Reborn: Billionaire in College

Chapter 104: Consultant Chen's Big Move
Chen Pingjiang knew that Lao He wanted to protect him, but he didn't need to. If he didn't subdue the middle-level managers of Yuanfang Supermarket today, the reform would not be able to proceed smoothly.

Chen Pingjiang is a very honest person. He has to do things after taking Lao He's money, even if he is just a consultant and not the specific executor.

He still wants to earn another 800,000 yuan in a few more years.

He Zhiyu also felt Chen Pingjiang's genuine sincerity from his actions. Logically speaking, Chen Pingjiang didn't need to attend today's meeting. He only needed to submit a plan and provide guidance when the project was being implemented.

You can still get the money and not offend anyone, how great is that?

As for whether it can be done or not, what does it have to do with Chen Pingjiang? Anyway, he is just a consultant.

But when He Zhiyu revealed this joint shareholders' meeting to Chen Pingjiang, Chen Pingjiang volunteered and said he would definitely be present.

This guy can handle it.

He Zhiyu thought.

"What a joke! A freshman can be a consultant? That's just talk." However, some shareholders still raised questions. He is not a middle-level manager, and they dare to say many things that others dare not say.

"800,000 yuan, Lao He, you must have been cheated by a liar. The plan might have been copied from someone else."

Vice President Tang Weijie also looked at He Zhiyu's face and said cautiously, "How about, Mr. He, please reconsider it?"

"Yes, Mr. He, I always feel that if you don't have a good mouth, you won't be able to do things well."

"..."

For a time, the public was outraged.

Fortunately, He Zhiyu usually has adequate control over the board of directors and the company, otherwise someone might really leave in anger or say something even more unpleasant.

Despite being ridiculed by so many people, Chen Pingjiang remained calm, but He Zhiyu's face became uglier. He could understand everyone's complaints, but he didn't expect to be opposed by so many people. It was normal for shareholders to raise questions for their own interests, but his right-hand men didn't understand, and some of them even had informed him in advance, which made He Zhiyu a little disappointed.

Although these people verbally questioned Chen Pingjiang, they were actually strongly opposed to reform.

The only thing that surprised Chen Pingjiang was that in a normal company, if the boss wanted to implement a policy, the subordinates would not oppose it in public even if they were extremely reluctant. But why did Yuanfang Supermarket do the opposite?

After finding a chair to sit down, Chen Pingjiang looked around with a smile: "It seems that everyone is opposed. Of course, we don't know whether they are against me or the reform, or whether they are all against it. I don't care about the position of consultant. If I didn't have a good personal relationship with Mr. He, why would I care whether Yuanfang Supermarket survives or not?"

"You're exaggerating. Yuanfang Supermarket was doing well, so how could it fail?" The hot-tempered shareholder who spoke first almost slammed the table.

He Zhiyu glared at him in a low voice: "Old Jiang! Let him finish his words."

"Can……"

"But what?"

"If you have read the plan, you should know that although Yuanfang Supermarket seems healthy at present, it has no ability to resist external risks. Once the market changes, it will soon capsize." Chen Pingjiang straightened his face and said, "Mr. He invited me here to do this."

"But you...are still a college student after all."

"Yes, I am indeed a college student, but I forgot to introduce my other identity just now. I am also the founder of Renren and Renren Waimai."

Some people began to wonder, and thought for a long time: "Could it be the Renren Waimai that we are cooperating with?"

Even more people have never heard of Renren and Renren Waimai.

He Zhiyu took over the conversation: "Few of you here may have heard of Renren and Renren Waimai. Renren already has 100,000 registered users, all of whom are college students from Dongjiang, and are quite active in the college student circle. Renren Waimai is a project that Mr. Chen has just launched, and it has been a huge success. I know that many of you think Mr. Chen is young, but in fact, his entrepreneurial experience, management ability, insight into the market and judgment of future trends are much better than yours. I dare to assert that it won't be long before Yuanfang Supermarket is nothing compared to him. The funny thing is that many of you still look down on others."

He Zhiyu, who was a little unhappy, spoke harshly.

At this point, everyone gradually calmed down and looked at Chen Pingjiang who was sitting next to He Zhiyu.

Founding two companies at the age of 18 or 19 and achieving some success is indeed not something that most people can do.

Okay, we admit that he is awesome, but is he really as awesome as Mr. He says?

Seeing that some people still disagreed, He Zhiyu knew that what Yuanfang Supermarket actually lacked was talents with a national vision. He sighed and said, "Most of you here are old people who have worked with me since the first store. Some of them are even my childhood friends. It's a pleasure to work with you all. I am a nostalgic person and I won't do anything like putting away the bow and the bird after the bird is gone. But to be honest, your reaction today has disappointed me. Our management has also exposed many problems. Most of them are in their 40s and 50s, conservative and old-fashioned. Maybe it's time to add some fresh blood."

As soon as He Zhiyu's words came out, many people's faces changed, and they secretly regretted that they should not have been nosy just now.

Chen Pingjiang finally understood that it was not that Lao He had no control over Yuanfang Supermarket, but that he was too sentimental. As a result, the entire management team was either made up of old people or childhood friends. They were either particularly afraid of him or felt that Lao He would not do anything to them.

This is also the reason why He Zhiyu is happy with Chen Pingjiang's shamelessness. After all, he himself can't do it.

The management of Yuanfang Supermarket has been controlled by old acquaintances and have formed classes within it. Newcomers cannot get ahead, and there is even solidarity within the classes.

During the period of stable operation of Yuanfang Supermarket, this human resource structure was not without advantages. Everyone had known each other for many years, had a good working relationship and was easier to cooperate with.

But at a critical moment, the class may deceive the superiors and the subordinates or join forces to resist. This class may not have any other ideas, but its existence itself is a problem.

The behavior of some people today touched He Zhiyu's bottom line, and he planned to take action.

Maybe Lao He didn't want to do this, but he had to do it for the future of Yuanfang Supermarket. He could certainly use his position as chairman to force reforms, but if the conservatives still had the upper hand and put obstacles in the way of reforms, that would be fatal. This also reminded Chen Pingjiang that when an enterprise develops to a certain stage, "clan power" will inevitably appear, and he needs to be careful at that time.

A senior executive who had stopped looking down on Chen Pingjiang asked in confusion, "I'm curious why you can conclude that Yuanfang Supermarket will be in danger if it doesn't change its mind?"

Chen Pingjiang raised his eyebrows: "I can't see through the future, so this is a probabilistic question, but at present, the probability is relatively high. From the external environment, rising rents, the impact of the Internet, and the strangulation of giants are all factors; from the internal perspective, Yuanfang Supermarket has a low profit margin, an older customer base, and is not very popular with young consumers, etc."

Another store manager asked: "I roughly understand the service aspect. It is indeed very different from our current service. It is not difficult to implement, but what about the cost? How do we control the service quality of terminal sales staff?"

This issue is also one of He Zhiyu's key concerns.

Chen Pingjiang gestured: "To answer your first question first, how to improve service quality? It's very simple, increase the salary. On average, increase the salary of employees in each department by 20%, change the single day off to double days off, so that employees will pay more attention to this job. Then we will raise work requirements, and by then, if they can't do well, they will be fired."

Some people secretly smacked their lips in amazement, thinking that 20 percent was quite a lot.

Everyone knows that the gross profit margin of large supermarkets is as thin as a razor blade. Yonghui Supermarket’s is only 21%, and theirs is only 17%. Is this really OK?
Facing He Zhiyu's puzzled expression, Chen Pingjiang smiled and said, "The service quality has been greatly improved, which will undoubtedly bring more customers. Next, we need to use a whole set of combined punches to increase our gross profit margin and increase the turnover generated per unit area."

When everyone in the conference room heard this, they knew that the real stuff was coming.

"On the other side of the Pacific Ocean, Costco and Sam's Club are taking the boutique route, while Walmart and Carrefour in China are taking the large and comprehensive route, and so is Yuanfang. In terms of product selection, Yuanfang should be somewhat different from traditional supermarkets, highly segmenting product categories, making some niche, high-end products that are beyond the budget level of mainstream customers, and using products to guide customers to upgrade their consumption.

The second point is the self-purchase model. At present, large domestic chain supermarkets are dominated by the backstage profit model. They make money not from consumers but from manufacturers. They make money by charging suppliers a variety of channel fees, such as admission fees, display fees, promotion fees, etc., but manufacturers will include this part of the fees in the cost. After all, the wool comes from the sheep. The advantage of the self-purchase model is that the premium and pricing power are transferred to our hands, so the gross profit of self-purchased goods is usually higher. We only need to maintain a huge sales volume and high turnover rate, and we can maintain a strong bargaining power when purchasing. In addition, we should also contact some local companies for joint procurement and lower prices with upstream companies. "

coax!
Chen Pingjiang's remarks shattered a lot of glasses. It is understandable that product segmentation guides customers to upgrade consumption, but what the hell is changing the profit model?

But these people couldn't help but admire that this young man, who was only a freshman in college, was actually very familiar with large supermarkets.

He Zhiyu's eyes lit up. Now the rent and labor costs are rising, but the price cannot be raised and the price war is still going on. With low profits, the only way to increase their profit margin is to charge suppliers a channel fee. However, Yuanfang Supermarket charges less channel fees than Carrefour and Walmart because they are not as well-known as their brands and have higher sales.

Therefore, when the purchase price is similar, the channel fee is lower, and the profit margin is naturally lower than that of competing stores.

The self-purchase model proposed by Chen Pingjiang is equivalent to changing the track. I charge less channel fees, right? Then I simply don’t charge, you lower the purchase price for me. The larger the purchase volume, the more the purchase price will drop, and the profit margin of Yuanfang Supermarket will also increase accordingly.

"Third, create private brands. Private brands not only have higher profits, but also have advantages that can greatly increase consumers' brand awareness and loyalty to Yuanfang Supermarket. We can open our own brands of bakery, fresh food, beverages, health products, daily necessities, etc. in the supermarket. It is very likely that consumers will come to Yuanfang Supermarket for these private brands in the future.

Fourth, with our own independent brand, the brand power of Yuanfang Supermarket has also increased, and we started to do e-commerce, forming a perfect closed loop. "

After saying this, Chen Pingjiang felt dry in his mouth and drank several sips of mineral water.

No one spoke in the conference room. Everyone was frowning and carefully recalling and analyzing Chen Pingjiang's speech. It would not be an exaggeration to say that it was thought-provoking.

The change from the traditional large supermarket model to the self-purchase and self-operation model has increased profits, improved employee benefits, and required them to improve service quality. Improved service quality will attract more customers, bringing greater sales to the self-purchase and self-operation model.

"He's such a monster! Compared to him, I've worked in the supermarket for ten years in vain." Someone whispered to a colleague next to him.

"I'm convinced too. No wonder Mr. He is willing to spend 800,000 to invite him."

Lao Jiang, the shareholder who first questioned Chen Pingjiang, had a changing expression on his face. He was shocked, admired, and also felt embarrassed for having just confronted Chen Pingjiang.

"Clap!"

He Zhiyu led the applause and nodded with satisfaction: "You guys are really secretive. You didn't mention any of this at the farm last time, and the plan only mentioned it briefly. What a good self-harvesting and self-operation plan. If it is really done, Yuanfang will definitely be able to reach a higher level."

"What do you think?" He Zhiyu turned around and asked everyone in the meeting room.

"I am against the risk of losses caused by simply improving service quality, but I agree with Consultant Chen's four-point strategy for increasing gross profit margin."

"As a store manager, it would be a good thing if I could increase the salaries of my employees. This would make management easier for us and also increase their sense of crisis."

"As long as we follow Consultant Chen's ideas, I can increase the capital if there is no money."

"..."

Morale is available!

From the excited and strong opposition just now to the eagerness to raise their hands to agree now, this was due to He Zhiyu's outburst, but more importantly, Chen Pingjiang's plan dispelled everyone's concerns.

If the company can make more money, it means everyone can make more money. Only a fool would object.

If we have to say who is unhappy, it is probably the purchasing department.

He Zhiyu nodded in satisfaction and immediately made the decision: "Since no one objects, let's set up an internal execution team and make sure to do our best and work on several aspects at the same time. Don't worry about the money. I will contact the bank for a loan. If we don't succeed this time, we will die. Let's fight to the death."

He Zhiyu, who felt that he had made a great decision to invite Chen Pingjiang to be a consultant, smiled warmly at Chen Pingjiang and said, "Pingjiang, let's have dinner together tonight. We can also hold a swearing-in ceremony and get acquainted with the management of our supermarket."

　This chapter contains a lot of useful information, and I don’t want to just talk about it in general terms. This is not just to show off, but to introduce the supermarket’s business model to everyone.

　　In addition, starting today, there will be two updates a day, but each update will not be less than 4000 words. The previously set policy for additional updates remains valid.

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(End of this chapter)