Chapter 903: Differences in Business Philosophies

[Chapter 903: Differences in Business Philosophies]

William White really wanted to tell Steve Jobs that Cameron was just as hopelessly obsessive as he was. After sending off that group, William decided to take a break. Talking with Jobs was truly mentally exhausting.

He couldn't explain to Michael Eisner that Pixar wasn't his concern; if Old Steve Jobs took over Apple, then William White's interests would be maximized. In fact, he was slowly gathering funds already. After all, he had a bunch of trust companies overseas, and if the number wasn't too large, no one would really care.

"Sir, does the White Square in the Magic City need to be delayed or moved up?"

William was taken aback; usually, others avoided him. What was going on?

"Filson, is it a department store?"

"It mainly is a department store, over one hundred thousand square meters, it's indeed impressive." After saying that, he casually handed over a stack of photos.

Huitang? William chuckled; the East Bank of the Pujiang in '95 was not the same as 2015. You think a department store could make a commercial hub? How childish.

"Who did we rent our square to?"

"Gold Lion, they originally planned to open by the end of the year."

"Ha, I really have no idea why there's so much to worry about. Forget it, we're just the landlords. By the way, we can't skimp on the fire safety and other permits. It can be hazardous; we've got a company from Bunny Country behind it. The First Department Store, no joke."

"I got it, boss."

Only William knew how Huitang would end up. Let's put it this way: it was less a department store and more of a commercial entity. It was a beautiful bubble funded by the consortium.

They were very wealthy, so they often took checks and threw money around. That was the same for renting shops as it was for purchasing goods. Cash settlements meant you had to give me the lowest discount. Simple as that. If it was cheaper elsewhere, that would require compensation.

You could say, the cost of capital for companies in Bunny Country must have been the lowest in the world. The public had an incredibly strong desire to save; maintaining a high-interest rate was practically impossible. Thus, companies there appeared very aggressive. Other firms with shopping malls usually had a self-operating area, mainly focused on electronics and supermarkets.

As for the other spaces, the first floor, no need to say, was rented to gold shops and cosmetics. The slightly less favorable spots were for clothing or sports product counters.

"Ugh, aren't these folks just going for broke? No way, if they're buying, they buy; if not, they should get lost."

"Ahem, boss, there are a lot of factors involved. Game consoles, mobile phones, plus a Diadora specialty store."

"Are you kidding me? You're talking about a full buyout?"

"Yes, I calculated; other department stores usually take about 30% cut. Being a buyout means they need to sell clothes at a 60% discount."

"Ha, that sounds like a joke! By the way, what's the deal with Nike and Adidas?"

"Still negotiating."

"Damn, no wonder they're not developing in the U.S.; that's outright unfair competition. We won't accept that. If we did, the speed of capital recovery would actually be fast, but wouldn't it disadvantage customers shopping elsewhere?"

Since William White refused, Filson had no choice but to back off. In Filson's view, buyouts seemed good; they could shove more inventory through.

Since the boss didn't like rule-breakers, he let it go. It was either follow our guidance or part ways. If anything was a bubble, it was the department stores of this era.

Aside from Huitang, the Gold Lion Group was rapidly expanding. Ironically, a bunch of department stores in Southeast Asia also eyed Bunny Country.

"Filson, take a look. Gold Lion intends to open one hundred stores; Gold Light also plans for a hundred. Plus Pacific and Isetan--my goodness, I have high hopes for Bunny Country's economy, but I don't believe they need that many department stores. Did you notice? They're all high-end."

"It does seem overheated; unless personal income increases, it's impossible."

"Ha ha, which is why we are in a strong position now. Filson, the laws in Bunny Country are different from ours. If they can't pay timely, they might not even need to close down."

"Ahem, boss, are you certain?"

"Anyway, if they're not listed companies, they should be cautious."

"How about this? I'll go consult someone. If that's the case, choosing partners will need to be careful."

"Alright, checking things out is a good idea."

Filson needed to check, but William White didn't require any checks. For quite a while, Huitang's buyout operations indeed attracted a lot of retailers' support.

Due to various reasons, Bunny Country's debt issues were quite troublesome. It was like a constant cycle of debts among parties. It was baffling how there was no shortage of cash in circulation yet accounts were always in arrears.

Department stores and supermarkets didn't follow the credit system seen in the U.S. and Europe. When goods were delivered, payment was expected immediately. This was consistent across supermarkets and malls.

Failing to settle with suppliers quickly could lead to bankruptcy claims. How could one run a business without money? It seemed quite reckless. Or perhaps, it was a fraudulent act.

Filson, who left afterward, began to understand why the boss disliked department stores and hypermarkets. Too many players were doing that business. It was funny; while the barrier to entry wasn't low, why would they cluster together?

Filson certainly wouldn't understand that it had either begun in the Hong Kong market or Southeast Asia first. These large department stores and hypermarkets had grace periods for accounts. This meant you just had to arrange the upfront cash. Daily operating funds? You could borrow them from the suppliers.

This would be considered a fantasy in the U.S. What a joke! Not only could one face bankruptcy, but one might also be sued for unfair competition. If it were a massive giant like Walmart, it could be sued for monopoly.

Americans think simply: if I've delivered the goods, then the transaction is complete. If you fail to pay, it's a breach of contract. Simple as that.

Who's better or worse? That's not for him to comment on. Still, Bunny Country's suppliers were suffering. Not only did they have to endure accounts payable stretching across 45 to 60 days, but they also faced various promotional fees.

If your product wasn't selling well, by the end of the year, you might not only see minimal returns but might owe debts instead. No joke; one of the author's friends dealt in personal care products, and due to low brand recognition, within a year, he actually ended up owing supermarkets quite a bit.

Only in Bunny Country would this occur. Try it somewhere else, and it would guarantee bankruptcy. There was a certain illusion that smaller companies did better in the U.S. without so many people trying to trip them up, while larger companies had an easier time in Bunny Country unless their capital chain entirely collapsed; revival alternatives were absolutely possible.

Watching Leonardo DiCaprio and Kate Winslet across from him, William couldn't help but chuckle. The selection of these actors was quite fitting--not like the stereotypical rube and the wealthy beauty; they resembled more the young heartthrob and the middle-aged elegant lady.

Ahem. It's better not to rock the boat now. It felt like Leo was at a disadvantage somehow.

"You all carry on, don't mind me."

William took it upon himself to inspect; he was just checking if his investment was being wasted. As for the unused tableware, he planned to auction it off.

Ultimately, whatever revenue came from that, he could donate to the World Food Programme. Those poor folks didn't know how they had offended the heavens; it was either drought or locust plagues. If things kept going on like this, it wouldn't be long before there were hardly any survivors left.

*****

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