The Birth of Shanghai's First Conglomerate

Chen Pingsheng answered Meng Yuyu's question.

In fact, he had already planned it out, aiming to achieve cost leadership and technological leadership in the future.

Over the next three years, at least 40 billion yuan will need to be invested in technological research and development for Tengfei New Energy.

This is not an exaggeration.

Therefore, he has to subsidize more than 10 billion yuan annually for new energy vehicle manufacturing.

Until the car is successfully built.

Following the groundbreaking of the super factory, the Tengfei Innovation Park, with an investment of 4 billion yuan and covering an area of ​​100 acres, is also about to begin construction.

From factory construction to technology research and development, it will take at least three years for Tengfei New Energy to launch its first vehicle.

Over the past three years, he has invested approximately 60 to 70 billion yuan.

There are actually ways to save money, but he just didn't use them.

If you want to save money, all you can do is contract manufacturing. The technology belongs to someone else, the factory belongs to someone else, everything belongs to someone else.

Our company is just an OEM manufacturer.

In his view, this kind of factory might be okay in the short term, but in the long term it will definitely not be able to compete with those super large factories.

Therefore, he needs to plan ahead in the early stages of his business so that he won't be eliminated in the future.

……

July arrived in the blink of an eye.

Chen Pingsheng, who only wanted to make money, suddenly discovered that his family had acquired a promising snack brand.

This was back in March of this year, when he invested 100 million yuan to create Snack Run.

In April, the company raised another 500 million yuan.

By July, Snack Run had a total of 550 directly operated stores in the Jiangsu, Zhejiang and Shanghai regions.

Snack Run mainly focuses on snack specialty stores, and you can imagine how complex its business model is.

That's not the case at all.

Essentially, it involves further segmenting the broad category of snacks and then attracting customers through low prices.

Quickly open stores to reduce procurement costs.

For example, a bottle of ordinary Wahaha mineral water costs two yuan in a typical small supermarket.

Snack Run is only 1.2 yuan.

The same applies to other beverages; their prices are very low, so their profit margins naturally drop significantly.

The only benefit of low prices is that the number of customers is increasing.

Sales were at least five to eight times higher than those of traditional small supermarkets.

This model was first used on Tengsheng Fruits, and later on, it was used on Boiling Sheep and Tenghui Department Store.

When Zhao Mingyu called him to report on the situation, he also mentioned a situation.

In just four months, their company became the largest capital brand in this niche market.

Before anyone else could even react, there were already more than 500 directly operated stores.

This is capital-driven entrepreneurship, and it also demonstrates Tengying Group's ultimate influence in traditional industries.

Once a new niche market is discovered, they simply use large amounts of capital to crush it.

Snack Run's gross profit margin is very low, only about 18%.

The gross profit margin of a typical small supermarket is over 50%.

This allows it to acquire customers quickly.

If you rely on your own profits to open stores, it would take at least eight months to a year to reach a thousand stores.

After carefully reviewing the operating data of Snack Run, Chen Pingsheng discovered something.

There are no secrets in this industry, and no business model that cannot be replicated.

They currently have the significant advantages of speed and abundant funds.

Perhaps in a few years, when others, especially investors, discover that opening such snack specialty stores is profitable, three or four such stores may spring up on the same street.

At that time, the competition will be about price and cost control.

Of course, he didn't mention the crucial point.

That's brand traffic.

This is Tengying's strongest advantage; it's almost impossible for any opponent to compete with him in this area.

Currently, Snack Run's chosen spokesperson is Zhao Liying, who enjoys a very good reputation among the public. After putting down the financial report, Chen Pingsheng said, "Having more than 500 directly operated stores in the Jiangsu, Zhejiang, and Shanghai areas would be about right. Our next step is to focus on franchising."

"In addition, I will give you another 1 billion yuan to Beijing, Guangzhou and other places, and you should replicate them there as soon as possible."

First, occupy the top-tier cities, and then use the influence of the top-tier cities to directly replicate it in the surrounding first-tier cities.

This has always been the super strategy of Tengying Group in its traditional fields.

To put it bluntly, you can only do this if you have money. If you don't have money, how could you dare to replicate stores so quickly in a top-tier city?

With this billion yuan investment, Snack Run expects to expand to around 1600 stores in the next three months.

By then, we can just start franchising across the entire country.

Chen Pingsheng has even bigger ambitions; he wants to truly dominate the snack market in the future.

Rapidly establishing a presence, expanding stores, and gaining control of distribution channels are two different things.

The key is to reach out to the upstream manufacturers.

To put it bluntly, if he owns 10,000 snack stores, and you want to enter his store, you have to let him invest in your business at a low price.

For a store with no barriers to entry and no complicated business model to remain successful in the future...

That would necessitate using the channels to control upstream manufacturers.

Then, through their own extensive distribution channels, they select suitable and high-quality manufacturers to list on the market.

It can be water, or it can be spicy.

In any case, the premise is rapid store expansion.

How fast?
He plans to open 10,000 offline stores within the next six months.

It sounds difficult, but he has the ability now.

Before anyone could react or was even in the planning stages, his snack spree had already spread all over the country.

Flowers are blooming everywhere.

While others were still opening stores, he had already moved on to the second stage, taking control of upstream manufacturers.

Zhao Mingyu was previously the head of Tenghui Department Store's Beijing branch, so he was well aware of Tengying Group's strength in traditional sectors.

Therefore, as soon as they have a good idea, they immediately go to the big boss to ask for cooperation.

As it turned out, this was the best step he ever took.

If he dares to take this idea and open his own shop, people will come to Chen Pingsheng's attention.

Even if it takes you a year or two to get going.

He can also surpass others in a short time.

You won't see their feet at all.

When it comes to starting a business, it's never about having a good idea.

Rather, it's resources.

Chen Pingsheng really can't come up with 1 billion yuan right now; all his money has gone to Tengfei New Energy.

Call my wife and ask her to transfer 1 billion yuan from Shuiyunjian first.

Song Yanxi will have to wait until this month's dividends to raise the full amount, but she still gave him 500 million yuan directly.

Five hundred million will be transferred first, and the remaining five hundred million will be available on the 15th.

Zhao Mingyu was overjoyed and left with the money.

Chen Pingsheng certainly wouldn't just invest money and call it a day; a billion yuan would only allow him to rapidly increase the number of his stores.

It won't make his brand known worldwide.

He called Bai Xin and instructed the artists under his company, Tengying Entertainment, to immediately start generating celebrity buzz for Snack Run.

Another notification was sent to Chang Fu, announcing that Snack Run had officially entered the Tencent Group's S+ Support Entrepreneurship Project.

The so-called S+ supported entrepreneurial projects are the highest-level entrepreneurial projects within the group.

To become an S+, the big boss must believe that the project has the potential to become a unicorn company.

That is, a market value of tens of billions.

At this point, the group will focus all its efforts on driving traffic to this project.

We'll soon find out just how powerful Tencent's traffic resources really are.

(End of this chapter)