Reborn in 08, a heretical cultivator starting a business

Chapter 146 A Big Move: Buying Stocks at the Bottom of the Market with 20 Billion!
"To make large appliances, relying solely on eight central warehouses may not be enough; we need to reform and comprehensively upgrade our warehousing and distribution."

Tang Zhi explained in detail: "Even JD.com faces this problem."

“Their central warehouses are even fewer than ours, and they are all leased.”

"But JD.com is building a logistics system for large appliances, using dedicated logistics lines to achieve point-to-point delivery, which makes the delivery time much faster and more punctual."

“But Vipshop doesn’t have logistics for large appliances. If we use regular logistics like other express delivery companies, all sorts of problems will arise.”

"Whether it's timeliness, packaging, or transportation, it's not as good as JD.com's self-built logistics for large appliances."

Wang Junshan nodded: "That's right, this is Vipshop's most fatal problem right now."

For small items, SF Express is fine.

But large appliances are a problem.

Also using SF Express?

The shipping cost would be several hundred dollars, which is simply unrealistic; the cost is too high.

Should we use Debon Logistics?
The logistics are accurate, with door-to-door delivery, and it's a bit cheaper than SF Express, but the cost is still very high.

Aside from expensive large appliances, ordinary household appliances are too expensive to afford.

Should I use the postal service, or one of the four major express delivery companies (STO, YTO, ZTO, or Yunda)?
They don't deliver to the villages at all, they don't deliver to the door, and there's a high chance of problems.

It's incredibly difficult.

Therefore, JD.com builds its own logistics network!
Tang Zhi continued:
"The only way to solve this problem is to invest more funds and build more regional warehouses across the country."

"Ideally, each province should have at least one central warehouse or regional warehouse."

"After a user places an order, the goods are shipped from a nearby central warehouse or regional warehouse, using logistics within the same province or even the same city, which reduces costs. The delivery time is also faster, which even JD.com cannot match."

"But this requires a considerable number of local warehouses. In addition to the current eight central warehouses, we also need to build more than twenty international warehouses or regional warehouses to fill the gaps in other provinces."

"This poses a huge challenge to our future technology, not only in terms of funding, but also in terms of time."

Wang Junshan nodded: "Your analysis is correct, this is indeed the biggest problem."

"The layout of ten international warehouses, ten central warehouses, and ten regional transit warehouses across the country is indeed the best solution."

"But all of this takes time and capital."

"Even so, it has to be done!"

"As a long-term strategy, we plan to build ten top-tier international warehouses, and we will readjust the locations in the cities based on the location and local policies."

"The existing eight central warehouses will be adjusted and retained as much as possible to become secondary central warehouses."

"This will give us 20 large warehouses, and we can lease ten regional warehouses in other untapped hub areas to achieve three-tiered coverage!"

"This will reduce our workload. We only need to build ten large international warehouses and lease ten regional warehouses."

"In this way, thirty large warehouses, with a three-tiered layout, can cover the whole country and achieve delivery within the province."

"The warehousing systems for major home appliances, Vipshop, U-Tuan International, and U-Tuan Group Buying can all be established."

Tang Zhi nodded: "That's the best way. Although the cost is high, it's the most beneficial for long-term development. Once we have three-tier coverage and thirty large warehouses, even JD.com won't be our match."

"However, establishing a logistics system for large home appliances is also urgent."

"We can continue to use SF Express for small packages; we don't need to worry about it."

"But large appliances are expensive, so building our own logistics network, like JD.com, is the best option."

Wang Junshan strongly agreed: "Building a complete self-operated logistics system is too costly and too difficult for us at present. However, since there are fewer orders for large appliances, building a logistics system for large appliances is still not a problem."

"In particular, it can be merged with YouTuan Group's logistics, jointly built, resources shared, and mutual assistance."

Tang Zhi's eyes lit up: "This is a good idea. It's feasible to build a logistics system for large appliances by relying on YouTuan Group's logistics system. This way, if one side is short of people, we can draw people from the other side and exchange resources."

"Yes, we can also launch big promotions during winter and summer vacations."

Wang Junshan had a plan.

With students on summer vacation, group-buying orders on YouTuan have decreased, and logistics capacity is idle.

Just in time to launch the 618 shopping festival!

With so many orders, we can allocate logistics from YouTuan Group to deliver them.

Winter break can also be used for the New Year's shopping festival and can make perfect use of YouTuan's group buying logistics.

During the back-to-school season, when YouTuan Group Buying faces logistics shortages, it can also draw on the logistics of Vipshop's large home appliances to support YouTuan Group Buying.

This exchange of goods and services is just perfect.

"However, all of this will take time, and it won't be completed until next year. It's a long-term solution that can't address the immediate needs."

Tang Zhi said with some helplessness: "The problem with large appliances is still difficult to solve. We can't set up 20 warehouses in a short period of time. Relying on the existing eight warehouses for cross-provincial logistics is too costly and the delivery time is too low."

Seeing Tang Zhi's troubled expression, Wang Junshan smiled and said, "This is easy to handle. Since our own warehousing and logistics for large appliances will take time to build, let's build a brand-coordinated warehouse first as a transition."

"Brand collaborative warehouse? What does that mean?"

Tang Zhi was stunned. He had been working in logistics for so many years and had never heard of this term before.

"Brand collaborative warehouses, as the name suggests, are warehouses owned by the brands. We can't build our own warehouses in a short time, but major brands have warehouses distributed in various locations, so we'll use the brands' warehouses as a temporary solution. We can even use their delivery services!"

"This..." Tang Zhi was dumbfounded: "Is this even possible?"

"Of course," Wang Junshan said with a smile.

"The current white goods giants are these few companies: Haier, Gree, Midea, and Hisense."

“They have many warehouses all over the country, and even distribution and logistics.”

"For example, Haier's RRS is a large-scale company that offers delivery and installation services at reasonable prices."

"It not only covers first- and second-tier cities, but also many third- and fourth-tier cities, and even delivers to villages."

"We can establish a strategic partnership with Haier, where orders for Haier's self-operated products will be fulfilled by Haier's nearby warehouses, with RRS Logistics handling delivery and installation. This will significantly improve logistics efficiency, potentially even achieving next-day delivery!"

Tang Zhi praised, "That's true. Shipping from the eight major warehouses and cross-provincial logistics would take at least five days, or even a week."

"But if we hand over the goods to Haier's warehouse nearby, we can deliver them within the same city, install them all, and deliver them the next day without any problems."

"That's right, similarly, Midea and Gree can also cooperate in this way."

Wang Junshan said, "Haier has warehouses all over the country, as do Midea and Gree."

"Haier has RRS Logistics, which integrates delivery and installation."

“Midea has AnDe Smart Connect, which also integrates delivery and installation.”

"Although Gree does not have its own logistics, it has a nationwide dealer network, which can distribute orders to nearby dealers, who will then deliver and install the goods!"

"Brilliant, brilliant!" Tang Zhi exclaimed excitedly, "Once this model is established, the warehousing and logistics of large appliances will no longer be a problem!"

"That's right, other home appliance brands are the same. They have warehouses all over the country. As for logistics, even if they don't have their own, they can entrust logistics and installation to Haier's RRS and Midea's Ande Smart Connect."

"The challenge lies in building the system and how to connect with Midea and Haier."

This pattern will be very common ten years from now.

JD.com has so many warehouses across the country, and ten years later it is still using this branded collaborative warehouse model.

Especially during major sales events, what if your own warehouse isn't enough and you can't keep up with the demand?
Directly activate the brand collaborative warehouse, transfer the order to the brand system warehouse for delivery, shipping, and installation.

And where does Xiaomi Mall have its own warehouses and logistics?
They all entrusted Haier's RRS for delivery and installation.

It's also impossible for Wang Junshan to build a nationwide logistics and installation network; the cost would be too high and the difficulty too great.

We can also cooperate with Haier and Midea.

"Develop a warehouse management system API as soon as possible to facilitate integration by brands such as Haier and Midea. This will allow us to distribute our orders to the warehouses of brands like Haier and Midea for delivery, and logistics companies like RRS and Ande Smart Logistics for distribution and installation."

"Okay, Chairman, I'll arrange it right away. Perfect timing, Gao Yang has already developed most of the warehousing and logistics system, so adding these modules will make it easy."

"With Gao Yang around, it's really not difficult."

Wang Junshan was quite reassured. Tang Zhi immediately began to act according to Wang Junshan's instructions.

First, we need to connect with Gao Yang to develop the API for the warehouse order system.

A series of arrangements were then made to build a warehousing system in thirty cities.

They also arranged for the marketing department to negotiate and coordinate with Haier and Midea...

Wang Junshan, however, fell into deep thought.

Since we're going to cooperate with Haier and Midea, and utilize their logistics and installation teams, we can certainly deepen our strategic partnership.

For example, taking advantage of the economic crisis, the stock prices of Haier and Midea have been halved or even reduced by 70%, making it a good time to buy some at the bottom.

Once you become a shareholder of both major brands, things will be much easier, whether it's launching on Vipshop or cooperating on logistics and installation.

Since the global financial crisis broke out on September 15, the stock prices of all companies have plummeted.

Those less affected saw their stock prices halved.

Those most affected were all discounted by 70%, and their stock prices plummeted by more than 70%!

Although the stock prices of some companies may not bottom out until December or even next year.

However, the stock prices of many companies are about to bottom out, and will rebound in about a week.

The key figure is four trillion!
Wang Junshan recalls that the four trillion yuan stimulus package was introduced just one week later.

Companies and industries closely related to the four trillion yuan stimulus package saw their stock prices soar, skyrocketing to new heights.

In other words, the first few days of November were the lowest point for these companies' stock prices.

Now is the best time for Wang Junshan to buy at the bottom.

Even if you sell it in a few months, you can still make a huge profit.

If you hold it for another two years, you'll easily make several times your initial investment.

As for which companies?

We need to see which companies benefit from the 4 trillion yuan stimulus package.

For example, to stimulate the economy, large-scale infrastructure projects will take off, and related industries will also take off.

The same applies to the white goods industry.

The reason is simple: the village launched a subsidy program for rural home appliances to stimulate the economy!
Gree, Midea, and Haier have all taken off.

Stock prices that have been halved by 70% due to the economic crisis will surge three to five times within two years.

A return of three to five times in two years is entirely possible.

Of course, some offer even higher returns.

For example, Tencent's stock, Apple's stock, and Kweichow Moutai's stock!
They can all increase three to five times, or even more, within two or three years.

It's definitely worth buying.

Wang Junshan looked at Shen Huaijin: "Notify the investment department to hold a meeting immediately."

"Yes!"

Ten minutes later, everyone from the investment department appeared in the conference room.

Wang Junshan smiled as he looked at the dismal stock prices of major companies.

"A Haier that costs 5 yuan."

"A Midea for 6 yuan."

"Gree cigarettes for 10 yuan."

"Prices are dirt cheap, they're all dirt cheap!"

"There's also Tencent at 35 yuan."

"80 yuan for a bottle of Moutai."

"They're all dirt cheap!"

"It's definitely worth buying."

"Future Technology currently has 20 billion yuan in its accounts, all of which will be handed over to you for management."

"Next, we will build positions in batches and buy the above stocks at the bottom."

"Buy Haier shares in batches below 6 yuan, with a maximum investment of 1 million yuan!"

"For Midea, buy in batches when the price is below 8 yuan, with a maximum investment of 1.5 million yuan."

"Gree shares below 12 yuan should be bought in batches, with a maximum investment of 1.5 million yuan."

"Tencent, below HK$38, buy in batches, up to HK$4 million."

These companies currently have a market capitalization of at least 90 billion to tens of billions.

Wang Junshan only bought 1 million yuan worth of goods, which is only 1%, less than 5%, so he didn't need to make a public disclosure.

"Moutai... 80 Hong Kong dollars, forget it."

Wang Junshan chose to give up.

Too much capital is tied up, and Moutai's growth rate will only be two or three times within three years, which is not very meaningful.

Other companies, whether it's Midea, Gree, or Tencent, have all seen a 4-5 fold increase in growth within three years.

"As for overseas stocks..."

As Wang Junshan watched the plummeting stock prices of major tech giants, he recalled his past life's development:
Apple stock is only $90, which is quite cheap. If you buy it now, based on the previous life's trajectory, you can expect a fourfold return within three years.

However, it is also possible that the growth rate will be impacted by future mobile phones, resulting in a less than ideal increase, dropping to three times.

This is no longer interesting.

Wang Junshan has limited funds, only 20 billion yuan, so he can only prioritize purchasing stocks with a return rate of 400%-700% within three years.

And Amazon, forget about it.

It's better to choose businesses that don't conflict with future technological developments, as these offer higher added value.

Conflicting business operations can easily create a butterfly effect.

Just like Apple, the iPhone had no rivals in its early days, so it naturally made great strides.

Even if Apple captures 30% of the market share when the future phones and future OS are launched in the next year or two, Apple's stock price will not reach the height of its previous life.

There's also Tencent, whose stock price surged seven or eight times in the past three years. Now, with the impact of future technologies, the growth rate is estimated to drop to four or five times, but it's still worth investing in.

Others can configure some infrastructure, which can increase the number of players by three to five times within a year.

Wang Junshan had a plan: "Sany Heavy Industry: 3 million!"

"Anhui Conch Cement: 3 million!"

"Xijiang Copper, below 10 yuan, buy in batches to bottom out, up to 3 million yuan."

"There are still 3 million left..."

Wang Junshan was lost in memories. He remembered a stock that increased in value tenfold within three years of the financial crisis!
It seems to be some kind of rare earth element...

Wang Junshan looked at the people in the investment department and asked, "Do you have any promising prospects in the rare earth industry?"

"Chairman, what's the situation with Baogang Rare Earth?"

Cui Qian, the head of the investment department, began by saying:

"Formerly known as the '8861' Rare Earth Experimental Plant, it mainly engages in rare earth ore beneficiation, smelting and separation, and the research and development and production of functional materials, possessing a complete industrial chain from raw materials to applications. It can be considered a leader in the rare earth industry!"

Correct!
Baotou Steel Rare Earth was later renamed Northern Rare Earth!
Wang Junshan opened the stock price of Baotou Steel Rare Earth: 5 yuan!

If I remember correctly, the price of Baotou Steel Rare Earth will reach 80 in less than three years!
Buy now at just 5-8 yuan, and you'll get a return of more than ten times!
(End of this chapter)