"The number of merchants on Amazon, as well as the average sales per item and total transaction volume." Lin Zhiyuan fiddled with the documents, sorting them as he handed them to Chen Dong. "There's a lot of stuff, and the data is quite messy."
"Take a look at this first, the total transaction amount."
"And this, the average transaction volume per person on Amazon, popular products, popular electronics, popular clothing."
Chen Dong leisurely sipped his tea, speaking slowly and deliberately, "Why did you bring these Amazonian things to show me?"
"No." Lin Zhiyuan took out a pie chart and several other flat data graphs to make things clearer for Chen Dong. "Take a look at these, these popular products, do you notice anything?"
"These are all commonly used furniture items, necessities for daily life, it's perfectly normal."
Chen Dong always ignores anything that doesn't concern the group.
Lin Zhiyuan sighed and handed over a brand-name watch, saying, "Take a look at this one too."
"These brands all have deep partnerships with Walmart."
Walmart is a major American retail chain with over 300 stores in Europe alone. Two years ago, Walmart's overseas sales already accounted for 27.6% of its total sales, and it just established its international business division last year.
It's fair to say that Walmart wields considerable influence in the retail industry.
In particular, Walmart has acquired many major brands in recent years during its business expansion, and its number of major brands, distributors and franchisees is enormous.
Walmart's products cover all aspects of the retail industry.
"You mean, these distributors who have partnerships with Walmart are selling their products on Amazon?" Chen Dong asked.
Lin Zhiyuan nodded.
"Thank you for your help," Chen Dong said, taking a sip of tea.
Before cooperating with such large enterprises, distributors or factories usually sign contracts with retailers, specifying in which situations sales are permitted and under what circumstances there will be restrictions.
Large companies like Walmart typically stipulate terms such as delivery price, freight, settlement method, and restrictions on competition when signing contracts.
If distributors place their products on Walmart's online marketplace while having contracts with the company, it will inevitably reduce Walmart's market competitiveness.
“Amazon is so popular now that it’s seriously impacting Walmart’s product sales,” Lin Zhiyuan said, picking up a document and pointing to the data on it. “Moreover, almost all the products on Amazon now are retail goods.”
"In terms of business model, this is very similar to Walmart; it's practically trying to take money out of Walmart's rice bowl."
Annie chuckled, finding his words amusing. "Is it really that serious?"
“Of course it’s serious! Actually, if both companies were in the retail industry, it wouldn’t be a big deal; they just have different focuses,” Chen Dong explained. “However, Amazon is an online marketplace. Compared to Walmart, it has fewer middlemen, lower shipping costs, and less pressure from warehousing. You can calculate the costs yourself.”
Lin Zhiyuan added, "So, although both companies mainly sell retail, Amazon's prices for similar products, or even the same product, are lower than Walmart's."
After listening to the whole thing, Annie finally realized that Lin Zhiyuan had been chattering away since he entered the room just to talk about the competition between the two companies.
"What does this have to do with Longteng?" Annie asked, puzzled.
"Of course there is a connection. We put our products on Amazon and pay Amazon a promotion fee. Now it looks like these two companies are about to go to war. Amazon is a new company, and it's not certain whether it can survive."
Lin Zhiyuan slurred and explained the pros and cons: "To put it another way, it would be great if Amazon could cooperate with Walmart, but if not, would Walmart let Amazon go?"
“Walmart’s sales have declined drastically,” Lin Zhiyuan said, turning to Chen Dong. “I’ve heard that their headquarters are already looking for solutions.”
Anne finally understood; it turned out that the two armies were arrayed in battle formation, but they hadn't started fighting yet.
"The solution is obvious. The ones who left are the distributors. If they want to recover sales, the first thing they need to do is definitely to deal with the distributors," Chen Dong said, frowning.
"Any news from the Amazon side?" Chen Dong asked.
Lin Zhiyuan shook his head, "Not yet."
"Amazon has expanded so rapidly, I wonder if they've even noticed this, or if they have, but simply don't have the energy to compete with Walmart right now."
"After all, Amazon is still actively seeking investment; they're making so much money they're practically begging for it."
Chen Dong's eyes darkened, and he closed them tightly, seemingly deep in thought. "No matter how they fight, as long as they don't affect us, it's fine."
"Should we tell the Asia tour team?" Lin Zhiyuan asked.
On the other hand, Xiang Feng was overjoyed upon seeing Walmart's latest financial report.
His investment in Amazon proves that his choice was correct.
The senior executives who initially opposed his decisions have all fallen silent after seeing the reports.
Back in his office, Xiang Feng was showing off to a group of newly recruited employees how insightful he was and how they would judge a company's future prospects in the investment field.
Just then, the phone rang. After answering it, the secretary said to Xiang Feng, "It's a call from Longteng Group."
"What's up?"
"They said their boss wants to see you."
Chen Dong has been quite quiet lately.
With these feelings in mind, Xiang Feng returned to China.
“To the supervisor!” Annie greeted him downstairs.
Xiang Feng glanced at Annie and teased, "It's been a few days, and the beautiful lady has grown even more!"
“Our boss is very kind to the supervisor,” Annie said with a smile.
Upon arriving at Chen Dong's office, Xiang Feng's expression turned serious. However, seeing the unusually quiet atmosphere in the office, Xiang Feng's expression shifted from serious to puzzled.
"What's wrong? What's going on?"
Xiang Feng looked at Chen Dong and asked very seriously, "Longteng Electronics was robbed?"
Lin Zhiyuan turned his head away, Chen Dong rolled his eyes, and Annie explained from the side, "Our boss gave them a holiday."
"However, it's just that the office looks a bit deserted; the other departments are quite lively."
Longteng Electronics' engineering and technical departments have a large number of employees, and when they go on holiday, it looks like the place is deserted.
"What do you want?" Xiang Feng finally asked.
Chen Dong looked at him and asked, "You asked me before whether Amazon was worth investing in, and then you went back and prepared to hold a high-level meeting. What was the decision made by your senior management at that time?"
"Your Asian investment bank has invested in Amazon?"
"We've already invested." Chen Dong never inquired about the internal affairs of Asia Travel Company, so Xiang Feng was a little confused by his question. He slowly added, "Just now, and quite a lot."
......
Continue read on readnovelmtl.com
