The Birth of the Magic City's First Conglomerate

Turning thirty is an awkward age. Some people shine brightly and achieve glory at this age, while others find their lives a messy struggle.

Undoubtedly, Chen Pingsheng belonged to the latter....

Chapter 347 Reservoir

The times are changing rapidly.

From the mobile Internet era that began in 2010 to the short videos that are now so popular that they cannot be overshadowed.

It's only been a few years.

For Chen Pingsheng, he has been committed to planning traffic since a very early stage.

It can be said that wherever there is traffic, there is his business company.

Yao Anni’s current achievements are pretty good, at least she is quite satisfied with herself.

But for Chen Pingsheng, that's all.

During the bonus period, you can earn tens of millions every month, but once the bonus period is over, there may only be a few million left.

Most young internet celebrities are like this, they enjoy the glory for a while, and then they do what they are supposed to do.

So he had to plan ahead and open up the dual-channel consumer market of online and offline.

No matter what, the services trade is the largest market for daily consumer goods in China.

Despite the impact of the Internet in recent years, the traditional clothing industry has been getting worse day by day.

But this doesn't mean that there is no future for clothing stores.

On the contrary, the rise of short videos has given it an opportunity.

First of all, from a business perspective, the reason why Internet clothing stores can sell at such low prices.

There are several main reasons. The first is that there is no need for storefront fees. The second is that many source manufacturers directly connect with customers.

Without middlemen making a profit from the price difference, prices are naturally lower.

These two points alone can eliminate all information gaps and shatter those small or individually owned clothing stores.

These alone can only eliminate small businesses.

All small merchants who have used Taobao know that it is absolutely a joke to say that there is no business that is difficult to do in the world.

It’s like if you want to sell a product, you have to spend money on the through train.

That is, paid ranking.

Only in this way can you display your product in front of the client, otherwise it will be among thousands of products.

If you don’t increase the price of your direct train, others won’t be able to see your products at all.

Not to mention it was sold.

However, Taobao’s paid ranking does not require payment after the transaction is completed. Instead, you have to pay one or several yuan in advertising costs as long as the customer clicks.

This is undoubtedly a critical blow to small businesses, many of which only make several thousand yuan a day.

As a result, the net loss is tens of thousands at the end of the month. This is the reason.

The through train is exactly the same as Baidu's paid ranking.

Its benefits to capital are of course significant. After all, as long as the customer orders, it will charge money whether they buy it or not.

This cost is much higher than the normal rental cost.

Through Train is also Taobao’s most profitable profit tool.

It probably started in 2013. Without a million in starting capital, it is not suitable to start a business in a large category on Taobao.

Because you can't even afford a through train.

Offline stores have to pay rent, and online operations also have to pay bidding ranking fees.

Online, he can directly connect with the source factory. Offline, he has invested 10 billion. After the channel becomes bigger, he can directly purchase goods from those super large factories at the lowest price based on the order model.

When comparing the two, the costs are actually similar.

The key is still the battle for traffic.

This is also the main reason why Chen Pingsheng decided to invest 1 billion in Yao Anni. He already has Tengyou Media and Xinteng Live in his hands.

The traffic is definitely much larger than that of ordinary Internet stores.

Taking all the above factors into consideration, he can do the traditional clothing store business.

And, it can be done very well.

This is the influence brought by short videos, which will redefine traditional industries.

Perhaps it won’t be long before all physical stores will have to incorporate short videos to survive.

Of course, Yao Anni cannot give up on selling goods online, but she just needs to walk on two legs.

It also needs to be developed in conjunction with offline stores.

Chen Pingsheng talked to her for more than an hour. As long as she decided to take this path, he would give her more than just money.

A very good offline physical store management team will also be selected from within the group.

This was completely familiar to him.

After all, most of his listed companies are chain models.

Yao Anni was quite excited when she heard this. No matter what, with the 1 billion investment funds allocated, she would become a super startup in the clothing industry.

If he succeeds in the future, he can even become the president of a listed company.

From the perspective of social status, this is far beyond what a current internet celebrity fashion blogger can compare to.

After much thought, she decided to do it.

Chen Pingsheng didn't say much about the specific business issues, because there would be a team to connect with her later.

The core strategy can be summed up in four words: high quality and low price.

If you can do these four things, most traditional businesses can basically succeed.

He is no exception, but his requirements are higher.

For example, if you want to compare high quality products, you need to compare all products of the same type.

And cheapness does not mean comparing with the clothing store next door, that would be meaningless, so price comparison should be done across all channels, online and offline.

This is the only way to truly gain customer recognition.

Because nowadays people are accustomed to checking prices online when buying things.

Ten billion is not too much, at least for Chen Pingsheng.

However, these things are still quite novel to Zhou Ye and Meng Ziyi, who have just joined the group.

After all, in the time it takes to eat a meal, we witnessed the birth of a super large project.

How can it not be novel?

To a certain extent, celebrities are tools for capital to gain traffic.

In the afternoon, Tong Zelan and Shen Nanpeng came over again.

Both of them are top figures in the Magic City, and anything the three of them discuss together will not be a trivial matter.

Shen Nanpeng is known as the God of Venture Capital in the country, and he has also immigrated to Singapore.

He has been deliberately keeping a low profile in the country recently, and seems to be withdrawing from the public eye.

Tong Zelan is different. She does not need to immigrate, but her investment companies are all established overseas.

The shares are held by overseas groups.

However, Chen Pingsheng chose to follow the national strategy.

Three roads and three seemingly different directions are actually all aimed at avoiding some unpleasant things.

The domestic economy is in a period of transition. House prices may not be at their historical highs, but they are not too far away.

Many wealthy people realize this.

Therefore, there are more and more news reports internationally about Chinese women speculating in gold everywhere.

In fact, it is just the majority of the wealthy class who believe that it is no longer safe to put their money into the real estate reservoir.

This is why there was news about overseas middle-aged women buying out all the gold jewelry on a busy street.

And this kind of news keeps coming out.

Many wealthy people in China are preparing to transfer their money to hoarding gold, which is bound to bring about a long-term rise in gold prices.

This is very good money-making news for ordinary people, but not for them.

The price of gold only accounts for a very small part of the overall funds, and there is also a large number of rich people.

They are actually preparing to flock to Vietnam and use the existing real estate speculation model to jointly drive up the housing prices there.

As early as 2014, the Vietnamese National Assembly amended the housing law and removed restrictions on foreigners buying houses.

The only two conditions are that you can only buy one house in one community, and the property rights are only 50 years.

And finding a local wife can exchange it for permanent property rights.

With the Chinese people's wisdom in real estate speculation, these two restrictions are almost the same as not having them.

When Chinese houses can no longer be used as a reservoir of funds, do you know how big the impact will be on neighboring countries?

Take Vietnam today as an example. Since the entry of Chinese real estate speculators, housing prices in local cities have started to skyrocket.

In Ho Chi Minh City, the average price rose from 3,000 to 4,000 to over 10,000 in just about a year.

Some luxury homes have even risen to 40,000 to 50,000 yuan per square meter.

You have to know that the local per capita salary is less than 2,000 yuan, but the housing prices have risen to 15,000 to 20,000 yuan.

After working for a year without eating or drinking, you can only buy 1.5 square meters.

As the wealth of real estate speculators skyrocketed, more speculators flocked in.

This is the impact that China Real Estate has on some surrounding markets after reaching a turning point.

(End of this chapter)