“In the cross-cultural management, what SanPower abides by is this principle, followed by the business collaboration principle. After finishing purchasing, SanPower does not make business convergence and integration, but stresses on the collaboration of industry and industry, complementation of mode and mode, and sharing of resources and resources.” Yuan Yafei said, and in the international development process, SanPower has worked out its own feature.

 

No sooner than the crops in Su-Hu area are ripe, it is enough to solve the national eating problem. Since modern times, Jiangsu is the birthplace of national capitalism; after reform and opening-up, the private enterprises have been in even prosperous development. Behind the economic prosperity, the contribution by Jiangsu merchants cannot be ignored. While, the entrepreneurs shall have the feeling of “those who eat the fruit shall remember its tree with gratitude, and those who drink the water shall appreciate its source”. Yuan Yafei expressed, at the new starting point of Jiangsu economic development, SanPower Group will continue to act on the Jiangsu merchants’ spirit of “great virtue, adore literacy, industry and innovation”, to realize the better and faster enterprise development and assume the heavy responsibility for the Jiangsu “two-aggregation and one-high” construction.

 

In 1993, Yuan Yafei resigned the job as Nanjing Yuhuatai institution secretary, and thus became one of civil servants in tides of “venture into business”. No one can image that, “SanPower” which started at Nanjing Zhujiang Road by virtue of RMB 20,000 at that year has made the industry status of Yuan Yafei’s Najing “Computer King” after three years and lays the foundation for the SanPower Group to be the leading enterprise in the national retail industry with assets more than RMB 120 billion in the future.

     

At the end of 2000, Yuan Yafei established the first store of HISAP in Nanjing. At that time, 800m² single-store business area, “open kitchen and open cooking station”, and “nine promises” of “return goods if you are upset and return goods if the price is high” made the national computer industry speechless at that time without “three guarantees” service. By drawing on the successful experience of Wal-Mart, Dell and McDonald’s and mixing them together, Yuan Yafei formed a unique new IT operation mode in large scale, standardization, chain direct-sales – “WDM” mode, which not only brought the revolutionary impact to the traditional computer sales mode, but also was compiled into the local successful case of MBA course by many famous business colleges.

     

Since 2004, Yuan Yafei has brought the enterprise into the stable and rapid development phase. In 2005, SanPower reorganized the first listing information industry company in Jiangsu Province – Hiteker. In all of these attempts, Yuan Yafei was certain about the general trends and worked after determining the strategy. As the country energetically developed the Internet of Things and other strategic emerging industries, SanPower Group merged and acquired Guangzhou Jinpeng with modest achievement in digital city and intelligent security field. As the investment-pulling and externally driven economic development mode was about to turn to the consumption-pulling and internally driven development mode, SanPower timely hosted Nanjing CENBEST with general merchandise retails as main business.

 

First sign of extraordinary international M&A

   

In September, 2013, as the country proposed the “the Belt and Road” initiate with “co-consulting, co-construction and sharing” as principle, to answer the country’s “going out” call, SanPower started the internationalization step in 2014.

   

English old-brand department store - House of Fraser (hereinafter referred to as HOF), American new novelty chain brand – Brookstone, Israeli senior care service enterprises – Natali and A.S.Nursing, English famous toy store – Hamleys, Singaporean listing company – Cordlife Group, the first and only prostate cancer cell immunotherapy approved by U.S. FDA – Provenge … which is a part of list in the overseas “shopping trolley” of SanPower Group, subordinated enterprises and strategic partners. By a series of cross-border M&A, SanPower Group’s business scope is developed to the North America, Europe, Middle East and Southeast Asia to lay the foundation of internationalization layout.

      

There are many twists and turns behind the successful stories of M&A. During the acquisition of HOF in 2014 and when Yuan Yafei was still on his flight to U.K. to sign the contract, an English local sports tycoon suddenly purchased 11% shares from a small shareholder, and then reached out to other shareholders to present the acquistion offer, with an attempt to sabtage Yuan Yafei’s acquisition efforts. Upon arriving, Yuan Yafei heard this bad news, and he decided to change his original schedule of hotel check-in and instead immediately started visiting other shareholders one by one. After 36-hour meeting and negotiation without any sleep, Yuan Yafei persuaded other shareholders by virtue of honesty, strength and strategy, and finally purchased HOF’s 89% shares and became the controlling shareholder.

   

Sanpower actively participates in the Belt and Road Initiative by not only introducing overseas quality brand, advanced technology and service into domestic market, but also facilitating domestic supply-side structural reform. As a result, Sanpower helped to expand the “intelligent manufacturing in China” and “Chinese brands” to the whole world.

      

Yuan Yafei’s M&A reasoning “future defines future” has successfully withstood the test of market based on the current project progress. Since 2016, Brookstone has been opened in more than ten domestic cities, such as Nanjing, Shanghai, Beijing, and Chengdu. Because of its novelty products and interactive shopping experience, Brookstone became an instant hit immediately after its openning in each city. On October 1^st, 2016, the first Hamleys flagship store in China was opened at Nanjing Xinjiekou CBD area with scenario-based shopping experience, which attracted 50,000~60,000 customers in seven days of National Day with an average daily revenue more than 3 million yuan. In December 2016, the first House of Fraser flagship store in China was opened. Its creative buyer system and house brands brought fresh air to Chinese consumption market.

      

 

The problems in overseas M&A lie not only in how to introduce those projects to China, but also in the management of overseas subsidiaries. To solve the problem, Yuan Yafei has his own “trump card” which is the combination of traditional Chinese Confucianism and western modern management thinking. In cross-cultural management, Sanpower follows the principle of mutual respect among all cultures. Secondly, Sanpower follows the philosophy of synergy, that is after M&A, it seldom attempts to entirely converge other business into Sanpower’s own, but rather focuses on the synergy between different industries and business models. Yuan Yafei once said that it is because of such management philosophy that Sanpower is able to blaze its own trail in global development.

 

A Responsible Corporation

   

Yuan Yafei once said, the achievements of Sanpower Group so far relies firstly on “fortune” and secondly on its corporate culture. Good fortune comes from the momentum of China’s reform and opening up policy. Sanpower’s all-inclusive corporate culture is originated in the traditional Chinese culture as well as the unique ethos shown by Jiangsu businessmen. In addition, the success of an enterprize is inseperable from its grand visions and commitments to social responsibility. That’s why Sanpower has been adhering to the concept of benefiting the whole society is top priority, devoting itself to be a social corporate citizen and the aspiration that “the great rejuvenation of the Chinese nation calls for great national enterprises”.

 

Hometown is where our life starts and remains to be an enduring destination in our heart. In his teenage, Yuan Yafei relocated in Nanjing with his retired father from Xuzhou, his hometown. Whether in Xuzhou or Nanjing, the prosperous Jiangsu Province is Yuan Yafei’s root. And the best way of venting his sickness is to offer the best for his native land. For Yuan Yafei who started from scratch, home is always where the heart is even when Sanpower’s revenue reaches over 100 billion yuan with over 100,000 employees to this day. 

      

Being a virtuous entrepreneur means honoring social commitments. With so much love for his hometown Xuzhou, Yuan Yafei has been actively engaged in education, public welfare, and various social undertakings. In addtion, he has also made outstanding contribution to disaster relief, supporting the underprivileged and promoting social inclusion. In 2011, Sanpower funded the building of the Hope Primary School in Fengxian County, Xuzhou. In 2013, Sanpower founded Volunteer Association to help the vulnerable and the poor. In 2014, Sanpower assisted disaster-hit area by typhoon. In 2015, Sanpower jointly set up the United for Wildlife foundation together with Prince William to inaugurate a string of activities to protect wild animals. 

     

An organization without spirit and strength falls. A course without cultural support cannot sustain itself. During the development of Sanpower, Yuan Yafei always lays emphasis on corporate culture. Therefore the core values of Sanpower is Positive, Self-reflection, Balance, Integrity, Common Sense and Foresight. Yuan Yafei believes that the growth of Sanpower, for many reasons, is due to its corporate culture, which acts like adhesive and lubricant.     

 

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