Chapter 135: A Three-Step Strategy for the Supermarket (A new week begins, please cast your recommendation votes!)
The "big project" Yang Tian proposed to Huang Biao was to open a supermarket. Of course, he did not mean a typical small shop, but a large-scale supermarket with significant operational scope.
A large-scale supermarket is a high-level retail establishment that meets the daily needs of general customers, primarily focusing on fresh food while offering a one-stop shopping experience for household essentials. By combining a diverse range of mid-range daily necessities, these markets constantly strive for competitive advantages in pricing. Simply put, a supermarket’s inventory must be comprehensive, the quality must be reliable, and the prices must be low. The slogans of giants like Walmart and Carrefour, "Everyday Low Prices," exemplify this.
In China, the first supermarket was established in the late 1980s, named "ParknShop." Subsequently, Shanghai Hualian emerged, marking the beginning of the supermarket industry's development in China. However, true large-scale supermarkets did not appear in China until the mid-1990s, a trend inseparable from the entry of European and American foreign retail enterprises, led by Carrefour, after 1995.
"Haha, a supermarket? I've seen them. When I went to Jinan, Shandong, last time, I saw one—it was no different from a grocery store!" Since Binhai City had not yet seen a true large-scale supermarket, Huang Biao’s understanding of the concept remained vague.
"Uncle Huang, a supermarket isn't as simple as you think," Yang Tian explained lightly. "First, our stock must be comprehensive and tailored to the tastes of the Binhai people—there is a lot of expertise just in that. We need to research large supermarkets in Beijing or Guangzhou to see what they sell, then conduct surveys with Binhai consumers to determine our final inventory. Next is sourcing: how do we find high-quality, low-cost goods at the turn of the century when consumer products are so abundant? Finally, there's retail management: how do we prevent popular items from going out of stock? How do we move slow-moving inventory? These are all specialized skills..."
"Wait a minute, Xiao Tian, let your uncle catch his breath!" Huang Biao interrupted, laughing. "What you say makes sense; these are all problems. We can't be negligent. So, tell me, if this project succeeds, how much can we earn in a year?"
"That depends on the scale you and my father can build," Yang Tian said. "A medium-sized one could easily earn hundreds of thousands a year. If it's a large-scale supermarket, at least one or two million!" Yang Tian gave a conservative estimate, though he knew well that it was impossible for Huang Biao and Yang Bao to build a truly massive supermarket. If they could manage a medium-sized one and become leaders in Binhai's retail industry, that would be quite an achievement.
"One or two million? My goodness! Wouldn't that mean a room full of money?" Huang Biao’s spirits lifted instantly, his recent depression vanishing.
"To earn one or two million, we need an initial investment of one or two million as well," Yang Tian said with a grin.
"What? One or two million? Your uncle just lost his entire savings. Where would I find that kind of money?" Yang Tian's words were a bucket of cold water. Huang Juan and Zhong Hehua, who had been secretly happy, were stunned as well.
Huang Biao was looking for a "get-rich-quick" scheme with zero cost, so this project did not seem to fit.
"Opening a large supermarket all at once is too difficult, but we can take three steps. First, build the brand. Establish the supermarket's name with high-quality, low-cost, and popular goods. Second, expand the product range and open a medium-sized supermarket. The third step is the creation of a multi-functional superstore!" Yang Tian’s goal was to build a large-scale supermarket. Naturally, he couldn't expect Huang Biao and Yang Bao to complete that alone. Their role was to lay the groundwork, such as building the brand and selecting the location and infrastructure. Yang Tian intended for them to run it for a few years, but ultimately, he would take over to expand it into a true top-tier market.
"Then how much investment is needed for the first step, and how much can it earn in a year?" Huang Biao asked with concern.
"About seventy or eighty thousand yuan," Yang Tian estimated roughly. "And it would earn about thirty or forty thousand a year." Because of the limited variety of goods, the turnover would not be very high.
"Thirty or forty thousand a year is not a small amount, but where am I going to get seventy or eighty thousand to invest?" Huang Biao began to worry again. He was practically penniless.
"As long as you are willing to step out of the shadows of your failure and fight again, I will provide the money to open the supermarket!" Yang Tian’s statement shocked everyone. Seventy or eighty thousand yuan was no small sum.
Huang Juan was happy that Yang Tian was willing to pay so much to cheer up her father. She knew he did it for her, and as a young girl, nothing could make her feel more satisfied.
"No, your Uncle Huang is a man of standing. How can I let a junior pay the bill? How would I be able to face anyone in the future?" Huang Biao was pleased, but he remained stubborn.
"Forget it! You can't face anyone as it is," Zhong Hehua interjected, chiding him. "It would have been one thing to lose money on the restaurant, but to stay in bed for over a week like a child? There's nothing more shameful than that!" Huang Biao looked ashamed.
"Uncle Huang, it’s settled then!" Yang Tian said, walking behind him to massage his shoulders. "I'll put up the money, I'll pick the location, and once it opens, you and my father just manage it!" Huang Biao laughed heartily, thinking to himself that despite living a muddled life, the wisest thing he ever did was securing this son-in-law early on.
"Wait, so your father doesn't have to go to Zhang Qiang's textile factory anymore?" Zhong Hehua asked, happy to see Huang Biao in such high spirits.
"The textile factory isn't doing well, and I see him looking miserable every day, so I want him to try something new with Uncle Huang!" Yang Tian explained. Zhang Qiang’s factory had initially grown quickly by exploiting the flaws and inefficiencies of state-owned textile mills. But since Lang Ping became the Municipal Party Secretary and started reforming state-owned enterprises, those mills had become more efficient, had clearer sales channels, and enjoyed government support—advantages private firms couldn't match.
"I'm at ease working with your father. He's honest and meticulous—I love working with him!" Huang Biao said, his enthusiasm overflowing. "I've dreamed of working with him again ever since we partnered to sell grain years ago. It’s a shame we never had the chance until now!"
Seeing Huang Biao so happy, Huang Juan and Zhong Hehua laughed as well. Yang Tian was pleased; harmony between the two families was exactly what he wanted to see.
With the plan in motion, Yang Tian began preparations immediately, knowing time was short with the college entrance exams approaching. He decided to open the shop next to the Hongyu Internet Cafe. Its location was excellent: at the intersection of Xuefu Street and Zhongshan Road, with Binhai No. 1 High School to the north and the city's most luxurious residential area, Yucai Garden, to the south.
Crucially, Yang Tian remembered that Binhai City’s primary development was moving eastward along Xuefu Street, making it one of the city's three main arteries. To the right of the Hongyu Internet Cafe was an abandoned cooperative building. Zhang Zhi had wanted to turn it into an internet cafe, but at 1,000 square meters, it was too large, and he lacked the capital and the desire to ask his family for help. Yang Tian decided to talk to him to see if he would be willing to let go of the space.
On the weekend, Yang Tian went to the Hongyu Internet Cafe. Business was booming, and as is often the case, the better the business, the more leisure time the operators had. When Yang Tian arrived, they were playing cards, smoking, and looking quite relaxed. He knew they weren't lazy; they had simply mastered the operations and could handle any emergency with ease.
"Brother Tian, so early?" Zhou Bing immediately rushed over, offering a cigarette and a beer.
"Not that early, it's past ten," Yang Tian laughed. "You guys have it easy, making big money just sleeping and playing cards!"
"Brother Tian, this empire is all yours," Ah Gui and the others chimed in, clearly excited to see him.
"Where's Ah Zhi?" Yang Tian asked, getting straight to the point.
"Upstairs, I'll go get him!" Zhou Bing shouted, rushing toward the second floor. "Brother Tian is looking for him, must be another big project! Haha!"
Yang Tian sighed. He had wanted to bring them along to help manage the supermarket, but if they left, the internet cafe would be empty. However, his main concern was whether Zhang Zhi would be willing to give up the space next door. He wasn't worried about the support—Zhang Zhi would definitely back him—but he knew that once he started the supermarket, he would have even less time to visit the internet cafe, and Zhang Zhi wouldn't like that.