Maximize Interest, My Money Grows Infinitely-Chapter 282 - 197: Let Camellias Bloom Throughout Beijing_2

Chapter 282: Chapter 197: Let Camellias Bloom Throughout Beijing_2

Chen Cheng said casually, "Firstly, my investment per store will not exceed 150,000. I am not going to do what HeyTea does, nor what Nai Xue does."

"So you mean..."

"The location of the store will not be in high-end malls, shopping centers, or CBDs." Chen Cheng continued:

"My idea is to set up shops in communities, schools, office buildings, and near subway stations where there is high foot traffic."

"The rents in these areas are relatively cheaper, and the foot traffic is guaranteed. More importantly, consumers in these areas are more price-sensitive, which aligns with our ’high quality, low price’ positioning."

Wen Shulin listened to Chen Cheng’s analysis and nodded in agreement.

Chen Cheng’s idea was very pragmatic and grounded, and it could also to a greater extent realize the vision of having a store every 10 minutes.

"What about the development of the meals?" Wen Shulin asked the crucial question, "Everything else is manageable, but how will you handle this?"

Chen Cheng leaned forward, "Isn’t that where you, Chairman Wen, come in?"

"Me?"

Wen Shulin immediately reacted, "As a rule, I do not disclose clients’ secrets."

What Chen Cheng needed and what she had mentioned was indeed "Nai Xue."

Chen Cheng smiled, "What about exceptions to the rule?"

"We can discuss it." Wen Shulin also started to smile, "After all, you are paying tribute to classic brands!"

"Hahaha..."

The two of them talked and laughed, when Xiao Meier came over and stood by Chen Cheng’s side.

"It seems like you two are having a good talk."

She naturally placed her hand on Chen Cheng’s shoulder, and Chen Cheng also wrapped his arm around Xiao Meier’s waist.

"Is it time to serve the food?" Xiao Meier asked again.

Chen Cheng shook his head, "No rush, please have a seat."

"What’s the mystery here?" Xiao Meier asked with a smile as she sat down.

Chen Cheng and Wen Shulin exchanged a glance, then Chen Cheng said, "Ms. Wen and I have discussed it a bit, and are planning to implement the idea we talked about last time."

"Last time? What matter?" Xiao Meier was confused.

Chen Cheng explained the plan to open a chain of dessert and tea shops, leaving Xiao Meier baffled.

When Chen Cheng finished explaining, Xiao Meier finally caught on. She widened her eyes in disbelief and asked:

"Do you mean, you want to turn my little shop into a chain brand like MIXUE Ice City?"

Chen Cheng smiled and nodded, "Even better than MIXUE Ice City, we want to be the 7-Eleven of the tea industry."

"Isn’t 7-Eleven a convenience store?" Xiao Meier countered.

Wen Shulin explained, "What Chen Cheng means is, he wants ’Beijing’s Sister Er’s’ stores to be as ubiquitous as 7-Eleven, covering every corner of Beijing."

Xiao Meier was dumbstruck, especially by the phrase "every corner," which left her feeling a bit overwhelmed.

"Can it be done?" she asked.

Chen Cheng replied, "We can start from Big Willow Tree."

"I plan to open 20 stores in the Big Willow Tree area first," he continued.

Xiao Meier’s eyes widened, "20 stores?"

She tugged at Chen Cheng’s arm and whispered, "How much money would that require?"

Chen Cheng smiled faintly and patted the back of her hand, "Three million in our plan."

Xiao Meier was aware that Chen Cheng had made quite a bit of money from Jin Baogen, but this seemed like a huge risk to her.

Wen Shulin understood the hesitation in Xiao Meier’s eyes. She took out her phone and opened a PPT.

"Xiao Er, take a look here first."

Xiao Meier leaned in, and Wen Shulin said, "Based on last year’s market research, MIXUE Ice City has the highest number of stores nationally, totaling twenty-eight thousand."

"They are the market leader and not our direct competitor."

"The following brands, Aunt Hu Shang, Gu Ming, ChaPanda, and others, their stores number between 6800-8000," Wen Shulin paused, "These are the products we aim to match."

"My personal recommendation is that our average transaction price be around 10-18 yuan."

Wen Shulin continued scrolling, "Let’s talk about Gu Ming, for example. In the first three quarters of last year, their revenue was 5.57 billion yuan, with a net profit of about 1 billion yuan, a gross margin of 31%, and a net profit margin of 18%."

Xiao Meier’s understanding was refreshed once again.

She had thought that making the amount of money in one month from Wanbao Hall that would have taken her 20 years to earn was the maximum.

She hadn’t expected there was an even more profitable venture.

"The first three quarters... that’s 9 months," Xiao Meier raised her head in surprise, looking at Chen Cheng and Wen Shulin, "Then, by that calculation, isn’t that 1 billion in net income per month?"

Wen Shulin smiled and nodded, "It’s about that."

Xiao Meier gasped, never having imagined that selling milk tea could be so profitable.

"And then look at this. You just mentioned MIXUE. Their revenue in the first three quarters was 15.3 billion yuan, with a net profit of 2.5 billion yuan, a gross margin of 29.7%, and a net profit margin of 15.9%."

Wen Shulin spoke slowly, "Generally speaking, Gu Ming’s net profit margin is 2.1% higher than MIXUE’s."

"Mr. Chen’s goal is to use a dense convenience store layout to compete with MIXUE for the remaining storefronts, and then earn money like Gu Ming, ChaPanda."

Wen Shulin looked at Chen Cheng, "Mr. Chen, is my understanding correct?"

Chen Cheng smiled and snapped his fingers, "Bingo!"

He turned to Xiao Meier, still in shock, and explained further, "Simply put, MIXUE Ice City takes the extreme cost-performance ratio route, thin profit but high turnover, so although they are the largest, their profit margin is relatively lower."

"However, brands like Gu Ming, ChaPanda, their product quality and prices are slightly higher than MIXUE Ice City, and their target customers are also different, so their profit margins are higher."

"My goal is to create a densely arranged tea brand, using scale advantages to reduce costs while ensuring product quality and taste, adopting a high-quality, low-price route."

Xiao Meier was still somewhat confused, but one thing she understood clearly was that this business could make money, and a lot of it.