The difference between Gome and Wal-Mart is that the former is a professional chain, which only deals in household appliances, while the latter is a department store chain with tens of thousands of products.
Gome's great success lies in its chosen business field, that is, household appliances, in addition to the chain model and low-price strategy. Household appliances are one of the commodities with good growth in China. In recent ten years, China's household expenditure and the purchase of large consumer goods have mainly focused on household appliances. Secondly, household appliances are products with relatively high commercial added value. Thirdly, household appliances are products that have been repeatedly built in China since the reform and opening up, resulting in a serious contradiction between supply and demand. The fierce competition among manufacturers is extremely beneficial to businesses. Whoever becomes the leader of this industry will have the absolute advantage of low-cost expansion. Fourth, general clothing, department stores and grocery products can be made regardless of their strength. Many regular department stores can't compete with street shops, and street shops can't compete with stalls. Because the latter has lower operating costs. Household appliances are different. Consumers not only pay attention to product brands and manufacturers, but also pay attention to merchants. Only big stores with strong strength, famous brands and many chain stores can avoid buying fakes, and product maintenance services are more guaranteed. In this field, it is impossible for ordinary small self-employed shops to have a competitive advantage.
Huang Guangyu's Road to Gome
In p>1985, before the tide of reform and opening up, a Chaoshan teenager decided to go out and travel like other fellow villagers. He was Huang Guangyu. That year, Huang Guangyu was only 16 years old and had not graduated from junior high school. His brother Huang Junqin, who had just graduated from high school, took him out.
Two brothers from poor families, with 4 yuan raised from their hometown, chose Inner Mongolia as their first stop, looking for business opportunities to make money. Like the merchants in Guangdong and Fujian at the same time, they sold the materials in short supply at that time through the relationship between manufacturers in Chaoshan, Shenzhen and Guangdong. After a period of accumulation, the two brothers have their first bucket of gold.
Soon, Huang Guangyu, who has a market vision, found that the Inner Mongolia market was too small and wanted to go to a bigger city for development. In 1986, Huang Guangyu and Huang Junqin went to Beijing with their first bucket of gold earned in Inner Mongolia, and contracted Gome Clothing Store at No.42 East Street, zhushikou, Beijing. On January 1, 1987, Gome clothing store officially opened, and three months later it was renamed Gome, which started Huang Guangyu's real entrepreneurial road. He was only 17 years old that year.
since p>1987, Huang Guangyu has shown his unique side. At that time, home appliances were in the seller's market, and there was no shortage of goods to sell. The Huang brothers still decided to stick to the business strategy of retail and small profits but quick turnover, while other businesses raised their prices in order to make huge profits. "In fact, there was a' forced' component at that time." Huang Guangyu recalled, "As an individual enterprise, if you want to find ways to attract customers, you must have your own things." The method he came up with at that time was small profits but quick turnover. In the face of powerful state-owned electrical appliances stores, the low-price strategy has brought many repeat customers to small Gome electrical appliances stores.
Although some people questioned its source of goods at that time, there were rumors that the source of goods introduced by Huang Guangyu was private goods, but we have to admit that Huang Guangyu is a business genius. He and Gome have left countless marks on this market, and he pioneered many retail expansion models. Nowadays, many of them have become the general models of the entire retail industry.
in p>1991, he was the first to think of using the slit in Beijing Evening News to advertise. After only buying the advertisement in the newspaper at the low price of 8 yuan every time, he put up the slogan "Buy electrical appliances and go to Gome" and published the price of electrical appliances every week. At that time, it was a behavior with advanced consciousness. Very little advertising investment has attracted a large number of customers for Gome, and the business of electrical stores is enviable.
Huang Guangyu, a small and successful man, didn't just sit back and enjoy his success. Instead, he opened a number of stores one after another. By 1993, there were seven or eight small stores. Of course, this is also its earliest capital expansion action. Subsequently, he named all his stores "Gome", which formed the prototype of the chain business model.
the growth of Gome is accompanied by the wealth growth of the Huang brothers. With the difference of business philosophy, the two brothers separated, and Huang Guangyu got the brand "Gome" and several hundred thousand yuan in cash. At the age of 24, he began to build his home appliance retail kingdom wholeheartedly, and Gome grew at an alarming rate.
In p>1993, Huang Guangyu's original small electrical facade became a large electrical mall; In 1995, Gome Electrical Appliances Mall changed from one to ten; In 1999, Gome entered Tianjin and began to move from Beijing to the whole country, and also began a large-scale national expansion; In December 21, Gome had 49 direct chain stores and 33 franchise chain stores in 12 cities. In December 24, Gome had 2 direct stores and entered the audio-visual chain industry. In 25, Gome entered the real estate industry and built the first city of Gome; In the following three years, Shanxi North Electric, Dazhong Electric and Yongle Electric were acquired respectively; In February, 28, Suning Appliance, the biggest competitor, successfully acquired Sanlian Trading Company.
Up to now, Gome has become the undisputed first giant in the domestic home appliance retail industry.
in p>1998, 29-year-old Huang Guangyu did two things.
First, Pengrun Investment, a subordinate real estate company, was established, and a backdoor listing in Hong Kong was realized, laying the foundation for the national expansion starting next year;
secondly, the preparation of Gome's Management Manual, which was later called "Little Red Book", laid a theoretical foundation for Gome's expansion in the next 1 years.
In 1999, when Gome entered the country and took a key step to establish a national chain network, Huang Guangyu entrusted the post of general manager of Gome to his brother-in-law Zhang Zhiming, and founded Pengrun Investment Co., Ltd. with total assets of about 5 billion yuan, and retired behind the scenes to carry out capital operation. Then in 2, when Gome was in full swing, Huang Guangyu suddenly reduced his stake in Gome. After that, everyone gradually realized that he was already playing the "left-handed upside down" capital game.
"Interaction, mutual assistance and complementarity" has always been Huang Guangyu's investment philosophy. Gome used the cash flow from commercial operations to complement real estate, and achieved good synergy. In Beijing, where housing prices remain high, Huang Guangyu also wants to "use the model of making home appliances to do real estate". Pengrun Jiayuan played the price card more than once.
The industry's impression of Huang Guangyu can also explain the problem. When Gome carried out the rapid expansion of the national chain, Huang Guangyu put a lot of time and energy into the operation field, and was in close contact with all major household appliances enterprises in the country. However, with the opening of thousands of Gome stores in China, Huang Guangyu, whose value has increased, has gradually "faded out" of various meetings held by manufacturers.
At the beginning of p>2, Huang Guangyu set his sights on the Hong Kong stock market with a relaxed investment environment and began a series of dazzling capital operations. Huang Guangyu got his hands on Jinghua Automation (later renamed China Pengrun and now Gome), and after many complicated steps, he subscribed for shares in cash to gain a controlling stake (as shown in the following table). On October 26, 22, Huang Guangyu returned to Gome. Subsequently, Huang Guangyu made the biggest adjustment to Gome's high-level personnel and organizational structure in recent years. The frequent changes in Gome within one year even caused deep doubts in the industry.
in p>23, Huang Guangyu established "Beijing pengrun yifu network technology co., ltd", which is fully controlled. Gome Group put all the shares of 94 stores into Gome, with Pengrun Yifu holding 65% of the shares and Huang Guangyu directly holding the remaining 35% of Gome. He began to reorganize Gome. It is worth noting that he holds Gome shares and company name. The ratio of 65: 35 is to avoid the restriction of the Ministry of Commerce that the proportion of foreign retail enterprises and foreign shares must be below 65%. Registered "Beijing Pengrun Yifu Network Technology Co., Ltd.", borrowed the preferential tax-free policy of domestic high-tech enterprises, and avoided the huge income tax to be paid for the sale of equity.
Huang Guangyu is notoriously quiet. In 23, as the president of Pengrun Investment, the general manager of Gome Electrical Appliances Co., Ltd. and the chairman of China Pengrun Group, Huang Guangyu made only two public appearances. Huang Guangyu's low-key also brought a negative evaluation of "no tone" to Gome. Some analysts pointed out that Gome, which has a high rate of public concern, can't see the socially significant operational experience or theoretical products produced by actual operation. The lack of theoretical elements in packaging has caused the Gome brand to have insufficient height and theoretical depth. Whether it can continue to operate effectively under family centralization is the biggest test for Huang Guangyu.
You can see a book "Huang Guangyu said" at your fingertips in the headquarters building. According to the book, Huang Guangyu began to study Hong Kong's securities market, the methods of capital operation and the exchange rate policies of various countries very early. It is not difficult to understand that such a complicated but flawless capital operation method must have been carefully planned and prepared by Huang Guangyu for many years.
after capital operation, it is followed by the accumulation of wealth. In 24, he successfully climbed to the top of Hurun's wealth list with a value of 1.5 billion yuan. But he left an impression not only on the young founder of billions of dollars, but also on his bald head and the phrase "I don't have enough money to spend".
"Money is not enough to spend", he continues the road of capital operation-cashing in crazily and increasing investment. In 25, Huang Guangyu ranked first in Hurun's wealth.
on April 6th, 26, Huang Guangyu announced that he would sell no less than about HK$ 1.2 billion of Gome shares by private placement. This is the third time that Huang Guangyu has cashed in the international capital market since September 24. Three times in three years, he cashed in nearly 4 billion Hong Kong dollars from the international capital market.
on October 31, 27, Huang Guangyu cashed in 9.3 billion yuan by selling shares in the "Hurun Rich List 27" released by Hurun, becoming the richest man with the most cash.
In p>24, it was pointed out that Gome squeezed the upstream payment through chain retailing to achieve short-term financing and long-term investment, and in this respect Gome played to the limit.
observing the Huang family's real estate investment system, we can easily find that Huang Guangyu's best trick is actually to build an internal financing fund platform between the retail industry and the real estate industry, and devour the high profits of the real estate industry through short-term financing and long-term investment.
naturally, this skill of Huang Guangyu was extremely concealed, and his brother Huang Junqin was used as a cover. His official debut in the real estate industry was in early 25, and Huang Guangyu set up Gome Real Estate with the cash in the capital market.
as we all know, the real estate industry is the most obvious industry that has developed through the release of government public power, among which there are many shady businesses. The deeper private enterprises are involved, the more they are involved with the government and state-owned banks. These past events are like time bombs, and any explosion will make the scene difficult to clean up.
However, although the profits of the real estate industry are huge, the demand for funds is also extremely huge. The game of short-term financing and long-term investment has always made Gome's capital chain very tight. In desperation, Huang can only hope in the capital market to achieve his goal, go public by overestimating the value of his assets several times, and play a clever financial trick to solve the problem of financial shortage. However, Huang inadvertently harvested a by-product-the richest man topped the list.
in p>28, he cashed in 13.5 billion yuan, once again became the entrepreneur with the most cash on hand, and also ranked first in Hurun's wealth list for the third time. At this time, his total assets have reached 43 billion yuan, and he is also the second richest man to make the Hurun Rich List three times after the Rong Zhijian family.
He once said that the greatest contribution of entrepreneurs is to actively operate assets. Someone also asked him, "Are you a doer or a master of capital?" Obviously, Huang Guangyu chose the latter without hesitation. Perhaps, being a master of capital operation makes him feel superior.
Huang Guangyu's tactic is to emphasize the rapid coverage of the central city and nearby areas: every time he enters a city, he starts to set up stores intensively, from the first-tier market to the second-tier, in an effort to gain market share in the region quickly and to the greatest extent. Only after the share is established will Huang Guangyu gradually adjust his operation, sort out the process and build a management background.
In fact, the whole household appliance chain industry in China has the same initial development model.
in fact, the most important secret of the success of this enclosure movement is the "light assets" operation mode, that is, the supplier's funds are constantly occupied for scale expansion, and various fees such as entrance fees and booth fees are charged to home appliance manufacturers by opening new stores, so as to share the cost of opening stores to the greatest extent.
but this approach is not without drawbacks-too fast expansion often leads to the break of the capital chain, and countless local retail enterprises have verified this result. In order to maintain the long-term expansion speed, capital has become the most important element. In 24, Gome was listed on the backdoor in Hong Kong. Due to the attractiveness of the business model, Gome was sought after in Hong Kong, which solved the worries of Gome's expansion in funds.
In fact, this business model of "channel is king" has existed in foreign countries for a long time, because retailers have increased their bargaining power with manufacturers and gradually mastered the right to speak. Well-known retailers such as Wal-Mart and Carrefour all developed under this model.
the bigger the channel, the stronger the bargaining power with manufacturers. Huang Guangyu was not satisfied with the slow speed of self-built channels, and he began to choose acquisition.
whoever doesn't sell electrical appliances in Gome now will miss the biggest market channel.
In a sense, the past 1 years have witnessed the rise of the whole retail industry in China. From obscurity to full mastery of the channel discourse right, the home appliance retail enterprises are more vigorous than other retail industries and formats. In the long run, the power of channels will undoubtedly become stronger and stronger. When an enterprise falls down due to expansion, more enterprises will come up, but the way of expansion has never changed. This is the power of channels.
more importantly, Huang Guangyu's overbearing way of occupying channels is being accepted by more and more industries. In this era when channels are king, the horizontal integration of channels will become very fierce.
in the final analysis, as early as 26, there were negative news about Huang Guangyu. It is reported that he was suspected of illegally borrowing loans from China Bank. At that time, the situation was very delicate, and it also involved his brother Huang Junqin, and Huang Guangyu's wife Du Fu worked in the Bank of China. But then, it is rumored that with their good public relations skills, the two brothers successfully solved the crisis they faced at that time. According to the announcement issued by Gome on the Hong Kong Stock Exchange in January 27, the "assistance investigation" of the Ministry of Public Security against Huang Guangyu and Pengrun Real Estate Company indirectly held by him has been officially cancelled, and the company's crisis has temporarily passed safely.
Now, the crisis he is facing again has led him to be arrested by the police, and many mysteries remain unsolved.
The CSRC also confirmed that Huang Guangyu was related to the illegal operation of stocks. At the same time, there are also the heads of two stocks related to Huang Guangyu-ST Jintai controlling shareholder Huang Junqin and Zhongguan.