Zhang Xiaoquan sells knives and cuts, and has an annual income of 760 million yuan. Is it a good business for selling knives?

It may be because I rarely get kitchen, and I know very little about knife cutting brands.

Due to Zhang Xiaoquan's kitchen knife patting the garlic fracture incident, I have often brushed several powerful knife cut brands in China in recent days, including: Wang Mazi, Eighteen Zisi, Zhang Xiaoquan, etc.

Among these knife cutting brands, the biggest to do the most. Because it is the only listed company in the field of domestic knife cutting, its revenue reached 760 million yuan in 2021, and its net profit reached 78.738 million yuan, with a net interest rate of 10.36%.

So the question is, is it a good business for selling knives?

If you want to know if it is a good business, we must first define what good business is?

Some people may say that what can make money is good business, and some people say that high -gross profit business is a good business, and some people say that a large sales business is a good business.

In fact, the above claims are not right. From the current thinking, whether a business is a good business, it only needs to meet a condition, that is, capital grabbing.

How can we be able to grab capital? At least 3 standards:

First, the market is big enough! What kind of market can the market be big enough? The annual consumption is at least 100 billion yuan, preferably a trillion -level market. For example: real estate, smart machines, new energy vehicles, fresh food, etc.

After realizing the freedom of wealth, Lei Jun made two more investments. The first time he chose to create Xiaomi mobile phones. At that time, the demand for mobile phones in China at that time was more than 200 million units, and the average price of each mobile phone was 2,000 yuan. Then the Chinese market alone had a scale of 400 billion yuan. If plus overseas markets, the trillion markets are certain.

Today, the domestic mobile phone market is unlimited, and the replacement time of mobile phones is constantly growing, and Lei Jun has decided to enter the field of new energy vehicles. The main reason is that the market is large enough.

The annual domestic car purchase volume is about 20 million, and environmental protection is the mainstream trend. Assuming that all of them buy new energy vehicles in the future, the average price of each vehicle is about 200,000, then there will be 4 trillion markets in the automotive field.

Lei Jun himself is also an investor. He knows what areas of capital like. He also said in public many times that entrepreneurs need to choose areas with large market space.

For a 10 trillion market, even if we only get 5%of the market share, it is the scale of 50 billion in revenue, which is also very good. For a 10 billion market, even if you get 100%of the market, it is only a revenue scale of 1 billion yuan. What's more, we cannot have a 100%market share.

Perhaps entrepreneurs don't understand here why capital likes to give the enterprise in the air outlet billions of billions. They only need to raise 10 million yuan. Why is it so hard?

The reason is that we do not understand the investment logic of these top investment institutions. Because the investment institutions invest in an ordinary enterprise and the airport enterprise, the return is about the same, but the return is far from the return.

On the other hand, the market space is about 10 billion yuan. After all, the market leader Zhang Xiaoquan is only 760 million yuan in revenue. Such a market scale cannot completely cause capital interest because there is no room for imagination.

Second, just need. Just need to be an important reference for capital participation, because just needing it means that the market must exist, it is just a question of which brand consumers choose.

Why can domestic housing prices increase for decades in a row? The main reason is that many people are eager to own a house after they come to the city.

The knife scissors are just needed for almost all families, because we need a knife to cut vegetables and cut the meat, and we also need to cut something. Therefore, this condition requires this condition.

Third, the high -recovery rate. If the price of the product is not high, the repurchase rate is high. This is also the reason why capital is invested in the field of freshness. Most families cost only dozens of yuan a day, but we need to buy every day. Such a high repurchase rate makes the capital feel very excited.

The most embarrassing in the field of cutting is the problem of the repurchase rate, because the quality of the knife cutting field is quality. If the knife cut is often bad, it will not only damage the brand, but also break the back road. If the knife cut is not bad for more than 10 years, it will be difficult for the company to sell new products.

In summary, the field of cutting and cutting is a market that is just needed, but a non -high repurchase rate, and lacks of imagination, so capital is not keen on it.

Taking Zhang Xiaoquan as an example, as of March 31, 2022, only one of the top ten shareholders of Zhang Xiaoquan appeared in the name of one fund, and the rest was all personal shareholders.

This is not a good business if you look at the cutting industry from the perspective of capital. If we want to quickly occupy the market with the promotion of capital, then at least one market space is sufficiently large, with industries with high demand attributes and high repurchase rates.

This is the best era and the worst era. With capital thinking and innovation models, the world is your stage!

In the new business world, there are no eliminated industries. Only the eliminated products and outdated business models will focus on product innovation and model innovation in the future.

If a company or a boss, if the shortage of innovation ability is destined to be defeated in advance, please remember that there is no innovation, how can you have imagination!

- END -