Wang Heng, President Of China's Department Store, Golden Eagle Group

Recently, because of the popularity of her daughter Dorothy Wang (Wang Xuanlin), Wang Jinglin has revealed that Jinying Group operates retail stores and hotels in mainland China, with billions of dollars in net assets.

Wang Heng, President of Golden Eagle Group, a wealthy dad, has also become the focus of attention.

Wang Heng, President of Golden Eagle Group, is a new member of the department store in China. How did he become a businessman?

Wang Heng, President of Golden Eagle Group, was born in Guangzhou in 1948. She grew up in Taiwan, Zhejiang and Yiwu, and emigrated to the United States in 1970.

He received his bachelor's degree in economics from Taiwan Chinese Culture University in 1969.

He received his master of business administration from Luis Anna State University in 1973.

In 1978, the US Pan Pacific [4.88% fund was established.

Mainly engaged in real estate development and hotel management.

In 1992, he was president and chairman of the Jiangsu, Zhejiang and Shanghai Association.

In 1992, Nanjing Jinying International Group Co., Ltd. was invested and established as chairman of the board.

From the first barrel of gold earned in the United States to the mainland during the period of reform and opening up, and since the creation of the two or three line urban management system and the establishment of dozens of shopping malls in the department store, Wang Heng has become a new representative of the Taiwanese businessmen in the new era.

Although the word "pride" is different from "rich", its meaning is quite different.

It is not easy to have a sense of firmness and objective external strength in one person at the same time.

The crown, which was cast with pride and Richhood, was firmly placed on a man's head. He was Wang Heng from Taiwan.

From the first barrel of gold earned in the United States to the mainland during the period of reform and opening up, and since the creation of the two or three line urban management system and the establishment of dozens of shopping malls in the department store, Wang Heng has become a new representative of the Taiwanese businessmen in the new era.

What's the price of Lin Bai Li, chairman of quanta group, and how much he is worth? 1 billion 300 million dollars allowed him to be included in the list of the 400 richest Americans in Forbes in 2008, and also a Chinese department store tycoon in Forbes's list.

The new mysterious Taiwanese businessman is Wang Heng, the founder and chairman of Jinying group, whose total assets have exceeded RMB 10 billion yuan.

A passive financial turmoil has disrupted the order of the world's original economic development.

China, as a fortress for economic recovery, is crucial to the development of related industries driven by domestic demand.

In March 18, 2009, on the news that the consumption power of mainland China's two or three tier cities was booming, the price of Jinying commerce rose more than 11% in 30 minutes after the opening of Hong Kong stock, and it was HK $4.8 (up to June 2, 2009, the price of Jinying commerce has risen 7.5 yuan). In 2008, the performance of China's department stores announced in March 26th was 28.6%, and net profit growth was 60.1%, far exceeding the 18.7% and 20.7% of the first Parkson.

Who is Wang Heng who has such a remarkable achievement? How does he become a new member of the department store in mainland China?

America gains first gold to attack mainland

Wang Heng, who was born in a financial family, did not move from Hongkong to Taiwan under the prudent father arrangement until he was in grade 4.

Because Wang Heng's father served as governor of the Bank of Guangzhou before 1949 and later to the Bank of Taiwan as head of the investment management department in charge of the new Taiwan dollar.

Since then, Wang Heng, who grew up in Taiwan, has been exposed to the information exchange and business operation mode of the financial economy.

The identity of the son of a banker has also made Wang Heng more easily exposed to financial and financial knowledge and familiar with the operation mode of cash flow than ordinary people.

Similar to the growth path of general banker II, Wang Heng also stayed abroad and read foreign books.

Wang Heng went to Louisiana State University in 1970 to study MBA. Unlike other rich men, he liked to study and work part-time to sharpen his ability to invest in the economy.

The first and fast radical character of all things made Wang Heng stand fast in the development of the United States. He began to develop from real estate, and gradually operated hotels, motels, rental apartments and residential communities in California.

Perhaps it was the fate of the arrangements, Wang Heng in 1989, because he sniffed the opportunity for the development of the Chinese mainland market, before the real estate bubble burst in Losangeles, he sold 80% of the real estate property, with the first pot of gold earned 30 million dollars in life to enter the mainland market, and began his investment in the mainland.

However, Wang Heng, who first came to mainland China, shifted his investment vision out of the hot investment cities of Shanghai and Beijing, but laid down his first pile gate in a relatively low-key Nanjing.

Wang Heng, who had just arrived in mainland China, chose two real estate projects in front of him: one is commercial development in Xujiahui, Shanghai, which is located in the golden section of Xujiahui (the location is equivalent to Zhongxiao SOGO of the city), which is a secure business. The other is another battlefield in the second tier cities and a skyscraper in Nanjing.

But when everyone thought he would not hesitate to choose the former Wang Heng, he chose the latter by accident.

And this "accident" seems to have long been calculated in Wang Heng's mind, because his "first philosophy" told himself: in mainland China, "the first" is a particularly valuable name.

Because at that time, the competitors who were investing in the first tier cities were just like the others, and there were many Taiwanese businessmen in this huge contingent. Instead of such a "go hand in hand", it was better to find their own "open-minded and broad-minded" magnanimous investment in the thousands of two or three line cities.

In 1992, in the air of Nanjing's ash, a tall skyscraper, Golden Eagle International Mall, cut the low profile of the city.

The building, 218 meters tall and 58 storey, stands in the most prosperous center of Nanjing. It is regarded as the three largest skyscraper in China with the landmark 88 storey Jinmao Tower on the Huangpu River in Shanghai and the Heng Long Plaza on the 66 storey in Nanjing West Road.

The landmark of skyscrapers also carried Wang Heng's position in the two or three line city of the department store industry in mainland China.

More than that, in 2009 and February, the Golden Eagle business revenue also grew 14% in the financial crisis. Hongkong Deutsche Bank Asia Pacific report predicted that Jinying 2009 "mature shop growth of 10%, the initial store (new store) grew 50%", compared with the first Parkson's "sell" (choose to sell the stock) rating, Golden Eagle's future is more beautiful than the 1.

20 years ago, Wang Heng's chips laid the right place for gambling. After 20 years, today, the billowing Yangtze River presents a trumpet opening in Nanjing, bringing together popularity and talent, which is even more sensible for Wang Heng's wisdom.

Wang Heng, a Chinese American from Taiwan, founded two or three lines of urban management strategy and established dozens of department stores.

The two or three line cities on the mainland can't stand up for 20 years. It is far from enough to rely on the "first philosophy". Wang Heng's other weapon is to implement the strategy of "accumulating grain, building high walls and slowing down the king".

People who understand department stores know that there are two modes of operation in department stores: one is the "double chip" mode: real estate plus department stores; the other is "single chip" mode: only department stores, real estate leasing.

The advantage of the single chip is that the rental property is open at a fast speed, with an average annual opening of over 10, forming a "fast and large" scale advantage. But the weakness is that because only one side of the department store is managed, the control of rental costs, property design and decoration costs on the other side will be more difficult.

"Double chip" and "single chip" mode, one is heavy assets operation, the other is light assets expansion.

In the boom up, heavy assets will appear to be developing slowly; however, once the economy is reversed, heavy assets can be helped by the controllability of costs, which will help to increase the operating profit margin. If assets are invested at the bottom of the valley, they will make more money in real estate appreciation.

The first step of Wang Heng's sustainable development is to "accumulate grain extensively", so he chose a "double chip" mode with thick accumulation.

Wang Hengxian invested in real estate to prepare funds for the future development of department stores. With such a business model, Wang Heng's department store industry became a "double-sided profit" chip for earning real estate and making department stores.

Holding such a "double chip": because the land is its own, eliminating the middleman's leased links, Wang Heng's Golden Eagle department store's operation cost is at least 3% lower than that of the same industry.

Do not underestimate the savings of the 3% cost, because once the background management costs are low, gross margin will be high, and the rate of fees can naturally be controlled for a long time. This is also an important reason why Wang Heng can open up shop in three line cities with relatively low per capita consumption power.

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Lin Changzhi, director of the Ministry of public affairs and executive director of Nanjing square based intelligence industry, analyzed that to realize the department store's real estate, department stores must quickly achieve profit and loss balance, generate positive cash flow, and have cash to buy land and maintain land so as to form the next round of circulation.

Just because Wang Heng's land is his own, the rental cost can be controlled within the control range, and the positive cash flow is faster than the department store in the first tier cities.

Now, Wang Heng's department stores in the second tier cities can achieve a profit and loss balance in two years, while the three or four line cities will be able to break even in the same year. The fast and balanced rate of profits and losses once again proves the wisdom of Wang Heng's choice in the development of the two or three line cities.

"If you don't have 4 years in Shanghai, you can't do it."

Wang Heng said.

At present, he has 14 shops, except for Suzhou, almost all of them purchase real estate, because he is good at "buying land, raising land and planting land". At the beginning, Wang Heng invested 2 million dollars in Nanjing to buy land, now the price is at least more than 100 million dollars.

Similarly, 3 years ago, because of the advantage of "double chips", Jinying commercial trade was 300 times over subscribed in Hongkong and raised HK $1 billion 400 million.

But another "single chip" Shenzhen Tianhong Department store, instead of being listed, has proved that capitalists are optimistic about the value of real assets of department stores.

In recent years, although the world's "anti monopoly" voices are coming one after another, the necessary monopoly strategy is still needed to maintain the unbeaten record among the regions.

So the second step of Wang Heng's in-depth development in the two or three tier cities of the mainland is to learn to build high walls.

The best place to build a high wall will never be in Shanghai or Beijing, because it is an economically intensive city with tall buildings.

So Wang Heng targeted the "potential" cities with potential business potential: Nantong, Xuzhou, Taizhou, Yancheng, Huaian and so on.