Today, Feng Yu came to Zhang Ruiqiang's office again.
"What did you say? Didn't you tell me that you are not going to acquire other retail groups in China? "
Zhang Ruiqiang was shocked when Feng Yu told him that Tai Hua Supermarket Corporation is going to expand again. Didn't they just acquire a supermarket group in the US? Why are they going to acquire another retail group in China?
"Do you know that many of the retail groups in China have become joint ventures? Many western retail giants had entered the Hua Xia market. Do you know what the consequences will be? "
"If I don't acquire those smaller supermarket chains, will those foreign investors tolerate me? They will grow stronger and make lots of money from us. "
Zhang Ruiqiang was puzzled. "That's not right. The National Academy had set regulations for the local authorities. Although there are no official regulations, no one dares to go against it. Those foreign investors' shares should not exceed 50%, right?"
The higher-ups had hinted that foreign investors are not allowed to own a controlling stake in many industries.
Feng Yu rolled his eyes. This was the National Academy's idea. If it weren't for this regulation, many supermarket chains would not sell 50% shares to foreign investors. Their subordinates had purposely held back.
The foreign investors might still have their authority, but there were many restrictions. If the shares of some supermarket chains were dispersed, then the foreign investors could acquire the controlling stake of the supermarket chain by acquiring the shares of other companies.
After becoming the major shareholder, the foreign investors might even become the sole proprietorship. The major shareholders were in control of power. They could decide whether to distribute dividends or not. If the minor shareholders couldn't bear it, wouldn't they have to sell their shares in the end?
"Old Zhang, 50% might seem like 50%, but don't forget that this is our Hua Xia market. Why should we let them have half of the authority?"
"What about 51%? We will be the major shareholders?" Zhang Ruiqiang asked.
"That will not do! Think about how those automobile manufacturers negotiated for joint ventures. It's not that joint ventures are bad. Those western retail companies are good at management, etc. But letting them own 30% of the shares is considered good. We must not let them own more than one-third of the shares. We must ensure that we have the absolute controlling stake. "
"Also, there must be some preferential terms. For example, when they want to sell their shares, we must have the first right to buy back the shares. Or you can set up a mandatory repurchase clause. If necessary, you can buy back the shares at a high price. "
"I'm not saying that we must oppose foreign investment, but we can't give them too many opportunities to develop and grow. Once they reach a certain scale, they will have a great influence on our industry. "
"Do you want our country's industries to be affected by foreign companies? This situation could have been avoided. It's not like this is some high-tech industry. "
Zhang Ruiqiang looked at Feng Yu seriously. "Is it really that serious?"
"Not at the moment, but I don't know if there will be any in the future. Furthermore, this retail industry will also promote the sales of foreign products in Hua Xia, and it will increase our imports. Aren't we trying to stimulate domestic demand? We can't let all the money end up in the pockets of foreign investors, right? "
Zhang Ruiqiang frowned. "Is there no other way?"
"Yes. Have you forgotten that there are still many state-owned retail groups in our country? Let those groups swallow up those small retail groups, and this situation can be avoided. "
"Even if they cannot swallow up those small retail groups, they can still raise the purchase price. Those foreign companies will not be able to recover their losses in a short time, and if there are any changes in the industry, they will suffer huge losses! "
Zhang Ruiqiang sensed the hidden meaning in Feng Yu's words. "You mentioned that there will be changes in the industry. What will happen to the retail industry?"
Feng Yu had not wanted to tell Zhang Ruiqiang about this. But since he had spilled the beans, he does not mind telling Old Zhang now. Anyway, the higher-ups will find out about this as time passes.
"Old Zhang, have you heard of online shopping?"
Zhang Ruiqiang looked at Feng Yu. "It's just online shopping. I thought it will be something new!"
"There are many online shopping websites in China now, and they had helped the logistics industry to develop. Your brother-in-law's Wind and rain logistics company is doing well. "
Li Shiqiang is Feng Yu's brother-in-law, and Zhang Ruiqiang had known this for a long time. When Li Shiqiang married Feng Yu's sister, Zhang Ruiqiang had attended their wedding.
"You are saying that online shopping will affect the traditional retail industry?"
With Zhang Ruiqiang's current position, he must have heard of new things, and his subordinates will report to him. It is not easy to manage the whole country's economy.
But Feng Yu had also invested in online shopping companies and traditional supermarkets. Zhang Ruiqiang did not know which industry Feng Yu is focusing on.
"Since you know everything, why are you still asking me?" Feng Yu is unhappy. Since you think this is not new, do you know the advantages and disadvantages of online stores and traditional stores?
Zhang Ruiqiang and Feng Yu stared at each other for half a minute, and Zhang Ruiqiang was defeated.
"I am asking you for advice. Aren't you an economist?"
Feng Yu said with a satisfied look. "When you can buy whatever you want without leaving your house, and you have more choices than a physical supermarket, will you be willing to buy online? Although you might need to pay for the transportation, there should be people who are willing to buy online. "
Zhang Ruiqiang immediately retorted. "That's not right. The transportation for large items will not be cheap, and physical stores will provide free delivery and even installation."
"Also, clothes, shoes, etc. will need to be tried on. What if they are not suitable to be bought online? Even if you are willing to exchange, it will take a long time, and you still need to pay for the transportation, right? "
"Also, the best selling items in supermarkets now are fresh food. Can you buy these items online? When you buy them online, they will not be fresh anymore, right? "
Ah? Old Zhang had considered these problems, and Feng Yu was surprised. But all these problems mentioned by Old Zhang had been solved in Feng Yu's previous life.
"Old Zhang, have you thought about this? Online stores do not have the rental fees of physical stores, and the cost will be lower. They can give up the transportation and installation fees, and the consumers can even save money. Do you think the consumers will not be tempted?"
"Clothes, shoes, etc. might need to be tried on, but normal clothes and shoes have different sizes. As long as the consumer knows their size, they will be able to buy the right size. Because of the low prices, even if it does not fit well, many people will still be able to accept it. "
"As for the fresh food you mentioned, this can also be solved in the future. You can use the same city express delivery from the nearest fresh food market to your house. "In Feng Yu's previous life, Number One Store was also doing this, and the profits were not bad.
Of course, this fresh food market will be the best if it is combined with physical stores.
Zhang Ruiqiang looked at Feng Yu's serious expression. Is Feng Yu joking? That means physical retail will be affected by online retail in the future?
Since this is the case, then what's the point of expanding? The bigger the scale, the more losses they will incur in the future.
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