Chapter Forty-Seven: A Man’s Determination, A Hero Among Thousands
Gui A County.
Lu Kun’s decision to break into retail as the first major venture of his life was not made lightly. According to the National Bureau of Statistics, China’s GDP in 1988 was 1,690.92 billion yuan, while the total retail sales of consumer goods reached a staggering 810.14 billion yuan—nearly half of the national GDP. Of that, the total for wholesale and retail trade was 600.95 billion yuan, accounting for 35.5 percent of GDP, whereas manufacturing contributed only 70.23 billion yuan, less than twelve percent of the wholesale and retail total.
Meanwhile, the Consumer Price Index for Chinese residents rose by 18 percent that year, while manufacturing’s growth rate was only 8.5 percent. In both scale and speed, retail’s potential outstripped manufacturing by far. This vast pie of retail held promise—if Lu Kun could seize a slice, it would mean another leap in his career.
Moreover, the barriers to starting a factory at this time were overwhelming; clearing all the necessary hurdles would demand immense resources—capital, networks, channels, and an acute grasp of industry trends. These were precisely what Lu Kun currently lacked. Although he had a million yuan on hand—no small sum—it would take at least two hundred thousand just to grease the wheels of bureaucracy and obtain the necessary permits. Purchasing land, building the factory, and bringing in equipment would mean no return on investment for at least a year or two.
That was the best-case scenario. Should he encounter any troublemakers, it would be a nightmare. The Bureau of Industry and Commerce, Tax Bureau, Public Security, Fire and Safety, Environmental Protection, Forestry, Health, Power Supply, and even the Education Bureau—utterly unrelated—could all slap him with hefty fines. Each month, most of the profits would be siphoned off, and whatever remained would be extorted by local thugs who made a habit of squeezing factories.
The more he thought about it, the more his head ached. Lu Kun resolved: until his social network was firmly established, he would keep clear of manufacturing.
As for high-tech or innovative industries, such ambitions were a dead end. Even large and mid-sized state-owned enterprises hesitated, let alone a small fry like Lu Kun. Talent alone was an insurmountable problem. In the interior provinces, no matter how much capital you had, the best graduates from technical schools and universities were already assigned government jobs before they even left campus. Top talent went to government, second-best to large state enterprises, and the rest still found jobs with iron rice bowls.
Private enterprises, even if they offered triple the state salary, could hardly attract true talent. Those who gave up a secure government position for private sector work faced immense pressure from family and friends. Under the triple pressures of policy, talent, and capital, private companies could only struggle for survival, wedged between foreign and state enterprises, seeking any chance for breakthrough.
...
Before the troops set forth, intelligence must come first.
When Stone brought the Six Giants and the rest of the brothers into town, Lu Kun finally felt reassured. He had his eye on a three-story, unfinished building opposite Gui A County’s People’s Square and planned to convert the first floor into a supermarket, the second into a game room, and the third into offices.
Lu Kun intended to seize a bargain.
He had Stone’s men inquire—the building was new, and due to some unknown offense against the local underworld boss, the developer was desperate to sell out and flee. Lu Kun noted the contact number on the sign outside the building and walked away without betraying his interest.
He carefully dressed himself up, then used a public phone to call the number.
“Hello, is this the sales office for Tianyu Commercial Building?”
...
“Yes, I want to buy. Let’s meet and talk—I’ll be at the entrance in half an hour.”
...
After hanging up, Lu Kun waited nearly an hour before hailing a passing taxi. His meticulously planned tardiness had the desired effect.
A slightly overweight middle-aged man, briefcase in hand, paced anxiously at the door, his cigarette burned down to a stub. At this moment, Lu Kun was his lifeline—he could not afford to let him slip away.
When the taxi stopped, Lu Kun paid the fare and got out, followed closely by Stone and the twins. As for why he’d insisted on taking a taxi for such a short distance, it was all about appearances. Negotiating a deal worth hundreds of thousands or even a million—if the other party saw him arrive on foot, wouldn’t that undermine his credibility? They might even think he was toying with them.
“Hello, I was the one who called earlier. Some business matters delayed me, I hope you’ll forgive the wait,” Lu Kun said with a smile, though there was little apology in his tone.
Though his supermarket was less than two hundred square meters, he had to project an air of importance. He was the buyer, and the fat man would have to court him to make the sale.
“Hello, hello, my name is Wang Zihong. Delighted to meet you,” the middle-aged man said, quickly steadying himself and shaking Lu Kun’s hand.
“And your surname, sir?” the man asked, hesitating a moment.
“Lu. Let’s get straight to the point—show me the building and we’ll talk as we go.”
...
Wang Zihong was clearly an old hand at business; he led Lu Kun on a tour, presenting all the building’s documents for inspection.
“Mr. Wang, would it be possible to sell just the first floor?” Lu Kun asked, though he was interested in the whole building—he wasn’t about to let the fat man know that.
“Er... Mr. Lu, you see... the floors are all connected. If you only buy the first floor, the second and third will be hard to sell...” The man’s expression soured; he’d thought that with Lu Kun here to inspect the place, the sale was as good as done.
“I’m afraid you’ll have to excuse me. I’ve invested most of my money in other ventures, so I don’t have enough left to buy this building outright,” Lu Kun replied, shaking his head and lying smoothly.
The man’s eyes lit up, thinking he’d caught Lu Kun’s hidden meaning, and his enthusiasm grew.
“Mr. Lu, meeting you is fate. If you really like this building, I can give you a better price,” he said, pouring Lu Kun a cup of black tea.
“Oh?” Lu Kun leaned forward, feigning interest.
“Six hundred thousand. All three floors, a total of 2,400 square meters—yours in one package!” Wang declared, his face nearly bearing a sticker that read, “Buy it and you’ll profit!”
“Pfft!”
Lu Kun sprayed tea all over the man’s face.
Damn! Does he take me for a fat sheep to be slaughtered? This shabby building went for sixty thousand just two months ago, and now, with the developer about to run off, he dares to ask six hundred thousand.
Wang awkwardly wiped the tea from his face, aware his price was outrageous—but old habits die hard. Opening high is just a prelude to haggling.
“My friend, are you trying to make fun of me?” Lu Kun stood, pretending to leave at once.
“Wait, wait, don’t go! The price is negotiable,” Wang hurriedly said, grabbing Lu Kun’s arm.
Lu Kun let himself be half-convinced to sit back down, his face full of indignation. No wonder this guy had been roughed up so many times yet clung so stubbornly to this building—he was greedy to the core.
“Fifteen thousand. All three floors, I’ll sign the contract right now,” Lu Kun countered, slashing the price mercilessly out of irritation.
Wang was stupefied, his face blank with shock. When he recovered, his mouth twisted and his body trembled with indignation.
That was a ruthless cut!
...
For the next two hours, they sparred back and forth, finally settling on a price of 210,000 for all three floors.
Contract signed, Lu Kun finally breathed a sigh of relief. In 1990, he had secured the first commercial building of his life in the county.
As for Wang, Lu Kun found himself admiring the man’s talent. With such a tenacious, money-grubbing nature, he was sure Wang would do well for himself in the future.