The lesson of "thinking" Evergrande is not only crisis management but also ambition can not be too big

【Inscription】The home appliance industry is now in a transition period from the incremental market to the stock market, and every decision of the enterprise will affect how the future development path of the enterprise will be taken. For the lessons of Evergrande's debt crisis, it is still very necessary to think seriously.

Qin Yi || Writing

Evergrande debt crisis has become a hot topic in the industry for a time, after all, Evergrande's volume is too large, the influence is greater, if you don't know this topic, you may not be able to interject in the unit or circle of friends.

When it comes to the Evergrande debt crisis, many people and public opinion, including the topic of home appliances, are focused on the handling of the Evergrande crisis. Indeed, Evergrande's explosion of thunder this time is indeed big enough, and the incident is still fermenting. Its crisis has still not been resolved, and the market value of HK$1.32 trillion at its peak is now only HK$122.6 billion, which is only less than 10% of that year.

Although the crisis of Evergrande is worth studying, many people are prescribing medicine. It can be imagined that Evergrande can make the volume and scale so large, there must be a large number of high-ranking people who are making suggestions, how can it not be the turn of ordinary ordinary people to guide the country. But as a hugely influential event, home appliance companies can reflect on it, is there anything to learn from?

Home appliance soul believes that in addition to the crisis encountered by Evergrande, Evergrande has many lessons worth thinking about in the home appliance industry. For example, what is the fundamental problem like Evergrande? Accounts differ and opinions vary. The home appliance soul believes that the Evergrande problem is by no means caused by an emergency, but has been determined by Evergrande's strategy from the very beginning. The core of it is that its ambition is too big, and it has exceeded its own capabilities.

As the saying goes, a tree cannot grow up to the sky. The scale of the enterprise, the market value of the enterprise, and the volume of the enterprise are like trees, and they will not grow again at a certain height. But Evergrande does not seem to care about this, has been constantly pursuing scale expansion, constantly adding leverage, super Vanke, super Country Garden, to reach the top of the world's largest real estate enterprises.

You can know this common sense: if the tree is too tall, either the nutrition at the end of the branches cannot keep up, or it will be split by lightning. In the same way, once the enterprise grows to the point where its own management is beyond its reach, it will no longer bring benefits to the enterprise, but risks. This is the case with Evergrande, and leveraged financing cannot alleviate the demand for funds, and the accumulation of risk is an inevitable result.

A real estate is not enough for Evergrande to play, diversification has been involved in many fields: Evergrande Real Estate, Evergrande Automobile, Evergrande Property, Hengteng Network, Caravan Treasure, Evergrande Children's World, Evergrande Health, Evergrande High-tech, Evergrande Ice Spring, other industries. New energy vehicles, which have invested more than 300 billion yuan but have not seen a single car, have now become a big joke.

Back in the electricity industry, home appliance companies should also reflect on Evergrande. Houses are used to live, not to speculate; the same, home appliances are also bought, not to play with concepts in the market; if this lesson is not learned, the home appliance industry will also produce enterprises like Evergrande.

Wanton expansion and unrelated diversification are very similar to the endless diversification of enterprises in the home appliance industry. Some home appliance companies, in the industry into the stock period, but also take the incremental period of indicators to require the market line, how much must grow each year. Don't you know that the market is saturated, and there is still room for growth?

To be sure to grow is to grab the share of competitors. This will not only lead to the further intensification of market competition, but also destroy the existing pattern of the original benign market. Even if you grab a lot of market share, you must know that when your market share exceeds 40%, you are suspected of monopoly, which is not allowed by anti-monopoly law. Isn't that a risk? Is it different from Evergrande's endless expansion?

In addition, after the home appliance industry enters the stage of stock development, seeking new growth points is a problem that every enterprise must consider. However, it should be known that diversification is best related to the original industry, so that diversification has operability and risk control. People's hearts are not enough to swallow elephants, like Evergrande, a diversified investment that cannot be beaten by eight rods, the risk is certain, but it comes early and late.

Lessons from the past, masters of the rear cars! The ancients warned us of the importance of learning lessons. Now the home appliance industry is in the transition period from the incremental market to the stock market, every decision will affect how the future development path of the enterprise is taken, the ideas, methods, and paths are better than being confused, and it is better to learn lessons from history than to hit a wall.

In short, the occurrence of the Evergrande crisis will not stop the blind expansion and expansion of large enterprises, will it stop the rapid growth of the virtual economy, especially home appliance companies should seriously consider the scale expansion of this event!