Xue Zhebin nodded in agreement: “Looking at it this way, hiring Lin Jiaqiang as a spokesperson was a huge win!”
“The promotional video at the launch event was excellent. That somewhat absurdist humorous style allowed Lin Jiaqiang’s acting skills to shine, leaving a deep impression.”
“And Lin Jiaqiang’s personal experience after the product launch has dispelled doubts for even more people.”
“Most importantly, Lin Jiaqiang’s commercial cooperation fee is very low, but his recognition isn’t low at all. Every penny was spent effectively—what exceptional value!”
“I was previously quite pleased with my own marketing activities, but compared to Mr. Pei, I’m far behind!”
Li Shi smiled: “That’s normal. Anyone who has dealt with Mr. Pei would have similar thoughts.”
“Mr. Pei is just like that—one link connected to another. Every choice that seems ordinary to you might actually be connected to a series of follow-up moves!”
“If they had invited Lu Zhiyao or Zhang Zuting, they certainly could have secured them, but their physiques are too good. Endorsing this product wouldn’t have been convincing at all. People would think their physiques were developed in gyms, having nothing to do with the Smart Fitness Clothes Rack.”
“But Lin Jiaqiang himself had fitness needs, and Mr. Pei was particularly confident in his product, which is why the weight loss results were so significant!”
“I have to say, this product that sounds so bizarre and outlandish has once again subverted my understanding.”
“Sometimes I wonder, how can Mr. Pei be so young yet have such an endless stream of ideas and wisdom? I can only say that there are indeed geniuses in this world…”
Everyone reviewed the series of brilliant maneuvers from the promotion to the launch of the Smart Fitness Clothes Rack while marveling at Mr. Pei’s foresight.
As they chatted, Yao Bo suddenly remembered something.
“By the way, have you heard this news, Mr. Li?”
“Tenda’s first experience store will be located in Golden Success Plaza.”
Li Shi was stunned for a moment: “Golden Success Plaza? Isn’t that the mall where you have shares?”
Golden Success Plaza and Golden Peak Group had similar names, and they were indeed related. Golden Peak Group had some investments in Jingzhou, and Golden Success Plaza happened to be one of them.
However, Golden Peak Group was just one of the shareholders behind Golden Success Plaza. Although they had some say, they didn’t have absolute control and generally didn’t interfere with the mall’s daily operations.
So Yao Bo hadn’t immediately known about this.
Yao Bo said: “I only found out about this recently. Tenda seems to have been quite discreet this time, and the mall has also done some confidentiality work. They might only start promoting it extensively after some time.”
Li Shi perked up: “Thank you! This information is crucial for me!”
“I’ll go buy a few more shops and storefronts nearby right away!”
“By the way, did the mall offer Tenda any discounts?”
Yao Bo replied: “Of course they did! I heard they’re offering 60% of the regular rent, with half a year rent-free, and they’ve allocated a total of 7,000 square meters, all rented to Tenda.”
Li Shi nodded approvingly: “Hmm, the discount isn’t that much, but it’s acceptable.”
“Remember, when dealing with Mr. Pei, you must show sufficient sincerity! The greater your sincerity, the greater Mr. Pei’s return!”
“Please tell the mall management to provide more preferential conditions if possible. Don’t be stingy at all. Mr. Pei will definitely repay with ten or even a hundred times the profit.”
Yao Bo hurriedly said: “Alright, I’ll call the mall as soon as I get back and give them a heads-up!”
…
After the dinner ended, Li Shi said goodbye to Yao Bo and Xue Zhebin, then drove for about half an hour to reach a mall.
This was an inconspicuous small mall that didn’t even rank among the notable ones in Jingzhou.
Upon arriving at the mall, Li Shi went directly to the B1 level, where the flagship store of Star Bird Fitness chain was located.
After speaking with the receptionist, a middle-aged man in his forties quickly walked out.
“Mr. Li! Please come in.”
This middle-aged man was Che Rong, the owner of the Star Bird Fitness chain.
Che Rong eagerly led the way, bringing Li Shi to the VIP room inside the gym, personally brewing tea for him.
“Mr. Li, what brings you here today? Next time, please let me know in advance so I can prepare a proper welcome.”
Li Shi smiled: “Mr. Che, no need to be so formal. Today I came on a sudden impulse, remembering something, so I decided to drop by.”
“Regarding that investment you asked for earlier… I’ve thought about it and decided to invest.”
Che Rong’s face immediately lit up with surprise: “Really? Mr. Li, thank you so much!”
Li Shi raised his hand: “Don’t thank me yet. I have conditions.”
Che Rong quickly nodded: “Please go ahead.”
Li Shi took a sip of tea, considering where to begin.
Star Bird Fitness was a local chain of gyms in Jingzhou. Although it had more than a dozen locations, in terms of scale, market share, or reputation, it would struggle to rank in the top ten in Handong Province, let alone nationally, where it wouldn’t rank at all.
In recent years, the fitness industry had been going through extremely difficult times.
The domestic fitness industry began rapidly developing around the year 2000. In 2001, with the successful Olympic bid, the topic of national fitness began to receive attention. Many gym membership cards were hyped up, some even selling for several thousand yuan each.
This boom naturally gave rise to a large number of gyms. Around 2004, there were over 500 gyms in the capital alone, showing remarkable growth.
But with more gyms came fiercer competition. Since the fitness industry suffered from severe homogenization, the only way to attract more customers was by lowering prices, gradually falling into a vicious cycle.
The annual membership for large gyms fell from over 10,000 yuan to around 3,000 yuan, while small clubs’ prices dropped to 700-800 yuan. There seemed to be no bottom limit.
While this allowed customers to go to gyms at more favorable prices, the low profit margins led to a series of problems, such as aggressive sales of personal training sessions and gyms absconding with money.
The gross profit margin of many gyms dropped from 40% all the way to less than 3%. This triggered a wave of bankruptcies in recent years. Just last year, in 2011, more than 40 gyms closed in the capital.
As a second-tier city, Jingzhou had fewer young people than first-tier cities and poorer fitness habits, making the situation even more pessimistic.
To make matters worse, after Tuoguan Fitness gyms opened on a large scale, offering a brand new fitness model, they quickly snatched a large number of customers from traditional gyms.
This made life even harder for small local gyms like Star Bird Fitness in Jingzhou.
Therefore, Star Bird Fitness owner Che Rong had been seeking investments everywhere, hoping to weather this crisis.
Li Shi’s Fuhui Capital was well-known in Jingzhou, and Che Rong had certainly approached him before, but Li Shi had never given him a definite answer.
Because Li Shi was an investor, and investments were about returns.
Star Bird Fitness had nothing special about it, and investing in it might not necessarily be profitable, so why invest?
Originally, Li Shi had planned to refuse Che Rong, but today he suddenly changed his mind.
“I can invest, but I have one condition: all the money I invest must be used to purchase Smart Fitness Clothes Racks to be placed in all Star Bird Fitness locations.”
Che Rong was stunned: “Huh? Mr. Li, what do you mean?”
“I’ve seen that clothes rack thing. Although it’s quite popular now, isn’t it a home fitness equipment?”
“Our gym has professional fitness equipment that’s better than this clothes rack. Why should we replace them?”
Li Shi shook his head: “I can tell you haven’t tried it yourself.”
“The Smart Fitness Clothes Rack is indeed home fitness equipment, and for certain exercises, it’s not as good as professional gym equipment.”
“But it has its own advantages that traditional fitness equipment can’t match! Combining games with equipment makes fitness no longer boring but full of fun, making it easier for people to persist—something traditional fitness equipment can’t achieve!”
“Currently, most gyms are still slow to realize this. This is a very good opportunity for us!”
“Although we can’t copy Tuoguan Fitness’s basic model, we can learn from this new form of fitness with the Smart Fitness Clothes Rack!”