Chapter 868
, Phase 1 Financing Amount: 3 million
"I've initially set the target for this round of financing at 300 billion!"
As soon as those words were spoken, the entire room fell silent, as if a mute button had been pressed.
The amount of money involved truly surprised everyone present.
I never expected Wang Donglai to go this far.
Before anyone could speak, Wang Donglai began to explain.
"We will invest the 300 billion yuan in financing into Galaxy Technology's subsidiaries and new businesses."
"This includes the upcoming Galaxy Supermarket and Galaxy Education projects."
"The Galaxy Supermarket Plan includes fifty large supermarkets and two thousand community supermarkets nationwide."
"Galaxy Education will acquire three vocational education schools to cultivate talent for the modern era."
Upon hearing Wang Donglai's words, everyone began to ponder.
We're all business people, so we can quickly estimate the costs and expenses.
No matter how you calculate it, it won't cost 300 billion.
Seeing the confusion on everyone's faces, Wang Donglai remained calm, pulled over a whiteboard, and wrote the number 7000 on it with a marker.
"I set the salary at seven thousand for ordinary employees of Galaxy Supermarket."
“This is not the standard for first-tier cities; it is the national standard. In third- and fourth-tier cities, the monthly salary of local supermarket employees is generally between three and four thousand yuan, while we directly double that.”
Sitting next to Wang Donglai, Lei Jun quickly did some mental calculations: "If each store is equipped with 200 grassroots employees, then 50 stores would be 10,000 people. Add to that 2,000 community supermarkets, and that's another 10,000 people. This alone would increase labor costs by at least 60 million per month."
"The arrangements for Galaxy Supermarket are not limited to these."
Wang Donglai quickly wrote a word on the whiteboard and said, "Seven thousand is just the base salary. As a subsidiary of Galaxy Technology, and in the service industry, we will also establish some other incentive measures, such as the 'Grievance Award'—any employee who suffers unreasonable treatment from customers at work but maintains a professional attitude will receive an extra bonus of five hundred to two thousand yuan that month. We will also establish 'Smiling Star' and 'Service Model' quarterly awards, with bonuses starting at five thousand yuan. The year-end bonus will be no less than three months' salary."
Jack Ma leaned forward slightly and asked earnestly, "You want to buy service with money?"
"I want to buy dignity with respect!"
Wang Donglai's voice suddenly became deep as he said, "Why is the service attitude of grassroots employees in the domestic retail industry so inconsistent? It's because they are paid barely enough to make ends meet, yet they have to bear all the negative emotions of customers."
"We change this logic: give them enough money, enough respect, and enough opportunities for growth. And then, what will we get in return?"
Before Jack Ma could answer, Wang Donglai answered his own question: "We will get the best service team in the domestic retail industry, employees will spontaneously maintain the company's image, and we will have an extremely low turnover rate—because once they leave here, they will never find a job with the same treatment again."
"Regarding the construction of Galaxy Supermarket, I have reached a cooperation agreement with Mr. Yu from Pangdonglai. Mr. Yu will serve as the honorary chairman, and the management personnel will also receive training at Pangdonglai."
"Speaking of which, I have to mention that Mr. Ma's idea of unmanned supermarkets is a good one, but I don't really agree with it."
"In theory, unmanned supermarkets reduce labor costs and can operate 24 hours a day, so their profitability should be improved. However, for consumers, it increases inconvenience and they do not get any benefits. For society, it also reduces job opportunities. In my opinion, this is an improper use of technology."
"This has been proven by the fact that unmanned supermarkets have not gained market acceptance."
Jack Ma's face immediately darkened. After being told off by Wang Donglai, he naturally lost face.
He immediately retorted, "If we do it the way you say, our labor costs will be more than double those of our competitors, which will make Galaxy Supermarket's product pricing uncompetitive."
"Therefore, we do not operate our own products."
Wang Donglai introduced the second disruptive point, further explaining: "Galaxy Supermarket only provides a platform and experience. We do not profit from the price difference of goods. We earn entry fees, advertising fees, and data service fees."
"All products are directly managed by the brands themselves, while we provide the venue, logistics, data, and customer traffic. Our core competitiveness lies in the shopping experience created by our employees who earn a starting salary of 7,000 yuan per month, have received professional training, and genuinely smile."
He drew a circle on the whiteboard: "Within three years, I want to open fifty stores like this."
“It’s not a traditional supermarket, it’s a ‘brand experience center + community service center’. Each store is equipped with a temporary childcare area, a rest area for the elderly, a free charging station, and a first-aid kit—all of these services are provided by our highly paid employees.”
Ma Huateng suddenly spoke up: "You're using internet platform thinking to do physical retail."
"Exactly!"
Wang Donglai's eyes lit up, and he said, "The essence of Galaxy Supermarket is not a supermarket, but an offline traffic entrance and experience terminal."
"I think you can all take a look at Pang Donglai's data reports. What Galaxy Supermarket needs to do is to replicate fifty of them, achieve economies of scale, become a local consumer brand, and become an industry benchmark."
"When we achieve this, the value of our data, advertising, and financial services will far exceed the profit from the price difference of goods."
"Moreover, we will also build the supply chain simultaneously, participate in it in all aspects, control quality and cost, and provide consumers with better products."
This entire business plan is well-reasoned and supported by evidence, but it's still somewhat difficult to convince everyone.
"In labor-intensive industries like retail and education, labor costs are the biggest key to profitability. If, as Mr. Wang says, the starting salary for an ordinary employee is 7,000 yuan, then adding the management level, the labor cost will be 1.5 to 2 times the industry average. This means permanent losses. I find it hard to believe that Mr. Wang's idea of using an internet platform mindset to succeed in physical retail is true."
Jack Ma shook his head and denied it.
“Mr. Ma, in principle, the core plan of Galaxy Supermarket should not be discussed at this time, but since you have a question, I can speak about it appropriately.”
"The shopping mall I want to build won't be in the basement of these shopping malls. I want to buy the whole building, or build it myself."
"Three flagship stores in each first-tier city, each with 50,000 square meters."
"It's not a supermarket, it's an experience center, a larger version of Pang Donglai, a commercial entity that puts consumers first."
Lei Jun shook his head and said, "Each of these 'experience centers' requires an investment of at least 2 billion yuan. Fifty centers would cost 100 billion yuan just for construction. Then there are the costs of labor, goods, and operations, which would be even higher. The payback period would probably be very long, and the return on investment would be extremely low."
“There’s no need to consider the payback period!” Wang Donglai’s answer surprised everyone, who didn’t understand what he meant.
"Galaxy Supermarket considers the time users spend. If a family of three spends ten hours a week in our space, will they go elsewhere to make purchases?"
"As a product in which everyone has participated in financing, profitability is inevitable, and this is also a way of showing respect to everyone."
"I cannot disclose more trade secrets at the moment, and I hope everyone understands."
Wang Donglai's attitude was already very good, so no one pressed him for more information, since he had already said it was a trade secret.
After waiting a while and seeing that no one raised any questions, Wang Donglai continued, "The plan for Galaxy Education is even simpler."
"For Galaxy Education, I have initially set the cost of training each person at 100,000 yuan per year. This is not a price list, but our investment cost. Students only need to pay 20,000 yuan, and the remaining 80,000 yuan will be subsidized by Galaxy Technology."
Once this number was revealed, everyone could no longer remain silent.
In today's job market, an average worker can't earn more than 100,000 yuan a year.
As a result, setting up a vocational school requires an investment of 100,000 yuan per year.
Moreover, students only pay 20,000 yuan in tuition fees. Given Wang Donglai's approach, other expenses such as accommodation and courses would likely require additional planning.
Lei Jun gasped and said, "Are you trying to steal market share by paying someone else?"
"I want to create a special forces training camp for the education sector!"
Wang Donglai's expression turned serious, and he said, "What is the biggest problem with vocational education in China? What schools teach is not applicable to enterprises, and what enterprises need is not taught in schools. Galaxy Education aims to break down this barrier."
"We offer six specializations: Artificial Intelligence Applications, Intelligent Manufacturing, Digital Cultural and Creative Industries, Modern Agricultural Technology, Big Health Management, and New Energy Technology."
“The cost of 100,000 yuan per student is allocated as follows: 50,000 yuan is used for teaching—holographic projection classrooms, industrial-grade training equipment, and the introduction of real enterprise projects; 30,000 yuan is used for teachers—I want to recruit the real top talents; and 10,000 yuan is used for international exchanges—sending 20% of students to overseas partner companies for internships every year.”
Jack Ma interjected at this point, asking, "How are we going to address the faculty issue? It's not easy to recruit truly top-tier experts!"
Wang Donglai nodded, admitting, "That's true!"
"Therefore, I have decided to recruit people from three aspects: First, practical professors in universities, those with real industry experience, will have their salaries doubled; second, senior experts in enterprises, directors-level, will be recruited to serve as department heads, with salaries comparable to those in enterprises, plus stock options; third, top international talents, at any cost."
He gave another example: "For example, in the field of artificial intelligence, I would adjust the positions in relevant departments of Galaxy Technology. Those who are willing to go to Galaxy Education can be transferred there. If there are some fields, we need to poach professors from Tsinghua University and Zhejiang University. Their current annual salary is around 500,000 yuan, but Galaxy Technology can double that and provide support in terms of research funding."
Jack Ma pressed further, "Why are these experts here? Just for the money?"
"Because of the platform and freedom!"
Wang Donglai was prepared and explained, "In universities, they are limited by paper quotas; in companies, they are limited by KPIs."
“With me, they have only one task: to cultivate students who can lead industry change three years from now. They are free to design courses, build teams, and use budgets as they see fit—as long as the students they cultivate can withstand market scrutiny.”
"The same principle applies to Jack Ma's DAMO Academy. To achieve results in scientific research, one must have a long-term perspective."
Jack Ma fell into deep thought, as if he had thought of something.
At this point, Ma Huateng asked the most crucial question: "If we don't consider profitability within three years, will 300 billion be enough to burn through for three years?"
Wang Donglai shook his head and said, "The 300 billion is just the first phase of investment; there will be new investment amounts later."
"Furthermore, this 300 billion will not only be used entirely for Galaxy Education and Galaxy Supermarket, but will also be invested in Xinghuo Express, Pinhaofan, Galaxy Entertainment and other businesses."
"According to my calculations, this 300 billion will be roughly enough for this year."
"However, the effects of investing 300 billion yuan a year are also obvious."
"I can promise that Pinhaofan and Xinghuo Express will be included in the listing plan, and we plan to go public next year."
"If possible, Galaxy Entertainment could also go public!"
"As for Douyin, Neihan, and Toutiao, we can postpone that to the year after next or the year after that."
"In three years, Galaxy Supermarket and Galaxy Education will have enough time to achieve results. The former will gain a foothold and become profitable, while the latter will cultivate qualified and outstanding professionals. From enrollment to graduation, the school will have full control over the process, and outstanding graduates will directly join Galaxy Technology."
"Therefore, these three years become very important!"
"Money is only one aspect. We need to invest more energy and effort on this basis to provide higher quality services, use money to create the best education, and use money to build the deepest moat."
"When everyone gets used to good service, who will go back? When companies are scrambling to hire our graduates, who will still value traditional vocational schools?"
The room fell silent, but this time there was something new in the silence—a picture that was gradually becoming clearer.
The people sitting here are all successful businessmen in China. After listening to so much, they naturally understand what Wang Donglai is building: not two businesses, but a closed-loop ecosystem.
Galaxy Technology brought them together through its strong profitability, then distributed its wealth by improving employee benefits, and then earned the money back from the market through high-quality services and cutting-edge technology.
Now that they've figured it out, the problem is back in front of them.
Should we invest money or not?
If we're talking about investing money, this is only the first phase, and it already amounts to 300 billion.
It will only get higher, not lower.
If they don't invest, it's like saying goodbye to Galaxy Technology and the technological innovations it possesses.
In an instant, everyone's minds raced with thoughts. (End of Chapter)