From a small boss to a real estate magnate
In the early 90s of the last century, a young man founded Dalian Wanda Group, starting his entrepreneurial path from a small real estate company. This person is Wang Jianlin.
At that time, many people were chasing the dream of real estate wealth, but Wang Jianlin had a keen eye for the huge business opportunities brought about by urbanization. He set his sights on shopping mall projects in first- and second-tier cities, pioneering the introduction of a large-scale mixed-use business model.
In this way, Wang Jianlin's Wanda Group ran wild like a wild horse, and hundreds of Wanda Plazas sprung up all over the country. In just a few years, he has risen from a small boss to a giant in the real estate industry, and has been nicknamed "real estate maniac".
Wang Jianlin is not an idle person, and his vision extends to the international market. , which he spent $2.5 billion to bring AMC Entertainment Holdings, the second-largest theater chain in the United States, under his umbrella; Later, it spent about 700 million US dollars to acquire the famous British yacht manufacturer Sunderland.
These heavyweight mergers and acquisitions have allowed Wanda Group to spread its territory all over the world. The external evaluation has also changed from the original "real estate madman" to "Wanda madman".
However, just as Wang Jianlin was going further and further on the road of expansion, problems began to surface. In recent years, the real estate industry has been subject to stricter regulations, and Wanda Group's traditional real estate business has tightened financing, resulting in cash flow difficulties. The large amount of overseas M&A investment has plunged the company into a heavy debt crisis.
By the end of the year, Wanda Group's total liabilities had reached 633.7 billion yuan. This was an astronomical amount at the time, causing an uproar in the outside world.
Wang Jianlin previously made a fortune with real estate, reached the peak of his life, and once became the richest man. But now, he may become the "first loser". This huge contrast makes people's jaws drop.
At this time, Wang Jianlin's son Wang Sicong also became the focus of public opinion. As the pearl of Wanda Group, Wang Sicong was once regarded as the "national husband" by female fans. But after Wanda fell into a debt crisis, his identity became a major concern for Wang Jianlin.
According to media reports, Wang Jianlin only gave Wang Sicong two entrepreneurial opportunities, and if he failed, he would return to Wanda to take over. The outside world has speculated that this is Wang Jianlin's dissatisfaction with his son's "cynical" behavior. For a time, public opinion was also infinitely speculative and speculative about the relationship between the father and son of the Wang family.
Wang Jianlin seeks transformation
Faced with internal and external troubles, Wang Jianlin decided to break his wrist. At the end of 2017, Wanda announced that it would continue to reduce the scale of overseas investment and sell unprofitable hotels and cultural projects on a large scale to reduce the company's debt ratio.
This is undoubtedly a difficult decision, because it means that Wang Jianlin has to give up his years of hard work. But in order to survive, he has no choice but to move forward.
Over the next year or so, Wanda Group accelerated the pace of destocking real estate, selling hotels and other assets, and finally succeeded in significantly reducing its debt ratio.
Three years later, Wang Jianlin regained his footing on the stage of financial freedom. According to the Hurun Rich List, he returned to the top 10 on the list with a value of more than 120 billion yuan. This is like a madman who has ascended to the phoenix nirvana, making a comeback after a lot of gloom.
From Wang Jianlin's entrepreneurial story, we can get the following inspirations:
First, it is necessary to identify business opportunities and have foresight. Wang Jianlin saw the tide of urbanization in the 90s of the last century, and seized the opportunity to develop shopping center projects, and eventually achieved his own business empire.
Second, we must have the courage to innovate and try new models. Many bosses follow the rules, but Wang Jianlin continues to explore new areas, expanding his business model from a single real estate project to entertainment, cultural tourism and other fields.
Third, we must have the quality of perseverance. In the face of heavy blows, Wang Jianlin did not give up resistance, but rose to the occasion and started again. This kind of dedication is a must for entrepreneurs.
Fourth, we must learn to adjust our strategy and rhythm in a timely manner. Wang Jianlin decisively sold the unprofitable project and switched to an asset-light model, and it was this timely adjustment that allowed Wanda to save the day.
Through Wang Jianlin's deeds, we also see the bloodiness and responsibility of an entrepreneur. Once you've made up your mind, it's time to pursue your dreams with all your might, move forward and never give up!
Despite the phased victory over the debt crisis, Wanda still has a long way to go in its transformation. Wang Jianlin needs to actively respond to industry changes and adapt to new development trends.
Wang Jianlin decided to adopt a new model of "simultaneous development of light and heavy, and dual-drive development". The so-called "light" is to turn to an asset-light model to reduce the pressure of investment and development; The so-called "heavy" is to continue to retain some high-quality commercial real estate projects as fixed assets.
Asset-light operation innovation
The key to the asset-light model is that Wanda will rely more on technology output, brand licensing, operation services and other means to make profits, rather than the traditional development and construction model. This innovation helps to reduce risk and increase the speed of capital turnover.
Wanda has reached an agreement with Yizi Shopping Center, a large shopping mall company, to operate a number of shopping malls such as Wanda Guangzhou, while Wanda will profit from exporting its operating experience and brand. This is a microcosm of Wanda's balance of priorities.
At the same time, Wang Jianlin is determined to focus Wanda on the main channel of commercial real estate, and comprehensively sort out the existing high-quality assets, and do more refinement and deepening.
"We must earnestly sell the existing bad assets and keep the good assets to build the brand." Wang Jianlin once said. This is also the focus of his transformation strategy.
In addition, Wanda will also extend its tentacles to emerging fields such as culture and entertainment, scientific and technological innovation, and seek diversified development. For example, investing in sports event copyrights, expanding the online business of "Wanda Video", and making efforts in big data marketing.
The cultural and entertainment industry has always been Wanda's key focus. "Focusing on the cultural industry with one hand and real estate projects with the other" is Wang Jianlin's new development idea, and it is also an opportunity for Wanda to make a breakthrough on the new track.
Of course, Wang Jianlin's transformation has not been easy. There are many doubts about the effectiveness of Wanda's new model.
Many analysts believe that Wanda's transformation faces many obstacles and challenges. First of all, there are certain industry barriers and thresholds from traditional real estate business to emerging fields; Secondly, the asset-light model requires a large number of high-quality partners, and resources are scarce at this stage. Thirdly, Wanda's cash flow continues to be under pressure, and the development of new businesses requires a large amount of capital investment.
Another interpretation is that Wanda's predicament is largely due to Wang Jianlin's blind expansion. The debt problem has exposed the shortcomings of its operation and management, and if it cannot completely get out of the haze, it will be difficult for Wanda to gain real development momentum in the new track.
Although there are many doubts, the industry still has a wait-and-see attitude towards Wanda's transformation. After all, Wang Jianlin is a pioneering and innovative doer, who has been reborn from adversity and resolved crises several times.
"As long as he learns from his previous losses, it is entirely possible that Wanda will make a comeback in the future." Some analysts commented. For Wang Jianlin personally, this is also the last fight in life, and he will go all out.
On the whole, Wang Jianlin, a former "real estate madman", is gradually transforming into a mature, cautious and wise entrepreneur. The course of his life is also the process of the transformation of a fanatical youth into a calm and wise man.
The era of the "madman" who became a millionaire at the age of 25 and scolded Fang Xuan is gone. In its place, a burdened with debt,
A broad-minded person who has experienced a low point in life. And this grinding experience will make Wang Jianlin's life more harmonious and wise.
In the face of the trough of life, Wang Jianlin did not give up and give up on himself, but started again and again with his unique tenacity and perseverance. This determination not to be afraid of setbacks and never give up is the magic weapon that he has to overcome difficulties.