After signing the contract, Chen Dongcheng hosted a banquet for Cai Hongliang and the others, and the guests and host had a great time at the wine table.
After Cai Hongliang and others sold their shares, they achieved financial freedom.
What they do after that has nothing to do with Chen Dongcheng.
Existing employees and supply chain systems must be retained.
This was agreed upon when signing the contract.
Cai Hongliang looks rich and can make a fortune from scratch, so his abilities are certainly not weak.
"Mr. Chen, thank you for showing up, otherwise it would be difficult for us to escape."
Cai Hongliang felt a little emotional. Compared with Chen Dongcheng's acquisition plan, I miss you so much and it's not worth mentioning.
I really miss your proposal to acquire additional shares. These shares still have a five-year lifting period.
I wonder how your stock price will drop in the future.
I almost agreed to your offer before, but that was because I had no choice.
Now that there is a financial backer with cash, Cai Hongliang and the others would be stupid not to embrace thicker thighs.
It's just a bit surprising that Chen Dongcheng didn't ask them to continue to be in charge of the company.
According to the acquisition plan of I Miss You, Cai Hongliang and Qiu Haoqun need to continue to run the company for them, and they must also sign a gambling agreement to help I Miss You stabilize their stock price.
Chen Dongcheng shook his head and said: "The snack industry has a bright future, but it is being squeezed too hard by e-commerce platforms."
"Yes, this is also what I hate the most. Since we completely abandoned offline stores, online traffic costs have been rising steadily. Until last year, they completely exceeded our limit."
Cai Hongliang said in an angry tone: "Take 2014 as an example, our annual order volume was approximately 6.87 million orders, and the average customer price was 89 yuan/order.
The cost of raw materials, purchase price, etc. is about 68.56 yuan/order, and our gross profit is only about 22.96%.
Of the only 20.43 yuan in gross profit left per order, the platform will take away 4.24 yuan in promotion fees, 2.24 yuan in commissions, and 6 yuan per order in express delivery fees.
If you include employee salaries, management, rent, etc., the cost is 8.97 yuan/order.
This is equivalent to a loss of 1.02 yuan for every order sold, which ultimately led to our loss of more than 6 million yuan that year."
Others are envious of their Double Eleven sales, but only Cai Hongliang and the others know the hard work behind it.
The same is true for other companies. The gross profit of making snacks such as nuts is not high, and the platform traffic costs are getting more and more expensive.
If they don't buy it, they will definitely die, forcing them to grit their teeth and hold on.
After persisting until now, Cai Hongliang is also a little tired.
You might as well sell Baicaowei as soon as possible while the market is still good, so that Baicaowei's market value will plummet and you won't be able to find a buyer.
Baicaowei was founded by Cai Hongliang, so his feelings are naturally deep.
However, Cai Hongliang prefers real money to the Baicaowei brand.
…
On February 1st, Baicaowei officially announced the transaction information.
Cao Cao Group acquired 100% of the equity of Hangzhou Holmes Food Co., Ltd. with an all-cash payment of 850 million, and has received approval from the China Securities Regulatory Commission.
Hangzhou Holmes Food Co., Ltd. is the real holding company of Baicaowei.
When the news came out, the industry was in an uproar.
Especially Three Squirrels and Bestore, which are both casual snack e-commerce companies, felt that a storm was coming.
The name of Cao Cao's clan is too loud in the business world.
When everyone mentions it, they can't help but give a thumbs up. It is a company with strong financial resources.
When a new boss takes office, the outside world is most concerned about Baicaowei's strategy.
In the past, Baicaowei completely abandoned the offline model.
The purely online model has proven undesirable, forcing Three Squirrels and Bestore to open offline stores.
Only Baicaowei has been struggling online, which has caused the gap between them and the other two companies to become wider and wider.
At a time when people at Baicaowei are panicking, the new senior management team has officially taken office.
The think tank had already identified a new management team before the acquisition was completed, and the business handover was smooth.
Cai Hongliang made his official statement for the first time: "I am very grateful to the Cao Cao Group for its love. Selling Baicao Wei this time is a very painful decision for me. I sincerely wish Baicao Wei will develop more and more in the big family of Cao Cao."
The better.”
Some reporters went to Cao Cao's Century Building, but could not interview any important figures at all.
At most there is some rumors, this is decided directly by the top management, other subsidiaries are completely unaware of this news.
As for who the top executives are, everyone will keep silent. This is not something that a group of reporters should know.
Chen Dongcheng took the time to look at the data.
Number of steps: 13.04 million
Property: 49.41 million
Experience value: 7.904/10 billion
The weekly consumption rebates plus the number of steps are enough for Chen Dongcheng to pay off two loans in succession.
Just one amount of 200 million, and one amount of 220 million.
Originally, Zhu Tao and Gu Shouyi planned to extend the two loans to Chen Dongcheng, but Chen Dongcheng politely refused.
The total amount is only over 400 million, so Chen Dongcheng is not that short of money.
Chen Dongcheng spent 1.3 billion on the latest batch of ICBC loans.
In addition to giving RMB 500 million to Cao Cao Logistics and acquiring the financial license of Jifuruitong for RMB 800 million, the rest of the money is kept in the bank account.
Loan consumption does not count as experience points, which really makes Chen Dongcheng a little helpless.
…
Hangzhou, Xiasha.
Baicaowei Headquarters.
The original Baicaowei employees began to get used to the drastic reforms of the newly appointed senior management team.
At the same time, they also have some expectations to join the Cao Cao Group.
Compared with those Cao Cao-related companies, their valuation is not worth mentioning.
Suddenly there was a sound of footsteps at the door, and an employee looked up.
The newly appointed general manager, Zhou Qiang, was talking to a handsome young man with a smile on his face.
But judging from his appearance, he should be a big shot sent by the head office.
"Director Chen, this is the office of our current headquarters. We currently have more than two hundred employees.
There is a 10,000-square-meter production line factory and a 10,000-square-meter storage and delivery warehouse in Xiaoshan."
Zhou Qiang introduces people while walking. If he encounters Chen Dongcheng and stops, he will patiently answer questions in a timely manner.
What are the benefits of joining a snack company like Baicaowei?
Chen Dongcheng noticed that in the tea room, the walls were covered with all kinds of nut snacks.
It can be said that Baicaowei should be one of the favorite companies for foodies.
Chen Dongcheng pointed at the snacks. Zhou Qiang picked up a bag with understanding, tore it open and took a few bites: "Don't worry, our employees eat the snacks made by Baicaowei all day long."
With that said, Zhou Qiang said a few words to a male employee and opened the male employee's drawer.
It was stuffed full of various Baicao-flavored products.
The male employee was a little embarrassed, scratched his head and said, "My girlfriend loves snacks. Generally, I take the snacks given out by the company during afternoon tea to my girlfriend."
Chen Dongcheng smiled and patted the male employee on the shoulder: "You are free to do with the benefits the company gives you."
"Let me introduce myself, I am Chen Dongcheng. I just purchased Baicaowei not long ago. I am very happy to meet you here."
The employees were immediately confused. Is the new boss so young?
Chen Dongcheng continued: "In my opinion, Baicaowei's share in the snack market still has a lot of room for improvement.
In the future, we will reopen offline stores, including no less than 100 flagship stores of more than 300 square meters.
All adopt the headquarters direct operation model to reshape the brand image of Baicaowei."
There are one hundred flagship stores, each with an area of more than 300 square meters.
Chen Dongcheng said it in an understatement, which means that Baicaowei is finally going to make a big move.
Zhou Qiang's eyes were filled with excitement. He had taken over Baicaowei and analyzed Baicaowei's data over the years.
The purely online sales model has begun to weaken.
As both Three Squirrels and BESTORE are developing offline, if Baicaowei continues to struggle online, it is likely to be unable to make ends meet.
“In addition to opening offline flagship stores, we also need to increase marketing investment.
I plan to spend 20 million to implant it in ten TV series.
The marketing team is responsible for selecting TV series that are suitable for placement and increasing the popularity of Baicaowei."
As soon as Chen Dongcheng finished speaking, Baicaowei's chief marketing officer quickly raised his hand.
"Don't worry, we will screen the suitable list as quickly as possible and report it to you."
Chen Dongcheng nodded with satisfaction and continued: "I heard from Mr. Zhou before that we have invested in a headquarters base in Dajiangdong and this project will be launched as soon as possible.
The necessary funds will be taken from Baicaowei's turnover first, and if there is insufficient money, I will make up for it."
Zhou Qiang answered: "I have been in meetings these days to study the matter of starting construction.
It is expected that the first phase of the factory will be officially put into use in April next year, and we will also have a new office location."
The employees listened to the news that made their hearts swell.
Open a hundred flagship stores, build a headquarters base, and increase marketing investment...
Some employees bravely asked: "Can we get a salary increase?"
"The specific salary structure needs to be formulated by the Human Resources Department, but I promise that everyone will be satisfied with this year's year-end bonus."
Chen Dongcheng will not meddle in the affairs of the subsidiary at will, but it is okay to give more year-end bonuses to employees.
I had a brief chat with the employees in the company, and the employees were very understanding and did not say anything bad about the company.
Who knows if Zhou Qiang will give them some shoes after Chen Dongcheng leaves.
Back in the office, Zhou Qianghui reported: "Director Chen, I have analyzed the audit reports of Baicaowei for the past two years. Among them, nut products are the main culprit of Baicaowei's losses."
"Sales of snack food e-commerce companies, represented by nuts and roasted seeds and nuts, often account for about 70% of the whole year in the first three months."
“Because the sales peak period is too concentrated in the past year, competition in the entire industry is extremely fierce.”
"Baicaowei purchased traffic at high prices and engaged in a price war, resulting in serious losses."
“So, I think we should gradually reduce the proportion of nuts and roasted seeds and nuts.
Only by gradually expanding high-profit product lines such as dried fruits, preserved meats, and gift boxes can we turn losses into profits."
Chen Dongcheng recruited Zhou Qiang in the hope of leading Baicaowei out of its predicament.
"Nowadays, the cost of acquiring customers online is indeed getting higher and higher, and it is not even as high as the gross profit of offline stores."
"As for the location and decoration of the flagship store, I believe you can handle it well, and my people will cooperate with you."
Zhou Qiang nodded quickly: "Don't worry, I will definitely focus on building offline stores. However, the flagship store is too large, so the pressure on rent and labor costs may be greater."
Chen Dongcheng explained: "Offline stores are not just about increasing gross profit, but also promoting Baicaowei's brand image.
No surprise, we will eventually reach the stage of listing."
Zhou Qiang solemnly promised: "I will pay close attention to the decoration and the staff training of the flagship store."
"You should know how much you rely on Taobao and JD.com online."
Chen Dongcheng asked casually: "Have you heard of Pinduoduo?"
"Are you talking about that platform where bargains are everywhere?"
"That's the company I invested in."
Zhou Qiang was a little embarrassed and apologized quickly: "I didn't mean that. Baicaowei never considered opening a store on Pinduoduo before."
"It didn't happen before, but it doesn't mean it won't happen in the future. Pinduoduo can give you more traffic."
Zhou Qiang's eyes lit up and he was a little excited: "Then I will contact Pinduoduo later and open our flagship store on their platform."
"Well, don't worry in the early stage. When Pinduoduo grows stronger, Ahri will suppress you sooner or later."
Zhou Qiang smiled: "We can deny it and sell it privately on Pinduoduo, and Ahri won't do anything to us."
"This is Pinduoduo's phone number, Mr. Zhuang. You can contact her then. After she understands our relationship, she will give you more traffic."
Zhou Qiang solemnly took the business card and looked at the content: "Pinduoduo CEO, Zhuang Manting."
"I will definitely take time to visit Mr. Zhuang and explore the matter of opening a store on Pinduoduo."
This is not because of Chen Dongcheng's face, but because Baicaowei really has this demand.
There are three main online sales platforms for Baicaowei, namely Tmall, JD.com, and Yihaodian.
Among them, Store No. 1 has gone into decline. It was once a leader in the Internet era and ended up being sold off.
In the past, Baicaowei often cooperated with the operation team of No. 1 store.
Various promotional programs once designed are now history.
Pinduoduo’s traffic is very impressive. Pinduoduo has developed crazily by absorbing nutrients from WeChat. Even though it has suffered some notoriety, it does not affect the fact that it is extremely popular.
Many brands on Taobao will choose Pinduoduo to clear their inventory.
Consumers get benefits, merchants reduce pressure, and Pinduoduo gains more users.
What attracts Zhou Qiang most is Pinduoduo’s commission-free model, and other traffic costs are more than double that of Taobao.
Even for express delivery, Pinduoduo now has its own logistics and distribution system.
Caocao Logistics is responsible for warehousing and transportation, and Caocao Suda is responsible for intra-city distribution.
With the division of labor and cooperation between the two parties, in the field of logistics, Pinduoduo does not need to worry about being clamped down by Ali's Rookie Alliance.
And as a sister company, Pinduoduo will definitely be able to give some discounts on promotion fees.
In addition to the waived commissions and discounted shipping costs...
If the same product is sold on Pinduoduo, Baicaowei can earn 5 yuan more per order.
Even if there are only 1 million orders on Pinduoduo, they can earn 5 million more than on JD.com and Tmall.
The sales price can even be cheaper than JD.com and Taobao, which is tempting just thinking about it.
It’s just that playing this way can easily cause dissatisfaction with Taobao and JD.com.
For the same product, Pinduoduo is cheaper than Tmall. How do you let consumers choose?