Rebirth: The Era of Hong Kong Tycoon

Chapter 229 [Retail Industry]

Yonghui Company is convening a high-level meeting. In the conference room, more than a dozen high-level executives are reporting to Lin Rongheng. If Lin Rongheng can make countermeasures, he will give instructions on the spot, and if he can't, let everyone discuss the countermeasures.

Yonghui Company has three first-level subsidiaries and many grandchildren companies. The three first-level subsidiaries are: Yonghui Supermarket, 7-Eleven Convenience Store, and Yonghui Beverage (Red Bull and other products).

Since the establishment of 7-Eleven Convenience Store (Hong Kong) more than four years ago, there have been as many as 50 stores; since Yonghui Supermarket has been established for three years, there are also 25 stores; Red Bull functional drinks are currently sold in many overseas countries and regions, and the annual sales volume has reached Reached 500 million bottles.

Zhang Jiehui, the president of the company, reported: "At present, Japanese department stores have come to Hong Kong to open large-scale stores, which is a great challenge to Hong Kong's retail industry. Advantages, there may be changes in the Hong Kong department store industry, and even a huge impact on the retail industry.”

Lin Rongheng immediately said: "The opponent is indeed strong, but the department store industry also has many shortcomings. First of all, they don't have the 'open cabinet self-collection'. If we want to defeat the Japanese department store industry, we should not develop the department store industry, but strengthen investment in super Market. It is not department stores that beat the Japanese department store industry, but supermarkets. Therefore, from now on, in the next five years, we will open about 12 stores every year.”

Everyone has approved this plan. Yonghui's abandonment of entering the department store industry is equivalent to making people unable to find its shortcomings; 80% of the retail industry share; those department stores have followed the example of supermarkets and adopted open-shelf self-selection as much as possible.

The retail industry in Hong Kong can be roughly divided into several models: supermarkets, department stores, convenience stores, specialty stores, stores, and hawkers.

Hong Kong’s supermarkets originated in 1970. Wellcome Supermarket, established by Jardine Matheson Company, currently has about 20 stores; Yonghui Supermarket was established in 1972, and it has come from behind, with 22 stores; followed by the establishment of Hutchison in 1973 The ParknShop Supermarket currently has only 10 stores.Behind the three supermarket brands are all backed by strong capital.At the end of the 70s, Lin Rongheng would launch a promotional war that lasted for more than half a year, taking the opportunity to clean up some small and medium supermarkets, and have a head-on confrontation with Wellcome Supermarket.

Department stores have a history of more than 70 years in Hong Kong. The high-end department stores include Lane Crawford and Yingzhijie, which sell European and American brand products. Most of the customers are rich and celebrities and other high-income earners; Shi and Wing On are two department stores. Before the [-]s, the two department store brands had always occupied a large retail share in Hong Kong. However, with the development of the Japanese department store industry in Hong Kong, these two department store brands will be defeated. In addition to the Japanese department store industry, the turnover of one company has dropped sharply; there are hundreds of brands in Xiangjiang's mid-to-low-end department stores, which can be said to be highly competitive in the industry. Some people jokingly say: Hong Kong has a lot of retail brands, so saturated that inserting a needle will also cause waves; Now some people keep throwing stones and even bombs.

There are already several chain brands of convenience stores in Hong Kong, but only the 7-Eleven convenience store under Yonghui Company has become popular; more than 7 10-Eleven convenience stores have opened stores. The development speed is too fast, and everyone has not yet responded Before, it has been spread throughout Hong Kong.Lin Rongheng's strategy is to open a store quickly, but if a store loses money for a year in a row, the company will immediately arrange to close the store and reopen a nearby one.

Specialized stores are stores that sell a certain variety or type, such as specialized home appliances, fashion, footwear, jewelry, clocks, kitchen supplies, sports equipment, etc.; Hong Kong's specialty stores are supplements to department stores and supermarkets. Although the boss has a complete range of goods, but a certain category of products is not as complete as the category or brand of the specialty store.Specialized stores have obvious advantages, and they have a great impact on comprehensive retail stores. Sooner or later, some department store brands will specialize in specialized stores.

The store with the largest number in Hong Kong is probably Shiduo. Shiduo is the transliteration of the English Store, which is a small grocery store referred to by the Chinese; this is a kind of retail store all over the streets and alleys. Low end haberdashery and food.The berths in Shiduo are relatively small, and they do not pay attention to decoration, but to be practical.

Hawkers are a very important form of Hong Kong's retail industry. There are nearly [-] licensed vendors and about [-] to [-] unlicensed vendors.Licensed hawkers are concentrated in open-air markets and vegetable markets designated by the government, and most of them have simple covered stalls; unlicensed hawkers move around and are called "walking ghosts". Most of the ghosts go before [-]:[-] in the morning and [-]:[-] in the evening After doing business, there are very few police officers on duty at this time, so there are great opportunities to take advantage of.In the past two years, due to the oil crisis, the number of unemployed people in Xiangjiang has increased, and many people have turned to hawkers. The government deliberately lenients the network and loosens the duty. The government has even established a number of areas where ghosts are allowed to operate without paying fees. This can be regarded as a benevolent policy. .

Of course, in addition to these retail models, there is another model - shopping malls. Shopping centers are a combination of traditional general stores and specialty stores. In the long run, the prospects are very promising.

In response to the emerging Japanese department store industry and the increase in large-scale stores in the Hong Kong department store industry, Yonghui's strategy is to seize the department store market only with the rapid development of supermarkets.

In the previous life, it was not until the end of the 80s that supermarkets occupied 50% of the market share. Lin Rongheng wanted to make this goal five years ahead of schedule, so that the Japanese retail industry would fail.Not only that, in the 80s, Lin Rongheng will also develop his retail business in Japan.

Chen Ping, who is in charge of the beverage business, said: "Thai Tencel Group filed a lawsuit against us, telling us to infringe their patents!"

Lin Rongheng smiled and said: "Their patents? American Coke, Pepsi and Coca-Cola. How can they win the lawsuit? Let the law firm that the company cooperates with respond to the lawsuit. Not only that, but we have to counter-suit, their patents are only in Thailand , and our patents have been successfully applied in Europe and the United States. Instead, this is public opinion and increases the influence of our Red Bull."

Chen Ping nodded and said: "Tencel Group's products are only sold in Thailand, while our in-progress products have been sold in Japan, Singapore, North America, and Europe. If things go on like this, they are equivalent to being trapped in Thailand by us. Moreover, our products have better taste and efficacy, so I believe there is nothing to worry about.”

Everyone agrees with this point of view. The promotion of Red Bull in Europe and the United States is to cooperate with the American Southern Company. With the help of the influence of the American company, it quickly obtained the marketing authorization in Europe and the United States (the formula has been slightly changed); Promotion in Japan and Singapore.

According to history, Tencel Group in Thailand only sold in Singapore in 1982, and only went out of Thailand for sales. It is not a concern at present;

Lin Rongheng finally said: "Add another 1000 million Hong Kong dollars in promotion fees, as long as our products have no problems, we will be able to make large-scale profits sooner or later. We sponsor some thrilling competitions, such as racing cars, extreme sports, etc., and then make a big story in the newspapers .And use a slogan 'Your energy is beyond your imagination' to echo it."

In the early stage, Red Bull couldn't make any money at all, and invested 1000 million Hong Kong dollars in promotion.

Chen Ping nodded and said, "I will definitely do a good job in overseas promotion and repay the company's investment!"

Yonghui Beverage has first-class talents and a broad international perspective. Coupled with Lin Rongheng's guidance, it is naturally not something that a small rich man in Thailand-Tencel Group can fight against.

Even if Tencel Group wants to go overseas, it has to consider funding issues and competition with Red Bull.

(End of this chapter)