Capital, Earnings & M&A
Zhang Ye of Tsingshan Capital: Consumer Startups Should Not Overly Pursue Profits
Startups must first survive and develop, and only increase profits when the time is ripe. When resources are relatively scarce, profits should appropriately give way to building long-term competitiveness; investments in product R&D, brand building, and channel management may conflict with profits in the short term but achieve win-win in the long run. The markup rate should not be too high; giving benefits to consumers is an eternal truth. The markup rate is always our first concern, but is a higher markup rate always better? The answer is definitely no. Giving benefits to consumers is an eternal truth. 'Water can carry a boat, but also overturn it'...
张野