Chapter 572: Investment Strategies

“Boss, Gao has accepted an investment from Group-Buy.”

“Group-Buy again…”

In Alibaba’s headquarters in Hangcheng, the news that Gao has accepted a 28% stake from Group-Buy reaches Mr. Ma, and his expression turns sour immediately.

From Lashou Network to UC.

The companies he has invested in one by one have suffered under Group-Buy. Now another target company has been snatched away. No doubt, he’s fuming internally.

Alibaba has long been a household name, reaping the benefits of the times and growing rapidly.

But who would have thought that a newcomer would be so aggressive, making Mr. Ma’s vigilance grow stronger.

Two years ago, Group-Buy was nothing, but now, it completely dominates an entire industry.

Especially as Group-Buy’s supply chain continues to grow, turning every physical merchant into its processor. Its money-drawing power is growing stronger.

He sells the vegetables, and the merchants who buy them to do business must also pay a cut to the platform.

Under this model, Group-Buy’s strength will only become more formidable.

What worries Mr. Ma the most is not just the supply chain and platform’s dual consumption model, but its own brand, Group-Buy Selected.

Honestly, Group-Buy Selected has already stepped into e-commerce territory, which Alibaba has deemed off-limits.

After all, they handle online self-operation and even provide delivery, especially with the mature delivery routes for community group buying.

When it comes to running an e-commerce platform, Mr. Ma fears no one, not even JD.

But if Group-Buy truly intends to dive deeper into the e-commerce sector, that would indeed pose a problem for Mr. Ma.

Why?

Because the internet ecology always operates on the high-frequency beats low-frequency tactic.

High-frequency refers to highly used features, using these to drive the development of less frequently used industries, the so-called high-frequency beats low-frequency.

Internet users are increasingly using group-buying for their meals out.

Coupled with daily special community group buying offers, Group-Buy’s users are increasing, and the frequency of their use is also rising.

Imagine a day when there’s an app that not only delivers groceries but also allows shopping for everything online, and everyone truly trusts its authenticity and it can also provide same-day delivery. That would be dangerous.

However, it seems Group-Buy isn’t fully focused on developing Group-Buy Selected just yet.

Mr. Ma always feels like “how can he allow others to sleep soundly by his side,” but that Mr. Jiang really dares to sleep soundly!

“We really can’t fall out now.”

“Alipay is currently the priority in development. Without group buying, there would be no scenarios for offline payments.”

Mr. Ma stays silent for a long while: “We need a product that can check Group-Buy’s influence. Otherwise, we’re too passive. How can we break Group-Buy’s monopoly in the life services sector?”

Honestly, Alibaba has grown so big it has ample resources and funds.

They could support any company and it would thrive.

Mr. Ma likes to control everything and is quite proud, but this feeling of powerlessness makes him very uncomfortable.

The life services sector has always been of great interest to Mr. Ma, even though Lashou has completely collapsed.

But the problem is, Group-Buy guards every step from supply chain to platform very tightly.

Meanwhile, in Alibaba’s investment department, the new manager, Li Changming, sits at Lu Zhichuan’s former desk, reviewing stacks of startup documents repeatedly.

These past few years have seen a boom in internet startups, with everyone recognizing this field as a goldmine, thinking they can easily trick investors.

This forces investment managers to have a keen eye to sift valuable startups from a heap of gimmicks.

Li Changming, flipping through, spots a funding request for a “Hungry? Don’t Order” meal platform.

He opens it, glances at it, and casually tosses it aside.

Another project that burns through money without limits. Making his first investment in such a project is too risky.

“…”

Time flashes by, and as New Year’s Day 2011 ends, the brand new 2012 strides in.

Right now, Linchuan University experiences another snowfall.

The harsh cold wind rages within the campus, whistling as the snowflakes dance, falling heavier with time.

Pine trees by the cafeteria stand bowed under the heavy snow.

Jiang Qin has recently started investing again and plans to build headquarters in Shanghai. Feeling somewhat drained, he’s been freeloading meals from young master Cao, Zhang Guangfa, and Song Qingqing, Jian Chun, and Jiang Tian.

But he avoids “little rich girl” as he subconsciously feels she’s like family—no need to freeload there.

“How can you freeload meals all the time?”

“I’m out of money.”

Jiang Qin sits opposite the four beauties of the finance class, eating the dumplings bought by Jian Chun, responding blandly to Zhuang Chen.

Zhuang Chen had given up on postgraduate studies early and planned to start a business right after graduation.

In the last part of his university life, he was determined to follow a path of a cool and aloof man-god.

The so-called cool and aloof man-god wouldn’t initiate a meal with Jian Chun but always “coincidentally” show up at the same time.

Even meeting by chance, he wouldn’t greet her, yet after getting his meal, he’d “accidentally” sit next to Jian Chun.

Sitting beside her, he wouldn’t talk to Jian Chun but always tried to strike Conversations with Song Qingqing, Jiang Tian, or Pan Xiu.

In Zhang Guangfa’s words, what kind of cool and aloof is that? You’re just awkward!

So, after Jiang Qin freeloading meals from the four beauties a few times, each time Zhuang Chen glared daggers at him.

Now, hearing Jiang Qin claim he’s out of money, Zhuang Chen’s face is full of scorn and jealousy.

“Putting on airs again.”

“?”

Jiang Qin turns to him: “I’m fucking broke and you think that’s putting on airs?”

Zhuang Chen glances at Jian Chun then responds, “Now you say you’re broke, but soon you’ll probably say you’ve only got a few billion left. Do this all the time, is it fun? Do you think you’re funny?”

“You really have too many issues, but just to be honest, I am actually broke this time.”

Hearing this, Zhuang Chen trembles inside: “Is Group-Buy facing a crisis again?”

Jiang Qin sighs: “I’ve bought shares in several companies and even secured a plot in Shanghai to build a headquarters skyscraper, of course, I’m out of cash. You think I love pretending? Haha, superficial.”

“…”

After breakfast, Jiang Qin drives away from Linchuan University, traveling along streets dressed in snowy elegance to Group-Buy headquarters.

Under the heavy snow, the headquarters courtyard lies pristine with a snowman in the parking area, looking quite ugly, a questionable masterpiece.

“Boss, look at the snowman I built!”

“I see it, awesome work!”

Lu Feiyu at the entrance, all smiles: “Do you see how grand the snowman’s stance is? I molded it after you!”

Jiang Qin: “?”

Just back from Kyoto, Dong Wenhao covers his face: “I told you to learn how to flatter, and this is the trick you picked up?”

“Dong, is my flattery not good?”

“Good, perfectly good…”

Meanwhile, senior managers gather in the conference room.

2011 saw rapid development for Group-Buy, so a year-end summary meeting is indeed necessary.

They present this year’s achievements, not just to summarize experiences but also to motivate for the future.

First to report is Tan Qing, since Group-Buy is currently the company’s most focused and profitable project.

Then come Dong Wenhao’s Zhihu, Lu Feiyu’s Tonight’s Headlines, Wei Lanlan’s coordination at Wanzhong, Hengtong, and Business Group, and Xu Yu’s Golden Silkwood investments…

By now, Group-Buy has consumed all lower-tier markets, not even sparing county cities.

To say Group-Buy’s users span the nation isn’t an exaggeration.

In smaller cities, KTV and cinemas see the most customers from group buying.

While in first-tier cities, food leads in attracting customers, reflecting economic development differences.

Also, Hengtong Freights’ transport and warehouse developments for the four major first-tier cities are nearing completion, with an efficient supply chain already established.

Clearly, this plan is essential for Group-Buy’s later development, and it must reach beyond just the four major cities.

So in 2012, Group-Buy’s supply chain operations will start to extend to target cities based on their order volume.

Moreover, Zhihu’s third collegiate beauty contest has heated up, with the campus competition round about to yield results.

Hua Ying Entertainment is currently scouting these candidates. Meanwhile, on Dong Wenhao’s suggestion, they’re eying the youth-oriented commercial film market.

Such campus films don’t need complex settings or exquisite costumes and props.

They’re low-cost but effective, certainly a promising direction to develop.

And the stories by Shi Miaomiao aren’t cheesy and suit adaptation to this type of film.

At Tonight’s Headlines, a prior copyright infringement incident brought large amounts of content creators to the platform, attracting a substantial user base and now steadily growing.

Additionally, Su Nai has launched an advertising platform tailored for Tonight’s Headlines.

Any advertiser can place ads on this platform, which creators can then claim.

For smaller brands, advertising can be tough.

Because mainstream platform advertising is too costly, and web ads don’t produce results, failing to meet expectations.

But the emergence of Tonight’s Headlines fills this gap, enabling brands to reach precise potential customers at minimal cost through algorithmic placements.

Such untapped markets are always blue oceans, so this service immediately garnered widespread attention once launched.

Moreover, many online stores have begun investing their own money in operations on Tonight’s Headlines.

Additionally, at Wanzhong, six revamped shopping malls have started operations, strong entries from Linchuan Business Group under Group-Buy have created a closed-loop, also allowing the seventh batch of Business Group brands to benefit from traffic gains.

Executives take turns standing and speaking; the year-end report concludes swiftly.

Everyone rises, clamoring loudly for the boss to treat them.

Jiang Qin hasn’t even started scolding when Tan Qing walks over, handing him a document—The development plan for “Hungry? Don’t Order” meal platform, clearly a pitch for investment.

“Boss, over in Shanghai, someone’s started doing take-out.”

“Hmm, it’s still early, no need to worry about it yet.”

Jiang Qin tosses the plan onto the table.