Carrefour Asia's President, Adolf, looked at the report on the table. He was not sure.
How did this happen? How did Hua Xia come up with such a company? How did they set up so many Hypermarket chains?!
Adolf could not understand why Hua Xia did not rent the shopping malls. Instead, they bought the properties and set up Hypermarkets with the supermarkets as the core. Wasn't this Carrefour's way of doing business?
Adolf had gotten his men to investigate this Tai Hua Supermarket Corporation's business model was similar to Carrefour. The profit model, management model, etc., were all similar.
But it was still a stretch to say that Tai Hua Supermarket was imitating Carrefour. After all, Tai Hua Supermarket Corporation had strong financial backing, and all the supermarkets in the world had the same sales model. But Tai Hua Supermarket's various promotions were an eye-opener for Carrefour.
The current Carrefour was not as aggressive as Feng Yu's previous life. Although they were doing promotions every day, it was still a far cry from Tai Hua Supermarket.
Furthermore, Tai Hua Supermarket was a comprehensive supermarket. Even the fresh fruits section was better than Carrefour's.
Carrefour had been scouting the Hua Xia market. But France and Hua Xia's government were not on good terms. Both sides did not have many opportunities to cooperate. Maybe it was because Hua Xia's relationship with Germany was better. The whole world knew that France and Germany were not on good terms.
Now, their relationship had improved. Carrefour had planned to enter the Hua Xia market within the next two years. But it was too late. When Carrefour was still scouting, Tai Hua Supermarket had appeared.
Also, this Tai Hua Supermarket Corporation was crazy. Which company would set up so many Hypermarket chains? Were they not afraid of losing money?
But after Carrefour asked around, they found out that Hong Kong's Superman Li had shares in this Tai Hua Supermarket Corporation. Superman Li was not only in Hong Kong. He was a famous businessman in the whole of Asia and even the world. He was the top Chinese businessman in China, and he was not someone to be trifled with.
Superman Li was not the sole proprietor. There were rumors that he was working with many people, and one of them was a tycoon in China. With all of them working together, they did not have to worry about funds. Furthermore, the property and prices in Hua Xia are very cheap. They do not need a lot of funds to set up a big supermarket.
But they had done some research. Based on the scale of Tai Hua Supermarkets and the variety of products, each supermarket needs at least 200 million RMB. This was one of the reasons why they did not enter Hua Xia.
The amount of investment was not low, and the rate of return was unpredictable. There was a lot of pressure on the funds, and the risk was high.
But Tai Hua Supermarket Corporation's registered capital was not high. Even if there were investments, it should not be a lot. If they had spent 200 million RMB on each supermarket, then 20 Tai Hua Supermarkets would be equivalent to 500 million USD based on the current exchange rates. If it were calculated according to last year's exchange rate, the investment amount would be even higher!
Isn't this investment a little too high?
Adolf did not know that most of the products in Tai Hua Supermarkets were delivered first and paid later. They only had to pay a deposit, and the payments will be made at the end of the month. Many brands had also paid the entrance fees, and these fees were paid by others. Tai Hua Supermarket's cost was very low. They did not even need to spend 20 million RMB, let alone 200 million RMB. If not, their initial investments might be worth more because of the exchange rates, but they could not afford to set up 20 hypermarkets.
It was also impossible to set up 20 hypermarkets. They did not even have enough funds to stock up!
Adolf suspected that Tai Hua Supermarkets had the backing of Hua Xia's government. If not, why would the opening of a supermarket be reported on Hua Xia's government's biggest media outlet? Since when did the government help businessmen advertise their products for free?
After Tai Hua Supermarkets opened, the sales were very good. This was something that Adolf did not expect. Feng Yu could not understand. Hua Xia was so backward. It had only been a few years since the reforms started. How could they have so much purchasing power?
Feng Yu did not expect that although Hua Xia was still backward, Hua Xia had more people. Furthermore, it wasn't that there weren't any rich people in China, and there were quite a number of them.
Feng Yu also did not understand how Hua Xia people were curious about new things and how fast they accepted new things. Furthermore, Feng Yu did not understand how much Hua Xia people liked to be crowded.
Supermarkets were crowded places, and they did not need to care about the shop assistants. They could shop around and pick out cheap items. This was very attractive to Hua Xia people.
Furthermore, Tai Hua Supermarket's promotions will attract more customers. Just look at Tai Hua Supermarkets' current marketing slogan. Many people were willing to come to Tai Hua Supermarkets.
Shop at Tai Hua Supermarkets, and your salary will increase by one level!
Tai Hua Supermarkets' products were cheap. If the family bought their daily necessities from Tai Hua Supermarkets, the savings would be equivalent to an increase in their salary.
This advertising slogan had stimulated many people's nerves and their wallets. Even if they had to walk a little longer and take the bus for an extra hour, they would still come to Tai Hua Supermarkets to shop.
There were also slogans such as, "Special offers every day, discounts every day", "Lots of products, prices clear", "Shopping at Tai Hua, you will be in a good mood every day", etc. These slogans appeared frequently in the newspapers and the radio. There were advertisements on the buses, and people were handing out leaflets in crowded places.
Within a month, almost everyone in the cities with Tai Hua Supermarkets knew about Tai Hua Supermarkets, and the reputation of the supermarkets was very good. Even in cities without Tai Hua Supermarkets, many people knew about Tai Hua Supermarkets. It was because they had seen it on the news.
Adolf regretted his decision. If he knew it was so easy to set up a supermarket in Hua Xia, he would have visited Hua Xia earlier. If he had done so earlier, Carrefour might have already opened in Hua Xia. Feng Yu had sent his men to inspect the locations of the supermarkets in Tai Hua Supermarkets. This made Feng Yu even more frustrated.
At first, Feng Yu thought that Tai Hua Supermarket's competitor was Wal-Mart, which was also entering the Hua Xia market. But who knows that Tai Hua Supermarket Corporation, which appeared in Hua Xia, was more powerful than Wal-Mart.
He knew all too well how much of an advantage a local company would have over them. They might not be more familiar with the situation in Hua Xia. Just based on the government's policies, they would be more inclined to protect the local companies.
It would be very difficult for Carrefour to enter Hua Xia again. Even if Carrefour Supermarkets opened, it would not be as good as other countries.
This Tai Hua Supermarket Corporation was not easy to deal with. Feng Yu could only hope that this company's target was the Chinese market in Hua Xia. If Tai Hua Supermarket Corporation were to enter the overseas market and compete with them, then they would have another strong competitor. This would be a huge obstacle to Carrefour's expansion.
Feng Yu decided to report this to the headquarters. Should Tai Hua Supermarket Corporation enter Hua Xia earlier and risk incurring losses, or should they wait until Tai Hua Supermarket Corporation expands and make Carrefour lose the golden opportunity to enter Hua Xia market? Feng Yu decided to let the headquarters decide.
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