I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 561: 427-428: The attitude of the distributors! (4000 words)
Hillhouse’s current brand franchise system is very complex.

From the lower-level county towns that simply sell small items, especially electronic technology products, to the Hillhouse Smart Living Museum model.

Now, Hillhouse’s smart living store model has gradually become the mainstream of Hillhouse’s channel stores.

The management model of Hillhouse Smart Lifestyle Center is similar to the TK (one-stop solution for agent operation) model promoted by Zhongwei among overseas operators: channel merchants invest in opening stores, Hillhouse sends store managers and supervisors to perform daily work on the front end, and a professional retail team on the back end provides a series of platform support such as data analysis, sales training, and operation adjustments.

The biggest difference between Hillhouse Smart Life Center and other types of Hillhouse stores is that whether other stores perform well is determined by the management level of the channel dealers themselves.

The Hillhouse Smart Living Museum is equivalent to being connected to Hillhouse's brain-computer system. Hillhouse's team of retail experts who have devoted many years of research and development in the retail field have become the external brain of channel dealers.

This is equivalent to becoming a directly-operated store invested in by Hillhouse's channel dealers in disguise.

When formulating marketing strategies and promotion plans, more overall considerations will be taken into account.

Now that Hillhouse has announced that it will continue to develop the Mate series of products, Hillhouse's brand franchisees have immediately been reassured.

2018 is the first year that Hillhouse Capital was suppressed. All channel dealers are worried about whether Hillhouse Capital can survive.

Everyone supports it, but support still requires food.

In the sales business, profits sometimes depend on one or two key products.

If sales volume drops by 15%, it is very likely that profits will drop by 90%!

If Hillhouse is to remain vacant for more than two years without its Mate and P series products, it is conceivable that at least half of Hillhouse's channel dealers will go bankrupt.

And the other half is probably also struggling to survive.

High-end mobile phones are the core profit of Hillhouse's brand stores. If this big piece of meat is removed, all channel stores will be seriously hurt.

At this time, Brother Pao, a boss of Hillhouse Capital in Zunyi, Guizhou, was also looking at the secret message sent in the group with a smile on his face.

Mate series mobile phones are undergoing pre-sale registration at the normal pace!

He had a really bad headache during this period.

I lost several pounds because of this.

Now I can finally breathe a sigh of relief.

Brother Pao, who has graduated from college, is not a "daring" person who has worked hard in the communications market, and he does not have a strong "gambling nature" in him.

However, Brother Pao just laughed off the outside world's concerns and pessimism about Hillhouse.

Having invested nearly 5000 million yuan in Hillhouse Capital, he naturally had to be in the same boat with Hillhouse Capital.

In 2019, after channel dealers had been operating stably for more than half a year relying on the Mate 13 series, the inventory of Qinglong's self-developed chips was gradually exhausted, and mobile phone sales began to decline sharply.

After much consideration, Brother Pao tried to open new stores for two other brands without closing the original Huawei store.

In less than a year, these new stores became what Pao Ge called the "trial and error costs", and eventually suffered a loss of more than 200 million yuan and were all closed.

In sharp contrast, the Hillhouse store that opened earlier, due to the sales restrictions on the Mate series and P series, although its profits were not as high as before, it still maintained a stable positive cash flow.

After "new products" turned into "sadness", Brother Pao paid a heavy price for a painful realization: "Hillhouse is still the most stable brand, and consumers recognize it."

You know, although Zunyi, Guizhou, is the second largest city in Guizhou, it is still a third- or fourth-tier city. Basically, most brands will not focus on expanding in this area.

That is to say, second- and third-tier brands such as blue-green factories and coarse grain factories will be focused on.

But even so, Hillhouse's appeal in this market is still amazing.

Consumers recognize Hillhouse's products, especially the high-end models, and their users are loyal to them. They cannot be broken up or disassembled. The only complaint is that there are too few products.

In the same way of stockpiling goods, Hillhouse Capital gives high-volume models and also pairs them with high-end best-selling models with better profit margins.

In Pao Ge's opinion, this is a reasonable channel policy, which has both pressure and motivation. Instead of transferring all the inventory to the channel like the blue and green factories, they try their best to give the channel dealers the inventory. If they exhaust all the resources, even the dragons will not be able to survive.

After the sales of Hillhouse mobile phones declined, other ecological products continued to develop, and the categories of IoT products in stores became increasingly rich: notebooks, tablets, watches, headphones... and even new energy vehicles. These products made up for the loss of profits from insufficient sales of mobile phones to a certain extent.

"It's definitely worse than before, but it's still above the safety line." Brother Pao said frankly when he was interviewed by a reporter from Xinhua News Agency.

He seemed very happy today.

Hillhouse Capital has been reducing the supply of high-end mobile phones for a year, putting pressure on several of its stores.

Of course, now that the sales restrictions have finally been lifted after a year, he knows what this means!
A store can at least make several times more profit.

It's just that rough.

"The biggest lesson I learned from Hillhouse is that this company is very humane when it comes to inventory pressure."

"It can be said that they are negotiable. They will not be dictatorial and can discuss the quantity based on the actual conditions of the channel."

“It allows dealers to make money, and it also allows us to think and make decisions from the dealers’ perspective.”

At this point, a smile appeared on Brother Pao's face.

Before the suicide incident, Hillhouse’s brand stores could be described as being in great demand.

There are more than ten channel dealers competing for the location of channel stores in almost every region.

Every store is the winner by winning the bid with a premium price.

Each store requires an investment of several million in brand franchise fees and customized channel store decoration according to Hillhouse's requirements.

You know, in the outside world, before suicide, the transfer fee of a channel store, even in a third or fourth tier city like Guizhou, would be tens of millions!

And there is still no demand for it.

Who would transfer a golden doll that makes a lot of money?
But after the suicide incident, Hillhouse's brand stores were suddenly neglected.

Not to mention the premium, many existing channel dealers have transferred their quotas.

When the market was at its lowest, Brother Pao took the risk and took over two more stores.

Compared with the original transfer fees of tens of millions in the market, these two points were negotiated for only more than 400,000 yuan.

The original store owner was also not optimistic about Hillhouse's future after its self-firing.

I thought I'd take advantage of it now while I still have some popularity, and not let it ruin my own life.

So Brother Pao bought the bottom. Now Hillhouse has resumed sales of the Mate series. Apart from other things, several points of sales have been maintained.

As long as there is no loss, Hillhouse’s product iteration will be completed in a few years and will definitely reach a higher level.

I have made a lot of money by acquiring two stores, and they are high-end Hillhouse Smart Living Centers!
Without going into other details, Hillhouse’s brand stores are now popular again.

It is true that things change over time, so don’t look down on the young because they are poor!

The Xinhua News Agency reporter standing by looked at Brother Pao in shock.

In his impression, Hillhouse has always been a very high-profile and strong company that has its own ideas about product research and development and direction control.

But it is surprising that such a company treats its channel partners so well, especially at a time when it has been self-destructed and its own capital chain is still a little tight.

This is a company that can truly be said to have industry responsibility and a sense of patriotism!
This time he came here, he also hoped to write an in-depth article about Hillhouse after its self-commitment.

And Hillhouse’s channel partners are his entry point.

He found it incredible that this company, which had such a huge channel system and was operating in a self-disciplined environment, would not force the stock to be held.

Afterwards, he interviewed Wang Dalu who works at the Hillhouse Experience Store, a high-end brand store located in the most popular and high-end shopping mall in Zunyi City. It is also the best located one among Pao Ge’s several experience stores.

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Since she started working in the store in 2015, she has experienced the peak period of tri-fold phones as a shopping guide, as well as the lows in the past year.

The income is definitely lower than before, but it is still high among peers. Working at Hillhouse is less stressful. For almost all products, customers will not have too many doubts when they come in, so it is not that difficult. This is also the main reason why Wang Dalu insisted on staying.

Hillhouse’s ecosystem is now very complete.

There are not only mobile phones, but also cars and various small items that are derivatives of Hillhouse.

Such as electric fans, hair dryers, plug-in electrical wires and so on.

Even though he cannot sell the strictly restricted Hillhouse Mate series and P series mobile phones now, he can still earn a considerable commission by relying on these very practical small commodities and the large series of Hillhouse Automobile models.

In the Hillhouse system, all products are integrated into an APP called Hillhouse Home.

There will be a variety of smart home products with different functions.

It involves almost all aspects of life.

Basically, you can control electrical appliances in every corner of your home just by tapping on your phone.

Once you get used to it, it will become addictive.

In addition, now is the peak period for home purchases, so many younger consumers will simply buy the Hillhouse family package and choose Hillhouse for all their home appliances!
From televisions to air conditioners to electric curtains to smart lighting, etc., all are Hillhouse products, which makes his sales very smooth and reassuring.

The Xinhua News Agency reporter standing nearby was amazed after hearing Wang Dalu's eloquent talk.

He is older, in his early forties, and would hardly use such overly intelligent household items.

But when I heard Wang Dalu talking about Hillhouse's concept of smart living, I couldn't help but sigh, "Compared with the three-fold mobile phone, driverless taxi and other works that shocked the world, this concept of smart living will really change this era!"

"Of course not! I also have a whole set of smart living products at home. I was not used to it at the beginning, but it is really comfortable after using it for a long time. It is true that lazy people change the world! In fact, this whole set of products is not expensive. The price is almost the same as the corresponding ordinary products. Who can't afford home appliances now?" Wang Dalu nodded with a smile.

He strongly agrees with the concept of embodied robots proposed by Hillhouse.

The future world will definitely be changed by lazy people!
Who wants to do housework, cooking and taking care of children all day long!

Isn’t it nice to lie in bed and sleep in, play games all day, eat and drink and have a leisurely day off?

The Xinhua News Agency reporter standing by initially disagreed, thinking that if the society was deserted, then what was the meaning of life?

But after he finished listening to what Wang Dalu said, he couldn't help but nodded.

If you live your life without suffering, you will suffer all your life.

That's really not worth it!
Hillhouse’s philosophy is to allow people to enjoy the blessings they deserve in this life, which seems to be really good.

"Across the aisle from this Gaoling Experience Store is a Pingguo flagship store. I chatted with them a while ago. They think our store can't last much longer and it is estimated that it will go bankrupt and close in less than half a year."

"Their store manager was also very familiar with me at the time, and he even asked me to come over to work."

"But this year has passed, and we are still here, but the employees in Pingguo are coming in and out, having a great time."

"If we hadn't lacked Qinglong chips, we would have closed their store long ago."

Wang Dalu smiled when he talked about this.

I can still vividly remember the expressions of the Pingguo employees at that time. They all felt that Pingguo would definitely be able to snatch some of Hillhouse’s high-end mobile phone sales share in the future.

It now seems that Hillhouse can still remain stable, but Pingguo may not be so sure.

Their products have not been updated for many years, and their current product strength is far behind others.

So even though the sales of the Mate series and P series have declined now, Zhongwei's sales are now in an aggressive trend, which has directly confused Pingguo.

Thinking of this, Wang Dalu still felt a little unconvinced.

If Hillhouse's chips are not self-disciplined and cannot keep up, not to mention the sales in mainland China, even the sales in the whole world, not to mention Pingguo, which only produces high-end products, even Sansang Electronics, which has been squeezed out of the Chinese market, will be pushed off the pedestal!
Now the biggest pain point of chips is also the pain of the entire Hillhouse terminal.

There is no way. Since de-chipization is so troublesome now, Hillhouse will naturally digest this negative news slowly.

The Xinhua News Agency reporter standing by nodded repeatedly.

He could see that the employees of Hillhouse Channel Store had really built up extraordinary confidence in this brand.

You know, more than ten years ago, or even five or six years ago, Chinese people generally were not interested in Chinese brands.

The first impression is low price, low quality and low reputation.

But now the rise of Hillhouse has changed this phenomenon.

Whether it is a tri-fold mobile phone, the Mate series and P series mobile phones, or Hillhouse's Yangwang, Wenjie, and Tang and other products, they are not cheap.

What’s more important is that even an ordinary channel store employee or ordinary salesperson has a huge sense of identification with it.

Can this company survive this crisis of self-destruction?

He already had the answer in his mind.

(End of this chapter)