Perfection of Rebirth

Chapter 729 Chapter 731 It's a pity that you don't make money

Under the conditions of a market economy, the purpose of an enterprise's existence is to make a profit, and an enterprise that cannot make a profit for a long time has no need to survive.

However, this situation becomes less applicable in the Internet economy.

Many investors are more concerned about the long-term development of the enterprise.

The Jingxi Mall in the previous life only started to make a profit after many years of establishment.

In the case of good economic development and sufficient market funds, Internet companies continue to lose money, but if the long-term prospects are good, they can still maintain development through continuous financing.

However, the market cannot always be so prosperous.

At the end of November 2007, although it cannot be said that the market capital was already in short supply, foresighted investors all began to slow down the pace of development and try to hold cash in their hands.

After all, the impact of the subprime mortgage crisis has not disappeared after several months of fermentation, but has become more and more serious.

On November 2007, 11, after nearly two months, Bank of America, Citibank and Morgan Stanley reached an agreement, agreeing to spend at least US$9 billion to help the market get out of the subprime mortgage crisis.

On November 2007, 11, Bank of America began to lead Citigroup and China to raise $26 billion for super funds.

It seems that major institutions are making great efforts to maintain market stability, but this just shows that the market is very unstable now.

The direction of financial market trends around the world is sometimes very similar.

Just like when Chinese consumers buy houses and stocks, they buy up but not down.

When the financial market is booming, funds from all walks of life swarm in, and when the market is sluggish, everyone flees in a swarm.

At this time, the crisis will become more and more serious.

"Mr. Jiang, Jingxi Mall is now the fastest-growing shopping website in the country. Our current valuation has at least doubled when you bought the shares. The future is limitless," Liu Qiangxi said.

Probably because he was worried that Jiang Hui would lose confidence in Jingxi Mall after hearing the latest profit situation, Liu Qiangxi did not answer Jiang Hui's question directly.

"The subprime mortgage crisis that originated in the United States, do you feel it?" Jiang Hui didn't continue to ask directly, but changed the subject.

"I didn't feel anything at first, but judging from the recent situation in the venture capital circle, I heard that foreign venture capital such as IDG and Sequoia Capital have shrunk their investment scale, new investment has fallen into a trough for many years, and the demand for additional investment has also changed. I had to be very cautious, so I slowly felt the impact of this crisis," said Liu Qiangxi a little disappointed.

Jingxi Mall is building storage centers across the country, placing advertisements on major websites, and launching various promotional activities in order to attract new users. In the past year, not only the funds invested by Guanghui Group have been basically used up It also used the land of the purchased storage center to obtain a mortgage loan from the bank.

It can be said that Jingxi Mall is now the weakest time since its establishment.

Originally, the weakest time of Jingxi Mall should have happened in 2008.

In that year, every entrepreneur felt the rejection of investors during the financing difficulties under the cold winter of capital.

The same thing is even more serious in Jingxi Mall. At the most difficult time, Liu Qiangxi once heard 40 investment institutions say NO.

At that time, Liu Qiangxi desperately met with investment institutions, sometimes two or three a day, sometimes five or six a day, and visited more than 40, but no one was interested in Jingxi.

Every investor asked him: How does Jingxi make money?What are the advantages of your model compared with a certain treasure.com?Compared with Gome and Suning in terms of cost, what are the advantages?It is also mixed with criticisms such as low gross profit margin and poor operating efficiency.

与此同时，京西的估值跳水式下降，刘强西和投资人谈融资，价格从2亿美元降到1.5亿美元、1.2亿美元、1亿美元、8000万美元、6500万美元、4500万美元……最后降到3000万美元。

Even, Jingxi Mall has to rely on bridge loans to survive, and it can be said that it has reached the stage of life and death.

Although the current situation in Jingxi is not so miserable, some new situations have also appeared.

The huge investment in the launch of all categories of products and the huge investment in the construction of storage centers, although the daily turnover has exceeded 2007 million in recent times, the annual turnover in 100 can exceed [-] billion.

However, the last round of investment has been basically used up, and a lot of money is owed to the bank, and the funds needed are more than in 2008 in the previous life.

With a financing of [-] to [-] million, there is no way to solve the plight of Jingxi Mall.

"This is just the beginning. The impact of the subprime mortgage crisis will become greater and greater. You must be mentally prepared," Jiang Hui said.

"Mr. Jiang, there is something I want to discuss with you," Liu Qiangxi said after struggling for a while.

"What's the matter, you say."

"I want Jingxi Mall to engage in its own logistics."

"Self-owned logistics? That would cost a lot of money."

"How much money do you think it takes to build your own logistics?" Jiang Hui asked.

In the previous life, when Jingxi Mall was preparing to build its own logistics, the investor asked Liu Qiangxi to make a budget, and it turned out that it needed one billion US dollars, which is definitely not a small number.

"You don't need a lot of start-up capital, just [-] million U.S. dollars is enough." Liu Qiangxi obviously didn't want to talk to Jiang Hui about self-built logistics on a whim, but made full preparations.

"In the long run? How much capital do you think will be needed?".

"It depends on the extent of the construction, but to spread it in major cities across the country, at least [-] million U.S. dollars is needed, or even [-] billion U.S. dollars," Liu Qiangxi said.

Daily Fresh only initially built its own logistics in several first-tier cities, and it has already spent almost [-] million US dollars.

According to this rhythm, Liu Qiangxi's budget is actually relatively conservative.

After all, in addition to a few first-tier cities such as the imperial capital, there are also a large number of second-tier and third-tier cities across the country.

If we really want to spread it out in an all-round way, let alone [-] million or [-] million, even [-] billion US dollars is not enough.

"How much money is in Jingxi's account now?" Jiang Hui asked.

"Less than 5000 million".

"If I'm not wrong, Jingxi Mall will lose tens of millions every month, not to mention making money?" Jiang Hui said.

The most attractive thing about online shopping is that the price is lower than that of physical stores, and then it is convenient.

The price should be lower than that of the physical store. In addition to saving the rent of the store and reducing the labor cost per unit of goods, the online store also depends on whether you can get a lower ex-factory price.

Judging from the situation in 2007, although the online shopping market is developing rapidly, there is still a big gap compared with the physical market, which makes it unrealistic for the website to get a very low exit price.

What should I do?
Subsidy slightly.

All kinds of discounts are overwhelming, such as spending 250 minus [-], spending [-] and so on.

In this case, how can Jingxi Mall make a profit so easily?

(End of this chapter)