Reborn, back to a small county town to become a wealthy family

Chapter 638: Deeper Thoughts

In addition to Jiang Yuanshan, Luo Jianguo was also present.

In order to make it easier for his father to understand, Luo Yang briefly explained the e-commerce operation model and what group buying is before explaining it.

Of course, it is impossible to go into detail, as it only took less than ten minutes.

"Because they copied the U.S. model, most domestic group buying websites are still engaged in physical group buying. Although they have been able to get extremely low discounts on goods in the short term by taking advantage of overcapacity, this phenomenon cannot continue in the long run."

At this moment, Jiang Yuanshan and Luo Jianguo were not focused on eating. They each lit a cigarette and watched Luo Yang talking.

"Moreover, this operation mode of directly connecting with the C-end has eroded the market share of Taobao and JD.com. These two e-commerce giants cannot ignore it. So some time ago, Taobao launched "Juhuasuan" in order to grab back this market share."

Seeing that his father and father-in-law had lit up cigarettes, Luo Yang didn't care that Jiang Fan was there and lit one himself.

Jiang Fan, who was originally chatting about travel with his mother and mother-in-law, also cast his gaze over.

It’s not because of smoking, but because of the scene at the moment.

The man she loved was giving a long speech on e-commerce models, and her father and father-in-law had more serious expressions on their faces than the other.

She suddenly felt proud.

Moreover, Jiang Fan is about the same age as Luo Yang and is more familiar with Internet concepts, so he was unconsciously attracted to the conversation between the men.

"So I think this physical group purchase model will not last long." After a series of preparations, Luo Yang made this judgment.

"Then why do you want to get involved in the group buying business in this market environment?" Jiang Yuanshan couldn't help but interrupt and ask.

"Because in addition to the physical group purchase model, there are other models."

Luo Yang smiled and said, "Dad, the group buying model I'm doing now is more like a service platform, and the content I provide is also local business services. This service does not overlap with e-commerce giants Taobao and JD.com, and the discounts for business services are very different from physical discounts."

When he said this, he began to give examples.

"Most of the goods involved in physical group purchases, such as clothing, shoes, hats, and home appliances, have already been produced and are piled up in warehouses. In order to recover funds, companies will give huge discounts, but it is impossible to set extremely low discounts for products that have not yet been produced."

Although it is a bit tongue-twisting, it is not difficult to understand.

There was no need to pause to digest these words.

Luo Yang continued, "But the content of commercial services is different. For example, if a restaurant's discount coupons cannot be sold on my service platform, the restaurant does not need to pay for it because their kitchen does not need to make it."

This metaphor may not be so apt.

But as Luo Yang continued to give examples of several other services, Jiang Yuanshan and Luo Jianguo nodded unconsciously.

Hotel room group purchase reservation, KTV box group purchase reservation, movie ticket group purchase reservation
These contents are fundamentally different from physical group purchases.

“So the group buying you do is actually just building a platform to provide services?”

Jiang Yuanshan was the first to understand, and he talked to Luo Yang: "The other models you just mentioned are more like wholesale. It's just that this kind of business behavior is put on the Internet. Is this the Internet?"

"Dad, your analogy is absolutely correct."

Luo Yang gave Jiang Yuanshan a thumbs up.

"The biggest advantage of the Internet is that it breaks down information barriers, and as the scale grows, the marginal cost decreases more and more obviously."

"Dad, Luo Yang is right."

Jiang Fan suddenly interrupted at this time: "The conventional commodity sales model requires the establishment of various channels, the establishment of regional relationships, and the enlistment of first-, second-, and third-tier agents. After the profit exploitation of the middle layers, the price of the terminal commodity will be much higher than the ex-factory price."

Her insights are well-founded.

Previously, the sales of power banks and selfie sticks all adopted the conventional retail model, which required establishing sales channels across the country and even finding agents at all levels.

As the president of Sunshine Electronics, Jiang Fan certainly understands the various links in the process.

Now after listening to Luo Yang's explanation and combining it with practical operation, it is easy to summarize the following content.

"E-commerce platforms directly connect customers and production ends, so price advantages are beyond words. Intermediate channels at all levels are no longer needed. This is what Luo Yang just said about breaking down information barriers and achieving the cost-reducing effect."

Jiang Fan spoke out his thoughts in one breath: "After returning from my trip to Europe, I will sort out the sales model of power banks and selfie sticks. Luo Yang, maybe I will need to use your e-commerce platform at that time!"

"Snapped!"

Luo Yang snapped his fingers and replied with a smile: "OK, no problem!"

"Young people still have lively ideas." Jiang Yuanshan smiled with satisfaction after listening to the conversation between his daughter and son-in-law.

"Yes, our generation is a little behind, and we still need to learn from them."

Luo Jianguo also began to sigh.

Luo Yang raised his glass and suggested that everyone have a drink.

"Yangyang, how is your new model going?"

After putting down the wine cup, Luo Jianguo asked his son: "Will it be like the thousand-group war we talked about before, where everyone follows suit and ends up..."

“There were platforms that did this before me.”

Luo Yang smiled and responded, "If you really count, I am the one who followed the trend. Besides, many group buying platforms are now seriously injured, and the market is in a window period to some extent. The e-commerce platform I run mainly develops the market in Guangdong Province. The platform has sales of about 8000 million per month, which can only be regarded as small and medium-sized."

"Is 8000 million a month considered small?"

Jiang Yuanshan was stunned.

"Taobao's sales exceeded 1000 billion last year!"

Luo Yang reported a number that made Jiang Yuanshan open his mouth wide.

“It’s incredible”

"It's unimaginable."

Luo Jianguo and Jiang Yuanshan were amazed by the number 1000 billion.

But they don’t know yet that Taobao didn’t start making profits until 08, and the profits have never been very high. Even with such a large sales volume now, the profit figures are not very large.

"We are currently focusing on Guangzhou and Dongguan, and are expanding into other cities including Pengcheng, Foshan, Zhongshan, and Zhuhai."

Luo Yang continued: "According to the current development speed, if no strong competitors emerge, in two or three months, this scale can double or triple, reaching about 2 million per month."

“Why wasn’t it placed in the Yangtze River Delta region?”

Jiang Yuanshan asked in confusion: "The market in the urban clusters of Jiangsu, Zhejiang and Shanghai is bigger, right?"

“The main reason is that the acquired company is in Guangzhou.”

Luo Yang then explained the two companies he had chosen, one in Hangzhou and one in Yangcheng, and he ultimately chose the one in Yangcheng because of the price.
You can't talk about Liang Yuxin in front of Jiang Fan, right?

"The company has already made a plan to expand into the Yangtze River Delta market in the fourth quarter."

Plans are plans, but Luo Yang himself is unsure because Meituan in the north is also about to make a move.

Fortunately, he does not intend to compete with Meituan in the food delivery market, and his ultimate target is still Taobao.

Moreover, Luo Yang did not mention anything about the content website at the banquet, because Station C would not be launched until August, and there was nothing much to say now.

The dinner didn't end until nearly half past nine because the three men were chatting.

After the show, Luo Jianguo and Gu Honglan returned to their residence in Songjiang, while Luo Yang accompanied his father-in-law and his family to a hotel near Pudong International Airport.

In addition to sending Jiang Fan and Xiao Yujun on board the plane tomorrow, I also have to introduce the bodyguards to them mother and daughter.

"Hubby, wipe your face first. I'll go make a cup of strong tea."

The two are engaged, so there is no problem for them to live together.

Moreover, Luo Yang drank a lot of alcohol and needed someone to look after him.

"Why don't you go to bed early?"

"There's plenty of time to sleep on the plane tomorrow." It takes 21 hours to fly from Shanghai to Paris, and that's because we can now fly directly through the airspace of the Big Goose. After the Big Goose and the Little Crow fought, flights between China and Europe had to go through the Middle East, and the flight time was even longer.

"Okay, I'll chat with you."

Luo Yang is now in a state of being half drunk but not drunk, commonly known as being tipsy. At this time, the subcortex of the human brain is relatively active and relatively excited.

But I can’t take a shower. As soon as I touch hot water, I’ll feel drowsy.

"Hubby, you're expanding into more and more new businesses. You'll definitely be busier in the future."

Jiang Fan made a cup of strong tea and placed it on the coffee table. Then he sat cross-legged on the sofa, pressed Luo Yang's upper body into his arms, and gently rubbed his head with his middle finger.

"Yes, it's supposed to be me who accompanies you to Europe this time."

Even though he was a little drunk, Luo Yang could still hear the hidden meaning in Jiang Fan's words.

He said apologetically, "I don't have time this year. Let's start next year. I will go on a trip with you once a year, for at least a week."

"keep your word?"

"keep your word!"

"Husband, I love you!"

Jiang Fan was very happy and turned Luo Yang's shoulder and kissed him.

"Hubby, I'm not blaming you."

After the passionate kiss, Jiang Fan, who was in a good mood, maintained an intimate state. While rubbing Luo Yang's cheek, he said: "When I come back from this trip to Europe, I will be busy. By then, I may be the one who doesn't have time."

"No, Dad isn't trying to train you to be a chief financial officer."

Luo Yang touched Jiang Fan's forehead and said, "I just don't have anyone under me right now. If I can find suitable talents for a few key positions, I only need to consider the general direction of the company's development and no longer need to work so hard."

"what?"

Jiang Fan was surprised and asked, "You can't find the talent you need in a big city like Shanghai?"

“It is easy to find a good general, but it is hard to find a good commander.”

Luo Yang sighed and said, "It may be that I took it for granted. Most of the talented people are ambitious and most of them start their own businesses. At the very least, they are co-founders of some potential companies. It is almost impossible to pick up leaks in the talent market unless you use a hoe to dig."

"cluck"

When he heard the hoe being swung, Jiang Fan couldn't help laughing.

"Then just dig as hard as you can." She encouraged Luo Yang softly.

"Forget it. Talents like this either have shares or hold important positions in other companies. It's hard to poach them unless something unexpected happens."

Luo Yang sat up straight and reached out to pick up the cup from the coffee table.

He sipped his tea and said, "We can only hope to select young people with potential and train them from within. We can also relax the requirements and recruit more generals with strong execution capabilities to implement my intentions."

"Oh, by the way, husband, I remember you mentioned before that you didn't want to get involved in the Internet industry, why are you doing that now..."

This is what Luo Yang said two years ago. At that time, his views were very clear. He wanted to delve deeply into the real economy. Now he is suddenly entering the Internet industry. Although it is not a slap in the face, it is at least a bit beyond Jiang Fan's expectations.

Jiang Yuanshan, on the other hand, doesn’t care. As long as he can make money, it doesn’t matter whether it is a physical or virtual industry.

"To be honest, that wasn't really what I meant at first."

After putting down the teacup, Luo Yang leaned back into Jiang Fan's arms and closed his eyes slightly.

He said slowly, "Since integrating the Magic City industry and establishing a group company the year before last, there has been no main business at the group level. At the end of last year, I asked the investment department to help the group find one or two main businesses. I didn't expect that after choosing and choosing, they still decided on the industry in the field of e-commerce."

"Honey, the Internet industry is all about the top players taking over."

Jiang Fan had attended a public lecture on this topic at Soochow University and had an impression of it: "In each segmented track, you either become the top one or two in the industry, or go bankrupt or be acquired. Unlike the physical manufacturing industry, there is still an intermediate state."

Her implication is clear: Taobao and JD.com are already powerful in the e-commerce field, and it will be very difficult to grab a piece of the market now.

"The path I take is different from that of Taobao and JD."

His mind was not so clear at the moment, so Luo Yang could only reply: "My reaction is a bit slow now, and my thoughts are not so clear. When you come back from this trip, I will find a time to talk to you in detail."

"Yeah!" Jiang Fan nodded.

She knew that Luo Yang had drunk a lot of wine tonight, so it was normal for him to be in this state.

"Hubby, if you can't hold on, why don't you rest early?"

"you are tired?"

Luo Yang sat up again: "Why don't you take a shower first, I'll go outside to smoke a cigarette and then come in."

"Just smoke it in the living room."

Jiang Fan took a cigarette from the cigarette box on the coffee table, put it into Luo Yang's mouth, and lit it for him while saying, "I'll accompany you to finish this cigarette before we go take a shower."

Luo Yang still stood up and walked to the chair behind the desk and sat down.

"Husband, Lao Jiang and I had a formal chat at home the night before last."

When Luo Yang only had half a cigarette left in his hand, Jiang Fan suddenly said, "When I come back from my trip to Europe, he will arrange for me to join the board of directors of Yuanfan Group."

"Ok?"

Luo Yang was slightly stunned.

After thinking for a moment, he looked up at Jiang Fan and asked, "How many shares does Dad plan to give you?"

"5%"

Jiang Fan responded: "Five percent of the group's shares"

At this point, she paused.

Luo Yang: “?”

"Lao Jiang also said that after we get married, he would give me 5% of the group's shares, and after we have a child, he would give the child 10% of the shares."

Jiang Fan bit his lower lip and said, "You won't be angry, will you?"

"Why am I angry?"

As soon as he said this, Luo Yang reacted.

The reason why Jiang Fan looked embarrassed was that after she and Luo Yang got married, Jiang Yuanshan still did not consider giving shares to his son-in-law.

"You."

Luo Yang understood and started laughing.

"Silly girl, Dad is doing this for my own good"

"what?"

Jiang Fan was stunned and looked at Luo Yang in confusion.

"If Dad gave me shares in Yuanfan Group"

Luo Yang smiled and said, "Then I have to give you shares of Lingshi Palace Group, or shares of Future Guangfan Group?"

"Uh"

Jiang Fan didn't know how to respond to Luo Yang for a moment.

"When you come back from Europe, we'll go back to Yang City together, and then dad and I will have a good chat."

Luo Yang put out his cigarette: "He has deeper thoughts, so don't worry about it."

(End of this chapter)