The official meeting of the Magic City government is to decide major policies, which need to be coordinated among ministries and commissions to slowly study and resolve. Governing a big country is like cooking a small fish, and one cannot be impatient.
However, enterprises can follow the guiding principles given by the conference and start implementing them first. Only by collecting more data samples can they discover problems in a timely manner.
Only by constantly modifying and improving the details can the subsidy policies, industry norms, laws and regulations that are ultimately issued stand the test of history.
After the meeting, Li Zehua was left alone again and consulted on some information about rural agricultural product transportation, sales, and primary food processing.
Relevant personnel from state ministries and Shanghai government agencies attended the meeting to gain in-depth understanding of issues such as Pinxixi's policies to support and benefit farmers, Chizuome's restaurant chain plans, and supermarket chain plans.
There are two core guiding ideas: one is to stabilize employment, and the other is to increase tax sources. This is the key to impressing the upper echelons among all the submitted plans.
The above investigation into Li Zehua's family and personal experience was thorough, and they were very clean, without any hidden dangers. He and his family five generations ago were all lower-middle-level poor peasants.
The state-owned assets have all been invested in the enterprises under its control, and there are personnel on duty in key positions. To a certain extent, there is no need to worry that the development of the enterprises will deviate from the planned direction.
After this meeting, Pinxixi will also accept financial investment from the three major funds, and the cooperation between the two parties will be further deepened...
After the meeting, the Ministry of War and the seven military governorates signed a new memorandum of cooperation with Qingyun Group on the training of 100,000 veteran drivers, commercial use of Beidou, and overseas animal and plant (mineral) scientific research.
A preliminary cooperation has been reached in various aspects such as national property management training. The specific details and terms still need to be discussed later, but the framework has been set and there will be no major changes...
At the meeting, Qingyun Group was added as a member of the Shanghai Federation of Industry and Commerce, and Li Zehua himself was awarded a series of titles including Executive Committee Member of the Shanghai Federation of Industry and Commerce, Vice Chairman of the Shanghai Logistics Association, etc.
They are all tentative and need to wait until the relevant units hold a formal meeting before they can be voted on.
After the meeting, representatives from the manufacturing industry and the transportation and express delivery industry held an ad hoc consultation meeting in the conference room of the designated reception venue of the Shanghai Yamen.
"The conference is over. Now the urgent issue to be resolved is the coordination of transport vehicles, routes and transport capacity."
Li Dongsheng, a senior representative of the manufacturing industry, asked the first question, "More than 100 million yuan in sales per day is equivalent to more than 20,000 TV sets or more than 30,000 air conditioners in a single home appliance industry.
It is not a small project to move the products from the manufacturer’s large warehouse to more than 800 counties across the country.”
The manufacturers are quite satisfied with the sales results achieved.
Only in this transportation link, after losing the support of the three-level agents at the provincial, municipal and county levels, has the manufacturer's warehouse directly connected to the grassroots front-line stations.
This is equivalent to an increase from the original 1v30 to more than 1v800 in an instant. If it continues to expand in the future, it will become two to three thousand counties and tens of thousands of towns.
The manufacturer's logistics warehouse will never be successful no matter how hard they work, and the previous extensive management is unable to cope with the development under the current situation.
Unfortunately, large household appliances cannot be sent by express and can only be transported over long distances by land.
This is true for businesses and express delivery companies alike. Faced with a surge in vehicle operations, leasing public vehicles can temporarily cope with the situation.
However, the scattered docking management and low efficiency at the destination are a headache for everyone.
“The Tongda Group has already mentioned the modern information logistics upgrade and transformation project at the conference, but it will take time to implement.”
Li Zehua is particularly concerned about the upgrade project of the logistics and express delivery industry, which is dominated by new information technology based on QR code and scanning functions and big data analysis and processing.
This will directly affect the future status of the FaMa Group. Within two to three years, it will rely on the upgrading of smart logistics and intelligent manufacturing industries.
While making a fortune, the right to speak in the future development of two major industries will greatly increase the status of the Qingyun Group in the era of mobile Internet.
Considering the huge market involving hundreds of billions of dollars in the initial stage, the forces behind the FaMa Group must be united and work together.
He has already planned to introduce micropayment to Bank of China and Industrial and Commercial Bank of China, and the four major banks will definitely be there in the future. This will bring great convenience to the promotion of electronic payment by scanning QR codes.
There is no need to face the contradictions that payment insurance has faced in history, change banks, and change the thinking of pawnshops?
This is something only a madman would say. Oh, it would definitely be better if we replaced the state-owned banks with Squid Capital and Taishan Faction to take control?
It is better to believe in the integrity of capitalists than to believe in the problems of payment insurance one day. Who will bear the mess of 300 billion or even 3 trillion?
Don’t ask Jack Ma, he has invested 8 billion, the worst that can happen is he loses everything, and the bank still has a minimum deposit reserve ratio of 10-%.
The payment insurance is directly 1%, 1‰, this is a disruptor who does not need to bear the initial investment, it is an unreasonable practice.
The risks belong to the country and society, while the profits are personal. When problems arise, he just walks away, and curses the regulators.
The results of it?
He wanted to parasitize the capital of a country that owns 35% of the global manufacturing share, but his plot failed, so he immediately turned his back on the country and even wanted to set a fire before leaving, completely messing up the situation.
Li Zehua would never do such a stupid thing. No matter what the future holds, he will definitely not be on the list of people to be liquidated after 16 December.
Faced with the current situation of tight transportation capacity and chaotic transportation scheduling, he proposed his own solution: "Self-purchase of vehicles and social leasing at the same time.
Tongda Group companies and JD Logistics have established a strategic partnership to achieve cooperative sharing of warehousing and logistics center resources. According to prior planning, each company will coordinate resources except for the provincial capital.
Build another logistics sub-center in each province to save resources and avoid duplication of construction in the early stage..."
The plan to build a provincial sub-center for logistics and warehousing was proposed as early as when Fengniao Express invested in the Tongda Group and held shares with JD.com.
Taking Hunan Province as an example, no one can give up Xingcheng, a transportation hub.
But there are still a few cities in the province with convenient transportation, such as Hengnan, Zhuzhou, Yuezhou, Huaifa and Changde.
The Tongda Group and JD.com are just like a family. In the future, when the business scale is up, they can discuss holding shares in each other or expanding again.
In this way, relying on the common link of Hummingbird Express to achieve data resource sharing is acceptable to all parties.
After listening to the proposal, the manufacturers were also quite excited, especially with the participation of JD.com, which relieved them of their worries.
The combination of the b2c model and Pinxixi's group buying model avoids internal consumption. JD.com is in cities and Pinxixi is in towns and villages. They do not interfere with each other but can provide support to each other.
Perhaps in the future when the two companies grow to a certain scale, they will cannibalize each other's market, but this is not the focus of everyone's attention at the moment.
"At present, the market potential in rural areas, especially the relatively affluent areas in the central and eastern parts of China, contains potential purchasing power that far exceeds everyone's imagination.
While conducting daily sales, we sent out an online survey to more than one million respondents, which showed that more than 70% of them are replacing their home appliances now or in the near future..."
With the data in hand, Li Zehua was not at all panicked. These were real data from more than 200 million eggs, which were crucial top-secret information for any factory.
But now it's like rotten cabbage, and everyone present has one.
"Please see, these are the respondents' specific requirements for price, brand, and function. In fact, I was a little shocked when I saw it for the first time.
That is, in the new era, there is actually a huge gap between price and product quality. Consumers pay too much attention to price and ignore the requirements for quality. "
"This is an inevitable result. There has long been a huge difference in consumption concepts between urban and rural areas."
Ms. Dong is a saleswoman by profession, so it goes without saying that she has a good grasp of people’s hearts. “Gree’s products produced and sold in rural areas…”
It's a long and eloquent article, and every word and sentence hits the point.
Funny enough, Gree was not very enthusiastic about the olive branch extended by Pinduoduo at the beginning, and once believed that the emergence of Pinduoduo would break Gree's control over the market.
As we all know, due to the inconsistency of transportation prices and sales scale in different regions, the shipping prices of various manufacturers are also different.
For large distributors across the country like Gome and Suning, the manufacturers provide very strong support in terms of supply prices, settlement cycles, and activities.
But if large supermarkets want to build their brands and increase sales, they naturally need small distributors to make profits, otherwise how can the manufacturers’ profits be guaranteed?
In order to make a profit, they naturally have to raise the supply price and reduce activity subsidies, which is equivalent to artificially creating a product price difference.
Cross-selling is inevitable. Li Zehua was a milk powder agent in his previous life, so he was fined no less than one million yuan. However, the price difference was too large and it was profitable, so it continued despite repeated bans.
If you get caught, just consider it your bad luck. For example, the dispute between the peasant woman and Wahaha is also inevitable.
In order to maintain the market price system, Gree is willing to confront Gome head-on. It is also worried that Pinxixi's chaos will impact its original sales system.
But the market size is there. Compared with Pinduoduo's 50,000 to 60,000 direct sales force, Gree's franchisees and agents are naturally no match. Not participating is equivalent to handing over the market to competitors. Ms. Dong was forced to join and cooperated with an attitude of giving it a try. Once she found something wrong, she was ready to terminate the cooperation at any time.
Until now, seeing the success of Pinxixi and the increasing number of part-time employees, just like in the insurance agency industry, issues such as refusing to cooperate and controlling cross-selling are no longer discussed.
First, maintain market share and communicate privately with other manufacturers to see how to limit Pinxixi's unlimited erosion of offline sales channels. Ultimately, a plan that both parties can accept must be worked out.
"There is still a long way to go to solve the problems of price difference and consumer attitudes."
Li Zehua sighed and took over the conversation, "This requires the joint efforts of everyone present. Right now we are considering the issues of the logistics and express delivery industry.
They will greatly increase their transport capacity in the future, upgrade their warehouse and logistics centers, etc. This will require a lot of money, and you may need a little support...
At this stage, we will invest in an additional procurement plan of 10,000 vehicles to specifically serve the construction of channels in the sinking market."
For manufacturers, selling products and recovering funds is mission accomplished.
However, for Qingyuntongda, JD.com, and SF Express, it is extremely uneconomical to go with a full truck and return empty, because the target destination is usually an economically underdeveloped area.
There is no return cargo, so the cargo is sent to the cargo concentration area. The two or three hundred kilometers wasted in the middle is not a big deal for a car, and it only wastes one or two hundred yuan.
But with tens of thousands of vehicles wasting so much transportation mileage every day, it is a terrifying problem. No one can bear the waste of millions every day.
Taking into account the full load revenue at the destination, a truck would lose at least thousands of dollars. Who can tolerate this?
This requires Pinxixi to achieve the second point, which is to transport rural products, which also involves resource sharing with the Chizuome Catering Group.
At present, the Pinxixi group buying website is mainly based on offline sales, and the proportion of pure online consumers is almost negligible.
Perhaps after school starts, relying on tens of millions of college students, the situation will change fundamentally, but it is not the case now.
Pinxixi will not easily disclose this business plan.
After all, students' consumption trends have nothing to do with the home appliance industry. Instead, manufacturers of clothing, printing, electronics, food, etc. benefit more.
There is another core problem, that is, the regions of pure online users are not fixed. Most of the people who can shop online in 09 are concentrated in urban areas.
This will affect the core interests of manufacturers, and traditional sales areas and channels will be impacted by Pinxixi.
These people had just come from Qiantang. It was obvious that Jack Ma's plan to force manufacturers to choose between two options had completely failed.
They are all billionaires, who cares about your threats, Jack Ma? Even the former richest man Huang failed to do something successful, so why should a mere Tao Tao succeed?
What was impossible for Tian Miao to achieve at his peak can now only be said to be a pipe dream.
Anyway, Li Zehua had no intention of explaining. At most, he would ask the manufacturer to launch a customized series for urban customers, just like the products purchased by JD.com, and formulate special policies for different consumer groups.
Pinxixi is not planning to open its own store, so it would be perfect if it could learn from Taotao’s good example and collect rent without doing anything.
Manufacturers' concerns mainly involve transportation and payment collection. Transportation is not something that can be solved in a short time, but Qingyuntongda Group has joined hands with JD.com and SF Express to come up with a feasible solution.
Everyone can accept it.
What remains is the repayment. Pinxixi has more than 1 billion yuan in the accounts of ICBC, Pudong Development Bank (mainly involving Jiangsu, Zhejiang and Shanghai regions), and Shenzhen Development Bank (mainly involving Guangdong and Guangxi regions).
Wealth is attractive, especially with such a high turnover rate, every manufacturer would be jealous.
Small and medium-sized manufacturers have no bargaining power, and no one knows where those manufacturers that went bankrupt and had their leftover goods bought out are now. Only a dozen or so large manufacturers are left, eyeing the market covetously.
The demands they put forward were simple: they wanted the money to be transferred as soon as it was received, and they were even unwilling to pay the deposit for opening a store. They kept saying that they were wealthy and their products were reputable in the market.
Besides, there is a refund or exchange guarantee for product quality issues, follow-up repairs and maintenance, and Pinxixi has such a huge after-sales system.
Although they were forced to do the work after only a short period of training, they were still able to handle minor problems, such as replacing a screw with a little dust.
There is no need to leave a brand deposit.
From Qingyun's perspective, the situation is different.
Why can Gome, Suning, and JD.com enjoy 30-60 days account period discounts, but Pinxixi cannot?
It is said that the manufacturer has opened a store, but the actual sales of home appliances in rural areas are all done by the Pinxixi team.
It looks like a C2C model, but in fact, it is just a change of name for group buying to prevent JD.com from overreacting.
Li Zehua also understood that this could be a long-term business if he penetrated into the lowest level of the sales network and took advantage of the favorable trend of home appliances going to the countryside to fully understand the market.
Group buying, group buying, I was really deceived by the experience of the previous life. Once the plan of these 3,000 experience stores plus more than 100,000 direct employees and an even larger number of part-time employees came out, Pinxixi was like a virus.
It is tightly entangled with the big tree of the village and town, and it is impossible to break away from it, even if there is a war of thousands of regiments in the future.
Pinxixi relies on its huge customer base in rural areas and can single-handedly crush all its competitors.
In other words, there is nothing wrong with the listing plan. If the data from these seven days is maintained, it will not take two years for the company to be successfully listed in Hong Kong or Lijiaopo.
He doesn't have to worry about the shares. The three major funds are increasing their capital and the State-owned Assets Supervision and Administration Commission is also going to enter the market. The preliminary opinion reached is to stabilize it first and see the sustainability of the market for two or three months.
After all, seven days online plus one month of offline trial operation are not enough to prove the integrity of the business logic, but if there are real results for a few months.
If this data can be maintained, then everyone will have nothing to say...
"We opened the store ourselves. We paid service fees for each order, so the remaining funds should follow the Taotao model."
He Xiangjian, the head of Midea, said with a smile, "Of course, Midea fully respects the status of Pinxixi's channel management and is willing to provide some convenience in terms of service fees and sales rebates..."
The implication is that I'll give you more benefits and you'll pay quickly.
Li Zehua asked in return, "If we calculate based on self-operated stores, then are the goods stored in the warehouses of township stores considered the manufacturer's or Pinxixi's?"
It is impossible for early big data analysis to be completely accurate. Based on the manufacturer’s past sales experience, some best-selling models will be stored in the Pinxixi warehouse in advance.
This inventory quantity is distributed among thousands of sales outlets across the country, and each manufacturer has hundreds of millions of products. How should this money be calculated?
There was a lot of discussion for a while.
Some people prefer to pay in advance, which is equivalent to Pinxixi spending money to help manufacturers solve operating funding problems, but how is this possible?
Li Zehua took out the contract and retorted, "Other companies sell first and pay later, but Pinxixi will not accept the advance payment model."
Some are willing to settle accounts based on actual sales on the website, but this is not very realistic because the website data and warehouse data may not match.
There are many problems in the process. As long as there is an order that is not recorded or returned or exchanged, there will be a gap in the total number, and Pinxixi is unwilling to take the responsibility.
The manufacturers cannot afford it either. After all, there are thousands of towns, and if one town places one after-sales order a week, the amount of money owed cannot be matched.
“So in my personal opinion, a 30-60 day payment period is very necessary.”
Li Zehua knocked on the table and said, "Don't worry too much, Qingyun Group is stepping up the coordination of warehousing, logistics and transportation resources in various places and upgrading the website backend services.
Within one or two years at most, we will be able to transmit and aggregate data in real time, and then we can agree to discuss the payment settlement issue.”
Just kidding, Pinxixi has been eyeing this money for a long time.
But he will not follow the example of the richest man Huang and send himself to jail for no reason.
There are many legal means, such as making short-term certificates of deposit with payment for goods and taking out loans by means of pledge. Because there is new sales payment coming in every month, after paying last month's payment, there is this month's payment again.
If Pinxixi can achieve an average monthly revenue of more than 30 billion, it would be equivalent to borrowing an additional billion in available funds from the bank out of thin air.
Not only that, financial institutions can also issue corporate bonds.
This time the deal was done, and a large amount of unplanned funds appeared in the company's account out of thin air, which would benefit the entire group's development. (End of this chapter)