"Elder Zhou, please don't worry, let me explain slowly. In fact, my suggestion for OuBei to build commodity storage bases on the newly developed industrial land has sufficient reasoning," Chen Feng said calmly.
"Chen Feng, we are not outsiders anymore, so I won't hide anything from you. I think that in Wenzhou, where every inch of land is gold, using such a large area to build commodity storage bases just doesn't seem cost-effective, no matter how you calculate it," Zhou Kun replied truthfully.
"Elder Zhou, if you calculate it purely on the surface, it indeed doesn't seem cost-effective. However, if you calculate it comprehensively, it is absolutely worthwhile and will definitely allow OuBei to soar again," Chen Feng explained with a serious expression.
"Continue."
"I've been touring OuBei for a week, and I've discovered that not only is the valve industry doing very well in OuBei, with nationwide recognition, but there's also an invisible industry that OuBei is also excelling at. Actually, it shouldn't strictly be called OuBei's invisible industry; it's a characteristic industry of Yongjia County, Wenzhou..." Chen Feng deliberately paused to see if Zhou Kun had any insight and could understand with a little prompting.
"Chen Feng, are you referring to the Yongjia supermarket industry?"
"Yes, that's right, the Yongjia supermarket industry. I've found that people from Yongjia, like people from Wenzhou, share a similar spirit of daring to venture out. Not only are they daring, but they are also very united. A family, where everyone confidently pools their money together to open supermarkets. This kind of scene is simply impossible in mainland China. Therefore, the business atmosphere in mainland China is very poor," Chen Feng lamented.
"Chen Feng, I'm pondering a question. The Yongjia supermarket industry is scattered across the country. What is the significance of building a commodity storage base in OuBei?" Zhou Kun asked with a confused expression.
"Elder Zhou, this question is also simple. China now is not what it used to be. You could make money by simply renting a shop somewhere and stocking some goods. That was in the past; it's not viable anymore. Now, everyone is using online shopping. This is also the reason for the gradual decline of the Yongjia supermarket industry. Fortunately, the people of Yongjia have seen this and are bravely transitioning. They are also vigorously developing e-commerce. Therefore, I believe the Wenzhou government should support this flexible spirit of the Yongjia people. The core of e-commerce lies in warehouses and logistics. Logistics are not a big problem, as there are many courier companies in China. The main issue is warehouses, which are still somewhat insufficient. Yongjia's e-commerce businesses primarily source and ship goods from outside, which invisibly increases costs. In this day and age, to do e-commerce well, in addition to product quality, service, and logistics, an important point is that the goods must be cheap. The primary reason why Chinese people have liked online shopping in recent years is its affordability. However, the current online shopping model of the Yongjia people does not offer a price advantage. That's why I'm thinking of establishing a commodity storage base on the newly developed industrial land in OuBei, a large-scale storage base, from which e-commerce goods for the southern part of Sanshi Province can be shipped. This way, without relying on other suppliers, product prices can be quickly lowered." Chen Feng explained patiently.
"Chen Feng, your idea is brilliant! However, there's a problem: building a commodity storage base that radiates throughout southern Sanshi Province will require a considerable amount of capital. How can such a massive investment be managed?" Zhou Kun asked earnestly. This was a question he couldn't solve himself; since Chen Feng had the idea, he must know how to resolve it.
"Elder Zhou, you are from Wenzhou. Financing issues shouldn't be a question for me; you should have plenty of experience," Chen Feng said with a smile.
"What do you mean?" Zhou Kun was taken aback for a moment.
"It's very simple. Wenzhou's financial financing has always been at the forefront in China. This time, although the OuBei commodity storage base project requires a huge sum of money, the problem is that Wenzhou has a strong capacity for private financing..." Chen Feng stated seriously.
"Alas, Chen Feng, you don't know the situation..." Zhou Kun sighed deeply.
"Elder Zhou, do you have any unspoken difficulties?" Chen Feng asked opportunely.
"Chen Feng, we are friends now, so I won't mince words with you. In recent years, Wenzhou's private financing has been devastated. Not to mention the huge funds required for the OuBei commodity storage base, even very small commercial investments cannot be resolved," Zhou Kun said, shaking his head.
"What exactly happened?" Chen Feng asked curiously.
"Alas, it's a long story. In recent years, Wenzhou's private financing methods were quite good. Because they were developing smoothly, they became arrogant. In the past, financing would consider the prospects of the project's development. In recent years, they stopped looking at that. As long as there was a financing project, a swarm of companies would provide guarantees. Individuals, the government, enterprises... raised money from all sides. No matter how large the capital demand, it could be settled within a few days. It was precisely because of this crazy and blind fundraising that the bitter consequences arrived. In recent years, several large investment projects have failed, resulting in complete losses. Additionally, some investment projects were mere pretexts for money laundering and had no actual project at all. Scammers absconded overseas with vast sums of money. One blow after another has left individuals, enterprises, and the government in Wenzhou in a state of utter chaos due to triangular debt. Many bosses committed suicide by jumping off buildings. Those who survived became defaulters. Because of this, Wenzhou's private financing and guarantee model, which was once the most advanced in China, has become a negative example for the entire country. Given this situation, how can the enormous funds required for the OuBei commodity storage base be raised..." Zhou Kun spoke with immense pain. The rapid decline in Wenzhou's development speed over the years was, to be honest, most agonizing for him, the top leader of Wenzhou. Once, Wenzhou's development model was a paragon for China. Simply because the financing model was devastated, Wenzhou's economy plummeted.
"Elder Zhou, to be honest, if you hadn't explained it like this, I really wouldn't have known what had happened. After hearing your explanation, I understand that the private financing channels in Wenzhou are now blocked." Chen Feng replied with a serious expression.
"Yes, that's exactly right. Chen Feng, my suggestion is, why not change the OuBei commodity storage base project from one year to five years? If the timeline is extended, the financial pressure will not be so great," Elder Zhou said tentatively.
"Elder Zhou, if it were any other project, extending it by five years wouldn't be a big problem. However, for an e-commerce project, extending it by five years is definitely not feasible. The golden period for e-commerce is only a few years. If we don't seize this opportunity, it will be meaningless to try and catch it later," Chen Feng explained with a serious demeanor.
"Chen Feng, I agree with your viewpoint. However, you are not aware of the current situation of private financing in Wenzhou. It won't improve in just one or two years. Frankly speaking, rebuilding private trust is very difficult. Destroying private trust is very easy," Elder Zhou said with a pained expression. In recent years, many attempts have been made to restore Wenzhou's private confidence, but all have been in vain. The people of Wenzhou are still deeply apprehensive about the capital collapse in Wenzhou in recent years.
"Elder Zhou, honestly, if the method is right, rebuilding the confidence of Wenzhou's private capital is not difficult." Chen Feng stated calmly and composedly.