June 25 - the 6th standing committee meeting of All-China Federation of Industry and Commerce (ACFIC) was held in Changchun city. The main task of the meeting is to sum up the experience in private enterprises' "going global" and participation in "One Belt, One Road" initiative, in order to promote the redevelopment and transformation of private enterprises under the new economic normal. As a successful representative of "going global", Yuan Yafei, who is the Standing Committee Member of ACFIC as well as Chairman of Sanpower Group, introduced the Group's years of experience in overseas M&A activities, and shared quite a few ideas on how to use the "going global" strategy to promote the redevelopment and transformation of the retail industry.

"Going global" promotes the redevelopment and transformation of domestic retailing

In recent years, domestic e-commerce has taken its toll on off-line retail. However, through acquiring the advanced foreign enterprises and introducing their cutting-edge products, technologies, business models and management systems, Sanpower Group has successfully explored a thoroughfare on which to boost the redevelopment and transformation of domestic industries via "going global".

In 2014, Sanpower officially initiated its "going global" development strategy, and has acquired quite a few overseas well-known enterprises, such as the first stock of China's e-commerce listed in NASDAQ--"Mecox Lane", the UK's third largest department store chain House of Fraser, the USA's biggest novelty products chain Brookstone, and Israel's largest senior-care service company Natali. With its businesses expanded to North America, Europe and Middle East, Sanpower Group has hereby laid a solid foundation for internationalisation.

The "going global" of retail industry advances the "going global" of China's manufacturing

Being insatiable with the introduction of foreign brands to China, Sanpower Group is also going out of its way to launch more Chinese brands into the international market through acquisitions. In so doing, "going global" not only benefits the transformation of retail businesses, but also spurs China's manufacturing industry on to venture beyond the border.

Over the past 100 years, the expansion of European and American retail giants such as Wal-Mart and IKEA in the world has pushed forward the globalisation of European and American manufacturing products, as well as the globalisation of their lifestyles and values. Presently, the economy and enterprises of China are also facing similar development opportunities, and the expansion of retail businesses and retail channels worldwide will also hopefully tap Chinese manufacturing and Chinese products into the world market.

Inspirations

In his speech, Chairman Yuan Yafei summarised his inspirations concerning "going global":

First, "one must be strong to forge iron." Sanpower boasts strong teams in investment and acquisition as well as strategic management, able to carry out M&A activities with investment banks.

Second, one must learn to be "tough" and "quick". Shortly before Nanjing Cenbest's acquisition of House of Fraser, Mike Ashley, a retail tycoon in the UK made a pre-emptive attempt. Having heard this, Chairman Yuan promptly visited the shareholders of House of Fraser one by one, sleepless for over 30 hours, and finally secured the control of House of Fraser.      

Third, one need to learn to make use of local business rules. When investing abroad, it is necessary that private enterprises comply with local laws, and meanwhile rise to the occasion by capitalising on the business rules.

Finally, one should pay attention to the synergies between enterprises at home and abroad. To quickly complement the advantages of different enterprises, the best way is to synergise, including the synergy between data, the synergy between industry chains, as well as the synergy between methodologies.