0 1/ The national layout is perfect and the risk response ability is excellent.
Country Garden began to implement the national expansion strategy in 2006, and its layout extended to Jiangsu, Anhui, Liaoning, Heilongjiang and other provinces. In 20 13, it officially broke through the scale of 100 billion. By 2020, the full-caliber sales scale will reach 788.8 10 billion yuan, and even "full coverage of first-tier to sixth-tier cities" will be put forward at the performance meeting.
According to the distribution of equity land reserve, by the end of 65438+ in February 2020, the total equity land reserve of Country Garden reached 275 1.5 million square meters, and the land resources were mainly located in Guangdong Province, accounting for about 20% of the equity building area. The distribution of other provinces is relatively balanced, with Jiangsu, Hunan, Henan, Shandong and other provinces accounting for more than 7%, and the national layout is relatively perfect. In 2020, the newly-added equity land reserve is 70.52 million square meters, and the average land cost is 2,968 yuan/square meter. The land cost is at a low level, and the ratio of land to goods (new land cost/current average selling price) is only 365,438+0%, which fully guarantees the profit space of the project.
According to the sales situation, from 20 18 to 202 1 to1-April, the sales scale of Country Garden expanded year by year, and the compound annual growth rate of sales amount from 20 18 to 2020 reached 13.7%. The sales share mainly contributed to the Pearl River Delta and Yangtze River Delta urban agglomerations, and the total sales of Guangdong, Jiangsu, Zhejiang and Anhui provinces remained at about 50%, among which the sales amount of Guangdong Province kept declining year by year, from 24% in 20 18 to 16% in 20021+April. The ratio of area input to sales remains around 1, and sufficient supply supports the growth of sales.
Generally speaking, the sales distribution of Country Garden is relatively consistent with the land reserve distribution. Under the multiple pressures of the slowdown in the growth of the real estate industry and the three red lines forcing housing enterprises to reduce leverage, in order to gain more certainty and ensure stable cash flow, most housing enterprises will focus on the core cities of the Yangtze River Delta and Pearl River Delta metropolitan areas, thus reducing investment in marginal cities and low-level cities. However, the decrease of competitors may help Country Garden deepen its cultivation in third-and fourth-tier cities. On the one hand, we can seize the opportunity to increase market share, on the other hand.
02/ Accurate choice of cities, continuous deep cultivation, and help to crown the scale because of the city's policy.
When most real estate enterprises were still working hard in the base camp, Country Garden began to implement the national expansion strategy. In 2006, Changsha Country Garden Venice City opened, marking the company's official March to the whole country. Then, following the urbanization process of China, it focuses on the forward-looking layout of the urban-rural fringe around the megalopolis. During the period of 20 14 -20 16, we fully enjoyed the bonus of shed reform policy, absorbed a large number of housing needs in core cities, and the sales scale expanded rapidly. Specifically, the layout features of Country Garden mainly have three advantages: First, the city selection is accurate. Although Country Garden is mainly located in third-and fourth-tier cities, it has a unique vision in choosing cities. Most of the cities that are stationed are cities with a population of more than 500,000 and good development potential; Second, investment is continuous. Once the selected city is settled, Country Garden's investment in it will continue, and the deep layout will help to enhance market share and brand effect; Third, because of the city's policy, it is more suitable for positioning and maximizing the brand effect by adopting differentiated investment while replicating in different places.
First, forward-looking strategic layout and unique vision of urban choice.
In the third-and fourth-tier markets, Country Garden has an absolute first-Mover advantage. From 20 19 to 202 1, it can be seen that more than 50% of the investment amount is distributed in third-and fourth-tier cities, and the investment amount in second-tier cities accounts for about 40%, while that in first-tier cities is less than 3%. It can be said that the success of Country Garden is inseparable from its strategy of deepening the cultivation of third-and fourth-tier cities.
Country Garden's investment strategy avoids the hot spots in the first-line and core second-line areas, but it is not "wide investment". Judging from the third-and fourth-tier cities that the company mainly invests in, it can be divided into two categories: the first category, the cities around the Pearl River Delta and Yangtze River Delta metropolitan areas, such as Huizhou, Shantou, Xuzhou, Huai 'an, Nantong, Jiaxing, Shaoxing and Jinhua, are located in the core metropolitan area, with high economic development level, perfect infrastructure construction and high population and economic strength, which can effectively support the growth of the real estate market; The second category is cities with point-like development that are attractive to the population of surrounding cities, such as Luoyang, Xuchang, Cangzhou and Linyi. , with sufficient population and reasonable inventory scale (within 24 months). In 2020, the construction area of commercial housing in Luoyang was 2.83 million square meters, up 8.8% year-on-year, and the average price was 9,860 yuan/square meter, up 7.6% year-on-year.
China's urbanization process will continue. 20021The national government work report pointed out that during the Tenth Five-Year Plan period, the new urbanization strategy with people as the core was further promoted, and the urbanization rate of permanent residents increased to 65%. This means that despite the downturn in the real estate industry, housing enterprises in first-and second-tier core cities have turned to the stock market and demanded dividends from management, but the urbanization of China is still in a period of rapid growth, and some third-and fourth-tier cities still have sufficient incremental markets, which has supported the sustained and steady growth of Country Garden sales.
Second, the investment is sustainable, and the average market share of the third and fourth lines is 8%
Generally speaking, the first time you enter a region or city, you need to set up a new regional company. The Group has a full understanding and experience of the region. When the scale of regional companies reaches a certain level, it will make a decision to merge or split regional companies, that is, as long as it enters a new city, it will inevitably lead to an increase in management expenses and marketing expenses. Therefore, whether it is a national housing enterprise or a regional housing enterprise, it is very necessary to station in the sustainable layout of the city. Short-term layout will not only cause costs.
Judging from the overall investment strategy of Country Garden, in addition to ensuring the company's deep cultivation in the cities around the Yangtze River Delta and the Pearl River Delta, it will also comprehensively cover the Bohai Rim, the middle reaches of the Yangtze River, Sichuan and Chongqing, and then carry out in-depth layout, and on this basis extend to the surrounding pocket areas (densely populated provinces such as Henan, Hainan, Guizhou, etc.). ), adhering to the principle of "stand firm first and then expand". Judging from 199 cities invested in 2020, 138 cities continuously invested in 20 19 and 2020, and 138 cities continuously invested in 20 18 to 2020.
The most direct result of continuous investment is the increase of market share. By the end of 2020, Country Garden * * * has entered 289 prefecture-level cities nationwide, with an average market share of 5%, of which the average market share of third-and fourth-tier cities is 8%. These include:
Jinzhou City, Liaoning Province and Lvliang City, Shanxi Province have a market share of over 30%;
Six cities, including Shaoguan City in Guangdong Province and Chaoshan City in Guangdong Province, have a market share of 20%-30%;
The market share of 46 cities including Lanzhou in Gansu, Suqian in Jiangsu and Qingyuan in Guangdong is 10%-20%.
98 cities such as Foshan, Guangdong, Zhengzhou, Henan, Nantong, Jiangsu and Jiaxing, Zhejiang have a market share of 5%- 10%.
Country Garden's high market share in the third and fourth lines can bring three advantages to the company: first, the reduction of marketing expenses, because of the superposition of brand effects, the previous real estate is advertising the newly launched real estate, which can promote the promotion of new real estate with lower marketing expenses; Second, the third-and fourth-tier markets are different from the first-and second-tier markets in terms of the scale and cost of suppressing competitors. It is more difficult and risky to increase market share in the first-and second-tier markets, with more competitors and stricter policy constraints and capital supervision. Therefore, it is difficult for housing enterprises to maintain a high market share in the first-and second-tier markets, but the third-and fourth-tier markets are different. Once they form a higher market share in the third-and fourth-tier markets, it will push up the marketing expenses of competitors and force them to face higher costs. Third, fully understanding the local market is conducive to designing more reasonable products and transforming the project.
Third, copy in different places, according to the city policy, to meet customer needs to the maximum extent.
In the process of replication in different places and national layout, Country Garden has formed a clear and effective investment strategy: avoiding the mainstream market and the customer base of strong competitors, and mainly designing products for the suburbs of big cities and the third and fourth lines. The product positioning has gradually been divided into two categories from the initial "price sensitivity, low-grade and taste requirements":
First, the just-needed customer base in core cities, that is, people with low wealth ability in big cities, such as white-collar workers who have graduated for five years and are growing up, have less capital accumulation and pay attention to cost performance. Therefore, the average selling price of such markets in Country Garden is mostly lower than the industry average. For example, the average sales price of Country Garden in Shanghai in 2020 is 30,978 yuan/square meter, which is lower than the average sales price of new houses in Shanghai of 56,900 yuan/square meter.
Second, the middle and high-end customers in the surrounding areas of core cities, that is, cities around big cities or cities with low development level. Country Garden is mainly aimed at people with high wealth and strength. Because Country Garden has achieved the first-line standardization process and has strong price competitiveness in the third-and fourth-tier markets, the average selling price in such markets is usually higher than the average market price. For example, the average sales price of Langfang Country Garden in 2020 is 22 1.400 yuan/square meter.
03/ Stick to the strategy and refuse to follow suit.
Since April 20021,22 cities have entered the era of centralized land supply. As of June, Beijing, Tianjin, Shenyang and other 19 cities have successfully completed the first batch of centralized land supply, and urban differentiation is becoming increasingly obvious: the phenomenon of land grabbing in popular cities is obvious, and the reserve price of unpopular cities is high. However, Country Garden, as a leading real estate enterprise, participated less in the first batch of centralized land supply. By the end of June, 20021,Country Garden had settled in ten centralized land supply cities, but only invested huge sums in Shanghai and Beijing, with a total cost of 65.438+0.363 billion yuan, and the total amount of land acquired by centralized land supply cities was 186544. The land acquisition area of equity is18410.3 million square meters, while the accumulated land acquisition amount of Country Garden in 20021-June is 80.35 billion yuan, and the land acquisition area of equity is 226 1.3 million square meters, that is, the equity investment in the cities with centralized land supply accounts for the total equity acquisition. Although there is a certain layout in the core cities, it is not the main investment position, so the willingness to participate in centralized land supply is low, and land acquisition in high-energy-consuming cities is more to supplement the demand for commodity value; Second, Country Garden has always maintained the advantage of low-cost land acquisition in the development process. The average land acquisition cost is stable below 3,000 yuan/square meter, and the land-to-goods ratio is below 35%, so the profit margin is abundant. However, most of the plots with centralized land supply are fiercely competitive, and with the rise of various invisible costs (such as competing for building talent houses, renting houses, and paying land for free). ), the profit margin of land plots is small, which is different from Country Garden's land acquisition strategy.
The epidemic situation and regulatory policies make most housing enterprises tend to turn to the first-and second-tier core cities with high certainty and hold a conservative attitude towards the third-and fourth-tier cities. However, "Arsenic is my honey" is a boost to Country Garden: Country Garden knows the rules of the third-and fourth-tier markets, and the housing enterprises hastily quit, reducing the local competitive pressure. The third-and fourth-tier markets without centralized transfer and competitors are almost the comfort zone of Country Garden.
04/ Diversification opens up the industrial chain, which is helpful to further increase the market share.
In addition to the investment strategy itself, Country Garden Group's diversified business lines have developed rapidly, which has played an empowering role in the real estate industry, such as Country Garden Robot, Country Garden Service and Country Garden Venture Capital:
First, Country Garden's robot industry. The robot industry in Country Garden can be divided into two categories: 1) Bo Zhi Lin Robot, which was established on 20 18, and is committed to developing systematic construction in the field of architecture. By the end of 2020, Bo Zhi Lin Robotics Company is developing 46 engineering robots, of which 4 have been rented and sold in the market, and 14 have entered the project for mass commercial construction, such as ground cleaning and indoor spraying. 2) Qianxi Robot, established on 20 19, is committed to developing diversified catering services. By the end of 2020, more than 70 restaurants have been opened, and 583 stand-alone equipments have been put into operation, including hot pot, clay pot rice, fast food, noodle restaurant and Chinese food. Robot restaurant can not only meet the higher requirements of food safety, but also solve the problems of process and efficiency, and can also be used in special circumstances. For example, when the epidemic situation in Wuhan is serious in early 2020, the clay pot rice robot donated by Country Garden can run 24 hours, and no one delivers meals, so that medical staff can eat hot meals at any time.
In addition, construction and catering are both population-intensive industries. On the one hand, China has entered an aging society, and the demographic dividend has dropped sharply. In particular, front-line workers in the construction manufacturing industry are easy to be left behind, and machines can replace manpower to complete some tedious, repetitive and dangerous work and solve the problem of "difficulty in recruiting workers"; On the other hand, the domestic construction industry is facing the problems of being too big to be excellent, and the degree of informationization and intelligence is low. Using robots can achieve standardized high-quality operations while ensuring speed, and promote the transformation and upgrading of the construction industry.
Second, Country Garden service. Because Country Garden has the advantage of "deepening the third and fourth lines and being close to the market", as early as May 20 18, it followed the national poverty alleviation policy and established a leading group for the revitalization of precision poverty alleviation villages. At the same time, the country garden service was further sunk, and strategic cooperation was reached with the township government. Since 20021,Country Garden has provided services to Xiaogang Village in Fengyang County, * * River Town and Suqian in Jiangmen City respectively. On the other hand, the presence of Country Garden services has enhanced the brand influence of the Group and laid a solid foundation for the Group's industrial projects or development projects.
Third, Country Garden Venture Capital. Country Garden Venture Capital has invested in 22 projects since its establishment, which are mainly divided into four categories: hard technology, community ecological chain, new consumption and great health. Among them, Aauto Quicker, Fruit Shell, Qinhuai Data and Platinum Doctor have all succeeded in IPO. In addition to financial benefits, empowerment after investment is also one of the main considerations of Country Garden Venture Capital, such as Shell, Zhuobao Group and Guangxi Mona Lisa, which are upstream and downstream industrial chain enterprises of real estate. , community service, rabbit logistics, rabbit food shopping, etc. When new consumer products meet Xiao Mian, Ke, Cha, etc. , medical and health products such as Zuodian, Ruipeng, Penguin Almond, etc. Country Garden Venture Capital can not only reach strategic cooperation with the group's docking resources, but also directly become a part of property services and develop in coordination with the main business.
Generally speaking, the diversified business of Country Garden Group has formed a good synergy with the main real estate. Robots speed up project turnover and reduce the cost of employing people. Property services and the government reached a cooperation to expand the brand effect. Venture capital investment projects cover the upstream and downstream of the industry, as well as the consumption and service fields, open up the whole industrial chain, and ultimately serve the main real estate industry and promote market share.
After the goal is determined, it must be firmly implemented, not overnight, especially for housing enterprises. After selecting the target market and target customer base, real estate enterprises will determine the investment strategy accordingly, make appropriate amendments according to the changes of policies or industry environment, and implement them firmly. However, if the investment strategy of real estate enterprises changes frequently, the market is not deep, and the management costs and marketing expenses rise sharply, it will not last long. Generally speaking, Country Garden has always adhered to the layout of the third and fourth lines, and continued to deepen investment in cities to meet customer needs, and finally crowned the king of the third and fourth lines. At the same time, a number of upstream and downstream markets have been laid out, and the whole industrial chain has been opened up, and the market share will further increase. This so-called "dedication and ambition, wide-ranging and diligent."