Chapter 517: Up to 30.5 billion US dollars, Xiaochengzi's progress! Mr. Chen's new goal!
At three o'clock in the afternoon, a Gulfstream 550 landed at Hongqiao Airport.
Afterwards, Chen Yansen got into the back seat of the Maybach and told Xiao Li, "Go to Meters headquarters."
"Zhou Jiancheng asked you to meet, most likely to win traffic support from Pinbei. Meters is having a tough year, with 312 direct-operated stores and 26 franchise stores down, but inventory turnover has actually increased."
Song Yuncheng on the side reminded softly.
As one of the first brands to join Pinbei, Chen Yansen initially gave Meters a lot of support.
Otherwise, Meters' inventory, which was as high as more than 3 billion two years ago, would not have dropped to just over 1 billion this year, which is obviously much healthier.
Unlike the old Vancl, whose warehouses were piled high with inventory and was chased by suppliers for debts all day long.
If Lei Yijun hadn't given him some money to make ends meet, he would have probably collapsed and closed down long ago.
"Zhou Jiancheng first copied Handu Yishe and then Zara's supply chain model, but he lacked his own factories. While management costs were reduced, flexibility was lacking. Most of the new products he launched in the past year haven't even made a splash."
Chen Yansen chuckled and shook his head.
Meters' supply chain from design to implementation is too long, and it cannot respond quickly to market changes. Its production cycle exceeds three months, while Zara only takes two weeks. How can it win by using slow tactics to defeat fast tactics?
Zhou Jiancheng is neither Zhang Sanfeng nor knows Tai Chi, so he was naturally defeated by competitors such as Zara, GAP, HM and Uniqlo.
Although Meters & Co. has tried to let some of its OEM factories pilot small-batch rapid production, costs have risen significantly, and its insufficient information integration capabilities have made it difficult to achieve precise production and sales coordination.
Those cooperating OEM factories were accustomed to large-scale standardized production, and suddenly switched to a small-batch, multi-batch model. Not only did the production lines have to be adjusted, but the cost of purchasing scattered fabrics was also nearly 30% higher than purchasing in bulk.
Therefore, Zhou Jiancheng began to think about investing in a contract manufacturer in order to strengthen his control over the production process.
However, this idea just came to him and he hasn't started to put it into action yet.
"If you were Zhou Jiancheng, how would you lead Meters to get out of its current predicament?"
After saying that, Chen Yansen looked at Song Yuncheng and asked.
I?
Song Yuncheng was slightly stunned.
She frowned slightly and did not answer in a hurry. Instead, she carefully sorted out Meters' supply chain, OEM model, franchising and direct sales business, as well as the establishment of an online sales network in her mind.
After about five or six minutes, she slowly spoke: "First, optimize the manufacturing process and outsource the production of basic T-shirts and jeans to other factories to ensure that the products meet the quality standards.
At the same time, we have acquired a number of high-quality OEM factories and established our own factories to produce fashion and seasonal series products, thereby ensuring optimal control over quality and speed.
“Why doesn’t Zhou Jiancheng do this?”
Chen Yansen asked back.
"Building a factory on our own would be too asset-heavy and the investment might exceed Meters's ability to bear. The factory construction cycle usually takes two to three years. If there is a cash flow problem during this period, Meters will only die faster.
Therefore, Zhou Jiancheng will most likely adopt the method of acquiring shares to reduce time costs and strengthen control over the supply chain."
Song Yuncheng thought as he spoke, and finally made a firm judgment.
"continue."
Chen Yansen said without comment.
But in his heart, he felt surprised.
Sure enough, people are made through practice.
He put Song Yuncheng in the position of director of the key account investment department, and he worked there for two years. His immaturity had long been replaced by composure.
"Secondly, we should cut off loss-making businesses and collaborate with popular IPs, such as The Voice of China and Unexpected, to add elements that young people like and create some joint series.
Close offline stores with annual sales per square meter below 10,000 yuan, reduce unnecessary losses, and concentrate resources on online channels..."
Song Yuncheng answered slowly.
Sales per square meter refers to the sales generated per square meter of business area. For example, the business area of a Meters store is 100 square meters, and the total annual sales are 800,000 yuan, so the sales per square meter is 8,000 yuan per square meter.
After deducting rent, labor costs, and product costs, with a sales per square meter of 8,000 yuan, the franchisee probably can't even earn 100,000 yuan a year. To put it bluntly, it's better to go and get a job.
The sales per square meter of Zara and Uniqlo is over 30,000 yuan.
The main reason for this situation is Zhou Jiancheng's blind expansion.
Chen Yansen looked at Song Yuncheng who was talking so eloquently, as if he saw his former self.
"Master, is there anything missing from my solution?"
Song Yuncheng asked.
"The general direction is correct, but there are many details that we haven't considered, such as Meters' organizational structure and data-driven capabilities. I originally wanted to give you the opportunity to lead a project independently, but it seems you'll have to wait another two years."
Chen Yansen joked.
"I'm doing fine with Pinbei." Song Yuncheng muttered softly.
"Nothing."
Chen Yansen commented.
The street scenes outside the car window kept passing by as the car sped along on the overpass.
After a while, a building with the Meters brand logo came into view.
The last time I came, Pinbei had just been established and even the App hadn’t been developed yet. This time, Pinbei was about to go public.
Zhou Jiancheng and Min Jie, the general manager of Bang Shopping, stood in front of the company's headquarters.
Three minutes ago, he received a message from Chen Yansen, and hurriedly took the elevator from the office to the first-floor lobby.
He originally planned to wait in the rest area, but he changed his mind and stood up and ran out the door to show his sincerity.
In the clothing industry, he is one of the leaders in East China. More than 200 OEM factories around him have to rely on Meters for their livelihood, but in front of Chen Yansen, he can't even raise his head at all.
Three years ago, when he first heard the name 'Chen Yansen', the other party was still a small boss of a shopping guide e-commerce website, but now he has become the richest man in China and the world.
Moreover, Pinbei is about to go public. Based on the issue price, its market value is as high as 88 billion US dollars.
But what about him?
The company has been doing worse and worse in the past two years. This year's revenue is just over 7 billion yuan, and the profit is less than 400 million yuan.
It is simply incomparable to Chen Yansen's wealth and industry status.
At this moment, Min Jie caught a glimpse of a black Maybach approaching slowly, followed by two Mercedes-Benz commercial vehicles. He immediately touched Zhou Jiancheng's arm and whispered, "Boss, Mr. Chen is here."
Zhou Jiancheng immediately came to his senses, put on a smiling expression, and took two steps forward.
He originally wanted to open the car door for Chen Yansen, but when he glanced around, he saw that besides Min Jie, there were two other senior executives of the group. He couldn't bring himself to do it, so he quietly retracted his hand halfway and waved towards the car door.
It wasn't until the Maybach's window slowly lowered, revealing Chen Yansen's upper body, that he quickly put on a warmer smile and said loudly, "Mr. Chen, long time no see. It's a great honor to have you come to Meters!"
As soon as he finished speaking, he felt that his words were too deliberate. He secretly glanced at the executives beside him with the corner of his eye. Seeing that they all had the same respectful expressions on their faces, the awkwardness in his heart was slightly relieved.
"Mr. Zhou, if you have nothing to do, please come to Xucheng and sit down so that I can show my hospitality."
Chen Yansen pushed the door and got out of the car, holding Zhou Jiancheng's right hand, patting his shoulder and said.
Logically speaking, he is younger than Zhou Jiancheng, so such behavior should be somewhat inappropriate, but considering his wealth and status, the scene does not feel out of place at all.
Zhou Jiancheng smiled and didn't care at all.
The fact that Chen Yansen came here gave him great face.
Otherwise, with his status, if he were to discuss business without talking about friendship, he would at most only be qualified to meet Song Yuncheng.
Today, Pinbei has already become an e-commerce giant with an annual transaction volume of over 600 billion yuan. Privately, I don’t know how many big brands are trying their best to curry favor with Chen Yansen.
If he had not been the first to respond and bring Meters to Pinbei when it was first established, and had not offered the platform a ladder when the platform needed the brand the most, and had not left this little bit of friendship, it would have been extremely difficult to have a meal alone with Chen Yansen again.
"Blame me! I'll definitely visit you some other day."
Zhou Jiancheng said apologetically.
In China, no one who can accumulate billions of dollars in assets is a simple person.
Even when facing Chen Yansen, who is nearly 30 years younger than him, he can put down his airs and look flattering.
After all, Pinbei is Meters' most important online sales channel.
"You're welcome, Mr. Zhou." Chen Yansen said with a smile.
"Mr. Chen, please! I know you love tea, so I specially collected a few cans of tea. You have to help me check them later."
Zhou Jiancheng said with a smile.
The two exchanged pleasantries as they walked towards the interior of the building.
During his second visit to Meters headquarters, Chen Yansen keenly noticed that the atmosphere was unusual. The spirit of the employees of a company with declining business can be seen.
After entering the office, Zhou Jiancheng was busy making tea for him.
"Mr. Chen, the clothing industry has been very difficult in the past two years."
After working for half a day, Zhou Jiancheng held the teacup and sighed.
"I'll ask Mr. Song to give Meters a few extra brand group events. The recent 10 billion yuan subsidy exposure rules are being tested for a "thousand faces for a thousand people," and Meters will be given priority when the time comes."
Chen Yansen gave a slight response.
"Thank you, Mr. Chen, for your care."
Zhou Jiancheng grinned and hurriedly thanked him.
What he wants is not just a few insignificant resource positions, but a deep integration cooperation with Pinbei.
So he explained, "Mr. Chen, as you know, Meters has been facing severe inventory pressure in recent years, and nearly 30% of its offline stores have been closed.
Just a few brand group activities can at most clear out some out-of-season models, and cannot support the whole year's business at all.
If you are willing to provide data, technology, and traffic support, all future product lines that cooperate with Pinbei will share profits at a 60:40 split.”
"Mr. Zhou, Pinbei is a B2C platform. I don't have the idea of being both a referee and an athlete for now."
Chen Yansen refused without hesitation.
Seeing Chen Yansen's firm attitude, Zhou Jiancheng had to put aside the first version of the plan and instead talk to him about Meters' marketing plan for the coming year.
Simply put, they plan to spend a lot of money on Pinbei to buy traffic, grab accurate customers, and compete for more promotional resources.
Chen Yansen understood the other party's intention and turned to Song Yuncheng, saying, "Personally follow up on the Meters cooperation project. Based on the published price, give Mr. Zhou the highest discount."
"Okay, boss." Song Yuncheng responded immediately.
She knew Chen Yansen's approach clearly. The so-called "highest discount" actually meant no discount at all.
Given Meters' brand level and sales volume, 20% off is the upper limit.
"Thank you, Mr. Chen." Zhou Jiancheng raised his teacup and said gratefully.
Chen Yansen gave him a lot of support, but Meters’ own products had shortcomings, resulting in poor conversion results.
Now he is satisfied to be able to obtain some additional marketing resources.
An hour later, the two ended their conversation.
At Zhou Jiancheng's invitation, the group drove to a nearby restaurant.
After Chen Yansen and Zhou Jiancheng got out of the car, they were about to enter the private room accompanied by the lobby manager when a voice suddenly called out from behind: "Mr. Zhou!"
Zhou Jiancheng subconsciously turned around and saw a man walking towards him quickly. He was in his fifties, dressed in a suit and tie. Although he was smiling, a trace of sadness could not be concealed between his brows.
"Mr. Yang, are you in Shanghai on a business trip?" Zhou Jiancheng asked casually.
The two are old acquaintances. The other is the boss of Qindao Taihua Group. He used to be a contract manufacturer for Meters in his early years. Later, when Meters went downhill, he turned to supply Uniqlo.
"Yes, Mr. Zhou."
Yang Weidong responded, then leaned forward and politely greeted him, "Mr. Chen, I've long heard of you. I didn't expect to meet you in Shanghai. I'm Yang Weidong, the head of Qindao Taihua Group. I specialize in OEM business for branded clothing."
"Mr. Yang, nice to meet you." Chen Yansen nodded in response.
Yang Weidong was determined to make friends with Chen Yansen, so he ignored Zhou Jiancheng's fierce look and shamelessly asked for Chen Yansen's contact information. Then he apologized and walked towards the box in front.
"Mr. Chen, Taihua has been suffering a lot this year and has been looking for a buyer for a large garment factory."
After Yang Weidong left, Zhou Jiancheng, Chen Yansen, Song Yuncheng and Min Jie entered the box and sat down together, then he said with a smile.
"Have you been cheated by your daily life?" Chen Yansen's eyes were filled with inquiry, and his tone was also more interested.
"The Japanese yen has depreciated sharply this year, and the settlement currency that Uniqlo pays to Taihua is the Japanese yen," Zhou Jiancheng added.
Chen Yansen understood immediately.
For example, if Taihua's cost is 5 million Huayuan, according to the original exchange rate, the fee paid by Uniqlo can be converted into 8 million Huayuan, so the profit is 3 million; but with the depreciation of the Japanese yen, the same amount of payment can now only be converted into 4 million Huayuan.
As a result, Taihua will not only fail to make money, but will lose money instead.
Of course, the actual depreciation of the Japanese yen this year is 20.9%, but the profit of the clothing OEM industry is not high either, so Taihua has worked in vain for a year.
In theory, OEM factories generally require brands to settle in the cost currency, or embed exchange rate buffer clauses in the quotation to transfer part of the exchange rate risk to the brand.
But obviously, Taihua didn't think too much about it in order to get the big order from Uniqlo.
Garment factory?
Chen Yansen placed his fingers on the table and nodded casually.
The uniforms for employees at Yunsu, Kuaipao, the Orange mobile phone factory, and the group's various subsidiaries are essentially custom-made by partners. So, rather than letting outsiders profit from this, it would be better to acquire a factory in-house.
After all, orders from within the group alone are enough to support a factory.
Thinking of this, he pinched the business card in his pocket and prepared to go back and ask the people in the Strategic Investment Department to handle it.
…
…
The next morning, Chen Yansen dressed neatly and took a car to the Yiyuan office building at No. 200 Longcao Road.
The launch meeting for Kuapao's Series C financing was scheduled to be held at the headquarters, not in a hotel.
Goldman Sachs offered US$30 billion, Huake offered US$28.5 billion, Hillhouse Capital offered US$29 billion, and Penguin Capital offered US$30.5 billion.
Sands Venture Capital has the smallest amount, at only US$26 billion.
If Zhu Xiaohu does not raise his bid to 30 billion US dollars, he will be the first to be eliminated.
(End of this chapter)
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