Rise of the Reborn Giants
Chapter 1254 Home Appliances Going to the Countryside
Ye Yun talked freely.
"The entire south has a population of more than 800 million, of which the number of real urban residents is less than 300 million!"
"The remaining 500 million or so are all rural residents."
"Although these rural residents are not as good as urban residents in terms of individual consumption."
“But they focus on quantity!”
"Your Leo Group is indeed well-known among domestic home appliance brands. But if you want to compete with those international big names, it will be difficult for you to gain any advantage."
"Offline stores are only at the county level at most. It's amazing that there are one or two specialty stores in some particularly developed towns."
"But have you ever thought about why not attack the sinking market again and take a walk?"
Ye Yun looked at Wang Feng.
Wang Feng was slightly startled.
“Sinking market?”
"Mr. Ye, do you mean entering towns and rural areas?"
"But the cost is too high! Any specialty store needs money for rent, water, electricity, personnel, etc., and it is already expensive to open up to the county level. This is the same whether it is Remy Group or those international big brands.
"
Ye Yun shook his head.
"I'm not asking you to open a specialty store in towns or rural areas, but I'm asking you to open up the market in this area!"
“Promote the delivery of home appliances to the countryside!”
Ye Yun is very clear that the sinking market will gradually become a battleground for businesses.
For the home furnishing industry, it is not as simple as how many home appliances are sold, but to expand domestic demand and develop new target users!
Wang Feng believes that there are unlikely to be 5 million households in the entire South with domestic demand in a year. But in fact, if the sinking market can be conquered, even if a single sinking market household cannot reach 100,000 yuan in home appliance purchases, refrigerators,
Air conditioners, washing machines, TVs and all these things add up to a price of 20,000 to 30,000 yuan!
When Wang Feng heard what Ye Yun said about home appliances going to the countryside, he immediately smiled bitterly.
"Mr. Ye, things are not as simple as you think. The real problem in sending home appliances to the countryside is not in the home appliances, but in the word "send to the countryside."
"The reason why we are unable to establish sales outlets in the lower market is not the product, nor is it the inability to afford store personnel and other costs."
“The biggest problem is transportation!”
Wang Feng smiled bitterly.
Although in the past few years, mature rural corridors have been established between villages and towns, making it easier for cars from every household to travel together.
But transportation costs are still a very big problem.
When you buy a home appliance, they are responsible for delivering it.
The transportation cost is already higher than the profit brought by the product itself.
Take a washing machine as an example. A washing machine that meets the needs of a township costs one thousand yuan and has a profit of two to three hundred yuan.
But it costs 200 to find a car and send it there. Plus installation fees and so on, the profit cannot even cover the cost!
The reason why the home appliances sent to the countryside that have been advocated several times before has been successful.
The reason was that the international market was experiencing a financial crisis at the time, which resulted in a large number of domestically produced home appliances being considered unsalable, with supply exceeding demand!
To put it in layman’s terms, the product itself cannot be exported and cannot find a market, so there is a large backlog in the warehouse!
At that time, in order to expand domestic demand, China announced subsidies for sending home appliances to the countryside.
For those home appliances sent to the countryside, an additional 13% subsidy will be provided!
But now there is no such subsidy. In other words, if they implement the rural plan, they will directly lose 13% of their profits!
Where does the profit come from?
Ye Yun shook his head.
"Mr. Wang, your thoughts haven't jumped out of that circle yet."
"A sufficient quantity of goods can completely offset the freight problem."
"Those excess products can be stored in warehouses. The real question is how much production capacity Leo Group has."
"I said it before, who said we should open stores in every village and town? Directly operate them ourselves?"
“You can definitely play the trick of joining the franchise!”
"We pull the goods over and have a special sales training system."
"Anyway, if you store home appliances for three to five months, there will be no problem and they won't break down."
"As long as the market can be opened, we don't have to worry, we will be able to sell it sooner or later."
Wang Feng frowned. To be honest, he was a little impressed by the blueprint drawn by Ye Yun.
That's right.
The biggest problem for villages and towns is insufficient quantity. As long as the quantity increases, freight will no longer be a problem.
It’s a loss to buy a washing machine for three hundred yuan, but if you can buy ten washing machines and ten refrigerators for three hundred yuan...
Then the transportation fee of 300 yuan will be infinitely compressed!
If you can really find franchisees in every village and town and establish a complete sales system, you will never lose money!
Seeing that Wang Feng was a little moved, Ye Yun continued to smile.
"And, Mr. Wang, don't forget..."
"My Yaoke Express is essentially a logistics industry."
"Those lines and channels have already had a complete system."
"Even if that franchise store is out of stock, it will be enough to transfer the goods from other places within one day."
"Even if it is not possible for a while, we will not be able to capture the urban market share from Lei Shujun and international big names."
"As long as it can seize the 500 million sinking market, Leo Group will be invincible!"
Ye Yun's words obviously convinced Wang Feng. He gritted his teeth and Wang Feng nodded.
"Okay Mr. Ye, I'll do it!"
"However, before officially implementing this matter, I would like to discuss it with you, Mr. Ye!"
"I plan to sell another 27% of the shares to Yaoke Group, and this time, I only want money!"
"I want 2 billion for 27% of the shares!"
"As long as you give me the money, I can implement this project immediately!"
After saying that, Wang Feng looked at Ye Yun with fiery eyes, as if he was worried that Ye Yun would not agree.
Ye Yun looked at Wang Feng, his eyes full of amusement.
This guy sold him 27% of the shares in one go, plus the previous 40%.
Counting the shares of Leo Group, Ye Yun personally owns more than 67%!
Exceeding 66.6% means that Ye Yun has absolute control over Leo Group!
However, the original shareholders of Wang Feng and Leo Group only accounted for 33% in total.
Even if they join forces, they can't violate any of Ye Yun's decisions.
Ye Yun is a swordsman, and they are fish and meat!
However, even so, they still made this decision.
Because of this, it means that they are completely bound to the Yaoke Group!
Bound together with Yaoke Group, the future of Leo Group will be infinitely bright!
Besides, after giving away so many shares, they didn’t get nothing, but got 2 billion in cash!
Even in the future, it is not impossible to completely crush Remi Group and become the leader in China's home appliance industry!
Wang Feng is not stupid, he is even very smart.
He saw with his own eyes that Ye Yun supported Zhao Zhuoya, a fat man from the west, and defeated one of the top 100 groups among the eight major groups in the Beishan Society, leaving everyone looking for teeth!
If it were anyone else, Wang Feng would certainly not have the guts to make such a huge gamble.
But if this person is Ye Yun, Wang Feng is willing to take a gamble!
Because he knew very well that it was impossible to defeat the Lei Shu Army on his own.
But Ye Yun definitely can!
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