Path to Success: 1+N Model (Jinsheng Volume)

Author: Li Jiangtao / Country: Mainland China
Publisher:
Publish Date: 2006-05-01
Features: Jinsheng Decoration City was built, but the income was unsatisfactory. Excessive expenses on advertising fees, tenant recruitment fees, as well as construction and operational costs put Jinsheng in a severe test. In the face of these difficulties, Wang Hua did not retreat or doubt himself. He firmly believed that his strategic decisions were correct. Choosing the industry of building materials and decoration was a promising path. Wang Hua avoided getting entangled in strategic debates and instead actively researched and implemented tactical solutions. He visited all the small and large markets and various stores in Nanjing. Through multiple market surveys, he concluded that Jinsheng Decoration City must develop its own unique business features to attract consumers and quickly break into the market.
1. Lighting Tenant Recruitment, Specialized Operations, Illuminating Homes
By chance, Wang Hua learned that lighting in Zhejiang was very distinctive, while Nanjing lacked aesthetically pleasing and diverse lighting options, creating a market gap. Jinsheng Decoration City seized this opportunity and chose lighting as its operational breakthrough. Wang Hua personally led a team to Wenzhou and Changzhou for tenant recruitment. Only three people came, but as soon as the lighting was displayed on the shelves, it immediately attracted the attention of Nanjing consumers. At that time, Nanjing residents had never seen such beautiful lighting before, so it quickly captivated consumers, and the market response was extremely rapid. In just one day, sales reached over 10,000 yuan. Jinsheng had found the right direction and continued to expand its lighting operations. Through large-scale tenant recruitment, in July 1996, the 6,000-square-meter Hall 6 of the Decoration City was transformed into a lighting hall named "Myriad Homes Illuminated," specializing in mid-range engineering lighting with complete. While forming its business, Jinsheng also promoted itself through high-density advertising, such as newspaper ads and roadside billboards, and distributed thousands of flyers in crowded areas like Xinjiekou and Gulou. Jinsheng Decoration City quickly gained fame. Consumers visiting Jinsheng Decoration City were immediately drawn to the large selection of innovative and diverse lighting, which also boosted sales of other building materials. Jinsheng finally overcame its operational difficulties, transforming from a quiet and deserted place to a bustling sales hub. The parking lot went from empty to "overcrowded." Hall 6's lighting specialty store soon became Nanjing's largest lighting distribution center—boasting a wide variety of styles and innovative designs. The booming market attracted the attention of other operators, and Jinsheng's stalls were quickly rented out, with some distributors patiently queuing to secure space. It was July 1996, only eight months after Jinsheng Decoration City's opening, but its operations had already stabilized, having weathered the most critical phase. The success of Hall 6 encouraged Jinsheng to further expand its lighting operations. After two months of tenant recruitment, it introduced high-end civilian lighting such as Vanessa Lighting, transforming Hall 5 into a specialty store for high-end civilian lighting to differentiate it from Hall 6's focus on engineering and courtyard lighting. Jinsheng Decoration City's lighting made Jinsheng renowned. Through word-of-mouth, consumers from surrounding cities in Nanjing came to Jinsheng to buy lighting and building materials. Even consumers from distant provinces like Anhui, Jiangxi, and Shandong traveled to Jinsheng to shop. Jinsheng Decoration City's lighting specialty lasted for several years, and many years later, when people mentioned Jinsheng Decoration City in Jiangdongmen, they would think of Jinsheng's lighting as the best. Some later described Jinsheng's strategic move to focus on lighting not only saved Jinsheng but also illuminated Jiangdongmen. This is the "Golden Finger" that illuminated homes. As the cradle of Jinsheng Group, Jinsheng Decoration City played a pivotal role in the formation of the Jinsheng Empire. P19-20