Inscription: Wuhan Wushang Group Co., Ltd., formerly known as "Friendship Shopping Mall", is one of the first batch of comprehensive large-scale shopping malls built after the founding of New China and one of the top ten department stores in the country. It was completed and opened on October 1, 1959. In 1967, it was renamed Wuhan Mall. [1] In 1986, armed merchants took the lead in carrying out the reform of the joint-stock system in the same industry nationwide. In 1992, "Ewu Shang" was listed on the Shenzhen Stock Exchange, becoming the first commercial stock in China. In April 2006, Wushang completed the reform of equity splitting. Through the joint efforts of several generations of wu merchants, after experiencing the transformation of the shareholding system and standardized management, wu shang has developed from a single department store into a large commercial group with diversified investment with commerce and trade as the main body, and has successively expanded and built large shopping malls such as Wuhan shopping malls, Wuhan Square, World Trade Plaza, mass selling companies, and Asian Trade Plaza, dancing with world-class commercial groups, bravely standing at the head of the tide, showing the power of national commerce on the map of the international business empire, and becoming the pride of the people of Wuhan. The company's business format has developed from a single department store into two main formats: shopping mall and mass supermarket. The business network has expanded from Wuhan to Wuhan, Xiangfan, Ezhou, Huanggang, Shashi, Xianning, Yichang, Shiyan, Huangshi and other cities. The commercial retail area reached 600,000 square meters. Wuhan "Moore" Commercial City, which is composed of three shopping malls of Wuhan International Plaza, Wuhan Plaza and World Trade Plaza, has an operating area of 220,000 square meters and has become the largest shopping center in central China. Asia Trade Plaza, Jian'er Shopping Center and Xiangfan Shopping Center continue to grow and become a new force for development. Wushang selling companies formed a "Golden Triangle" network framework in Wuhan, Xiangfan and Yichang, and the number of chain hypermarkets reached 50, becoming one of the top 20 chain enterprises in China. Wushang Group was listed by the Ministry of Commerce as one of the 20 large-scale retail enterprises that are focused on cultivation. The company has won more than 40 honors such as "National May Day Labor Award", "National Advanced Unit of Ideological and Political Work", "National Integrity Enterprise", "National Reform and Innovation Award", etc., and has been loved by organizations at all levels and consumers.
<h1 class="pgc-h-arrow-right" data-track="4" >03 Gorgeous butterfly changes, it is difficult to forge ahead</h1>
Photo: Liu Jiangchao
Historical Links:
In December 2007, Liu Jiangchao took over the baton from Wang Dongsheng, one of the earliest founders of the Wuhan business system, as the chairman of Ewushang, who also experienced a decade-long "era" of Liu Jiangchao.
On the map of Chinese commercial enterprises, the business system represented by Wuhan enterprises is very prominent in the industry. There are three commercial listed companies under the jurisdiction of the Armed Merchants Association system, in addition to Ewushang, including Wuhan Zhongshang and Zhongbai Group, all three of which have entered the department store and supermarket formats, but the three enterprises were once ranked high in the national commercial enterprises, and the Wuhan commercial system thus built by the three formed a very high commercial barrier, making Hubei a market that is difficult for other commercial enterprises to "attack".
Ewushang is the leader of this business system, and during Liu Jiangchao's helm, the scale and operating conditions of Ewushang continued to improve. According to the company's annual report, in the decade from 2007 to 2016, the company's total assets rose from 4.256 billion yuan to 17.791 billion yuan, an increase of 318.02%, the operating income increased from 5.297 billion yuan to 17.690 billion yuan, an increase of 233.96%, and the net profit attributable to the shareholders of listed companies increased from 156 million yuan to 992 million yuan, an increase of 535.90%.
Wuhan International Plaza is one of the most recognized achievements of Liu Jiangchao in the industry. In 2007, Ewushang built it into a high-end shopping mall, in accordance with the business strategy of "localization of international brands and internationalization of local brands", during the helm of Liu Jiangchao, Wuhan International Plaza became one of the few independent department stores in the country with annual sales of billions of yuan and one of the top ten in the country.
In addition to Wuhan International Plaza, Ewu merchants have a prominent monopoly advantage in Hubei department stores. As of the end of 2016, Ewushang owned a total of 1.36 million square meters of its own properties in the core business district. Among them, there are 1.2 million square meters of department stores, 160,000 square meters of supermarkets, and 10 department store retail entities under the department store business, including International Plaza, Wushang Plaza, and World Trade Plaza, all of which are located in the core transportation area of Wuhan, with a total area of 1.4739 million square meters, and the value of Ewushang's department stores and shopping centers' own properties exceeds 20 billion yuan, as of the close of june 14, its market value is 13.75 billion yuan, that is to say, the value of its own property alone has far exceeded its current market value. Build Moore City and make it the first high-end shopping mall in central China. Wuhan Plaza gathers international first-line luxury brands, which greatly enhances the consumer shopping experience.
However, in the past decade, in the face of the attack of Zhongbai Group's strong supermarket format, the performance of Ewu merchants' mass sales business is not as good as that of the department store business. According to the company's financial report, in 2007, the revenue of the mass selling business of Ewushang was 2.251 billion yuan, and by 2016, its revenue was 5.821 billion yuan, accounting for 32.91% of the total revenue, and the revenue increased by 158.60% in ten years. Compared with the department store business, this increase was relatively weak.
……
In the past 40 years of reform and opening up, Wushang Group has adhered to reform and reform, and built a new path for the development and take-off of the enterprise. Chairman Liu Jiangchao put forward the strategic idea of "greater courage to change, greater courage to surpass" of the new Wushang, as well as the strategy and tactics of developing the main business, which made the Wushang Group complete a series of transformations. The most important thing is the effective completion of capital operation. The merger and acquisition of shopping malls in third-tier cities such as Shiyan and Xiangfan became the first commercial enterprise to go out of Wuhan and built a business kingdom territory led by Wuhan Commercial Group. [19]
Ewu merchants
Zhongshang Plaza
Zhongbai Square
Wang Yuan[20] said:
The first metamorphosis achieved by martial merchants was to base themselves on their main business. Although in the early stage of development, wushang has also done diversification like many enterprises, done real estate, and also done catering, including our earliest joint venture with Hong Kong at that time, etc., but through strategic analysis, through market research, including the future research, it is clear to have no distraction, unswervingly based on the development of the main business, so in the later ten years, the martial arts merchants can get a good development in the main business, which is a transformation. The second is to insist on efficiency first. Because in the process of development, everyone is arguing about whether to become bigger or stronger first, and there has been this kind of debate in the martial arts business, whether to be strong or bigger first? Through continuous exploration and practice, we finally determined that while becoming bigger, we should put economic benefits first. Therefore, in the process of opening a store for a martial artist, it is also based on the benefit of the forerunner to open a store, in such a rapid development to develop the martial business. Under the strategic decision to base themselves on their main business and become bigger and stronger, armed businessmen carried out capital operations, launched a merger campaign and achieved results.
The capital integration of wushang is completed in the following steps:
Step 1
Acquisition of Shiyan People's Shopping Mall (shiyan people's businessmen for short). The method of preventing the capital risk of Wushang acquiring Shiyan Renshang is mainly to renovate in two phases, the first phase is the old building, and the second phase is the radio and television sector. Involving asset appraisal procedures, has been supported by the local government, this piece has also become a benefit growth point of the armed businessmen, there are more than one billion yuan of sales a year, the profits are also very large, it should be said that the armed merchants out of Wuhan City is a very successful case, in the industry should also be very successful.
Shiyan Renshang used to be a standard department store format, and after we acquired and rebuilt it, we transformed it into a shopping mall format that upgraded the standard, which is in line with the changes in the entire consumer demand, including the continuous upgrading of consumer demand. For the first time, the armed merchants took the step of going out of Wuhan to merge and acquire commercial enterprises in other places.
As with any business practice, there are two major risks associated with such a cross-regional acquisition:
The first is capital risk, because it is completely market-oriented. At that time, Shiyan People's Business had been restructured and was held by employees, and to complete the acquisition, it was necessary to let employees sell shares to the acquirer through the standardized operation of the joint-stock company system, if the operation was not in place, the capital risk was very large. In addition, Shiyan renshang broke the capital chain due to land expansion before the acquisition of Wushang, and Wushang spent a lot of time and money to clean up these problem assets after entering.
The second is the resistance formed by cultural differences in management and operation. How do you overcome this resistance? We basically retained all of their staff, starting with two or three managers, and then not sending anyone at all. The acquisition of Shiyan Renshang should be a significant stroke in the history of the development of Wushang, and in the whole hubei province, the same industry can develop so well through acquisition, and the success of management and culture docking is a very important reason.
Step 2
Repurchase of Parkson shares. The joint venture between Wushang and Parkson Malaysia began in 1993 and is a bold and innovative measure by Chairman Mao Dongsheng to accelerate the integration of Wushang with international standards by introducing new formats and management concepts of foreign investment. Mass sales is also a foreign name, in fact, it is a kind of warehouse sales, because at that time Parkson was high shelves, the implementation of membership system, warehousing sales model. At that time, we explored two pieces, one was a supermarket chain, and the other was a joint venture with Parkson Mass Retailers in Malaysia, which was to explore the development process of chain operation in the form of warehousing.
With the development and change of the economic situation, especially the rise and development of Zhongbai Warehouse, the decline in the performance of martial arts dealers, coupled with the domestic economic impact, prompted Parkson's senior management to want to liquidate the shares of martial arts merchants and Parkson stocks. After several rounds of negotiations, the value of the original negotiation was finally more than 100 million yuan, and all its equity was acquired, and now the property sold by Parkson is the asset of 100% of the property rights of our martial merchants, and this operation is also very successful. Changqing Road is located in the center of the city, the asset appreciation space is large, and it is currently operated there by martial arts vendors and actually homes. After the contract expires, this piece of land is of great significance to the future development space of the martial artists.
From the perspective of the leading commercial shareholding banks, in 2015, Wushang participated in Hubei Consumer Finance Company. Prior to this, Wushang had invested 300 million yuan in Hankou Bank. The consumer finance company developed by Hubei Bank is also an exploration of consumer finance by the state. At present, it seems that there are more than 20 in the country, and at that time, the consumer finance company in Hubei Province was the eighth in the country, and the state used this as a pilot. Consumer finance companies mainly carry out some operations on personal consumption, which is equivalent to the involvement of armed businessmen in finance from the capital level, which may also be a new breakthrough in the history of the development of armed businessmen, and may also be an innovation in the industry. Participating in consumer finance is of great significance to the future development of Wushang Group, and has become an enlightenment course for its creation of endogenous financial mechanisms.
In addition, the leasing operation of martial artists also began in these ten years. In order to speed up the pace of development of martial arts merchants, self-construction is one aspect, which is after all an asset-heavy investment, but leasing is also a very important way of asset-light development. So in 2002, we leased the Asia Trade Plaza (referred to as The Asian Trade Center), which was also the first step for the wushang merchants to expand the Jiangnan market out of Jiangbei. Then we leased Qingshan Jian'er Shopping Mall, which is the layout in Wuhan City; we also leased a Xiangyang Shopping Center in Xiangyang. These are the three leasing companies that currently operate shopping malls. These leasing companies have added a new growth point to the development of martial artists. After more than ten years of development, the sales scale reached more than 1 billion yuan by 2016, and the profit reached 90 million yuan. It is unthinkable that these achievements would be supported by bank funds.
Step 3
State-owned brand defense war - Yintai equity dispute and Wuguang rent case. The equity dispute of Wushang and the equity dispute of Yintai are relatively rare in china's securities history, and there are more related news reports. On the one hand, the equity dispute of Yintai forced us to do a better job in the development of wushang, but at the same time, it did affect the development of wushang and distracted our development energy. The equity dispute in Yintai was finally the municipal party committee and municipal government that made the state-owned company the largest shareholder through the acquisition, which ended the 10-year equity dispute.[21]
At the beginning, Wuhan State-owned Assets Corporation shouldered the order of the government and introduced a strategic investor, Yintai, to the Ewu merchants, and thought that everything would be fine with the commitment of the other party not to be the largest shareholder. As everyone knows, the profit-seeking nature of capital is much stronger in private enterprises than that of state-owned enterprises, and private capital enters listed companies to help others and help the poor, but to obtain the greatest benefits. After they invest a lot of money in a listed company that they think they can have a good winning prospect, and because of the management level, they can't give them a real return, then their patience is limited. At this time, either a false shot, a small profit, and a foot vote to escape; or abandon the commitment, increase the stake, from the hands of the largest shareholder to compete for control, to obtain greater benefits. [22]
The Wuguang rent case is also a state-owned brand defense war. Wang Yuan said:
In the early stage of reform and opening up, at that time, Wuguang was a joint venture with Hong Kong DXN, this enterprise is a Hong Kong listed company, DXN collapsed after 10 years of the joint venture, the equity of the joint venture was sold to the domestic SOGO, SOGO took over, we are both fighting for the equity matter. Because there are prerequisites for the previous cooperation contract, to sell the equity of Wuguang should first be sold to the wushang, and when the wushang gives up, it is the turn of the second. Wu Guang's case is also a very long story, and it has been fighting this lawsuit for many years, all the way to the provincial high court. After the lease contract expired, he was unwilling to quit, and he had been fighting a lawsuit until last year (that is, 2017), before doing a liquidation, and the process was also very long, it was the last decade. Because this business is so well run, he does not send out alone, he can get tens of millions of dollars in income a year, so no one wants to leave this enterprise. We have fought a war of resistance against the funds of armed merchants and protected the capital from being plundered.
While other commercial enterprises are entangled in commodity prices and promotions, the armed merchants are working intensively on capital operations. We took the lead in becoming the first enterprise in Wuhan to reform mixed ownership, that is, the mixed ownership reform. We completed two mixed reforms, one is management shareholding and the second is employee shareholding. At present, some of the management shareholdings are open, and some of them are still in the lock-up period; the employee shareholding is still in the lock-up period, and it will not be fully listed until 2019. Therefore, from this point of view, the armed merchants should also be the first enterprise in the country to carry out mixed reform, at least in Wuhan City.
Step 4: Activate the capital operation of consumer demand package through the "one card" of endogenous finance. Wushang endogenous finance should be built from 2005, we built a one-card platform to meet consumer demand, through the operation of this endogenous finance, give full play to the time value of funds, has achieved very remarkable results, in the country is also in the forefront. A card is fully circulated in the martial arts, cinemas, catering, as long as it is a store in the martial arts can be used. Why we were the first in the country to invest in consumer finance companies, in fact, is a fruit through so many years of exploration of a card, just Hubei Bank also has this idea, the two hit it off, we participated in Hubei Bank's consumer finance company. When it is done best, it may be five or six billion yuan a year. It has made a very great contribution to supporting the rapid development of martial merchants.
World Trade Center
Asia Trade Plaza
Wushang Xiantao Shopping Center
Liu Jiangchao has dedicated more than 30 years in the Hubei business community, leading the continuous development and growth of Wushang Group, becoming the fastest growing commercial enterprise in Jingchu, Wushang Group is a large comprehensive commercial enterprise group in Hubei Province, and is one of the large-scale commercial enterprises in the country that the Ministry of Commerce focuses on cultivating. Wuhan International Plaza, Wuhan Plaza, World Trade Plaza, Jian'er Shopping Mall, Asia Trade Plaza, Xiangyang Shopping Center, Shiyan People's Shopping Mall, Wushang Xiantao Shopping Center and Wushang Merchants Company have become the main force in the development of the main business of Wushang Group, showing strong operational advantages and strong positions in the core business circle and regional market. Liu Jiangchao strengthened structural adjustment and transformation and development, unswervingly enlarged and strengthened the main business operation, and took the initiative to abandon diversified development. From 2008 to 2012, the operating area of Wushang successfully expanded from 760,000 square meters to 1.53 million square meters; the number of operating stores developed rapidly from 59 to 115; the operating scale jumped from 11.5 billion yuan to the mark of 26.8 billion yuan; the operating efficiency increased from 375 million yuan to 731 million yuan; the per capita income of employees increased by more than 90%, creating more than 17,000 new jobs for the society, and the total amount of state taxes paid in the past 5 years was 2.9 billion yuan. The proportion of the annual sales scale of enterprises in the total retail sales of consumer goods in Wuhan increased from 6.22% to 7.81%, an increase of 1.59 percentage points.
Ten years of grinding a sword, Wushang Group adheres to the road of benefit-oriented development without wavering, and has become one of the commercial enterprises with the fastest development, the strongest profitability and the most rising potential among the 79 commercial listed companies in the country. In strict accordance with the laws of the market, the last-place elimination mechanism is introduced in business activities. Carry out performance appraisals of suppliers and management personnel.
Wushang Group scientifically put forward the development idea of "advantageous category scale", by identifying the operating characteristics of each enterprise, maximizing their respective operating advantages, giving full play to the advantages of the large corps of coordinated operations, aiming at the "three firsts" business objectives of "China's luxury goods business first", "China's cosmetics business first" and "China's gold jewelry retail first", based on the overall concept of enterprise development strategy, to make way for the coordinated development of large business districts. Wuhan International Plaza to create the first international luxury products as the goal, successfully opened the Hubei Wuhan high-end department store market, 100 international luxury products for the first time into the Hubei Wuhan market, becoming The highest grade, the largest scale, the most complete functions and the most concentrated luxury goods in China's retail industry operating highland; Wuhan Plaza is unique in cosmetics business, for 13 consecutive years won the first place in China's single mall benefits, with an annual sales scale of 3.5 billion yuan to steadily occupy the first square position of the national mainstream department stores. In 2012, the annual sales of cosmetics exceeded 500 million yuan, winning the "new branch" of China's cosmetics business; the World Trade Center positioned as the first business plan of China's gold jewelry retail, the first "gold self-operation" in the retail industry in Hubei, and successfully explored a set of gold self-operated development models. 3 units are grouped to operate, highlighting their unique business characteristics through the scale of advantageous categories, and the operating benefits are maximized. At the same time, Asia Trade Plaza and Jian'er Shopping Mall lock in the regional market and form a competitive advantage. Wushang Xiangyang Shopping Center, Wushang Shiyan People's Shopping Center and Wushang Xiantao Shopping Center have become the benchmarks of second-tier city department stores in the province, defending the leading position of Wushang in the hubei commercial market. The mass sales chain business plays the role of the main channel of circulation, and its operating outlets are located in more than a dozen cities such as Wuhan, Xiangyang, Yichang, Ezhou, Huangshi, Shiyan and Enshi, becoming the leading supplier in the local market.
In the period when the retail industry is facing deep adjustment, Liu Jiangchao actively adapts to market demand and changes in consumption structure, strengthens structural adjustment and transformation and development by changing development ideas, enlarges operational advantages, enlarges and strengthens core operating advantages, makes articles around consumer demand through innovative marketing initiatives, cultivates new consumption hotspots, and launches "experiential consumption" services and characteristics. It has achieved results in expanding domestic demand and cultivating new consumption hotspots, and has been recommended and learned by the Ministry of Commerce and Hubei Province as a typical representative to the whole country and the whole province, and has made positive contributions to the progress and development of the entire industry.
In the same stage competition with foreign-funded commercial enterprises, the development speed of Wushang Group is much faster than that of Wal-Mart, Carrefour, New World, Dafuyuan and other foreign-funded enterprises that entered the Hubei market in the same period, and the achievements of Wushang "National Excellent Entrepreneur" and "China Excellent Entrepreneur Group" have been affirmed and praised by provincial and municipal leaders. In Hubei's commercial circulation industry, wushang group ranked first in terms of comprehensive strength and has become a business card in Wuhan, Hubei Province. [23]
Talking about changing the development thinking and stepping out of the Wuhan state-owned enterprise reform and deep ploughing area, Wang Yuan said:
Compared with other national commercial enterprises, although the Ewu merchants have not achieved expansion outside the province in the past 10 years, they have begun to cultivate deeply in the third and fourth-tier cities, further enlarging the advantages of the Ewu merchants in Hubei Province.
In 2017, Chen Jun, a 54-year-old veteran wu merchant, succeeded Liu Jiangchao as the current chairman of Wushang Plaza. With the courage of a soldier who has been moving forward, he began to carry out drastic reforms in Wuhan, carrying out property transformation, adjusting brand structure, upgrading and optimizing services, and reforming the personnel system... Led Wuguang to break through the 3 billion yuan mark and return to the first echelon of Chinese department stores.
In the eyes of his subordinates, Chen Jun belongs to the practical type, and his "vision" is quite high. "He spends half the year flying around the country, and spends a lot of time with front-line business leaders." "In the national retail men's circle (the circle of first-line retail industry bigwigs), he discusses industry trends, analyzes business data, and thinks about what other places in Wuguang are insufficient" "Chen Jun never drives to work, he takes the subway in order to listen to the ideas of young people more"...
In 2017, Wuguang's business adjustment to get a plan, Chen Jun found 5 "post-90s" college students who had just entered the company, let them go to Shanghai to investigate, and came back to come up with a set of "no interference" plan.
A "post-70s" management member who participated in the early submission of the plan had to admire it after seeing it. "The idea of the 'post-90s' is really different from ours, we have to face the future, we can't help but change." She introduced, "In this set of programs, there are many IP concepts that young people like, small restaurants and light consumption concepts, etc. We've overturned some of our old-fashioned, ritualistic restaurants. "In the end, a dedicated team cooperated with this new plan to attract investment.
Chen Jun believes that modern commercial competition is the competition for consumers, especially young consumers' cognition, and price is not the first element, but "walking the heart" is the fundamental. In his view, the established business must not be complacent, let the sense of superiority engulf itself. [24]
Wang Yuan said:
With the post-80s and post-90s has gradually switched to the mainstream consumer population, coupled with the policy background of large cities to relieve the population, the third- and fourth-tier cities have gradually shown great consumption potential, and in recent years, Ewu merchants have also begun to gradually shift their development focus to third- and fourth-tier cities, and offline shopping malls and supermarkets may become the main channels carrying the demand for consumption upgrading.
Go out of Wuhan, lay out the third-tier cities, and build the second group army. Following the successful acquisition of Shiyan Renshang, The Xiangyang Shopping Center of Wushang was opened, and the Wushang Supermarket was also opened there, and there were more than 20 supermarkets in that place, with annual sales of billions of yuan. Wushang has been supported and welcomed by the local government, because we are different from real estate developers, whether it is land or leasing in the local area, our taxes are paid locally, and people are recruited locally, which not only solves the local employment, but also contributes to the local economic construction, and at the same time enhances its urban function, because our commercial enterprises are the most high-end and most complete shopping centers in the local area. In accordance with the strategy of developing the Second Army, we have all 72 counties and cities in the province.
From the perspective of specific projects, the projects invested by Ewushang in third- and fourth-tier cities mainly include Xiangyang Shopping Center, Shiyan Renshang, Xiantao Shopping Center and Huangshi Shopping Center. After the incubation period, these stores gradually enter the break-even transition cycle.
Xiangyang Shopping Center
Yellowstone Mall
According to the company's annual report, in 2016, Shiyan People's Shopping Mall Co., Ltd., a subsidiary of Ewushang, had an annual revenue of 1.413 billion yuan and a net profit of 0.46 billion yuan. Huangshi Shopping Center Management Co., Ltd. had revenue of 478 million yuan in 2016, an increase of 13.41% year-on-year, operating profit of 0.11 billion yuan and net profit of 0.11 billion yuan, an increase of 3567.49% year-on-year, although Xiantao Shopping Center is still in the loss stage. Some insiders also believe that "Ewushang has obvious advantages in the field of physical stores, but the online channel layout is not very strong." The above research believes that how to play a good role in online and offline interaction is also a new topic. [25]
Wang Yuan recalls:
According to our five-year development plan, the Group plans to cover tertiary counties and cities in two to three years and explore a new model: the model of department stores + supermarkets. Later, we built a project in Laohekou and explored the model of supermarket + department store, because it is impossible to open a large store in the county, and there are so many people in a county, so it can only be full coverage, that is, one is necessary for life, and one is a personalized consumption that can be copied, including entertainment.
"Internet +": In 2013, wushang network was officially launched, our guiding ideology is to move wushang to online, to create a 24-hour shopping center that does not close, this radiation has no boundaries. Armed forces merchants are still in the forefront of the country, that is, to create new retail formats with modern technologies such as machine replacement and face recognition. The application of modern high-tech technology to improve operational effectiveness, management level, work efficiency and labor productivity is at the forefront of the country. In 2006, we obtained the national high-tech technical support project, the state gave a certain amount of financial support, we focused on building a series of platforms in terms of building a supply chain and optimizing the supply chain.
In the past 40 years of reform and opening up, armed businessmen have been innovating and always on the road from not doing the same, changing to doing big work to having greater courage to change and surpassing a higher realm.
Looking back on the 40 years of reform and opening up of armed merchants, Wang Yuan has deep feelings and experiences:
Companies often do not win at the starting line, but at the turning point. The development of martial arts merchants is not smooth sailing, and many national firsts created by martial arts merchants are actually the courage to take the road that no one before them has taken, and they are breaking out of a new road of their own in the process of continuous exploration and change.
Wu Yumei said:
Since 1984, after China's structural reform and the "breakthrough in the two links", we have systematically reformed, deep-level internal reform, called "package reform". This reform is first of all the reform of the circulation system: first of all, the high-level decision-making of the municipal party committee and the municipal government, then the management reform is carried out simultaneously, and then the reform of important commodities and vegetables in the people's livelihood project, which makes the transition of traditional business + modern commerce to a higher level. The reform of the commercial circulation system is to change "three less and one more" to "three more and one less": "three less and one more" means a single circulation channel, a single ownership system (state-owned), a single mode of operation, and a multi-link allocation and distribution (at that time, the distribution of links was the national, provincial, and municipal first-level stations, second-level stations, and third-level stations, and finally they could be retailed); the circulation pattern of "three more and one less" was a variety of economic components, multiple circulation channels, multiple modes of operation, and less links, that is, direct meeting between production and marketing. This has attracted a lot of businesses to Wuhan, so first of all this is a major reform.
Secondly, what is different from other cities is that the reform of the commercial management system of the municipal party committee and the municipal government was carried out simultaneously, and the organs of the Commercial Commission at that time, the financial office of the first commercial bureau, and the second commercial bureau were merged to form the Wuhan Municipal Commercial Management Committee. In order to establish a legal environment of fair competition, the government must have a management department, and the new wuhan municipal business management committee will assume this function. I remember that comrade Li Zhi was in charge of the reform at that time, and gave us a lot of support.
For many years, we only managed state-owned commerce. Later, the government was asked to simplify administration and decentralize power, which was then called "returning power to enterprises", and changed its functions. The first is to cut off economic ties with enterprises, and change the management mode of one commercial bureau and two commercial bureaus to the following enterprises in the past, which raised this gold and that fee. For example, in terms of personnel rights, property rights and other functions and powers, at that time, the study of decentralization involved 12 aspects and 44 articles, which greatly relaxed the constraints on enterprises.
These two things done by the Wuhan Municipal Commercial Management Committee led the way in national reform, which caused a sensation in the country at that time. In the past, we set up the Wuhan Municipal Commercial Management Committee, which clarified the responsibilities and tasks of the Commercial Commission, and adapted to the requirements of the reform of the commercial circulation system. At that time, businesses from all over the country flocked to Wuhan to study, and newspapers and radio stations continued to report and interview. With the deepening of reform, all over the country, including Beijing, Tianjin, Shanghai, and Guangzhou, commercial committees have been set up, all of which have learned from us.
Wuhan's business has benefited from reform, without reform, Wuhan's business has not been today, and we have no position in the country today. The top-level design done by the people in charge of reform provides a stage for business innovation to contribute. Our reforms have been very hard, but they have indeed benefited. If it were not for the reform, all of us would definitely be gone. For example, after the competition in the country, many large state-owned enterprises have disappeared, let alone be able to compete with wal-mart, Carrefour and other world-class companies, because you can't sit on a bench. As now, you can also dance with the world's top companies, thanks to the early reform of Wuhan. Not only because of the commercial reform of Wuhan City, but also because of the magnificent reform of Wuhan City, without this background, there would be no success of Wuhan commercial reform.
Editor: Zhang Lehe
[19] Ewushang bid farewell to the era of Liu Jiangchao, and the problem of competition in the same industry needs to be solved[N].21st Century Business Herald, 2017-06-15.
[20] Wang Yuan is the general manager of Wushang Group and the president of Wuhan Chamber of Commerce.
[21] Wang Yuan's account in this article is his oral account on June 15, 2018.
Fan Bingqing. Analysis of Shareholder Behavior in the Dispute over Controlling Rights of EwuShang[J].Theoretical Monthly, 2007(1).
Li Decheng, editor-in-chief. Outstanding Entrepreneur of China (2013-2014)[M].Beijing:Enterprise Management Press,2014:135-138.
[24] "Wuhan Local Commercial Leader Wushang Group Changes Coaching", Hubei Daily, June 29, 2017. http：//news.hexun.com/2017-06-29/189828286.html
Chen Hongxia. Ewushang bid farewell to the era of Liu Jiangchao, and the problem of competition in the same industry needs to be solved[N].21st Century Business Herald, 2017-06-15.http://www.sohu.com/a/148986069_115443.
Source of this article: Oral Transcript of Wuhan Reform and Opening Up (II), Hubei People's Publishing House, 2019
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