Wanda's three major business logic

Absrtact: Wanda Group is playing an increasingly important role in the Chinese film market. It owns Asia's number one home line, and in 2012 the world's second-largest-line group, AMC, became the world's biggest cinema operator, with 2.6 billion dollars. Starting from 2013, it

Wanda Group, in the Chinese film market, is playing an increasingly important role.

It owns Asia's number one home line, and in 2012 the world's second-largest-line group, AMC, became the world's biggest cinema operator, with 2.6 billion dollars. Beginning in 2013, it began to show its beginnings in the production field and started to reach downstream of the film industry chain.

Wanda is a heavyweight "subversive" to the Chinese film industry. What logic does Wanda have behind this series of actions?

The logic of chain service

To understand Wanda, you must start with the Wanda Hospital line.

In 2005, the eve of the Chinese film Market, Wanda Group began to invest in cinemas. With the advantage of commercial real estate, Wanda has been roaring in the past ten years. As of December 31, 2013, Wanda Hospital line has five-star film City 142, 1247 screen, of which IMAX screen 89, occupies 15% of the box-office share of the country, the market share in the first place. After the acquisition of AMC in 2012, Wanda has become the world's largest cinema line operator.

As the most successful cinema management company in the mainland, Wanda mode has been used for reference by domestic peers. But the high-speed construction that has lasted for many years has also exacerbated the competition of cinemas. In the current first-line City cinema layout is becoming saturated, two or three lines of rapid development of the market, the trend of younger people, Wanda Hospital line how to maintain the competitiveness of evergreen?

Beijing Wanda Cultural Industry Group vice President Yening told the "China Radio film and Television" reporter, Wanda's competitiveness lies in strategy, some things are kungfu in the body outside, invisible. For a chain-service enterprises, the core competitiveness must rise to the platform, management and culture. Wanda has been thinking about it four or five years ago.

"Fortunately, at that time, and the world's top consulting companies to think, but also learn from the growth of other services industry rules." ”

Wanda for the hospital line has a clear positioning: The hospital line is the service industry, it serves the product is the film, all the customer's view of the value and viewing experience as the core.

In Yening view, the service industry has a lot of rules are interlinked, such as the hotel service products are living culture, Starbucks service products are coffee culture, McDonald's service products are catering culture ... Although the product is different, but the nature of the service, the logic of management is the same, all need to standardize, chain and branding. Specifically:

First, establish standards--there is no unified ability to reproduce, that is, the ability to reproduce excellent DNA. Yening to the reporter explained: "A few years ago there is a case, you have KFC, I have country chicken, and do better than you, because I am the exclusive operation." It is possible to do a shop when the country chicken, once expanded to dozens of stores, 100 stores will not. If you can't standardize and replicate good genes, the faster you develop, the quicker you die. ”

Second, the team-the development of a certain stage, the service industry is to fight the talent and team. Some people think that it is not difficult to do theater, is not to sell movie tickets and popcorn? In Yening's view, "Starbucks is a great place to sell coffee, the world's Starbucks coffee is the same experience, not that he will only sell coffee." The same is true of the best cinemas, and all the movie theaters in Wanda City are as good as they feel. Including the staff smile is the same warm, service details are the same standards, and these are to rely on the front-line service business partners to achieve, team management, training and growth is very important. ”

Third, culture-culture is the soul of the service team of excellence. It is the service industry's biggest challenge how to keep the front-line business partners working passionately in the day-to-day repetitive labor. Yening said, rely on the ideal, rely on culture. "If the team partners will each audience to the shadow of the moving, all into their own moved, and to achieve the customer experience and pride and pride, this is excellent service, but this is very difficult." Some people have been doing McDonald's employees for decades, even if they leave McDonald's will always be obsessed with, this is the power of corporate culture. ”

From standard management logic, team logic to cultural logic, Yening that the different chain service industries are the only way to the same.

"Excellent chain service enterprises these three must be balanced, some enterprises, like intimate brothers and sisters, cultural cohesion is strong, but an expansion of development, if not standardized management and team building support, there will be problems immediately." And some chain service enterprises, standardization has been made although very good, but no cultural ideas to gather the team, there will be problems. ”

A few years ago, Wanda took this logic into account, and carried it out step-by-step.

Yening Tan Chen, for Wanda People, the ideal is to do excellent film culture service. He liked the words, "We run in happiness, not because we are now bathed in the sun, but because we know that the direction of the sun will be struggling to run." "Wanda Hospital line is now in such a" running "state.

Yening's other identity is the AMC hospital line director.

May 2012, Wanda to 2.6 billion U.S. dollars mergers and acquisitions of the world's second compound AMC. Yening said that the Wanda Hospital line and AMC Hospital line maintained close exchanges and cooperation, each year Wanda has different positions of the team to the United States to communicate.

"We have learned a lot, which is not available for money, especially the management logic of AMC systems." Because the Chinese market is still in the stage of rapid growth, the logic and experience of AMC's growth in the U.S. market will be of great reference significance to us. ”

The logic of consumer demand

The theater's start was the latest in the audience. In recent years, the mainstream view of the population is getting younger, how to interpret these viewers, so that more people into the theater, become a compulsory course for people. In Yening's view, "First you need to know where your users are, observe their consumer behavior, and then interact with different movie products and their connections." China's mainstream audience is very young, now the average age of about 21 years old, active participation is very high, which is not the same as the mature audience in the West now, they are more receptive to the network and the expression of the media. ”

The new media layout of Wanda's line began four years ago. 2013 Wanda Online ticketing accounted for 20% of the total box office sales, while mobile phone mobile end consumption busy on the 30% ticket. Future mobile end consumption will occupy a greater share, this is the inevitable trend, because the young mainstream of China's audience, in life has been inseparable from their mobile terminals.

Wanda Hospital line in 2014 to accelerate and deepen e-commerce business, with Alibaba, Baidu, Tencent signed a strategic agreement, from the initial simple ticket sales, and gradually achieve deep cooperation, at the same time through a series of integration to create more revenue.

Wanda Hospital Line electric business platform in February this year through the micro-letter payment, the future audience can realize the mobile phone sweeping posters to buy tickets, "WYSIWYG"; at the same time, Baidu map will be the location of Wanda Studios labeled mobile phone interface, and will buy tickets to get through to achieve "that is to buy" the mobile Internet ticketing method.

Young viewers like to share on the Internet, Wanda has been tracking the data, as well as membership data system-not just to issue membership cards so simple, behind a database, can track everyone's consumption behavior and logical comparisons, that is, large data analysis. Yening that the core of membership data is the ability to identify consumer behavior.

"Through consumer behavior data, you can track and identify each key consumer behavior data, the audience is male or female?" What movie did you see? A few people come to the movies and so on. Wanda Hospital Line before the release of a major film, according to the characteristics of the film input some parameters, through the database to comb out the most likely to be interested in the new film viewers, and then through a number of interesting information and activities connected to the implementation of precision marketing. ”

Yening revealed that the current Wanda Hospital line members of more than 13 million members, with the world's largest film membership system. At present, their development of data is just beginning, still need a lot of effort. Wanda is constantly optimizing the site and client interface, so that members feel fun and interesting, there are more viscosity.

"We are fortunate to be in the golden age of such a Chinese film, where the Chinese audience has a growing sense of passion and vigor." Wanda 13 million members of the line, the frequency is six times a year, far above the average level. Chinese viewers are returning to theaters, enjoying the fun of watching movies, young, energetic, sharing, enjoying spending, and interacting with many interesting concepts and activities. ”

"The most fundamental and core work in the service industry is the understanding and insight of consumers, and the experience of products and services that impress them, and this is a lifelong lesson." The audience is changing, the consumption habits are changing, but as long as they understand and penetrate them, they will never be abandoned by them. ”

Yening that the truth is simple but brutal. "Nokia used to be a great company, but when its product experience didn't keep up with consumer demand, it was eliminated," he said. The biggest challenges and pleasures of the service industry are here. ”

The logic of the gardener

Yening the Chinese consumer market as the most complex market. Once, he chatted with Coca-Cola president, Coca-Cola in the Chinese market roots for many years, the business model has rigorous research. They conclude that China's consumer market may be one of the world's most complex consumer markets. However, it is this diversity and diversity that has created a vibrant market.

"China's film market is still a lot of blank opportunities, far from saturated to do business." Even the relative saturation of the market, can also upgrade product services, or can be differentiated services, product differentiation. In China, it is the world's big business to provide products that affect people's daily consumption behavior. Enterprises should be based on different product stages, different markets to do your positioning. ”

Will the future Wanda layout focus on the two or three-line city? Yening that there is no inclination to tilt the problem, Wanda entered the three or four-line cities a few years ago. The movie terminal is still in the fast development stage.

"You have to be able to run as fast as you can," he said. In the rapid development of the market, business such as rowing against the tide, and must keep a good development and management quality, can not run to dehydration, to run well and fast. ”

From 2014 onwards, Wanda in the film industry front-end frequently exerting force: "Police Story 2013", "Beijing Love Story" box office performance Bright Eye, the upcoming Xu annual large "hypnotic Master" is expected, Wanda Film and Huayi Brothers, Ray Pictures, three strong cooperation in the production of distribution, Kuo producer, Urshan director of the film epic "Ghost blows" is also about to boot.

In the film industry, the quality of the content is the core, while theater Terminal Services are also very important, two-wheel drive, either end is indispensable. At present, Chinese cinema terminals are developing rapidly, and cinema construction is in a par with world standards. and the content development, these years also slowly found the law. 2013 Domestic movie box office accounted for 58% of the total box office, Chinese audiences more and more like to see their own films. In Yening's view, the content industry has huge market space.

"In another 5-10 years, our market capacity will surely overtake Hollywood." That is to say, now sell 1 billion yuan project, by then may sell 2 billion yuan, 3 billion yuan. ”

Wanda has no doubt about the strategic layout of the content front-end, but how to do the content, Yening admits, Wanda is still in the learning stage, because the content industry management logic and theater management logic is different, although all in the film industry chain, but Theater is the chain service industry, and production is the creative industry; The production industry is riskier and harder to control.

"But they have the same reason to face the audience." So can the Wanda Courtyard line for the audience's understanding and insight, the use of content creation, can greatly improve the success rate of film products. "At the same time, Yening also stressed that" must respect the creation individuality, understands the creation law, because the creation has its own charm and the moving place. ”

Yening said that the biggest problem of Chinese film is the disconnect between creation and market, many creators are behind closed doors, do not understand and understand the expectations of the mainstream audience. Now some of the best film production companies have developed better, benefiting from having the logic to solve the problem. "They know what kind of projects to invest, how to sell, when to release--to build a logical relationship, and the movie market will move in a healthy direction." ”

Wanda is known as the cinema Line company that understands the audience, but is still learning how to turn this understanding into creation. Yening has a metaphor, "Wanda like a gardener, in the management of a garden." Our soil is good and favorable, now to cultivate into a garden, you must first choose a good seed, perhaps a creative, perhaps a script, perhaps a project or partner, Wanda must learn to cultivate the material, good cooperation, good cooperation, so as to spring, vitality. ”