Case Study Of Vanke’s Transformation Into Asset-light Operation Mode

The real estate industry is a pillar industry in the national economy,which has a far-reaching impact on China’s economic development,so it is extremely necessary to maintain the healthy development of the real estate industry.In the golden age of the development of the real estate industry,the real estate enterprises mainly adopted the asset-heavy operation mode,which helped many enterprises to complete the capital accumulation in the early stage and earn rich profits.However,with the continuous development and change of the economic environment,the real estate industry has gradually moved away from the "golden age" driven by land dividend and financial dividend,the national policies have been tightened,the financing pressure of real estate enterprises has gradually increased,the speed of land appreciation has also begun to decline,and the prospect of the real estate industry is becoming more difficult.In addition,under the operation mode of heavy assets,real estate enterprises have many disadvantages,such as excessive capital occupation and low inventory turnover speed,which is not conducive to the sustainable development of real estate enterprises.Therefore,in order to get rid of the predicament,real estate enterprises begin to transform the asset-light operation mode,reduce the capital occupation of enterprises,and concentrate their resources in the link of higher value creation to achieve profits.There are few cases of asset-light operation mode in real estate enterprises,and Vanke started the road of transformation as early as 2014.It is the earliest enterprise in China’s real estate industry to transform asset-light operation mode.Therefore,this paper takes Vanke as the research object,which has great theoretical significance and practical value.The paper mainly adopts the case study method,to understand the whole process of Vanke’s transformation,and to clarify the impact of the asset-light operation mode on the real estate enterprises.First of all,introduce the relevant concepts and three theoretical bases of the paper,analyze the theoretical effects of the transformation of asset-light operation mode of real estate enterprises,so that the theory and practice correspond.Secondly,the case is introduced,briefly describing the basic situation of Vanke and the operation mode of heavy asset before the transformation.Combined with the financial data of Vanke in the first five years of the transformation,the transformation motivation is attributed to four parts: slowing down inventory backlog,reducing financing pressure,enhancing profitability and stabilizing cash flow.At the same time,Vanke’s transformation also has some favorable conditions,such as mature management system and leading brand value,which lay a solid foundation for enterprise transformation.The main paths of Vanke’s transformation of asset-light operation mode include four parts: "small stock operation",business partnership system,real estate finance and "Internet +",among which "small stock operation" is the key path of transformation.Thirdly,a comparative analysis of the effect of Vanke after the transformation from two aspects of non-financial effects and financial changes shows that after the transformation,the quality of its products and services has been improved,the brand value has increased,the market share has expanded,the asset structure is more reasonable and the income model is more diversified.Finally,the research conclusion of the paper is that Vanke’s transformation of asset-light operation mode has improved the performance level of enterprises,and "small stock operation" is the key to Vanke’s successful transformation of asset-light operation mode.Of course,the transformation of asset-light operation mode of real estate enterprises should also be gradual and rational.The successful cases of Vanke’s transformation into asset-light operation mode can be learned by other real estate enterprises,and provide experience and inspiration for other real estate enterprises that have transformed into asset-light operation mode or try to transform.