Chapter 377 Investing in the future European retail giant
December 29:
Changxing Building, Yang Wendong was on the roof of the building, inviting several senior employees of the company to drink tea, including the person in charge of Carrefour Liu Huayu, Wei Zetao of Changxing Industrial, Wang Zhiqun of Honor Electronics, Zheng Yuhua of Changxing Shipping, and Lin Youqi who just returned from Europe.
"Come on, Alin, I'd like to offer you this cup of tea." Yang Wendong raised his glass and smiled and said: "In the past few years, you have been in Europe and the United States. It is rare for you to come back to Hong Kong to see your family. Thank you for your hard work. ."
Lin Youjing stood up quickly, raised his glass, held it below Yang Wendong's, and said, "Yang Sheng, you are too polite. This is what I should do."< br>
Zheng Yuhua, Wei Zetao and Liu Huayu, who were standing next to them, also raised their glasses and said, "You're welcome, Mr. Lin. You have been responsible for expanding the group's channels in the United States in the past few years. This in itself is the greatest contribution. We also toast to you."
"Thank you all." Lin Youjing saw that it was hard to refuse the kindness, so he agreed and said with a smile.
"Okay, in the last few days of the end of the year, everyone is here to get together and discuss future industry plans." Yang Wendong also said: "Don't be formal, just treat it as a casual chat, it is not a formal meeting. If you have any ideas, please feel free to mention them.”
The big group has formal meetings, but there are also moments for casual chats. In a more relaxed environment, there will also be many good suggestions.
"Okay." Everyone also understood that this was an easy game, and the boss Yang Wendong also had a good personality, so everyone felt relaxed.
Yang Wendong said: "We are recruiting a few people today because our development in manufacturing has reached a considerable scale, so the expansion of channels will be the top priority in the next period of time;
How many companies can actually make high-quality products, but just It is because of insufficient channels that the scale is limited. "
Those who win the channels will win the world. This is a wise saying. Unless it is similar to the situation when Apple launched smartphones in 2007, most of the products of the era will not be successful. Channels are king, and even Apple will be the same in a few years.
In the early days, the main focus of the group was to increase production capacity, control quality, etc., and then move up the industrial chain; now it cannot be said that these are all completed, but they are almost there, and it will be gradually advanced over time. Then it’s natural to consider expanding in another direction.
Wei Zetao asked: "Yang Sheng, do we also need investment channels in Europe and the United States?"
"That's not true. Omni-channel investment is impossible. Even Coca-Cola can't do it. We still have many kinds of products." Yang Wendong shook his head and said: "In the early years, we were small and didn't have many choices, so we basically invested in Europe and the United States. , except for 3M, other channel providers were not cautious in choosing.
But at that time, most of us signed five-year agency contracts, and these time periods were about to expire, so on your side. You need to carefully choose whether to renew the contract. If there are other better options, it will need to be re-approved. Now our products can be considered to have a certain market, and we have some say in this regard. "
Nowadays, several products of Changxing Industrial cannot be said to be super popular, but after years of operation, they can be considered to be somewhat famous as a brand. In addition, they have patents in name, so they naturally have the right to speak.
Wei Zetao promised: "Okay, I will conduct a large-scale thorough investigation in countries around the world to eliminate some dealers that are not doing well."
"Yeah Yang Wendong continued: "On the other hand, we also need to increase cooperation with some dealers with strong potential. As you all know, I invested in a supermarket called Wal-Mart in the United States, and Lao Liu was also born in this company;
Lin Youjing went to Europe some time ago and spent a few months investing in several supermarkets. These supermarkets are not large in scale, but we can also cooperate with them. "
Lin Youjing also said: "Yes, these European companies are TESCO in the UK, Auchan and Carrefour in France.
I also have some information about them here. You can take a look. If possible, contact them. You can also cooperate with them individually. "
Everyone also took the information and read it for a while. Wang Zhiqun said: "This TESCO is still my glorious customer. After my electric mosquito swatter was sold to the UK, it was also sold in this supermarket. However, It was through traders there, not direct contact from me. ”
“The scale of these companies now is not very large. Yang Wendong smiled and said: "However, we can also contact them individually through Changxing Trading. This can reduce the cost to a minimum. It is best to become one of their exclusive product suppliers. In this way, it will be beneficial to us." Good for both sides. ”
Under normal circumstances, this mode of operation is not worthwhile, because there are too many retail companies of this size and it is impossible to contact each one.
However, the time traveler knows the potential of these companies in the future, and has already invested in it, so it is naturally cost-effective to do so. It can not only bring stable customers to its manufacturing factory, but also invest in it. retail supermarkets, which will bring about some cost reduction.
"Okay, Wei Sheng and I will contact these companies to see what they need. We can also transport it through Changxing Shipping in one go." Wang Zhiqun agreed. In fact, our group's internal cost control in Hong Kong has almost reached its limit now. It produces its own products, controls its own supply chain, and also controls its transportation channels. At this time, it is indeed necessary to consider investing resources in channels.
Once the channels are optimized, new products can be launched directly. After all, retail outlets that can sell one home appliance can basically sell other home appliances.
"There's no problem with me." After Wei Zetao agreed, he asked Lin Youjing: "Lin Sheng, how many shares have you invested in these companies?"
"It's not a lot." Lin Youjing After taking a look at Yang Wendong, he said: "Actually, there were originally a dozen companies that wanted to invest, but after I stayed in Europe for a few months, these were the only companies that finally agreed to our investment. There are still some additional conditions." situation.
But I have also told them about our group's production situation in Hong Kong, so as long as you contact them, there will at least be some discussion. '
Yang Wendong also smiled and said: "Yes, there are not many shares, but they have not been listed yet. There will be opportunities in the future, so you should cooperate or not, don't worry about my affairs."
He wants to invest in all the supermarket giants around the world in the future. This is because the supermarket industry has just begun in this era. Except for a few who have successfully transformed from department stores, the others are just small businesses.
However, after all, he is an unknown capital, and it is difficult for him to successfully invest even in a small company. In the past six months, Lin Youjing has basically reported to himself the negotiation status of each company every few days. It can be said that Difficulty moving.
In the end, it took half a year to successfully acquire a few shares, averaging about 5%.
It's not a lot, but it's still early in the future, and he's not in a hurry. When these companies go public in the future, he will have plenty of opportunities.
Zheng Yuhua said with a smile: "I will also fully cooperate with my brother companies. Although I cannot ship to the whole port, I will also coordinate the resources of other fleets. Our shipping industry also It’s all related.”
“Well, okay.” Yang Wendong nodded: “I hope everyone will cooperate fully to open up our channels and transportation systems in the next few years or even more than ten years. , we can ensure that the entire industrial chain is gradually in our own hands, or at least part of the interests are in our hands.”
The ultimate goal of enterprise development is to gradually control the front-end supply chain and back-end sales of products, so that the cost of similar products in the future will be greatly reduced, thereby minimizing the entire operating cost.
"Cost-performance" is the most powerful weapon of commercial competition, even stronger than the protective effect of patents. As long as a product has the lowest price in the world, the entire market will be his, an absolute monopoly, and traditional It will be difficult for the industry to be disrupted in the future.
For example, in the papermaking industry, if the front-end and back-end are connected and the price is as high as possible, it will be the "Coca-Cola" of the new era. It seems that the profit of a single sheet of paper is very low, but as the scale effect increases, the profit will increase. higher. And even if electronic products in the future will be "paperless" on the surface, in fact it will be because of the popularity of printers and computers. Compared with now, it will only amplify the market demand.
And toilet paper, napkins, tissue paper, etc. cannot be replaced. With the development of economy, Asia, the most populous region, will gradually use it.
“ Yes, Yang Sheng." Wei Zetao and others agreed.
Yang Wendong added: "In addition, Asia and the Middle East also need to pay attention. No matter what products are produced, they are for human use, and Asia has the most people."
Wei Zetao replied: "Understand, currently Asia Changxing Trading is responsible for the market channels, and they are also connected with local trading companies. The local retail industry is relatively chaotic, and most of them are small-scale stores. They have not formed a scale. It is difficult for us to directly bypass trade like Europe and the United States. Businessmen, cooperate with such small retailers."
"Well, let's do this for now, and then think about it later, when there are big retail companies in Southeast Asia." Yang Wendong could only agree.
Today’s Southeast Asia is similar to Hong Kong more than ten years ago. There are only a few large shopping malls and most of them are grocery stores. In this case, it is impossible for foreign capital to compete with hundreds of thousands of shopping malls. Grocery stores can only be contacted through local traders or distributors.
And according to Yang Wendong’s memory, historically, there seemed to be no local retail giants in Southeast Asia.
It seems that the best way is to find an opportunity to open Carrefour in the future, which is safer.
PS: I will update another chapter this afternoon when my stomach feels better. Please vote
(End of this chapter )