The Industrial Giant Reborn

"In fact, I have already studied the warehouse supermarket, but I think its service scope is too small, so I didn't consider it. However, Costco has converted all its service objects into all consumers, and it seems to be successful. The trick really surprised me." Sam Walton laughed.

"I have always believed that the largest business in the world is consumer goods for the general public. The market for the most common retail supermarket is actually much larger than that of automobiles and oil." Chen Zhiwen said with a smile.

"Then why not invest in Asia, but in the United States?" Sam Walton asked very puzzled, which really made him understand that although opening a retail supermarket is a low-entry industry, it actually needs resources behind it. It should be a normal business model to achieve success locally and then go outside.

"I think so, but Hong Kong is a city, the internal market is too small, and the retail sector has been controlled by other capitals, so it can't afford to make big waves. In other Asian countries, internal capital is more exclusive, and the business environment in the United States is not as good as it is." Chen Zhiwen. I just found a reason at random, but I can't say that I know the achievements of Costco in the future.

But having said that, the business environment in Asian countries is indeed relatively xenophobic. Some independent industries are better. If foreign investment is to grab local business, it will definitely be difficult. Relatively speaking, Europe and the United States are much better, as long as it is not on ZZ Hostile countries should not invest in sensitive industries, and generally there will be no problems. In the future, Huaguo will have a good relationship with Europe and the United States for at least 20 years.

"That's true." Sam Walton nodded and said: "In this way, I will let Wal-Mart's purchasing department contact your trading company. We will follow the market for follow-up cooperation. As long as your products are really suitable, there will be no problem." Question, this has nothing to do with whether you are a shareholder of Wal-Mart or not, and it will not be affected."

"OK, no problem." Chen Zhiwen said with a smile.

Compared with the cost, the cost of these labor-intensive low-end light industries in Hong Kong is higher than that of the United States. The current American retail industry actually wants to transfer a large number of light industry orders to Asian countries, but it is very difficult to find a stable partner. Coupled with various reasons such as poor information, time difference, and different cultures, it also led to an increase in costs, especially the cost of time. If you place an order in the United States, you may be able to get the product in half a month, but it may take two weeks to go to Asia. For three months, it is not only a matter of money, but also a waste of energy.

Galaxy Trading Company in Hong Kong is a very important key industry in Chen Zhiwen's layout. Its positioning is to provide high-quality goods for global trade and retail giants, and strive to become the world's largest leather bag company.

One of the purposes of the acquisition of Costco is to place its own orders and cultivate its own trading company. Otherwise, even if it becomes a shareholder of Wal-Mart, it is not eligible to enter its procurement chain.

On the supply side, Hong Kong has a well-developed light industry. Even after more than ten years, orders can be transferred to China. Light industry orders worth hundreds of millions of dollars are enough to become guests of various provinces in the mainland, improving the economic development of the mainland and providing While finding employment and solving the poverty problem of the mainland people, he can also obtain very high profits from it. Even if the profit margin of the leather bag company is very low, the total amount is very large. Besides, Chen Zhiwen doesn't care about the profit margin of this trading company. The order is what he needs most.

As for the client, Costco, which he personally controls, will become one of the retail giants in the United States in the future. When the initial funds were tight, he still mobilized funds to acquire Wal-Mart's stock, just to let his trading company get on this line.

Otherwise, no matter how nicely Sam Walton said at this time, wouldn't it be useless for you to see your face? It won't be so easy if you see it. You must know that the procurement chain of a large supermarket company has amazing benefits. Without enough energy, it is difficult to get in, let alone plan most of it.

Relying on part of the orders from Costco and Wal-Mart, Xinghe Trading Company can use large orders to select and cultivate high-quality suppliers, and even some long-term projects can invest in their own production, further reducing costs, and thus have the opportunity to serve again Other retail supermarkets.

Although this is not an industry, it is better than an industry to a certain extent. After all, there are thousands of products in the supermarket. How can any company produce them all?

It is even more influential than investing in a certain place to drive hundreds of thousands of jobs, because just a little tilt of the order can affect the employment of tens of thousands of people and even the local fiscal revenue. All kinds of communication costs are reduced. These retail giants want to control the cost and purchase by themselves, and they will not cause any substantial damage to a leather bag company. They only make money.

Another advantage is that when you do your own retailing in the future, you will have a very complete range of procurement channels at very low prices. The Hong Kong retail industry market is indeed very small, while the mainland next door is the big one. Even in the 1990s, the per capita income of the mainland was very low. Under low conditions, the annual turnover of many mainland supermarkets can exceed 100 million yuan. As long as the mainland government allows foreign retail supermarkets to enter the market, it will be a big blue ocean.

This is a perfect business model that has never appeared in the previous life, and now it is 90 steps away from success!

Sam Walton didn't care too much about this kind of thing. At the moment, he didn't know how cheap Hong Kong's light industrial products would be. Once they really poured into Wal-Mart supermarkets, American suppliers basically had no chance.

After a period of time, Chen Zhiwen and Sam Walton discussed the retail industry together. Walton still has a deep understanding of the retail industry, and Chen Zhiwen was surprised by the control of various costs.

Afterwards, the two went to a nearby restaurant to have dinner together. Walton treated them to guests. After the two said goodbye and separated, Sam Walton drove back to the company.

"Father, he's gone?" John Walton, the second generation of the Walton family, stood up to welcome his father.

Sam Walton sat down, nodded and said: "Yes, let's go, he agreed to my request and no longer buys Wal-Mart's shares. There should be no malicious intentions, so he made a small cooperation request."

John made a cup of tea, and Sam Walton briefly talked about what happened today while drinking.

"It's not a problem to give him some orders for his trading company in Asia. It's just that it's strange for him to focus on Wal-Mart. There are so many retail companies in the United States. Could it be that he is really just optimistic about his father's management ability?" John was a little puzzled asked.

"Who knows, maybe he is really optimistic about Wal-Mart's business model. His supermarket in California is said to have very low commodity prices." Sam said.

"It's not so low. I sent someone to Los Angeles to have a look. His supermarket prices are much lower than our Wal-Mart's." John Walton said with a frown.

"It's normal. Warehouse-style supermarkets have very few SKUs, so the purchase cost is naturally much lower. It's no wonder the price is higher than ours." Sam said with a smile.

"This person also seems to be very capable. Although there is no conflict of interest with Wal-Mart now, it is hard to say in the future. Father, do we need to consider doing warehouse trading?" Sam Walton said suddenly.