Chapter 390: The helpful Chen Huan.
Chen Huan: “!?”
Are you serious!?
Since when you became a matchmaker?
This girl… this girl really seems quite good…
Chen Huan carefully inspected Zhang Yaya.
Her reputation of a super School Flower that could be compared to Shui Qianyu was really not for nothing.
Her natural and without embellishment temperament alone was enough to crush the other pretty faced women.
Chen Huan’s original stance of ‘I’ll just give some advice and it’ll be up to them if it works’ completely changed now.
It wasn’t Chen Huan desiring Zhang Yaya and wanted two super School Flowers as wife but it was for the reward of the Good Lord.
He may be silent and stingy usually but what it gave was good.
For example, the scandal with Shining Technology.
How would he be able to deal with it if it wasn’t for the truth charm?
Who would be happy that the reputation he built up with so much effort be smeared in dirt?
Who wouldn’t be depressed by that?
But everything was fine now?
Shining Technology didn’t even dare to let out a fart as they apologized truthfully and even obediently handed over 100 million Yuan.
This was what the Good Lord could do!
Much less among all the skills, charms and potion, ‘Hitting a Bull Across The Mountain’ was Chen Huan’s favorite.
Which boy didn’t have some Kung Fu dreams?
Xianxia was going too much with their destroying worlds with a flick of a palm, Wuxia was more realistic.
‘Hitting a Bull Across The Mountain’ was a first-tier technique even in those wuxia worlds.
Especially after he defeated Shining Technology and he tested in his home the intermediate version and discovered the beauty of the skill.
Now, Chen Huan could condense three Qi strikes at the same time within a range of 10 meters and strike his enemy through the ground.
The ‘mountain’ in ‘Hitting a Bull Across The Mountain’ was the referred transmission medium.
It was very difficult to use the ground as the transmitter with the beginner level of the skill and it took a lot of effort to barely be able to do it.
With the intermediate level, even if he couldn’t freely use the ground, it was relatively much easier.
With this skill and unless people shot him with a gun as soon as they saw Chen Huan, anyone else with a cold weapon wouldn’t be Chen Huan’s opponent.
He couldn’t wait to see how the advanced level of the skill would be.
At that time, Chen Huan could be said to be the king of melee fighting.
Those thoughts were only for a moment.
When he came back from his thoughts, Chen Huan said to Zhang Yaya, “At this moment, the first step is to close all those stores out of the city and leave the only five stores in Lin’an open, does your dad have this courage?”
Zhang Yaya said with a light frown, “Is this cutting one’s wrist type of plan?”
Yongxing Supermarkets had 37 stores but they would have to close 32 stores out of their 37 stores, what kind of plan was that?
It was equivalent to throwing away their network and assets away and leaving only 5 little nests in Lin’an so they could survive.
Such a difference would mean they wasted the effort of two generations and more than 20 years.
Could her father handle such a great loss?
He certainly would be unwilling.
“You have to!” Chen Huan said, “With your current strength, you guys must alleviate the burden. Can you renovate and reform all the 37 stores now? Funds, manpower and supply are all troublesome things. It’s better to concentrate your energy on just 5 stores now.”
“What about the thousands of employees of those stores? What about the lease that aren’t expired yet? There are many partners too, are you going to break the contract just because you want to?” Zhang Yaya expressed her concern.
“As you said, this is a cutting one’s wrist type of plan so obviously many things have to be given up.” Chen Huan said, “The lease timeline can be negotiated with the landlord and if it doesn’t work out, you can sublet it for a lower price, it’s still better than just paying for it.”
“There’s nothing we can do for those workers. We can’t take care of them when the company can’t even manage their business so just compensate them according to the national policy! If you guys want, you guys can add one more month of salary to express your apologies.”
“As for your partners, there is no need to worry. Didn’t they want to reduce the pay delay and force you guys to pay upfront? Since you guys are about to close down, there’s no need to care about them!”
“You guys are not only ending your partnership with them on your other stores but also your 5 stores in Lin’an needs to change greatly, so you guys don’t have to resign with those distributors.”
Zhang Yaya lightly nodded without agreeing or disagreeing.
After all, it would be too immature if she reacted when she only listened to the beginning.
Chen Huan continued, “You have closed 32 stores and the remaining 5 stores need to be re-designed with a new business model otherwise it won’t do well even with the great advantage of not paying rent, it would at most be lingering.”
He wasn’t polite about it but Zhang Yaya agreed with it.
In truth, the profit of the few stores in Lin’an weren’t the highest among their supermarkets even years before.
It was precisely because of the low pressure that many shortcomings on the management and development happened so it felt like a mess.
Even if Chen Huan didn’t tell her that, she already told her father previously that they must reorganize the five stores in Lin’an.
It was possible to leech off other stores before but now the management made it like that, which was completely incompetence.
“In the internet era, the two core advantages of supermarkets, convenience and cheapness, no longer exist. So you must differentiate yourself if you want to succeed with a supermarket.” Chen Huan was straightforward, “Only by finding the weakness of online shopping and the advantage that you can use that the customers will go to the supermarket again.”
Shui Qianyu, who was doing her homework nearby, stopped to listen to Chen Huan.
She felt he was right by just listening to it.
As the saying went, fortune was in the east of the bank thirty years ago, but turns to west when thirty years has passed.
Thirty years ago, there was no internet and the messy sales with various different types of stores led to the rapid development of the foreign model of supermarkets in China.
You could buy food, clothing etc… in the supermarket without having to go to multiple shops.
Although those items were also available in department stores, the customers’ service was really poor, they couldn’t sample the items and it wasn’t cheap.
So people were more accustomed to the supermarket model.
Pushing a shopping cart with the child sitting on it and their spouse nearby… that picture was a common occurrence at that era.
Going to the supermarket also became a pastime in that era.
It was fun going around the supermarket even if they didn’t buy anything.
Many young people went to the supermarket for a date so it wouldn’t be a surprise for them to shop for two or three hours.
So supermarkets had developed rapidly and prosperously over the past two decades and who knew how much money they made.
But not anymore.
Online shopping was more convenient than supermarkets.
Those online shopping had everything and even things that supermarkets didn’t have.
A person only needed to use their cell phone to place an order. In general, it would be delivered directly to the people’s home under 3 days in most parts of the country.
The Yangtze Group, who was ranked sixth in China, had the even more exaggerated Jingtong as for their self-produced products, the order could be placed in the morning and could be delivered at night in large cities and its surrounding area.
It would arrive the next day if it was a little away.
As for the price, it was generally 10-30% cheaper.
Because they had no rental cost for their shop, no salespeople labor costs, those spending accounted for more than 10% of the total costs and it was the total price for the purchase of the goods!
This was the most unfair point but it was also a good way for people to shop.
The common people didn’t care whether it was fair or not as long as they could benefit from it. The cheaper, the better.
This was also why the emergence of online shopping swept over the country in just a decade or so, making it hard for all the supermarkets and them to lose ground.
It would be difficult for a business model to continue to be prosperous when they lose their core advantage.
It was the same for online shopping.
The moment when a new business model was more convenient, faster and cheaper than them appeared, the fall of online shopping would be even faster than supermarkets.
It could die at any moment.
Zhang Yaya suddenly got a little excited because what he mentioned was what her family needed the most.
It was also a thing all supermarkets hoped to find.
“Then Teacher Chen, what do you think we can do but online shopping can’t?” Zhang Yaya asked earnestly.
She hadn’t noticed but she became more respectful.
“Commodity quality and service.” Chen Huan said without hesitation, “As long as you do those two points well, online shopping wouldn’t be able to do anything to you no matter how fierce they are.”
Zhang Yaya was taken aback, “Aren’t these two things something our supermarket industry has always emphasized? Everyone has been doing it. Although we may not do it well, Wal-Mart, Carrefour and Ito Yokado should be good at it, right? But they are also losing ground!”
She started to feel if she had found the wrong guy.
She thought at the beginning that Chen Huan had some great plans but why did he say some common knowledge?
If those two could bring people back to their shops, how could the thousands of smart people working couldn’t do it?
Did he think he was the only smart guy around?
“I was emphasizing, the problem is if you guys are willing to get it done fast and do it well?” Chen Huan smiled lightly, “Wal-Mart, Carrefour and Ito Yokado that you just mentioned, you should know how they do it abroad, right?”
Zhang Yaya was quite knowledgeable, “Their service in the other countries are indeed good, better than in China. Both pre-sale and after-sale are included. I experienced it when I went abroad for vacation but I think this isn’t the important point!”
“The reasons why they didn’t fall in other countries is that, except for a few large cities, the rest were less densely populated, which is not conducive to the logistics and transportation of online shopping. Moreover, foreign labor costs are too high, which is also a major shackle restricting the development of online business! Once those two issues are resolved, even a big whale like Wal-Mart will be taken down!”
Chen Huan grinned and said, “You’re right but you don’t know everything yet and haven’t grasped the main point.”
This girl was good.
It was hard to see that she didn’t work or studied with her insight and vision.
However, she still suffered from the fact that she didn’t come from the same world as Chen Huan.
Otherwise, she must know that in addition to one mentioned, there was a more promising and special model in the supermarket model.
For example, Costco from the US or Fat East Coming from China.
That those two distinctive supermarkets didn’t exist in this world!