Research On Wanda Business Light-Asset Operation Mode

In recent years,major domestic cities have successively introduced "restricted purchasing" policies.The government's macro-control efforts have increased and more residential real estate developers have switched to commercial real estate.Since 2011,China's commercial real estate market has seen an explosive growth.From 2011 to 2016,the average growth rate of real estate commercial real estate sales area reached 49.31%,and the average growth rate of sales was 15.11%,both higher than the growth rate of residential real estate.The rapid development has also led to increasingly fierce competition in the commercial real estate industry.Compared to residential real estate,commercial real estate has a corresponding increase in the risk borne.At the same time,the inventories of commercial real estate have increased rapidly.This has led to a large amount of commercial real estate company funds being used,resulting in the bottleneck of traditional heavy asset model.In order to maintain a sustained and rapid expansion in a fierce competitive environment and maintain a certain level of profitability,commercial real estate companies should strive to seek innovation in their operating models.Foreign countries have practiced real estate asset-light operating models.The experience of commercial real estate companies shows that commercial real estate companies can achieve light capitalization through the transformation and upgrading of their businesses to usher in new developments.So at present,commercial real estate companies in China are continuously testing assets for light-assets model,strive to improve the operating status.This article is based on a thorough study of relevant academic literature on light asset model operations,summarizing the smile curve,division of labor theory,and the theory of synergy,taking Wanda commercial enterprise,the leader of commercial real estate in China,as the research object and focusing on the ongoing light asset operating model of Wanda Commercial.Use its business data and financial data to analyze the effectiveness of the company's light asset strategy implementation and make corresponding evaluations.The main conclusions of this paper are as follows:1.As the representative enterprise of China's commercial real estate,Wanda Commercial announced at the annual meeting at the end of 2014 that the company was gradually moving toward a strategy of light asset.This article analyzes Wanda Commercial Real Estate's comparison of business activities,investment activities and fundraising activities before and after 2014,and finds that Wanda Commercial Real Estate is very rapid in its move towards lighter assets,and Wanda Commercial continuously expands the leasing and management of corporate properties.The scope of business,on the other hand,accelerated the disposal of heavy asset projects and the construction of light asset projects.Although from the above financial data point of view.Wanda Commercial's operating capacity in 2015 and 2016 has not been very well improved,but its profitability and debt repayment ability have indeed been improved.At the same time,it has also been discovered that the economic value-added of enterprises in 2016 and 2016 increased significantly compared with 2014,which initially indicated that the performance of Wanda's commercial implementation of light assets has initially improved.2.With the continuous changes in the economic environment,the real estate market has undergone continuous changes.Market demand has shifted under the guidance of policy,land costs have been rising and scarce,financing costs have increased,and the rate of return due to heavy asset appreciation has decreased.With less and less profits,in the long run,the traditional completely heavy-asset model has been unable to continue to benefit the real estate industry,and enterprises urgently need to change their development models.The light asset operating model stems from the value chain and smile curve theory.Through the comparison of the heavy asset model and the light asset model,we can find that the implementation of the asset "light" strategy in the company can effectively share the capital pressure through cooperation,division of labor,etc.With operational risks,large-scale real estate companies can turn to their high-value-added design,service,and management through their original strengths,and rely more on services and branding for revenue.Small-scale real estate companies cooperate with large-scale enterprises through specialized operations.Engaged in the construction of real estate,etc.,to take what they need and make the best use of it.This model is more suitable for the current economic development trend.Based on the above conclusions,the paper concludes that commercial real estate companies are instructive in implementing light asset strategy changes.Commercial real estate companies that implement light asset strategies need to have a certain capital operation capability,form a unique core competitiveness and energy,and define their own Positioning in the industry chain and reasonable quality control can only achieve the transformation of light assets.At the same time,it is necessary to prevent the brand from becoming sluggish in the implementation process,and to strengthen the management and control of capital operation risks,so that the light asset model can be implemented under the heavy asset model.Commercial real estate companies and even other heavy asset real estate companies play a role,thereby promoting the commercial real estate industry and even the entire real estate industry to develop healthier.