Yu Jianfu's business philosophy

Corporate philosophy: Rules come first, and Chairman comes second.

On the 26 Hurun Rich List, Yu Jianfu, Chairman of Nanxiang Group, just crossed the threshold of Hurun Rich List with assets of 8 million yuan, ranking 438th.

Yu Jianfu: A Kind-hearted Logistics Rich Man

On October 1th, 27, the Hurun Rich List was released for the ninth time since 1999, and Yu Jianfu, a Huizhou businessman, made the list again. On April 11th, Yu Jianfu also ranked 62nd with a donation of 25.4 million yuan, ranking second in the Hurun China Philanthropists List.

Huizhou merchants have always been the focus of Hurun. In recent years, there are only two Anhui rich people who have been shortlisted in succession, and Yu Jianfu is one of them.

The trade volume of "Anqing Guangcai Market" invested by Yu Jianfu reached 2 billion yuan in 23, and the third phase of the project has been completed. It is estimated that the annual trade volume will exceed 2 billion yuan after all the projects are completed in 26. In 23, Yu Jianfu cooperated with others to build a "glorious market" in Tai 'an, Shandong. In 1993, Yu Jianfu made his first pot of gold by wholesale sugar and liquor business. On November 13, 211, the shareholders' meeting and the board of directors of Anhui Nanxiang Group held a meeting and made a major decision on the adjustment of the group's governance structure. The meeting agreed that Mr. Yu Jianfu, the founder and shareholder of the enterprise, should step down as the chairman, and elected Mr. Ma Shiheng as the chairman of the group.

Rule No.1 Chairman No.2

Since 23, Yu Jianfu has spent 1/3 of his time in Anqing, 1/3 in Beijing and 1/3 flying around China. As the chairman of Anhui Nanxiang Group, Yu Jianfu, together with Zhejiang Delixi Group, Beijing Wumart Group and Hebei Langfang Xinao Group, established Beijing Demei Aoxiang Investment Co., Ltd. to replicate his success in Anqing Guangcai Market all over China.

Anqing Guangcai Market is a comprehensive and multi-functional regional business logistics center. The big market includes professional markets such as building materials city, textile city, daily necessities and auto parts. With a total investment of 1.4 billion yuan and a planned construction area of 1.55 million square meters, the first three phases of the project with a construction area of 74, square meters have been completed, with more than 5,1 shops and 5 supermarkets.

In p>23, the transaction volume of Anqing Guangcai Market exceeded 1 billion yuan. Anhui Nanxiang Group, which built Anqing Guangcai Market, realized 39 million yuan in revenue and its total assets surged from less than 1 million yuan before 1998 to 2.1 billion yuan. Since 22, Yu Jianfu has started to go out of Anqing, and successively built glorious markets in Bengbu, Anhui, Tai 'an, Shandong, Nanyang and Shangqiu, Henan, and Nanchong, Sichuan. The framework of a chain-operated regional commodity wholesale center operator has taken shape.

"When I wanted to build Anqing market, no one thought I could succeed." Looking back on the original decision, Yu Jianfu, the chairman of Nanxiang Group, was full of lofty sentiments and tragic words. Among the 33 key projects approved by China in 1998, there are five glorious markets, and the other four are better than Anqing in terms of geographical location and resource advantages. Now, Anqing is the only one that has successfully developed. "The success of Anqing Guangcai Market is not an accidental result," the resolute and enterprising Anqing native is always so confident, "but comes from a deep understanding of the rural trade environment".

The glorious cause has enabled Yu Jianfu's trading kingdom to achieve a breakthrough in scale. The so-called glorious cause is a plan of "development and poverty alleviation" initiated by China government in 1998 to develop the economy of underdeveloped areas through project promotion. Trade and logistics industry has become a key project of glorious cause because of its many employment opportunities and great driving role, and has received policy support from local governments, including obtaining land at a lower price. Yu Jianfu accurately foresaw the demand of large regional wholesale markets, and in 1998, it intervened in the Glory Plan to build Anqing Glory Market.

The high logistics cost in China gives the regional wholesale market an opportunity to develop. There are more than 9 million rural people in China, and these people live in very scattered places, which determines that it will be difficult for rural areas to form centralized consumption like cities for at least the next 5 years or even longer. According to statistics, 2% of China's GDP is consumed in inefficient logistics. Under this national condition, it is difficult for manufacturers to directly radiate their products from the origin or first-tier cities to the vast rural market. On the other hand, although the income growth of farmers in China is much lower than that of cities, the gap between farmers' consumption consciousness and cities is narrowing. Large-scale and comprehensive regional wholesale markets have filled the needs of retailers in rural areas for low cost and high efficiency.

Nanxiang's several glorious markets in Anqing, Bengbu, Tai 'an, Nanyang, Shangqiu and Nanchong all have some characteristics in common: these cities are small and medium-sized cities in the second and third tier, with underdeveloped economies and low gross domestic product; The urban population is small, but the rural population that can radiate is huge; Most of them are located in traffic fortresses and have good location advantages.

For example, Anqing borders Hefei in the north, Jingdezhen in the south, Jiujiang in the west and Wuhu in the east. There is no second regional central city in this region, and Anqing has a strong radiation ability to tens of millions of people in this region. Recognizing this location feature, Anqing Guangcai Market, developed by Yu Jianfu, has become a commodity distribution center in this region. With the fourth phase of the project, which focuses on large-scale exhibition, e-commerce, large-scale warehousing and distribution, the radiation range of Anqing Guangcai Market even reaches Fujian, Guangdong and other regions.

Su Chuanlou, who runs the building materials business, used to run in Huazhong Road in Anqing City. The shops dealing in building materials products there are very scattered, with a monthly turnover of only 2, to 3, yuan. In 1997, he joined hands with 18 other building materials companies in the city to move into the glorious market. Today, his 3-square-meter shop has a monthly turnover of more than 2, yuan. "The building materials retail stores in the following eight counties all come to me to get the goods," Su Chuanlou said with great pride.

48-year-old Yu Jianfu started his business career as early as the planned economy system, starting with the establishment of a popsicle factory in a small village in dongzhi county, Chizhou in 1978, and then turning over wood, running a black-and-white video hall, and then going to grocery wholesale and retail. In 199, he contracted the Anqing office of dongzhi county Native Produce Daily Necessities Company, which suffered losses for many years, and made it turn losses into profits quickly. Three years later, he founded Anqing Nanxiang Trading Company, mainly engaged in the wholesale business of sugar and wine. Because of its good credit service, the trade volume reached 2 million yuan in two years, ranking among the "Top 5 largest private enterprises in China" that year.

Yu Jianfu, who has been doing business for nearly 3 years, knows well the needs of wholesale traders. The design of Anqing Guangcai Market fully considers the needs of business owners in the actual operation process. The roads are wide, the trunk roads are connected with each other, and households face the street. There are no business dead ends in many markets. Large trucks can enter and exit very conveniently, and goods can be loaded and unloaded at the front and back doors of shops. Although Tongji Design and Research Institute was hired to do the design, Yu Jianfu personally asked about the design details and went back and forth to Shanghai for many times to discuss the details with the designers. "I've been to many big markets all over the country, and no market has been designed with the needs of business owners in mind," said Su Chuanlou, the owner of building materials shop.

New Changjiang Group is the developer of another big commercial market, and it is in Anhui Province with Nanxiang. The Yangtze River Wholesale Market developed by its founder Wei Chao in Hefei, the provincial capital, is also quite prosperous. This market is a "origin market" built around the origin of goods. New Yangtze Group also has large wholesale markets in Wuhu and Chuzhou.

Different from the Yangtze River Market, Anqing Guangcai Market is a "land sales market" completely built from scratch. Despite the potential demand, it takes time to cultivate popularity to build such a big market. In the early days of opening, in order to attract business households, Nanxiang Group even operated some shops by itself to accumulate popularity. In order to promote the operation of merchants, he spends more than 1 million yuan every year to plan and publicize for merchants free of charge and hold various forms of exhibition and trade fairs; In order to facilitate distribution, 1 minivans were purchased at one time and presented to merchants. He also gave cash subsidies to buses passing through Anqing to attract them to pass by Guangcai Market and promote logistics and people flow.

China has built many big markets, but most of them have not been successful. A considerable part of the reason is that developers are involved in this field with the idea of real estate developers. They make enough profits by speculating in shop real estate, and then let merchants operate freely. With the breeding of real estate speculation in the market, business households gradually lose profits due to rising costs until they withdraw.

Yu Jianfu, who was born in trade, understands the worries of business owners. In Anqing Guangcai Market, he only sells 6% of the shops and keeps 4% for lease. While vigorously developing supporting services, he took measures to curb real estate speculation in shops and conducted strict qualification examination on buyers and tenants, and no real business households were allowed to enter; Persuade those who have bought shops for the purpose of investment, and Nanxiang will provide unified leasing services for those who refuse to quit. The prosperity of Anqing Guangcai Market is a real transaction prosperity, unlike the real estate prosperity in some markets.

although Yu Jianfu claims that he is not interested in real estate, the income from the real estate sector still accounts for the majority. However, he believes that the income from value-added services will rise. The fourth phase of Anqing Guangcai Market, which is under construction, covers an area of about 1, mu with a building area of 8, square meters, and will be put into use in 26. The fourth phase focuses on large-scale exhibition, warehousing and distribution, and comprehensively enhances the service function of the big market. He predicted that by then, the annual transaction volume of the whole big market will reach 2 billion yuan, which can provide 6, jobs.

Xiangjiang Group is another large regional wholesale market operator in China, with large wholesale markets in Liaocheng, Linyi and Nanchang, Jiangxi. However, Xiangjiang Group's business ideas tend to make money from real estate. Except Liaocheng market, the trade development of other markets is not satisfactory. The third phase of Anqing Guangcai Market is a joint venture between Nanxiang Group and Xiangjiang Group. Xiangjiang Group invested more than 5 million yuan, holding 51%.

Due to the difference in business philosophy between the two parties, Yu Jianfu finally bought back the equity of Xiangjiang at a price of more than 1 million yuan, and then adjusted the chaotic third-phase operation.

what local governments need is the real prosperity of trade, not just the appreciation of real estate. Because of the good balance between the interests of enterprises and the social benefits of the project, Yu Jianfu won the favor of local government departments and offered preferential measures in succession, inviting him to explore new markets. Yu Jianfu also began to go out of Anqing and plan his chain business logistics kingdom.

in p>22, Yu Jianfu marched northward and invested 1.8 billion yuan with Beijing Wumart Group to develop 1.5 million square meters of Bengbu Guangcai market. . In 23, he joined forces with Zhejiang Delixi Group, Beijing Wumart Group and Hebei Langfang Xinao Group to form Beijing Demei Aoxiang Investment Co., Ltd., and plans to develop about 3 glorious big markets in five to eight years.

Nanxiang Group owns 35% of the shares of Beijing Demei Aoxiang Company, and it is also the company that actually provides management support for various investment projects. Yu Jianfu is the chairman. The first project developed by Demei Aoxiang Company was Guangcai Market in Tai 'an, Shandong Province, and then successively established and developed Guangcai Markets in Nanyang, Shangqiu and Nanchong, and reached the project intention with Mudanjiang City, Heilongjiang Province.

however, his grand plan was not smooth sailing. At the initial stage of construction, Tai 'an Guangcai Market, headed by Chen Feiyue, the former vice president of Delixi Group, had many problems: the target customer orientation was too narrow, real estate speculation prevailed, and merchants did not respond enthusiastically. Yu Jianfu attributed the problem to quick success and instant benefit, and managed the business market with the mentality of managing real estate. Today, he personally serves as the general manager of Tai 'an Guangcai Market, and "sets things right" for the market. On the one hand, reorganize the layout of professional market, increase the types of business and expand the target customers; On the other hand, we will crack down on real estate speculation, dissuade investors, and help those who refuse to quit to sell and sublet. Under his strong intervention, the market order in Tai 'an has gradually improved, and it will be officially opened at the end of this year.

obviously, it needs a lot of capital to build a regional business logistics center with chain operation, but the financial pressure to realize this dream still exists. The company has the idea of listing in Hong Kong, but Yu Jianfu is still in the process of selection and analysis due to the prudent characteristics of Huizhou merchants.

"In less than 1 years, a number of Huizhou merchants will rise again," Yu Jianfu said gravely. His face is always engraved with fortitude. He ridiculed himself as "a face of class struggle", but behind his unsmiling is the sedate and worrying characteristics of Huizhou merchants. In the lobby on the second floor of Nanxiang Group Building, you can see a slogan: "Products we make-rules". No matter in Nanxiang Group or Germany-America Aoxiang Company, Yu Jianfu preached "rules first, chairman second". He expects the company to become a modern, international big company, and can continue to operate without relying on "one person". "This is my dream," he said. But at least so far, I'm afraid it's hard to guarantee Nanxiang's goal of building 3 glorious markets without Yu Jianfu.

The development space of regional commercial logistics market has attracted many entrepreneurs like Yu Jianfu. Wang Chaobin built China-Mainland Logistics Plaza in Henan, Qian Jinnai built Dehui International Plaza in Xinjiang, and Liu Zhiqiang built China Trade City in Shandong and Jiangxi. It can be predicted that there will be more regional wholesale market developers on Forbes China Rich List in the future, and Yu Jianfu will obviously meet competitors.