Chapter 218: Vertical and Horizontal
As the founder, Qi Zheng's will is Jiagu's will. Look.Mao.Line.Chinese.Text.Net
Therefore, when Qi Zheng said that he couldn't swallow the breath of being squeezed by Carrefour, the contradiction between Jiagu Grain and Oil and Carrefour directly escalated.
After another failed negotiation, Jiagu Grain and Oil categorically announced that it would stop supplying Carrefour, because Carrefour's charges had reached the point of unbearable.
Carrefour took all the products of Jiagu Grain and Oil off the shelves-for-tat, including the "hot" product Xianming rice.
Carrefour's "Zhou Papi" essence of the industry is well known, but there are very few domestic enterprises like Jiagu Grain and Oil that dare to stand up and confront Carrefour.
It is also beneficial that Yihai Group, a competitor who has been paying attention to Jiagu grain and oil, secretly likes Jiagu to cut off its own arm, but strengthens its cooperation with Carrefour, intending to strengthen its leading position in China's grain and oil industry.
The outside world was disturbed, but the parties unanimously maintained an eerie silence.
Carrefour simply wanted to make a fortune in silence, hoping that this wave of denunciation would calm down immediately, while Jiagu Grain and Oil itself, after stabilizing its relatively good relations with Wal-Mart and other partners, was busy implementing the plan of "combining vertical and horizontal" proposed by Qi Zheng.
The so-called "vertical and horizontal" is to choose potential local supermarket enterprises, or close cooperation, or investment and equity to become strategic partners.
In fact, since "not entering the supermarket is waiting for death, and entering the supermarket is looking for death", why not build its own terminal and open its own directly-operated stores?
Regarding this road, it is not unthought about it within Jiagu.
However, after investigation and analysis, it was found that it was not easy to build a self-built terminal.
The consumption mode of modern people has changed, especially the white-collar class, who do not have much leisure time, and generally go to the supermarket to buy back daily necessities for a few days at a time, rather than going to a few places to buy, which requires a rich range of goods;
Rent is also an issue, and supermarkets sell so much because they occupy a good location. In these areas, the rent is high, coupled with the labor cost, the cost is really not small;
The most important thing is that the retail terminal is essentially a service industry, and Jiagu's main business is a productive industry after all, and cross-industry operation is not in line with Jiagu's plan to concentrate on development at this stage.
Therefore, reaching strategic cooperation with existing local supermarket forces is the most worry-free choice.
Qi Zheng gave Wang Yuye and Zhong Huazhi two lists - Da Runfa and Yonghui Supermarket.
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When they first entered China, the supermarkets and foreign companies who counted their money happily must not have imagined that the complexity of the Chinese market and the fierce competition far exceeded their imagination.
Wherever the giants expand, they will encounter sniping from national or regional local supermarkets – represented by the big leap in the country, and facing strong competitors such as Yonghui supermarkets in the local area.
The rise of the Great Leap is a legend.
In the early days of the business, the senior management of Da Runfa in Chinese mainland had no experience in the retail industry, and it was completely the business model of copycat giants. When they found out that Carrefour was the most popular, they immediately commanded Big Runfa to switch from the warehouse mode to the hypermarket mode.
When Carrefour was listed as a benchmark for the company, the bad days began, as the company discovered that its supply chain had a fatal shortcoming – the sheer number of Carrefour charges made suppliers feel terrified and terrified.
Unlike foreign-funded supermarkets that concentrate their firepower in first-tier cities, Da Runfa has silently laid out in the second- and third-tier markets, and has completed the transcendence of Carrefour by surrounding the city from the countryside.
In Qi Zheng's memory, within five years, the now inconspicuous big leap has replaced Carrefour as the champion of the retail department store industry in Chinese mainland.
Therefore, Da Runfa was selected by Qi Zheng as the first object of Jiagu grain and oil's "joint vertical".
Wang Yuye personally contacted the high-level officials of Da Yanfa in Chinese mainland to discuss the possibility of in-depth cooperation.
Big Leap also charges entry fees to suppliers, but unlike giants such as Carrefour, Big Leap sees suppliers as partners, rather than objects of wanton exploitation.
Jiagu's size does not have any advantage in front of Carrefour, but in front of the "green" Chinese mainland region, it is already a "small giant" level supplier.
Jiagu grain and oil bluntly contradicted Carrefour, and Da Runfa patted his chest and said that it is an industry practice to charge entrance fees, but as compatriots with thousands of years of wisdom inheritance, they despise Carrefour's short-sightedness of "killing chickens and taking eggs".
After many negotiations, Jiagu and Daya signed a common growth plan-style purchase and sales contract, and the two sides worked closely with Jiagu to include high-quality products such as Xianming rice, Jiagu rice, Jiagu edible oil, Jiagu dairy products, Qingyuan beer, etc., while Daylangfa was the most conspicuous position and the most active sales service......
The two sides even link up from consumer demand research, product design, raw material procurement, quality management, production control, logistics and distribution, distribution and promotion, etc., to jointly create high-quality and low-cost crazy goods to attract traffic, but ensure a certain gross profit margin to ensure that everyone has money to make.
After Wang Yuye came back, he said to Qi Zheng with admiration, "I really trust your judgment now, Da Runfa will surpass Carrefour in the future." ”
"Compared with Carrefour, a good cooperative relationship with suppliers is undoubtedly a king of the big leap hair, supplemented by their efficient store execution, Carrefour's position in the domestic market is replaced sooner or later!"
Qi Zheng's "co-vertical" object Da Yanfa did not disappoint Wang Yuye, so he was more interested in Yonghui Supermarket, the "Lianheng" object that Qi Zheng obviously paid more attention to.
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If Da Runfa is a direct hard car Carrefour, Wal-Mart and other giants, Yonghui Supermarket is to adopt a differentiated competition strategy of "well water does not interfere with river water".
Yonghui Supermarket is an enterprise in Min Province, and Jiagu Group can be said to be a "hometown".
Two years after the establishment of Yonghui Supermarket, the world's top 500 companies Metro and Wal-Mart entered Min Province one after another, and Yonghui Supermarket faced the moment of life and death.
In the face of the strong attack of foreign-funded supermarkets, Yonghui creatively abandoned the model of general supermarkets mainly engaged in clothing, daily necessities and household appliances, established supermarkets and chain stores featuring fresh food, and set the site in residential areas, secondary roads and urban-rural junctions, positioning and positioning housewives and office workers as the main customer groups, to avoid head-on conflict with giants
This new retail format of "fresh food supermarket" has opened up a new space for growth, and also laid the foundation for Yonghui's later achievements in the industry.
The lifeblood of retail is supply chain efficiency.
High efficiency can obtain lower prices and faster speed of goods on the shelves, which is the high point of competition for supermarkets that mainly sell fresh food and daily necessities.
The reason why local supermarket companies such as Da Runfa and Yonghui can catch up is that the supply chain is more efficient. Among them, Yonghui's fresh supply chain is so efficient that the fresh food it sells is cheaper than the bazaar, but it can still make money.
Yonghui Supermarket's unique "fresh food model" and control over the fresh supply chain naturally complement Jia Gu Group's business perfectly.
Due to the current strength of Yonghui Supermarket, Qi Zheng wants to invest in shares and incorporate Yonghui Supermarket into the Jiagu system.
However, Jiagu successfully reached a cooperation with the more powerful Da Runfa, but instead stumbled on the cooperation of Yonghui Supermarket - Zhong Huazhi, who had contacted the management of Yonghui Supermarket in advance, sent back news that someone wanted to cut off Hu ......