Chen Yizhou had already done a detailed analysis of this. He immediately explained,
"The Bund has always been the place with the largest flow of people in Shanghai. If we were to make a supermarket, the first thing we need to do is to ensure that the Bund has the highest flow of people.”
"Secondly, although the traffic in the other places is not bad, other large supermarkets have already entered. It will be very difficult for us to develop if we rashly enter these areas unless we fight a price war with them!”
"According to the scale you requested, we're not afraid of small supermarkets, even chain stores. However, Walmart and Lianhua are too big. If we want to compete with them in the early stages... It's very difficult!"
After Chen Yizhou finished speaking, he quietly waited for Zhang Mu's reply.
As the factory manager of a state-owned enterprise, he knew a lot of things. He also knew a little about how to manage and operate a company.
In the end, although factories and supermarkets were not the same industry, there were some similarities that could be learned from.
However, he was from an unorthodox background and had no professional knowledge of business and management. He could only rely on his own experience to speculate on many things. He did not know if what he said was right.
In other words, whether it was right or not was secondary. What he cared more about was whether his boss was satisfied with what he said.
After listening to Chen Yizhou's analysis, Zhang Mu first nodded, then shook his head. Chen Yizhou didn't know if what he said satisfied the boss or not.
"Old Chen, your analysis does make sense. Whether it's Walmart, which has already entered Shanghai, or Lianhua, which has long taken root in Shanghai, they are very strong. In the future, supermarket giants such as Carrefour may also enter the Shanghai market.”
After a moment of silence, Zhang Mu said,
"But who said that we really don't have the strength to fight against the other party?"”
If he wanted to do business in the supermarket industry, the biggest obstacles in Shanghai were the giants Walmart and Lianhua.
Walmart had entered the Shanghai market last year. As one of the world's supermarket giants, their capital was exceptionally strong. As soon as they entered, they directly entered the most prosperous New World Department Store in Shanghai.
After six years of development, Lianhua had opened more than 200 stores in Shanghai. Although some stores were only 100 square meters, there were too many!
With an annual turnover of two billion, in this era where the domestic supermarket industry had just begun to develop, it was not only the top in Shanghai, but also the top in the entire China.
However, if Zhang Mu were to run a supermarket, these two would indeed be a problem, but the problem would definitely not be as big as Chen Yizhou imagined.
The advantages of these two supermarkets were very obvious. Walmart's strong capital and strong brand power, or Lianhua's blooming everywhere, were familiar to all the people of Shanghai.
However, Zhang Mu also had his own advantages. Even supermarket giants like Wal-Mart and Carrefour had their business philosophy stuck in this era.
Zhang Mu, on the other hand, understood how the supermarket would operate twenty years later. His business philosophy was twenty years ahead of them!
Zhang Mu had already thought of his next move when he had just established the express delivery company and had not officially started to make profits.
"I know what to do about the operation. Old Chen, go and rent the first floor and the basement of the new shopping mall nearby.”
Zhang Mu didn't explain too much. He directly arranged,
"Nanjing Road will definitely be the most prosperous area in Shanghai in the future. If we settle down here early, we can gain a lot of influence. So what if there's Walmart next to it?"”
"What we want is to compete with them head-on. This is China, not their territory. If they want to develop here, they have to ask for our permission first!”
"Alright, Mr. Stanley. I'll contact the other party now..."
Chen Yizhou's efficiency was very high. In just three days, he had taken over the ground floor and basement of a newly opened shopping mall on Nanjing Road, about 300 meters away from the headquarters of Suda Express.
The newly built mall was not very big. Each floor was about 7,000 to 8,000 square meters. Although Zhang Mu had rented the basement and the ground floor, he had to vacate some space for elevators and other facilities. The total area was about 12000 square meters.
The rent on the basement floor was slightly cheaper, but the rent in the mall itself was slightly more expensive than the rent outside. Overall, the total price was similar to the rent of the shops in the Suda Express. The annual rent was a total of 11 million!
This was only the rent, not including labor and other costs. It was a total of 30,000 yuan a day. The cost was too high!
However, at this time, a supermarket was a good choice. If it wasn't for the lack of money at the beginning, Zhang Mu would probably have wanted to open a supermarket first.
The cost was indeed high, but if it could be done well, the profits would be terrifying!
More importantly, supermarkets were one of the most important sales channels. If they could control this channel, their influence in the industry would be greatly increased.
In the later stages, Ali had become one of the world's famous e-commerce platforms, occupying most of the domestic market. Boss Ma still wanted to set foot in the supermarket industry, and by 2019, it had already developed quite well.
This book comes from：m.funovel.com。