Reborn in 08, a heretical cultivator starting a business

Chapter 95 WeChat Farm Launched (Please Read On)

A group-buying platform that covers one city and nine schools can't be valued highly.

Even with coverage of 20 universities, the valuation won't be high.

However, if by the end of the year, YouTuan Group Buying has expanded to ten second-tier cities and more than 200 universities, with daily revenue of tens of millions, then its valuation will be high!

If by next year, it has expanded to hundreds of second- and third-tier cities, two or three thousand universities, and daily revenue of tens of millions, then the valuation will be even higher!
With the added revenue from U-Tuan International, going public the year after next should not be a problem!
Of course, the development process requires continuous spending.

Establishing central warehouses and grid warehouses in those second- and third-tier cities, as well as setting up delivery teams, warehousing teams, operations teams, and so on, all require significant financial investment!

However, YouTuan Technology is not short of money at the moment.

These days, although the growth rate of WeChat users has slowed down, U-Tuan International's daily revenue and profit have both declined.

The sales volume of grey market iPhones has been halved compared to the previous daily sales of 2000 units, but there are still thousands of units sold, and the profit is still more than three million yuan.

In addition to the revenue from other products of YouTuan International, the daily profit is still more than four million even if it is halved.

Over the course of this week, YouTuan Technology's profits have increased from 6000 million to 9000 million!
With such a large sum of money, and other business units having lower expenses, Wang Junshan could easily allocate tens of millions to the YouTuan group buying business unit to expand its territory.

Warehouses were established in early August, and by the end of August, when the new school term began, 20 more schools were added in the two cities, bringing the total number of schools to 30.

Every month going forward, we will expand to one or two new cities, covering 20-50 more universities!

By the end of the year, YouTuan Group Buying's scale will reach a relatively high level, and its valuation will become very attractive.

What to do if winter break is over and campus group buying is suspended?
That's not a problem either.

Community group buying can be piloted in the urban areas of economically developed second-tier cities!

These days, it's very difficult, simply unrealistic, to promote community group buying in fourth- and fifth-tier cities.

However, promoting community group buying is still feasible in the urban areas of economically developed second-tier cities.

Although there aren't many smartphones around right now, quite a few urban households own computers!

Especially in economically developed second-tier cities, 60%-70% of urban households have computers and internet access, so community group buying can be promoted in urban areas.

The only difference is that users used to place orders on their phones in the past, but now they use computers!

There is also hope for urban development in third-tier cities in the next year or two.

As for first-tier cities, forget about them.

Traffic control, license plate restrictions, and strict policy requirements have made delivery a problem.

Wang Junshan wouldn't do something that was both laborious and thankless!
Once community group buying is launched in urban areas of second-tier cities, even the winter vacation will not be a problem. On the contrary, because of the Spring Festival, every household needs to prepare for the New Year and give gifts, which can create a wave of community group buying peaks!
This is the opportunity – the opportunity for community group buying to be launched in second-tier city urban areas!

In the following days, the entire YouTuan group buying business unit began a comprehensive push.

The situation in Binhai City is relatively good; they've only established two grid warehouses and are expanding into the Huangdao and Chengyang markets.

Jeju Island, on the other hand, is starting from scratch.

However, Wang Junshan provided sufficient resources, and progress was relatively smooth.

The central warehouse was chosen to be located in the Shangqiao District Logistics Park, close to the highway and transportation hub.

Other teams are also performing their respective duties.

Developing distributors, recruiting drivers, negotiating on-campus pickup points...

Everything is progressing smoothly.

When universities across the country reopen at the end of the month, with 20 new universities joining and 30 universities launching simultaneously, it's bound to cause a sensation throughout the province!
Wang Junshan was also busy, not only overseeing the closed beta testing of the farm, but also leading the WeChat R&D department to develop new features!

Since the launch of WeChat 1.0, the number of R&D engineers in the WeChat department has not decreased, but has continued to increase, with the team now having three.

Currently, one team is developing the WeChat Moments feature. Another team is developing the voice messaging feature!

The chat function is simple, easy to develop, and has low difficulty.

However, developing the Moments and voice messaging features will be more difficult; even with sufficient manpower, it will still take two to three months.

If a team were to work on it slowly, it would take half a year to develop both of these features.

Wang Junshan simply hired more people, and the two teams worked on the project simultaneously, so that everything could be completed in two or three months.

The third team is the payment team, which is developing WeChat Pay. It will take even longer and won't be launched until next year!
As for features like "People Nearby," WeChat red envelopes, and QR code payments, these are nuclear-level killers, and we can't reveal them now.

Let's talk about it when the time is right.

If this is revealed, WeChat's user base won't grow, and competitors might even copy it, which would be a net loss.

As for the relationship with Tencent, we'll have to sort it out in a few months before we can discuss it further.

Once Tencent offers a sufficiently good price, it will become a shareholder of YouTuan Technology.

If WeChat becomes a major traffic driver for YouTuan Technology, Tencent will be in a dilemma, whether or not to intervene.

However, WeChat's growth rate has slowed down again these days.

At the end of last month, we reached 300 million users and then hit a bottleneck. Now, more than a week later, we have only added 20 users.

Similarly, U-Tuan International's revenue declined again.

In the first week of August, the daily profit had already dropped to 200 million.

Even grey market iPhones are finding it harder to sell.

The entire YouTuan Technology company has hit a bottleneck.

In addition, with U-Tuan Group Buying expanding rapidly and entering the Jeju market, it was burning through cash, which slowed down the growth rate of U-Tuan Technology's cash reserves.

Kaixin.com CEO Chen Ruihao was in high spirits about this:
"Sure enough, without capital investment, WeChat user growth hit a bottleneck, and YouTuan International's traffic and revenue both plummeted."

"Yes, President. Half a month ago, their daily revenue was 20 million, but by the end of last month it had been halved to 10 million, and now it has been halved again, leaving them with only 5 million. Even grey market iPhones can't save them!"

Chen Ruihao laughed heartily: "Haha, YouTuan International lost because it only has about three million WeChat users. Our Kaixin.com has as many as six million users, twice that of WeChat. Once Kaixin Mall is launched, its revenue and profit will also be twice that of YouTuan International. I'm already looking forward to it."

"Don't worry, Chairman, everything is progressing rapidly. Happy Mall will be fully launched around September 10th!"

"So late?" Chen Ruihao frowned. "We need to gather all the company's resources and increase manpower so it can go live by the end of the month!"

"Yes! I've made them work overtime like crazy, and I'm also urging distributors like San Niu to deliver the goods to our Kaixin Mall warehouse as soon as possible!"

"Ah."

Wang Junshan, however, was completely unconcerned about his current predicament.

The reason is simple: WeChat Farm's ten-day closed beta test has ended, and it's about to officially launch!
At 8:8 AM on August 8th, users who were using WeChat received a pop-up notification:
WeChat receives an epic update, version 1.5 is officially launched!

[1. YouTuan.com has been upgraded from being accessed via hyperlinks to being fully integrated within WeChat, eliminating the need for external browsers and providing a comprehensive upgrade in user experience.]

[2. The most fun casual game of the year, "WeChat Farm," is now available, featuring an innovative "stealing crops" gameplay. Lots of fun awaits! Welcome to experience it!]

Upon seeing this news, many users became interested and immediately updated their experience.

At first, I just thought that WeChat Farm had beautiful modeling, pleasing graphics, and innovative gameplay.

You can pick it up and play it, and before you know it, you'll be hooked and addicted!

　Tuesday's data is important, please read it carefully, thank you!

　　
　
(End of this chapter)