Coping with the cycle of the enterprise

Businesses need to stand on the floor of value and dance with the cycle. However, the value floor of some companies will change, perhaps only one tenth, one-twentieth, or even a negative number of its original value.

In the past few years, Fosun has invested in many companies. Some of them are going downhill when we invest, and we are not optimistic about the outside world and no one wants to vote.

Fosun often said that standing on the floor of value and dancing with the cycle. However, the value floor of some companies will change, and may only be one tenth, one-twentieth, or even a negative number of its original value. But why are we still willing to vote? It’s not about luck, but about the unique things in them.

Value is managed

The Mediterranean Club and LANVIN are two typical cases of Fosun Investment.

Why is the Mediterranean Club worth saving because I think its genes are good. First of all, the business model of the Mediterranean Club is right. The all-inclusive, family model has a solid foundation in the world and is very popular in China, because the most important thing for Chinese tourism is to look at the feelings of children. Secondly, it has more than 70 resorts around the world, and the global layout is doing well.

Let’s talk about LANVIN, which is the oldest high-end fashion brand in France. In the three years after Fosun followed LANVIN, LANVIN did have a lot of problems. But one thing, there are still many consumers looking forward to when LANVIN will come back, and when LANVIN can design a good product.

This is the charm of the brand. Even if it makes a mistake and disappoints the consumer, they will still think about it, read it, wait for it. This shows that LANVIN’s brand gene is good and worth re-doing.

Of course, after investing in these companies, what to do next is actually more crucial. Because value is not cast out, but managed.

After we became the major shareholder of the Mediterranean Club, the first thing we did was to make the product closer to the customer’s needs. For example, according to the consumption characteristics of Chinese customers, we developed JoyView products closer to the city. Now, three JoyViews have been opened and have been very successful.

The second is digitization, the previous digitalization of the Club of the Mediterranean has not been done enough, and the direct sales ratio is also low. But we know that the M end of the future must be connected to the C side. So we have strengthened the digital marketing and direct sales capabilities of the Club of the Mediterranean. At the same time, we have also made its product line more clearly located in the middle and high end, especially in the ski industry.

Establish a red, yellow and green light system

With the ability to strengthen LANVIN, we changed its CEO after investing and chose a young, talented new designer. This year, the good products from LANVIN also made the fans shine and the effect is very good. In addition, we also use Fosun’s vast resources in film and television, sports and other aspects to support the development of LANVIN and accelerate the process of business reconstruction.

In addition to the above, to help these companies achieve “business reconstruction,” Fosun still has some very important tools.

For example, the “Hundred Days Plan” makes full use of the two “hundred days” before and after the project delivery – one hundred days before the investment, “when you want to know what to do”, you know what to do after you have the company; one hundred days after delivery, immediately The dockings are all docked, and the project personnel must be in place.

We also have a “red yellow light system.” The red light represents a significant risk or a large deviation. The yellow light represents a certain risk or deviation, and the green light represents no risk or less deviation. We will focus our energy on the place where the red light is on, so that we can focus more.

I have always felt that the sense of direction of strategic choice and the contingency of opportunity must be combined. No success is inevitable. Success is the so-called uncertainty between chance and necessity. What we are pursuing is precisely The probability of success in determinism is getting higher and higher.