Chapter 52: Longsheng Supermarket

Since the day they returned from dinner, the 351 dormitory had changed slightly compared to before.

Xu Chen had reduced his gaming time and often dragged Zhang Hao to hang out near the girls' dormitory.

At first, Li Dong didn't pay much attention, but when Meng Qiping told him that Xu Chen was pursuing Huang Shanshan, Li Dong realized what was happening.

Although Li Dong wasn't optimistic, he still wished Xu Chen well, hoping he would get what he wanted.

When they returned from the welcome party on the evening of the 30th, Xu Chen had become much quieter, and Li Dong noticed something was off.

Since he had just received a call from Qin Yuhan that night, Li Dong didn't attend the party.

However, from Meng Qiping's account later that night, Li Dong learned the reason.

It turned out that Huang Shanshan had performed a singing act at the party and had outshone everyone, even overshadowing White Su's piano performance, earning unanimous praise from everyone in the School of Management.

Huang Shanshan was already good-looking, and she was on par with White Su.

After she came off stage, many senior students swarmed to her. Huang Shanshan received so many roses that her hands were sore. Of course, White Su also received similar treatment.

This wasn't unusual; it was normal for beautiful girls to attract attention. Li Tie didn't have much of a reaction.

The key issue was that Huang Shanshan seemed to know a handsome sophomore senior, and not only did she accept his roses, but she also chatted and laughed with him while he escorted her back to the dorm.

This was a blow to Xu Chen, who had been secretly following them.

Li Dong shook his head slightly upon hearing this. It was inevitable—people's feelings are mutual, and there's no way to interfere. He couldn't play the role of a matchmaker.

Moreover, he didn't have the time to get involved with such matters now.

The next day, on October 1st, Li Dong boarded a bus back to Dongping early in the morning.

Yang Yun came to pick him up; Sun Tao was currently in Qingyang City for work, so he wasn't in Dongping.

Seeing Yang Yun reminded Li Dong of Qin Yuhan.

Qin Yuhan hadn't returned home for the National Day this year, originally hoping Li Dong would go to Beijing to see her.

However, Li Dong had a lot of things to handle, so he had to postpone his trip to Beijing.

Upon meeting Yang Yun, Li Dong went straight to the point, "How are the renovations going for the several branches in Nanning and Hechuan? Have there been any problems?"

Although they usually communicated over the phone, some things couldn't be clearly conveyed through calls.

"Everything is going smoothly. General Manager Sun plans to open all four branches in December. Currently, the progress in Qingyang may be lagging a bit, but General Manager Sun is urging them."

Yang Yun had been responsible for the financial aspects, but with Sun Tao often away, she had taken on almost all the responsibilities for Dongping. Thus, she was concise and clear when discussing these matters.

Li Dong nodded. The simultaneous opening of four branches was something he and Sun Tao had planned to create a big impact.

"How about Dongping?"

Li Dong asked casually, as Dongping had been developing well, so there shouldn't be any major problems.

However, Yang Yun hesitated for a moment. When Li Dong stopped and looked at her, Yang Yun said, "The situation isn't very good."

"What happened?"

Li Dong frowned. Dongping was crucial. Currently, not only did the Qingyang branches rely on Dongping for resources, but the Longhua branch also depended on Dongping's support.

If Dongping encountered problems and cash flow was tight, it would ruin Li Dong's plans in Pingchuan.

"A new supermarket has opened on Beidajie, which has affected the business at Yuanfang."

Li Dong fell into thought. It seemed history was repeating itself.

According to his memory, the first supermarket in Dongping was supposed to open this year around the National Day. Although he had beaten them to it, it hadn't changed the course of history.

But Li Dong quickly realized that today was the National Day. If the competitor had opened today, it wouldn't have impacted Yuanfang so quickly.

"When did that supermarket open? Is it Xingwang Supermarket?"

Yang Yun looked puzzled by Li Dong's reaction but answered, "It opened half a month ago. The supermarket isn't called Xingwang; it's Longsheng Supermarket."

"Half a month, Longsheng…"

Li Dong murmured to himself. The memory had changed.

It wasn't supposed to be like this; Xingwang Supermarket was gone, replaced by Longsheng.

Li Dong decided not to rush home and asked Yang Yun to take him to the newly opened supermarket.

---

At the same location, with the same sign, but the name of the supermarket had changed.

It wasn't just the name that had changed; the owner was also someone Li Dong had expected but hadn't anticipated.

Feng Bin, the father of Feng Jinsong, and a top tycoon in Dongping.

Feng Bin was wealthy and well-connected. It was normal for him to get involved in the supermarket business, knowing it was profitable.

Li Dong didn't enter Longsheng Supermarket but stood across the street, observing for a long time.

"He has less space than me, poorer decoration, and less foot traffic. Why does it still affect Yuanfang?"

Li Dong remained silent for a long time before suddenly asking.

Yang Yun hesitated for a moment and was about to speak when Li Dong added, "How much has Yuanfang's business decreased?"

"Nearly 30% in the past half month!" Yang Yun replied quickly.

"30%!"

Li Dong's voice grew louder. He suppressed his anger, thinking of Yang Yun as not just an employee but someone who needed a calm response. He asked, "How could the decrease be so significant?"

Longsheng's area was less than 500 square meters, less than one-fifth of Yuanfang's.

Moreover, Yuanfang had already established a market presence and reputation. It shouldn't have lost so much business.

"Longsheng is engaging in a price war. Their prices for the same products are 5% lower than ours."

Yang Yun's explanation relieved Li Dong somewhat. At least it wasn't for some other reason.

As for the price war, Li Dong wasn't too concerned.

Yuanfang's prices weren't particularly high, and the suppliers were direct from the main distributors, making them cheaper than those from other small supermarkets.

Longsheng, being smaller, could only source from secondary or tertiary distributors, leading to higher purchase costs and lower retail prices, which was a loss-making strategy.

If Yuanfang had a 15% profit margin, Longsheng might not even reach 5%.

However, Li Dong couldn't ignore this issue. Plus, since Longsheng was linked to Feng Jinsong, Li Dong had to pay attention.

He immediately asked, "How's the membership card system coming along?"

"It's almost ready. General Manager Sun personally went to Beijing to have it custom-made, so it's comparable to other large supermarkets."

"Good!"

Li Dong was satisfied with Sun Tao's efficiency. He had only recently mentioned the membership card system, and Sun Tao had already managed it so quickly.

Originally, Li Dong hadn't considered developing membership cards for Yuanfang since it only had one store. But with the expansion, the membership card system was necessary.

Not just simple membership cards but also shopping cards—these were real game-changers.

Li Dong remembered how popular shopping cards were when they first appeared!

Whether for gifts or favors, high-denomination shopping cards were indispensable, and companies often used them for employee benefits.

Li Dong had heard that a not-so-large supermarket in his city sold shopping cards worth a hundred times its annual sales!

Of course, Yuanfang wouldn't sell that much, as its monthly sales were close to ten million. A hundred times that would be one billion, which Dongping couldn't handle.

"Manager Yang, how quickly can the membership cards be launched?"

Yang Yun promptly answered, "The internal testing is almost done. If urgent, we can launch them tomorrow."

Li Dong was even more satisfied and said, "Then let's do it tomorrow. Use the National Day period to promote the membership cards."

"Also, for now, the shopping cards will only be available in 100, 500, and 1000 denominations. Start with a total of one million worth and test the market response. Additionally, prepare twenty thousand worth of shopping cards to distribute to various government departments for trial use."

Although Li Dong didn't like dealing with the bureaucracy, he understood the importance of social connections.

Yuanfang Supermarket's profitability couldn't be hidden. A little favor was fine if it could reduce trouble.

Yang Yun noted down Li Dong's instructions and then asked, "What about Longsheng?"

Li Dong was a bit exasperated. Yang Yun's vision was still not broad enough.

But since it was a question from his future mother-in-law, Li Dong patiently explained, "With the membership and shopping cards launched, our discounted prices won't differ much from Longsheng's. Given the choice, would you prefer to go to Longsheng or Yuanfang?"

"Yuanfang…"

Seeing Li Dong's gaze, Yang Yun said reluctantly. In reality, she didn't care much where she went.

Li Dong saw through her reluctance but chose not to elaborate further.

The introduction of membership cards wasn't just about discounts; it increased customer loyalty, a secret weapon of successful large supermarkets.

Even if Longsheng tried to implement membership cards, it would be unwise. Their profit margins were already slim, and adding membership cards would mean even greater losses.

Without the customer base bound by membership cards, Longsheng wouldn't last long if Yuanfang made a strong push.

Li Dong's goal was to crush Longsheng. Feng Jinsong was wealthy, but if Longsheng went under, even if it didn't shake Feng Bin's foundation, it would still result in significant losses. The initial investment for supermarkets was substantial.

Longsheng, although smaller than Yuanfang, likely had an initial investment of at least 500,000.

If Feng Bin chose to keep the store open despite losses, every additional day of operation would be an additional loss. Li Dong was confident he could drive Longsheng out of business.