Chapter 132: A New Business Model

The day of the election was drawing ever closer, and competition among the merchant clans of the capital had become fiercely intense. Every few days, one could see a shop on the street change its storefront. Many shops fell and rose again, then fell once more; such occurrences had become so common that the people of the capital were no longer surprised.

Tactics such as slashing prices, artificially inflating costs, buy-one-get-one-free offers, or buy-one-get-two promotions emerged endlessly. Each merchant clan exerted every ounce of effort, all striving to seize the first prize and stand out in this election. Among the official families and merchant clans, Xiao Gong’s merchant clan suddenly emerged as a dark horse. With just one product, “Chew Chicken,” they overwhelmed many competitors, to the point that some of the weaker merchant clans had already begun withdrawing from the race.

One day, Gou Ye responded to Xiao Gong’s invitation and came to the merchant clan’s gathering. Despite countless banquets held in his honor, Gou Ye had only attended once, at the opening, declining all other invitations under the pretext of studying for exams. This time, however, he came because he had conceived some promising business ideas.

Seeing Gou Ye arrive, Xiao Gong squinted his eyes with a smile and said, “Quick, Young Master Gou, please take the seat of honor. Everyone’s been waiting for you. It feels like ages since you last visited. How is life treating you? If there’s anything you need at home or otherwise, don’t hesitate to let the merchant clan know. Although Jia Zhengyi has left, you can always speak to Laifu; he will report your requests to me.”

Gou Ye did not hesitate or deflect, sitting down with ease and chuckling lightly, “Thanks to the care of the merchant clan and Xiao Gong, my expenses and daily life are fully provided for. I lack for nothing.”

“That’s good, that’s good. Lately, the merchant clan has been wholeheartedly promoting the ‘Chew Chicken’ brand you created. Right now, the other merchant clans are anxious but unable to replicate the product. Some have hastily produced similar items and tried to sell them, but their flavor and management cannot compare with ours. Their shops are now nearly empty and won’t last much longer,” Xiao Gong said with a smile, then signaled the attendants to bring out the prepared wine and dishes.

At this moment, Chairman Su Dingfang added, “The influence of ‘Chew Chicken’ has even reached the palace. The official families are aware of our move. I’ve been checking with the old marquis about their reaction, and they view our initiative very favorably. With this, I believe our merchant clan’s chances in the election are almost certain.”

Lu Yuanheng listened to the praise directed at Gou Ye, his eyes narrowing with resentment. Though he remained silent, unable to utter a word, he still looked down on Gou Ye. In his heart, he considered him a rustic bumpkin from the countryside. What troubled him most was that this bumpkin was gradually rising to a position equal to his own—a thought he found utterly intolerable.

Hearing Su Dingfang’s words, Xiao Gong nodded and continued, “Old Su is right, but we must not be complacent. The competition among merchant clans remains fierce. We can’t focus on one area and neglect another. Every sector of business must be well tended. The official families don’t look at things one-dimensionally; what matters most is overall strength.”

“Well then, since Young Master Gou has come today and everyone has worked hard recently, let us raise our glasses and drink together.”

With that, everyone raised their cups and drank deeply. After the wine was finished, Gou Ye suddenly said, “I know everyone is optimistic about the ‘Chew Chicken’ business, but frankly, it’s only one part of the merchant clan’s enterprise, prepared merely for the election. If we want long-term development, and even after winning, make the official families unwilling to concede in future elections, we must establish our own system—a system unprecedented in its scope. Once built, this system will secure the merchant clan’s future, possibly even surpassing the royal merchant families.”

Xiao Gong’s eyes brightened. “Oh? Young Master Gou, please do elaborate. We’re eager to hear.”

“A few days ago at home, I was thinking: although our merchant clan runs many businesses, they’re complex and scattered. Perhaps one shop in the capital is well-known, but in other places, it might be unfamiliar. What we need is that no matter where you go, you think of our shops. I call this concept ‘chain stores.’

“What are chain stores? Like ‘Chew Chicken,’ every shop would have the same decor style, business model, and management. Even the attire of the waitstaff would be uniform. Whether it’s a restaurant, an inn, a hardware store, or a bakery—any business we run can be turned into a chain.

“All these chains would be managed uniformly by the merchant clan, with personnel allocated centrally. Other details—staff promotions, management rules, operational models—can be devised later. Once this model is established, it will create a boundless system, transcending regions. Whether in the capital or other cities, people will recognize our brand because it’s all under one name. It will quickly become deeply ingrained in people’s minds.

“Once the network of chain stores is formed, it will require a massive supply chain delivering materials from the capital to other regions. This opens up another business opportunity: logistics. Logistics means transporting goods from here to there, and from there back here, profiting from the price differences—somewhat like the services of a courier guild, but different. We will establish logistics hubs wherever we have chain stores. Many merchants will choose our logistics stations for their transport needs. We only need to select the right goods to buy cheaply or earn a margin on less desirable items. Essentially, any business a merchant might engage in will fall under this system we put in place…”

Gou Ye spoke for a full hour, leaving many bewildered—not because they didn’t understand him, but because his ideas were so far ahead of their time. Even Xiao Gong was left astonished by the vision before him.