What other companies Longfor: Wu Yajun's secrets of success

Wu Yajun, president of Chongqing-based Longfor Properties and the richest woman in China. (Photo/CFP)

Longfor Properties has become a dark horse in the Chinese realty market in recent years and its success has enabled its chairwoman Wu Yajun to assume the title of China's richest woman, boasting a fortune of 39.06 billion yuan (US$6.2 billion), for three years in a row.

One secret behind the success of Longfor is speed, as evidenced by the location of its headquarters in Beijing, which boasts convenient transportation for its employees coming to the office or going to the airport for business trips.

Since the inception of the company, Wu Yajun has steered the company through the principle of high turnover. At Longfor, it may take only five months for a project to break ground after securing the land, while the average time for the process is eight months. The speed of Longfor's development process is based on a formula which calls for 90% duplication and 10% innovation.

The 90% duplication has been made possible, thanks to module-based products. After securing a plot of land, managers of Longfor would first determine the type of development project to be built on the land and its architects would select modules from the database for assembly, thereby saving 90% of the time it would normally take to design the project. Then the design department tweaks the design according to the features of the land.

Longfor is one of the most profitable realty developers in China, boasting a 23% net profit rate in the first half of 2012, the second highest among major developers, trailing only China Overseas Holdings at 27%.

One major factor behind the high profit rate is stringent cost control, carried out via its cross-function concerted IT platform. The platform can detect unreasonable outlays in every business unit.

Talent is the major weapon of Longfor, which offers high pay to retain its best employees. The annual pay for a financial superintendent, for instance, reaches 4 million yuan (US$640,000) and that of a project superintendent hits 1.5-2 million yuan (US$240,000-$320,000).

In addition to residential projects, Longfor has also made major inroads into the commercial-property market. In the first half this year, commercial-property sales in Beijing, Chongqing and Chengdu contributed to one quarter of the group's total revenue.

Its commercial complex in Beicheng of Chongqing, for instance, consists of two supermarkets, two multiplexes, one department store, 30 restaurants and entertainment outlets, and over 200 boutiques.

In 2010, Longfor set up a commercial property department to accelerate its development in the highly lucrative market. The company aims to set up one regional shopping center every three to four years and boost the share of rental income from commercial properties to 30% of its total revenue in 10-15 years, according to Wu Yajun.

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World’s Wealthiest Self-Made Woman: Wu Yajun

While Oprah certainly is one of the most well-known self-made billionaire women, Wu Yajun of Longfor Properties Co. based in Chongqing municipality is the world’s wealthiest self-made woman.

In the world of self-made billionaire women, China is leading the way. According to a recent report compiled by Hurun Report ranking China’s wealthy, of the 28 self-made female billionaires around the world, 18 came from China. Of the top 10 self-made female billionaires, seven are Chinese. Surprisingly perhaps for some, U.S. media mogul Oprah Winfrey barely made it to the top ten, with her estimated $2.7 billion fortune putting her as the 8th richest self-made woman in the world.

Rosalia Mera of Spain’s fashion powerhouse Zara came in third with a net worth of $4.5 billion while Benetton clothing’s Guiliana Benetton’s $2.5 billion fortune ranked her in a number 10.

The richest self-made woman in the world is Wu Yajun who is the executive director of Longfor Properties Co., which is based in Chongqing municipality. Yajun’s net worth is estimated to be at around $6.6 billion.

Ranking as China’s second richest woman and 10th richest overall in China with a personal fortune of $5.6 billion was Yang Huiyan of Country Gardens Real Estate. Chen Lihua of Fu Wah International, an industrial investment company, is the third richest self-made woman in the world and the 16thrichest person in China with a personal fortune of $5.2 billion.

Four of the top five richest women in China made their fortunes through the country’s blistering real estate market. The average wealth of the top 50 female billionaires in China was $1.5 billion, up 47% from two years ago. The fortunes of 33 women on this year’s top 50 were self-made rather than inherited, compared to 30 last year.

The number of billionaires in China has increased from 189 last year to 271. This puts the number of billionaires in China as second only to the U.S., which has more than 400. Some believe that there are probably more billionaires in China, however many prefer to remain off the radar.

Retrieved from: http://hauteliving.com/2011/10/world%E2%80%99s-wealthiest-self-made-woman-wu-yajun/208071/

Leadership: Wu Yajun, chief executive, Longfor Properties

She’s richer than Oprah, richer than Bill Gates, richer than Warren Buffet. Chances are you’ve never heard of her and she likes it that way. Meet Wu Yajun the chief executive of Longfor Properties, a real estate developer in China, whose net worth is $3.9 billion (USD). She keeps good company. According to Forbes, half of the world’s 14, self-made female billionaires made their money in China.

                

                                                                        

Yajun was born in 1964 in Chongqing, a river port in Sichuan Province. Her first job out of university in 1984 was reporting and editing at a newspaper backed by the construction bureau of the municipal government. She quickly made many strong contacts. In 1995, she set up her real estate company with the motto: "Be kind to yourself throughout your life". Within 15 years she was a big player, developing ordinary homes, high-end apartments, and villas.

Shaun Rein, founder of the Shanghai-based China Market Research Group, said Yajun, “Has flown under the radar, which is critical in China.” She’s stayed away from publicity and corrupt politicians by “steering clear of factional fighting within local governments, which can get dangerous.” She’s focused on her work.

Rein, a Forbes columnist who is, incidentally a McGill grand (and has a Masters from Harvard), attributes Yajun's to three key factors:

1. TARGET MARKET 

Yajun launched her company strategically. Rather than starting Longfor in Beijing, Shanghai, or Guangzhou, places with more cachet, she targeted a second-tier city – Chongqing (where she grew up). Faced with less competition she quickly built up a large market share. Her markets aren’t unimportant, or small, though, Rein stressed: “It’s where incomes are rising fastest and where optimism is highest.” In Chongqing, 4.1 million people live in the central city, but including surrounding areas, it’s home to more than 31 million, making it China’s largest population centre.

2. JUST DO IT

How does shying away from publicity translate into a “leadership practice” for North American business operators who feel as if they are shouting in a crowded room? First, forget about chasing notoriety. Second, do the work. Come in early and stay late. Send out press releases when you have something outstanding to say. Third, work because you passionately love it. Fourth, be confident in what you do and the decisions you make. And as Yajun said: “Be kind to yourself throughout your life.”

3. A GREAT PRODUCT 

Longfor is widely respected for the quality of its products and customers consider it an “invisible champion.” Its low-key founder doesn’t want it any other way.

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