Wang Jianlin loves to tell the story of the renovation of old houses when Wanda 1988 was first established. At that time, the company had been established for half a year and there were no projects. In order to keep the company alive, Wang Jianlin went to the relevant departments and said, "No matter where we approve a little, let us have work and food." Some leaders saw Wang Jianlin take the initiative to find the door and gave Wanda a shanty town with a poor environment and an ugly image. At that time, there were only 40 people in Wanda. When Wang Jianlin discussed with you, he felt that there was no way to transform. If the company has no money, other companies will lose money when they settle accounts. Can Wanda make money?
This multi-pronged approach, "in a month's time, 1 0,000 houses were all sold out, and the price was sold at the high price of 1 per square meter in 600 yuan, and the house had just laid the foundation." At the end of 1980s, the net profit of Wanda was nearly 10 million yuan for this project alone. Wang Jianlin said that from here, he tasted the sweetness of the old city reconstruction, and Wanda became the first enterprise in China to rebuild the old city, setting a historical record. This is counted as the first step taken by Wanda in the process of continuous innovation.
Another story that Wang Jianlin likes to tell most is probably the reconstruction of wanda plaza, Taiyuan Street in C Yang. After the completion of wanda plaza in Taiyuan Street, hundreds of customers filed a class action lawsuit against Wanda, "because only about 3% ~ 5% of customers still have a decent rate of return, and most buyers have very low rate of return or even no income". Finally, although Wanda won the lawsuit, Wang Jianlin S said that "if you can't win the lawsuit and lose people's hearts, Wanda must take care of it", so he repeatedly studied the improvement plan.
Wang Jianlin's description of the improvement process is particularly comic: "We invited a group of experts to look at it, saying that this place lacks a cover, and the cover keeps out rain and snow, so business will be fine. We just spent tens of millions on a cover, and it's still not good. Later, some people said that the traffic in your basement was not good, and even with several escalators, business was still not good. Later, some people said that your investment was wrong, so we went to change a group of merchants. It will not work if you toss it back and forth for three or four years. " Finally, he came to the conclusion that this is a "problem from the womb", and the solution is: 654.38 billion yuan in cash to compensate the owner for returning the store, plus 500 million yuan to blow up and rebuild. Wang Jianlin said, "When Wanda returned the compensation, many owners were moved to tears on the spot" and "Wanda smashed 350 shops".
This story, which was repeatedly mentioned by Wang Jianlin on different occasions, is not only used to illustrate the most important truth in doing things, but also to explain Wanda's business model of "only renting and not selling": "This K does not mean that all properties in the urban complex are only renting and not selling. Houses, apartments and office buildings in the complex are all for sale, and it should be possible to recover part of the investment. Only commercial properties are rented and not sold, mainly commercial centers and five-star hotels. "
"Urban Complex" is the third generation commercial real estate concept put forward by Wanda, which belongs to "global innovation" and is called HOPSCA in English. Set hotels, offices, parking, shopping malls, exhibitions, apartment buildings in one. Wang Jianlin said that the mode of "only renting and not selling" is "a truth learned by spending huge tuition fees" and "selling shops is by no means commercial real estate". Recovering investment by selling shops will leave the future trouble of "smashing shops" in Taiyuan Street, C Yang. The concept of urban complex was put forward and carried out, which enabled Wanda to gain the bargaining power when developing real estate projects with local departments, and developed rapidly in an unconventional way, "creating a strange e in the world business history" and "stunned Americans and Europeans".
Speaking of business model, a story told by Wang Jianlin is very human. Around 2000, "two employees who entered the enterprise at the beginning of their business, one got cancer and the other got liver disease". At that time, private enterprises had no social security. Wang Jianlin said that in order to treat these two "entrepreneurial veterans", "how much did it cost" and "one person spent more than 2 million, and one person spent more than 6.5438+0 million". This caused him to think: "Wanda is still young and has only developed for more than ten years. By the scale of tens of thousands of people in thirty or forty years, many people are old and retired. What about medical expenses? " Therefore, Wang Jianlin has set a development direction for enterprises to realize long-term stable cash flow.
So, how can we achieve long-term stable cash flow? After a meeting and research, Wanda decided to do commercial real estate. Wang Jianlin's idea is simple: "Because we know how to build a house, although we don't know the business of attracting investment, we can recruit people who understand it." He said that this is the "Zunyi Meeting" that determines the correct development direction of Wanda.
Beyond the Soviet business model, Wanda's core competitive advantage was naturally established. After determining the direction of commercial real estate, Wanda quickly established the idea of "getting rich": "Before this, Wanda also did some rent-collecting properties, including seven or eight small shopping malls and restaurants, but it was often in arrears, forcing us to set up a rent-collecting team. In order to prevent this phenomenon, we proposed that we must find powerful tenants and collect rent from the world's top 500. K decided to start from Wal-Mart. "
Wanda was still a small company. In order to have the opportunity to cooperate with a crocodile like Wal-Mart, Wang Jianlin tried his best. First, he and Wal-Mart's vice president in charge of development repeatedly stressed that Wanda had good conditions, and finally let the other party agree to try a project first. Then, Wang Jianlin personally went to Shenzhen and talked with the CEO of Wal-Mart Asia Pacific several times. After more than half a year and dozens of times, Wal-Mart finally agreed to cooperate with Wanda to establish the first wanda plaza in Changchun. After the success of the first project, Wal-Mart agreed to continue cooperation. When it became the fifth wanda plaza, Wal-Mart finally agreed to sign a strategic cooperation agreement. Since then, it has attracted more multinational companies to cooperate with Wanda.
In fact, over the years, Wanda has tasted a lot of sweetness from vigorously developing cultural industries, and K has developed rapidly. However, Wang Jianlin has another insight into the traditional thinking of inheriting his father's footsteps. He repeatedly stressed to his son Wang Sicong that he would not leave his wealth to him, and encouraged him to leave Wanda to start his own business. In the future, if his ability can't meet the requirements of inheriting the family business, he will hire a professional manager, and K will not force him to become the next generation of "Wanda Head".