Chapter 100: Resource Position Monopoly
【Since that's the case, let's go with the flow and invest in building a factory. Worst case, we bring in our former distributor and invest together.】
Shen Mo wondered to himself, feeling this problem was easy to solve.
Liu Yue sighed and said slowly, "You're afraid that after cooperating with the distributor, they'll swallow the Shen Family's production technology and then kick you out."
The basis of the Shen family's cooperation with the distributor is one side provides the channels, the other provides the technology and raw materials.
But once they jointly invest in a factory, a situation arises where one side can kick the other out.
Of course, it's not just the Shen family keeping an eye on the distributor; the other side also fears that once the Shen family enters, they'll swallow their distribution channels and then kick them out.
One could say this is a cooperative relationship with only profit, no trust.
Now that a problem has arisen, everyone wants to solve it, but doesn't know how.
It's quite a headache.
This is also the sorrow of having no distribution channels of your own in a foreign land.
Like domestically, the Shen family has its own sales channels, saving a lot of trouble.
"So you see, doing business is very difficult."
"Especially for our kind of physical business, the costs are too high."
"Like the virtual economy, you just need to open up the channels; everything else can be solved. The biggest cost is just human resources."
Liu Yue sighed softly; she had no good solution to offer Shen Jiajia either.
The Qin Group is also an outsider here; they've just been operating longer and have some connections, but they can't shelter the Shen family.
Shen Jiajia said with a headache, "If there's really no other way, we can only do some market exchange—find some locals to cooperate with, and invite a third party in."
This counts as a conventional solution in traditional foreign trade.
Not very brilliant, but it works, and the profit is long-term enough.
Liu Yue nodded slightly; they could only do this.
"Then you'll need to bring more bodyguards when you go out recently. After all, if you stop cooperating with your distributor, they might do something desperate."
This is the worst part about being abroad—trouble can easily happen.
Shen Jiajia nodded; this was certainly true.
Life is the most important thing, after all.
As for breaking the rules and no one coming to do business afterward?
How to put this...
One can only say, as long as the market is big enough and the profit is big enough, someone will always take the risk.
After chatting some more about the market and cooperation projects, Shen Jiajia went back to her room.
Liu Yue then looked at Shen Mo with a smile: "Hubby, aren't you going to persuade me to help her?"
Shen Mo shook his head and said softly, "You've known each other longer than I have, you're closer, you're best friends. If you were willing to help, and could help, I wouldn't need to say a word."
Liu Yue nodded. She really couldn't help—the Liu Family and Shen Family's businesses were different; the marriage alliance was just because the elders got along well.
All she could do was provide financial support.
But the Shen family itself was not short on money.
From back then until now, the Shen family has always been a cash flow heavyweight.
So, the support Liu Yue can offer now is only in terms of wisdom, security, and stance.
To make Shen Jiajia not seem like she's fighting alone.
And stance support is the most obvious.
Half a month later, Shen Jiajia finally gathered enough people to set up a factory here.
Or rather, she signed up the personnel for the factory. Quite a mixed bunch—you could tell they weren't expecting to make big money, just wanted to open up the market.
Shen Mo attended the contract signing.
This Shen family branch factory is a joint venture. The shareholders include the Shen family's former local distributor, Mr. Fernando, the local hardware businessman Duolun Family, and one share held by Liu Yue, Shen Mo, and the Qin Foundation.
Liu Yue, Shen Mo, and the Qin Foundation's share is stance support—telling them the Shen family still has allies supporting them internationally.
After the signing, the Duolun Family began discussing other international cooperation with the Shen family.
Such as sales channel exchange in Southeast Asia and Africa, joint market division, etc.
After a round of talks, the Duolun Family more or less showed willingness to make concessions. The person they sent to cooperate was also a young man, just two years older than Shen Jiajia, with a particularly good reputation in the circle—not one for messing around.
To the point where Shen Mo couldn't help complaining internally.
【Could it be they sent him to arrange a marriage alliance, with the goal of seducing my sister?】
Liu Yue really wanted to roll her eyes, expressing her exasperation with Shen Mo. My dear husband, don't overthink it. The Duolun Family is a business family that has lasted over a hundred and seventy years, passed down several generations. They're not the type to rush into a marriage alliance just because they met someone from a foreign land.
Then...
Night.
After seeing off the Duolun Family's representative, Mr. Meldo, Shen Jiajia collapsed on the sofa without a care for her image, saying lifelessly, "This Meldo wants to marry into my family."
【Holy crap, I actually guessed right.】
Liu Yue was also in disbelief. Why?
Are these Westerners that desperate?
Shen Jiajia said with a headache, "The Duolun Family is an old-established family. They've been in the hardware and steel business for over a hundred years. They're part of the old money. They..."
Shen Mo couldn't help interrupting: "Sis, hold on."
Shen Jiajia looked at him in confusion?
What's wrong?
"Are old money families really that cheap here? How come every one we meet is like this?" Shen Mo was genuinely stunned.
Shen Jiajia glanced at Liu Yue with a look that said "didn't you tell him?" Then she explained, "It's not that old money families are cheap; it's that we're too valuable."
What does that mean?
"The so-called old-money families, put plainly, are families that have been around for a long time, accumulated massive wealth, are deeply entrenched in a particular industry, and have an extremely thick cash flow."
"But when you get down to it, what these families really mean is that they caught the dividend of this country's founding, or the dividend of an era of change, and through effective education, they held onto their throne."
"That's all there is to it."
"But the market has a limited share. Old-money families being impressive doesn't mean they can swallow up the entire market. So when they face a similar behemoth, even one that only rose to power a few years ago, they'll take the initiative to reach out."
"By the way, the reason old-money families can keep going — take the land beneath our feet, for instance — is actually a form of resource monopoly in disguise."
"Take the Duolun Family. Their hardware and steel brand is deeply rooted in this country, so it's very hard for another family of the same scale to rise in this industry, and it's also very hard for newcomers to challenge the Duolun Family."
"This also illustrates a point: as the times develop, new rich people are rarely produced in old industries — most of them catch the wave of an era of change."
"Our Shen Family is the same domestically. Because our parents caught the dividend of reform and profited handsomely, our family was able to strike it rich overnight. But under our family's pressure on this industry, it's very hard for a new era to produce another tycoon of the same scale."
"In mathematical terms, the resource slots are limited."
"And you can also look at the new-era rich — they're basically all people who caught the internet, the dividend of an era of change."
"So old-money families are nothing special. Take our Shen Family — once I have another kid, and it gets passed down for another few decades or a hundred years, we can be called an old-money family too."
As he spoke, he also winked at Liu Yue — the Liu Family could actually be called an old-money family too, passed down for long enough.
Besides, Shen Jiajia had always felt that Liu Yue was hiding something. How could the Liu Family's private cash flow only be the two-hundred-plus billion on the surface? There had to be more hidden away.
Shen Mo nodded, understanding now. To put it bluntly, old-money families weren't that impressive — they were simply the descendants left behind by the pioneers and elites who got there first.
So Shen Mo turned and asked another question: "Then what's the purpose of the Duolun Family seeking an alliance with you through marriage?"
(End of this chapter)
End of Chapter
