The branch president had already sensed that something was wrong. The ability to brainwash people like this was beyond the scope of all corporate training.
Thinking of this, I didn't bother to investigate at the market terminals and immediately reported the situation to higher authorities.
Jiafeng's development speed not only exceeded everyone's expectations, but even Lu Feng was somewhat surprised by the speed of development of this model. It is by no means a simple one plus two, two plus three development model, but a multiplicative speed. With a huge foundation, it can double in ten days.
This led to the smaller banks that had signed agreements exceeding their lending budgets, forcing them to add four new large and medium-sized banks. Currently, Schroders Financial Group appears to be the most likely to profit.
It's already late March, and April is just around the corner. The weather is starting to get hot, and the offices in the three EU countries of Germany, France, and Italy have already dispatched three teams to try to cover multiple countries by June.
At the same time, Sean's team will assist these three offices in their work, providing information on local businesses and markets. Of course, Lu Feng hired Sean, and his team will only provide assistance and won't actually contribute much. The main focus will be on collaborating with local consulting firms.
Inside the meeting room, Manager Li, Sean, and several newly promoted executives had roughly compiled the latest data. Lu Feng looked at the folder in his hand with some disbelief and asked, "Has the new batch of goods been shipped from China?"
"It will arrive at the port the day after tomorrow. This batch contains 150,000 sets of products, and it will take one day to clear customs," Manager Li replied.
The first batch of goods has sold out, and there are now less than 3,000 sets left. Among them, VCDs are selling the best. After all, this product has no competitors here. Some people may not be fooled by the hype about healthy TVs, but VCDs are a real product.
“We’ve encountered a new problem. Because we deliver the goods first, some people are hoarding them, telling us that the goods have already been sold but their relatives haven’t paid yet, and they’re taking the goods again. At the same time, corruption has emerged among the newly recruited employees. They’re illegally giving goods to private individuals, and the payments aren’t being returned on time. Some people are even taking the loans and goods and disappearing without a trace.” Manager Li said with a serious expression, “As more and more people do this, more and more people are taking advantage of the loopholes.”
"This situation is normal. There are always smart people out there. There aren't many goods available right now. We're tightening the first batch of goods for new members. We'll only give them two sets so that the goods will go to individuals. At the same time, we'll crack down on those who use other people's identity information to get loans. I had a meeting with several banks yesterday, and we'll be tightening things up in this regard."
“Tightening lending will inevitably lead to a sharp decrease in new customers, so it’s crucial to manage the pace effectively. This requires strong management skills; we need to use systems to compel them to sell, rather than letting them exploit loopholes.” After saying this, Lu Feng asked Manager Li, “The first quarter is almost over, how are the profits?”
"Currently, our VCD sales are 67,000 units, television sets 43,000 units, and audio equipment over 30,000 units, with total sales of £69.75 million and profits of £34.28 million. With the increase in distributors, our expenses are also increasing significantly. Next month's expenses are expected to be £3 million, mainly due to their promotional subsidies."
With an income of over 30 million, Sean sat to the side, utterly shocked. They had only been there for a few months, yet they had earned more than 95% of their superiors' companies.
However, Sean also understood that this high growth was unsustainable. The UK market would experience another surge in sales, and once it reached its peak, Jiafeng's target audience would be saturated. Those who were easily fooled would become Jiafeng agents. Who would they fool then?
At that time, Lu Feng probably made a fortune and could have simply left the mess behind and walked away. It's just a matter of whether he could take all that money with him without any trouble.
"So much money is being spent on subsidies?" Lu Feng felt a pang of heartache looking at these expenditures, but then he thought that this was the collective activity fund for 50,000 people, which wasn't much. Compared to the prices that the distributors were asking for, it was pitifully small.
“We can reduce it a little more, but the offices in the other three countries also need money to start operations. Our number of employees has exceeded one thousand, the departments are basically complete, and the management framework is finished.” Manager Li replied, “We expect the profit attributable to the group to reach 500 million RMB in the first quarter of this year.”
"Mr. Lu, when we transfer the money internationally, it will be subject to scrutiny, and we might have trouble getting through that."
Looking at the numbers above, Lu Feng realized that while making money was easy, getting it back was difficult. Moreover, as the business grew larger, more people were bound to pay attention, and the biggest risk he would face next was scrutiny.
"The main reason for today's meeting is to address the risks we will face. The company has grown significantly, and this business model operates in a gray area. The market is only so big, and it's difficult for us to remain undetected. Therefore, risk prevention must be put on the agenda." Lu Feng said to Sean, "Mr. Sean, I hope you can leverage your network to win over some influential people. We can share some profits with you."
Sean looked at Lu Feng and asked, "How much are you willing to offer?"
"That needs to be discussed in person." Lu Feng, rather shrewdly, didn't answer, fearing that the old man might take a kickback in the process.
“If there’s an opportunity, I’ll help introduce you. If there are any banquets, I hope you’ll attend them. This will help you expand your network and maintain a good personal image.” Sean pondered for a moment and said, “Donate when you should. Spending some money makes things easier, and at least you’ll have a good reputation.”
"Donations are out of the question; let's keep a low profile. As for the dinner, we can attend if it's for important people, and it would be best if we could introduce them to heads of powerful departments like the Ministry of Commerce or the Ministry of Finance. If it's for unimportant people, then forget it."
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