Q: Could you briefly introduce yourself, with particular regard to Shanghai?
A: I graduated from the International Politics Department of Beijing University in 1991 and joined Vanke the following year. So I have been working for Vanke for ten years. In that decade, I worked in the head office in Shenzhen between 1992 and 1995, 1996 in Dalian and 1997 in Shenyang. I have been in Shanghai since 1998.
I have been worked and lived in Shanghai since 1998, nearly 5 years. I was familiar with the city even when I was young, as I have relatives living here and I came to Shanghai for school holidays. I have a special relationship with Shanghai.

Q: When did Vanke decide to tap the Shanghainese market? What projects has Shanghai Vanke successfully developed since then?
A: In the early 1990′s, the Group won the bid for a piece of land for villa development in Xijiao Garden, taking its first step into the Shanghainese market. This was the first Vanke project in Shanghai and is still regarded as the large-scale villa community closest to the city centre. Shanghai Vanke was established in 1992 to launch two large-scale projects including Gubei-based Vanke Plaza and Minhang-based Vanke City Garden. Last year, we held the event “Vanke Shanghai Brilliant Decade” to celebrate our first ten years in Shanghai.
We have launched many projects mainly focused on residential property. Besides the office building in Gubei, others were large-scale residential properties. The difference between Vanke and other property companies is that we do large-scale projects. The two projects we are developing at the moment are the Minhang-based third phase of the City Garden with the total construction area of 800,000 square metres, and the Xinzhuang-based Holiday Town with the total construction area of 600,000 square metres. Vanke Wonderland, located in Baoshan, will be our largest single project, covering one square kilometre with a total construction area of over 1,000,000 square metres. This is typical of the scale of our projects here., which is known as New Generation of Town-building Plan of Shanghai Vanke.

Q: Last year, the ratio of Shanghai Vanke’s net profit and revenue was the second highest in the Group, only less than that of its Shenzhen head office. What are the main reasons for Shanghai Vanke’s success besides its unique geographical advantage?
A: Concerning Group share, Shanghai Vanke did fall behind Shenzhen. However, I believe Shanghai will definitely supersede Shenzhen to become the core area with the highest investment and returns in the Group. Shanghai’s superior location is undoubtedly the major reason. Our success is also due, firstly, to our ten-year history in Shanghai, our rich experience and good relationship with the government. Secondly, we have completely integrated with the local society and culture since most of our employees are Shanghainese. Thirdly, Shanghai has a booming economy and our partners here are excellent. We maintain the competitive advantage by communicating with them all the time.

Q: How do you view the investment and operating environment in Shanghai?
A: I should say the investment and operating environment in Shanghai is the best, as the city has led China’s openness. Policies stay consistent and there is a high-quality civil service team . Shanghai is a very safe and clean city with proper order and is quickly developing into a world-class city.

Q: Because of the excellent environment, Shanghai has become a hot place for estate tycoons from Hong Kong. How do you compete with those 20% VIP companies for the 80% market?
A: The bigger the market, the fiercer the competition, especially in the property field. I believe Vanke is able to stand out in the competitive market while maintaining its successful brand as well as high financial returns. Our core competitive ability is different from other property companies through client focus, innovation and learning ability. Some believe that anybody can enter the property industry as long as they buy land. This is technically true if it involves a small project. However, if the company wants to expand on a large-scale basis, it has to be a professional company with best management practices.

Q: What is Vanke’s philosophy? How do you build up the corporate culture?
A: On one hand, Vanke’s philosophy indicates the care taken with our customers. We see our customers as partners not as “God”. Vanke focuses on quality of service, even more than on the products to some extent. Every Group company has set up a customer service centre and customer service ambassadors. Vanke has a first-class property management system in China. Our customers, especially Shanghainese customers always recommend our properties to their friends and want to make a second Vanke purchase. Vanke Property Management has earned satisfaction and a high reputation from customers. Last year was a seller’s market, increasing 40% and almost all the quality buildings were sold out. In such a rising market, sellers always pay attention to products while neglecting services. In fact, while improving the quality of products is easier to achieve, it takes time for a company to build service into its philosophy and in the structure, practices and the mind of every staff member.
On the other hand, Vanke approach to staff is different from other companies. Our staff are keen and have to work under pressure. We try to build up the most excellent teams in this field, who can provide the best services to our customers. All staff are encouraged to be self-motivated, and we aim to create a pleasant working environment for them to study and innovate.

Q: How does Vanke implement its brand strategy?
A: Last year we promoted our new brand image known as “Boundless Life”. Since we are in a competitive market, we need to establish a brand strategy and carry it out effectively. In 2001, we did a large-scale customer investigation to assess how the brand affects their purchase decision and satisfaction. We promoted the brand based on that investigation and hope to optimize our resources and provide powerful support for the development. We will bring more and more innovation into the market in order to remain competitive in the long term.