v3 Chapter 769： Need a bank (1/2)

Seeing the change in Arthur Blank's attitude, Xia Yu immediately realized that he was scared and tended to shrink.

So he immediately adjusted the rhythm, not wanting Arthur Blank to continue to calm down.

He changed the subject and asked knowingly: ”Mr. Blank, I don't know how many shareholders does Home Depot currently have?”

Arthur Blank thought for a while and said, ”A total of one hundred and forty-six including me and Bernie Marcus.”

This kind of equity distribution is extremely rare for a company that has just been established for two years.

Therefore, Xia Yu was surprised and asked doubtfully: ”Why are there so many shareholders?”

Arthur Blank did not say the real reason. After all, the real reason was that no big capital was willing to invest in them, so he went to make small investments everywhere.

He said flatly: ”It was mainly to stabilize the supply chain of Home Depot at the beginning, so these shareholders are basically suppliers and invested a little money to occupy a small part of the equity.”

Xia Yu said with a soft voice, ”It turned out to be a strategic investment. It was a very wise choice in the early stage of the company's development.”

He changed the conversation and said: ”However, there is also a drawback, which will be **** by the supplier and will be affected in the brand selection, which is not good for future competition and external expansion.”

Arthur Blank was a little embarrassed when he heard this. Xia Yu said that he hadn't considered it, but at the time the capital was not enough, and he was counting on the supplier to give them credit, and there was no inventory. As for the customers, Home Depot is very dependent on suppliers, and they are taking good care of them. Even now, they are not yet at the stage of back pressure on suppliers.

But the retail industry is like this. The upstream has the right to speak when the volume is small, but when the volume is large, because of the importance of the market, the right to choose will naturally come in hand, and it is time for the downstream to judge the upstream.

There are not too many cases of later generations of China’s large supermarkets bullying their suppliers, and some suppliers are even dragged down by the supermarkets to bankruptcy.

The topic turned to the Home Depot Company. With its current shareholding structure, in the future operations, if the quality of the supplier’s shareholders is not outstanding, but the shareholders’ relationship affects the Home Depot’s choice, it will definitely cause trouble.

One or two is okay, like now there are more than one hundred supplier shareholders, the probability of problems is too high, this is a big hidden danger.

Moreover, when it comes out of Atlanta and Georgia, the strength of some suppliers may not be able to keep up. If the products are purchased in Atlanta and then shipped to other regions, it will greatly increase logistics and management costs, which is not cost-effective.

The logistics cost of building materials is too high!

Although this is the case, it is absolutely impossible to admit. Arthur Blank said righteously: ”Mr. Xia, we treat every supplier's choice with extremely strict requirements. So far, There have been no problems.”

”And in the future, I believe that we will not affect the company's healthy growth due to personal affair, even if the problem is the minority shareholders!”

Xia Yu smiled, did not hold onto this question anymore, felt that the timing was right, and planned to discuss the topic clearly.

”Mr. Blank, retail companies have a great demand for capital. I have also learned about your company. Your company has more prominent advantages in management, but the drawbacks of capital are also obvious. I can help you with this. Do you think how about it?”

Arthur Blank looked embarrassed and hesitant.

Xia Yu pondered for a moment and asked bluntly: ”Mr. Blank, if there is any difficulty, you may wish to make it clear that any cooperation requires a process of discussion, right?”

Arthur Blank nodded slightly and said, ”Mr. Xia, you are right, but there is another founder of the company. I am not available for the time being. I have to discuss with him before making a decision.”

”But before that, I want to ask you a question.”

Xia Yu leaned forward slightly and said with a please gesture: ”Please speak!”