Ningbo Lishi Group: Planned Sales Of More Than 13 Billion Yuan In Three Years

Some time ago, I watched the televised broadcast of Liu Xiang's game in the United States. After watching it, I suddenly felt some emotion. In fact, as an enterprise, we are also engaged in a "hurdle race", or an endless race. The goal is transformation and upgrading.

In the "competition" of "Lishi", I can now say proudly that in the past few years, by implementing the strategy of "optimizing two and entering three", we have broken the "ceiling" of the development of traditional export processing enterprises, achieved the first leap from "traditional manufacturing" to "modern commerce and trade", and laid the foundation for further transformation and upgrading during the "12th Five Year Plan".

open market No environmental pollution

In retrospect, the first leap from "traditional manufacturing" to "modern commerce and trade" was not easy.

At that time, six years ago, we just acquired Hong Kong Tongda Industry (Group) Co., Ltd., and became the top player in Asia's plastic household products industry.

But just at this time, we felt the "growing pains": after the acquisition, the enterprise's development slowed down, and it was urgent to find new profit growth points; Low cost, low price competition and extensive economic growth mode need to be adjusted; Foreign trade business is mostly large customers, and the potential risks are self-evident.

Yes, it must be transformed and upgraded, but how? At the beginning, I was also very tangled, and finally chose the development path of "optimizing two into three". That is, while optimizing and upgrading the manufacturing industry, I entered the tertiary industry - trade circulation industry. The first move was to acquire the old brand commercial enterprise in Ningbo - New Jiangsha Co., Ltd.

It is easy to understand "excellent second", why "enter third"? At that time, I joked with my employees that "opening malls and supermarkets will not pollute the environment." However, the most important reason is that I saw the huge potential of Zhejiang's domestic demand market. Zhejiang people have money in their pockets, the government has done a good job in social security, and the domestic demand market has unlimited development prospects.

Today, our business chain has fully covered various retail formats including large department stores, shopping centers, supermarkets, and has quickly entered the third and fourth tier cities. In 2010, the total operating revenue of "Lishi" was 8.5 billion yuan, accounting for 60% of the total revenue of commercial circulation industry. {page_break}

"Going to the countryside and mountains" for business

In business, we are latecomers who must have new ideas. Therefore, unlike others who run shopping malls and supermarkets to gather in urban areas, we "go up to the mountains and down to the countryside", focusing on rural markets dominated by counties and townships. The specific tactics I can summarize are: "chain operation, market segmentation, rapid distribution".

First, chain operation: no matter what kind of business, we all adopt chain operation for department stores, supermarkets, or shopping centers. New Jiangsha Department Store has Ningbo Jiangdong Store and Jiangshan Store; There are Quzhou stores, Changxing stores, Jishigang stores and Hangzhou Bay New Area stores in Xinjiangsha Shopping Plaza; Xinjiangxia Supermarkets are located in counties, cities and towns around Ningbo. At the same time, Lishi Department Store Yinzhou Store, Haiyan Store, Xiangshan Store, Tonglu Store, Zhenhai Store and other large department store chains will be opened.

Second, market segmentation: subdivide the target market, set Zhejiang Province as the current target market, and adopted the strategy of "surrounding the cities from rural areas", focusing on the third and fourth tier cities and township markets, avoiding large and medium-sized cities where commercial competition has become increasingly fierce; Subdivide the business type and level. The target customers of New Jiangsha Department Store are wage earners and citizens. Lishi Department Store is a medium and high-end consumer. New Jiangsha Supermarket serves rural consumers. New Jiangsha Shopping Plaza is similar to an urban leisure complex; Subdivide the store size. The department store is generally opened in the county seat, which is the largest and most high-end in the location. The shopping mall can quickly form a business circle. Supermarket stores opened in villages and towns are smaller than Carrefour and other large supermarkets, and larger than ordinary supermarkets, realizing farmers' desire to visit supermarkets at home.

Third, rapid distribution: as of 2010, Lishi has owned 10 large department stores, shopping malls and 40 chain supermarkets, with annual sales of more than 5 billion yuan. On average, 2 department store chains and 8 supermarket chains are opened every year.

In the future, we will also accelerate the business chain. It is planned to build 25 large department store chains and 120 chain supermarkets in the next three years, with sales of more than 13 billion yuan and more than 10000 jobs for the society.

Transformation does not lose the old bank

"Lishi" made its fortune in manufacturing. When considering transformation and upgrading, I never thought of losing my old business. Because I think, first, we have not achieved the ultimate in manufacturing, and there is still much room for improvement; Second, manufacturing is related to employment and is a social responsibility that Chinese entrepreneurs must bear.

If you don't give up, you should do well. Doing well is to increase the research and development of new products, implement the brand strategy, and transform household goods manufacturing from low technology and low added value to high-tech and high added value.

But to do it, we must make a real and great determination.

In recent years, we have resolutely eliminated some products without market prospects, invested 150 million yuan in R&D, developed a batch of new products with high added value, and launched 2 new products every week on average; The injection workshop, filling workshop, air compression system, cooling system, etc. were energy-efficient transformed, successfully passed the national environmental clean production audit and acceptance, and the plastic products met the international health and safety standards; The international marketing network has also been promoted with unprecedented strength. Since 2006, more than 10 overseas branches and offices have been established in the United States, Germany, South Africa, Dubai and other places.

With this in mind, when the financial crisis broke out in 2008 and the household goods industry encountered difficulties such as market shrinkage and price decline, the market share of "Lishi" continued to expand: sales increased by 15% year on year in 2009 and 40% in 2010.

Now, we are more convinced that as long as the transformation and upgrading, the manufacturing industry will be promising. In October last year, we acquired two high-tech enterprises and entered into a new and growing manufacturing field.