I collect gold fingers in the heavens

Chapter 394 Franchise Model
"Wu Dong, because we adhere to the group's guiding policy, adhere to the direct sales policy, and refuse to join the form, the expansion speed of [Little Fresh Meat] will be relatively slow. However, although we are moving slowly, we are moving steadily." Su Shixian said Years have also been tempered. Looking at this reply, you can tell that you have done your homework.

"At present, [Xiaoxianrou] has entered more than 3200 cities across the country, with a total of 1.5 stores, with an average daily turnover of 650 yuan, and more than 260% of the stores are profitable. Among them, crucian carp sells 15000 million yuan a year. 3.5 million heads of pork; the annual sales volume of a single SKU of fruit exceeds 172 tons; the annual sales volume of five grain eggs is [-] million pieces, and there are more than a dozen other SKUs that sell millions of data. The annual revenue exceeds [-] billion yuan.” Su Shixian's tone was quite proud.

Su Shixian also has the capital to be proud of.

[Little Fresh Meat] is not the first to enter the field of community fresh food stores.

As early as 2013, there was a fresh food store in Pengcheng, with the slogan "Do not sell overnight meat", which gained a good reputation among consumers and developed rapidly.

This community fresh food brand store adopts the [direct operation + franchise] operation method, controls the planting and breeding from the upstream, strictly controls the quality, and then joins in the downstream output standard store, forming a [farm - processing base - The flow link of supply chain-terminal franchise store-consumer] forms a dimensionality reduction blow to traditional fresh food stores.

In addition, in terms of investment in store construction, this community fresh food brand passed on the cost to franchisees.

It is a B2B2C business, and franchise stores not only expand its market coverage, but also stabilize its shipments from the source.Highly market-oriented planned fresh planting and breeding processing, all aspects of quality, shipment volume, and parity can be grasped at one hand.

As more and more stores are opened, the profit of a single store will become better and better, and the loss will be reduced.Until the number of stores in a single urban agglomeration meets a certain scale, the supply chain of source planting and breeding will become a strong backing, able to grasp a higher bargaining power for products.

This is an operation mode in which the front-end is heavy on assets and the back-end is light on assets!

Because this model has low investment, strong reproducibility, and bright prospects, this community fresh food brand is favored by capital, has received a lot of investment, and has also received many people's applications for joining.

Because this community fresh food brand has been able to develop rapidly, and in just a few years, the number of stores nationwide has expanded to 4800, known as the N0.1 on the track of community fresh food stores!

For a while, even the [Little Fresh Meat] of [Superior Group] couldn’t compare.

This community fresh food brand is also ambitious. After making the scale, it wants to hit the IPO and go public for financing.

But after several twists and turns, several IPOs have failed, and the development speed has also stagnated.

At this time, the contradictions under the cover of the original prosperity also broke out.

First, news broke out in some cities that franchisees had lost all their money and could not make any money at all, and then news broke out that the community fresh food brand had withdrawn from the operation of the imperial capital.

For a while, I was in a mess.

But [Little Fresh Meat] under [Chaoqun Group] is different.

On the surface, [Xiaoxianrou] is not much different from other community fresh food brands. In fact, after in-depth research, you will find that the difference, oh, no, it should be said that the gap is very different.

Because [Chaoqun Group] is a matrix and a development model of the entire industrial chain.

Whether it is the supply chain of planting and breeding at the source, or the cold chain of transportation, and the retail chain of the terminal, they all participate in the whole process and develop the whole process.

What competes with [Little Fresh Meat] is not a store, but a system, a well-trained elite army.

This kind of system advantage has made [Little Fresh Meat]'s competitors desperate. What's more, the quality of many products of [Little Fresh Meat] is unique and better than its competitors.

This has caused other fresh food brands to lose ground in the process of competing with [Little Fresh Meat].

Two community fresh food stores are opened in the same community, even if the opponent's location is better, it is a gold store, while [Xiao Xianrou]'s store is opened in a remote location where no one cares about it.

But as long as the operation time is prolonged, consumers have their mouths and can distinguish good from bad, so they will naturally vote with their feet and become loyal customers of [Little Fresh Meat].

Because of this, the business of [Little Fresh Meat] is getting better and better, while its competitors are getting worse and worse.

Later, few competitors of other brands dared to be in the same competitive area as [Little Fresh Meat], and they all settled for the next best thing and looked for other markets.

That is to say, [Xiaoxianrou] is positioned in the mid-to-high-end field, and the prices of its products are [-]% to [-]% higher than those of other brands, and the high ones can even reach [-]%. [-]/[-].

Only other competitors have room to survive.

Originally, the comprehensive cost of [Little Fresh Meat] was not comparable to that of several competitors, and the price of [Little Fresh Meat] was higher than them, and the profit margin in the middle was directly ahead of them, making those competitors The opponent is envious and jealous, but there is nothing he can do.

In the field of community fresh food, [Little Fresh Meat] is the real uncrowned king.

…………………………………………………………………………………………………………………………………… ...

"Not bad." Wu Siyuan commented on Su Shixian's proud achievements.

Su Shixian was a little taken aback immediately.

Wu Siyuan didn't take Su Shixian's face into consideration, but said directly, "The number of [Little Fresh Meat] stores is still a bit small."

"President Su, what is the proportion of pork in the category structure of [Little Fresh Meat]?" Wu Siyuan asked.

"...er..." Su Shixian thought for a while before giving an uncertain figure, "probably around forty percent."

In this regard, Su Shixian is not as good as Guan Xuelie.

Wu Siyuan shook his head, and with a thought, [Four-Armed King Kong] calculated an accurate value from the massive data and transmitted it to Wu Siyuan's mind, "To be precise, it is [-]% Eight."

"Yes." Su Shixian said resentfully with an ugly face.

However, Wu Siyuan didn't mean to blame him. After all, Su Shixian is not in charge of the [Little Fresh Meat] brand. Executives at his level usually think more about strategic issues.

Su Shixian's ability to know this data is enough to prove that he is competent.

After all, Guan Xuelie is different.

Wu Siyuan paused, and said, "Then do you know the annual pork consumption of [Little Fresh Meat]?"

"I know this. Mr. Wu, last year [Little Fresh Meat] sold 21.58 tons of pork." Su Shixian quickly replied.

This data is almost the same as the data obtained by Wu Siyuan.

Wu Siyuan glanced at Su Shixian unexpectedly, then nodded, hummed lightly, turned around and asked Guan Xuelie again, and said, "Mr. Guan, how much pork did our group put on the market last year?"

Su Shixian froze for a moment, thought for a while, and then replied, "Mr. Wu, last year our Agriculture and Animal Husbandry Business Department sold 70.55 tons of pork. Among them, 22.55 tons of pork (some of which deteriorated and were disposed of) sold at a price of 9.5 tons. Yuan/jin (the price of pork in the first few months of 2018 has been falling, the lowest fell below 6 yuan/jin, and the price of 9.5 yuan/jin was driven up by the price of pigs in the months when African swine fever broke out) The average price was sold to the [Xiao Xianrou] company in charge of Mr. Guan, and the remaining 48 tons of pork were sold at an average price of 11.3 yuan per catty."

"If you don't consider other hidden costs and transportation costs, the sale of these two pork orders will bring a total gross profit of 90.6 billion yuan to the Agriculture and Animal Husbandry Division." Guan Xuelie said expressionlessly.

Of course, if other costs are to be calculated, the Agriculture and Animal Husbandry Division not only failed to make a profit last year, but also lost money!

Su Shixian clucked his tongue when he heard this, and was amazed by Guan Xuelie's familiarity with various data, and also shocked by the high profit of raising pigs, although his gross profit from selling pigs was no worse than others!

At this time, Wu Siyuan turned his head, looked at Su Shixian, and said, "President Su, did you hear that?"

"Hmm. Oh! I heard it, Director Wu." Su Shixian was still a little confused.

"Do you know where the key problem is?" Wu Siyuan asked.

Su Shixian frowned and thought for a while, then shook his head with a wry smile.

"It's the quantity. The number of [Xiaoxianrou]'s stores is relatively small, and it can't even sell one-third of the group's pork production." Wu Siyuan pointed out directly, "The root cause is the number of stores. Less, less coverage."

"President Su, I predict that in a few months, maybe two to three months, maybe three to five months, and no more than eight months at the latest, the price of pork will usher in a sharp rise. How to use this time, as far as possible It is possible to increase the number of [Little Fresh Meat] stores and expand the coverage of [Little Fresh Meat], this is a matter that you should focus on." Wu Siyuan said in a solemn tone.

"Yes, Wu Dong! I will do my best!" Su Shixian said with his whole body tensed.

"What are you going to do?" Wu Siyuan asked.

"Wu Dong, our department has already made relevant filings, and there are several sets of new store location plans. So don't worry, the terminal retail business department will definitely not delay the group's retreat, and will work with other brother departments to lay out the pork this time." Battle!" Su Shixian said earnestly, with a look of swearing, when the topic changed, Su Shixian's face changed again, and then said, "However, Mr. Wu, store expansion requires funds, and our department has insufficient budget, so we need the group headquarters Approve a sum of money to support it."

Because it is a direct store, [Little Fresh Meat] stores do not need to pay any advertising fees, franchise fees, and deposits.

However, because the stores must be close to mid-to-high-end communities, the store rent and decoration fees are expensive. On average, the opening of a new [Xiaoxianrou] store ranges from 12 to 45 yuan.

Looking at Wu Siyuan's situation, hundreds of stores would definitely not be able to satisfy his appetite, but if there were thousands or even thousands of stores, it would cost hundreds of millions, billions, or billions of dollars at least.

Where can Su Shixian find this money at this time!
The money earned by the terminal retail business department last year was basically used to support the expansion of several retail brands, and there is not much left!

Upon hearing this, Wu Siyuan spread his hands and said bluntly, "The group has no money!"

"..." Su Shixian.

"..." Guan Xuelie.

Neither Su Shixian nor Guan Xuelie believed it.

[Chaoqun Group] Such a profitable company actually says it has no money?
They really don't believe it.

But it really is.

In the past two years, [Chaoqun Group] has made large-scale foreign investments. The [Pig Farm] alone has spent tens of billions, and the cold storage construction has spent several billion yuan. Then it took another year to acquire [Superman Takeaway]. [-] million U.S. dollars, and nearly [-] billion U.S. dollars was burned in the subsidy war with [Leituan Takeaway] and [Are You Eating].

This has not yet mentioned [Chaoqun Group]'s investment in the medical field. Several new drugs have entered the second phase of clinical trials, and in the third phase of clinical trials, all of these will cost money, a lot of money.

In addition, the environmental protection business department burns a lot of money. An environmental treatment plant requires hundreds of millions or hundreds of millions of dollars in investment alone.

【Chaoqun Group】Almost all investment fields are asset-heavy fields, and the financial burden is heavy.

That is to say, the [Audition] project has continued to regenerate blood, so that the cash flow of [Superior Group] has not been broken, and there is still a surplus of funds in the group account.

But in the future, Wu Siyuan has a new investment direction to use these funds, so it cannot be used for the expansion of [Little Fresh Meat].

So Wu Siyuan spread his hands and shattered Su Shixian's hope with one sentence.

Su Shixian looked astonished, "Wu Dong, do we want to continue borrowing from the bank?"

[Chaoqun Group] is also a freak, not keen on borrowing for development, that is, last year, it borrowed a large amount of money from the bank to invest in [pig farms], and then there is no big loan. The overall debt ratio is very low. It is a high-quality asset coveted by many people.

Many people, including those at the government level, are agitating [Super Group] to go public.

Even the people inside [Superior Group] hope that the group can go public, expecting to obtain option income and direct wealth freedom.

Of course, Wu Siyuan had never paid attention to these public and private clamor.

Closer to home.

Facing Su Shixian's question, Wu Siyuan directly shook his head and said, "We don't borrow money from banks."

"I don't like to owe people money!"

"However... the expansion of [Little Fresh Meat] is inevitable for me!"

"So, I decided to open the franchise of [Little Fresh Meat]!" Wu Siyuan said.

"Wu Dong, franchising? Do you want to open the franchise?" Su Shixian froze for a moment.

"Wu Dong, hasn't our group been doing direct sales all the time? If we join, if a management is not good, it may cause problems in the quality control of the store, and then affect the overall reputation of our company." Guan Xuelie also interjected.

"I know. That's why I'm talking about franchising!" Wu Siyuan waved his hand to signal them to be calm, and then explained, "Franchising is to allow investors to provide funds for store construction, and [Little Fresh Meat] This side exports the brand, management, and personnel.”

"In other words, the store belongs to the investor, and the profits belong to him, but the brand, management and personnel of the store belong to our group."

"In this way, we don't have to worry about franchise stores getting out of control, and it can also solve the problem of funds."

"That is, can investors in the market accept our model?"

"What do you think?"

(End of this chapter)