The rapid growth of the domestic retail service industry has a huge promotion effect on our country's industry and agriculture, making it easier to sell their goods and agricultural products, and the operating income of enterprises has naturally increased significantly.
It has also played a huge role in promoting the development of my country's retail enterprises. As the largest retail channel provider in the country, Shangtong Trading Company's retail channel operating income has also shown rapid development.
The total domestic retail scale of Shangtong Trading Company last year was about 5 trillion yuan. Based on an average net profit margin of 20%, it brought a net profit of nearly 1 trillion yuan to Shangtong Trading Company.
Of course, this net profit does not simply refer to the profit of goods, but only the overall profit, which includes rent, publicity services, etc. After all, these assets are basically owned by Shangtong Trading Company. If they are calculated together, the problem can be explained more clearly. .
In fact, the reason why there is such a high net profit margin is mainly because Shangtong Trading Company provides a full set of commodity retail services, which is generally very cost-effective for merchants.
Because Shangtong Trading Company provides goods from the factory to transportation, warehousing, publicity, sales, after-sales, etc., the cooperative manufacturers have very few things to worry about.
If you just sell goods, you will definitely not have such a high net profit, and even the costs consumed in other links will be much higher than at the retail end, especially for goods that are very time-sensitive.
Last year, my country's retail service market size was approximately 8 trillion yuan. Based on this net profit margin, Shangtong Trading Company's net profit was 1.6 trillion yuan.
In fact, there are definitely not so many, because other retail channels also occupy about 10% of the market share, and the retail channels under Shangtong Trading Company account for about 90%.
However, even if it cannot occupy 100% of the share in retail channels, Shangtong Trading Company has a very high share in circulation services such as commodity transportation and warehousing.
Many retail channel operators who are not their own will also choose their logistics and warehousing services because they are the best in this area and have difficulty competing with them.
In addition, there is a huge demand for logistics and warehousing services. Comparing the two items, although it does not reach 100%, it still has at least 95% of the market share.
This is still the domestic retail channel business of Shangtong Trading Company. The scale of the retail channels they have abroad is no less than that of the mainland, or even higher than that of the mainland.
After a period of fierce competition, the retail channels in Southeast Asian countries are basically in their hands. They also adopt a direct operation model and have greater control.
Except for countries in Southeast Asia and other countries, retail channels in other regions are mainly based on shareholding, supplemented by direct operations. The proportion varies depending on the region, but the absolute influence is still very high.
In developed countries such as Europe, the United States and Japan, their penetration rate of retail channels has been increasing, and now it has reached a level of more than 40% overall, and some countries have even reached a level of 60%.
Although these are shareholding operations and will not directly affect the company's business strategy under normal circumstances, in daily cooperation, it is very smooth.
In fact, when their penetration rate reaches more than 50%, they will have the ability to directly affect the retail industry in these countries. However, they usually do not do this and only hope to make money safely.
It is precisely because of such broad domestic and foreign sales channels that Shangtong Trading Company has become the largest import and export trader in my country, and even the largest import and export trader in many other countries.
Therefore, the global income of Shangtong Trading Company is very considerable every year, causing their own assets to hit new highs every year. The scale of domestic assets alone has exceeded 8 trillion yuan.
This is because Zhao Yi has basically not extracted profits from Shangtong Trading Company for so many years. Most of the profits are digested internally, resulting in the continuous increase of their asset size.
Today's Shangtong Trading Company is not only a company specializing in retail channel operations, but also involves daily necessities manufacturing, various service industries, etc.
The business scope is very broad, but retail-related businesses still account for their main business share. Therefore, the company's positioning is still focused on retail channel operations, supplemented by other business operations.
However, as my country's service industry and manufacturing industry develop more and more, the proportion of business in this area may become higher and higher in the future, and their business structure may undergo significant changes.
At present, domestic consumers mainly consume goods. This consumption concept may change greatly in the future, and the proportion of material goods consumption in daily consumption will decrease to a large extent.
On the contrary, the proportion of consumption in the service industry will increase significantly. This is why Zhao Yi wants Shangtong Trading Company to increase the development of the service industry, improve the layout of the service industry as soon as possible, and wait for the future explosion of service industry consumption.
In the overseas direct business, excluding e-commerce business, Shangtong Trading Company's operating profit has also reached 4 trillion yuan, which has been greatly improved compared to before.
The largest source of profits is earned from distributing high-end products of brother companies, such as Shenlong Automobile Company's high-end cars. This business alone has brought them hundreds of billions of operating income.
Of course, these cooperations are complementary to each other. Shangtong Trading Company has established a complete global sales channel and 4S sales strategy for Shenlong Automobile Company, which is also one of the main reasons for Shenlong Automobile Company's rapid global development.
In fact, many companies wanted to hand over their car sales to Shangtong Trading Company, but Shangtong Trading Company did not agree at the time, mainly because their request was a bit difficult for Shangtong Trading Company to agree to.
Because the development of the domestic economy in the past few years is obvious to all, many automobile companies are now eyeing the market that they previously looked down upon, hoping to allow their automobile brands to enter the mainland market.
But at that time, the scale of the domestic automobile market was not particularly large, and Shenlong Automobile Company was also interested in layout at that time, but it had not yet been completed.
At this juncture, if Shangtong Trading Company agrees, wouldn't it lead a wolf into the house? Although Shenlong Automobile Company is not afraid of these automobile companies, it will also bring them a lot of trouble.
Domestic consumers are not particularly rational at present and have little understanding of the outside world. They may feel that DPCA's products are not as good as foreign products. This situation is not impossible. "Foreign monks like to chant sutras."
Therefore, although Shangtong Trading Company is greedy for these profits, it still refuses. At least it will not carry out work in this area until Shenlong Automobile Company's domestic business layout is perfected.
As for permanently denying other automobile companies entry into the mainland market, it is impossible. After all, others allow you to enter their market. According to the principle of reciprocity, we should also deny others entry into our market.
However, our country is a developing country. In the General Agreement on Tariffs and Trade, it has great preferences and can formulate tariffs and other measures relatively freely to protect related domestic industries.
In fact, even if this is the case, it cannot prevent other automobile companies from entering the mainland market. However, although they are coveting the mainland market, they dare not act rashly.
The reason why we want to find Shangtong Trading Company to achieve this goal is that Shangtong Trading Company has a very large influence on Shenlong Automobile Company and believes that it can influence the business strategy of Shenlong Automobile Company to a certain extent.
The reason is simple. They are afraid. If they enter the domestic market and compete with Shenlong Automobile Company for the market, there is no guarantee that Shenlong Automobile Company will not compete with their traditional business in overseas markets.
They have currently reached a certain tacit understanding with Shenlong Automobile Company, that is, Shenlong Automobile Company concentrates on operating in the mid-to-high-end automobile field, while they operate in the mid-to-low-end field, and the two do not interfere with each other.
Shenlong Automobile Company did not seize their business areas because it was afraid of causing a strong backlash from foreign automobile companies, causing the government to formulate relevant tough policies and causing them a lot of trouble.
The reason why other automobile companies acquiesce in Shenlong Automobile Company's occupation of the mid-to-high-end automobile market is mainly because they are not as skilled as others and cannot compete. Instead, they are afraid that the other party will take a fancy to the mid-to-low-end market and lead to their own defeat.
Therefore, under normal circumstances, they will not challenge Shenlong Automobile Company easily, especially in the mainland market. They have also launched high-end brands and even luxury brands in overseas markets, but they cannot compete with Shenlong Automobile Company.
The reason for this is because the overseas market is their market. It is normal for them to want to compete in the high-end field. Shenlong Automobile Company has no excuse to attack them.
But the domestic market is different. Although there is no explicit prohibition clause, they are afraid that it will really anger Shenlong Automobile Company and lead to a full-scale competition between them. They have no confidence in winning this competition.
That's why they hope to sell their products to the mainland through the channels of Shangtong Trading Company. In this way, even if Shenlong Automobile Company has a bad temper, the first to be unlucky will be the car sales company under Shangtong Trading Company.
Moreover, Shangtong Trading Company's automobile sales company controls Shenlong Automobile Company's global sales channels. If there is a conflict between the two, it will give them many opportunities to take advantage of.
However, Shangtong Trading Company did not agree to their request, so the plan naturally failed. However, Shangtong Trading Company stated that it could represent their products in other markets.
Although their demands did not succeed, for future considerations, many car manufacturers still agreed to the car sales companies of Shangtong Trading Company to sell their car products as agents.
Therefore, the car sales company of Shangtong Trading Company no longer only operates the Shenlong Automobile Company brand. Almost all well-known car companies in the world have relevant cooperation with them.
Although in terms of profit margin, it is not comparable to the Shenlong Automobile Company's brand, the global sales volume of mid- to low-end cars is much higher than that of mid-to-high-end cars, and the overall profit is still considerable.
Now Shenlong Motors is vigorously promoting electric vehicles in China. Last year's domestic sales volume confirmed the previous forecast report of Shangtong Trading Company. The total sales volume reached 25 million units, which was much higher than predicted.
Although the sales are mainly low-end cars, the sales of mid-range cars with more than 50,000 yuan are not a minority, accounting for 20%, which means that 5 million units have been sold domestically.
As for high-end brands with prices above 200,000 yuan, although there are many, the number is nothing compared to the total amount. Although most of the domestic wealth is controlled by his companies, some people who have become wealthy, We still have the ability to consume high-end brands.
As for the top-of-the-line executive car, no one except the presidents of his companies buys it. It is too expensive, so expensive that even ordinary business operators and wealthy people cannot afford it, or are reluctant to part with it. money to buy.
If you spend tens of millions of dollars to buy a car, it is better to invest the money in business expansion or other investments. The benefits will be much more cost-effective than buying a car.
Therefore, generally only the heads of global giants and top wealthy individuals will choose to buy their premium premium cars. Others may only want to take a look and listen to them.
Therefore, in this era, those who own a Shenlong Automobile Company's president car are definitely local celebrities and super rich, and its price proves their identity.
After so many years of sales, the position of the DPCA's President model in the top-class automobile field has been very stable, and it has no challengers so far.
However, Shenlong Automobile Company is not satisfied with this. It plans to launch a higher-end top-end car this year or next year, with higher quality and price than the President model.
This is because their team that develops top-notch cars for Zhao alone has accumulated a lot of new technologies over the years. It would be very wasteful to simply serve Zhao alone.
So they plan to use these technologies. Although they are lower than those used by Zhao Yijia, they are all black technologies in the market. It is not impossible to create a new higher-end brand.
As the domestic car ownership continues to increase, domestic car tariffs may be reduced in two years. The layout of Shenlong Automobile Company has been completed, and other car brands will then be allowed to compete.
In fact, if you do this, the impact on your opponent Shenlong Automobile Company will be very small. The reason is very simple, because at that time, fuel vehicles may not be sold at all in China.
On the one hand, this is because China has been promoting the concept of green environmental protection, especially the Fluolight Environmental Management Company, which has silently made outstanding contributions to this goal for so many years. With the benchmark set, domestic people have also followed suit.
Compared with electric vehicles, fuel vehicles are definitely not that environmentally friendly, and Shenlong Automobile Company has always been able to trade in old vehicles for new ones, and let Yaoguang Environmental Management Company carry out environmental protection treatment for the recycled old vehicles.
It’s just that the domestic car ownership was not high before, so this measure was not well publicized, but it will definitely play a very important role in the future and can achieve truly harmless treatment.
The second aspect is that the quality of Shenlong Motors' electric vehicles is no worse than the fuel vehicles of other automobile companies. Among the same grades, they are all of the best quality and have the highest technical content.
Having experienced the car quality and driving experience of Shenlong Automobile Company, many consumers may not be used to driving other people's fuel cars, resulting in a reduction in the number of purchases.
The third aspect is that after my country's electric energy replacement work is completed, the number of gas stations will be greatly reduced and replaced by charging piles and charging stations, which is very detrimental to the promotion of fuel vehicles.
When Shenlong Automobile Co., Ltd. was laying out electric vehicles, it had already deliberately established patent barriers. No matter it was a patent or technology that it did not use for the time being, Shenlong Automobile Company would conduct research and development.
Anyway, apart from part of the high profits created by Shenlong Automobile Company every year, they also have a lot of funds left for them to research and expand production and operations, and their research funds are very sufficient.
Doing this will make it very difficult for other automobile companies to enter the field of electric vehicles. They will encounter DPCA's patents everywhere, making it difficult to move forward.
If you want to bypass patents, you will need to spend more research funds, which will lead to high costs for automobiles. Even if they are developed and produced, they will face a lack of competitiveness.
Four aspects: my country has been developing autonomous driving technology for a long time, and its technical reserves in this area are very rich. In fact, the gap with other automakers is not just a few years, but more than ten years.
Not to mention mid-to-high-end cars, even the low-end cars sold by Shenlong Motors in China will use lower-level autonomous driving technology, which is very helpful to improve the driving experience of drivers.
With so many measures, it is quite difficult for foreign car brands to enter and thrive. When tariffs are lowered, they will not be able to make waves in the country.
The automobile sales company of Shangtong Trading Company is itself the pioneer of global 4S services. In addition, it previously only operated mid-to-high-end automobile brands of Shenlong Automobile Company, and has achieved a very good reputation.
Therefore, they are now agents of brands from other car companies, and they are also selective. All of them will go through their own testing. Only when all data meets the standards will they be agents. They strive to provide users with products that have been strictly tested.
This is not only to maintain the reputation of their own sales companies, but also for the sake of consumers' lives and health, and to increase their global sales market share, which is of great benefit.
In fact, there are basically no problems with the car brands sold through them. Although after-sales service revenue is significantly reduced by doing so, it does not have much impact on them.
Because Shangtong Trading Company and car manufacturers sign all-inclusive contracts, that is to say, they are not only responsible for selling cars, but also provide various after-sales services to consumers, without the manufacturer having to bear them.
Although doing this seems very risky, it is not risky for the car sales company of Shangtong Trading Company, because basically all the cars that pass their inspection have no major problems, and the cost of after-sales service is actually Very low.
And the advantage of doing this is that it can widen the gap between them and other car sales companies, thereby forming a competitive advantage and further increasing their sales market share.
Because it is more difficult for other sales companies to establish complete vehicle testing standards, complete maintenance and after-sales processing systems, etc. They actually relied more on manufacturers before.
To build these things, we need to have huge capital advantages, be able to take greater risks, invest more in ancillary services, and at the same time have technological advantages to be able to do things that even car manufacturers can't do.
In terms of automobile inspection and after-sales maintenance, the automobile sales company of Shangtong Trading Company is better than the original manufacturer, and it has become the core competitiveness of their 4S sales system.
There are many technical supports provided by brother companies, such as automobile inspection simulation systems, rapid inspection tools and systems, etc., which are not available outside.
At the same time, they have always regarded customer service as their core competitiveness over the years, and have cultivated a highly skilled team with obvious talent advantages.
Therefore, the proportion of revenue they charge is relatively high. It is charged at 20%, which is much higher than ordinary sales channels. However, many manufacturers actually agreed to their plan.
Although their commissions are much higher, by handing over the products to them, manufacturers have very few things to worry about. In fact, they can significantly reduce the manufacturer's other costs.
Moreover, the risks they bear are much greater. If a car brand really needs to be recalled on a large scale, the losses will also be borne by them, and the car mall does not need to bear this loss.
Because of this, they conduct strict testing on the brands and models they represent, and even production batches, which are much more detailed and accurate than the manufacturer's own testing.
Many manufacturers excitedly brought their own brands over, but after inspection by the car sales company of Shangtong Trading Company, many problems appeared, and many hidden problems were discovered.
Some car manufacturers are even willing to pay a test fee and let them give them a copy of their test report, because under normal circumstances, they will not provide the test report directly, but just summarize it as a test reply.
It is precisely because they have strict testing procedures that the quality of the cars they sell is guaranteed, they have gained the trust of consumers, and their services are well-known in the industry.
So they actually have a large number of loyal customers. When they represent more car brands and models, their popularity is rapidly increasing around the world.
The current result is that many consumers only ask which sales company the car was purchased from, but the frequency of inquiries about the car brand is getting less and less.
Because there have been several cases where the same model of the same brand has a big gap between different batches. Some batches have no problems at all, while some batches have serious quality problems.
Just recognizing the brand and model does not guarantee that they can buy a very good quality car. Instead, they trust the car sales company of Shangtong Trading Company.
Therefore, in the current car sales field, there are only Shangtong Trading Company's car sales company and other car sales companies. The former can guarantee quality, while the latter can only rely on fate.
Nowadays, in global automobile sales, the number of cars sold through Shangtong Trading Company's automobile sales companies is also increasing, causing automobile manufacturers to become increasingly dependent on them. (End of chapter)