Chapter 644: Yes, This is Very American
Looking at Ji Longfen's lonely back as he left sadly, Yu Jiayi was very curious: "Boss Lu, what Boss Ji said just now was very good. Are you really not optimistic about APEX at all?"
Lu Yiming said: "If the Internet hadn't appeared, I might still be interested in APEX's operating model. Unfortunately, it can't keep up with the times. No matter how wonderful the ideas are, they will eventually be eliminated by the times."
Yu Jiayi didn't quite understand what he said, because she didn't understand the Internet either, but after following Lu Yiming and witnessing so many incredible miracles, she had complete faith in any decision Lu Yiming made.
She felt that there must be something wrong with the company that Lu Yiming was unwilling to invest in.
Lu Yiming continued, "Okay, don't think too much, just eat quickly, and if you can't finish it, pack it up and take it home."
Ji Longfan, who failed to raise funds from Lu Yiming, was soon embroiled in lawsuits and was even arrested on charges of fraud.
After all, the Rainbow Group that was cheated is not ordinary, and the amount involved is as high as more than 4 billion. It is easy to imagine what will happen to Ji Long fans who cannot pay.
Lu Yiming knew about this matter, but he only expressed regret.
Ji Long fans played the game too boldly, and did not adjust their strategy in time after completing the first step. They continued with risky methods and even expanded the scale blindly and optimistically, which led to today's disaster.
To be honest, this is a pity. Ji Longfen was penniless when he started his business. He adopted a radical strategy at this time in order to accumulate the first pot of gold as soon as possible. If he could make steady progress in the future, with his talent, it would not be difficult for him to establish a foreign trade company across the Pacific.
But it's too late to say that now.
Having offended Changhong, it would be difficult for him to regain his freedom.
Originally, this matter had nothing to do with Lu Yiming, but one day, he suddenly received an unexpected call.
"Uncle Shi?"
The person who called was actually Shi Caijiang!
Since becoming a housewife, Shi Cai has been leading a very leisurely life, drinking tea and playing cards every day, or traveling around, living a happy life. Now, the family is on vacation in America.
Shi Caijiang said with a smile: "Xiao Ming, I hope I didn't disturb you?"
Lu Yiming didn't know why Shi Caijiang called suddenly, and thought something happened to Shi Qingxue, so he quickly asked, "No, what's the matter?"
Shi Caijiang said: "No, Xiaoxue is fine. What I want to talk to you about is APEX."
"APEX?"
Hearing that Shi Qingxue was fine, Lu Yiming felt relieved. But when Shi Cai mentioned APEX, Lu Yiming felt a little confused again: "Didn't Ji Longfan get arrested? What else happened?"
Shi Caijiang said, "I asked around here, and I think the anti-dumping investigation against APEX might have something to do with you."
When Lu Yiming heard this, he immediately became depressed: "What does it have to do with me? It wasn't me who asked someone to do it."
Shi Caijiang said: "I know you didn't do it, but you probably know the person who did it."
After hearing this, Lu Yiming became really interested and asked, "Who is it?"
Shi Caijiang said: "The two main driving forces behind this incident are Bernie Hull, who just won the election for state legislator, and Epstein."
"them?"
Lu Yiming thought about it for a moment and immediately understood.
It is estimated that both of them were involved in the profit chain of television resale trade, so they took drastic measures to kill APEX, their "competitor" who was stealing their business.
Okay, that's very American.
Lu Yiming couldn't help but let out a long sigh and said with emotion: "Ji Longfen is quite courageous, but it's a pity that he is still too unfamiliar with the rules of the game in America, and his business model has a lot of problems."
Shi Caijiang was also deeply touched and said, "As far as I know, Ji Longfen is quite capable. APEX, under his leadership, is unwilling to spend money on advertising, but is willing to hire a large number of American locals to hold key positions in the company. These people are familiar with the American market and are crucial to opening up sales channels. Ji Longfen often pays them an annual salary of up to $300,000 or $400,000, plus sales commissions, so the sales team is very motivated."
Lu Yiming analyzed, "Indeed, but Ji Longfen's operation idea is problematic. According to his idea, he probably intends to learn from Wal-Mart's low-price route, first use price wars to expand market share and gain the right to speak, and then go public for financing."
For some reason, Lu Yiming thought of a certain Xixi who happened more than ten years later. It was the same routine.
The costs and risks are also borne by the seller, and the low-price route is also adopted. The company does not make money by selling goods, but instead intends to use the beautiful operating data to reap profits in the stock market.
It’s a pity that Xixi’s success depends on the popularity of mobile Internet and the smooth logistics system, but APEX obviously does not have these conditions.
Being half a step ahead is a genius, but being one step ahead can only be a match, burning yourself to warm others.
Ji Longfan is undoubtedly such a person. His ideas are correct, but the hardware conditions are not enough, so he burned himself to death in the money-burning stage.
After listening to Lu Yiming's analysis, Li Yiwen was shocked and blurted out: "Fuck, how can the business be done?"
In his opinion, business is simply buying and selling. He never imagined that there would be such a trick. It was a little unbelievable for a moment.
There is no doubt that his business thinking has failed to keep up with the times.
Therefore, Shi Caijiang's failure was actually inevitable.
Lu Yiming said: "Once the conditions are right, someone will inevitably use such tricks. This is human nature and it cannot be stopped. How much money can you make from selling products? Cutting leeks is the kingly way."
This is how Mou Xixi and Ruixing Coffee did it. Once the Internet and stock finance were combined, it seemed as if a chemical reaction occurred, and many incredible ways to make money emerged.
As long as the rules of the game don't change, this is bound to happen.
Color TV Export Association, regular meeting.
As soon as Lu Yiming walked into the conference room, he saw Li Dongsheng, Chen Weirong and Huang Hongsheng chatting happily, so he asked, "Hey, what are you talking about that makes you so happy?"
The three of them turned around and saw Lu Yiming and quickly greeted him.
"Morning, Mr. Lu."
"Boss Lu, you're here."
"We are talking about Rainbow Group. This time, Ni Runfeng probably won't get to eat any more mutton, and he's also in trouble. Haha."
Chen Weirong was well-informed and said excitedly, "Old Ni was dismissed once before because of problems such as hoarding cathode ray tubes and setbacks in the listing plan. He returned to work in February this year and became the group's president again. But only half a year has passed and the APEX incident happened. He will definitely lose his position. It depends on whether he will go to jail or not."
Lu Yiming had also heard about this matter.
In February 2001, Ni Runfeng returned to work as the president of Rainbow Group. He then vigorously promoted the cooperation between Rainbow Group and APEX, and introduced Rainbow color TVs into the American market. Rainbow was responsible for the production of color TVs and exported them from China to the United States. In the United States, they were sold under the name of APEX through large American chain supermarkets represented by Wal-Mart.
The sales proceeds are transferred to the intermediary agency's account through Walmart and then distributed between Rainbow Group and APEX.
If this model can be implemented well, there will be no problem.
The problem is that APEX's growth relies on burning money, but APEX itself has no money. The company has almost no important assets. It only has a warehouse in the eastern suburbs of Los Angeles, and all the color TVs and other goods in the warehouse are bought on credit.
So, whose money is APEX burning to grow and develop and give huge commissions to sales?
It can only be the payment to the supplier.
If suppliers can continue to supply goods and use subsequent sales proceeds to make up for previous deficits, then this money-burning model can continue. However, once it can no longer continue, APEX will collapse immediately.
Therefore, once the anti-dumping penalty came down, APEX was immediately in danger, simply because Ji Longfan and other APEX executives were walking on a tightrope and could not withstand any risks or setbacks.
At this point, Rainbow Group is doomed to not get back the payment for the goods. Fortunately, Rainbow Group is a large and powerful company. If it were an ordinary private enterprise, the 4 billion in working capital would become bad debts and it would probably go bankrupt on the spot.
Chen Weirong said enviously: "I heard that Rainbow Group has obtained a loan of 3 billion from the Agricultural Bank of China, successfully extending its life , and can be considered to have stabilized its position."
For ordinary people, banks are only icing on the cake, and it is good enough that they do not add insult to injury, but it is impossible to help in times of need. I don’t know how many companies were just a little bit away from recovery, but because of the bank’s blocking of funds, they were gone in an instant.
But Rainbow Group has a special status. Even though it has lost 4 billion yuan all of a sudden, the banks still have to send money to it to keep it alive.
Lu Yiming said: "There is no other way. We have to save it. Rainbow Group will definitely not go bankrupt. There are so many employees and families waiting to be fed. If it goes bankrupt, the consequences will be disastrous."
Huang Hongsheng talked about another piece of news: "I heard that Ni Runfeng proposed a new strategy to stabilize the other directors in the group. He plans to bet on the plasma screen technology route. He is currently negotiating with several island companies. If this is successful, he will probably be able to continue to struggle in the company. Otherwise, the loss of 4 billion will be enough to make him suffer."
When Li Dongsheng heard this, his eyes widened: "Damn, is this guy crazy?"
Lu Yiming was also speechless.
It seems that what is coming will eventually come.
Huang Hongsheng shrugged, spread his hands, and said, "Who knows? I guess they are planning to borrow momentum from the island country."
In terms of display technology, except for the island countries which still insist on the plasma route, other companies around the world are more optimistic about LCD.
After all, plasma is good in every way except that it is too expensive.
The performance indicators of LCD are not so good, but LCD is cheap and its functions are sufficient. As long as you have a normal brain, you will know how to choose.
Only people in island countries like to gamble on the fate of their country, always thinking of turning the tide by going all in.
Lu Yiming thought of plasma screens and hydrogen-powered cars. In the next few decades, the island country would play a good hand of cards badly and lose everything every time it bet. It could only be said that it would be doomed to fail if it didn't do it.
In the end, Rainbow Group suffered a series of misfortunes under the leadership of Ni Runfeng. It lost 4 billion in APEX and then stepped into the plasma pit.
While everyone was chatting, members of the Color TV Export Association arrived one after another. Some looked relieved, while others were dejected, as if they had lost their parents.
Without a doubt, those who feel lucky are those who hesitated whether to cooperate with APEX but did not make a move in the end. It is precisely because of this hesitation that they missed the time and witnessed the demise of APEX with their own eyes. Thinking that if they had been more decisive, they might have died with APEX, they feel extremely lucky.
And those dejected people are undoubtedly the guys who lost everything after cooperating with APEX.
Zhong Youxiang, chairman of Maomao Electronics Group, was one of them. He was the one who supported Ni Runfeng at the founding conference of the Color TV Export Association and clamored for Ni Runfeng to become the president.
Although he did not leave the Color TV Export Association with Ni Runfeng at the beginning, he found Ni Runfeng as soon as Ni Runfeng approached APEX for cooperation and asked Ni Runfeng for an introduction, and he also cooperated with APEX.
Although the loss is not as big as Rainbow Group, the size of the two companies cannot be compared, so now Maomao Electronics Group is also in a very bad situation. The company, which was already poorly managed, is now even worse.
Qin Pengzhe, the head of Venus TV, had an expression of wanting to cry but not being able to. Venus TV was originally small in size and claimed to insist on the high-quality route. As a result, it was beaten badly in the price war. It finally cleared some inventory and recovered some cash flow with the help of the TV Export Association, but it could not resist the temptation of APEX and cooperated with . Now that APEX is gone, Venus is on the verge of disappearing.
In fact, in the time and space before Lu Yiming was reborn, Venus Color TV went bankrupt in 2003, which was affected by this incident.
Zhong Youxiang and Qin Pengzhe, after seeing Lu Yiming, were like drowning people seeing the last straw. They both tacitly believed that only Lu Yiming could save them now.
The two of them didn't care about their face and ran over to greet Lu Yiming.
"Morning, President."
"President."
Lu Yiming looked back at the two of them, immediately smiled, and responded, "Good morning, both of you."
Seeing Lu Yiming's smile, the two felt even more uncomfortable. In their opinion, 80% of Lu Yiming's smile was a mockery of them.
But now the situation is extremely critical, and the two of them can't care so much. Zhong Youxiang said: "President, I spoke to you a little loudly before. I apologize to you here first. I hope you can forgive me."
Of course, everyone knew what he was talking about. It was nothing more than the founding of the association. Many people who had stood up for Lu Yiming at the beginning felt more refreshed than drinking a bowl of iced sour plum soup in the hot summer when they saw Zhong Youxiang being so humble.
Those who were feeling lucky, seeing Zhong Youxiang's miserable state, were naturally terrified. After all, if they had been a little more stubborn, they would have ended up like Zhong Youxiang and the others.
Lu Yiming smiled slightly and said, "In interpersonal communication, quarrels are inevitable. Everyone is just expressing their own opinions. It's nothing. I'm not such a petty person."
Qin Pengzhe gave a thumbs up and flattered him, "The president is really a man of great generosity. Hey, Mr. Lu, let me be frank. We have all cooperated with APEX, and now we have all fallen into the trap with Rainbow Group. Mr. Lu, you have connections everywhere, even in America. Can you help us smooth things over since we are both members of the Color TV Export Association? We just want to recover our losses."
Zhong Youxiang nodded his head rapidly and echoed, "President, we also know we were wrong and we regret it now."
Li Dongsheng said bluntly: "Now you know you regret it, but what were you doing in the first place?"
Chen Weirong also said: "That's right, you guys chose to cooperate with APEX in the first place, don't involve the association."
Facing the current situation of these companies, Lu Yiming had no sympathy at all, and immediately said bluntly: "When your car hits a tree, you know to turn, when the stock price rises, you know to buy, when you make a mistake and are sentenced, you know to repent, when the snot flows into your mouth, you remember to shake it off. I told you at the beginning that APEX is unreliable. If you had listened to me, this would not have happened today."
"this……"
Lu Yiming's words were quite direct, and several people were choked and speechless. But what Lu Yiming said was true. They were obsessed with greed, which led to the current situation. They deserved to be scolded.
Zhong Youxiang sat aside, wiping his tears and sobbing, "Boss Lu, it's too late to say this now. We've suffered heavy losses this time, and the factory is almost unable to make ends meet. Chairman, please be magnanimous and lend us a hand."
To be honest, those who run businesses in this era, especially private businesses, are basically all capable people, and they are able to make their businesses bigger and stronger, which can be said to have made huge contributions to the country's industrialization process.
Lu Yiming is the president of the Color TV Export Association, and Zhong Youxiang and others are currently members of the Color TV Export Association. Although he feels disgusted with the actions of these people, after all, he is the president elected by everyone. If he does not stand up at this time, it will definitely disappoint other members. When he wants to do something in the association, I am afraid that some people will disobey him.
Moreover, although these enterprises are now in decline, their ancestors were once wealthy and have the resources that Lu Yiming needs. For example, Maomao is the only electronic product company that the teacher has personally inspected, and it was born in the war years. And Venus is affiliated with Zhonghai Television Studio.
