No regrets ninety-two

Chapter 927 Undervalued Market
People are often contradictory. For example, Wu Xiaozheng has been thinking about a question over and over again. Is it a good thing or a bad thing for him to introduce international brands to China in advance?
In fact, even in later generations, this issue is still a controversial issue.

Objectively speaking, the entry of international brands and foreign capital has both advantages and disadvantages for China's development.

The favorable side is mainly manifested in the following aspects.

First, it can alleviate domestic employment contradictions and create a large number of job opportunities for Chinese people.

Second, its advanced production technology can drive China's technological progress.

Third, the development projects and programs brought by foreign investment can promote the rise of domestic emerging industries.

These aspects have been verified in later generations.

The reason why China can become a world power again 30 years later is due to the reform and opening up policy and the introduction of foreign capital.

But the disadvantages are also obvious.

One is that in the process of development, a large amount of money has been taken away by foreign capital, and China will enter the vicious circle of "prosperity but not wealth" for a long time.

There are clear examples of this.

For example, Procter & Gamble entered China in 1988. For a certain period of time, its brands such as "Rejoice", "Head & Shoulders", and "Pantene" once occupied more than 60% of the Chinese shampoo market share.

There are many similar examples.

For quite a long period of time after the reform and opening up, in any industry that has foreign capital entering, it is often the foreign brand that occupies the forefront of the market share, and it still has an absolute advantage.

The second is the huge suppression of local enterprises.

There is no doubt that in this era, foreign brands have an absolute advantage in terms of technology and capital. If most local companies compete with them, it is tantamount to hitting a stone with a pebble.

This will make many local companies lose their living space, and many national brands will disappear.

The third is the destructive consumption or even plunder of China's resources, as well as environmental pollution.

……

Therefore, the issue of whether the entry of foreign capital and international brands is beneficial or harmful has not been determined until 30 years later.

This is a very complicated and profound question, and Wu Xiaozheng is also unable to draw a conclusion.

But he can be sure that China will indeed become stronger 30 years later, so he is still determined to introduce international brands.

For Wu Xiaozheng, even if he is a reborn person, he can't change the general trend of China's development. The only thing he can do is to do a little bit to make his hometown better first.

Therefore, even if he knew that Estee Lauder's idea was not easy to fight, he still had to give it a try.

Soon, he returned to his office, and not long after, Zhuang Ningwen appeared with Wen Boya.

Wen Boya was a little confused at this moment.

He had already guessed that Wu Xiaozheng's position might be a bit high, but he still didn't expect that Wu Xiaozheng was actually the chairman of Grandview Group, that is, the boss in Chinese people's mouth.

This really surprised him.

He never expected that the eloquent young man he saw last time turned out to be Zhengjia's boss.

That's a little too young.

"Mr. Wen Boya, please sit down."

Wu Xiaozheng has already greeted him with a smile.

After exchanging pleasantries for a while, Wu Xiaozheng took the initiative to initiate the topic: "Mr. Wen Boya, what do you think of the Chinese market? What plans does Estée Lauder have in this regard?"

This is exactly what Wen Boya wanted to discuss with Wu Xiaozheng.

Undoubtedly, after the on-the-spot inspection of Grandview Plaza, he immediately made a decision to move in.

Anyway, for Estee Lauder, they already have the idea of ​​entering the Chinese market, and now changing the location of the trial from Shanghai to Changsha is not a big deal at all.

For Estée Lauder, entering Grandview Plaza is nothing more than setting up a counter, and the investment is not large, even if it fails, it can afford it.

However, Wen Boya still cannot see the Chinese market clearly.

In his opinion, in the past few years, China has indeed undergone some changes, but generally speaking, the economy is not developed enough, and the general income of ordinary people is not high. market.

Therefore, he really wanted to have a good discussion with Wu Xiaozheng, a Chinese who can speak well.

"Wu, do you think Estee Lauder will be popular in China?"

He changed to a more euphemistic way of asking.

Wu Xiaozheng immediately replied with a smile: "Based on what you asked, I can be sure that you and Estee Lauder must have underestimated the Chinese market."

Wen Boya asked puzzledly, "How?"

"Look at Procter & Gamble, which is also an American brand. They entered China in 88, and now they are making a lot of money."

Wen Boya immediately retorted: "We are different from Procter & Gamble, we target the high-end market, and even Procter & Gamble, they only put some low-end products in the Chinese market, which shows that the consumption power of the Chinese people is still limited. "

Wu Xiaozheng smiled.

He thought to himself, it seems that Wen Boya has done some research on the Chinese market.

Indeed, as he said, in the past few years, the toiletries that P&G has put into production in China, such as Head & Shoulders, Pantene, Rejoice, Safeguard, etc., are all low-end products of P&G, which are far inferior to the later Sassoon and so on.

What Wen Boya didn't know was that Procter & Gamble 20 years later also paid the price.

Twenty years later, national brands began to rise, and many domestic brands positioned at mid-to-high end came out one after another. In contrast, Procter & Gamble's low-end products such as Head & Shoulders, Pantene, and Rejoice are gradually being hailed as "mother brands" by users. The share is gradually eroded by state-owned brands and other foreign-funded mid-to-high-end brands.

This makes Procter & Gamble, the first foreign capital to enter the Chinese market, to become China's largest daily consumer goods company, and gradually fall from the throne.

This is why Wu Xiaozheng dared to introduce foreign brands.

What are Chinese people best at?
Copycat!

No matter what good things you have, as long as you give the Chinese people a little time, they can copy you, slowly catch up with you, and then overtake you.

Therefore, Wu Xiaozheng can fully conclude that Wen Boya really underestimated the Chinese market.

With China's current development speed, not to mention cosmetics like Estee Lauder, no matter how expensive luxury goods are, more and more people will be able to afford them.

We must know that in 30 years, China will become the world's largest consumer of luxury goods.

But how to tell Wen Boya this truth?

Really hard to explain!

If it is difficult to explain, then do not explain.

Wu Xiaozheng figured it out quickly.

You know, the purpose of his meeting with Wen Boya was not to explain the Chinese market to him, but to draw a knife on Estee Lauder's fat meat and let them save some benefits in Hunan Province.

After thinking about it, Wu Xiaozheng said, "Well, if you don't believe me, why don't we make a bet?"

He started playing tricks.

(End of this chapter)