Among the future presidents of the United States. Reagan was a president who was very open to the outside world. During his tenure, many overseas groups successfully acquired large companies in the United States, including oil, automobile and other groups. This was difficult during the periods of other presidents. Moreover, he also gave great freedom to economic operations. It was also during his reign that he abolished many monopoly laws. For example, the regulations that prohibited Hollywood film companies from participating in distribution and theaters were abolished, allowing large Hollywood groups to start Massive expansion.
With such a president in office, many of your investments may be much more convenient in the next eight years. Therefore, it is still necessary to build good relationships. Not to mention that President Reagan will come forward to help you in the future, as long as you don't do the opposite.
In the following days, Chen Zhiwen met with the future president twice more. Chen Zhiwen painted a very large picture of the future electronics industry. Reagan gradually felt that the person opposite him had a profound vision and could actually predict the future product market structure. That's very clear.
However, in fact, Chen Zhiwen only picked some actual future situations, and did not say many things that were beneficial to him. Not to mention Reagan, even Jobs, who thought he had the strongest grasp of the product market, after decades of After years of market struggles and several ups and downs, it was impossible to judge the future market structure. For example, when the iPhone was launched in 2007, Jobs’ goal was only for Apple to gain 2% of the global mobile phone market, and he never thought that Apple would overthrow it. The entire mobile phone market at that time.
Maybe he didn’t win President Reagan’s friendship, but at least he was different from ordinary people who donated political funds. In Reagan’s eyes, Chen Zhiwen’s value was definitely extraordinary.
After the political donation matter was settled, Chen Zhiwen went to the second Costco supermarket in Los Angeles.
"The business here seems to be much stronger than our No. 1 branch in Los Angeles a few years ago." On the second floor, Chen Zhiwen looked at the shoppers downstairs, briefly recalled, and said.
"Of course, the Costco supermarket in the south has been operating for several years and is very well-known in Los Angeles. Over there in the north, there are some people who have become members long ago. Now we have opened another one here. These people It’s much more convenient, and many people nearby are also attracted by us,” Pierce said with a smile.
"Has the business of branch No. 1 been affected?" Chen Zhiwen asked.
"There is a slight impact, but it is not a big problem. If we can open more members here, the total sales will still increase a lot. In a big city like this, it is necessary to have two Costco supermarkets. Otherwise, other The big supermarkets may come and take over the market," Pierce said.
"It's okay. Big cities like New York, Chicago, and San Francisco need to be fully covered. It's better to have a lower average sales after opening a new store, but also to eat up the market. Otherwise, other supermarkets will enter the market and follow suit." If we are competing against each other, then we may suffer even greater losses." Chen Zhiwen nodded and said.
Although Costco currently ranks first in the field of warehouse supermarkets, it is far behind in the entire retail supermarket field. After all, Costco currently only has more than 60 stores, while the number of supermarkets such as Celtic's exceeds two. It's over a thousand, but in terms of sales, it's not even a fraction of others.
When they are not in the same city, everyone does not interfere with each other, but first-tier cities are battlegrounds for military strategists in the retail industry. When many retail giants are still testing the waters and researching warehouse supermarkets, this time difference must be grasped. As long as two or three Costcos are opened in big cities to cover most citizens, it will be difficult for other players. Warehouse supermarkets are membership-based, and it is unlikely that one person can get membership cards for two warehouse supermarkets.
This industry is very exclusive. Once Costco succeeds, other similar supermarkets within a radius of ten kilometers will not be able to survive. Therefore, medium-sized cities only need one. But by the same token, if other supermarkets have succeeded elsewhere, Costco has little chance either.
"It is necessary to build more than two big cities. There are at least twenty or thirty in the United States. In addition, other cities also need to expand normally. This requires a lot of funds. The interest rates of banks are too heavy now. If we borrow more, I am afraid it will affect normal operations. "Yeah." Pierce said with a frown.
"Funding is not a problem. I will give you another US$300 million. If you think it should be built, build it." Chen Zhiwen nodded and said.
"300 million U.S. dollars?" Pierce said in surprise. Although Costco's annual sales have exceeded 1 billion U.S. dollars, this is a data with extremely high warehouse turnover efficiency. Even if Costco can press down the payment for two months, the account At its peak, the capital was only over US$100 million.
"But it won't be given to you at once. You need to formulate a reasonable investment plan for me, especially the deployment of personnel, the number of management personnel, etc. If it is suitable, I will approve it." Chen Zhiwen nodded and said.
In fact, supermarkets are not difficult in nature. Anyone can do it, but if you want to do it well, there is no one in ten thousand. And if you want to reach the top level in the world, it requires vision, economic environment, funds, personal ability, and team ability. etc.
Needless to say, Costco's current vision is also suitable for the economic environment. Under inflation, all Americans are looking for cheap goods, which is suitable for Costco. We don’t have to worry about funds. The only thing we worry about is the team’s ability. This is the most important thing.
"In the past few years, I have been spending high costs to train a large number of managers. I originally thought the number was enough. But if you, boss, give me $300 million to expand, I will double the number of Costco. , plus many supermarkets are poaching people from us, so there is indeed a problem with personnel." Pierce said helplessly.
"Becoming a leader in an industry will inevitably lead to people being poached by other companies. It's normal." Chen Zhiwen smiled and said, "We can also poach people from other places. Supermarket management is similar. As long as we use experienced people for the business model." Just the people are enough, don’t worry about the funds, just work hard to recruit people.”
Midea Group's success in the arcade field has also made countless electronic colleagues jealous. They are also poaching Midea engineers everywhere, not only from the US branch, but also from Hong Kong. But Chen Zhiwen doesn't care, the most important thing is games. Creativity, there are so many engineers in the United States, just to design and test according to requirements. Especially Hong Kong engineers, if they are poached by the United States, their wages will be immediately poached dozens of times. Chen Zhiwen will still bless these lucky people in his heart.
"Okay, I'll study it and try it." Pierce nodded and said. With the expansion of funds, he was a little happy. After all, he was getting older. Before retiring, if Costco could become the world's largest supermarket One, that is also a supreme honor. Even if the shareholding ratio of the entire team, including him, plummets due to the boss's continuous capital injection, it does not matter. They have no management rights anyway, and Chen Zhiwen has never After intervening in specific management, the better the company develops, even if the shareholding rate drops, the wealth still increases. In this way, the partners who have followed him for decades can be considered to have received a generous return.
"One more thing, I need you to select a group of better teams for me. I need to build a supermarket chain in the United States that specializes in electronic products. I need this team to run it for me." Chen Zhiwen said again.
"Electronic products? Is it similar to a game console?" Pierce asked. He also knew that his boss's main business was electronic products, but the core arcade machine was not a civilian product. The only suitable one was that handheld console. He had also played it. It's fun to play occasionally.
"Game consoles are just one type, and Apple's personal computers are also one type. They are just a drop in the bucket of electronic products." Chen Zhiwen shook his head and said, "What I want to build is not a large supermarket, but a decoration materials supermarket, such as Home Depot." kind."
"So big? Can large household appliances be sold in it?" Pierce asked. He originally thought that small supermarkets were specifically for small electronic products such as game consoles. Such supermarkets already exist in the United States, such as radios, Electronic watches, calculators, etc.
"Yes, large electronic supermarkets and large home appliances can naturally be put in, including air conditioners, refrigerators, washing machines, TVs, and even kitchen appliances. But these are by the way. They are mainly for consumer electronics. According to my speculation, with the rise of semiconductors, With the development of technology, consumer electronics will soon explode, and I need to prepare in advance." Chen Zhiwen said lightly.
I have made so much money in the United States, not to mention all, but part of it must be spent in the United States. You can also buy stocks. However, it is not yet the time to buy suitable stocks. So according to the development speed of the electronic age, the 1980s will soon Will usher in exponential growth, then this is the time to hit it off.
"Wouldn't that compete with Costco?" Pierce asked.
"There will be a little bit, but after all, Costco's main focus is not in the consumer electronics market. Electronic products are just a part of your business. And the most important thing is that Costco's expansion is limited by the urban population and can only exist. And big cities." Chen Zhiwen paused and said: "Midea's home appliances are not good in terms of branding. I have to build a complete after-sales system in the United States to have the capital to compete with the home appliance giants. But building one alone Such a system is impossible, it’s such a loss, and it’s impossible for me to build another supermarket like Wal-Mart, and I don’t have the opportunity now, and this electronic supermarket chain can help me accomplish this goal.”
Any large-scale business operation must be profitable in itself, such as building an after-sales system that can cover most areas in the United States. The prerequisite for this is that your own products have covered most areas and are profitable, so spending huge sums of money It is profitable to set up such an after-sales system because it can further improve your own after-sales service and avoid the huge cost of inviting a local third party. Of course, even these giants cannot really handle all after-sales services themselves. At most, they can find part-time jobs.
For people like Midea, if they want to carve out a way in a market that is already controlled by giants, they have to either develop advanced technology or fight for cost and after-sales service. Technical aspects are basically useless. At most, the gap is not very obvious, but the production cost is. It has some advantages. After all, it is produced in Hong Kong and will go to the mainland in the future, but after-sales service is a deadlock.
Within the control of Costco, the sales of its own home appliances are pretty good. Once they are released, except for fans, other products will not do well, because just for after-sales installation, you need to rely on a third party.
"Then I understand. If there are really thousands of electronic supermarkets like this, not only will the problem be solved, but other electronic giants will also be able to rely on us." Pierce said with a smile, knowing the retail market well.
"Yes, this is what I want too. As long as I can control the terminal market, then all brands will be restricted by me to a certain extent." Chen Zhiwen said with a smile.
Small home appliance companies like Midea rely on third parties to a large extent. Whether it is terminal sales services or future after-sales services, only very cheap products can be replaced, and expensive ones will definitely need repair.
But if you act as a third party, you can solve this problem. When many cities have their own terminal electronic retail supermarkets, then a supermarket like Suning in later generations will naturally have its own after-sales service and maintenance personnel, which can not only guarantee For your own benefit, you can also make money from other brands.
As long as your own electronic product supermarket is big enough, plentiful and good enough, then powerful home appliance giants such as Sony, RCA and General Electric will have to rely on themselves to a certain extent. Especially when they can attract a large amount of traffic, other small businesses may have no choice but to change careers. Similar to when Wal-Mart appears in a town, local retail is basically finished.
Unless a certain brand is as strong as the Apple mobile phone of later generations, it cannot avoid the brand supermarket chains that control terminal sales. But in the 1980s and 1990s, the only one with such influence was probably Microsoft.
"Okay, I need some time to select such a team." Pierce nodded and said.
"Okay, I found the person, arrange for him to go to Hong Kong to meet me." Chen Zhiwen said: "We still need to discuss how to operate this electronic supermarket."
"Then why don't we try it in Los Angeles first? Find a place to build the supermarket first, and it will take a few months to decorate it. This time is enough for us to think carefully." Pierce suggested.
"Yes, but one is not enough. Build a few more, three to five floors above and below. When they open, we can also analyze more data. In addition, you can also discuss the entry issue with some electronic brands. What exactly is it? It is more cost-effective for us to purchase directly, or to rent a place to the brand." Chen Zhiwen thought for a while and said, "You can be willful if you have money. The most important thing now is not money, but time. It's okay to spend more money on trial and error, and it's not You may lose money, but after building a house, you won't lose much if you open a shopping mall. In the era of the explosion of the electronic market, what is missing is channels. At most, it is a question of making more or less.
"Okay, but this kind of supermarket is not suitable in a remote place in the suburbs, right?" Pierce asked.
"Just don't choose one that's too out of the way, and it doesn't need to be in the city center. Which one is better? Let's take this opportunity to test it out." Chen Zhiwen said.
No one knows what to do with this new type of retail supermarket. Rent or land prices are too high in urban areas, and they are not popular in suburbs. After all, they are not high-frequency consumer retail supermarkets. No one will be willing to drive there for small items in the future. Far away.
This is also because the current real estate market in the United States is very stable. Except for core cities, the increase in real estate prices in other places is not very obvious. Although it will increase several times in a few decades, it is much worse than that in the mainland. If it is In the mainland, just choose the city center with your eyes closed. This is true for any investment, except for polluting factories.
"Okay." Pierce nodded and said.
"This is a gift from me." Suddenly, Chen Zhiwen handed Pierce a key and said with a smile: "I bought several mobile villas in Beverly Hills, and I will give you one of them. Thank you. for your many years of service to Costco.”
With so much money in the United States, it is unlikely that it will be left in the bank to earn interest. It is still possible to buy a house. The overall real estate market in the United States has not changed significantly, but scarce resources still have a very considerable increase. For example, apartments in the center of New York City , Mid-Levels mansions in Los Angeles, etc. Chen Zhiwen also arranged for people to buy some of them.
"This won't work, it's too expensive." Pierce shook his head quickly.
"Actually, it's not much, just a few million dollars. You deserve this. It's a special reward in the past few years. You know, this is nothing to me. If you are like this, you will be delaying me. If it takes more time, the damage to me may be even greater." Chen Zhiwen said with a smile.
"But Costco, I'm not the only one who contributed." Pierce said with a frown.
"Don't worry about it. I have also purchased luxury houses in other places in Los Angeles. I will distribute them to people who have contributed to Costco. You don't have to worry about this. Everyone has it." Chen Zhiwen said with a smile. In fact, it only adds up to thousands. The 10,000-dollar level, used to reward a group of teams that have built a huge retail empire for themselves, is just a drop in the bucket.
In particular, Galaxy Trading in Hong Kong started off with orders from Costco. Today, it has become a supplier to many retail supermarkets around the world and is one of the greenest companies in all Asian countries. After all, even for an automobile giant like Toyota, it needs many conditions to invest or purchase. Once the choice is made, it will not be changed casually, so it will not be very attractive to the government, but in the past With the exception of developed countries like Japan where labor costs are too high, who in Asia doesn’t pay attention to daily necessities orders worth US$100 million?
It’s not just Costco’s team, it’s the same with other companies. Clear rewards and penalties can make more people work hard, and at the same time attract more high-quality talents.
"Okay." Pierce said as he took the key.
PS: In the previous chapter, did any readers report problems with British cars? There are plans for this, but before the time has come, I have checked the information before. The current car brands in the UK are still all state-owned enterprises and are controlled by the government. Moreover, Mrs. Thatcher just became the Prime Minister a few months ago, and she also has the ability to save the UK. The idea of the automobile industry should be that it was only in 1982, when the British government was unable to save itself, that it began to sell British automobile brands on a large scale, including Rolls-Royce, Mini, Jaguar, Land Rover, etc.
(End of chapter)
