Just after Asia Travel Capital invested in Amazon, Longteng received news that Walmart was preparing to restrict distributors from joining Amazon.
At this point, Xiang Feng was still completely unaware of the situation.
“Xiang Feng, when you asked me whether Amazon was worth investing in, my answer was that Amazon was definitely a very trustworthy company, but now they’ve run into some trouble,” Chen Dong said directly.
Xiang Feng was stunned. "Don't try to scare me. Asia Travel Capital signed a contract with Amazon for over 100 million yuan, and there are also agreements for additional investment in the future."
"Why would I scare you with something like this?" Chen Dong glanced at Annie and gestured for her to go out first.
Then Lin Zhiyuan sensibly left the office.
“Xiang Feng, to be honest, Amazon will definitely become a large international company and a global e-commerce platform in the future. However, your entry into the market now is indeed a bit ill-timed,” Chen Dong said directly.
Xiang Feng fell silent. In front of the senior executives at Asia Travel Capital headquarters, he had confidently declared that investing in Amazon would definitely bring high returns.
Asian investment banks in Southeast Asia have always maintained a very stable investment style, focusing solely on long-term investments.
If what Chen Dong said is true, and Amazon will soon be subject to commercial sanctions by Walmart, then won't their money be wasted?
"You called me here today just to tell me this, to let me know that our company's investment has failed?" Xiang Feng said, somewhat angrily.
Chen Dong shook his head. "Of course not."
“I understand that your company has always focused on long-term, large-scale investments, and will immediately withdraw its investment once a project encounters problems,” Chen Dong said shamelessly. “What I mean is, can you persuade those executives not to rush to withdraw their investment?”
Xiang Feng looked at Chen Dong, his eyes darting around, before he finally understood.
"I see. The main sales channel for the iPod is Amazon. Walmart hasn't made any public moves yet, but once it does, Amazon definitely can't compete with an established company like Walmart."
Xiang Feng looked at him with disdain, "Are you afraid that if Amazon fails and you lose the investment from Asia Travel Capital, you'll be completely drained?"
Chen Dong was concerned that if Walmart took action against Amazon, both sides would suffer heavy losses, and his sales in the European and American markets would become unstable.
After all, one is Amazon, which is the main online sales channel for iPods, and the other is Walmart, a global supermarket chain from the United States, which will also be one of the planned sales channels for iPods in the future.
Regardless of which of these two companies gets injured, it will be detrimental to iPod sales.
"My starting point was definitely to better protect the iPod sales channels, but as long as Asia Travel Capital can weather Amazon's most difficult period, Amazon will become a global e-commerce platform in the future, and you won't lose out!" Chen Dong admitted directly.
"What do you mean by 'not suffering a loss'?!" Xiang Feng completely disagreed with his statement. "Do you even know Walmart's position in the European and North American markets?"
"Walmart is the largest retailer in the United States, with countless distributors, agents, and source factories, and chain supermarkets all over the world."
"They just established their international business division last year, which means that Walmart's future business expansion will only be faster and more aggressive than Amazon's!"
Amazon is not yet publicly listed, while Walmart has been a publicly listed company for a long time, giving Walmart an edge over Amazon in this respect.
"To be honest, the reason why Asian investment banks invested in Amazon in the first place was because we had previously contacted people at Walmart, but they wouldn't give us a chance at all," Xiang Feng complained.
Chen Dong muttered to himself, "Then why are you still so eager..."
"Amazon's current position is indeed awkward. Although it has a much greater advantage than Walmart in retail, it is not as good as Walmart in terms of capital or resources from other distributors."
Chen Dong analyzed: "The Internet is just emerging now. Although many people are looking for bargains and buy daily necessities on Amazon, most of them are young people."
"Most families still prefer to shop at physical supermarkets."
Now that things have come to this point, Xiang Feng looked at Chen Dong and asked, "So you still want me to continue investing?"
"I'm not optimistic about Amazon, I'm optimistic about e-commerce platforms," Chen Dong said directly.
"The free market has now formed a mature set of processes including production, promotion, sales, and customer feedback, but the internet e-commerce market is still a nascent field."
Modern people, limited by their perspective, cannot imagine what kind of future e-commerce will develop into, and Xiangfeng is no exception.
Even after Chen Dong said that, Xiang Feng still insisted on his own opinion.
If Walmart announces restrictions on competition with Amazon, they will suspend their investments.
“I can’t convince you. Here’s what we’ll do,” Chen Dong took a step back. “Right now, Walmart hasn’t explicitly restricted its distributors from joining Amazon.”
"Two months from now, no matter what happens to Amazon in its competition with Walmart, as long as you hold on for two months, I guarantee Amazon will get through this period."
Xiang Feng thought for a moment. Although Chen Dong was an expert in the investment field, he did have his own unique insights in the production and operation field, especially in predicting trends.
It's no big deal to believe him just once.
“I’ll give you two months. If the senior executives of the Asian tour insist on withdrawing their investment after two months, then it’s none of my business,” Xiang Feng said.
Chen Dong immediately poured Xiang Feng a cup of tea, saying, "Of course."
The engineers at Longteng Electronics took a month off, and the company was quiet for a month, but Walmart was not idle.
First, large distributors quietly removed their products from Amazon's official website. Later, some smaller distributors, for reasons unknown, removed all their retail products from the page.
Later, Annie managed to find these distributors and learned from them that Walmart executives had explicitly prohibited them from putting their products on online channels.
Because distributors have a competition agreement with Walmart, their goods cannot be sold in any market that Walmart explicitly prohibits them from entering.
Online marketplaces are also markets.
Distributors with commercial agreements with Walmart have already wisely removed their products from the shelves. After all, making money is a small matter; if they get sued, it would be a huge loss.
Amazon should have realized that customers are being lost, but they are currently overwhelmed and have no time to deal with it.
Chris, even on vacation, can't put down his computer at home.
He is the group leader of the iPod online community. He usually likes to collect good music resources from various record companies and put them on the online community for everyone to share.
......
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