Godly Tycoon: From a Family Business on the Brink of Bankruptcy!
Chapter 603

WPG: They Understood Each Other Very Well! Reallocation and Repricing!

2,493 words•8 min read•0 views
2mo ago•

Why were infrastructure investments unpopular?

Take a bitter orange grove as an example. Even without building a gigantic glass greenhouse like Five Watches had, simply investing in an ordinary bitter orange grove would still present two major problems.

The first problem was the enormous initial investment!

Land rent, infrastructure, and the purchase of saplings all required substantial capital.

The second problem was the excessively long return cycle!

Even with grafted saplings, it would take three or four years before the bitter oranges bloomed, and they would not enter their peak flowering period until the fifth year.

To truly recoup the investment, at least fifteen years would be needed.

More importantly, setting aside the long time needed to recover the investment, they would still have to depend on the weather for their livelihood. If they encountered extreme weather, the situation would be even worse.

Then there were issues like fluctuations in raw material market prices, difficulties from downstream buyers, and so on.

In short, if someone had the money to invest in building a bitter orange grove, wouldn't it be better to do something else?

Why insist on stepping into this shit pit of infrastructure investment?

In fact, if Five Watches had not suddenly entered the bitter orange sector, with the Ningzhi Ruoxue Essence Cream series driving bitter orange essential oil prices skyward, no one would have invested in bitter orange groves at all.

"Our latest batch of bitter orange aromatherapy candles should go on sale at the end of this month. Before that, we'll hold a distributor discussion meeting," An Wuyang explained.

Chen Hongzhi knowingly asked, "Which distributors will be attending this time?"

An Wuyang knew Chen Hongzhi was asking a question he already knew the answer to, but he did not expose him.

"It includes the five major distributors,

End of Chapter
Novel

Explore the wiki