My Fintech Empire

Netizens and viewers in the live broadcast room lamented that the boss is a boss and professional.

After listening to Fang Hong's overview, everyone understood why the agricultural product supermarket was like this. Obviously, without the high-level concept of the big boss, the agricultural product supermarket would never be able to achieve such an excellent experience today.

At the same time, it can also explain the height of Fang Hong’s structure through the values ​​​​of agricultural products merchants and supermarkets, and also make everyone like him even more.

At this time, Fang Hong said with a smile: "Someone asked what business secrets the success of agricultural products supermarkets relies on? What I want to say is that there is no secret, it is all true love."

There is no secret, it is all true love. It spread quickly from the live broadcast room and became a hot new word in the following days. It was imitated by netizens and can be embedded in various scenes for use.

Fang Hong’s live broadcast room is not just for melon-eating netizens, there are actually many investors, industry insiders, operators, and various bosses.

I have to say yes, and many operators are also inspired, because Fang Hong really has nothing to hide. What he said in the live broadcast room is what the agricultural products supermarket is doing, and he is not secretive, and even welcomes people from all walks of life. For research and exchange, agricultural product merchants and supermarkets are also very happy to provide their own experiences.

As it is said, there is no secret to the success of agricultural product supermarkets, it is all true love.

At this time, Fang Hong looked at the barrage in the live broadcast room and said: "I just saw a barrage passing by. It should be a boss, saying that from a business perspective, what did the agricultural products supermarket break through?"

Fang Hong nodded: "Well, that's a good question. Let me tell you the conclusion first. From a business point of view, what agricultural producers exceed is transaction costs."

Having said this, Fang Hong tilted his head and looked at the camera: "How do you say this? Transaction cost is a concept in economics, proposed by Coase, the Nobel Prize winner in economics. He said that transaction cost is actually transaction cost, which is the cost of completing each transaction. In the process of a transaction, the various costs related to the transaction incurred by both parties before and after the sale, including procurement, trust, negotiation, communication, as well as the sum of all time and money spent in the process.”

"So what are the transaction costs in the retail industry? They can be divided into two parts. One part is internal transaction costs, and the other part is external transaction costs. The laziness of employees will cause losses to the enterprise, as well as the internal management of the enterprise and the management of the business body. These are all internal costs. External transaction costs include financing, advertising, tax burdens, customer trust costs, supply chain trust costs, and social friction costs.”

"How do agricultural product supermarkets reduce costs? Improve employee quality, shape corporate culture, set up supervision through customer feedback mechanisms, thereby reducing management costs, rely on word-of-mouth instead of promotions, and significantly reduce advertising expenses. The service that exceeds expectations earns a high degree of trust from customers, the goodwill established wins support from the supply chain, and the agricultural product supermarket improves the image of the city and receives a series of support from government policies."

"Taking it all together, it actually reduces the total transaction cost of the enterprise. Agricultural products merchants and supermarkets use the simplest approach to care about customers like relatives and friends in a human society, thus winning a super mutual trust relationship with consumers. And this kind of mutual trust can make transaction costs very, very low.”

"This is the reason why agricultural producers have so much over-expenditure costs but low profit margins but are constantly reducing losses. They may even be able to turn losses into profits next year. In fact, agricultural producers that have been operating for more than a year have achieved profits very early. Therefore, the company has not achieved an overall turnaround because we are still making deep dives in the market and are still investing.”

As he spoke, Fang Hong turned to look at the manager of the agricultural products supermarket and asked, "What was the revenue of this supermarket last year?"

The supermarket manager immediately replied: "Our supermarket serves about 1.7 million people in the surrounding core urban areas, and last year's annual operating income reached tens of billions. In other words, each of the 1.7 million people we cover and serve came to our store last year. The consumption here is more than 5,800 yuan, and the other brother supermarkets are about the same."

Hearing this, Fang Hong said: "There are more than 9 million people in Xincheng. Based on the consumption scale of more than 5,000 yuan per person, Xincheng Agricultural Products Supermarket alone has an operating income of nearly 50 billion?"

The manager who responded immediately responded: "You have to ask Mr. Li for details. There should be no 50 billion, but there should be 40 billion."

Fang Hong nodded: "40 billion is pretty good. Multiplied by a net profit rate of 3 points, there was a net profit of 1.2 billion last year."

The viewers in the live broadcast room were very shocked. They did not expect that a new city could generate 40 billion yuan in revenue. They were also shocked by its net profit. They did not expect that it was only 1.2 billion yuan. There were even many comments saying that the net profit was a bit low.

Many investors, operators and bosses who were immersed in the crowd also secretly said that they have seen each other for a long time. This is the first time they have seen consumers who actually feel that there is less competition among sellers. Does this mean they want to make more money and raise the price?

See you soon!

This has once again made many operators and bosses realize that what Fang Hong said before about breaking down transaction costs is true. Agricultural products merchants and supermarkets have won a super mutual trust relationship with consumers, and this mutual trust has reduced transaction costs to a very low level.

At the same time, Fang Hong smiled when he saw these barrages passing by and said: "A net income of 40 billion yuan is still less than 1.2 billion yuan? It's quite a lot. Have you been paying attention to the stars' projects with hundreds of billions of dollars all day long? Plan, do you think 1.2 billion is a small amount of money?"

The audience in the live broadcast room suddenly became happy, and the barrage also became joyful. Many netizens said that although they earn several thousand yuan, since they followed K God, they increasingly feel that hundreds of millions or billions are worth it. Sprinkle some water.

Fang Hong still smiled and said: "Although the net profit margin is only 3 percentage points, turning losses into profits in the future will actually make a lot of money. There are now more than 400 supermarket branches in various cities across the country. Of course, Benqianqian like Xincheng Big cities with a population of 10,000 can be counted on one hand. Let us conservatively estimate that an agricultural product manufacturer serves a population of 500,000, and one person consumes 5,000 yuan per year. The annual turnover of 400 supermarkets is also running towards 1 trillion, 3 points The absolute net profit is 30 billion, which is an astronomical figure."

"I haven't read the annual report of the agricultural product supermarket, but based on current calculations, last year's turnover must have been in the trillions, and the net profit of more than 30 billion can only be higher or lower. There are several listed companies in the big A that can achieve net profits of tens of billions. ? Is this number still low?”

As soon as these words came out, the operators and bosses who were watching in the live broadcast room were once again shocked. They were shocked that Fang Hong was talking about a company's operating profit in front of countless people in the live broadcast room. Generally speaking, this kind of data is not easily released to the outside world, but Fang Hong just said it in such a chatty manner.

I was also shocked that the public did not have any hatred towards the rich, and participated in the interactive discussion with great interest, and even felt happy about it.

This makes many bosses feel incredible. Is sincerity really a must-win skill? Is it really like he said, there is no secret, it’s all true love? And it’s so powerful?

They were even more shocked that they never expected that people's food baskets could actually make such money, especially after achieving scale effect, even a net interest rate of 3 points can bring tens of billions of net profits.

You know, there is still a lot of room for agricultural product supermarkets to sink, and a discerning person can tell at a glance that Fang Hong wants to make agricultural product supermarkets cover all fourth-tier and above cities in the country. In other words, it may expand in the future. It won't be saturated until around 800 to 1,000 stores.

According to his estimation in the live broadcast room, the turnover will have to more than double by then, which is an annual turnover of 2.5 trillion yuan and an annual net profit of more than 70 billion yuan.

And it will be very stable, because food and vegetable baskets are absolute rigid needs, and other consumption can be reduced, but if you don’t eat one meal, you will go hungry. That means that the future layout of agricultural product supermarkets has been completed, and it will bring stability to it every year. The absolute net profit scale is more than 60 billion.

...(End of chapter)