In 2019,Country GardenWith excellent sales performance, it has become the largest in the country and even in the worldReal estate enterprises, which made a great impression on people. Its success is due to the strategy of the Yang father and daughter and the blessing of the market environment. Yang Guoqiang asCountry GardenThe founder of the company has adopted the strategy of focusing on the sinking market, trying to pass ".The countryside surrounds the city"way to get an advantage. Yang HuiyanI inherited the strategy of my father and continued itThird- and fourth-tier citiesA large number of development projects, known as the "king of the county". compared to othersReal estate enterprisesConcentrate on big cities for businessCountry GardenSelect InThird- and fourth-tier citiesThe brand was built and it was a great success.
WhyCountry GardenSo smoothly inThird- and fourth-tier citiesOccupy market share and become the first in the industryFirst of all,Country GardenSeized the opportunity of the monetization of shantytown reform, and obtained a large number of shantytown reform currency from ** to achieve high profits. Secondly,Country GardenAdopt a high-turnaround strategy to achieve profitability by increasing sales velocity. To illustrate with an example, hypotheticalCountry GardenAnd another developer has invested 100 million yuan in the development of real estate, butCountry GardenIt only takes half a year to recoup the money through sales, compared to a full year for another developer. Country GardenThe 100 million yuan of funds returned will be used to continue to develop the next real estate, so as to maximize profits. In times of market prosperity, this high-turnover strategy allows to:Country GardenEarn a lot of money.
However, a few years later, todayCountry Gardenbut fell into a predicament. This is mainly due to the cold winter of the real estate market and the strategic mistakes of the Yang father and daughter. With the changes in the real estate market,Third- and fourth-tier citiesThe brunt of the chill in the market was felt. Country Garden's high-speed turnaround strategy relies on the speed of sales, but it is unable to achieve the expected profits in the face of a market downturn. Add to that an over-reliance on leverageFinancingand cash flow,Country GardenCaught in a huge debt crisis.
WhenEvergrandeWhen the thunderstorm occurs, many people have already expected itCountry GardenThe same fate may befall you. It's no surprise that the two companies' strategies are almost identicalEvergrandeThe crisis can almost be seen as yesCountry GardenA rehearsal of the dilemma. Country GardenThe predicament mainly stems from the strategic mistakes of the Yang father and daughter. In the case of a market downturn, the high-turnover strategy becameCountry GardenThe tightening spell led to a sharp decline in sales performance. According to publicly available data, in the first nine months of this year,Country GardenThe amount of sales decreased by 43 percent year-on-year9%, a decrease of 654%。
Faced with the dilemma, the Yang father and daughter did not choose to give up easily, but decided to take action to save itCountry GardenYang HuiyanFirst of all, he made a public apology and expressed his gratitude to shareholders andInvestmentsapologies. Subsequently, Yang Guoqiang sold his private jet to pay off his debts and negotiated an extension with domestic creditors. Recently,Yang Huiyaneven publicly stated that the family would smash the pot and sell iron to support the company. Immediately,Country Gardenof executives collectively lowered their salaries and eliminated executive car allocation and free canteens. Yang HuiyanThe annual salary was reduced from 370,000 yuan to 120,000 yuan, and Mo Bin, chairman of the board of directors, also reduced the annual salary from 3 million yuan to withYang HuiyanThe same level.
The actions of the Yang father and daughter show their determination and hard work, as well as their sense of responsibility to the company. However, will they be able to make it this wayCountry GardenThere is still a certain amount of uncertainty about the resurrection from the dead. In any case, their determination and efforts are worthy of recognition and contribute to stabilityInvestmentsand the confidence of the market.
And to let itCountry GardenTruly returning to the position of "No. 1 in the universe" is an even more difficult task. Currently, ** and banks have taken steps to support the real estate sector, whileCountry GardenThere is also a certain amount of inventory and capital reserves. As long as the cash flow is up,Country GardenThere is still a chance to revive the momentum. However, to regain the leading position in the industry, a more cautious and prudent strategy is required, as well as a more robust operation and development. This requires:Country GardenLearn from past mistakes and dilemmas, adjust development strategies, improve management and operational capabilities, and remain competitive in the market competition.
In the end, no matter whatCountry GardenWhether it can finally be resurrected, the current predicament is also a severe test for the entire real estate industry. For the industry as a whole, debt issues and market winters are pervasive challenges that are neededReal estate enterprisesWe have taken appropriate measures to respond. At the same time, it is also necessary to actively introduce support policies to stabilize the market andInvestmentsConfidence. Only through cooperation and hard work can the real estate industry get out of the predicament and achieve healthy and stable development.