Chapter 1117: Logistics Development

Chapter 1121 – Logistics Development

Feng Yu and Kirilenko’s eCommerce website had been finalized. It will be using the B2C model, and it’s quite similar to amazon. The companies will sell their products to the consumers directly.

But this website had just started, and it’s still losing money currently. Their target is to increase users and registered customers. This is to let the consumers get used to online shopping.

In Russia and Eastern Europe, the economy is not doing well now. If the prices of precious metal had not gone up, Russia’s economy would be worse.

Luckily, Russia had been developing its agriculture in the past two years, and their reliance on food importation had dropped.

But Russia still facing an issue. The cities’ population is increasing, and the population of the farmlands is decreasing. Some small towns in rural areas are almost empty.

No one wants to live in a place with a low population. The US, Australia, and Canada’s family and small scale farms model do not work in Russia. So, this benefited many Chinese, especially the ones from Longjiang province. They leased the farmlands in Russia for farming.

This is also a win-win situation for both parties. Russia’s land is not wasted, and the farmers from China can make some money.

Feng Yu felt he had made a mistake by bringing forward the eCommerce by several years. Currently, the most suitable model for eCommerce should be the B2B model, as very few consumers will go online shopping. At most, they will just buy a book or some small items.

It is no like the time just before Feng Yu’s rebirth. During that time, consumers are even buying luxurious items online, let alone daily necessities.

There’s one more thing that made Feng Yu helpless. The logistics industry is not yet developed. For example, there are only three large logistics companies in China. First, it is the Government’s post offices, followed by Wind and Rain Logistics and SF Express.

When Wang Wei set up SF Express, Feng Yu had gotten his men to lend Wang Wei 100,000 RMB and had not recovered this debt. He wonders if Wang Wei still remembers this.

Feng Yu has no intention of acquiring SF Express. Although logistics is profitable, he can just cooperate with Wang Wei in the future. Sometimes, Feng Yu wonders how Wang Wei will repay him if he appears and told Wang Wei that he had lent him money to set up his company.

Will Wang Wei return Feng Yu ten times, a hundred times the loan amount, or will he offer shares? But no matter how Wang Wei is going to repay him, his expression must be priceless.

Will Wang Wei give Feng Yu everything he owns? If it’s Feng Yu, he will never do that. At most, he will offer the other party half of his wealth. But if the other party wants more, he will not agree.

Feng Yu does not want to use this favor to force Wang Wei to repay his debt, but Feng Yu will still want something. Wang Wei is a secretive person in Feng Yu’s previous life. He does not accept interviews, and there is very little news about him on the internet. His company does not accept any investments and is not listed.

Although many people told Wang Wei that if SF Express is listed, he will become one of China’s top billionaires or even Asia.

But Wang Wei asked those people. Why should I let SF Express get listed? SF Express is doing well and does not lack funds for development. Why should I let the company get listed and share the profits with others? Isn’t it better for me to share some of the profits with my employees?

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Feng Yu likes Wang Wei’s attitude and would love to befriend him.

Wind and Rain Logistics had fully covered the three provinces in the Northeast region to Beijing, including all the Counties there. But from Beijing to the southern region, they can only cover some major Provinces and Cities. Even the Government’s post offices are better than them.

But Wind and Rain Logistics has better customer services and is faster. At least, most customers would choose them for inter-provinces deliveries as they are slightly cheaper. If the customers chose to have long-term cooperation with Wind and Rain Logistics, they would have some discounts.

The coastal provinces and south from Changjian are SF Express’s territory. They covered all the cities, Counties, and even Hong Kong and Macau. As for the rest of China, they can only deliver to the Provinces’ main cities.

Like this, both logistics companies had covered China’s whole and is only slightly behind the Government’s Post Offices. Compared to the time before Feng Yu’s rebirth, they are much stronger than many logistics companies.

In Feng Yu’s previous life, other than the Government’s Post Offices and SF Express, there are Yunda Express, Kuayue Express, Tiantian Express, Beijing ZJS Express, and Tongzi Express, the four main logistics companies in China. There are also foreign logistics companies operating in China, like FedEx, DHL, etc.

These logistics companies had helped increase the development of eCommerce. Many of these companies even guaranteed the customers they will receive the item the next day after purchasing.

The logistics companies created a new popular occupation, courier deliverymen. Just SF Express alone, they hired over 300,000 deliverymen. There should be several million deliverymen working for logistics companies in China.

Now, SF Express only owns slightly more than 1,000 delivery trucks and employed about 20,000 employees. Wind and Rain Logistics owns slightly more than 2,000 trucks and has only around 30,000 employees. Compared to Feng Yu’s previous life, SF Express has cargo planes.

But Wind and Rain Logistics and SF Express can still maintain their profits. Although their scale is not as big as the logistics companies in Feng Yu’s previous life, they are still doing well.

Russia is much worse than in China. Their logistics company is newly set up. If Kirilenko and Feng Yu did not use their services, their profits would have dropped by more than 90%!

Feng Yu realized that he had been overly anxious. He does not get any advantage by being the first into the industry. Instead, he will suffer losses when he starts the eCommerce business now.

Suppose Feng Yu had started the logistics company and eCommerce website two years later. In that case, he can still occupy the Eastern European market, and his investments will be much lower.

It was until now Feng Yu realized that he had made such a major mistake unknowingly.

Feng Yu decided to ask others, like Zhong Qingxian, Kameda Masao, Fu Rongqi, etc. for their opinions before deciding. At least, they are much better than Feng Yu in many areas.

Feng Yu must also conduct market surveys before any decision. The world had changed slightly because of his rebirth. Although the major events had not changed, the timing had changed.

Feng Yu rubbed his chin and wondered if he should set up a team of advisors? But it seems unnecessary.

Feng Yu knew he would not listen to every advice he received, and the advisors’ team is not very useful for him.

Never mind. I can just think through every decision carefully in the future. Luckily, the profits in the future are much more than the losses now.

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