Chapter 137: Rhapsody of Monopoly Industry

"You are all well-known figures in the venture capital industry, and you are all my seniors. I am the youngest here, so please forgive me if I say something wrong."

After everyone left, Li Zehua took out a pen and paper and quickly wrote a paragraph, then pushed it to Temasek and GSR Ventures on the left first.

"I am a person who is used to dealing with villains first and gentlemen later. If you think I am acting recklessly, please forgive me."

The first person to get the A4 paper was Zhu Xiaolong of Jinshajiang Venture Capital. He took a quick look at it and was happy. "Mr. Li is really cautious. This is good. I'll sign it."

He waved his hand, signed his name and date, and passed the task to Lin Wenhui next to him. The latter did not hesitate, and then it was Lin Renjie.

After he finished writing, he pushed it to the opposite side. Zhang Lei and Gao Ling's partner Li You next to him looked at each other and did not hesitate.

In fact, it is just a promise that even if you don't invest, you won't disclose the content of the conversation, which has no binding force.

But there is a paragraph at the end saying that the law firm cooperating with Yanjing is on its way to prepare a confidentiality agreement on the spot, which is equivalent to a pre-signature.

No one refused, and no one got angry or felt looked down upon. This is very common in the industry.

On the contrary, Li Zehua's rigorous attitude aroused everyone's strong interest and made them look forward to the following sharing.

They are not afraid of investing a lot of money, they are only afraid that the investment is meaningless and cannot be recovered.

If entrepreneurs can come up with a reasonable and complete business plan, they have no reason to refuse.

Putting away the A4 paper, Li Zehua finally began to talk about his complete plan.

I saw him clear the writing board and draw two big tens on the left and right.

In the middle of the ten on the left, circle a word "takeout" and write "merchant" and "technology" on the left and right; write "moat" and "rider" on the top and bottom.

In the middle of the ten on the right, the express delivery platform is also circled, and on the left and right are other express delivery companies and city delivery; this time there is a question mark on the top and the courier is written below.

And between the two tens, write the Internet.

After finishing writing, he turned around and said, "Let's not talk about this question mark for now. In principle, JD.com and Taobao are in question marks because there are too many uncertain factors. It may take several months to verify."

The envisioned group buying and Pinxixi are both included, but he didn't say it.

Because group buying is different from takeout express delivery, its essence is to lock in target customers in advance and provide manufacturers with an online channel to reduce prices, promote sales and expand sales.

Channels are important, but publicity, advertising and traffic are even more important. He will never leak a single word before things are done.

Otherwise, with Tengda Ahri's size, he could kill her in any minute and he wouldn't even have the chance to fight back.

It was just a bare picture and everyone couldn't make out anything, so they just waited quietly for his explanation.

Li Zehua said, "Let's start with takeout!

Currently, Chizumo is making losses. With the rapid implementation of the Ten Cities Plan, the rate of losses will accelerate.

I estimate that the loss in the next six months will reach more than 20 million yuan.

But fortunately, at present, my personal funds can fully make up for this loss.

Losses are not scary because the losses are valuable. Judging from the performance growth data, by the start of the school season in September, the monthly revenue of Chizuome will exceed 100 million.

It will maintain rapid development in the long term, and we can even optimistically estimate that it will exceed 2 million by November. In other words, Chishime will achieve a revenue of more than 7 million in the first year of its establishment.

In order to complete this task, we plan to incur a loss of 3500 million yuan and complete the construction of a team of more than people at the grassroots level..."

Following his introduction, everyone became interested. This time they recorded it on the computer and Li Zehua did not refuse.

Because this is the minimum strategic goal, he did not mention the highest number. If the team is successfully built, the company's management generally believes that there will be no pressure to achieve 1 billion.

Taking the Shanghai headquarters as an example, excluding the promotion team and logistics staff, the front-line marketing team alone will expand to more than 3,000 people.

Taking an average of 70-130 orders per person per day under saturation conditions, about 30 orders will be completed every day. Adding the same number of part-time students, they can contribute about orders every day.

Although there are plans to train talents for other regions, Fengniao Express will also divert a large number of people.

However, personnel can sign a cooperation agreement to achieve seamless integration between the two companies, internally divide their work and work part-time in each other's jobs to complete food delivery orders.

In addition to Yanjing and eastern Guangdong, the three major markets of Jiangsu, Zhejiang and Shanghai are making efforts at the same time. 20,000 people is just a minimum number. If there is sufficient funds and management team, it is possible to recruit 30,000 to 50,000 people.

Because there are many part-time students, we will only consider the Shanghai area, and the maximum capacity of 300% will be considered nationwide, with more than 100 million orders and tens of millions of revenue every day.

Of course, it is still difficult to achieve this because it takes time to popularize computers among merchants, build websites, coordinate logistics, train personnel, and so on.

“In 2010, we will make steady progress in Internet promotion, advertising marketing, team building, business cooperation and other aspects.

After comprehensively considering various competitive factors, we are still optimistic that Chimei Fengniao will establish a professional delivery team of more than 3 people and is expected to achieve a performance target of more than 36 billion.

To this end, we will develop new businesses such as city logistics express delivery, errand running, and shopping assistance.

No longer limited to catering services, we have opened up a variety of service models and expanded our customer base to all walks of life.

Of course, the comprehensive loss will be maintained within 10%..."

While listening, Lin Wenhui quickly exchanged views with Lin Renjie. Both of them had a detailed understanding of the ChiMei model.

Now after hearing these data, I am more convinced of one thing: the Chichume model has enough room for survival and the business model is replicable.

Zhu Xiaolong was also interested. When he saw Fanjisong at a venture capital competition two months ago, he had a vague idea of ​​this.

But at that time, conditions in all aspects were not yet mature, and Fanjisong's entrepreneurial team was too immature.

But now that you have eaten it, the complete business plan presented has been tested by the market and is indeed feasible!

After the three of them had fully communicated through the software, they felt that there was no problem, and immediately Lin Wenhui represented Temasek and Zhu Xiaolong represented GSR Ventures to negotiate a suitable price.

Zhu Xiaolong spoke up, "Boss Li, we have already understood the specific situation.

We will immediately send a professional team to Shanghai to make contact. If everything is as you said, I believe we can establish cooperation soon.

Our initial offer is now US$1500 million, 20% of Mejia Hummingbird shares, and we reserve the right of first refusal to lead the second round of investment. Other details will be discussed later.”

Zhang Lei and Li You were still discussing, and their prices were roughly in this range. Upon hearing this, they immediately said, "We at Gaoling Capital can also offer 1500 million US dollars."

These two figures are more than ten times better than the conditions that Fanjisong has obtained in the past, but Li Zehua did not look happy at all.

Under the puzzled gazes of the crowd, he stood up again and knocked heavily on the three words "Moat".

“Ladies and gentlemen, if you just want to invest in a company that will have an annual revenue of over 10 billion yuan and occupy 30% to 40% of the market share in three to five years, then this number is very attractive.

But this is not what I want!"

Now everyone was completely unable to sit still. What a joke, an angel round of more than 10 million US dollars to invest in a company that had been established for more than two months.

If it were any other entrepreneur, it wouldn’t be excessive to invite a group of young models to the scene and celebrate wildly with champagne.

Why am I still despised by him?

"Don't be so quick to get angry."

Li Zehua said calmly, "Just like the question you asked me just now, I still have some ideas on how to defeat other powerful competitors!

If it goes smoothly, it won’t be a dream to completely monopolize this industry! ”

"Really?"

"No joke?"

For a moment, everyone was stunned.

Competition is inevitable!
Even though both companies are shareholders of Tengda Ali, they cannot ask the latter not to get involved in the food delivery industry.

Because if Chimei makes achievements in the food delivery market, it will definitely attract entrepreneurs from all over the country to imitate it. At that time, there will be chaos and everyone will develop based on their own abilities.

They are willing to invest in it because it looks reliable and has the first-mover advantage. These two points alone are enough to make a bet.

But now, listen, the founder still has the idea of ​​completely monopolizing this industry?

He must be crazy.

"Whether it succeeds or not, everyone should just stay calm!" Li Zehua was in high spirits. He could finally tell his complete plan. He had been thinking about it for several months!
Under the gazes of the crowd, some of which were surprised, some of which were suspicious, and some of which were expectant, he slowly opened his mouth.

“Riders, there is no need to say much about Internet technology, as long as you have money, you can make it.

When I founded Chishime, I was thinking about one question: how to avoid homogeneous competition, how to grasp core advantages, and how to build an indestructible moat.

Fortunately, I have fulfilled my mission. After learning from some of JD.com’s business logic, I feel that I have found the most suitable path!”

No one spoke, just waiting for him to continue.

He lived up to expectations, “So at the beginning, I first gave full commission to part-time university students.

This is to establish Chichuima's first moat in the market, that is, to gain a firm foothold in the school and use it as a foundation for outward expansion!

Including my half-baked video website and so on, all serve this goal.

Students are emotional. A responsible and caring company can keep the part-time student team and continue to promote this value. It will not lose the campus market! "

Everyone nodded in approval.

He added, “As for the part-time jobs between riders and courier companies, it is the second line of defense!

It is difficult for other competing companies to do so. If they form such a large delivery team, it will be impossible for them to compete with Chimo in terms of service.

Of course, this does not apply if the giants themselves take part, but at least if you eat it, you won’t fall behind.

I will not go into the technical aspect here because there are no good methods available at the moment and it may take time to develop and for technological breakthroughs to emerge.

So the final breakthrough point I chose was the merchants, merchants - riders - customers. I was invincible with the riders, and I had schools as my basic customer base.

If we can also master the most important restaurants in food delivery, does it mean that we will far surpass our competitors? "

Zhang Lei was not calm anymore. "You wouldn't buy shares in all the restaurants in the country, would you?"

If that were true, he would go crazy!

Venture capital is not charity, much less a wishing well. If he has the ability to do this, why would he do venture capital?
"more or less!"

Li Zehua smiled happily, "That's what I planned."

Before anyone could react, he shrugged, “Just a joke!
In fact, the takeaway industry is a mass industry that emphasizes timeliness, and many restaurants are only suitable for a small target population.

They are a high-income group who have high requirements on taste and food quality and are not sensitive to prices.

This part does not account for a large proportion, and it is the middle and low-income groups that really determine the overall scale of the takeout industry!

We have concluded in practice that fast food restaurants are the most important merchants in the takeout industry!
For example, Lanzhou ramen, Shaxian snacks, Northeastern dumpling restaurant, various stir-fried dishes, barbecue restaurants, malatang, fried chicken burgers, etc.

At that time, I was always worried. No matter how I thought about it, I felt that I could not compete with big companies like Tenda and Ali.

Later, I brought everyone in the company together to think about how to establish an absolute advantage.”

Lin Wenhui's heart began to beat, "So you want to build a fast food chain that is completely controlled by Chimo?"

"Not one, but many!"

Li Zehua said firmly that this was the first time he spoke out his innermost thoughts in front of outsiders.

Because he always believed that a person's strength lies in his inner strength. If he is afraid of competition and powerful opponents, he will never succeed!

Now the opportunity is in front of him, and two top investment groups are here. If he doesn't seize the opportunity, what is he waiting for?
“At first, the company’s management thought I was crazy because the amount of manpower, material resources and funds required to acquire shares and control these restaurants was simply astronomical.

But soon, I found their common point, that is, the food styles tend to be unified. Take egg fried rice as an example, is there any difference between one egg or two eggs?
Take Lanzhou ramen and Shaxian snacks as examples. Their dishes are always the same. If we can make them a national chain.

We can gain huge advantages in raw materials, store location and decoration style, unified training, food taste, etc...."

As he was passionately describing the plan, Zhang Lei couldn't help but interrupt him.
"Mr. Li, I agree with your idea, and I also understand that once you succeed, no one will be able to compete with you in the catering delivery business.

But you have to consider the most realistic issue, store rent, which is something you cannot avoid in any way.

Where do you find so many suitable chefs for restaurants?"

Li Zehua was not afraid of Zhang Lei's questioning. "I have to thank Mr. Zhang's colleague, Mr. Shen from Sequoia Capital.

I believe you all know how Home Inn grew and eventually went public through financial means.

Relying on the convenience of food delivery, we don’t need to rent the most prosperous street-facing shops.

You only need to find unpopular shops in residential areas, urban villages, and commercial communities, and you can effectively reduce expenses in all aspects, including rent, maintenance, and daily consumption.

The biggest benefit of studying at home is that it saves the biggest rental cost.

My opinion is to build a mass brand first, accumulate enough experience through exploration, and then expand outward.

As long as it is a catering series that is acceptable to the public, we will be involved.

There will soon be tens of thousands of people under the umbrella of Chizume and Fengniao Express. We have enough promoters to be in the market at any time, in the right locations, to negotiate with landlords, persuade them and complete the signing of contracts.

All of this will take time. Once we reach an agreement with the landlord, we can bundle the money in with a fixed monthly dividend and use a high penalty fee to keep the store stable.

At that time, we will use large-scale centralized planting of raw materials, semi-industrially process them into pre-prepared foods, and distribute them through express delivery platforms, using industrial assembly lines to reduce costs.

Ladies and gentlemen, you can imagine that we lease and transfer land from agricultural provinces, concentrate on planting, and then do primary food processing and pre-packaging.

Through our Hummingbird distribution platform, transportation is delivered to distribution centers in major cities, and then distributed to various stores. How much cost can be saved by integrating production and sales?

How many jobs can be provided?
After binding the landlord himself, we can cooperate on a large scale with restaurant chains and chef training institutions in various places. As long as we are willing to delve deeply into this industry, we will see the benefits within a few years.

The market is ready. For example, in Shanghai today, many migrant workers cannot taste the local delicacies.

For example, I feel very anxious if I don’t eat spicy food. I can’t even eat sweet food with its original flavor. How big is the potential market for this? You can judge for yourself..."

Lin Wenhui was dumbfounded.

Zhu Xiaolong was silent and thoughtful.

Zhang Lei's eyes were shining.

Li You was shocked.

"What on earth is going on in this guy's head?"

Lin Renjie was speechless. Is this an investment in an Internet company?

Why does it feel like he has invested in several industrial chains?

Or the kind that monopolizes the entire industry!
After a long while, Zhang Lei finally reacted and couldn't help but smile bitterly, "Boss Li, you can't say this is a wild idea, but it can only be said that your imagination is very wild. This road is destined to be difficult!"

Li Zehua put his hands on the table and looked down at everyone, "Difficult? It's difficult to live, and it's even more difficult to get rich!
It is difficult for me to start my own business. You who are venture capitalists may seem glamorous, but there are always fewer successes and more failures.

To be successful, you also need to judge the timing and choose the right opportunity to cash out and run away; if you fail, oh no, you will lose everything!
Now that we have this opportunity, why not make a big move?
The worst outcome is that you can survive after eating it, and it is inevitable that you can make some profit by recovering your investment.

And what if it succeeds?

Think about it, from the black soil of our motherland to the southernmost Qiongzhou Island, they will all be our raw material supply bases;

Our yellow-robed gods of war are roaming in every city of a certain size. For every ten restaurants they pass by, one or two are controlled by us.

We can solve everyone's eating problem. Once our goal is achieved, we can establish absolute hegemony in the catering industry and have our own KFC and McDonald's.

As long as a certain scale of restaurant has a demand for delivery, we will invest in them. On the one hand, we will open stores for expansion, and on the other hand, we will manage and control franchises.

By that time, it will be difficult for you to lose money, because the whole world is in our hands!"

Lin Wenhui swallowed hard and said, "Mr. Li, your business plan is beyond my imagination. I think it is necessary to adjourn the meeting temporarily and give us some time to discuss it."

Zhang Lei rubbed his temples, "Yes, your satellite is too big. We need to comprehensively evaluate the feasibility."

"It doesn't matter. We can discuss it as long as we want."

Li Zehua was very generous, and at the same time thought in his heart, "This is the real monopoly, choosing one of two? What the hell is that? Is it giving someone a handle to make a fool of themselves?"

(End of this chapter)