Siheyuan: Returning to 61 to collect waste

This made Ye Chuan sigh: No matter how the times change, there will always be a group of wealthy people in China. Some people bought at least 10 computers, and some even bought 50 at a time. They calculated their accounts very clearly: at a usage fee of three yuan per hour, each computer can bring an average income of 72 yuan per day, and the investment cost can be recovered in less than three months.

Even if the number of customers decreases at night, the payback period is no more than four months, and every penny after four months is net profit. Excluding electricity expenses, each computer can generate more than 10 yuan in profit each year, and computers can create nearly yuan in annual income. In China in the s, an annual income of yuan was definitely considered a millionaire.

Ye Chuan felt deeply that no matter when, smart people would always find opportunities. If he was not a time traveler and did not have those advanced concepts, he would probably be drowned in the crowd.

If Ye Chuan had not taken the risk and invested everything he had in the Internet cafe business, he might not have had the courage and determination. Because in the 1990s, most people had limited vision and it was difficult to foresee that a computer costing tens of thousands of yuan would become a must-have for every family, not to mention that China and even the world would enter the Internet age in a few years.

Even the most far-sighted people could not have foreseen that life in the future would be inseparable from the Internet, from shopping, taking taxis, booking tickets, reading, and even paying utility bills and buying groceries.

In the future, the Internet will become dominant and this industry will produce countless leaders.

Until 94, Ye Chuan reorganized the group, and the external Tino Group took control of Huade and Feifan, becoming a super capital body that controlled the two major groups and Tino Trust, which was rare in the world. Many domestic and foreign companies held by Huade and Feifan were also incorporated into the territory of Tino Group. And those big guys who will emerge in the following years are still running for funds, and many future large groups are still in the stage of small manual workshops. Ye Chuan has taken a step ahead and merged the two giant companies into one, and no one can shake his position. And Real Estate Co., Ltd. is still operating independently and is not included in any group.

After entering 1994, China's economy developed rapidly, and the appearance of major cities and people's lives changed with each passing day. The kitchen appliance branch of Huade Electric Appliance developed particularly rapidly.

With the improvement of people's living standards, although large household appliances such as TVs are popular among the public, the demand for small household appliances is more widespread. Ordinary families usually use TVs for seven to eight years after purchasing them, and more and more small kitchen appliances have entered ordinary households due to their low prices and convenient use. Electric rice cookers, electric kettles, and meat grinders are almost a must-have for every family. Families who pay attention to the quality of life will also purchase soybean milk machines, induction cookers, juicers, etc.

To the surprise of Ye Chuan and the management, the sales of the kitchen appliance branch once exceeded the sales of large household appliances. The company continues to increase its R&D investment and is committed to product iteration and upgrading. It is expected that as people's quality of life continues to improve, more types of small kitchen appliances will appear on the market.

However, the large home appliance division is at a disadvantage because it does not manufacture televisions. Currently, televisions and refrigerators are the best-selling large electronic products, and most consumers tend to buy both appliances at the same time, which has a certain impact on Huade Electric, which focuses on small kitchen appliances.

The LCD TV developed by Huade has been successfully developed and performed well in the testing phase. Faced with this achievement, the group's senior management proposed to officially launch it to the market, but Ye Chuan expressed concerns and believed that the time was not yet ripe for the launch. He foresaw that if the LCD TV was launched, it would quickly take the top spot in the same type of products as expected. This may not be a positive situation - it will cause many TV manufacturers to encounter crises and make the already poorly managed state-owned enterprises even more difficult.

Taking into account these potential negative impacts and the groups that might be offended, Ye Chuan decided to temporarily avoid entering the television market, despite giving up huge potential profits, to leave room for state-owned enterprises to adjust.

At the same time, the clothing brand Huajinji is also experiencing the pain of transformation. The factory no longer produces clothing that only focuses on style and not quality, but turns to fashionable design. Due to the poor image of its products in the past and the lack of high-end feeling in the minds of consumers, even young people prefer brands with better quality, or consumers who prefer sports style prefer Kicks, Nike and Adidas. Huajinji's transformation has indeed had a certain impact on its sales. Faced with new consumption trends and social changes, after careful consideration, Ye Chuan and Lou Xiao'e jointly formulated a new strategic direction for Huajinji.

Today, Huawu has become a member of the mid-to-high-end clothing brands, while Angela represents the brand status of high-end custom clothing.

Huajinji's transformation path aims to become a fashion brand second only to Huawu. Its new goal is to focus on simple and fashionable styles and no longer design clothes with excessive decorations. This decision brings both opportunities and challenges.

One of the challenges is the loss of a part of the low-end market, especially affecting young people with limited budgets but pursuing fashion, who may turn to the wholesale market where they can negotiate prices.

However, Ye Chuan is not worried about this. It is expected that within a few years, almost all wholesale markets and clothing markets will be phased out, and people will return to shopping malls.

Even so, Huajinji's position as one of China's largest clothing manufacturers in terms of scale, shipment volume and sales has not changed.

After the transformation, Lou Xiao'e invested heavily and opened more than a thousand brand franchise stores across the country almost simultaneously. For a time, Huajinji stores could be seen in every street and alley, and this brand image gradually changed the traditional concept of consumers.

This transformation also caused trouble for some clothing wholesalers. Since Huajinji adopted a boutique and franchise strategy and all its stores were directly operated, these wholesalers had to turn to other brands for cooperation.

However, this series of actions also indirectly saved some clothing brands that were barely surviving.

end

In the 1994 year,

Wal-Mart has opened more than 30 chain stores in China, including two in Beijing, located in the basement of Future Department Store, and the remaining 28 are scattered in 21 other cities.

The number of customers Wal-Mart attracts every day and the sales records it creates are staggering.

Louis, the head of Wal-Mart Group in China, was very troubled.

The group's management failed to anticipate such amazing performance in the Chinese market, resulting in the loss of half of the market share. In particular, the original contract signed with the Huade Group now seems to be almost the biggest shame in the history of the Walmart Group.

According to the agreement, Huade Group obtained a 43% stake at a very small cost.

The two parties agreed to share risks and make a series of arrangements, with Wal-Mart Group responsible for the overall operation of the supermarket, including the selection of all suppliers, while Huade Group's tasks focused on providing site selection and employee training.

Seeing the current profits, Ye Chuan is certainly unwilling to buy back these shares at a 100% premium, which is tantamount to giving a gold mine to others.

Louis felt helpless, but since he had signed a legally binding agreement, he had no choice.

Fortunately, the agreement is limited to Wal-Mart supermarkets and does not involve Sam's Club.

Therefore, Louis tried to introduce five Sam's Club stores in China at the same time, but the actual effect was not good.

Except for the membership stores in Beijing and Shanghai that were profitable, the other three stores suffered losses in the first year.

Obviously, the annual membership fee of 69 yuan does not seem to be widely accepted by consumers in China.

They think I come here to buy things just to give you face, but you still charge me an entrance fee? Who gave you the courage to do this?

Louis had no choice but to offer 1000 one-yuan membership cards during the opening promotion in order to barely attract some customers.

However, the business model of Sugimu obviously does not work in China.

Bulk shopping is not accepted by the public. Everyone has long been accustomed to going to the vegetable market to buy vegetables every day, and no one is willing to hoard food for a week or even longer.

At that time, the capacity of the refrigerator at home was very small, and there was no place to store all the things we bought, such as fir. We couldn't buy a big refrigerator just for fir, right?

Louis wanted to temporarily change the management of Shanmu, but was rejected by Ye Chuan. According to the rules, you can manage Shanmu however you want.

However, if you want to change Shanmu’s business strategy and turn it into the second Wal-Mart, that is absolutely impossible.

The Womar Group should not think of taking advantage of the Huade Group by playing word games. This was clearly written when the agreement was signed.

The supermarkets opened by the Wal-Mart Group in China can only be called Wal-Mart, and Shanmu must maintain the same business philosophy as **.

Seeing that various methods didn't work, Louis could only bite the bullet and help Ye Chuan make money honestly.

This incident was often ridiculed in the European supermarkets.

After seeing the success of Wal-Mart supermarkets in China, Mart also wanted to enter the Chinese market and get a piece of the pie.

But what shocked them was that they seemed to encounter resistance in their attempt to enter the Chinese market.

Especially in Beijing, there were many problems in both the approval process and supplier negotiations. It would be fine if the approval was slow, as Jiafu could start construction during the waiting period.

But site selection became a big problem.

Some locations already have mature stores, while others are not rented or sold to the public. Jiafu hopes to cooperate with Huade Department Store, but the other party is not willing to negotiate with them.

The supplier issue is more complicated. Many of the brands we are interested in said that they have their own market protection mechanisms and cannot cooperate with Jiafu Group.

The country's largest kitchen appliance manufacturer, Huade Group, didn't even give them a chance to talk.

However, Jiafu had no choice but to turn to the Huade Group because Huade's kitchen appliance brand accounted for 90% of the Chinese market.

If the Huade Group does not cooperate, Jiafu will not be able to sell kitchen appliances.

There are also some brands and manufacturers that do not have market protection mechanisms, but their cooperation with the Walmart Group has overwhelmed them. Their production capacity cannot keep up with market demand, so they can no longer cooperate with Jiafu.