At this very moment, Zhicheng Building stands tall in the heart of downtown Poole.
Sixty-two-year-old Fadil has just wrapped up the distributor meeting.
Despite feeling utterly exhausted, he knows he must prepare for the evening’s dinner party for distributors at the hotel. He allows himself a brief rest in the office, but he understands that when the timees, he must muster the energy to attend the banquet.
Today, Fadil is feeling somewhat downcast.
In recent years, he has noticed a shift in power dynamics; dealers have be increasingly assertive in their dealings with the group. Previously, the group maintained strict control over the dealers, assessing their performance, pushing them to purchase more goods, and often withholding sales rebates at the end of the year to ensurepliance and productivity.<h3 style="background-color:DodgerBlue">
However, the rise of emerce has significantly eroded this advantage. Traditional brands now struggle against a wave of newpetitors who enter the market daily, touting themselves as alternatives to established names like Maotai or premium teas.
These neers excel in branding and storytelling, often outshining traditionalpanies. They can easily find OEM manufacturers to produce spirits with attractive packaging, marketing them online with discounted prices. For example, a liquor bottle that costs less than five yuan to produce may be sold online for 500 yuan, paired with various promotional offers that ultimately lure customers in.
The breakdown of costs is telling: five yuan for production, ten yuan for advertising and traffic acquisition, and two to three yuan for logistics—making the total cost a mere fraction of the selling price. Selling fifty-one bottles could yield a profit margin of at least thirty yuan per bottle.
The same scenario unfolds in the tea industry.
Fadil offers standard mass-grade Pu’er tea for just 100 yuan per cake, weighing over 300 grams. In contrast, marketing experts often repackage the same quality tea into smaller five-gram portions, crafting borate narratives around them, and selling each for 50 yuan.
Some colleagues, whilecking in storytelling skills, resort to aggressive pricing strategies. They package their offerings in bulk, convincing customers that more is better, often bundling multiple cakes and essories for the same price, while the actual cost remains a fraction of the retail price, generating significant profit margins.
Fadil is well aware of these tactics employed by hispetitors. He knows they are profiting more through these deceptive marketing strategies while simultaneously capturing his target audience. Yet, he cannot bring himself to adopt such lowbrow methods.
These rivals do not possess a true appreciation for tea; they view it merely as a means to make a quick profit. Tomorrow, they could shift their focus to health products, employing the same underhanded tactics to attract consumers.
As Fadil puts it, these individualsck a genuine reverence for tea.
In stark contrast, Fadil has cherished tea throughout his life. Relying on his passion for tea, he has be a well-known and prosperous entrepreneur in hismunity, nurturing a deep affection for the beverage.
For him, the foundation of making money lies in crafting quality tea; only through this pursuit does he find peace of mind in his earnings.
It is precisely this love and respect that has prevented him from seeking shortcuts to instant wealth.<fn81c8> Th?s chapter is updated by f?i?n?d?n?o?v?e?l?</fn81c8>
Meanwhile, those who cut corners may sell tens of thousands of orders daily for their overpriced tea, reaping millions overnight.
At times, watching thesepetitors amass fortunes causes Fadil to question his confidence in the tea industry. He worries that many sectors will inevitably face a scenario where inferior products drive out quality ones.
To avoid being swept away by the tide of mediocrity, he contemtes exiting the market altogether.
However, exiting is not as straightforward as it seems.
Much like a steamed bun shop owner who has worked tirelessly for a year, earning hundreds of thousands, the idea of selling the business for ten times its profit—essentially cashing in on a decade’s worth of ie—remains a distant dream, often unattainable.
Today’s dealer meeting dealt Fadil another significant blow.
The agents are demanding a reduction in purchase discounts, lowering the rate from 50% to 40%. They assert that if the group does not acquiesce, they will cut back on purchases or even halt them altogether.
It’s crucial not to underestimate the impact of this discount change. A product valued at 50 yuan, when discounted to 40 yuan, effectively loses 20 yuan in value.
Normally, Fadil would have reacted angrily to such demands, but today he manages to suppress his frustration, assuring the dealers that he will carefully consider their proposal.
In the privacy of his office, however, he lets loose with his thoughts, grumbling about the dealers who seem to betray their past partnerships. Just then, his son, Ermias, knocks and enters the room.
“Dad, can Ie in?” he asks. After closing the door, he expresses his indignation, “Dad!”