You know when things are bad if one of China’s biggest luxury developers wants to get into the liquor market as a second business.
It might be relevant to them personally (since you gotta drown the sorrow of not selling any units with something hard), but it’s definitely nothing to do, even remotely with property.
According to Guandian.cn (chinese investment site focus on real estate), they’re seriously looking into the liquor business for two reasons.
1. It’s very profitable, and much more than the Real Estate property business is at the moment, and they see it as a solution to fill the gap for much needed revenue (credit bust anyone?).
2. And this latest comment just made me chuckle, not correct, laugh out loud; “It doesn’t cost much to do the liquor business, which could evolve into some kind of winery in the future, and that is somehow related to property developement as well”
from a company expert.
Now I’ve been here for almost 9 years, always in this business, and I see people successfully change careers and industries in months, and very often.
Yet, this is a huge, huge, developer, and I find entertaining, yet scary.
This to me, really makes a statement, that we’re pretty much screwed.
Whats next? Henessy XO Luxury Housing Developements?