Tagged: pressure

Bottleneck and struggle of chengguang

However, the company’s traditional retail business is also facing increasing competitive pressure.
The proportion of traditional core business of Chenguang is decreasing year by year. According to the 2019 annual report, “with the change of domestic population structure and the decline of birth rate, the contribution of traditional core business to income by increasing sales volume is weakening.”
Correspondingly, the new business for tob office market, Chenguang klip, is experiencing rapid growth. From 2016 to 2018, its revenue has doubled for three consecutive years, with an increase of 41.45% in 2019, which may become a highly anticipated new focus in the future development of Chenguang stationery.
As an office direct selling business platform, Chenguang krip mainly provides one-stop office procurement services for government, enterprises and institutions, Fortune 500 enterprises and other small and medium-sized enterprises.

cheng guang
Why direct marketing? American office stationery market gives the answer: direct selling is a good track.
According to ibis statistics, in 2016, the size of the U.S. office stationery market was about 43 billion yuan, of which the direct sales channel accounted for about 50%. The two leading companies, staples and Odie, occupy more than 80% of the market share. Both of them have been impacted by e-commerce, resulting in the shrinkage of offline retail business, but the b-end business is still strong. The reason is that the direct sales business is relatively stable and is not vulnerable to external shocks.
Office direct selling refers to the direct sales of office supplies enterprises by means of directional marketing, Direct stores, e-commerce, etc. the products cover office supplies, office consumables, office equipment and other fields. In China, the customers of direct selling business are mainly government agencies, large central enterprises, top 500 enterprises and enterprises with a certain scale.
In fact, the market capacity of office direct selling business is much higher than that of traditional retail market.
The data shows that the market scale of student stationery in China is about 50 billion yuan, and the retail market capacity of office stationery is about 90 billion yuan.
However, the direct sales market capacity of large office supplies is trillions (including IT equipment and other products), and the industry growth rate is faster than the traditional retail market.
According to the data of China industry information network, the market scale of domestic large office stationery (including office furniture, equipment, etc.) will be 2.07 trillion in 2019, and the compound average growth rate is expected to be about 9% in the next three to five years.
In 2019, the sales revenue of Chenguang office direct sales business reached 3.658 billion yuan, accounting for 32% of the total, surpassing the company’s traditional retail office stationery (21.07%) and writing tools (19.63%), becoming the company’s largest source of business income.
In addition, Chenguang has also opened the layout of offline retail stores, mainly including Chenguang life center and Jiumu sundry club. In 2019, the revenue of these offline retail stores is 600 million, with a year-on-year growth of 96%. Among them, the revenue of Jiumu sundry club is 460 million, with a year-on-year growth of 200%.
It can be seen that the growth of the morning light business is very fast, but at present most stores are in a state of loss, and the loss is gradually narrowing.
From the perspective of Chenguang’s gross profit margin, it has been maintained at about 26% in the past five years, while the net interest rate has declined slightly, from 10.86% in 2015 to 9.66% in 2019. The main reason is that the net interest rate of krip is very low, only about 3%, and the retail stores and Chenguang technology are in a state of loss or break even, which lowers the overall net interest rate.
It can be seen that Chenguang is trying its best to catch up with the top in terms of both the office direct sales business of Tob and the layout of new retail formats. However, it is still uncertain whether the healthy growth can be sustained in the future.

Macroeconomics and Real estate focus

Macroeconomics

1. Ouyang Ziyuan, academician of the Chinese Academy of Sciences: my country is preparing for a manned moon landing. The mission of Chang’e 5 is the final piece of our country’s unmanned moon exploration. We have already completed the lunar orbiting exploration and the landing moon exploration. After completing these tasks, we will build a lunar base and prepare for a manned moon landing. We have to explore several other planets in the solar system and advance toward the sea of ​​stars in the solar system.

2. Zhang Yong, CEO of Alibaba: China’s digital economy is already at the forefront of the world. The relevant state departments are seeking opinions on the policies and regulations in the field of platform economy, which we believe is very timely and necessary. In the process of great development, many new problems and challenges will definitely arise, and policies and regulations that keep pace with the times are needed to manage. We will actively learn and respond to national policies and regulations, and build a healthier platform economy with our own higher requirements.

3. Securities Daily: As of now, the total amount of secondary capital bonds issued by banks during the year has approached the 600 billion mark, exceeding the issuance level of last year. In addition to the “rolling” issue of multiple Tier 2 capital bonds this year by many banks, many small and medium-sized banks have adopted a combined issuance of Tier 2 capital bonds and perpetual bonds during the year, using various tools to continuously supplement capital.

4. Chinanews.com: “China Internet Development Report 2020” is released. In 2019, the scale of China’s digital economy reached 35.8 trillion yuan, accounting for 36.2% of GDP, and the total scale and growth rate of China’s digital economy ranked among the top in the world.

5. The Central Bank: On Monday, the Central Bank launched a 7-day reverse repo operation of 40 billion yuan in the open market, and the winning interest rate was 2.20%. No reverse repurchase expires on the same day.

6. Overnight Shibor reported 1.8390%, down 12.00 basis points. The 7-day shibor reported 2.1930%, down 3.50 basis points. The 3-month shibor reported 3.0470%, an increase of 2.60 basis points.

Real estate focus

1. Economic Information News: By the end of the year, real estate companies are facing the dual pressure of reducing debt and offsetting performance. In the fourth quarter, under the guidance of policies, the impact of real estate companies’ leverage reduction has continued to deepen, and the financing side has continued to be restricted. Industry analysts believe that under the expectation of tightening industry financing and the pressure on annual sales targets, real estate companies may increase launches and sales collections in the future, and supply is expected to continue to increase at the end of the year.

2. Jiangxi Provincial Department of Housing and Urban-Rural Development: Printing and distributing the “Notice on Further Strengthening the Supervision of Pre-sale Funds for Commercial Housing.” It is proposed that the pre-sale funds of commercial housing should be included in the supervision, and all house purchasers must deposit in a special account. Pre-sale funds for commercial housing include all housing prices (including deposit, down payment, installment payment, one-time payment, bank mortgage loan, housing provident fund loan, and full renovation of commercial housing, etc.) paid by the buyer in accordance with the contract.

3. The 21st century: On November 23, Shenzhen had a total of 8 land transfers with a total construction area of ​​2.24 million square meters, attracting 28 real estate companies to sign up, and the final land price was about 34 billion. Among the 8 parcels, the construction type of the Baoan Shajing parcel is for saleable talent housing, and the rest are ordinary commercial houses.

4. Financial Street: A wholly-owned subsidiary won the bid for the use rights of state-owned construction land on plots 08-04 and 15-02 of BSPO-2302 unit, Baoshan District, Shanghai, at a total price of 1.83 billion yuan. The land use is residential land.

5. Deloitte: Affected by the new crown epidemic, the construction of office buildings in central London from April to September this year dropped by 50% compared with the previous six months. The survey shows that the area of ​​office buildings under construction has fallen to 2.6 million square feet (about 240,000 square meters), which has returned to the historical average from the high level before the outbreak.