Free Web NovelChapter 681: Chapter 246: Xiaoliu’s Transfer Plan
The expansion process of New Era’s business into Shenghai and Su Province was smoother than expected.
Due to the similar geography, culture, language, and customs of Jiangsu, Zhejiang, and Shanghai, these economically developed regions are closely connected, with local television and newspaper media often reporting each other’s news.
New Era already has more than 200 stores, and that number is steadily increasing. Such a large enterprise frequently appears in provincial media and occasionally makes appearances in Shenghai and Su Province’s media, becoming well-known to some of the public.
A brand that has already succeeded in Lin’an gains recognition and trust from consumers in Shenghai and Su Province more easily than enterprises from other provinces.
If you’re a brand headquartered in another province, it’s not as easy to break into the Shenghai or Su Province markets.
Even with rapid growth like New World and over 200 stores, it’s not enough.
In fact, as early as six months ago, there were already investors in Shenghai and Su Province interested in joining.
Businesspeople in these regions have keen instincts. If there were no profits, New Era wouldn’t be aggressively opening both direct and franchise stores. There must be substantial profits, and this kind of business model yields significant returns.
However, at that time, New Era was busy deepening its presence in the provincial market and hadn’t released any franchise plans to other provinces, so they refused these investors, informing them that the franchise plans for these two regions would open later.
Then, since Shiyi, the franchise plans were released, and many of those previously interested investors approached.
Simultaneously, New Era launched a media campaign in Shenghai and Su Province. The natural influence of New Era spreading from Zhejiang Province to these two other regions wasn’t enough; advertisements were needed to bolster their reach.
New Era’s loans officially surpassed a hundred million.
Expanding your business from one province to three definitely requires burning more cash, especially as the scale becomes more impressive.
Despite such a huge debt, Su Zelin remained unflustered.
Commercial debt can be divided into two types: one arises when operational problems and financial pressures force borrowing to overcome a crisis.
The other occurs when rapid development outpaces funding, leading to bank loans for further expansion.
New Era falls into the latter category, and banks are more willing to lend to such companies; their experience tells them that these businesses usually have reliable repayment capabilities.
Moreover, the provincial government also looks favorably on them, consistently supporting them publicly, and they’ve received numerous corporate awards from official media. High-level leaders have even hinted during meetings with local bank governors that if New Era requires funding, banks should preferably accommodate them.
So, as long as this company’s number of stores increases, the amount granted by the bank loans also increases, from the initial five million to thirty million, and now surpassing a hundred million.
There are many large enterprises with bank debts. Without some debt, it’s almost embarrassing to consider yourself a big company. For instance, what Mr. Wang owes is astronomical. Compared to others, New Era’s billion yuan is just a scratch.
Dingsheng Mansion, New Era Headquarters, Employee Leisure and Entertainment Zone.
The three giants were playing billiards again.
The staff at the adjacent billiards table wisely stepped aside, both not to obstruct the giants’ game, and because they knew the executives liked to discuss business while they played, overhearing which, they shouldn’t.
"Smack!"
Su Zelin made a move, and a colorful ball fell into the pocket with a corresponding sound.
He straightened up and casually asked, "Did you see the news about Golden’s launch of Wealth Treasure yesterday?"
"We saw it!"
Yang Fen and Kang Baohong nodded simultaneously.
They habitually kept updated with the news daily, no matter how busy they were.
"What do you think?"
Su Zelin asked again.
Golden had released the third-party payment tool, Alipay. It seemed like minor news, trivial to ordinary people.
However, those with keen business instincts could sense a lot more.
"Wealth Treasure could become Golden’s killer application. Payment convenience and reliability are major barriers to e-commerce and especially online shopping. The launch of Wealth Treasure might address these two major issues!"
Having been around Su Zelin and Brother Xiao Yang for a while, Kang Baohong, influenced by the two major figures, had secretly made substantial strides in vision and analytical capabilities, hitting the nail on the head.
"That’s right, but this new third-party payment tool still faces many issues!"
"For instance, will the National be willing to acknowledge its legal existence?"
"Moreover, how will financial security be solved? After all, Wealth Treasure is, after all, just a computer program!"
"As a program, naturally, it has loopholes and the potential for being hacked!"
"Take Q Coins, for example. The relevant officials from the People’s Bank previously stated that game currencies introduced by online merchants like Q Coins do not possess the traits of virtual currencies as specified by the National."
"In addition, specific QQ hacking trojans appeared online due to Q Coins, and the huge illegal gains attracted numerous criminals!"
"Tencent’s issue is also something Wealth Treasure needs to face and resolve!"
Yang Fen said in a deep voice.
Compared to Kang Baohong, he was always more inclined to detect problems and risks when examining an issue.
"You both made valid points!"
The veteran agreed with both of their views.
"Golden hopes to make e-commerce and online shopping more convenient and reliable, driving industry development. Simultaneously, Wealth Treasure has many issues that need addressing."
