Chapter 145 Advantages
t through action.Of course, I’ll dedicate myself to writing what everyone enjoys reading and finds more enjoyable.Thanks for your monthly tickets, friendly suggestions, understanding and tolerance. Un...Volume 3: Go to That Distant Place Chapter 145: Advantage
(Chapters two merged into one)
Mid-December arrived, and Su Cen met with Lin Guangdong.
"Unlike the Beijing journal distribution channels where everyone fights for their own interests and there's a mix of good and bad elements, it’s also different from the chaotic situation in Guangzhou. Despite Shanghai's local journals not being very developed, its distribution is quite well-developed. The competition in the distribution market has already passed the initial stage and is orderly. This orderly form of competition indirectly suggests that this dynamic competition has reached a relatively balanced state which is hard to disrupt from outside. However, Tan Wen can rely on his established reputation in the industry to achieve this, playing it safe on all sides." Lin Guangdong drove to Nan University where Su Cen had been waiting for some time and indicated him to get into the car. Then, Lin Guangdong analyzed the situation for Su Cen.
Tan Wen was quite famous in Shanghai's journal industry due to his early years serving as the chief editor of 'Eastern Daily' and deputy chief editor of 'China Information Industry News'. Later he served as the director of Shanghai’s news office, then was transferred into a central state-owned enterprise (SOE) where he held an executive position. After returning to Shanghai, Tan Wen suddenly made big moves and his newly established Wenzhou Books Company quickly consolidated many smaller distribution channels with substantial funding, rapidly cross-participating in major distributors and expanding its influence.
"This way, our every move is under his control. Even a slight breeze could be enough for these channel providers to gossip among themselves, leaving us quite uncomfortable." Lin Guangdong seemed very frustrated because several business plans had been preempted by the other side. Given this trend, Tan Wen's extensive networking and pressure on Pineapple Media was more common. Although it didn't force Pineapple’s magazines out of major distribution channels, they were definitely under significant stress.
"Tan Wen laid the groundwork for Shanghai last year; his Lianshang Cultural company adopted a super-efficient chain operation model to establish a three-tier management network with nine regional companies and 120 delivery stations, connecting over thirteen hundred individual bookstalls and newspapers stands in newly emerged areas as well as around two underground lines of metro and one light rail line. The current mainstream channel providers' New Eastern Kiosk holds two thousand one hundred newspaper kiosks. Meanwhile, another giant Qiyang Publishing Service Company controls the sole journal supply rights to over two thousand convenience stores. Another major player, Metro Book Services Company, occupies more than 90% of metro retail outlets. These distributors’ resources are admirable. However, Lianshang Cultural company established by Tan Wen in a short time has swiftly become one of the big players with over fourteen hundred points. Despite us having signed cooperation agreements with several major channels, recently Tan Wen plans to launch new distribution methods on land and in hotels—excluding Pineapple Media from this initiative. It’s not out of the question that he’s deliberately targeting us; our rapid growth has also made others wary."
Su Cen nodded, "We can only admire power when it's too strong for us to compete with. We envy those who are currently weaker but have potential to surpass us. You're worried Tan Wen might cause other players to unite and put pressure on Pineapple Media"
Lin Guangdong replied, "Last year, Pineapple Media’s magazine revenue was seven million yuan; the sales of our distribution department already broke one hundred million. This is an outstanding figure considering Pineapple's integrated production and sales model. Many are learning from us but suffer historical limitations that prevent them finding a turning point. Moreover, we have outlets in hospitals, colleges and universities across Shanghai, even government offices – although only around two hundred or so points, still it’s enviable."
Lin Guangdong drove Su Cen to a hotel in Xuhui District, which was hidden on a verdant path amidst the bustling city. The area was separated by rivers and parks. Along this simple shaded road, Su Cen saw numerous luxury cars as they arrived.
Passing through the section, the elegant hotel appeared suddenly like an oasis in sight with its lofty design and luminous interior.
This was a grand gathering for Shanghai's book industry, assembling major journal and booksellers from Beijing, Shanghai, and Guangzhou. One could see this from the numerous luxury cars parked at the hotel’s parking lot and familiar faces of celebrities often seen in media and magazines.
Once they had parked, as Su Cen was about to open his car door, he felt the car shake slightly. It turned out that a Mercedes next to them had parked rather closely, then someone from the back seat rudely opened their door, hitting one side of their car.
The driver's door on the other vehicle opened next, bumping into Su Cen’s passenger-side door with a bang.
After two such bumps, the person who got out finally seemed to focus and looked over at them. There were three people in total: a beautiful woman around thirty and two middle-aged men, mostly looking straight ahead, showing an air of arrogance.
The other party didn't recognize Su Cen but was momentarily stunned when they saw Lin Guangdong sitting next to him in the driver's seat before heading towards the conference hall.
As soon as he got out of the car, Su Cen checked his vehicle. Fortunately, the Audi had decent primer and there wasn’t much damage. Pointing at the Mercedes S400 parked beside them, Su Cen said, "He didn't even apologize. Should I scratch two marks on it to teach him a lesson"
Lin Guangdong waved his hand, indicating that it's better to focus on important matters: "That was Zhao Wei from New Eastern Distribution Company – one of the four major distribution channels right now. Forget about it; such minor hassles are unavoidable and there’s no need to waste time糾纏他們."
Upon entering the lobby, the venue was bustling with people, including elderly gentlemen and young women. Lin Guangdong greeted others as he walked in and noticed that someone in the second corridor, which had a red carpet laid out, was surrounded by reporters. The person appeared to be a middle-aged man wearing tortoiseshell glasses with neat hair combed to one side, and an oval-shaped face with prominent cheekbones. Thanks to the lighting, his tortoiseshell glasses seemed to reflect a certain sharpness, indicating that he was full of vigor and adept at making connections. He was shaking hands with Zhao Wei’s group who had just bumped into Su Cen's car.
Many people were gathered around them, giving the impression of industry celebrities.
"That person is Tan Wen. In a short period, he has become one of Shanghai's top four distribution channels. His influence and prestige are not low across all sides. More importantly, it’s said that his background isn’t small; he was personally selected by the general manager of state-owned Jiangyuan Group to enter the cultural media industry in the Yangtze River Delta."
Pausing for a moment, Lin Guangdong continued, "The media industry is highly countercyclical, and with the government's substantial progress in reforming mechanisms and systems in the media sector as well as tax preferential policies being implemented, future investment opportunities will certainly increase. Macro policy trends are bringing effective breakthroughs to the media industry entering capital markets. The current central reform policies aim to transform state ministry publishing houses, newspapers, and magazines into media groups and publication groups, detaching them from their previous affiliations, restructuring, and transforming them into public companies for independent operation in society's media domain. Efforts are being made to achieve a world-class status for China’s media within five years, forming three or four globally top-tier media conglomerates. The goal is to realize cross-regional, cross-media, even cross-border development. As Pine Media makes significant progress in Shanghai next year, more business from the provincial newspaper group will be transferred here. In the next five years, we will play a vanguard role as the front line for the provincial newspaper group's move into East Asian media markets through this eastern window of Shanghai."
"Is the general manager of the provincial newspaper group the former provincial governor Yang Zhengliang" asked Su Cen.
Lin Guangdong nodded, "Old Mr. Yang occasionally still talks about you. This time you're back in Rongcheng, he won't be able to avoid meeting with and talking to you. You’ve become a hotshot."
Su Cen suddenly understood; the ruckus caused by Jiangyuan Group's Lianshang Culture in Shanghai is significantly related to Pine Media. The backdrop of this situation must involve political maneuvering between northern and southern factions. It’s worth noting that behind Su Cen’s Pine Media lies a deeper background, the provincial newspaper group, which holds 20% shares in Pine Media. Political soft control also rests with the newspaper group, playing an important role as a reform pioneer for the provincial newspaper group.
As Pine Media grows and more business from the provincial newspaper group is transferred over, along with even more influential parties intervening, shareholding ratios will likely further increase to around 30%-40%, shifting from absolute control to relative control. But at that time, Pine Media should already be a publicly traded company with robust assets and a strong background.
"Should I feel happy about this" Su Cen thought with some helplessness; he had no choice but to rely on Wang Bo to clear the path for political connections in order to gain development. However, once they gained the corresponding political influence, there would be no turning back.
This is how life can sometimes be like a game of chess.
Looking at Tan Wen and others who were being surrounded by reporters and now considered industry stars, Su Cen said, "People only envy those they perceive as weaker or similar to themselves. Since Tan Wen wants to create an impression that merely challenging us would cause Pine Media to crumble, we don't mind establishing a powerful image that cannot be shaken."
Tan Wen entered the luxurious lounge of the hotel where someone was already waiting for him, handling a long-necked porcelain antique from the Song Dynasty. Tan Wen laughed and said as he sat down, "Vice Mayor Sun just went out to say something; I haven't had time to inform you yet. After this meeting ends, Vice Mayor Sun and I will take care of your arrangements and won’t be able to properly socialize with both of you today. By the way, what do you think about this Northern Song Dynasty Jun Kiln long-necked bottle If Vice Mayor Sun likes it too, I have two more pieces at home which I'll personally deliver to you another day."
Zhan Hua smiled and replied, "You're very thoughtful. Judging from Tan's brother’s current momentum today, Lianshang Culture might become the top distributor in Shanghai next year. It seems that I need to congratulate you ahead of time."
"There's still a long way to go," said Tan Wen honestly, "While this book fair in Beijing, Shanghai, and Guangzhou says it’s about strengthening cooperation and exchange, everyone knows today's main focus is on the involvement of an enterprise with top-tier channel advantages entering the journal market partner competition. This company has a network covering 28 provinces and cities, with robust logistics and distribution centers capable of reaching county-level sales outlets. Its strategic channels and growth methods are considered domestic textbook cases. When this company suddenly enters the journal market, the entire Beijing-Shanghai-Guangzhou book and journal market is agitated; every distributor is fighting for cooperation opportunities. In industry terms, it's like directly connecting to a highway."
"You must be confident about your approach," said Zhan Hua.
"I wouldn't say I'm fully confident, but I've put in more effort and care than others," Tan Wen explained, "Our public relations department has made multiple contacts with the other side and is not without achievements. As long as we can integrate our channels with theirs, within a year there will be no distributor in Shanghai who could even come close to us."
Zhan Hua nodded; before him was Tan Wen, an individual with meticulous thinking and equally precise methods, as well as strong self-confidence. It’s no wonder he was personally dispatched by the Gao family faction's influential leader to open up a new media landscape in Shanghai. With his capabilities, it won't take five years for him to bring about a complete transformation of Shanghai's media market.
"By the way, I saw Lin Guangdong today. The young man next to him is the Su Cen you mentioned Someone from Beijing told me about him and you personally recommended him to me as well; he seems very interesting. I hope that when Pine Media is squeezed out of Shanghai's media industry in the future, his expression won't be too disappointing."
Zhan Hua frowned, feeling that Tan Wen's words were too definitive and somewhat overconfident. He still reminded him, "Behind Pineapple Media is Big Pineapple Holdings; even if the media distribution business faces setbacks, it won't be a fatal blow to them. However, weakening their political backing through Pineapple Media and preventing them from operating freely might be possible. But Lin Guangdong usually acts alone, and now that Su Cen appears here, I can't feel at ease."
When Tan Wen left the room, he glanced at Zhan Hua and shrugged, clearly not agreeing with Zhan Hua's reminder. He thought it was too cautious for a master capital manipulator like Zhan Hua to be so hesitant about a young man who showed some business talent.
In the conference hall of book distribution in Beijing, Shanghai, and Guangzhou, the deputy mayor briefly mentioned the central government’s macro-control policies on the media industry and future outlook before handing over control to the news departments of several major media groups. They generally discussed the development trends of the three markets and various summaries followed the process step by step. At this point, the distribution sides started becoming restless, with people whispering among themselves.
The host finally announced the next agenda, "Now please welcome Zhao Mingnong, chairman of Shushan Cultural Stationery Co., Ltd!"
At this moment, the audience below perked up and looked toward the stage. Shushan Cultural Stationery Company, currently China's top brand in stationery products, would not have been well-known even two or three years ago, but it quickly rose to prominence within just a few short years, becoming an unexpected黑馬in the domestic stationery industry.
The renowned management guru Hermann Simon of Europe has a theory about invisible champions.
He believes that apart from well-known large companies like Coca-Cola, Procter & Gamble, Microsoft, and GE, there are many excellent enterprises that quietly operate in niche markets. These firms often control over 50% of their respective market segments and excel in business acumen, product technology, and innovation, sometimes even surpassing Fortune 500 companies.
Shushan Cultural Stationery is such an invisible champion company emerging rapidly in China.
From a revenue of several million at its inception to over six million sales by the year 2000, and now with four billion yuan in sales this year, Shushan has surpassed all domestic stationery manufacturers.
If we continue like this for another five years, relying on its strong channel-driven business model, revenue is likely to grow five to six times, reaching over twenty or thirty billion yuan. They will firmly control more than ten percent of the market share within their industry.
Zhao Mingnong said from the stage, "Today I'm honored to be here, representing myself and Shushan Cultural Stationery Co., Ltd., as we start our venture into this industry. From a traditional Chinese perspective, everyone here is my senior."
This statement elicited laughter.
Companies with clout naturally want to partner with channel-savvy Shushan, while those without such power could only watch and speculate about the changes brought by Shushan's entry and how they can thrive under this new situation.
Zhao Mingnong mentioned some prospects for development and then addressed everyone again, "After preliminary negotiations, investigations, and research, our main partners have been established. We are cooperating with Pineapple Media Cultural Communication Co., Ltd to form the Shangdao Hezong Distribution Company Limited. Additionally, we will open up our platform to welcome more capable businesses to join us in channel integration."
From this point on, Zhao Mingnong's words were unimportant; it was like a bomb had been dropped as everyone got agitated.
The crowd erupted into commotion.
A CEO from a Guangzhou book sales company said, "Shushan alone has over four to five thousand chain stores and cooperation points with large supermarkets in Shanghai and surrounding counties. This is already enough to make it the channel king of Shanghai; as for Pineapple Media, which company are they that can enjoy such extensive distribution resources"
Another manager familiar with the Shanghai market said, "It's not just about Shanghai; Shushan has over 40,000 outlets across twenty-eight provinces and cities nationwide. Their detailed three-tier delivery mechanism down to counties and towns means they are no longer confined to Shanghai or Beijing-Shanghai-Guangzhou but have almost reached a national distribution network."
"If the newly established Shang Dao Coalition can fully transfer these resources to distribution, there won't be a single distributor in the country that could compete with their distribution channels. Bookstores aren’t common and maintaining them is relatively expensive, but Wenshan’s stationery stores can spread everywhere."
"In this way, the newly established Shang Dao Coalition would be able to stand out among all others; even Shanghai's top four distributors wouldn't be a match for them."
Tan Wen looked呆滯地看著台上的趙明農，一向以嚴謹、周密著稱的他發現自己竟然渾身冰冷，不敢相信蜀山這麼快就能決定合作夥伴。據他的資料，對方恐怕還要用一到兩個星期的時間進行考察。這才意識到自己犯了很嚴重的錯誤，但錯誤就是錯誤。
他下意識地朝詹化的方向看了一眼，發現詹化已經起身，對他搖了搖頭，轉身離開了會場。這個背影似乎意味著大勢已去。
Zhao Mingnong suddenly became the focus of everyone in the room. The media journalists who had just ended their coverage with the Commercial Association immediately swarmed around Zhao Mingnong from Shu Shan Cultural and Stationery Products, with a manager accompanying him blocking the enthusiastic reporters.
Lin Guangdong was then continuously approached by people congratulating him. He believed that many more were hoping to find out about the operational strategy of the newly established Shang Dao Coalition, as well as its distribution plans for next year, and whether they would venture into broader media fields apart from publishing.
Lin Guangdong gestured for some directors from Pineapple Media to help divert the crowd. He whispered to Su Can, "Zhao Ming's reputation is too high; there’s no way around it. In this era where distribution channels are everything, who could not be awed by someone setting up four thousand sales terminals in just a few years and achieving nationwide delivery speed"
Just as they were talking, the owners of the two Mercedes S400s that had bumped their car when parking arrived. Zhao Wei from Shanghai New Eastern Distributor Company and his companions stood hesitantly on the periphery, unsure what to do.
Seeing Lin Guangdong and Su Can look in their direction, Zhao Wei strode over confidently. The beautiful woman beside him no longer looked down at them but smiled warmly like everyone else, leading her group forward.
No one dared treat them as insignificant any longer.
Su Can, however, felt like turning and walking away. He disliked hiding behind a mask more and more and found himself too lazy even to give an insincere smile. People often say that businessmen are smooth and worldly-wise, smiling even after being slapped. Su Can thought this was nonsense; he didn't want to live such a humble life just for survival. Why not choose a freer lifestyle instead After all, he had been reborn.
"Director Lin, congratulations! I was wondering who would secure the partnership with Shu Shan first—I never expected it to be your company. Your Shang Dao Coalition wasn’t still looking for partners Then surely my side must qualify."
Lin Guangdong glanced at Su Can and then stared indifferently and absentmindedly at Zhao Wei, who was full of enthusiasm in front of him until the man’s skin went cold, his hand frozen mid-air. The smile on Zhao Wei's face, whose girlfriend is a host, froze stiff.
Lin Guangdong's cold voice rang out next: "Who are you"
Outside the hotel amidst all the commotion, Su Can took in fresh air and thought back to when he had first come tremblingly to Shanghai as a freshman. At that time, Pineapple Media was just transitioning from direct magazine investment and testing waters here.
Their initial channel visits were bumpy, as if they were alone against the entire city. Now, however, Pineapple Media had made significant progress and development; it seemed like two years ago everything and everyone had changed.
Just then, Su Can’s phone rang with a text from Lin Luoran: "I’m almost done with my final paper. The reference books you promised to order for me—when will they arrive You’re not being sincere. like Lin Luoran's delicate fish rolls or lion heads. It felt a bit embarrassing to have a simple tomato and egg stir-fry compared against such exquisite dishes. Even Li Pengyu found it hard to say an...