Reborn in 08, a heretical cultivator starting a business

Chapter 168: Destroying the Future of Alibaba and JD.com, a Billion-Dollar Unicorn!
Chairman Liu slapped his thigh in regret: "Ririshun delivers large home appliances even to villages!"

"If JD.com and RRS (Ririshun) form a strategic partnership, JD.com's logistics and warehousing for large home appliances can increase from 5 warehouses to 60 warehouses!"

"It can also cover all provinces, comprehensively reducing costs and improving timeliness in the logistics of large appliances!"

Several senior executives at JD.com also realized this and were filled with regret:

"That's right! Now, for large home appliances, all orders nationwide have to be shipped from the five major warehouses, and most of them have to be delivered across provinces, or even across several provinces. This is not only slow, but also costly."

"If we cooperate with RRS, we can ship from the nearest location, which will not only greatly increase the timeliness but also drastically reduce the cost!"

"What a pity, Wang Junshan beat us to it."

"Is it too late for us to cooperate with Haier now?"

"It has to be done in time. If we build our own warehouses, when will we reach 60 warehouses? When will we be able to cover even the villages?"

"Building your own position is a big problem in terms of time and capital. Using RRS is the most realistic option!"

"Yes, we must cooperate with RRS as soon as possible, otherwise Vipshop's large appliances will be delivered in two or three days on average, while JD.com's delivery takes an average of one week, and we will lose more than half of our orders. Our old customers will also go to Vipshop to shop!"

"Then our sales of large appliances on JD.com will plummet, and with low sales, we won't be able to get lower procurement prices, creating a vicious cycle!"

"That's right! Only by cooperating with RRS can we improve the delivery time of large appliances, keep up with Vipshop, and have the strength to continue competing with Vipshop!"

"We must cooperate with Ririshun as soon as possible!"

Everyone agreed, but Chairman Liu waved his hand dismissively:
"late!"

"Do you really think that Wang Junshan's 18 billion yuan investment in RRS was just to use RRS's logistics? There's nothing else to it?"

"Do you really think RRS can still cooperate with JD.com now?"

Upon hearing this, everyone's expression changed:
"Chairman, do you mean that Wang Junshan's investment in RRS was for two purposes: one is to secure RRS's large appliance logistics business, and the other is to gain enough influence to prevent RRS from cooperating with other platforms?"

"Damn it! That must be it!"

“RRS Logistics was originally valued at 25 billion to 30 billion yuan. With Future Technology’s massive investment of 18 billion yuan, it will definitely have more shares and greater say. Now, even if Haier is willing to cooperate with RRS, Future Technology will not agree.”

"Then our cooperation is doomed."

"Wang Junshan is trying to obstruct our cooperation with RRS, so that JD.com's large appliance logistics will never catch up with Vipshop!"

"Damn it! Wang Junshan's intentions are too insidious, too despicable!"

"So what? When JD.com introduced exclusive agreements, it was also to restrict major brands from directly cooperating with other e-commerce platforms."

"Now Wang Junshan is just following suit."

"That's right. If JD.com had the money and thought of this, we would do the same thing, or even do it more ruthlessly."

"That's a real problem. With Haier RRS Logistics, Vipshop's delivery of large appliances has been drastically accelerated, and it can easily deliver within 1-3 days. We at JD.com can't cooperate with RRS, and our delivery takes a week. How can we compete?"

Chairman Liu's expression also turned serious: "This is the biggest problem. JD.com's biggest advantage is its self-operated, authentic products and fast logistics for large appliances, with door-to-door delivery."

“But now, Vipshop is also self-operated. Its logistics for large appliances used to be slower than ours, but now with RRS, it can be much faster.”

"As a result, JD.com has lost its moat in 3C products and large appliances, and has also lost its logistics advantage, leaving it with no advantages at all!"

"Going forward, which brands will still sign exclusive agreements with us?"

"The focus will even shift to Vipshop in the future!"

"All that awaits JD.com is stagnation and continued decline!"

"This..." Everyone fell silent, but had to admit that it was indeed possible, even highly likely.

In the past, major appliance brands chose JD.com, and even signed exclusive agreements, because they valued JD.com's influence and sales volume in the major appliance market.

Consumers choose JD.com because they value its fast delivery of large home appliances and its self-operated products that guarantee authenticity.

But now, all those advantages are gone, and Vipshop has surpassed them, making them Vipshop's own advantage.

What happens?
Brands will abandon JD.com, and consumers will also abandon JD.com.

They've all gone to Vipshop!
This is a disaster for JD.com, a devastating disaster.

The problem is, JD.com doesn't have a good solution yet.

Chairman Liu was so worried that he kept sighing.

Alibaba headquarters.

Jack Ma's expression was grave:
"Wang Junshan is really pulling out all the stops."

"We have just planned to establish Cainiao Logistics, integrating the four major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express) to compete with future technologies and future logistics."

“We only had the idea, and hadn’t even started to act yet, but Future Technology made a big move and directly invested in Ririshun strategically.”

"And they were quick, accurate, and ruthless, leaving us no time to react."

“Once Vipshop integrates RRS Logistics and warehousing, it will be a disaster for our Taobao Mall. At the very least, our large appliance business will be doomed.”

"Sigh! This is indeed a problem." Li Yong sighed deeply.

"More importantly, even if we integrate the four major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express), we can only improve the timeliness of small-parcel logistics. They are not good at large appliance logistics or bulky item logistics!"

"Yes, what are we going to do?" The other executives panicked too!

“In the past, logistics for large home appliances were slow, and so were ours, but that didn’t matter.”

"But Wang Junshan doesn't play by the rules. He directly invested in RRS. Once RRS's logistics and warehousing resources are integrated, Vipshop's delivery efficiency and revenue for large home appliances will likely improve rapidly."

"And our large home appliances on Taobao Mall were completely ruined. We couldn't solve the logistics problem, so it was very difficult to succeed."

"The faster they integrate, the more passive we become in the large appliance market."

"Now we can only hope that their integration process will be slower, giving us six months to address our shortcomings and find a way out."

Jack Ma sighed: "I hope so, and hopefully the integration efficiency of future technologies will be low enough. Otherwise, it will be a real problem. Large appliances are very important, and we at Taobao Mall will have to find new logistics solutions for them."

Li Yong hesitated, "This is not easy to find. I'll try asking at Gree and Midea, but the chances are slim."

"Gree's logistics and warehousing are all handled by distributors across the country, and they don't have enough control over them, making cooperation difficult. Midea's Anzhi Logistics has never cooperated with external parties. Its warehousing is also not as extensive as RRS's."

"Let's think of a solution! Large appliances are very important. We absolutely cannot let Vipshop monopolize everything!"

Jack Ma sighed, "What bad luck! Ever since Wang Junshan appeared, nothing has been easy to manage."

Other senior executives shared the same sentiment.

In the past, logistics on major platforms were slow. It wasn't until after 2010, when Cainiao Logistics was launched and integrated the four major express delivery companies (STO Express, YTO Express, ZTO Express, and Yunda Express), that Taobao began to accelerate its logistics across the board.

In the past, logistics for large appliances were even slower. It wasn't until around 2013, when JD.com and Taobao Mall successively partnered with RRS, that the speed was dramatically increased.

But now, in 2008, Wang Junshan has partnered with Ririshun to accelerate its operations across the board.

This caught Alibaba and JD.com completely off guard!

JD.com, in particular, was completely stunned.

JD.com's self-built logistics system for large appliances, which was once far ahead, has now fallen to the bottom.

Chairman Liu was so angry he wanted to curse.

At present, both parties can only hope that the integration of technology into Ririshun will be as slow as possible.

It would take at least six months, or even a year, for the integration to be complete and for it to take effect. That would give Alibaba and JD.com a chance to catch their breath!
If the integration happens too quickly, and Alibaba and JD.com can't find a new way out, then things will get complicated!
But Wang Junshan would not do that.

Immediately after signing the contract, he attended Ririshun's board meeting, along with Tang Zhi and Jiang Fan.

Future Technology holds 47.37% of the shares and has three board seats, all of which were given to Tang Zhi and Jiang Fan.

This is to facilitate the integration of warehousing and logistics resources.

Haier, on the other hand, has four representatives, with Chairman Zhang taking one of them.

The other three are Liang Hai, Vice President of Haier Group; Zhou Yujie, Vice President of Haier Group; and Xie Juzhi, President of Haier Ririshun.

Liang Hai is in charge of core businesses such as refrigerators and washing machines, and is Zhang's successor.

Wang Junshan remembers that in a few years, he would be the next chairman of Haier!

Zhou Yujie is in charge of Haier's strategy and information technology, and will be the successor in the next two years!

Xie Juzhi was the head of Haier Ririshun.

He also advocated for RRS Logistics to move from a closed to an open model, gradually becoming independent from Haier and transforming into a socialized service provider.

It can be said that it was because of his existence that Ririshun was able to open up and cooperate with third-party companies.

Otherwise, RRS would be like Midea's Anzhi Logistics, operating in a closed system and only serving its own company.

Chairman Zhang chaired the meeting:

"Welcome Chairman Wang, General Manager Tang, and General Manager Jiang to the Ririshun family."

There was a round of applause.

Ririshun was very excited about Wang Junshan's investment.

No other reason than their financial backers.

They spent 18 billion in one go!
When Xie Juzhi received the news, he was almost stunned!
He thought that having eight or ten billion would be pretty good.

But unexpectedly, it was 1.8 billion!
More importantly, this is not just a big spender, but also a client.

Wang Junshan brought not only funds, but also a huge order from Vipshop!

This combination of a major investor and a client creates a powerful synergy, making them someone no one can afford to offend.

"Thank you everyone. I hope we can work together to make Ririshun bigger and stronger, and aim for a valuation of 10 billion next year!"

"Bravo!" Another round of applause erupted.

It's clear that everyone is very excited.

Chairman Zhang then changed the subject: "Next, we need to elect a chairman. I think since both of our companies are in this position, we can skip the formal selection and have it rotated, with each side serving for two years. Chairman Wang will serve as chairman for now. What do you think?"

Upon hearing this, Tang Zhimeng was dumbfounded.

Jiang Fan also found it unbelievable.

Even Wang Junshan was somewhat surprised.

Although Future Technology holds more than 47% of the shares, Haier is still the controlling shareholder.

If I really had to choose, 4:3, I'd still go with Haier.

Unexpectedly, Chairman Zhang directly gave up the election and changed to a rotating system, even letting Wang Junshan take the position first!

All I can say is that they know how to handle things!

She's so good at handling things!
But thinking about it, it makes sense; the money comes from future technology.

The next orders will also be provided by Future Technology.

What is Haier vying for?
Even though Chairman Zhang is the head of Ririshun's board of directors, he still has to listen to Wang Junshan on key issues.

Having both a major investor and a controlling shareholder is more effective than having a controlling stake.

If Wang Junshan shirks responsibility and refuses to place orders, Haier Ririshun will also be crippled.

If Wang Junshan withdraws his investment, Haier Ririshun will not only fail to reach a valuation of 10 billion yuan, but its listing will be impossible, with a valuation of 4 billion yuan being out of reach.

It will also directly revert to its original form!

Rather than doing that, it would be better to do Wang Junshan a favor by delivering water and let him take on the role first.

With Haier and Ririshun working together in a friendly manner, Ririshun can make a lot of money and develop well, which is better than anything else.

A harmonious family brings prosperity, and the same applies to businesses.

Wang Junshan smiled faintly: "Since Chairman Zhang trusts me so much, then I shall accept it without hesitation."

"There are three major things to do next."

"The first major task is integration."

"Future Technology has developed an order and warehouse management system for YouTuan.com, and we need to connect RRS Logistics and Warehousing System API to the YouTuan.com system as soon as possible."

"After successful integration, Vipshop's self-operated large appliance purchases can be shipped directly from the manufacturers to RRS's warehouses across the country."

"After a consumer places an order, the system dispatches the order from the nearest warehouse of RRS, delivers it to the customer's door, and installs it."

Xie Juzhi's eyes lit up: "No problem. The operations department will immediately select its best personnel to connect with YouTuan.com! We will strive to connect to the future e-commerce order and warehouse management system as soon as possible, achieve system connection within seven days, and achieve full integration of warehousing and logistics resources within half a month."

“Very good!” Wang Junshan nodded:
"The second thing is the rural appliance subsidy program. This wave is an opportunity. It will officially start around February next year. We, Ririshun, also need to prepare in advance, bid for it, and win the rural appliance subsidy program!"

"Finally, we need to build large warehouses as soon as possible. Vipshop will definitely see a surge in orders for large appliances next year, and there will also be an increase in orders for home appliances in rural areas. The existing warehouses may not be enough at that time. Logistics capacity will also be tight."

"The first installment of the 18 billion yuan investment will arrive soon. We can take advantage of the current 4 trillion yuan stimulus package to actively apply for the national key logistics park project and expand the large appliance warehouse as soon as possible!"

Chairman Zhang strongly agreed: "Yes, with the current four trillion yuan subsidy, we can save 20% on costs. This is an opportunity we can't miss. With Haier and Future Technology jointly backing us, applying for a national key logistics project will be no problem at all. We must seize this opportunity to build a sufficient warehousing and logistics network!"

"Whether Ririshun can achieve a valuation of 10 billion next year depends on these three points!"

Wang Junshan made all the arrangements, which everyone approved of.

These three points are of utmost importance.

It's also an opportunity—an opportunity to reach a valuation of 10 billion!

Without any hesitation, Tang Zhi immediately took the lead in arranging for Vipshop's technical staff and RRS's operations and maintenance department to conduct system-level integration.

Similarly, RRS employees also began a series of training sessions to prepare for handling Vipshop orders.

Both the warehouse staff and logistics personnel at RRS are very attentive to this.

During the economic crisis, money is becoming increasingly difficult to earn, and orders are decreasing.

Many logistics companies are laying off large numbers of employees, exacerbating unemployment.

Companies that did not lay off employees also significantly reduced salaries due to a decrease in orders.

Meanwhile, Ririshun is also facing some difficulties, having already implemented salary reductions and even layoffs.

Now things are much better. With a large number of orders from Vipshop, they not only stopped laying off employees, but started to expand their recruitment!
Income can also increase.

How could the employees not be happy?
With the concerted efforts of all parties, everything is progressing smoothly and efficiently!
(End of this chapter)