When The "Big Guys" Started Building

Lately,

Lining is not the first clothing enterprise to enter the real estate industry. YOUNGOR, which started with clothing and praised both at home and abroad, has become a well-known real estate company in Jiangsu and Zhejiang provinces a few years ago.

The apparel industry is not the first industry to emerge from cross-border operation of real estate enterprises.

CCTV recently reported that many home appliance enterprises have been involved in the real estate industry, and Haier, Hisense, GREE, Konka and other industries are among the "big guys" enterprises.

Why do the "big guys" who have been successful in clothing and home appliances industry enter the real estate industry?

The nature of capital is profit seeking.

In my opinion, in fairness, "

First, many non real estate companies enter the real estate market competition and will not lower housing prices, but will help increase house prices.

Because the land resources of building houses are limited, the "big guys" who are "not bad money" are pouring large amounts of capital into the real estate market, which will only further push up land prices, and may produce new "land kings".

Just imagine that land prices will not drop and house prices may drop?

Second, if the enterprise is rich, it should focus on its main business and engage in R & D and innovation. However, it has been chasing short-term profits and keen capital speculation. It may neglect the main business for a long time.

For example, overseas multinational appliance companies generally invest more than 5% of their income in R & D, but few Chinese household electrical appliance enterprises can achieve this standard.

Over time, Chinese household electrical appliance enterprises will only be less profitable and less competitive in the international market, and the industrial upgrading made in China will not be mentioned.

For our "big guys", when they complain about their industry, why do they not learn those well-known multinational companies, even in the fierce competition, they can hold their main business.

GE's capital strength should be more powerful than our "big guys", but in its 100 years of development, it mainly revolves around traditional manufacturing and energy industries, although in recent years, it has only a small part of its total assets in capital market.

In contrast, a domestic clothing brand listed on A shares, most of its profits come from real estate, and its clothing industry has made little profit in recent years.

The "big guys" have entered the real estate industry, and they also give the government a wake-up call again. The real estate regulation in China is still a long way to go.

The hot real estate industry is determined by the market, but hot is not equal to health.

The unhealthy real estate industry is hard to be healthy only on the strength of the market.

If we can not control the huge profits of the real estate industry from the source, if we do not give more tilt to the investment in industrial entities and hi-tech innovation from the fiscal policy, there will be more "big guys" in the real estate industry.