Reborn in 08, a heretical cultivator starting a business

Chapter 154 JD.com? Vipshop? White Goods Giants, A Fateful Choice!

After the economic crisis, the domestic stock market generally reached its lowest point in early November.

Following the news broadcast's report on the 4 trillion yuan infrastructure project, many industries began to show signs of recovery, and stock prices started to rebound.

By February next year, as the four trillion yuan stimulus package is gradually implemented, the stock market and the economy will begin to recover.

In the second quarter, the domestic economy bottomed out and rebounded in a V-shape, achieving a full recovery.

The stock market is booming, the economy is booming, housing prices are booming, and everything is looking up.

But it's different abroad.

The global financial crisis is W-shaped; after a brief false recovery at the beginning of next year, there will be a second wave of sharp decline.

Therefore, the floor price of many foreign companies' stocks will appear in March or April of next year.

Is this the case with Citibank?
Wang Junshan wasn't sure either.

However, these financial companies were among the hardest hit by the global financial crisis and are unlikely to escape the second wave of the crash. Their stock prices are likely to be even lower next March, perhaps even lower than they are now.

After careful consideration, Wang Junshan plans to wait until March or April next year to buy at a lower price.

In contrast, Ford and Netflix are more reliable options.

The former, the automotive industry, is one of the key sectors driving the US economic recovery.

China's urbanization is insufficient, so it can focus on large-scale infrastructure projects.

Urbanization in the US is long over, and large-scale infrastructure projects are no longer feasible, so the recovery of the automotive industry has become a good option.

As a top global automotive giant, Ford cannot afford not to recover. Even if there is a second wave of sharp declines, Ford's stock price will fluctuate, but it will not fall any lower.

The same goes for Netflix; it's perfectly fine to buy at the bottom now.

But it's hard to say about Citibank.

"Cui Qian, keep an eye on Citibank and see how things go next year, especially around March when it reaches a much lower price than it is now. That would be a good time to buy at the bottom."

“Okay, boss,” Cui Qian replied.

"I'll get back to work now!"

"Go ahead!" Only then did Wang Junshan notice that Cui Qian, who usually wore a suit and trousers, was wearing a cotton dress today.

It perfectly outlines her graceful figure.

However, unlike Shen Huaijin, who is probably a C grader and very capable.

While Cui Qian also has a slim waist and a large bust, she is probably a B cup, and overall she looks tall and thin.

Seeing Wang Junshan looking at her, Cui Qian smiled sweetly before turning and leaving.

He couldn't suppress the smile on his lips: "The boss looked at me, which at least means he's not completely uninterested."

"Yes! There's a chance!"

Then, he stood there awkwardly, only to see Shen Huaijin across from him holding a coffee, looking at him with a cold expression.

Cui Qian nodded to Shen Huaijin and walked away.

Shen Huaijin, however, made no comment.

"Sure enough, she likes the boss too!" Cui Qian thought to herself.

She used to have a good relationship with Shen Huaijin. Every time they met, she would greet him and call him Sister Qian.

Cui Qian would share any delicious food or fun activities with Shen Huaijin.

After all, beautiful women prefer to be friends with other beautiful women.

But in the last two days, things have completely changed, and they've become enemies!
“I called the boss yesterday, and Huaijin is ignoring me today.”

"No, they ignored me yesterday."

"Indeed, women understand women best!"

Before anyone else could see anything, Shen Huaijin had already noticed something amiss.

This is not easy to do.

Does the boss like her too?
I heard that the boss always brings her with him when he comes to the capital.

They still live together.

Could it be that...

Hey!
I'm late getting back to China.

But there should still be a chance!

Cui Qian returned to the investment department, shook her head, stopped thinking about it, and quickly got into work mode, starting a series of arrangements.

One capable subordinate after another was dispatched, one transaction after another was negotiated, and funds were quickly transferred out.

In the following days, Cui Qian was extremely busy.

She had to personally arrange, oversee, and review every single transaction.

I'm afraid something unexpected might happen.

As a result, I was extremely busy, working overtime until very late every day.

Especially when buying stocks of foreign companies, the US stock market opens at night in China, so all operations have to be done at night.

I drank one cup of coffee after another.

When you're really tired, just sit down in a chair and take a short rest.

Thinking about the boss again, I suddenly felt less tired and even full of energy.

They are just like those fans and fan site administrators who stay up all night to vote and support their idols, working tirelessly for their idols.

Cui Qian is a case in point right now.

The work assigned by Wang Junshan was not only a superior's instruction and a responsibility, but also Cui Qian's heartfelt desire to help Wang Junshan manage things well, do them well, and do them perfectly!

They care about it even more than they would about managing their own assets.

Even his trusted secretary, Xiao Cai, sensed something was amiss:

"Sister Qian, you've been working hard for three days straight without getting a full night's sleep. Can your body handle it?"

"It's alright, I can manage. We have to keep a close eye on things; we can't afford any problems."

"Sister Qian, it's right that you're taking responsibility, but you also need to take care of your health. It's all work, and the boss hasn't set a deadline, so why don't we slow down a bit?"

"That won't do. I feel that stimulus policies will be introduced soon, and we must take advantage of the situation before they are introduced to buy at the bottom. In particular, we must acquire all the domestic stocks, and we must also actively connect with overseas stocks."

"Alright then." Xiao Cai said with a hint of helplessness, "I've never seen you care this much about your own affairs."

"Hehe, I can take my time with my own affairs, but the boss's affairs must be done perfectly. Everyone, please keep up the good work. I'll treat everyone to dinner tonight," Cui Qian said with a smile.

JD.com headquarters.

Chairman Liu was furious: "We've already lowered the markup percentages for all of them, and Gree, Midea, Haier, Hisense, and Philips still haven't signed contracts?"

"Chairman, not yet, but our people are actively contacting them and pushing forward with all their might. With such a low markup, we're sure we can secure it."

"Yes, we have to hurry. We absolutely cannot let Vipshop take over the white goods business, otherwise we'll be finished!"

"Yes."

With Lao Dong's encouragement, the key account manager pushed forward with all his might, greatly increasing the efficiency of the process.

Haier headquarters.

"Mr. Guo, this markup is extremely low, unprecedented. And JD.com's position in the large appliance industry is even more formidable. There's really no need for you to hesitate now."

“With our markup and sales volume, other platforms simply couldn’t achieve the same results,” Ding Yao earnestly explained.

Mr. Guo was somewhat troubled: "But Vipshop's sales are also very good, and the momentum is very strong. Once we sign your exclusive agreement, we can't do business with Vipshop anymore, nor with platforms like Taobao Mall, right?"

"Mr. Guo is joking. Vipshop's sales mainly come from other categories. They can't handle large appliances. Even the simplest problem is delivery."

"JD.com has invested heavily in building its own large appliance logistics team, providing point-to-point delivery that is both fast and reliable. What do Vipshop and Taobao Mall have? What can they compare to us?"

Mr. Guo waved his hand: "You have to walk your own path. JD.com's logistics for large appliances is indeed very good, but Vipshop and Taobao Mall also have their own methods, right? Nothing is absolute."

“Alright, Mr. Guo, whatever you say goes. I won’t argue with you, brother. Here’s the deal: I’ll toast you this glass, and then I’ll ask the chairman to lower the price for Haier by another percentage point. Do you think that’s enough sincerity?” Mr. Guo smiled: “Is that good enough? I’ll drink this one with you!”

"Dry!"

Ding Yao lowered his glass, clinked glasses with President Guo, and drank it all in one gulp.

He then got up to contact Chairman Liu and request a further reduction of one percentage point.

Chairman Liu was somewhat indignant:

"Large appliances aren't like 3C products; their logistics and warehousing costs are already very high. Offline retailers add 25%-30% to the factory price, while JD.com only adds 15%-20%, offering exclusive discounts to these major brands at only 13%. Still complaining it's too high? Wanting to lower it? Really..."

Lenovo's laptops and mobile phones are small in size, resulting in very low warehousing and logistics costs. Even with the shipping box, the cost only accounts for about 1%-1.5%. Even with a 10% markup, JD.com can still make a profit.

However, large home appliances are generally much cheaper than laptops and mobile phones, but they are much larger!
Warehousing and logistics costs are ten to twenty times higher than those of 3C digital products, accounting for approximately 7%.

Add in marketing, taxes, and other costs, and even with a 13% markup, there's no profit to be made, and losses are possible.

It's not even as good as Lenovo's 3C products with a 10% markup.

If the price is reduced to 12%, JD.com's losses will be even more severe.

This year we just started making large appliances. In order to expand the market, it's normal to not make a profit and even lose money to subsidize.

But we can't afford to lose too much money!

It's worth noting that the previous exclusive agreement had a 15% markup!

This year, due to the impact of Vipshop and Taobao Mall, the price has dropped to 13%, and JD.com has already suffered huge losses!
"This is outrageous! They're taking advantage of our misfortune!" Chairman Liu was furious.

"Chairman, there's nothing we can do. We simply can't negotiate a 13% reduction. The situation is beyond our control."

"Well, yeah, 12% is fine. It's much better than Haier siding with Vipshop. We have no other choice."

As expected, Chairman Liu agreed, and Ding Yao was in high spirits. He promptly went to see General Manager Guo:
"Mr. Guo, you are well aware of the market situation. The warehousing and logistics costs for large appliances are already 7%. When we purchase your products, we only add 13% to the price. After deducting the logistics and warehousing costs, taxes, and operating costs, we are still losing money. However, Chairman Liu is optimistic about Haier and appreciates Mr. Guo, so he made an exception and agreed."

"Just 12%! In this partnership with Haier, JD.com isn't looking to make money; it's just about making friends."

"Mr. Ding is so generous, let's do it!" Mr. Guo was in high spirits.

Compared to 13% last year and 25%-30% offline, this year's 12% is something I never dared to imagine.

It can only be said that the more e-commerce companies profit, the better, and brands benefit from it.

Ding Yao quickly had his secretary draft the contract, but just as both parties were about to sign it, General Manager Guo's phone rang.

"Who is it that's calling at this hour?"

Mr. Guo said impatiently, having originally intended to ignore it.

Upon seeing the caller's name, he immediately lost his composure:

"It's the chairman's call. Mr. Ding, please have some water first. I'll be right back."

"Okay, go ahead." Ding Yao didn't think much of it.

Vipshop simply cannot afford a 12% markup.

There's no other way. JD.com has built its own logistics and warehousing system for large appliances, which saves money and allows them to keep warehousing and logistics costs down to 7%.

A 12% price increase can still maintain a gross profit of two percent, but a net profit of negative three percent.

But Vipshop is not an option.

Vipshop doesn't have its own logistics for large appliances; it uses third-party logistics, which definitely increases the overall cost, by at least 9%!

With a 12% markup, Vipshop's gross profit is gone, let alone its net profit!
Absolutely unacceptable.

This is a markup percentage that can crush Vipshop and Taobao Mall!

Mr. Guo answered the phone: "Chairman, you wanted to see me?"

"Has the contract been signed?"

"It's about to be signed."

"That's good, then don't sign it."

"What?" President Guo was startled: "Chairman, we're not signing an exclusive agreement with JD.com this year? They offered a 12% markup."

"12%?" Chairman Zhang was somewhat surprised: "It seems that Vipshop has really pushed JD.com to the brink, even accepting 12%. But even so, we can't sign it."

"Why? 12% is already the lowest it can go; it can't go any lower."

Chairman Zhang sighed: "I just received news that Wang Junshan has bought a large number of Haier shares, as well as Midea shares and Gree shares, becoming one of our shareholders. Although he is not a major shareholder yet, the amount is not small."

"This……"

Mr. Guo's expression changed drastically, and many thoughts came to mind in an instant.

If you're not a shareholder and don't hold a large number of Haier shares, then it doesn't matter.

Giving up Vipshop and signing an exclusive agreement with JD.com is also fine.

But Wang Junshan didn't play by the rules and bought so many stocks!

That's different.

Both Vipshop and Vipshop's stance need to be redefined.

Wang Junshan would definitely be unhappy if he continued to sign an exclusive agreement with JD.com.

If he gets upset, he could dump the shares at a certain time, and Haier would suffer heavy losses.

If it weren't for the financial crisis, Haier would have been at its peak last year, with a market value of over 30 billion yuan, so it naturally wouldn't have been afraid.

Wang Junshan's purchase of 100-200 million yuan is just a drop in the bucket.

But right now is the darkest moment of the global financial crisis, and even giants like Haier have been severely impacted.

Its market value has evaporated by more than 70%, leaving only 54 billion.

In this situation, they're not tough at all.

With Wang Junshan investing 100-200 million yuan, he becomes a very important shareholder!
Even if JD.com offered 10%, let alone 12%, I wouldn't sign the contract.

We can't afford to offend future technologies!

Conversely, Wang Junshan invested in Haier and became a shareholder.

The collaboration between Haier and Vipshop can be considered a strategic alliance, which could lead to better development.

Did they offend Future Technology, a shareholder, and choose to go down a dead-end path by exclusively partnering with JD.com?
Or should we abandon our exclusive partnership with JD.com and embrace our shareholder Vipshop with an open attitude, developing together on multiple platforms such as Vipshop, JD.com, Taobao Mall, Suning.com, and Gome Mall?

Without a doubt, the latter is clearly more delicious!
After thinking it through, Mr. Guo said, "I understand, Chairman. I will cancel the exclusive agreement right away."

"Yes, the era of JD.com is over. If Vipshop comes to cooperate next, we must be humble and try to find a mutually beneficial partnership."

"Okay, Chairman."

Back in the private room, Ding Yao raised his glass: "Come on, Mr. Guo, let me toast you again!"

Mr. Guo waved his hand and said, "Mr. Ding, I'm sorry, I just received a call from the chairman. We can't sign the exclusive agreement."

"What? We can't sign it?"

Ding Yao was dumbfounded: "12%!"

"We'll give Haier 12%!"

"How could you refuse? This is a price that no other platform can offer!"

"I'm sorry, Mr. Ding, I can't say more about the reason. I can only apologize and offer you this toast!"

Mr. Guo picked up his glass and drank it all in one gulp.

"good, very good, excellent!"

Ding Yao nodded, slammed his wine glass on the table, and stormed off.