Flexpower Inc. (FLXP)

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21st Century Economic Report 2007-12-24 11:59:28


　　
[Editor's note] the value of agriculture
　　
The last month of 2007, the Shanghai index in the financial and real estate market view for a pullback, as a small market segment, agriculture逆市strong, a number of consecutive trading days plate or living in the forefront.
If this collection, the de facto around those released from the Corporation's research report, you will find that 90% of the investment strategy, the forecast: in 2008, agriculture segment will outperform the market. Support for this view, sum up, there are several following: 1. Demand (consumer demand and the demand from industrial) strong growth in the supply of agricultural products at home and abroad remains tight, prices will continue to rise, 2. Long-term cost (human cost and the cost of raw materials) increased the expected 3. industries under the favorable policy and the transformation of industry enthusiasm, the industry will gradually enter into a virtuous circle.
However, in the eyes of some people, such as New Hope Group chairman Liu Yonghao, "outperform" it is nothing really exciting thing is just the beginning.
He said, it was "30 years Hedong, Hexi 30 years, agriculture has also stood up." Liu Yonghao judgement is: On the one hand, consumer demand is escalating the need brand products; On the other hand, farmers choose Jin City workers to the enterprise realize the industrialization of agriculture release; Finally, the policy to guide enterprises. And the New Hope Group is prepared to begin from 2005, in 2006 established a "world-class modern agriculture Group restructuring" strategic direction.
And Liu Yonghao, like that from the long-term perspective, agriculture, in order to enter a phase of rapid development, has seeds in the two large global companies (Monsanto, Pioneer and DuPont) spent more than 10 years of DuPont cause of the pioneers in China General Manager Liu Shi. His reasons for this are: bio-energy and bio-chemical evolutionary process, the agricultural products has gradually become an important "resources." In his view, then, agriculture may show similar to the IT industry, "Moore's Law" of the development. By that time, in the biological engineering technology traction, the upgrading of agricultural products will be dazzling. This sounds cool.
From another angle to the industry to enter the era of the integration of escalation, it is not only cool, but also very cruel. As the world's largest agricultural producer and consumer countries, China's agriculture companies, the prevalence of this lack of economies of scale, the ability to cope with risks weak at the same time they tend to diversify, rather than industries, corporate governance issues worrying At the same time, lack of brand awareness and innovation.
In view of this, we elected the current four companies, namely, Hebei, a very good day for business, Inc., New Hope Group, the Shanghai-love meat products, as well as Fujian Limited ancient fir, from a strategic choice, brand building and industry innovation approach to trying to show the agricultural industrial chain on the path choice of different companies. (Huang Chen Xia)
　　　　
Our reporter Xiao-Ping Chen Huang Chen Xia Beijing, reported Cangzhou
　　
Targeting a broad Ersanxian cities and rural markets, so as to the chain of convenience stores started Hebei good life, to a super coverage in North China's supply chain services, for the other side "really not" the "good old days" chain networks, logistics solution , and capital flow and information flow.
　　　　
Dooling Street, Cangzhou City in Hebei Province, 15 km west of an alley, February 3 about 100 metres long. Rural secondary schools, barber shops, old farm machinery stops along the street, most of these old, modified Not cottage, but the "good old days convenience stores," particularly eye-catching bright red shop strokes.
This labeling 270 "Dooling shop", about 50 square meters, a POS machine, two Lihuoyuan, four Pai shelves, the mass brand of consumer products, categorized, and the urban areas there is not much difference between a convenience store. And in the 23 km, Cangxian plant next spring, a traditional rural Fuqidian, bulk food bags occupy counters, counter adjacent to the corner of the wine, edible oil, soy sauce Dandanguanguan. It is said that the good old days before the appearance rural convenience stores generally the case.
Today, the "good old days" already has more than 1,600 members franchisee and network outlets and in Beijing, Shijiazhuang, Cangzhou built three logistics for the distribution center.
This is also one with some "local flavor" of the company, in November this year, financing options Esprit Group with the United States reached an agreement restructuring and listing. After the reorganization, the two sides will establish a joint venture company, which controlled 90 percent good day, and use the powder single market Esprit (Pink Sheets) Shell Resources, the good life in the United States powder single market. Dacheng partner in the law firm LU Liang Biao lawyers believe that such financing exist in the form of equity in the distribution may be unreasonable, Shell Resources outstanding debt may exist, such as risk, but in Gudongmei view, very good day for the financial advisers and legal consultants Unit will be to control the risk for an easy way of financing and financial resources to be OK, and reorganization of Esprit have other benefits, "Esprit chain operations in microfinance are very experienced, rural micro-credit in the future China will also have an enormous business opportunities. "
Hebei shares in the good old days of commercial companies (hereinafter: good days), general manager of Gudongmei planning, good day beginning after the first transition, it should become "Qianshouqianwen."
　　
"Chain" from the rural areas
Back to nine years ago, in December 1998, the good old days of unity in Cangzhou urban district, opened its first Direct convenience stores. Auntie near Lee said that when she first found buying things is a fun, "to the shop Diaodiaojianjian" almost daily to. Cangzhou city is the first good day to the convenience store Format forms, standardized operating chain business, "It would be really good day fire for a while." Auntie Lee recalls.
At that time, the location is very good day for the community chain convenience stores, quickly opened more than 30 bistros. However, the commercial chain model is very easy to copy, soon there will be a competitor, "Later, the Fidelity supermarket is also feeling good life than fire," Auntie Lee said, "there are now home around four supermarkets, convenience stores, I am now less to the good life. "Moreover, chain needs expansion, Cangzhou city's population of nearly 7 million, the urban population of only 500,000, an easy start to the surrounding rural areas looking for the cause of development of" BlueOcean. "
August 2002, the first Farm Shop - Hejian Lebanese residents shop opened. , The good life that the business environment in the rural areas and the cities are quite different, there will be great changes in product configuration, the results showed that "the needs of the rural population is similar, especially the young chain operations for the model is very acceptable." In fact, Dooling on rural youth and the city wearing almost.
Hejian Lebanese residents to shop franchisee is the form of the good life is the delivery of goods, information support, personnel training, as well as brand management, joined the responsibility for funding, the venue, as well as water, electricity and other operating expenses. Later, the good old days farmers will be attributed to shop franchisee "six reunification": CIS unified identification system, unified logistics and distribution system for unified human resources management system, unified financial management system, unified operation and management systems, unified information management system.
In developing the rural retail market, according to the Ministry of Commerce data show that there are now roughly four ways: First, leading enterprises driven, urban leading enterprises through exporting brand, management, sourcing, and so on, using Direct, and other ways of franchisee outlets extended to the rural areas to the city, on a good day of this type; second reference innovation, enterprise through the introduction of large-scale circulation enterprises, management skills and marketing concepts, after the establishment of their own brands to the rural market penetration; joined three is the integration of resources, such as leading enterprises supply and marketing cooperatives and joint fourth rural service clubs, for example, Jiangsu has set up the "Comprehensive Service for farmers," more than 5,000.
China Chain Management Guo Geping, chairman of the Association pointed out that, before the expansion of rural market presence "dilemma": rural geographical dispersion, the high cost of distribution, product delivery to the rural areas to high-end prices, while rural incomes, the low level of truth require low-cost products This is also prevalent in rural areas of the reasons for poor quality products. "However, the situation is now changing, with the income level of farmers, their quality, safety needs improving."
And the impetus for the good life into the rural market has helped. In order to further tap the rural consumer market, the Ministry of Commerce in 2005 from the "thousands of rural villages," the market works, "strive to three years, in the pilot regions produce about 250,000 farm shop and to form a City stores as a leader, township shop as the backbone, based on the village shop for the rural consumer business networks and gradually narrow the gap between urban and rural consumption. " The localities have generally adopted a corresponding support measures, for example, Hebei financial budget 24 million yuan each year out of funds, the rural market outlets for the new expansion, and cultivate new-type rural commercial activities, distribution centers and the construction of information network platform. "Good old days is' 1,000 rural villages' pioneer project to promote, and they are also the beneficiaries." Guo Geping said.
Lebanon joined residents shop is a former individual shops, the highest daily sales of less than 1,000 yuan, is a "million rural village of 1,000," the scope of the transformation. Chain operations after joining good day, or an average sales reached 3,000 yuan. Gudongmei said, "joining the store sales growth of 100 percent, and profit margins will increase more than 50 per cent." Sales growth, mainly from the increase in commodity types, service attitude and standardization of stores. "The good life is not how much cheaper price things, but in a brand reputation, true, we bought assured, especially to children buy." Holding a grandson grandmother said.
During this period, Gudongmei attaches great importance to services, labeling 115 "Cang South shop" Lihuoyuan said, "In the past convenience store can often be seen Jia total, she attitude of the Federation of Hong Kong, the venue mentioned comments, I met to once. addition, supervisors often have to inspect. "According to her, before the appointment, good day to provide the cash register Cangzhou Branch, cargo management, and other areas for a week-long training," Sometimes, we will have to meet major say that the issue of services. "
Gudongmei in 2006 in an interview on the rural franchise investment is 30000-50000 / store sales generally have a few thousand dollars per day, the margin is 15% -16%, and return on investment for the 2 -- three years.
Initially, the good life membership fee receipts, reserves and the right of self-merchandise revenue. In a good day's advertising investment, "membership fees, sales of 60 square meters in the following collection of 15,000 yuan membership fee, more than 60 square meters in charge 20,000 yuan; the right, the first year sales charge 10% of the Maori from the second year onwards collect sales to 20 per cent of Maori. "report has pointed out that other chain, good day can also spread from commodities," vendors selling products, in accordance with the purchase of a number of price ranges ( usually greater purchasing volume, the cheaper prices, and market wholesale prices often higher than the price), the good life is earned by suppliers and the difference between the wholesale market. "
　　
"Changing the denominator"
However, in the days when the flies were good, very good day's business model began to change in quality, which, even Gudongmei part of his staff were also not aware of, "Cangzhou Branch many people still think that we are the traditional mode."
Gudongmei said that the cause of pursuing their own enterprises to development, we must continue to seek a breakthrough, born in the city Ersanxian enterprises in particular. Cangzhou a taxi driver on the ground in Cangzhou star entrepreneurs have such a prediction, "from Beijing in recent Cangzhou, bosses are accustomed to the Beijing line, the hope that the final cause great cause." The development of good life can be vaguely confirmed this view. In 2000, the good life he shares the Beijing Supermarket Ltd., Gudongmei also served as general manager.
However, the first set foot in Beijing, on the good days more than the intention of achieving a breakthrough in the geographical, "Cangzhou lack of qualified personnel, personnel also Wangwaimian run, we need to find their own path to cultivate." Gudongmei says, and the accounting profession she origin Education has been a succession politics, the industrial enterprise management and professional Chinese Language and Literature, in the Tsinghua University MBA training.
July 2006, an easy transition to third-party logistics services and e-commerce operations services, as a "daily consumer goods supply chain service providers," using Gudongmei said, and before the chain Format compared transition, good day margins "denominator changed."
The past, the good days do is the actual chain of commercial operation, and most of the chain operators little difference, and direct investment by all operators, franchise will be adopted "six reunification" and the implementation of control. The question is, good day features of the current threshold is not high, chain Form model also relatively easy to reproduce, at the same time within the Health and growth, it is also necessary. And a large number of funds.
On the other hand, the good life is gradually formed its own core competitiveness: First of all, in Hebei formed a relatively complete system of logistics and distribution, and control of the terminal on the 1,000 shops, especially in rural markets; Secondly, the beginning of the establishment of the company will create awareness information systems and payment systems, according to Jia said, each chain with headquarters POS networking, it is clear that good days each shop inventory and sales, and cash transactions through the network; Third, the retail industry professional management experience, good life can be joined to provide procurement, inventory, and other aspects of professional recommendations, as well as personnel training.
Before and after 2006, the company began to consider how to Gudongmei the long run. "We have to provide services based on the supply chain, and help suppliers will be an easy commodity distribution network to the various terminals, at the same time, help the two parties to resolve the issue of payment; On the other hand, through the supply chain platform, we help these networks, terminals provide inventory management, procurement services, such as recommendations. "
In fact, Gudongmei idea is that no longer relate to specific business. And, chain operators transition from the supply chain service providers, the service is located in Ersanxian cities, and even those already in existence frontline city (or intends to join) convenience stores island, and the terminals of the "good life" network. Good days and the "good old days" of networks, interdependence will be embedded.
Of course, this "good life" has been an either "good old days".
And the good life through the provision of logistics services profitable, "vendors do their own logistics, not obvious scale effect, the cost of sales is 6-8%, the good old days unified delivery, and perhaps cost can be as long as 3-5%, 1-2 % of our profits. "appears in the Gudongmei for suppliers to find the sales channels to expand sales through intensive joined to provide procurement services to reduce the cost of goods, with an increase terminals can be enhanced supply chain services scale effect. Good days can be gradually achieve "operational assets light," because in the good old days of the logistics system structures, the main investment in distribution facilities, logistics teams, as well as cultivate information support systems, and even distribution center can be leased.
The Evolution of business models, and the denominator of the profits from the merchandise sales into a service income, financial data for one variable: the good old days of English published on the website in 2005 financial data and future projections for example, by the end of 2005, the store a few good days for the 400, on revenue of 16.41 million dollars, 600,000 dollars for profit, single-shop income of about 41,000 dollars, the profit margin was 3.6%, while plans to 2011, the number of store expansion to 20,000, an increase of 50 times the income is only 2005 about four times, for 67.58 million dollars, same-store revenue decreased, only 3380 dollars, and corporate profits will be good days are 27.68 million dollars, and profit margins as high as 40%.
If the good days do so formed 20,000 franchise network, then it is the commercial value will be immeasurable. Each terminal it is not only the "Thousand-hand" transfer logistics, to resolve the issue of payment and "1000" investigation information. And the modernization of agriculture is a major dilemma, information, logistics poor, farmers can not dock directly with the market. Good life can be directly linked to the urban and rural markets, "consumer goods to rural areas, agricultural city."
　　
　
　


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