Business Leaders Annual Meeting Guests | Fuzhong Group Chairman Yang Zongyi Fuzhong on the Industrial Road

2018 Business Leaders New Year Forum Participant Series Report 4

Chairman of Fuzhong Group Yang Zongyi has confirmed participation Attend the “New Change and New Beginnings & Mdash;— 2018 Business Leaders New Year Forum hosted by the Business Media Group. From January 24th to 25th, 2018, he will have some wisdom in the series of lectures on the glorious and dreams of entrepreneurs in the 40 years of reform and opening up.

Yang Zongyi’s Fuzhong Group is not a star enterprise in a broad sense.

But no accident, at the end of August 2017, the National Federation of Industry and Commerce released the list of the top 500 private enterprises in China. This company, which is invisible in Nanjing, will be on the list for the 15th consecutive year. And for 15 consecutive years, it has reached a new high and has entered the top 100 private enterprises in China.

Nanjing is famous for its ancient capitals of the Yangtze River and the Six Dynasties. The dynasties, like the rivers, are all flowing, and the list is like the rivers and dynasties under the Purple Mountain. We saw the counter-current flooding of the Fuzhong Group on it, and we saw these turns like rivers.

The river flows and grows, hiding the sun and the moon. At 5 pm on August 6, 2017, “Business” interviewed Yang Zongyi, chairman of Fuzhong Group, face to face.

The 53-year-old Yang Zongyi, who is still defining a new industry, sleeps only 4 hours a day, and changes the practice of weekend non-business in Nanjing Zhujiang Road by his own efforts. From the sales of computers in 3 people in 1 facade in 1995 to more than 30,000 people and more than 100 subsidiaries, the annual sales exceeded 50 billion yuan. Yang Zongyi forged the Fuzhong Group into a continuous subversion of the industry and self, and remained hungry. Thirsty and restraint, and time to be friends, “Dajiang-type enterprises.”

3+3=+

In 1995, Taiping North Road, Nanjing, a small square of less than 20 square meters, only three employees, “Fuzhong computer facade, in this stormy At the moment, it is quietly open. For the Zhujiang Road with a total length of 3.1 kilometers, it is like a light bulb in a neon. The bright and the non-lighting will not affect the whole technology street.

But four months later, in March 1996, Yang Zongyi replaced the store’s signboard with “Fuzhong Computer=3+3=Fuzhong Computer”. Parts are replaced in the first 3 years and repaired in the next 3 years. The peers think he is crazy.

At that time, domestic and foreign brands have a one-year warranty on the larger computers, and small compatible machines have only three months warranty, 3+3 in Fuzhong, and the warranty period from one year to one. Extended to 6 years. According to the average frequency of the computer’s 6-year update, Fuzhong Computer is almost a lifetime warranty service.

& ldquo; After the addiction is dead & ldquo; but for 3 months, the entire Pearl River Road strongly questioned Yang Zongyi, and this suspicious suicide “disrupted the behavior of the industry.” Three months, six months, one year later, Fuzhong Computer not only did not die in the curse, but also quickly became the flagship brand on the Pearl River Road.

One day, Yang Zongyi was inexplicably called to the Jiangsu Computer Industry Association. As soon as they entered the door, more than 20 media and the top 20 computer companies in Zhujiang Road attended the meeting, waiting for the Jiangsu Provincial Computer Industry Association to “Yue Zongyi” “suicide-type behavior to seriously disrupt market order”.

Yang Zongyi found a drawing board detailing his “3+3 service logic & mdash;— for computer compatible machines, memory modules, motherboards, graphics cards, etc. are different. supplier. On the basis of the original wholesale price, Yang Zongyi carried out different price increases and purchases, and agreed with the supplier that the parts had problems and were replaced within a certain period. Many times, parts have problems, often a certain solder joint failure, is a waste for consumers or retailers, but returned to the manufacturer, with a little repair can be re-sold with new parts.

Bundled with suppliers, using the market to force factories to improve product quality, today is C2M, placed in the market where price wars at that time, called subversive innovation. Yang Zongyi’s confession, which preserved the 3+3 service of Fuzhong, also attracted the imitation of the market, such as “3+1+5” and “5+5” and “3+3+3”.

Painting tigers is not an anti-category. The seemingly simple 3+3 service is behind Yang Zongyi’s precise calculation of the Moore’s Law of computer parts, as well as the linkage of inventory, after-sales, supply chain management, etc., and the logic of writing rulers is also early. Consumers have established the brand image of Fuzhong Computer.

Two years later, Fuzhong Computer opened its competitors far and once occupied 60% of the market share of Zhujiang Road. At the same time, Fuzhong began to walk out of Nanjing, and successively opened more than 200 “3+3 franchise stores” in more than 20 provinces and cities nationwide, and entered the top 5 Chinese computer.

Nowadays, on the basis of Fuzhong Computer 3+3, Fuzhong Group’s small 6 beautiful fresh “ 3 minutes out of the library, 3 hours delivery, Huayang Insurance’s “3 Experts + 3 kinds of program guarantees have become the continuation of Fuzhong’s service innovation and subversive spirit, and this has become the core gene of this enterprise.

The mountain that climbs up, the river that can’t swim

compared to 3+ 3 The importance of service to Yang Zongyi and Fuzhong Computer is more important. Yang Zongyi’s sales idea from price to service has finally changed the service pattern of Nanjing and even the national computer sales industry and even IT enterprises.

in FuUnder the impact of this, all IT companies have begun to focus on services, focusing on the interests of consumers. When the 3+3 service almost became the industry standard, Yang Zongyi must find a stronger killing for Fuzhong.

With the title of Nanjing Zhongguancun, Zhujiang Road has always been busy during the day, and the flow of people is like a weaving; and at night, the store closes early and closes, and suddenly a street, the weekend is the rest of all businesses. day.

One day, people saw a brilliant light on the dark Pearl River Road. This evening, Yang Zongyi’s Fuzhong 3+3 flagship store was put into trial operation, and decided that all Fuzhong computer stores will be open until 10 pm. At the same time, on weekends, pedestrians noticed that Zhujiang Road, where the car was sparse, there was a person wearing glasses at the door of Fuzhong Computer — that is Yang Zongyi distributed the flyers everywhere.

At this point, there was a wonderful scene on the Pearl River Road. On the night of the lonely lights, Fuzhong Computer “opened the nightclub; on the weekend of the blessing, Fuzhong Computer”, the big promotion; Thirty, Fuzhong Computer “ does not close the door. And “Fuzhong” “FZ (Fuzhong Pinyin initials) “mad” “Zhang Zongyi, but also drawn an equal sign.

Looking back, Yang Zongyi seems to be destroying the rules of the industry. The main line is to find the pain points of the industry around the user’s needs, and challenge himself in the logic of the time battlefield, service battlefield and retail. It inevitably affects the entire industry.

However, Yang Zongyi did not follow the path of the computer store. One of the logics is, “When a unicorn has appeared in the industry, the top three in the industry, you have to change the track early.

2004 was a year of shock in the IT industry. In June and July, Gome and Suning went on the market, and the offline 3C product retail market became a battle between the two tigers. Zhujiang Road Started a big round of cleaning. In addition, there has been a shocking world of “snakes”: Lenovo Group announced that it has acquired IBM’s global PC business for US$1.25 billion, becoming one of the largest overseas acquisitions at the time.

Wind and rain, although the sales of PCs in Fuzhong have ranked in the top 5 in the country, the profit of the industry has slipped from the first few hundred points to 3~5 points. The horse brought by Lenovo in the future Too much effect also blocked Yang Zongyi’s hope to swim in the past.

Industry Core and Diversified Logic

The emergence of unicorns, the rise of e-commerce platforms such as Jingdong and Ali, suddenly attacked all 3C stores nationwide including Zhujiang Road. The survivors, including Fuzhong, eventually went to the path of diversification.

Yang Zongyi began to test real estate, investing 100 million yuan in the “China’s first business district, Nanjing Xinjiekou, a professional store that operates digital 3C; acquired Nanjing New Technology under the Nanjing Science and Technology Bureau. The Institute of Applied Research has become one of the earliest research institutes for medical microwave technology research in China; in the three districts of Nanjing Xuanwu, Jiangning and Pukou, it has opened three high-tech industrial parks with a total area of ​​more than one million square meters. In 2010, Fuzhong visited and planned to invest in the renovation of Liuhe Old City and the construction of Gaochun New City, using real estate to promote the evolution of Fuzhong IT industry and urban construction.

Map of Fuzhong Group’s Global Headquarters

Yang Zongyi himself has summarized: “No” The industry is unstable, there is no trade, and no real estate is not rich. This sentence was later changed to the Fuzhong Group according to changes in the market. There is no diversification logic of no industrial instability, no trade, no finance and no wealth.

Since then, Fuzhong has entered the chain of hotel chains, financial investment, etc., and has gradually formed a diversified industrial sector of real estate, health, finance, and IT. “I want to use the money earned from real estate to invest in other more valuable industries. Yang Zongyi said,

To some extent, Yang Zongyi’s pluralistic logic has obvious Li Ka-shing characteristics —— real estate hotels, port terminals, infrastructure, energy, retail, water and electricity transportation, which are related to the national economy and people’s livelihood. The most traditional big industry bottoming, through these industries to establish “forever commercial business and cash flow and profits, and then invest in the social platform Facebook, artificial intelligence Deep Mind and other inputs relatively small, but the recovery may be the most cutting-edge high Technology industry.

Based on the stability and survival of traditional industries related to the national economic foundation, we will look for opportunities for feedback and innovation in real estate and finance sectors based on changes in the times.

Only the times and the feelings of the industry can not be disappointed. This is the universal values ​​of Chinese new industrialists.

Rhombus theory, vents and thresholds

People who don’t lose their senses know where the wind blows, and if necessary, they can become “pig.” But if you can take off, you need to know the angle, duration, weight, and fear of the wind. Especially for enterprises that are on the path of diversification, there are too many variables to consider when cutting into a certain business, from industrial coordination to internal management.

In the interview, Yang Zongyi proposed an interesting “diamond economic model” for the choice and cut-in of Fuzhongfengkou: “When an industry or even a society grows at a high speed, the main force will lengthen the growth end. Form a thin and high diamond industry and social structure. When there are too many industry entrants and imbalance between supply and demand, the diamond will traverse, and the problem of backlog will be inflated.

So when judging the entry and exit threshold of an industry, the growth is empty.The size of the room, the size of the player, the amount of player participation, etc., determine the variable of the length of the diamond, which becomes quantifiable. Although starting from 2016, the surface of the country’s macroeconomic downturn, the old and new kinetic energy conversion, the black swan incident frequently, but Yang Zongyi saw the underlying logic, Fuzhong diversification began to contrarian expansion.

In September 2017, Fuzhong was the representative of the urban humanities living room in Nanjing Week. Fuzhong once again represented the Chinese national enterprise in New York.

The future of Yang Zongyi and Fuzhong has just begun.

(This article was originally published in the September 2017 issue of Business, and this issue has been abridged)



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