This was the first time both of them met, and it was pleasant. Liu Yonghao felt that it did not matter if Feng Yu was going to invest in Minsheng Bank. As long as Feng Yu said that he wanted to participate in the Guangcai Organization, it was enough.
But the final decision was not in Liu Yonghao's hands. Although Liu Yonghao was one of the initiators, the final decision was still made by the government.
Feng Yu was not in a hurry. It would be better if this matter could be delayed until 1998. It was not worth it to invest now. But after 1998, he will be able to make high profits from the Asian Financial Crisis. At that time, he will have the money to invest.
Furthermore, Feng Yu had also asked Feng Yu. Minsheng Bank might not even be set up next year. The earliest would be 1996. Feng Yu might as well let others invest first and wait until 1998 to buy the shares. Feng Yu wanted to get a loan from Minsheng Bank, but it was not possible in the short term.
If Tai Hua Supermarket wants to expand, they still need to get loans from other banks. Feng Yu will contact the banks in China, and Fu Guangzheng will contact the banks in Hong Kong. They will see which bank can get a higher loan with better conditions.
But Feng Yu remembered Li Zekai's loans in his previous life. Li Zekai could get a large sum of money from one project. This time, it should not be a problem. After all, Superman Li owns a stake in Tai Hua Supermarket.
Feng Yu felt that funds were not the most important thing now. The most important thing now was to locate the location and set up the stores. He must prevent other competitors from appearing.
In Feng Yu's previous life, there were already a few supermarkets in China. For example, Hua Lian was registered earlier than Tai Hua Supermarket. But the scale of these supermarkets was not as big as Tai Hua Supermarket. Their product types, service, display of goods, advertising, marketing, etc. were not as good as Tai Hua Supermarket. Although Hua Lian also wanted to set up a supermarket, it could only be considered a shopping mall.
But it must be said that a good location was very important. Having a stable customer base was also very important.
In Shanghai, Hua Lian's supermarket had affected Tai Hua Supermarket's development. Although they only had two stores, their sales were not low.
But after Tai Hua Supermarket opened in Shanghai and had two branches, Hua Lian Supermarket's sales started to drop. This month, it was more obvious.
Feng Yu and his men's strategy was to snatch away Hua Lian's market share. After all, Hua Lian's management, operation, product placement, sales channels, etc., could not be compared to Tai Hua Supermarket. Even Tai Hua Supermarket's buildings were old and dilapidated. There were wires running through the buildings, and it was a mess. Tai Hua Supermarket was not as clean and stylish.
The branch managers in Shanghai also started to poach people from Hua Lian Supermarket. Tai Hua Supermarket's salaries were already higher than Hua Lian Supermarket. Furthermore, the benefits were better and there was a clear path for promotion.
When the employees joined Tai Hua Supermarket, they were told that Tai Hua Supermarket will continue to expand and there will be many new branches. If they went to the new store, their basic salaries and benefits would increase, and they could even become leaders.
Also, the new branch might not be far from Shanghai. It could be in Suzhou or Hangzhou. Maybe it would be closer to home.
Tai Hua Supermarket also used their better distribution channels and lower prices. They sent their men to Hua Lian to check on the prices and then sell their products at a lower price.
At first, Feng Yu thought that the supermarket's profits would not be high. He thought that 20% would be the highest. But after he opened the store, he realized that the supermarket's profits were too high.
For example, a pair of silk stockings was selling for 10 RMB in the mall, and the imported price was only 3 RMB. Tai Hua Supermarket was selling it for 8 RMB per pair, and the profits were more than double.
There was also the domestic produced Great Wall Dry Red Wine. The shops were selling it for more than 20 RMB per bottle, but Tai Hua Supermarket's imported price was less than 10 RMB. 18 RMB per bottle was enough to attract many people to Tai Hua Supermarket.
Those imported products had higher profits. Some companies with import channels took advantage of the Chinese's love for foreign products and sold them at a higher price. Their profits were several times higher.
Although Tai Hua Supermarket's prices were much lower, their profits were still more than doubled.
Regardless of the size, everything in Tai Hua Supermarket was very cheap. Even the eggs were cheaper than the farmers' market. But the profits were not low.
Coupled with the marketing efforts, there were a lot of customers. Just look at the two branches in Shanghai. Many people from other districts came from far away to shop. This was because the products in Tai Hua Supermarket were cheaper by more than 10%. Some were even cheaper by more than 20%.
The profits were already high, and with the increase in sales and the daily promotions, Tai Hua Supermarket's turnover was increasing every week.
The popularity of Tai Hua Supermarket made things difficult for Hua Lian. This was what Fu Guangzheng wanted. He wanted the location of Hua Lian. If he could buy over the two supermarkets there and build a new shopping mall there, the business would be booming. Although it would take a few months, compared to the profits, it was still worth it. Furthermore, he could get rid of a competitor in the future.
Not only in Shanghai. In Beijing, Bing City, Tianjin, Shenyang, Jinling, etc., there were shopping malls that were going to be converted into supermarkets or hypermarkets. It was obvious that they were envious of Tai Hua Supermarkets' popularity.
For example, in Bing City, there was a new shopping mall called Central Orchid Shopping Mall. The bottom two floors were also planned to be a hypermarket. Even the positioning of the shelves were the same as Tai Hua Supermarket. It was obvious that this was an imitation.
Feng Yu called Zhang Ruiqiang and asked him what was going on. He had wanted to buy this place, but you refused to sell it. Didn't you say that you want to build a department store? What was wrong with this Central Orchid Supermarket?
Zhang Ruiqiang replied embarrassedly. This was done by his subordinates, and he was not sure. By the time he found out about this, the planning had already been completed and the shelves had already been ordered. He could not just demolish it. Furthermore, one supermarket would not be able to snatch away Tai Hua Supermarket's business. He asked Feng Yu not to be too calculative.
Feng Yu did not mind. In cities like Shanghai, Shenzhen, and Guangzhou, other supermarkets had already opened their own shopping malls. Tai Hua Supermarket was still able to snatch the market share. Not to mention Bing City, Central Orchid was only a follower.
That shopping mall's location was very good, and Fu Guangzheng was thinking of buying that shopping mall. Tai Hua Supermarket already had a certain customer base, and with Tai Hua Supermarket's branding, there would be no worries after the opening.
Tai Hua Supermarket's marketing was very strong, and many people were curious about Tai Hua Supermarket. They had seen it on the news and wanted to know what it was. When they entered the supermarket, they saw all sorts of promotional items. All of them were much cheaper than what they were used to. This stimulated their desire to buy.
The introduction of shopping cards and membership cards also attracted a large number of customers. Tai Hua Supermarket's nearby food stalls, vegetable markets, small shops, snack bars, etc. were not doing as well as before. On the other hand, the shopping malls around Tai Hua Supermarket were doing better than before.
Fu Guangzheng and the rest had set their sights on the locations where other supermarkets had already opened. They had decided to acquire those supermarkets!
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