Age of Black Iron, last stand!Vanke Yu Liang’s keynote speech in 2022
In the past year, the real estate industry “explosive thunder”.How to take the initiative to cope with changes and get survival and development?It is a problem that every real estate person and literary traveler must pay attention to and think about.Today, I got the full text of vanke Chairman’s speech at the 2022 Meeting of Vanke group on January 9. I benefited a lot from it. The main points are summarized as follows, which is strongly recommended to be collected before reading.The full article has been published on Knowledge Planet, please join us at the end of this article.NO.1 Basic understanding of the era positioning: the industry into the black iron era, must burn their Bridges, desperate battle!The first feature of the external environment: the industry has entered the stage of shrinking balance sheet liquidation.For the real estate industry, shrinking balance sheet clearing is de-financialization.Shrink table clear to real estate enterprises, it is a battle of life and death.The rapid development of real estate for decades has brought extremely high leverage to society and residents, severely squeezing the development of real economy and consumption upgrading.Even due to the high housing price, there is a “low fertility trap”, resulting in only 10.62 million births in China in 2021, compared with 12 million in 2020 and 14.65 million in 2019.Therefore, for policy and society, “deleveraging” is an inevitable requirement and must be done.The second characteristic of the external environment: the new development mode of the industry, summed up in one central point, three basic points.One center: solving the housing problem of ordinary people.Three basic points: housing is not speculation, both rent and purchase, and human-land-housing matching.Jie Vision comments: let the house return to the nature of living, is a strong signal of the policy level.”Houses are for living in”, will continue to hold for a long time, thus, the total amount of new housing demand will be smaller.In particular, the continuous implementation of the “same right to rent and purchase” policy means that newly needed buyers can choose between “rent” and “purchase”, which will divert the demand for buying houses.”Human-land-housing matching” will lead to the continuous differentiation of cities. Cities with continuous population outflow from the third, fourth and fifth tiers will not have sustainable development value.Cities with a continuous influx of population in the first and second tier will see increased housing supply in the future.The real estate market will face two major changes in the future: one is that the market will become more and more differentiated, and the other is that the industry starts to shrink.In response to the change, investment should be shifted from the past uniform and diversified investments to local intensive investments where markets perform better and teams have proven their ability to operate.If some places are really bad, it may be necessary to cancel the whole system and withdraw the designation.The projects we face are increasingly complex, and the more complex the situation becomes, the more discipline must be adhered to.Jie vision comments: from the three, four and five lines of contraction, focusing on the first and second tier cities, will become the mainstream choice of housing enterprises.At present, the most important eight words are: austerity, wartime atmosphere!The first is a game of chess.Similar to investment and development, product teams have to build a chess game, in the face of fierce competition, we do not have so many resources and energy to disperse efforts.Secondly, the traditional business is shrinking, the “long” can “long”, and must “long”, but the “elimination” also “elimination”.Third, the compensation system can not be anchored in the golden age, this year’s income will be significantly reduced.Welfare, subsidies, etc. should be adapted to the age of black Iron.Fourth, in the face of 10% or so marginal profit industry, process reengineering.Now a lot of charge mode with cost plus way will be overturned, the past lavish, do setter, fake hand in person, layer on layer subcontracting way must be not feasible.It is impossible to dream of inviting superman to work. It is important to have a good attitude and a responsible spirit.The industry developed to the age of black iron, unable to give financial incentives beyond others.The mechanism that Vanke can provide is the stage of career and the opportunity of development, rather than simply giving money.Jieshuijie comments: Using a hot word “inner roll” recently, Vanke clearly pointed out that all work around the war, frugal, strict discipline, cost control, improve professional ability, emphasis on results oriented.It also pointed out that the era of “high salaries” beyond most industries is over.Today, the theme of Vanke annual meeting is “Dare to fight will win”, Yu Liang finally summed up four sentences.First, dare to fight?You have to fight to have a chance of survival.Second, can you fight?You learn by fighting, you never learn by not fighting.Third, very important is willing to partner to fight.Some attacked, others covered, and even died covering to stop the advancing enemy.The fourth and most important question is whether you can play particularly well.You should hold yourself to the standard of “exceptionally good”.Especially good three requirements: one is to be a professional master, to compare with the benchmark in the industry, if it has become the benchmark of the industry should be compared with more outstanding goals.The second is to be the all-around champion.Development, operation and service should be paid equal attention to, which is vanke’s new triathlon.The third is to be a long-distance winner.Long-term persistence, long-term adherence to do the right thing, do not violate the discipline, can let us play particularly well.Comments on jie Vision: worthy of being “Vanke Athletes Co., LTD.”, it is managed by sports events.The long-term competition of enterprises relies on the strategy of keeping pace with The Times, fine management and sunny culture. As the leading company, Vanke has set a very good example for us.