tourism sector is China's first, the other three industries are ranked the first in the world according to the income scale.

Wanda's acquisition of the legendary film industry in the United States has become the largest film production company in the world.

Last year, Wanda's films made a lot of money and made Wanda sit on the top of China's private production.

If we regard the development of cultural industry as the core of Wanda's third pformation, vigorously promoting Internet finance will become the top priority of Wanda's fourth pformation.

Prior to this, Wanda moved itself from Dalian to the whole country, from residential business to commercial real estate developers as the first two big pformations.

The rapid rise of two major businesses, culture and finance, made Wanda's service industry account for 43% of its total revenue in 2015.