CHAPTER 316: CHAPTER 316: TOP-TIER COMPANIES SELL THEIR BUILDINGS

For a long time, caviar has been coveted by Western gourmets as a top ingredient.

In many films, characters are depicted eating caviar lavishly to showcase their wealth.

The most famous line comes from Andy Lau in a movie: "Just this little bit isn’t enough. If foreigners see it, they’ll think we can’t afford it. Let’s have everyone get a can!"

The core reason why caviar is so sought after is that sturgeons producing caviar have long been unable to be farmed on a large scale.

Wild sturgeons are only found in Iran and Russia. And as caviar became esteemed by European gourmets, the wild sturgeon populations in these areas decreased significantly, further raising the rarity of caviar.

Then, Huaxia stepped in and directly solved the sturgeon farming problem.

By 2014, Huaxia’s caviar production suddenly soared to 70% of the world’s total, turning caviar into a cabbage-price item.

This event led a media outlet in the United States to write an article saying that Huaxia’s mass production of caviar turned it from a luxury item into a cheap snack.

And the Qiandao Lake caviar production base in Lin’an City transformed into the largest caviar production base in the world.

The global annual caviar production is only about 200 tons, while Qiandao Lake alone produces 80 tons.

"So, the very important export product you’re talking about is Qiandao Lake’s caviar?"

Chen Yiyang, having listened to Yang Chengru’s long introduction to the history of caviar, asked, "I’m not familiar with fish farming either. Are you looking for my help to solve some trouble for Qiandao Lake Caviar?"

"To be honest, it’s quite inexplicable."

Yang Chengru said, "Our caviar from Qiandao Lake in Lin’an, the farmed sturgeon and the taste of caviar compared to the wild sturgeon from Russia, Iran, is indistinguishable.

But recently, a group of French chefs started hyping, saying that our caviar has a cheap taste and is not suitable as a high-end banquet ingredient.

Originally, our caviar was also sold at the same high prices as other caviars. But now, due to their hype, many buyers are either asking us to lower prices or demanding refunds."

Chen Yiyang understood Yang Chengru’s concern.

That is, Qiandao Lake caviar in Lin’an City is primarily exported at high prices.

After all, even though caviar is a well-known high-end ingredient, it doesn’t garner much appreciation domestically; it’s primarily exported to Europe and America.

And France is not only the center of Europe but also the center of global luxury and high-end cuisine.

The globally renowned restaurant rating system Michelin originates from France.

Now French chefs collectively began to hype the cheapness of Qiandao Lake caviar.

If such comments are accepted by high-end restaurants worldwide, then Qiandao Lake caviar will have no chance of being sold at high prices anymore.

It would indeed have to be sold at cabbage prices.

"Do those chefs commenting on Qiandao Lake caviar have significant influence?" Chen Yiyang inquired.

"These chefs are all from the French International Cuisine Association, which has a history dating back to 1248 and has significant influence globally, with over 25,000 professional and non-professional members in the entire association.

Although currently, the number of chefs promoting the cheapness of Qiandao Lake caviar is only about a dozen.

But if the situation continues unchecked, once a consensus is reached within the International Cuisine Association, it would be very difficult for Qiandao Lake caviar to turn things around."

Chen Yiyang understood Yang Chengru’s concerns.

Caviar pricing is very much inflated.

If everyone believes your product is high-end, then selling one piece for dozens of US Dollars wouldn’t raise an eyebrow.

After all, the more high-end, the more priceless.

The wealthy enjoying these gourmet foods do not mind how expensive your stuff is; they care more about reputation.

But if everyone believes it to be a cheap product.

Then selling one or two pieces for dozens of dollars would be pressed down in price.

For Qiandao Lake caviar producers, selling one for dozens of dollars versus selling one or two for that price makes a huge difference in profit.

"Honestly, I don’t have much connections in France." After listening to the difficulties from Yang Chengru, Chen Yiyang could only speak frankly.

The only connection he had with France was purchasing modeling materials of Paris Goddess Temple, almost resulting in a conflict with the French Embassy personnel.

"No connection is fine, then." Yang Chengru misunderstood Chen Yiyang’s meaning.

He thought Chen Yiyang was planning to heed his former advice, intentionally keeping a low profile to avoid being assigned more tasks later.

"However." Chen Yiyang thought about it, then asked, "Lin’an City wouldn’t just assign me a task without offering benefits, right? If I can solve this crisis, what will I receive?"

"Money, definitely not." Yang Chengru said, "But an incentive policy can be offered. The idea from above is, if you can resolve Qiandao Lake caviar’s brand crisis this time, the city is willing to grant you land for building a company headquarters, no smaller than the Ali Group’s headquarters."

The Ali Group headquarters occupies about 400 acres, with a building area close to one million square meters.

If simply buying it with money, a billion yuan might not be enough.

But each region generally has incentive policies for such super-large enterprises; as long as you’re willing to pay significant taxes annually, the local government might grant the land cheaply or even for free.

Currently, Chen Yiyang’s Yiyang Automobile and some of his other enterprises in Lin’an are utilizing rented office buildings.

Although there are currently only one or two thousand employees.

But as future development continues, renting office space costs monthly will surely exceed the cost of constructing a headquarters building.

Moreover, rented office buildings ultimately aren’t yours. If the company faces operational difficulties someday, it might have to move out embarrassingly.

If a building is built independently, even if facing hardships, it can be sold to obtain cash.

As the saying goes, top enterprises sell buildings, second-tier enterprises set standards, third-tier enterprises make satellites.

Many top large enterprises, painstakingly operated for a whole year, find their annual report showing a negative profit.

But don’t rush, selling any owned building; this year’s profit instantly overshadows all peers.

The sincerity from Lin’an City Government is quite abundant.

Just in time, Chen Yiyang’s companies are numerous and varied, and having a building to consolidate them would facilitate management and reduce costs.

Chen Yiyang was somewhat enticed.

Seeing Chen Yiyang’s interest, Yang Chengru reminded, "With me around, the city’s promise is absolutely valid and effective. But this matter must be carried out properly."

"Alright, I’ll give it a try first." Chen Yiyang said, "Recently, there’s nothing much else going on, so I’ll take a trip to France and see the situation."