Yuan Yafei: Detailed Explanation Of Merger And Acquisition Path Line Will Not Disappear

In 2010, domestic retailers began to play a positive game with the electricity supplier.

After a period of introspection, in 2014, the three companies began to make bold decisions, followed by many mergers and acquisitions. First, they spent $500 million to buy the Nanjing international financial center from Li Jiacheng's fund, and then bought Mcglaughlin through their business circle network. Then they bought the mobile language channel of mobile phone wholly-owned, and then joined the group buying website.

It also extended its tentacles to overseas. Under the banner of Nanjing, new Baihua spent about four trillion and fifty million pounds on the acquisition of the fourth largest department store in the UK, House of Fraser, which has created the largest overseas investment in China's retail industry so far. It also participated in auctioning Brookstone, a well-known retailer focusing on new exotic products, and bought Natlali, an Israeli medical service company.

This series of actions of the three cell group has made many investors unable to understand.

Yuan Yafei, the chairman of the three cell group, is the big dealer in the retail industry. What is the chess game of sina? Yuan Yafei, the exclusive dialogue of the finance and economics company, explains the merger and acquisition path of the three companies.

Xu Wen: first of all, let me ask you a question. Sanzi group spent 500 million dollars at the beginning of this year to buy the Nanjing international financial center (IFC) from the ARA fund of Li Jiacheng. But according to our understanding, the main business of Sanzhou group is not real estate. Why did you make such a takeover decision?

Yuan Yafei: actually, the logic of this investment is very simple.

IFC and Nanjing new hundred flag under the East Shopping Mall wall, once opened, the commercial area of the podium can be increased from more than 20 thousand square meters to more than 50 thousand square meters, the original simple rental return into commercial sales returns, the value will also greatly increase.

Therefore, this is not a purely real estate investment, but for the development of its commercial department stores.

Xu Wen: in the cold winter, this year's retail industry is not too much. Many retailers are shrinking the front line.

But the three groups have launched several high-profile mergers and acquisitions in the opposite direction. They are pnational and cross-border.

What are the considerations behind this?

Yuan Yafei: first of all, Sanzi is an enterprise group characterized by informationization and modern service industry.

All mergers and acquisitions of Sanmen are the foundation for industry, all in order to better serve the main business.

My idea is very simple. People's life is limited and resources are limited. How to seek maximum efficiency and value on limited resources is the most basic logic of life.

It is not easy for a man to do a thing well, deeply and thoroughly.

I started selling computers and worked for more than twenty years in the retail industry.

Many people have tempted me to invest in real estate, coal and oil, and I have refused.

Why? Because I don't understand these industries. The probability of making mistakes is too great.

Focusing on my profession greatly reduces the possibility of making mistakes.

Sociality is the fundamental attribute of human beings. Many people say that the line will kill the line. I think the line will never disappear.

Traditional offline enterprises can also become the entry of Internet enterprises and the entrance with lower cost.

I counted a book, the target consumer group on line, the cost of each customer's flow is about 200 to 300 yuan, but only 20 yuan under the line.

The volume of retail business is huge. Why don't I do a good job in line?

But do you want to change the line?

Why the electricity providers in the US and Europe are not as influential as China, because their offline businesses provide consumers with value.

In the past, China has criticized the past supplier leasing mode and the management of the discount point. The supplier paid the admission fee and set a high price for the product. There is no difference between it and the deceit.

Unable to provide consumers with value, in the long run, they will easily be replaced by electricity providers.

It is more valuable to conform to the development of the times.

The acquisition of House of Fraser by three cell groups and acquisition of handover network is the core.

Xu Wen: you used to say that you can always get things ready before the economy falls to the bottom and wait until the bottom of the valley is bought again.

Do you think the retail industry is at a low ebb?

Yuan Yafei: at present, the average gross profit of many stores is less than 10%. How can we support the operation?

In the next two years, China will open about 2500 new shopping malls, believing that there will be a large number of failing to realize the pformation of the complex and department stores are facing a downturn in operation, which will be an opportunity for industry consolidation.

Xu Wen: the acquisition of House of Fraser, a British department store, made the three cell group the first mainland buyer to enter the British department store industry.

Do we need to take the opportunity to go overseas?

Yuan Yafei: the competition of homogenization in China's department stores is fierce. It is necessary to survive in the next 3 to 5 years, and to survive in the competition of department stores.

HOF has a history of 165 years, has rich experience in department stores and supply chain resources, and has a mature operation mode in its own brand and buyer's system. The total sales share is 50% and gross margin is 35% to 40%.

The acquisition of HOF is to make Nanjing Xin Bai own its own brand, buyer's system and department store supply chain's internal strength.

In order to realize the pformation from joint leasing to goods service, Nanjing Xin Bai needs to learn the management experience of HOF.

According to my plan, HOF will open its first store in Nanjing and Chongqing next year and join the new hundred shopping mall in Nanjing.

By the end of this year, the HOF cross-border e-commerce platform will also be landing in the Shanghai free trade zone.

My goal is to achieve a 5% scale of Nanjing's new private brand and buyer's system next year.

Xu Wen: HOF initially valued at 600 million pounds, but the final price was only 450 million. Local media analyzed the debt situation of the company.

Does Sanzi group think the deal is cost-effective?

Yuan Yafei: the price we bought is very reasonable.

In fact, HOF operates well, EBITDA exceeds 60 million, and the cash flow is positive.

HOF lost about 5 million pounds last year. The reason for the loss is that during the European debt crisis, Iceland's largest shareholder, Bank of Iceland, has a high interest rate debt of 9% interest rate.

By the end of February next year, the three banks will help HOF to refinance the high interest debt into a low interest rate debt below 4.5% interest rate through refinancing, so that net profit can be realized in that year. It is estimated that the profit of 5 million to 10 million pounds will be realized by HOF next year.

Xu Wen: there are some puzzling questions about the two e-commerce platforms of the three companies, such as Mcglaughlin and the handshake net.

The performance of these two companies is not very dazzling. Why do the three groups dare to take over?

Traditional line enterprises must have Internet thinking in this era. The problem of Internet is a philosophical problem, such as offline enterprises do not have Internet enterprise genes, and Internet companies also do not have the genes of offline enterprises.

The two kinds of enterprises of different genes are kneaded together stiffly, and the result is doomed to failure.

I used to describe the two as "Brotherhood".

But after serious reflection, I think they are not brothers, because there is competition among brothers, not father son relationship, but a "two employee relationship".

There are no Internet genes in the three companies, and there are specialties in the industry.

However, the strong supply chain capability under the three cell lines is just the biggest short board of group buying websites.

The triad will continue to invest funds and resources to achieve synergy between the three cell lines and the handle network.

In the future, Mcglaughlin will focus on healthy and beautiful products, merge with peers, and pull hand net will focus on O2O. Differentiated local life services will increase user stickiness.

The future has great potential in the capital market.

Xu Wen: at present, the group buying website is almost the world of BAT. For example, Ali leads the US group network, Baidu holding glutinous rice net, and Tencent strategy shares public comment.

You said to make the handshake net become the first group buying website of A shares, where does confidence come from?

Yuan Yafei: the competitive advantage of the handshake net is not to fight for money, but to get rid of the homogenization competition and give full play to the advantages of online and offline collaboration.

I put forward the "five pull" synergy effect: Online pull, sales pull payment, supply chain pull customers, eat and drink to pull commodities, group buying pull custom.

For example, the company of Sanxia group sells 10 million mobile phones and 7 million computers every year, and these customers may become users of the handle network.

The group buying business such as local life and local service can bring great user flow and strong user stickiness. So how to realize value-added services on this basis is also worth our attention.

While satisfying customers' pleasure, enjoying the discount, they can also drive the sale of goods, which is the added value of group buying business.

Based on the reasons of the same controlling shareholder, the three companies, such as the grand tribe, Yue language communication, Nanjing new hundred, the United States Brookstone and the British House of Fraser, will take the lead in developing online and offline business collaboration with the handover network.

But we never hope that the handshake net is only a three cell handshake network. We will introduce the strategic investors and strategic partners with an open mind, so that we can cooperate with the whole society's 3C, department stores and other offline retail and service enterprises, and eventually make the handshake net the largest independent third party O2O platform in the world.

In operation, we will fully guarantee the independence of the handshake net, and the company will launch the option incentive plan as soon as possible, so that all the employees in the handshake net will live a relatively free and dignified life.

Xu Wen: for the three cell group, how to divide the products after the online and offline prices? How to solve the problem of the right and left businesses?

Yuan Yafei: control the supply chain is the key whether online or offline.

Because of the convenience of information symmetry on the Internet, the more standardized commodity price competition is, the more intense. Non standardized goods, such as luxury goods, attach importance to brand price control and will not be easily sold online.

So it will be treated differently.

For standardised products, through the online channel tail cargo, for non standardized goods, mainly consider pre-sale (star explosion) and C2B scale customization, such as millet mode.

Xu Wen: the outside world seems to be a big buy by Sanzi group. How can we deal with the problem of relatively tight funds?

Yuan Yafei: the Sanzhou group has always been steady and has good assets.

Our Nanjing Xin Bai bought HOF, using its own cash and some loans. Before, hundreds of new assets had never been mortgaged.

Now, many people come to me every day to sell me the complex and the land at a loss.

I said, when you buy it is the highest point, your money is lower, it is also a loss for me.

When the price is cut, you can come to me again.

I made a lot of mistakes, but