Reborn in 08, a heretical cultivator starting a business

Chapter 177 Grand Strategy: The Smart Home Industrial Park of the Future! (Seeking monthly votes!)

“Junshan, your YouTuan group buying has launched community group buying again. I find it very interesting. The prices are very cheap, and it has everything. It’s 15% cheaper than the nearby supermarkets!” Principal Li said.

"Huh? There's community group buying too?" Principal Song was bewildered.
"Similar to campus group buying? Good quality and low price? Next-day delivery?"

Wang Junshan nodded: "Yes. In the past, only one person in a family might work, and the other person would have time to buy groceries and cook. But now, many families have two working parents, and they are too tired after get off work to buy groceries."

"The launch of YouTuan community group buying perfectly solved this problem."

"Place your order the day before. Fruits, vegetables, daily necessities, flowers and plants, everything you need, will be delivered directly to the self-pickup point at the entrance of the community or to the group leader's home."

"I can just grab it after get off work and do it when I get home."

“This model is great. The small supermarket in our residential building doesn’t have all the goods. Going to a big supermarket takes 40 minutes to an hour for the round trip, plus shopping and checkout. Your model takes less than five minutes. It’s great, and most importantly, it’s cheap.”

Another Principal Qian chimed in, "My wife uses it; it's the small supermarket in our staff quarters, the self-pickup point."

"Oh? That's so convenient, I hadn't noticed."

Principal Song was somewhat surprised: "But won't your community group buying initiative affect the small supermarket's revenue?"

Wang Junshan laughed and said, "For items that we need urgently, we still have to buy them from the small supermarket. For items that we don't need urgently, we will indeed take away some of the small supermarket's business, but the small supermarket also gets a commission as a pick-up point."

"More importantly, many of the SKUs, or product categories, offered by YouTuan Group Buying are not available in small supermarkets, so the commission from these items is pure profit."

"As a pick-up point, the small supermarket is where group-buying users come to pick up their goods every day and also buy other items, increasing the supermarket's revenue and customer traffic."

"Overall, small supermarkets that are run well can actually earn more money."

"I see, such a novel model, I never even dared to imagine it before." Principal Song exclaimed with deep emotion:

"Junshan, were these things you planned when you first participated in the entrepreneurship competition? From winter melon to watermelon, from campus group buying to community group buying?"

Upon hearing this, everyone else also became interested.

If that's the case, then it's terrible.

A comprehensive system, progressively layered, a completely new model!

And it's highly feasible, with immense potential!
Especially in the internet age, young people don't have that much time to go to supermarkets and farmers' markets every day.

Community group buying, on the other hand, is incredibly promising and has a bright future.

Wang Junshan did not answer directly, but instead said, "The development of e-commerce has changed the shopping model, and the launch of group buying will change the consumption model again. Currently, community group buying is only being piloted in three cities, but the pilot results are quite good."

"Although the initial orders were not particularly many, the combination with future express delivery has already been able to keep the business running, and it will get better and better in the future. This month, we will expand to more cities."

The leaders nodded, their gazes towards Wang Junshan filled with even greater admiration.

Even after dinner, when they returned to their apartment building, they were all filled with emotion:
"Junshan's business thinking is too advanced, at least five years ahead of us."

"Five years ahead of us? I reckon Jack Ma is five years behind him!"

"That's true. Campus group buying is one thing, but community group buying? Who would dare to even think about it? Can it even be done?"

"Yes, how many people will actually place an order for community group buying? We can't even cover the warehousing and logistics costs."

"But Wang Junshan knows how to play the game. It's true that it's hard to break even if you do community group buying alone. He's integrated community group buying with e-commerce logistics!"

"A single warehousing and logistics system can handle both community group-buying and campus group-buying orders, as well as logistics for YouTuan.com e-commerce. 1+1 is greater than 2. Not only have we broken even, but we can also generate profits!"

"Doing group buying alone resulted in losses! Doing warehousing and logistics alone also resulted in losses. But by combining the two businesses, we went from not being able to break even to making a substantial profit! That's Wang Junshan's brilliance!"

"There's also social networking among acquaintances, which everyone thinks has no future and is difficult to monetize. But Wang Junshan has integrated social networking among acquaintances with games and e-commerce, and that's a game-changer!"

"Wang Junshan's ability to plan and integrate resources is terrifying. Of course, what's most terrifying is his strategic thinking."

"Yes, without forward-thinking strategic thinking and outstanding business foresight, you simply can't come up with these models, let alone integrate them!"

"Yes. Wang Junshan might just be the next Jack Ma!"

"Future technologies will also become giants like BAT (Baidu, Alibaba, Tencent)!"

"Our Binzhou University has produced a talented individual. We should support him as much as we can, and this will add a glorious chapter to the history of Binzhou University!"

"So Lao Song isn't opposed to Little Duck washing machines being brought into schools!"

"Haha! Let me make this clear beforehand: a twin-cylinder 300-watt engine is fine, but a fully automatic one won't do, it's too much of a load."

……

Little Duck Factory.

When the good news came back, factory manager Li Ming's hands were trembling as he held the phone:

"What? More than 30,000 units have already been sold in half a day, and we expect to sell out all 70,000 units today?"

"Really?"

"Great!"

"Thank you!"

"Thank you so much!"

"Thank you, Chairman Wang; thank you, Vipshop; thank you, Future Technology!"

"Thank you."

"If it weren't for you guys, we don't know when we would have been able to sell our inventory of over 70,000 ducks."

"Thank you."

"Thank you so much!"

"Chairman Wang, you are my benefactor, our benefactor!"

Listening to Li Ming's continuous thanks, Wang Junshan was also deeply moved:

"Director Li, you flatter us. The group and Vipshop will fully support Xiaoya. The first payment has already been made. You can bring in raw materials and start production as soon as you want. Don't worry, we will supply whatever you have."

"Thank you so much, boss!" Li Ming exclaimed excitedly.

He felt a bit resentful after Wang Junshan's sweeping reforms, which showed no mercy.

But now I understand that Wang Junshan did it for the ducklings' own good!
The pace of the past is really outdated.

Wang Junshan has no choice but to reform.

"As the boss, this is what I should do. But at this pace, it's not enough to meet demand. I need to arrange for the shipment of all the new products that have already been produced in the factory as soon as possible, and coordinate with future logistics."

"Okay, boss, don't worry!"

After hanging up the phone, Li Ming was filled with emotion. He wiped away the tears from the corners of his eyes before walking out of the office and smiling at everyone.

"Just now, I received a call from the boss. This morning alone, we sold over 30,000 Little Duck washing machines, bringing in over 30 million yuan!"

"what?"

"Oh my god! Is this for real?" All the employees were stunned.

"More than 30,000 units in one morning, how did you manage that?"

“Chairman Wang said it himself, how could it be false?” Li Ming said with a smile.

"The boss truly lives up to his reputation as a business legend; he keeps his word. It's incredible." Everyone was deeply moved.

Li Ming nodded: "Produce as soon as possible. The products produced these days are ready to be shipped out. This afternoon, the logistics company will come to load them onto trucks and transport them all away. There simply isn't enough to meet demand."

"Everyone is working at full capacity, putting in extra hours to catch up. Chairman Wang has saved the little duck!"

"Under Chairman Wang's reforms, everyone can earn more wages and have better career prospects."

"The days of not receiving wages for six months and having social security contributions lapse for a year are gone forever!"

Everyone was excited:

"That's great!" "Thank you, Chairman Wang!"

"Chairman Wang is our great benefactor!"

"If it weren't for Chairman Wang, Little Duck would probably have gone bankrupt, and we would all have lost our jobs."

For a moment, the little duck was full of fighting spirit.

Production efficiency has begun to improve.

There's no way to meet the demand!

As expected, almost all of the more than 75,000 Little Duck washing machines in stock were sold out that day.

Only a few hundred 20kg commercial drum washing machines remain.

There's no way around it, price is the biggest weapon!
Just like the Redmi 1st generation in its previous life, which was priced at 799, it was a game-changer and its sales exploded.

Little Duck is an established brand that used to be in the news and newspapers every day, and was one of the three giants.

Today, the brand is not as good as it used to be. It can no longer reach the level of first-tier brands like Haier and Siemens, but like Little Swan, it is still a second-tier brand.

Midea originally did not have a washing machine business.

In 2000, it acquired Rongshida washing machine, using Rongshida to enter the washing machine market, focusing on the low-end market.

However, Rongshida couldn't even make mid-range products, and its technology was inferior to Little Swan and Little Duck, which left Midea feeling quite helpless.

Later, Little Swan was on the verge of bankruptcy and was restructured by Sweet. Like Little Duck, it was badly screwed over by Sweet and almost went bankrupt.

Midea seized the opportunity and acted decisively!
In April of this year, Midea acquired 24.01% of Little Swan's shares!
With the support of Midea's resources and channels, Little Swan, which was on the verge of bankruptcy, began to recover, and its monthly sales in the second half of the year climbed steadily.

The duckling's current situation is similar to that of the cygnets before it.

They were all once the three giants of the washing machine industry, all declined, and were all badly ripped off and emptied out by Sweet.

In 2008, they were all saved and reborn by the white knight!
The only difference is the timing; Little Swan was in April, but it has already made a strong comeback.

The ducklings are only just beginning to recover at the end of November.

Unlike the White Knight, Little Swan is backed by the electronics giant Midea.

Little Duck, on the other hand, relies on the future technology of e-commerce giants!

The two companies operate in different industries, and the resources they bring are also different.

In its previous life, Little Swan was partially acquired by Midea in 2008, which led to its rebirth. In 2013, it was fully acquired and subsequently returned to its peak, with a market value of over 50 billion yuan before delisting, becoming a mid-to-high-end brand.

After being delisted, it has made great strides, with annual revenue of over 40 billion yuan, which is truly astounding!
But the little duck in its previous life wasn't so lucky.

Without encountering a white knight in shining armor, it continued to decline, quickly faded from the market, and shifted to industrial washing.

Even if Little Duck washing machines were to restart after more than a decade, it would be too late.

However, with Wang Junshan's help, Little Duck can be fully revived and grow stronger.

It can also surpass its peak like Little Swan, relist within five years, and reach a market value of 50 billion within ten years!
With the resources of Future Technology and the support of Wang Junshan, they can go even further and have a chance to reach a market value of 100 billion!

Wang Junshan has prepared a series of trump cards and killer moves for Little Duck washing machines!

For example, the "Return of the King" series that brings the little duck back to its peak!
But all of this is still predicated on production capacity!

After the strong sales on the 1st, Little Duck washing machine sales should have dropped significantly on the second day.

But thanks to the concentrated coverage by provincial and municipal television stations, the little duck became popular again!
As a result, sales remained strong on the second day.

Although it wasn't as terrifying as the No. 1, which sold over 70,000 units in a single day, it still sold over 30,000 units!

More than half of them are orders placed within the province!

Fortunately, on the first day of acquiring Little Duck, Wang Junshan demanded that production capacity be maximized and all work and production resume.

We've produced another 20,000 units in the last few days.

Last night, we delivered 10,000 Little Duck washing machines to the Binhai Central Warehouse overnight.

The remaining 10,000 units will all be shipped to cities in central and western Shandong through Future Logistics.

Even so, there was still a serious shortage of production capacity!
Starting tomorrow, even if sales are halved again, there will still be more than 10,000 orders per day.

However, even with its current production capacity at full capacity, Little Duck can only produce about four thousand units a day.

With the previous inventory holding up, we can barely keep going these past two days.

But today's inventory is used up, and the supply will fall short of demand, leading to a complete shortage of stock, and delivery times will have to be postponed.

"Production capacity is a major problem!"

Wang Junshan sighed.

There's a daily production capacity shortfall of several thousand units, which is definitely not a good thing.

The solution is to increase the number of production lines.

Semi-automatic twin-cylinder engines are destined to become obsolete, so there's no need to add them.

However, the number of fully automated impeller and roller production lines will need to be increased significantly.

We also need to simultaneously introduce advanced technologies, recruit top talents, and establish a strong R&D team.

Only in this way can we develop the "Return of the King" high-end series and partitioned washing machines that Wang Junshan needs!
However, the current Little Duck Factory has limited space, and even if more production lines are added, it cannot be fully utilized.

Moreover, in a few years, the land will be demolished in phases and developed into real estate.

A new production line has been introduced, so we'll have to relocate again later.

It's not too much trouble.

Why not just acquire the land and build a future smart home technology park!
They put the new, advanced production line directly into the new industrial park.

The first major product we'll launch will be a dual-zone front-loading washing machine!
The future smart home industrial park could be expanded.

Partition washing machines are just the beginning.

Other smart home products can be launched later.

However, Wang Junshan does not plan to make some common product categories, but rather some new products that are not yet popular!
For example, water purifiers, dishwashers, robot vacuum cleaners...

These products are either currently in untapped markets or just starting out, so they are all worth considering.

Dishwashers and robot vacuums will be scarce in five years, and their prices will be exorbitant.

Even water purifiers are still a novelty, and many people have never even heard of them.

It wasn't until this year's Olympics, where the standard water purifiers in the venues were truly impressive, that they attracted public attention, but they were very expensive.

In the north, where the water is hard, water purifiers are a necessity.

In fact, water purifiers are very low-tech; you can even rub them by hand!
The profit margin is very high, so it's entirely worth it.

Moreover, it can be used not only for household water purifiers but also for community water purifiers.

This is currently a market gap.

Once you've installed water purifiers in your community and are short of funds, you can launch a promotion like "spend 100 and get 50 free" to raise a significant amount of money for investment and operation, all without paying any interest!
The profits involved are unimaginable.

A single prepaid card promotion can recoup the equipment cost in one go, and may even generate a profit.

Each barrel will then sell for one yuan, with a cost of only one mao (0.1 yuan), making it all profit.

In two years, community water purifiers may even drive the development of WeChat Pay!

(End of this chapter)