Chapter 87: Ideas for Entering the Home Appliance Industry
Chapter 87: Ideas for Entering the Home Appliance Industry
Early the next morning, after dropping Xu Qingyao off at the examination center, Li Yi headed to his store.
He couldn't help her with the college entrance exams—she had to rely on herself.
Meanwhile, his clothing business was running smoothly, and Li Yi decided it was time to embark on a new journey.
His next goal was the home appliance industry, and his first choice was refrigerators.
After all, refrigerators were quickly becoming a household necessity. More importantly, they were expensive, with huge profit margins.
Simply put, this was a rare and lucrative opportunity!
Upon arriving at the store, Li Yi personally conducted a brief training session for a dozen newly recruited employees. Then, he locked himself in his office to draft a business plan.
Doing business isn't child's play.
He couldn't just rush into an industry on impulse. Everything needed a well-thought-out strategy, ensuring smooth execution.
For the next three days, Li Yi followed the same routine—
Dropping Xu Qingyao off for her exams in the morning,
Spending the day planning in his store,
Picking her up in the afternoon.
He was extremely busy until Wei Sanpao returned from the Guangshen region.
That evening, after closing the store, Li Yi asked Wei Sanpao to stay behind.
Since he planned to enter the home appliance industry, he wanted to hear Wei Sanpao's thoughts on the matter.
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A New Business Proposal
"Third Brother, you did a great job sourcing goods from the south," Li Yi said. "The 500,000 yuan worth of inventory was flawless—well done!"
"This is all thanks to you, Brother Yi!"
"When did you learn to flatter me?" Li Yi chuckled.
Then, he took out a ledger, handed it to Wei Sanpao, and said, "Lao San, these are our store accounts for this period. We've had total sales of 710,000 yuan, with a net profit of 248,500 yuan. Based on your share, you'll get around 13,700 yuan!"
"That much?!"
Wei Sanpao was stunned. Earning 13,000+ yuan in just half a month? It felt like robbing a bank!
Li Yi smiled and explained, "It sounds like a lot, but keep in mind that our stores still have over 700,000 yuan worth of unsold inventory. So overall, we're still technically in a loss. Plus, we still owe Donghua Clothing 320,000 yuan, which must be paid within three months."
"But don't worry. As we increase sales, our inventory will convert into cash flow, and our profits will stabilize!"
"I trust you, Brother Yi!"
Then, Li Yi suddenly shifted the conversation.
"Lao San, even though our clothing business is doing well, we're still far from my ultimate goal," he said. "So, I'm planning to enter the home appliance industry. What do you think?"
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Doubts and Conviction
The home appliance industry?!
Wei Sanpao was stunned.
Why would he suddenly change directions?
They had just opened two successful clothing stores. Business was booming. Why venture into home appliances now?
"Brother Yi... I don't understand. Aren't the clothing stores doing great?"
Li Yi immediately explained, "The clothing business is good, and it makes money, but it's too slow!"
Too slow?!
Wei Sanpao was even more shocked.
They had made over 200,000 yuan in half a month—that was insane!
He thought about the meat factory he used to work at. Even with 500–600 employees, they barely made a fraction of this amount—some even lost money.
And yet, Li Yi still thought this was too slow?!
He wanted to ask, "Brother Yi, what exactly do you consider fast?"
Seeing his reaction, Li Yi chuckled and elaborated,
"The clothing business has limitations. Clothing isn't a necessity for everyone. If we want to increase revenue, we'd have to keep opening new stores—but that would require constant reinvestment, delaying real profits."
"It could take at least a year before we actually pocket significant money!"
"A year isn't long," Wei Sanpao said hesitantly.
"It's not long," Li Yi agreed, "but I can't afford to wait. I have bigger plans, so I need to make money fast. That's why I'm shifting to home appliances. Are you in?"
Wei Sanpao hesitated.
The current profits from the clothing stores were already beyond his expectations.
Back at the meat factory, he never imagined earning hundreds of yuan per day. It was unrealistic.
But now, he was making it happen—13,000 yuan in just two weeks. That was 27,000 yuan per month—over 300,000 yuan per year!
Yet, Li Yi suddenly wanted to switch industries. Any normal person would hesitate.
Li Yi understood his concerns.
He wasn't forcing him—he simply wanted to gauge his willingness.
If Wei Sanpao was on board, they'd make money together. If not, he could continue managing the clothing stores.
After a moment of silence, Wei Sanpao gritted his teeth and nodded.
"Brother Yi, if you want to do it, I'll follow you!" he declared. "We had nothing before—we can start over again if we fail!"
Li Yi smiled. "No need to be so pessimistic. I have an 80% chance of success!"
"You really think we can make money from this?"
"Not just money—big money!"
If this venture succeeded, they wouldn't just be making thousands—they'd be talking about millions or even tens of millions.
More importantly, the home appliance industry had room for expansion and scaling.
Think about Huang from Gome—in his past life, he started from one small store and became the richest man in the industry.
And Li Yi's starting point was much higher than Huang's.
There was no reason he couldn't achieve the same—or even surpass him!
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The Next Step
"How much money do we need to invest?" Wei Sanpao asked.
"Don't worry—I still have a few hundred thousand yuan. That should be enough for our initial investment," Li Yi assured him.
Then, he continued, "But in a few days, you'll need to come with me to Haidong City!"
Haidong City was a major import-export hub, especially for foreign electronics.
If they were going to enter the home appliance business, they had to start there.
"Alright!" Wei Sanpao agreed. "I'll wrap up things here and hand over responsibilities to Weizi and Xiaowu. Once everything is settled, we can leave!"
"Good!"
After discussing the future of the clothing stores, they locked up and went home.
A new chapter in their journey had begun.
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