The Birth of Shanghai's First Conglomerate

The times are changing rapidly.

From the mobile internet era that began 10 years ago to the current unstoppable rise of short videos.

It has only been a few years.

For Chen Pingsheng, he has been committed to traffic acquisition since a very early time.

It can be said that wherever there is traffic, there is his business company.

Yao Anni has achieved quite a lot these days, at least she is quite satisfied with it.

But for Chen Pingsheng, it was nothing special.

During the bonus period, you can earn tens of millions every month, but once the bonus period is over, you may only have a few million left.

Most young internet celebrities are like this: they enjoy a period of fame, but then they go back to doing whatever they used to do.

Therefore, he needs to plan ahead and integrate the online and offline consumer markets.

Regardless, the service trade is the largest market for daily consumer goods in China.

Despite the impact of the internet in recent years, the traditional clothing industry has been struggling.

But this doesn't mean that clothing stores are doomed.

On the contrary, the rise of short videos has given it an opportunity.

Firstly, from a business perspective, the reason why online clothing stores can sell at such low prices is...

There are a few main reasons. First, there is no need for storefront fees. Second, many of the original manufacturers directly connect with customers.

Without middlemen taking a cut, prices are naturally lower.

These two points alone can eliminate all information gaps and shatter those small or individually owned clothing stores.

These measures can only eliminate small businesses.

Anyone who has run a small business on Taobao knows that the idea of ​​making it easy to do business anywhere is a complete joke.

It's like if you want to sell a product, you have to spend money on paid advertising.

This refers to pay-per-click ranking.

Only in this way can you display your product at the top of the client interface; otherwise, it will be among thousands of other products.

If you don't increase your direct traffic unit price, no one will even see your products.

Not to mention it was sold.

Taobao's paid search ranking doesn't pay you after a transaction; instead, you have to pay one or several yuan for advertising costs every time a customer clicks.

This is undoubtedly a devastating blow to small businesses, many of which only sell a few thousand yuan a day.

As a result, we ended up losing tens of thousands of yuan in a month, and that's why.

The Express Train and Baidu's paid search ranking are practically identical.

Its benefits to capital are of course significant, since it collects money regardless of whether a customer makes an order or not.

This cost, when calculated, is already far higher than the usual rent cost.

Taobao's most profitable tool is its direct traffic service.

It probably started around 13; without a million-dollar starting capital, it's simply not suitable to start a business in a major product category on Taobao.

Because you can't even afford to spend money on direct traffic.

Offline stores have rent to pay, and online businesses also have to pay for search engine rankings.

Online, they can directly connect with the source factories. Offline, they invest 1 billion yuan. With a large channel, they can also get goods from those super-large factories at the lowest price based on the order model.

When comparing the two, the costs are actually about the same.

The key issue is still the battle for traffic.

This is also the main reason why Chen Pingsheng decided to invest 1 billion yuan in Yao Anni, because he has Tengyou Media and Xinteng Live in his hands.

The traffic is significantly larger than that of a typical online store.

Taking all the above factors into account, he is capable of running a traditional clothing store.

Moreover, they can do it very well.

This is the impact of short videos; they will redefine traditional industries.

Perhaps it won't be long before all brick-and-mortar stores will need to incorporate short videos to survive.

Yao Anni certainly can't give up online sales, she just needs to use two approaches.

It also needs to be developed in conjunction with offline stores.

Chen Pingsheng talked to her for more than an hour, promising that if she decided to take this path, he would give her more than just money.

They will also draw a very good offline physical store management team from within the group.

This was something he was very familiar with. After all, most of his listed companies operated on a chain model.

Yao Anni was quite excited to hear this. In any case, with the 1 billion yuan investment coming in, her company instantly became a super startup in the apparel industry.

If he succeeds in the future, he could become the president of a listed company.

In terms of social status, this is far beyond what a current online fashion blogger can compare to.

After much deliberation, she decided to do it anyway.

Chen Pingsheng didn't say much about the specific operational issues, because a team would be in contact with her later.

Our core strategy can be summed up in four words: high quality and low price.

If you can grasp these four words, most traditional businesses can basically succeed.

He was no exception, only his requirements were a bit higher.

For example, to achieve high quality, it is necessary to compare all products of the same type.

And being cheap doesn't mean comparing prices with the clothing store next door; that would be meaningless. It means comparing prices across all channels, both online and offline.

Only in this way can you truly gain customer recognition.

Because nowadays people are used to checking prices online when buying things.

A billion isn't a lot, at least not for Chen Pingsheng.

These things were still quite novel to Zhou Ye and Meng Ziyi, who had just joined the group.

After all, a mega-project was born in the time it takes to have a meal.

How could it not be novel?
Celebrities, to some extent, are simply tools for capital to gain traffic.

In the afternoon, Tong Zhelan and Shen Nanpeng came over together again.

Both of them are top figures in Shanghai, and the three of them sitting together to discuss anything significant is bound to be important.

Shen Nanpeng is known as the "God of Venture Capital" in China, and he has also immigrated to Singapore.

Recently, he has been deliberately keeping a low profile in China, seemingly intending to withdraw from the public eye.

Tong Zhelan is different; she doesn't need to immigrate, but her investment companies are all located overseas.

The shares are held by an overseas group.

Chen Pingsheng, however, chose to follow the national strategy.

The three roads, each seemingly different, are actually all meant to avoid some unpleasant things.

The domestic economy is in a period of transformation, and while housing prices may not be at their historical high, they are not far off either.

Many wealthy people have realized this.

Therefore, there are more and more international reports about Chinese "aunties" speculating in gold everywhere.

In fact, most of the wealthy class believe that it is no longer safe to put their money into real estate as a safe haven.

This led to the news story about overseas middle-aged women buying up all the gold jewelry on a bustling street.

Moreover, such news is constantly emerging.

Many wealthy people in China are preparing to transfer their money to gold hoarding, which will inevitably lead to a long-term rise in gold prices.

This would be great money-making news for most people, but not for them.

The price of gold only accounts for a very small portion of the overall funds; there is also a large group of wealthy individuals.

They are all preparing to flock to Vietnam, hoping to use their existing real estate speculation methods to drive up housing prices there.

As early as 14, the Vietnamese National Assembly amended the Housing Law, removing restrictions on foreigners purchasing homes.

The only two conditions are that you can only buy one house in one community, and the property rights are only for 50 years.

But if you marry a local woman, you can get permanent ownership.

Given the Chinese people's savvy approach to real estate speculation, these two restrictions are practically nonexistent.

When Chinese houses can no longer be used as a reservoir of funds, do you know how much impact this will have on neighboring countries?
Take Vietnam as an example. Since Chinese real estate speculators entered the market, local housing prices have skyrocketed.

In Ho Chi Minh City, the average price rose from three or four thousand to over ten thousand in just about a year.

Some luxury homes have even risen to 40,000 to 50,000 yuan per square meter.

You should know that the average local salary is less than 2,000 yuan, but the housing price has been raised to 15,000 to 20,000 yuan.

Working for a year without eating or drinking would only allow me to buy 1.5 square meters of land.

As property speculators' wealth skyrocketed, it also attracted even more property speculators to enter the market.

This is the impact that the turning point in China Real Estate has had on some surrounding markets.

(End of this chapter)