The decoration costs are in accordance with the extremely high standards set by Li Yan. Glass curtain walls, customized lamps, imported environmentally friendly paints, and specially customized display furniture cost up to 2,500 yuan per square meter. The decoration investment for a single store is 375,000 yuan, and the one-time decoration investment for 20 stores is 7.5 million yuan.
· Equipment investment includes cashier system, monitoring and security, experience station customization, LED display, etc., which is about 150,000 yuan for a single store and 3 million yuan for 20 stores in total.
· Labor costs: Each store is equipped with 1 store manager and 4 store clerks, which does not include the investment in early recruitment and training.
The one-time investment in the first phase of 20 "Star Spaces" alone exceeds 10 million yuan, plus the first installment of rent and deposit, as well as fixed operating costs of nearly 5 million yuan per month, which puts unprecedented pressure on cash flow.
Li Yan’s ambition is fully exposed in this series of breathtaking numbers.
He not only wants to make money with A1, but also relies on it to start a war of occupation for young minds, and use this to complete the thrilling leap of Star Technology from "manufacturing" to "brand".
Sales of one million units per month? That's just the entry standard for whether this storm passes.
Pressure hangs over the headquarters of Star Technology like reality.
But Li Yan's desk was still in order.
Because he still holds two trump cards in his hand.
First, Xingchen S1 and S2, the two "cash cows", are still delivering stable and generous profits with their strong practicality and brand recognition in the vast third- and fourth-tier markets and county and township channels, providing the most solid logistical support for the radical expansion of the front line;
Second, the new factory expansion project in Xin'an Community has entered the final equipment commissioning stage. A new automated production line with a designed monthly production capacity of up to 1.2 million units is about to be put into use, which is enough to support the sales tsunami that A1 may bring.
All links, including products, marketing, channels, and production, were forcibly connected by Li Yan with his vision beyond the times and almost paranoid execution, forming a large, sophisticated business machine full of risks and opportunities.
Today's Star Technology is almost equivalent to Li Yan taking the answers of future generations and plagiarizing them step by step to get out of the siege.
So why not be more radical?
At this moment, every gear of this machine is accelerating crazily, with an indomitable momentum, roaring towards the established goal - to create a youth storm called "Star" that swept the country in the summer of 2008.
However, behind the brilliance is a huge consumption of funds.
Li Yan stood in front of the floor-to-ceiling window of the office, holding in his hand the summary of capital flows that had just been sent by the financial director Aunt Zhang.
In terms of income: Pre-tax profit of more than 85.49 million in April is the basis of all this.
Expenditure (incomplete statistics):
ˆ Jay Chou’s endorsement and related GG production: 10 million yuan.
A1 overall marketing GG expenses (TV, Internet, outdoor): 18 million yuan.
The first batch of 20 "Star Space" directly-operated stores:
The initial one-time investment (decoration, equipment, first-term rental deposit): about 12 million yuan.
Follow-up monthly fixed costs (rent 4.4 million + manpower 480,000): 4.88 million yuan.
Final payment for new plant equipment and related expenses for expansion of production: approximately 5 million yuan.
Other operating, R&D and administrative expenses: approximately 6 million yuan per month.
A rough calculation shows that after paying most of the one-time investment mentioned above, there is not much profit left in April.
The company's operations and subsequent expansion are extremely dependent on the continuous blood transfusion of S1/S2 and the rapid payment collection after A1 is launched.
Cash flow pressure is huge, but it is still within control.
Li Yan's fingertips tapped lightly on the glass, his eyes still sharp and firm.
He knew that this was a huge gamble that he could not turn back.
All investments are for one goal - to make Xingchen A1, a pioneer carrying brand upgrade, channel revolution and rejuvenation strategy, truly create a youth storm sweeping the country.
Out the window, there are the eternal lights of Dongguan, and inside the window, there is a young man using his wisdom and courage to try to leverage the ambition of the entire era.
The market’s fanatical reaction, the shock of peers, and the olive branch of giants are just the most beautiful prelude before this storm comes.
The real test is whether A1 can transform this expectation into real market sales that sweep across all markets after it is officially launched.
At a quarter past six in the morning, before the alarm clock rang, Li Yan woke up naturally.
The faint morning light of Lingnan in May shines through the gaps in the curtains, and the air is filled with a humid, sultry breath of summer.
It took him half a second to break away from the familiar trance and confirm the time and space he was in - 2008, Dongguan, the apartment of his assistant Su Qing.
There was a subtle, deliberately quiet sound outside the living room. It was Su Qing preparing breakfast.
Li Yan rubbed his eyebrows, lifted the quilt and stood up.
The room is simply furnished, with the cleanliness and warmth of a woman living alone.
He put on the sports clothes that were placed on the footrest of the bed - Su Qing had prepared them in advance, and the size was completely suitable.
Pushing open the bedroom door, the warm aroma of millet porridge and the oily aroma of fried eggs floated from the kitchen.
"Are you awake?" Su Qing was wearing a plain apron and was scooping the perfectly fried poached eggs out of the pan. She turned around when she heard the noise, with a happy smile on her face, "Breakfast will be ready soon, do you want to run or eat first?"
"Go for a run first." Li Yan took a deep breath of the aroma of the food and felt that his stomach was aroused, but he still insisted on the habit of exercising.
Without any further words, he put on his sneakers and went out.
The air in the early morning in early summer is quite cool, with a hint of the grassy smell unique to plant transpiration.
Li Yan started jogging along the asphalt road outside the community. Sweat soon soaked the back of his sportswear.
· Beside the road, a breakfast vendor has set up a stove, the fried dough sticks are swelling into a golden color in the rolling oil pan, and the rice roll steamer is steaming.
Several old men who got up early to walk their dogs cast friendly glances at him. They may not know who this young man is who has been running in the morning every day, but they are already familiar with him.
This kind of ordinary life full of fireworks is the connection point between Li Yan and his past life memories that he deliberately retained.
He slowed down and stopped in front of the soy milk stall he frequented.
“Young man, are you still the same as before? A cup of soy milk. Today’s fried dough sticks are just fried and very crispy!” The soy milk seller’s face was full of smiles and she greeted him in Mandarin with a strong Cantonese accent.
"Okay, grandma, here are two."
Li Yan wiped his sweat and took out the change from his sweatpants pocket.
This kind of instant gratification and warm taste cannot be replaced by sitting in a five-star hotel restaurant and enjoying an exquisite breakfast.
Back to Su Qing's apartment with a simple breakfast, she had packed everything up and put on a decent professional suit. Light makeup outlined her delicate and capable temperament.
The breakfast left for him on the dining table was still steaming.
"Let's take a shower first. After eating, we should set off soon." Su Qing took the fried dough sticks from his hand and put them back in the oven to heat them up to restore their crispness.