The big guy starts with raising pigs

Chapter 394 Cruel Competition
After dinner, the villagers gathered again to chat under the big tree at the entrance of the village.

"Xiaohai is really generous. He opened more than ten stores in Beijing, Shanghai, Guangzhou and Shenzhen!"

The second uncle couldn't help sighing after hearing that Zhang Hai had opened more stores.

Uncle Xiao Ma chuckled and said:

"What is this? The investment in these more than ten stores is only a few hundred million at most, which is just a drop in the bucket for Xiao Hai."

The other villagers nodded in agreement.

"By the way, I read the news some time ago, and it said that the fresh food business is not doing well now. There is a company called Daily Fresh, which burned more than 100 billion and finally went bankrupt." Uncle Guoxing interrupted suddenly road.

"More than 100 billion?" The surrounding villagers looked at each other in shock.

"Can you go bankrupt with so much money?" The second uncle was also very moved.

"That's not true. Now starting a business burns too much money, and it will burn billions and billions at every turn."

"Furthermore, the fresh food industry has very high requirements on the logistics system. For example, Daily Fresh put forward the slogan of 24-hour national delivery, but without a developed logistics system, how could it be possible." Uncle Guoxing nodded and explained.

"If you want to build a logistics system that extends in all directions, you can't do it without hundreds of billions. No wonder you burned more than 100 billion, and you can't avoid bankruptcy in the end!" Brother Dashan nodded suddenly.

Hearing everyone's words, Uncle Ma asked in a low voice: "Then do you think Xiaohai's mountain god can make fresh food?"

After speaking, Uncle Ma looked around, worried that Zhang Hai would be embarrassed if he heard it nearby.

Everyone froze for a moment, they didn't expect Uncle Ma to ask such a question.

Because it is well known that Shanshen Group has aggressively entered the fresh food field.

To this end, Shanshen Group has also invested more than 30 billion in the logistics system and the expansion of stores.

In the past two days, Shanshen Fresh has opened more than ten new stores in first-tier cities across the country.

Although Shanshen Fresh has a great momentum, after hearing the example of Daily Fresh’s bankruptcy, everyone became worried.

Now most of the vegetables and pork in the village are sold through the sales channel of Shanshen Fresh. If Shanshen Fresh fails, Shanshen Group will definitely be affected.

Everyone's work and income should also be affected,

Because almost every household in the village has people working in the company, everyone and the company are both prosperous and ruined.

"What are you worrying about? Isn't Shanshen's fresh food business always good?" Uncle Guoxing gave him a dissatisfied look.

The others also reacted, and looked at Uncle Xiao Ma meaningfully. Uncle Xiao Ma felt a little scared when everyone looked at him, and quickly smiled and said:
"Ahem, I'll just ask, just ask... Shanshen Fresh will definitely get better and better."

Although everyone knows that this industry is not easy to mix, the villagers believe in Zhang Hai's ability even more.

Because no matter which industry Zhang Hai enters, he is successful in the end, so everyone has blind confidence in him.

…………

In fact, Zhang Hai has some understanding of the status quo of the fresh food industry.

In 2009, the vertical fresh food e-commerce began to sprout. From 2014 to 2015, it experienced a brutal growth. In 2016, it faced the cruel situation of big waves washing the sand and fighting among giants.
After 10 years of ups and downs, today's fresh food e-commerce platform has long since given up the idea of ​​​​standing in line with the giants and turned to seek transformation and development.

But throughout the long history, burning money, financing, and bankruptcy have always run through the development of fresh food e-commerce. Prosperity, tranquility, and death are still the mainstream trends of fresh food e-commerce entrepreneurship today. The trend curve of fresh food e-commerce is not smooth. .

According to statistics from the China Electronic Commerce Research Center,

As of 2020, among the more than 4000 fresh food e-commerce entrants across the country, 4% of the platforms have invested capital and output profits at the same level, 88% are deeply in the quagmire of losses, and 7% are bearing huge losses, leaving only the last 1 % achieve profit goals.Closures and store closures are the norm in every industry, and the essence lies in the profit ratio.

Fresh food e-commerce was once known as the last "blue ocean" in the vertical e-commerce segment and the next trillion-dollar market.

Therefore, the major online giants are scrambling to enter the field of fresh food and community group buying.

It's a pity that the fresh food industry is a super money-burning industry.

Every link from supply, warehousing, and distribution requires a lot of capital investment.

Moreover, the profit of the fresh food industry is very low, and it is difficult to obtain sufficient profits through product sales.

Therefore, the fresh food industry, which cannot be self-sufficient, is inherently deficient and needs continuous financing and blood transfusion.

In Zhang Hai's view, the trillion-dollar market of the fresh food industry is a cake that can't be seen or touched.

The major e-commerce giants have invested so much money into this field, and it is estimated that it will be a chicken feather in the end.

Because to put it bluntly, community group buying is to burn money and subsidize to attract new users.

But users are not fools. After the subsidy is cancelled, will everyone continue to use community group buying?

The active users of the website will definitely plummet.

This is the embarrassment of the current fresh food website, and there is almost no way out except endless subsidies.

Fortunately, this is not the case for Shanshen Fresh Food, which can attract many users without subsidies.

Because the high-quality products of Shanshen Group are a strong guarantee for Shanshen Fresh to attract users.

It can make Shanshen Fresh avoid the cruel competition and blaze a different path.

It can be said that the high-quality products of Shanshen Group are the magic weapon for the success of Shanshen Fresh, which is a unique technology that other fresh food companies cannot learn.

In the eyes of competitors, Shanshen Fresh is a miracle in the industry and a bug that makes everyone helpless.

Therefore, when the news of the opening of the Shanshen Fresh Store came out,

Competitors can only complain sourly, wanting to stumbling to stop its development but powerless.

……

Just when Zhang Hai was sitting in the office thinking

Sun Wenbin called.

"Boss, the assets of Daily Fresh will go bankrupt and auctioned next month. I think we can participate in the auction. It would be best if we can auction off their logistics warehouse. In this way, the logistics system construction of our Shanshen Fresh will be faster."

Daily Fresh Zhang Hai will also know that it is the protagonist of the bankruptcy incident that shocked the industry some time ago, burning more than 100 billion yuan and finally went bankrupt.

This is one of the veritable giants in the fresh food industry. It was once valued at tens of billions and was favored by many domestic and foreign investment giants.

I didn't expect it to go bankrupt in a blink of an eye. You can imagine how cruel the competition in this industry is.

Sighing silently, Zhang Hai immediately replied to Sun Wenbin:
"Yes, Mr. Sun estimates how much money is needed to take pictures of the daily fresh logistics warehouse?"

"It may take about 20 billion." Sun Wenbin thought for a while.

"No problem, I will leave the auction to you. In addition, I will ask people from the finance department and the legal department to assist you..."

"Thank you boss, I will try my best to get this matter done."

After receiving the great trust from the boss, Sun Wenbin immediately patted his chest to promise that he would live up to the boss' expectations.

(End of this chapter)