Chapter Sixty-Seven: Unity of Workers and Peasants

Gui A County.

Huakun Supermarket, General Manager’s Office in the Administration Area.

At this moment, Lu Kun’s brows were tightly furrowed.

Inflation is a mixed blessing for the retail industry. However, for Huakun Supermarket right now, it is clearly a significant crisis. It essentially declares that the previously established “store-supports-store” strategy can no longer be fully implemented.

Retail is indeed a sector with strong cash flow, but if a large amount of capital is tied up in stockpiling goods, then the strategy of expanding branches and exploring new markets must be scrapped.

The method discussed by Sun Bowen’s team is feasible to a certain extent, but Lu Kun cannot proceed in that manner.

There are many ways to control costs and ease financial pressure; layoffs are the most pessimistic approach.

Huakun Supermarket currently needs to maintain stability among its employees. If they choose to cut costs by reducing staff or salaries, the company’s morale will inevitably suffer.

The greatest challenge facing Huakun Supermarket is the sharp increase in procurement costs caused by inflation.

To truly resolve this issue, the root cause must be addressed by seeking lower-cost supply channels.

Of course, products produced by various factories are in such high demand that Huakun’s scale alone cannot drive prices down significantly—it’s simply unrealistic.

After pondering for a long time, Lu Kun came up with an idea: seek alternative sources for certain goods in rural areas.

Although the rural market economy is fragile, rural products are far from scarce, especially grains, fruits, vegetables, pork, fish, and shrimp. If Huakun Supermarket can establish direct cooperation with farmers, procurement costs will naturally decrease.

Meanwhile, farmers can earn more and enjoy a better life.

It’s a win-win solution!

Yet, this plan faces considerable resistance, mainly in two areas.

First is the attitude of local township governments—will they support or oppose it?

If farmers’ income increases through such cooperation, the townships may not necessarily be pleased. “No agriculture, no stability” is not just an empty phrase. Should a large number of farmers switch from growing staple crops to more profitable ones, township governments might even pressure Huakun Group.

Second is the enormous burden of logistics costs.

Rural roads are difficult to traverse, especially in the rain, when trucks struggle to get through. Coupled with the fact that farmers’ homes are widely scattered, collecting goods becomes complicated.

But having thought it through, Lu Kun decided to try, no matter how challenging.

To make it happen, he specifically sought out Liu Shixun and asked him to persuade his father, Liu Dexin.

He didn’t ask for much support—just that they didn’t oppose or sabotage the plan.

When convincing Liu Shixun, Lu Kun cited the example of the Li Qingquan family.

Li Qingquan’s household has two or three acres of land; if half is used for cash crops and Huakun Supermarket guarantees the purchase, their lives would improve considerably.

After Lu Kun’s persuasive talk, Liu Shixun promised, pounding his chest, that he could convince his father.

Of course, Lu Kun couldn’t rely solely on Liu Shixun. The PR department’s “sugar-coated artillery” followed closely behind him...

To reduce Huakun Supermarket’s logistics costs, Lu Kun outsourced all original logistics operations between Gui A County, H County, and Baolin County. The former logistics system was reassigned to the township level, and a new rural logistics network was built for Huakun Group.

Once he proposed the plan, Lu Kun resumed his hands-off management style, leaving the improvements and preparations to his subordinates.

Huakun Supermarket is still highly profitable. Despite stockpiling considerable inventory, cash flow remains healthy, and the agenda now includes expanding into Fengyang City and opening new branches.

...

“Hm?”

Lu Kun was somewhat surprised at the visitor’s arrival.

After all, it was Sun Chengze’s first time visiting Lu Kun’s home alone.

“Sit down. Help yourself to a drink,” Lu Kun raised his brows and spoke calmly.

“Mr. Lu, I heard you’ve started a joint venture between industry and agriculture?” Sun Chengze’s words were phrased as a question but carried a tone of certainty.

Lu Kun was not surprised that Sun Chengze knew about it. After all, Liu Shixun was always hovering around him and could easily let slip such news.

“I just want to run a pilot, help the farmers. Of course, finding more supply channels for my business is also true,” Lu Kun replied with a smile.

Sun Chengze frowned slightly and was silent for a while before speaking, “If you encounter any difficulties and need help, perhaps I can assist to some extent.”

Lu Kun was a little taken aback, not expecting Sun Chengze to visit for this reason.

To be honest, Lu Kun was tempted.

Especially considering Sun Chengze’s grandfather—though he holds an idle post, his influence is considerable.

It’s said that even now, the old gentleman can strike up a conversation with senior provincial officials.

Huakun Supermarket doesn’t require connections of that magnitude yet, but in the future, that relationship could be invaluable, shielding Huakun Group from a host of sharks.

“Heh,” Lu Kun’s face broke into a kindly smile, startling Sun Chengze, who feared Lu Kun was up to some mischief.

If Lu Kun knew what Sun Chengze was thinking, he’d probably be so furious as to spit blood.

“There’s no need at the moment. If I really used your grandfather’s connections, it would be like using a cannon to shoot a mosquito,” Lu Kun smiled.

“All right then.” Sun Chengze nodded awkwardly.

“I heard from Liu Shixun that you plan to apply to Capital Normal University?” Lu Kun searched for a topic.

“No, that was before,” Sun Chengze shook his head.

“Oh?” Lu Kun was surprised.

He’d heard Liu Shixun boasting that his cousin would apply to Capital Normal University and, after graduation, teach in rural areas.

“Have you got a new plan?” Lu Kun asked quietly.

In Lu Kun’s opinion, Sun Chengze volunteering to teach in the mountains was rather unrealistic.

The boy had grown up in luxury, was the only son, and whether he entered politics or inherited the family business, his prospects were limitless.

Teaching in the mountains would only let his talent go to waste.

“I now want to apply for a management major at Renmin University, hoping to manage the family business well and also provide what help I can to disadvantaged groups in the future.”

Sun Chengze pursed his lips and spoke earnestly.

“Why not apply to Shuimu University?” Lu Kun was puzzled.

Given Sun Chengze’s academic record and family connections, securing a place at Shuimu University shouldn’t be difficult.

“Hm?” Sun Chengze looked confused. “Isn’t Renmin University the top university in China?”

Lu Kun: “...”

He’d forgotten that, at this time, Renmin University was indeed more famous among the public.