"Director Wu, because he adheres to the group's guiding principles, adheres to the direct operation policy, and refuses to join the franchise, the expansion speed of [Xiao Xianrou] will be relatively slow. However, although we are moving slowly, we are moving steadily." Su Shixian
It has been tempered over the years, and you can tell from this reply that you have done your homework.
"Currently, [Xiao Xianrou] has entered more than 50 cities across the country, with a total number of stores reaching 3,200. The average daily store turnover has reached 15,000 yuan. More than 90% of the stores are profitable. Among them, the annual sales of crucian carp are 650,000 yuan.
10,000 pieces; 2.6 million heads of pork sold; the annual sales volume of a single fruit SKU exceeds 1 ton; the annual sales of grain eggs are 350 million pieces, and there are more than a dozen other SKUs with sales figures of millions. The annual revenue exceeds 17.2 billion yuan." Su Shixian
He sounded quite proud.
Su Shixian also has the capital to be proud of.
[Xiao Xianrou] is not the first to enter the field of community fresh food stores.
As early as 2013, there was a fresh food store in Pengcheng. With the slogan "No overnight meat sold", it gained a reputation among consumers and developed its status.
This community fresh food brand store adopts the [direct franchise] business model. It controls planting and breeding from the upstream, strictly controls the quality, and then exports standard stores downstream to join, forming a [breeding farm-processing base-supply]
Chain - terminal franchise store - consumer] flow link, forming a dimensionality reduction blow to traditional fresh food stores.
In addition, in terms of investment in store construction, this community fresh food brand has passed on the cost to its franchisees.
It is engaged in B2B2C business. Franchise stores not only expand its market coverage, but also stabilize the shipments from the sources it controls. Highly market-oriented planned fresh food planting and breeding processing, quality, shipments, and affordable prices.
All aspects can be grasped with one hand.
As more and more stores are opened, the profit of a single store will become better and better, and the losses will become smaller and smaller. Until the number of stores in a single city group reaches a certain scale, the supply chain of source planting and breeding will become a strong backing.
Be able to control higher bargaining power for products.
This is an operating model that is heavy on assets on the front end and light on assets on the back end!
Because this model requires low investment, is highly replicable, and has a bright future, this community fresh food brand is quite popular with capital, has received a lot of investment, and has also received many franchise applications.
Because this community fresh food brand has developed rapidly. In just a few years, the number of stores nationwide has expanded to 4,800, known as the N0.1 in the community fresh food store track!
For a while, even [Super Group]’s [Little Fresh Meats] couldn’t compare.
This community fresh food brand is also very ambitious. After it has achieved scale, it wants to hit the IPO and go public for financing.
But after many twists and turns, several IPOs failed, and the development speed also stagnated.
At this time, the contradictions hidden under the original prosperity also broke out.
First, news broke out in some cities that franchisees lost all their money and could not make any money, and then news broke out that the community fresh food brand had withdrawn from operations in the imperial capital.
I was in a state of embarrassment for a while.
But [Chaoqun Group]’s [Little Fresh Meat] is different.
On the surface, [Xiao Xianrou] is not much different from other community fresh food brands. In fact, after in-depth research, you will find that the difference, oh, no, I should say the difference is huge.
Because [Chaoqun Group] is a matrix and a development model for the entire industry chain.
Whether it is the supply chain of source planting and breeding, the transportation cold chain, or the terminal retail chain, they are all involved and developed throughout the process.
What competes with [Xiao Xianrou] is not a store, but a system, a well-trained elite army.
This advantage in the system itself has made [Xiao Xianrou]'s competitors despair. What's even more exaggerated is that the quality of many of [Xiao Xianrou]'s products is unique and outperforms its competitors.
This has led to other fresh food brands losing ground in the competition with [Xiao Xianrou].
If two community fresh food stores are opened in the same community, even if the opponent's location is better, it is a prime store, while the [Little Fresh Meat] store is located in a remote and unpopular location.
But as long as the business lasts longer, consumers will have mouths and can distinguish between good and bad, and they will naturally vote with their feet and become loyal customers of [Little Fresh Meat].
Therefore, [Xiao Xianrou]’s business is getting better and better, while its competitors are getting worse and worse.
Eventually, few competitors from other brands dared to be in the same competitive area as [Xiao Xianrou], so they all settled for the next best thing and looked for other markets.
That is to say, [Xiao Xianrou] is positioned in the mid-to-high-end field, and the prices of its store products are 15% to 35% higher than those of other brand stores, and the prices can even reach 100%.
Fifty points.
Only other competitors have room to survive.
Originally, the comprehensive cost of "Xiao Xian Rou" was not comparable to that of several competitors, and the selling price of "Xiao Xian Rou" was higher than them, so the profit margin in the middle was directly ahead of theirs, which made those competitors
The opponent is envious and jealous, but there is nothing he can do.
In the field of community fresh food, [Little Fresh Pork] is the real uncrowned king.
………………………………………………………………………………………………………………………………
…
"It's okay." Wu Siyuan commented on Su Shixian's proud achievements.
Su Shixian suddenly felt a little confused.
Wu Siyuan did not take Su Shixian's face into account, but said directly, "The number of [Xiao Xianrou] stores is still a bit small."
"Mr. Su, what is the proportion of pork in the category structure of [Little Fresh Pork]?" Wu Siyuan asked.
"...Um..." Su Shixian thought for a moment before giving an uncertain figure, "Probably around 40%."
In this regard, Su Shixian is not as good as Guan Xueliang.
Wu Siyuan shook his head, and with a thought, [Four-Armed King Kong] calculated an accurate value from the massive data and transmitted it to Wu Siyuan's mind, "To be precise, it is 42.3%.
Eight."
"Yes." Su Shixian said angrily with an ugly face.
However, Wu Siyuan didn't mean to blame him. After all, Su Shixian was not in charge of the brand "Little Fresh Meats". Executives at his level usually considered strategic issues more.
The fact that Su Shixian knows this data is enough to prove that he is competent.
After all, Guan Xueliang is different.
Wu Siyuan paused and said, "Then do you know how much pork consumption [Xiao Xianrou] consumes every year?"
"I know this. Mr. Wu, [Xiao Xianrou] sold 215,800 tons of pork last year." Su Shixian quickly replied.
This data is almost the same as the data obtained by Wu Siyuan.
Wu Siyuan glanced at Su Shixian unexpectedly, then nodded, hummed, and turned to ask Guan Xuelia, "Mr. Guan, how much pork did our group put on the market last year?"
Su Shixian was stunned for a moment, thought for a moment, and then replied, "Director Wu, last year our agriculture and animal husbandry division sold 705,500 tons of pork. Among them, 225,500 tons of pork (part of the pork went bad and was disposed of) was sold at 9.5
Yuan/jin (pork prices have been falling in the first few months of 2018, with the lowest falling below 6 yuan/jin. The price of 9.5 yuan/jin was driven up by pig prices in the months when African swine fever broke out)
The average price was sold to the [Small Fresh Meat] Company under the charge of Mr. Guan, and the remaining 480,000 tons of pork were sold to external parties at an average price of 11.3 yuan/jin."
"If we do not consider other hidden costs and transportation costs, the sale of these two pieces of pork will bring a total gross profit of 9.06 billion yuan to the Agriculture and Animal Husbandry Division." Guan Xuelie said expressionlessly.
Of course, if other costs are to be calculated, the Agriculture and Animal Husbandry Division not only made no profit last year, but also lost money!
Su Shixian clicked his tongue after hearing this. He was surprised by Guan Xuelie's familiarity with various data, and was also shocked by the high profit of raising pigs, although his gross profit from selling pigs was not worse than others!
At this time, Wu Siyuan turned his head, looked at Su Shixian, and said, "Mr. Su, did you hear that?"
"Um. Oh! I heard it, Director Wu." Su Shixian was still a little confused.
"Do you know where the key issue is?" Wu Siyuan asked.
Su Shixian frowned and thought for a moment, then shook his head with a wry smile.
"It depends on the quantity. The number of [Xiao Xianrou] stores is relatively too small. It can't even sell one-third of the group's one-third pork production." Wu Siyuan pointed out directly, "In the final analysis, the reason is still the number of stores.
Few, coverage is small."
"Mr. Su, I predict that in a few months, maybe two to three months, maybe three to five months, and no more than eight months at the latest, the price of pork will skyrocket. How can we use this time to make the most of it?"
Possibly increasing the number of stores of [Little Fresh Meat] and expanding the coverage of [Little Fresh Meat], this is an issue you must consider." Wu Siyuan said in a solemn tone.
"Yes, Director Wu! I will go all out!" Su Shixian tensed up and said.
"What are you going to do?" Wu Siyuan asked.
"Director Wu, our department has already made relevant filings and has several new store location plans. So you can rest assured that the terminal retail division will not delay the group's retreat and will work with other brother departments to make a good start this time.
Battle!" Su Shixian said earnestly, with a look of assurance. When the conversation changed, Su Shixian's expression changed again, and then said, "However, Mr. Wu, store expansion requires funds, and our department's budget is insufficient, so the group headquarters is needed.
Approval of financial support."
Because it is a directly operated store, [Xiao Xianrou] stores do not need to pay any advertising fees, franchise fees, and deposits.
However, because the store must be close to mid-to-high-end communities, store rent and installation fees are expensive. On average, the cost of opening a new [Little Fresh Meat] store ranges from 120,000 yuan to 450,000 yuan.
Looking at Wu Siyuan's situation, hundreds of stores will definitely not be able to satisfy his appetite, but if there are thousands or thousands of stores, this will cost at least hundreds of millions, billions, or billions of yuan. Where can Su Shixian find this money at this time!
The money earned by the terminal retail division last year was basically used to support the expansion of several retail brands, and there is not much left!
When Wu Siyuan heard this, he spread his hands and said bluntly, "The group has no money!"
"..." Su Shixian.
"..." Guan Xuelie.
Neither Su Shixian nor Guan Xuelie believed it.
[Chaoqun Group] Such a profitable company actually says it has no money?
They really don’t believe it.
But it’s actually true.
In the past two years, [Chaoqun Group] has been investing heavily in foreign countries. It has spent tens of billions of yuan on [pig farms] alone, billions of yuan on the construction of cold storage, and then spent another one hundred yuan on the acquisition of [Superman Takeout].
100 million U.S. dollars, the subsidy war with [Lituan Takeaway] and [Eat What?] has burned nearly 10 billion U.S. dollars.
This does not mention [Chaoqun Group]’s investment in the medical field. Several new drugs have entered clinical phase II and clinical phase III. These will cost money, a lot of money.
In addition, the environmental protection department is very expensive to burn money. An environmental treatment plant requires hundreds of millions or even hundreds of millions of yuan in investment.
[Chaoqun Group] Almost all investment fields are asset-heavy fields, and the financial burden is heavy.
That is to say, the [Audition] project can continue to make money, so that [Chaoqun Group]'s cash flow is not broken, and there is still surplus funds in the group's account.
But next, Wu Siyuan has new investment directions to use these funds, so they cannot be used for the expansion of [Xiao Xianrou].
So Wu Siyuan spread his hands and shattered Su Shixian's hopes with one sentence.
Su Shixian looked stunned, "Director Wu, do we want to continue borrowing from the bank?"
[Chaoqun Group] is also a weirdo. It is not keen on borrowing for development. That is, it borrowed a large amount of money from the bank last year to invest in [Pig Farm], and then there are no big loans. The overall debt ratio is very low.
It is a high-quality asset that many people covet.
Many people, including those at the government level, are encouraging [Chaoqun Group] to go public.
Even people within [Chaoqun Group] hope that the group can be listed in the hope of obtaining option income and direct wealth freedom.
Of course, Wu Siyuan has never faced these overt and covert noises seriously.
Back to business.
Facing Su Shixian's inquiry, Wu Siyuan shook his head directly and said, "We don't borrow money from banks."
"I don't like owing money to others!"
"But... I am bound to win the expansion of [Little Fresh Meat]!"
"So, I decided to open the franchise of [Little Fresh Meat]!" Wu Siyuan said.
"Director Wu, franchise? Do you want to open the franchise?" Su Shixian was stunned for a moment.
"Dr. Wu, hasn't our group always been doing direct sales? If you join the franchise, if you don't manage it well, it may cause problems with the quality control of the store, which will affect our company's overall reputation." Guan Xuelie also intervened. p>
"I know. That's why I'm talking about franchising!" Wu Siyuan waved his hand to signal them to calm down, and then explained, "Franchising means allowing investors to provide funds for store construction, and [Little Fresh Meat]
The brand, management, and personnel are exported here."
"In other words, the store belongs to the investor and the profit belongs to him, but the store's brand, management and personnel all belong to our group."
“In this way, we don’t have to worry about the franchise store losing control, and we can also solve the funding problem.”