"Rational Redemption" of Zhengzhou International Commodity City

Uniform dress code, standard management, unified promotion... Entering Zhengzhou International Commodity City gives people a feeling of glory and cleanness. The shopping environment completely overturns the general impression that the commodity market is crowded and cluttered.

It is an enjoyment to “look at what’s interesting to buy” mentality. "To put it simply, we are not only selling goods, but also selling services." Referring to Zhengzhou International Commodity City's business model, Planning Department Manager Zhou Xubin said.

Zhengzhou International Commodity City has been planned and expanded many times since it was established in 1997. It has now become the largest batch of small commodity bases, commodity distribution centers and exhibition centers with the strongest radiation in the central and western regions. The Central Plains Commodities Wholesale Market topped the list.

Today, after more than ten years of continuous development, Zhengzhou International Commodity City has made a choice in the face of the future: through the repurchasing of shops, the stable development.

"As an investor, management rights and property rights, which one would you choose? Without property rights, the right to operate will not be guaranteed," said Xiaokai, deputy general manager of Zhengzhou International Commodity City.

The deposition time in 13 years dates back to 1997.

At the end of the year, Zhengzhou Small Commodity City officially opened, which is now the predecessor of Block B of Zhengzhou International Commodity City. It echoed with many commerce and trade cities such as Yinji Trade City, Shenghe Commodity City, and quickly grew up in the Zhengzhou Railway Station business district.

“That was an era of grabbing the site. The company’s strength was extensive, and it quickly became the industry leader.” Liu Suiyuan, a merchant who is familiar with the railway station business district, told reporters.

Under the hot market, Zhengzhou Commodity City earned the "first barrel of gold."

Under the prospect of vigorously developing the commodity market in Zhengzhou that year, most people completed the original accumulation.

However, under the impact of limited business model development and increased market competition, the Zhengzhou Railway Station shopping district experienced several major reshuffles, during which Shenghe Commodity City withdrew.

During this period, the Zhengzhou Railway Station shopping district was only at the “wholesale” level, and the stall market and road market became the mainstream business model in the industry.

Time came in 2005, Wang Jinting, the current Chairman of Zhengzhou International Commodity City, realized that the traffic volume at the railway station is large. If it is not timely reformed, it is bound to bring unimaginable consequences. Thus, a transformation of Zhengzhou Commodity City was brewing in his mind.

In 2005, Zhengzhou Small Commodity City Tower A shocked and opened, and then in the original B Block to carry out transformation and upgrading. Wang Jinting was given a brand new name - Zhengzhou International Commodity City.

Subsequently, the market in the railway station shopping district that had been quiet for a long time began to rapidly upgrade.

In addition to hardware upgrades, Wang Jinting also has innovations in business models and management methods. He will take out 1.5 million yuan each year as a special advertisement for the market to help the market grow and expand to the surrounding areas.

Today, a modern commodity city stands beside Zhengzhou train station. The shopping center has bright colors, fashionable atmosphere, and rich product display. It has dozens of industries, more than 10,000 kinds of commodities, and almost covers all daily necessities such as craft gifts, small household appliances, electronic appliances, toys, sports offices, clocks and watches.

Take the Expertise and Cooperate Path The lofty dream often confuses people's eyes and makes them ignore the roads at their feet, and they often lose their dreams due to insufficient internal forces.

"Being a small commodity city, if it can't be small and complete, it must be done with specialization," said Yan Xiaokai.

In Yan Xiaokai's view, a company can only do special skills to do fine, do fine to do a good job, do a good job to become bigger and bigger to do it for a long time. With China’s fierce competition today, achieving a large scale may cause costs to spiral out of control. "Companies should not invest in chaos, but should calmly consider improving."

Obviously, the positioning of Zhengzhou International Commodity City is very clear.

Although after more than 10 years of accumulation, there is a certain foundation, there is also the dream of “creating the first brand of the Central Plains Commodity,” but it is still in a period of development, and its strength is not enough to support its vigorous expansion.

It is the first reason why Zhengzhou International Commodity City can achieve its current results. It is also a feasible solution that other small commodity markets and even the entire small commodity industry can use for reference.

At the same time, Zhengzhou International Commodity City actively integrates diversified and user-friendly market services, through e-commerce, "going out" external cooperation strategy, internal merchant training and "business chambers" to guide the market and other development models, and CITIC Bank [5.69 1.07%]Zhengzhou Branch cooperated to set up a special financial service organization, introduced the world fast-food giant KFC to provide catering services, and introduced more than 40 merchants, including the head of China's jewelry industry, Shin Kong Jewelry, to the mall.

"This kind of cooperation, with the help of external forces to promote a good opportunity to leverage the development of Yiwu model." Zhou Xubin said.

Repurchase shop rational salvation "The original sale of shops, only as a temporary measure of working capital, sold out of shops have already felt a loophole in the mall management, if not repurchased in time, will give the mall's unified management, unified management to stay Failed to write a pen." Yan Xiaokai said with emotion.

Zhengzhou International Commodity Co., Ltd. - Hong Kong Zhongcheng Jiasheng Management Co., Ltd. resolutely implemented this program.

It can be imagined that the cost of repurchasing shops is very high, which brings huge financial pressure to the market.

"Repurchasing shops is to manage the market more effectively. This is also a must. The mall must have a long-term plan," said Yan Xiaokai.

However, this is contrary to the current practice of relying on retail shops to repatriate funds. “The practice of repurchasing shops in Zhengzhou Commodity City is obviously sensible, and rational redemption is to better develop shopping malls,” said an insider who understands Zhengzhou Commodity City.

“For now, some commercial shops in Zhengzhou Commodity City have already reached an unreasonably high level of prices, and there is basically no return value at all. However, these shops are also in an important position in the shopping malls. If they do not buy back, the overall thinking of unified management is only Can be empty talk.” The industry believes.

In fact, the strategy of repurchasing shops has already been applied in some successful commercial real estate projects. Obviously, this attempt is not an adventure for Zhengzhou International Commodity City.

Zhou Xubin introduced: “Through the repurchasing of shops in the past few months, we have basically taken back the original property rights, leaving only a small number of shops not yet recovered. I believe it is not a big problem.”

"Actually, whether for long-term repo or short-term repurchase, for the shopping mall, the restoration of property rights is a good thing." Zhou Xubin said that after Zhengzhou International Commodity City has acquired the property, it can either manage the mall itself or create more and better. The transfer opportunity can increase the transfer price at the same time.