What is Wanda Electric business planning?

Hand Tencent, Baidu, Wanda Electric business rapid expansion. The latest figures show that two internet investment funds bought a 5% per cent stake in the company at a cost of 1 billion yuan, which means that in just a few months the company's valuations have been injected at $5 billion trillion, up from $20 billion trillion today (about 3.218 billion dollars).

Although this figure is a far cry from the valuations of the electric giants such as Ali and Jingdong, the company is already in the forefront of the industry, compared with the US dollar, which is less than $2 billion trillion, and only 752 million dollars. In the days before the financing, Wanda announced the acquisition of Third-party payment platform for fast money, which means that Wanda electric business system has been further solid.

In the year of 2014, Hong Kong stocks ushered in the largest IPO commercial real estate, and on the eve of the IPO, Wanda Group chairman Wang said: "In the face of the electricity business to actively innovate, passive catering can only die." ”

But despite the many good news, high-level attention, the company in the electric bubble in the son of a few years of pounding in companies still haven't been able to toss out how much actual sound.

More to the attention of Wanda is that in the traditional ultra and department stores in the area Wanda layout basically failed. Data show that Wanda's revenue in 2013 only completed the adjusted plan of 91%, net profit Shang 7%. This is the first time in the history of Wanda department store has not completed the profit plan, but also the group's only to complete the poor indicators of the company. Recently, Wanda is planning to operate a poor three or four-line City of Wanda Plaza in Wanda Mall closed, make room to reintroduce food, experience style and other attractions to attract popular shops, involving the closure of the adjustment of Wanda department store about 10.

Good news pouring but still no actual handwriting, Wanda Electric business is planning what?

Impact O2O

December 23, 2014, Dalian Wanda Commercial Real Estate Co., Ltd. is officially listed on the Hong Kong stock Exchange. Media interview Wang said that Wanda electric operators in the actual operation, the maturity of the fundamental depends on the development of cloud computing, cloud computing development in the three quarter of 2015 successful development, the fastest will be available in the four quarter.

Some commentators have pointed out that Wanda commercial real estate has been able to become the most expensive companies to raise capital in Hong Kong last year, relying on its distribution in the field of electric business. In the internet has been hot hold today, line online under the combination of electric quotient stories can always cause the capital market unlimited interest and conjecture.

At the opening ceremony of the 100th Wanda Plaza, Wang said: "The three major industries of Wanda's culture, electricity quotient and tourism will become Wanda's new troika." ”

News shows that Wang has not directly managed commercial real estate, but will be a considerable amount of energy on the O2O. According to the Wanda Plan, the O2O platform will be officially online in the three quarter of this year. To this end, Wanda from the planned listing of the asset package stripped of the Xishuangbanna International Tourism Resort Development Co., Ltd., Qingdao Wanda Yacht Industry Investment Co., Ltd. and Dalian Jinshi Cultural Tourism Investment Co., Ltd., will be the total stake of 4.135 billion yuan to sell to Wanda Holding company.

As of June 30, 2014, Wanda has 178 property projects in 112 cities in 29 provinces of China, of which 168 are located in 110 cities. Wanda estimated that 2014 to Wanda Plaza, hotels, resorts will be more than 1.5 billion consumers.

These data show that Wanda has the industry's unparalleled advantages of offline resources. It is also because of this, people look forward to Wanda's unique electric dealer's road preparation. But at present Wanda Electric business distance oneself of expectation still have a certain distance, once of Wan Hui Net and Wanda app development are not satisfying.

Holding hands money

December 26, Wanda Group in Beijing and the fast-money company signed a strategic investment agreement, access to Quick money control, this is Wanda in the Internet financial field of the first merger. The agreement shows that after the merger, the fast money remains independently operated. According to people familiar with the matter, Wanda shares the fast-money transaction price of about 2 billion yuan.

This is Wanda since the construction of "Teng million" electric Company since the largest action, marking the official Wanda Electric Network in the core of the financial sector layout. For Wanda, despite its huge offline business platform, but has been trapped in the payment field, open the network, in addition to download some coupons, and there is no online payment method; online, the Merchants in Wanda shopping malls use their own payment tools, and it is difficult to convert traffic to valid data. After the acquisition of fast money, it means that Wanda Electric can have a mature third party to pay the use of its O2O business development has great help.

According to Iris data, the third quarter of 2014 China's third party internet payment transactions in the size of the share, Alipay accounted for 49.2%, Tenpay accounted for 19.4%, UnionPay business accounted for 11.6%, fast money accounted for 6.9%, ranked fourth.

While the market share of the giant's Alipay is far from the same, there is a fair share of the fast money in China's third-party payments industry. What's more, in the successful running with the fast money, the partner's tenpay and micro-credit payments can form a good interaction with Wanda Electric.

However, after the acquisition of fast money, does not mean that Wanda electric business in this smooth sailing, in the Tencent Technology, Wanda Electric dealer at least face two challenges.

Talent dilemma

In the past, Wanda's personnel flow has been the media attention.

April 2012, Alibaba senior director of international trading technology Yi Yitao joined Wanda Electric Business, December 15, million people recruitment, high salaries to hunt for electrical talent; the second year August, Wanda IT department took over Wanda Electric business, many team members left; March 2014 end, Yi Yitao separation; Wanda Electric Business COO Mahaiping (Micro-Bo) resigned, and Mahaiping's predecessor Liu Sijun in Wanda Electric business Time is also very short, then the original luxury goods network COO Donze as the CEO, the former vice president of high Peer network Gaoxiapinghu as COO, the original United States New Egg network in the Los Angeles area CIO Cao Dajun as CTO. In addition to the frequent changes in the executive, there are a large number of middle-level loss, the former employees of Wanda Electric Technology revealed to Tencent, in the last year or two, the middle of the loss rate of more than 50%.

But within Wanda, the business has a position unmatched by other lines of business. Wang in 2014 Wanda Group six months working Conference on the special instructions to the electric business, in order to break the internal barriers, all online resources to the electric company, said this is not a requirement, but discipline. Wang said that can not use the real estate thinking mode to think about the development of electric business, to give the power of innovation, decision-making, financial autonomy, but at the same time Wang also cautioned that "letting go does not mean laissez-faire, but also strong supervision." ”

This is Wanda corporate culture of the military rules, there are familiar with Wanda Real estate reporters to Tencent technology, Wanda's enterprise core is always unconditional implementation, in this culture, Wanda internal divided into "Xu three" and "talent" two factions. The former will pledge allegiance to Wanda, no matter what policies are always implemented, while the other wants to get a wider sky and break the closed management model of Wanda. And the last to leave is often more capable of "talent" pie, the remaining is the faithful implementation of the order "Xu more than three."

Yi Yitao After leaving the media interview said: "In Wanda, usually first with PPT model to report to the leadership, all things need leadership approval to do." Our Internet business people do not have this habit, our thinking is divergent-think of where to say where. And the company's management, Internet enterprises are flat management, very few similar to the situation of administrative orders. ”

If the core problem is not solved, the talent dilemma of Wanda Electric Business will continue.

Commercial Real Estate Bubble

More to the attention of Wanda is that its core business commercial real estate prospects are not bright.

Ten years ago, commercial real estate based on commodity trading, floor classification clear as the main features, with the improvement of people's living standards, consumers to the quality of life requirements began to improve, Wanda seized the tuyere flew up.

But commercial real estate is heading for the bubble phase, according to Rand Consulting President Song Yanqing, at present, commercial real estate bubble mainly in three aspects: first, the development of sales links, on the one hand, high inventory, on the other hand, the potential supply of huge; second, investment links, the difficulty of investment, vacancy rate is high, the third is the operating links, business operators difficult, developers low returns. Some data show that the new commercial building area of China's shopping center will be more than 35 million square meters and 44 million square meters respectively, by the end of 2013, the total stock of shopping malls will reach 250 million square meters.

Wanda is a typical cash-flow rolling asset, a heavy asset model, but the return on rents is very low. In 2011, the rental income of Wanda was $3.46 billion and 2012 was $5.207 billion. In 2012, Wanda's total assets amounted to $300 billion, with a revenue of 141.68 billion yuan--a mere 3.68% of rental income, which was only slightly higher than the deposit of banks.

According to the survey data of the RAND consultation, China's listed housing enterprises have commercial real estate, the holding of property rental income generally accounted for the annual operating income of 3%-5%, the high reached 7%. Relative to the holdings of property assets, rental income accounted for only about 1.5%, while operating profit is mostly negative. More frightening is the rising vacancy rate for domestic commercial property, which shows that the average vacancy rate for China's second-tier cities in 2012 was 10.5%, up from 2011 's 10.2%, while in first-tier cities the vacancy rate rose from 7.9% in 2011 to 8.4%.

These data and reality prove for Wanda Group, Wanda Electric Business is not only means the transformation of businesses, may be Wanda Group's only Lifeline.

After getting a lot of financing and buying fast money, Wanda should be able to walk on the right path, but ultimately it depends on how to do it.