Suning Chairman Zhang Jindong 15 Years of Wealth Legend

In 15 years, Suning has grown from 10 employees to 70,000 employees, from a store of 200 square meters to 300 stores nationwide, and from an annual sales volume of 4 million yuan to nearly 40 billion yuan.

On May 1, 2005, SUNING opened 22 chain stores in Beijing, Shanghai, Guangzhou, Shenzhen, and other cities at the same time, breaking GOME's "magic record" of opening 11 new stores in a day. Taking into account the nearly 40 new stores opened in April, Suning opened a total of nearly 60 new stores from April 1 to May 1, setting the largest number of stores opened in a single month by a home appliance chain enterprise.

"After 15 years of steady development, Suning national chain development entered the stage of mass production in 2005. "Instead of setting a specific number of stores, we're just going to see how fast we can go." Now this home appliance industry "all rivers and lakes big guy", seems to be more interested in the future of Suning.

According to the "New Fortune 500 Rich List" analysis, the retail rich are the fastest growing group in China in the latest year, the per capita wealth of the retail rich increased by 308%, among which Zhang Jindong is a case in point: thanks to the listing of Suning Electric Appliance in 2004, Zhang's wealth jumped by 517%.

Zhang Jindong has been preparing for Suning's listing for five years. On July 21, 2004, Suning Appliance was officially listed on the Small and Medium Enterprises Board of Shenzhen Stock Exchange. It gained 100.24 percent that day, making it the most expensive stock in Shanghai and Shenzhen. As a result, Zhang's wealth exceeded 1.2 billion yuan overnight. Since then, Suning has always been the most expensive stock in the Chinese stock market, and its share price has repeatedly set new highs, once exceeding 70 yuan, and now it is still at a high of 26 yuan (after removing the rights). Zhang Jindong's wealth has also soared, from 1.2 billion yuan at the beginning of the listing to 2.8 billion yuan today. Together with Zhang's other assets, he is worth more than 3.1 billion yuan.

Suning has successfully raised nearly 400 million yuan of development funds. "Now Suning Appliance is not my business, but social. We have obtained the financing platform to compete with foreign business giants, which will provide a strong impetus for Suning to leap forward again," Zhang said.

The stock price of Best Buy, the largest home appliance chain in the United States, increased 100 times between 1989 and 1999. Walmart, a global retail giant, saw its stock price rise 500 times during the 1980s and 1990s. At present, there are fewer than 1,000 appliance chains in the United States, and the top three chains, led by Best Buy, control up to 80 percent of the market share. In contrast, there are more than 32,000 domestic home appliance circulation enterprises, and the market share of home appliance chain enterprises is only 6%. The capital market and retail market leave a double imagination space for Zhang Jindong.

On May 12, 2005, ZHANG JINDONG LED SENIOR EXECUTIVES OF SUNING TO THE United States for business investigation, visiting best buy group, the largest home appliance chain in the United States, A.O. Smith's overall kitchen and bathroom,and motorola's research and development base. "Compared with international giants, we are still small and there is a big gap. The biggest difference is not the long course of development of the international giants, but their concept ahead of time. Standing in the international market, we can see the huge gap in our ideas. Now we are moving fast enough, but if we add the wings of advanced international ideas, we will develop even faster."

When asked what you think of Best Buy, the global home appliance giant, which is about to enter China? Zhang said, like a person who usually needs to look up to each other, one day suddenly found that they can communicate and communicate on an equal footing, this mood is not only because of the improvement in their strength, but more importantly, from this moment on, I have enough confidence. "Perception is the biggest obstacle to Chinese people making a lot of money," Mr. Zhang said with emotion. Have a kind of motivation to create wealth, earn wealth, and quickly put it into action, don't be afraid of failure, fall back up. If you are afraid to lose, it will be difficult to succeed.

After spending a few days at the U.S. Best Buy Group, Mr. Zhang said Best Buy is also a chain specializing in the distribution of electrical appliances. The stage is in now is stage Suning will soon go through. Although we can't be the same with them, their management technology has important reference value for the growth of Suning. "Best Buy's today is Suning's tomorrow. They are like a mirror to see the future, and I see the future of Suning." Zhang Jindong was convinced of this. The love affair with Best Buy hints at Suning's next step.