I can become stronger by paying salaries. I have one billion employees!

Chapter 516 A maximum of 305 billion US dollars, Little Orange's progress! President Chen's new goal!
At 3 p.m., a Gulfstream 550 landed at Hongqiao Airport.

Then, Chen Yansen got into the back of the Maybach and instructed Xiao Li, "Go to the Metersbonwe headquarters."

"Zhou Jiancheng asked you to meet, most likely to try to get traffic support from Pinduoduo. Metersbonwe is having a tough year, with 312 fewer directly operated stores and 26 fewer franchised stores, but the inventory turnover rate has increased."

Song Yuncheng, who was standing to the side, gently reminded him.

As one of the first brands to join Pinbei, Chen Yansen provided Metersbonwe with a lot of support.

Otherwise, Metersbonwe's inventory, which was over 30 billion yuan two years ago, would not have dropped to just over 10 billion yuan this year, making it significantly healthier.

Unlike Vancl, which had been around for a long time and whose warehouses were full of inventory and whose suppliers were constantly chasing after them for payment.

If Lei Yijun hadn't given him some money to tide him over, he probably wouldn't have been able to survive and would have had to close down long ago.

“Zhou Jiancheng first learned from Han Du Yi She, and then from Zara’s supply chain model. However, he lacks his own factories. Although the management costs have been reduced, the flexibility is insufficient. Most of the new products launched in the past year have not even made a splash.”

Chen Yansen chuckled and shook his head.

Metersbonwe's supply chain from design to implementation is too long, making it unable to respond quickly to market changes. Its production cycle exceeds three months, while Zara only needs two weeks. How can a slow company possibly win against a fast one?
Zhou Jiancheng is neither Zhang Sanfeng nor knows Tai Chi, so he was naturally crushed by competitors such as Zara, GAP, H&M, and Uniqlo.

Although Metersbonwe had tried to have some of its contract manufacturers pilot small-batch, rapid production, costs rose significantly, and the company's information integration capabilities were insufficient, making it difficult to achieve precise production and sales coordination.

The contract manufacturers that cooperated with them were used to large-scale standardized production. Suddenly switching to a small-batch, multi-batch model not only required adjustments to the production lines, but also increased the cost of purchasing scattered fabrics by nearly 30% compared to bulk purchases.

Therefore, Zhou Jiancheng had the idea of ​​investing in contract manufacturers again, hoping to strengthen his control over the production process.

However, he had only just come up with the idea and hadn't yet put it into action.

"If you were Zhou Jiancheng, how would you lead Metersbonwe out of its current predicament?"

After saying that, Chen Yansen looked at Song Yuncheng and asked.

I?
Song Yuncheng was slightly taken aback.

She frowned slightly, not rushing to answer, but carefully sorting out Metersbonwe's supply chain, OEM model, franchise and direct sales business, and online sales network construction in her mind.

After about five or six minutes, she slowly spoke: "First, optimize the manufacturing process. Outsource the production of basic T-shirts and jeans to other factories to ensure that the products meet quality standards."

Simultaneously, we acquired a number of high-quality contract manufacturers and established our own factories to produce fashionable and seasonal products, thereby ensuring optimal control over both quality and speed.

Why doesn't Zhou Jiancheng do that?

Chen Yansen asked back.

“Building its own factory is too asset-heavy, and the investment may exceed Metersbonwe’s capacity. The factory construction cycle usually takes 2 to 3 years. If cash flow problems occur during this period, Metersbonwe will only die faster.”

Therefore, Zhou Jiancheng will most likely adopt a shareholding control approach to reduce time costs and strengthen control over the supply chain.

As Song Yuncheng spoke, he thought for a moment, and finally made a judgment with a firm tone.

"continue."

Chen Yansen said noncommittally.

But he was suddenly surprised.

Indeed, people are made through practice.

He placed Song Yuncheng in the position of Director of the Major Client Investment Promotion Department, a position he held for two years, during which time his youthful naiveté was replaced by composure.

"Secondly, cut loss-making businesses and collaborate with popular IPs, such as 'The Voice of China' and 'Unexpectedly,' to add elements that young people like and create some co-branded series."

"Close offline stores with annual sales per square meter below 1 yuan to reduce unnecessary losses and concentrate resources on developing online channels..."

Song Yuncheng answered calmly.

Sales per square meter refers to the sales revenue generated per square meter of operating area. For example, if a Metersbonwe store has an operating area of ​​100 square meters and a total annual sales revenue of 80 yuan, the sales per square meter would be 8000 yuan.

After deducting rent, labor costs, and product costs, with a sales per square meter of 8000 yuan, franchisees probably won't even earn 100,000 yuan a year. To put it bluntly, they might as well go and work for someone else.

Zara and Uniqlo, on the other hand, have sales per square meter exceeding 30,000 yuan.

The main reason for this situation is Zhou Jiancheng's reckless expansion.

Looking at Song Yuncheng, who was speaking eloquently, Chen Yansen felt as if he were seeing his former self.

"Master, have I missed anything in my solution?"

Song Yuncheng pressed for an answer.

"The general direction is correct, but there are many details that have not been considered, such as Metersbonwe's organizational structure and data-driven capabilities. I originally wanted to give you the opportunity to lead a project on your own, but it seems that we will have to wait another two years."

Chen Yansen joked.

"I'm fine with just working on it," Song Yuncheng muttered to herself.

"It's worthless."

Chen Yansen commented.

The street scenes outside the car window kept flashing past as the car sped along the elevated highway.

Soon after, a building bearing the Metersbonwe brand logo came into view.

The last time I came here, Pinbei had just been established and its app hadn't even been developed yet. This time, Pinbei is about to go public.

Zhou Jiancheng, accompanied by 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, so he quickly took the elevator from his office to the lobby on the first floor.

He was originally waiting in the rest area, but then he changed his mind and got up and ran outside to show his sincerity.

In the apparel industry, he is one of the leading companies in East China, with more than 200 OEM factories around him relying on Metersbonwe for their livelihood. However, in front of Chen Yansen, he cannot put on any airs.

Three years ago, when he first heard the name "Chen Yansen," the man was just a small business owner of an e-commerce website, but now he has become the richest man in China and the richest man in the world.

Furthermore, Pinduoduo is about to go public, with a market value of up to 880 billion US dollars based on the offering price.

But what about him?
The business has been getting worse and worse in the past two years. This year, the revenue is only slightly over 70 billion yuan, and the profit is less than 4 million yuan.

It's simply incomparable to Chen Yansen's wealth and industry status.

At that moment, Min Jie caught sight of a black Maybach slowly approaching, followed by two Mercedes-Benz vans. He immediately nudged Zhou Jiancheng's arm and whispered, "Boss, President Chen has arrived."

Zhou Jiancheng immediately snapped out of his daze, grinned, put on a smiling expression, and took two more steps forward.

He had intended to open the car door for Chen Yansen, but a quick glance revealed that besides Min Jie, there were two other senior executives from the group. Unable to bring himself to do it, he quietly withdrew his hand halfway through and instead waved towards the car door.

Only when the Maybach's window slowly rolled down, revealing Chen Yansen's upper body, did he quickly put on an even warmer smile and say loudly, "Mr. Chen, it's been a long time! It's an honor to have you at Metersbonwe!"

As soon as he finished speaking, he felt that his words were too deliberate. He secretly glanced at the executives next to him out of the corner of his eye and saw that they all had the same respectful expression on their faces. Only then did his awkwardness subside a little.

"Mr. Zhou, please come visit Xucheng sometime so I can show you some hospitality."

Chen Yansen got out of the car, shook Zhou Jiancheng's right hand, and patted him on the shoulder.

Logically speaking, he was younger than Zhou Jiancheng, so his actions were somewhat inappropriate. However, given his wealth and status, the scene didn't seem out of place at all.

Zhou Jiancheng smiled broadly, seemingly unconcerned.

The fact that Chen Yansen came was a great honor for him.

Otherwise, given his status, if he were to discuss business normally, without considering personal relationships, he would at most only be qualified to meet Song Yuncheng.

Today, Pinduoduo is an e-commerce giant with an annual transaction volume exceeding 6000 billion yuan. Behind the scenes, countless major brands are scrambling to curry favor with Chen Yansen. If it weren't for his prompt response in bringing Metersbonwe to join Pinduoduo at its inception, offering a stepping stone when the platform most needed brand support, and leaving this small token of goodwill, it would be extremely difficult to even have a meal alone with Chen Yansen again.

"It's my fault! I'll definitely visit you another day."

Zhou Jiancheng said apologetically.

In China, anyone who can amass a fortune of billions is no ordinary person.

Even when facing Chen Yansen, who is nearly thirty years younger than him, he can put aside his airs and act all ingratiating.

After all, Pinduoduo is Metersbonwe's most important online sales channel.

"Mr. Zhou, you're too kind," Chen Yansen said with a smile.

"Mr. Chen, please! I know you love tea, so I specially sourced a few cans of tea leaves. You'll have to check them out for me later."

Zhou Jiancheng said with a smile.

The two exchanged pleasantries as they walked into the building.

On his second visit to Metersbonwe's headquarters, Chen Yansen keenly sensed the unusual atmosphere. A company experiencing a business downturn can be seen from the morale and spirit of its employees.

Upon entering the office, Zhou Jiancheng busied himself making tea for him.

"Mr. Chen, the apparel industry has been having a really tough time these past two years."

After working hard for half a day, Zhou Jiancheng held his teacup and sighed.

"I'll have President Song organize a few more brand group events for Meters later. The exposure rules for the 10 billion yuan subsidy program are currently undergoing a 'personalized' test, and Meters will be given priority consideration."

Chen Yansen gave a slight response.

"Thank you for your consideration, Mr. Chen."

Zhou Jiancheng grinned and quickly thanked him.

What he wants is not just a few insignificant resource slots, but a deep partnership with Pinduoduo.

So he explained, "Mr. Chen, as you know, Metersbonwe has had a lot of inventory buildup in recent years, and nearly 30% of its offline stores have been closed."

A few brand group events can at most clear out some out-of-season items, which is not enough to support the entire year's sales.

If you are willing to provide data, technology, and traffic support, all future product lines cooperating with Pinbei will have their profits split 60/40.

“Mr. Zhou, Pinbei is a B2C platform, and I don’t have the idea of ​​being both a referee and a player for the time being.”

Chen Yansen refused without hesitation.

Seeing Chen Yansen's firm attitude, Zhou Jiancheng had no choice but to put aside the first draft of the plan and instead talk to him about Metersbonwe's marketing plan for the coming year.

Simply put, they plan to spend heavily on Pinduoduo to buy traffic, acquire targeted customers, and compete for more promotional resources.

Chen Yansen understood the other party's intention and turned to Song Yuncheng, instructing him: "Personally follow up on the cooperation case with Metersbonwe and give President Zhou the highest possible discount based on the list price."

“Okay, boss,” Song Yuncheng replied immediately.

She knew Chen Yansen's tricks all too well; the so-called "highest discount" was actually no discount at all.

Given Metersbonwe's brand level and sales volume, a 20% discount would be the maximum they could offer.

"Thank you very much, Mr. Chen," Zhou Jiancheng said gratefully, raising his teacup.

Chen Yansen provided him with considerable support, but Metersbonwe's own products had shortcomings, resulting in poor conversion rates.

He is already quite satisfied with the extra marketing resources he has secured.

An hour later, the two ended their conversation.

At Zhou Jiancheng's invitation, the group traveled by car 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 them: "President Zhou!"

Zhou Jiancheng subconsciously turned around and saw a man walking quickly towards him. He was in his fifties, dressed in a suit and leather shoes. Although he was all smiles, there was a hint of worry between his brows.

"Mr. Yang, are you in Shanghai on a business trip?" Zhou Jiancheng asked casually.

The two were old acquaintances. The other party was the owner of Qingdao Taihua Group. He had worked as an OEM for Metersbonwe in his early years. Later, when Metersbonwe went downhill, he switched to supplying Uniqlo.

"Yes, Mr. Zhou."

Yang Weidong responded and then leaned forward politely, saying, "Mr. Chen, I've long admired your name. I didn't expect to meet you in Shanghai. I'm Yang Weidong, the head of Qingdao Taihua Group, which mainly does OEM business for branded clothing."

"Mr. Yang, it's a pleasure to meet you," Chen Yansen nodded in response.

Yang Weidong was eager to befriend Chen Yansen, so he ignored the fierce look Zhou Jiancheng gave him, shamelessly asked for Chen Yansen's contact information, then apologized and walked towards the private room in front.

"Mr. Chen, Taihua has been badly burned by Xiaoziri this year and has been looking for a buyer recently, wanting to sell a large garment factory."

After Yang Weidong left, Zhou Jiancheng, Chen Yansen, Song Yuncheng, and Min Jie went into the private room and sat down. Only then did he speak with a smile.

"You got tricked by Xiao Rizi?" Chen Yansen's eyes were filled with inquiry, and his tone was more interested.

“The yen has depreciated significantly this year, but Uniqlo happens to use yen as the settlement currency for payments to Thailand,” Zhou Jiancheng added.

Chen Yansen understood immediately.

For example, if the cost to Thai-Chinese is 500 million Chinese dollars, at the original exchange rate, the payment made by Uniqlo could be converted into 800 million Chinese dollars, resulting in a profit of 300 million. However, with the depreciation of the Japanese yen, the same amount of payment can now only be converted into 400 million Chinese dollars.

As a result, Thai Hua will not only fail to make money, but will actually lose money.

Of course, the actual depreciation of the yen this year was 20.9%, but the profit margin of the garment manufacturing industry was not high, so Thai Hua worked for nothing all year.

In principle, contract manufacturers usually require brands to settle in the cost currency or embed exchange rate buffer clauses in their quotations to transfer some of the exchange rate risk to the brand.

But clearly, Taihua didn't think too much about it in order to secure the big order from Uniqlo.

A garment factory?

Chen Yansen placed his finger on the table and tapped it casually.

The employee uniforms of Yunsu, Kuaipao, Orange Mobile Phone factories, and various subsidiaries under the group are basically custom-made by partners. Given this, instead of letting outsiders profit from this, why not acquire a factory themselves?

After all, orders from within the group alone are enough to support a factory.

Thinking of this, he squeezed the business card in his pocket, preparing to have the strategic investment department handle it later.

……

……

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 KuaiRun's Series C financing was held at the headquarters, not at a hotel.

Goldman Sachs offered $300 billion, Huazhong University of Science and Technology offered $285 billion, Hillhouse Capital offered $290 billion, and Tencent offered $305 billion.

Sands Ventures has the least, with only US$260 billion.

If Zhu Xiaohu doesn't raise his bid to 300 billion US dollars, he'll be the first to be eliminated.

(End of this chapter)