Chapter 675
The National Day holidays were over, and it was November . This period was the down period for retail .
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Someone had said that November was a lousy month for retailers because it was the end of the year the following money . Everyone was working hard to complete their annual tasks and did not have time to go shopping .
Someone said that it was because everyone had overspent during the National Day holidays and the Mid-autumn festival and did not have spare cash to shop .
There were also people who said that November was the start of the Winter season and people were not willing to go out . All of them prefers to stay indoors to avoid the cold .
These excuses did not apply to Tai Hua Supermarkets .
Even when the weather was cold and the Northeast regions were snowing, it did not stop people from wanting to shop at Tai Hua Supermarkets . There were many reasons . One of them was because the products sold at Tai Hua Supermarkets were cheaper .
Another reason was that the shopping cards that were received on 1st October will be expiring . The duration was only 50 days . If the consumers still did not use the cards, it will be expired . Tai Hua Supermarkets were also warm, and even if the shoppers were there for window shopping, the store assistants would not chase them away . The store assistants will still greet them nicely, and the shoppers felt good . The shoppers had only wanted to spend some time at the supermarkets, but they will end up buying something .
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Tai Hua Supermarkets’ suppliers were also excited . Tai Hua Supermarket only had 20 branches, but how come the sales were so good?
Initially, Tai Hua Supermarkets offered harsh terms to the suppliers, and the suppliers were unhappy . Tai Hua Supermarket wanted credit terms and demanded deposits . The suppliers still had to pay for promotions and let Tai Hua Supermarket manage them . They even had to pay for the printing of leaflets .
If Tai Hua Supermarket did not guarantee that their products will be selling fast and gave them a good price, they would definitely agree with those terms .
But now, all the suppliers felt they had made the right choice by signing the contract with Tai Hua Supermarket . The volume was high, and it was good for their branding .
When the suppliers went to check on their products at the supermarkets, they saw their products packed neatly on the shelves . It increases the attractiveness of their products to shoppers . Look at the way other malls and shops displayed their products . It was messy and dirty . There was even dust on the shelves, and the attitude of the shop assistants was terrible . No other shops could compare to Tai Hua Supermarkets .
At the end of the month, Tai Hua Supermarkets settled the credit terms with the suppliers . There were no delays at all .
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This was not the end . The orders for the second month was more than the first month . Tai Hua Supermarkets still wanted them to deliver their products once a week . There was no reason for the suppliers to reject this request . They do not mind sending goods every day if the sales of their products were excellent . The more goods they delivered, the more money they earn .
Many other brands noticed that if this growth continued, by next year, Tai Hua Supermarket’s sales volume would be more than their previous year’s annual sales . They also received more orders from smaller retailers .
At first, the suppliers also did not know the reason for the sudden spike in orders by the other retailers . Their salesmen went to ask around and found out the cause . It was because the customers had bought their products from Tai Hua Supermarkets before and they felt the product was not bad . For instance, toilet rolls or a bottle of fruit juice . But when the customers suddenly ran out of the products, they might not have the time to travel to Tai Hua Supermarkets .
So, they would just go to the nearest retail stores to buy . Their first choice would be the products they saw at Tai Hua Supermarkets .
Everyone felt that the brands that were sold in Tai Hua Supermarkets must be good brands and good products .
The supermarkets were meant for the masses, but many people treated Tai Hua Supermarkets as high-end markets . Even Feng Yu had not expected this .
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But from the cleanliness and tidiness of Tai Hua Supermarkets, it was way ahead from other malls and shops . There were many janitors at Tai Hua Supermarkets .
So, the suppliers who had signed short-term contracts with Tai Hua Supermarkets wanted to extend their contracts . They wanted a long-term contract with Tai Hua Supermarket . Tai Hua Supermarkets were their best retailer .
But now, it was not Tai Hua Supermarkets that went to look for them to place their products in the supermarkets . Tai Hua Supermarkets no longer needs to make use of their connections to get the suppliers to supply their products . Now, it was Tai Hua Supermarket that calls the shot . The positions of Tai Hua Supermarkets and the suppliers had changed .
Now you want to sign a long-term contract? No problem . Supply us with your products, and we will settle the payment at the end of the month . You also have to abide by our rules . If we ask you to pay, you all must pay . Shouldn’t the supplier prices be lowered? Although the prices you all offered were low, it was about the same as those the Provincial suppliers .
We, Tai Hua Supermarket, have branches in more than a dozen cities . We have already established our presences in almost half of the cities in China . Is this rate the lowest you can offer? No other retailers will be able to place such a big order with you .
Before, Tai Hua Supermarket had been paying the suppliers at a slightly lower rate compared to the other malls and shops in the cities . If it wasn’t for the imported goods, Tai Hua Supermarket might not have high profits .
But after the new contracts, Tai Hua Supermarket got the lowest supplier rates in China . You are not willing to give us a better price? Fine . When all the existing stocks were sold out, we will not order any products under your brand . You are not the only company that produces such products . Suppliers all over China were waiting to sell their products to us . We don’t need you .
Also, Tai Hua Supermarket was good at marketing . After the suppliers’ products entered the supermarket, their brand image, and value increases .
Philips, Wind and Rain brand, Aiwa, The Little Tyrant, Lehaha, and all the famous Chinese brands had signed long-term contracts with Tai Hua Supermarket . Some smaller local brands gritted their teeth and accepted the harsh terms issued by Tai Hua Supermarkets and signed the contracts .
Although the terms were harsh, the sales volume was significant, and the companies were still able to make money .
Some of the other brands still had a “wait and see” attitude, and some gave in to the pressure and chose to sign the contract .
Feng Yu looked at the list of companies that did not sign the new contracts . Those brands that did not have replacements can remain . Their short-term contracts were not up anyway . Those brands that could be replaced will be replaced when the short-term contract ends!