Rebirth of the Industrial Tycoon

  Chapter 528 Consumption Downgrade Theory

"Yamada Denki wants to act as an agent for our beauty equipment?" Li Weidong smiled with interest when he heard the news, and then asked: "What about our other products? Hair dryers, electric irons, etc. Do they want to act as agents? "

   "I didn't talk about other products, it seems that I don't want it." Wang Jiuyang replied.

   "That can't do it!" Li Weidong shook his head, and then said; "I also hope to take this opportunity to enter the Japanese home appliance market! The agency of beauty instrument can't be given alone, it has to be accompanied by other products."

   "Then I directly reply to Yamada Denki?" Wang Jiuyang asked.

   "No, I'd better go there in person. You can reply to Yamada Denki, I will go to Japan to talk to them."

  Li Weidong continued: "Prepare me some promotional materials, product samples, and quotations. I will bring them together."

  A few days later, Li Weidong arrived at the Yamada Denki headquarters in Japan.

  At the beginning, Li Weidong personally came to Yamada Denki to promote sales. At that time, it was Section Chief Kobayashi who was in charge of receiving Li Weidong. It was also Section Chief Kobayashi who rejected Li Weidong and made it clear that Yamada Denki would not sell Chinese brands.

   Now the person in charge of receiving Li Weidong is the head of Xiaolin again.

   "Chairman Kobayashi, we meet again." Li Weidong smiled and said hello.

   "Mr. Li, I haven't seen you for many days, you still have the same style!" Section Chief Kobayashi showed Japanese politeness, very polite, but not enthusiastic.

  After the two exchanged a few words, Section Chief Kobayashi invited Li Weidong into the reception room and introduced Li Weidong to Mr. Kuanye’s special affairs.

  After introducing each other, the negotiation officially started.

   "Mr. Li, Yamada Denki is very interested in your company's beauty equipment, so we hope to obtain the sales agency rights." Mr. Kuwano said.

   "Our Puppy Electric products can be settled in Yamada Denki, I am naturally honored." Li Weidong replied with a smile.

  "But Yamada Denki is also conditional. If your company's products want to enter our Yamada Denki, you need to cooperate with our business strategy. These are some detailed rules, please have a look at Mr. Li."

Mr. Sangye handed a document to Li Weidong and explained: "These are our Yamada Denki's unified requirements for the brands to be stationed. Other home appliance brands that enter Yamada Denki also need to comply with these requirements."

   "I understand!" Li Weidong took the file and looked at it carefully.

  The requirements put forward by Yamada Denki are nothing more than to allow Puppy Electric to give more profit, and these transfers are not for Yamada Denki, but for customers.

  For example, some preferential activities, the product will be reduced in price for promotion, this cost is required to be borne by Puppy Electric.

  This is like the later generations of e-commerce platforms and take-out platforms. When doing activities, merchants are required to participate, and then a bunch of coupons are issued to consumers, and the final part of the discount is borne by the merchant.

  This is equivalent to passing the cost of promotional activities to the merchant, and the platform will not lose a penny, and will make a fortune because of the increase in sales.

  For merchants, those with good cost control and good sales can make money from the activities, which is equivalent to small profits but quick turnover;

  Poor cost control may be a waste of work. After an event, you will not make much money at all, or even lose money. At most, you will make a wave of passenger traffic.

  The same operation used by Yamada Denki. They require that the brand to be stationed must cooperate with Yamada Denki's business strategy. In fact, it is to pass on the cost of various promotional activities to the major brands that have settled in Yamada Denki.

  Yamada Electric is very good at squeezing product suppliers, which Li Weidong has long heard. Moreover, with Yamada Denki's strength, even Japanese home appliance giants such as Panasonic and Sony can only retreat and accept Yamada Denki's conditions.

  Li Weidong was not surprised by Yamada Denki’s request.

  What's more, making profit is nothing more than making a little less money. For Li Weidong, it is completely acceptable.

  As long as the products of Puppy Electric can enter Yamada Denki, and then enter the Japanese market, even if there are more concessions, Li Weidong thinks it is worthwhile.

  The low price is the advantage of China's manufacturing. Compared with the domestic price wars that often go into fractures, what is the profit of Yamada Denki?

  So Li Weidong replied: "Specialist Kuwano, Yamada Denki's requirements, our Puppy Electric is willing to accept."

  Sangye executive nodded in satisfaction. Things went so smoothly, completely beyond his expectation.

If it is replaced by a Japanese company, it is estimated that it will be bargaining according to Yamada Electric's conditions. At that time, there will be a period of wrangling. However, Li Weidong directly agreed, and for Mr. Kuwano, it also saves a lot of time and energy. .

  Li Weidong changed his voice, and then said: "But we also have a request."

   "Mr. Li, please speak." Mr. Sangye said.

"I want to have a deeper cooperation with Yamada Denki." Li Weidong continued; "In addition to producing beauty equipment, we also produce various small household appliances and kitchen appliances, such as hair dryers, electric irons, etc. .

  As far as I know, Yamada Denki also sells these small home appliances, so I hope that our small home appliances can also enter Yamada Denki’s chain stores. "

"No!" Mr. Sangye shook his head without hesitation: "We already have several small home appliance suppliers, and many of them are big brands like Panasonic. Regarding small home appliances, we don’t need to open up new supplies. business."

  Li Weidong showed a calm smile, and then said: “Senior Kuwano, if this is the case, I don’t need to give the sales agency rights of beauty equipment to Yamada Denki.

  Currently, our products are sold well in major drugstores. Kiyoshi Matsumoto’s chain stores are no less than Yamada Denki, and they can also cover the entire Japan. We also don’t need to open up new distributors! "

Hearing this, Mr. Kuanye's eyes showed a ray of anger. In his opinion, even a home appliance giant like Panasonic must compromise when facing Yamada Denki. A small Chinese brand dare to threaten. Yamada Denki!

  Li Weidong said calmly; "Deputy Sangye, don't rush to refuse. Why not, please take a look at the samples we brought, let’s talk slowly."

  Li Weidong said, let his subordinates put the samples they brought in front of Mr. Sangye.

   Officer Sangye patiently looked at the sample, and Li Weidong introduced it next to him.

   "Mr. Li, these products of yours are indeed very good in workmanship, not inferior to Japanese brands." Mr. Sangye commented.

   “It’s true that a few years ago, we took a position as an OEM for Japanese brands. We receive a large number of OEM orders from Japanese companies such as Panasonic and Hitachi every year.” Li Weidong said.

Mr. Sangye nodded: "In the past few years, Japanese companies have invested in many foundries in China and Southeast Asia, and I have also heard about them.

  However, most of these OEM products are exported to other countries. Japan is still mainly made in Japan, and there are not many OEM products abroad. "

   Mr. Kuwano also said the truth. At that time, Japanese companies built factories overseas, and the products they produced were either sold in the local market or put on the third-country market, and rarely sold back to Japan.

  Li Weidong explained: “Although we are an OEM, we produce in full accordance with Japanese requirements. Therefore, the quality of our products can also meet the needs of the Japanese market.”

Mr. Sangye understood that Li Weidong took the initiative to introduce the experience of contract manufacturing to Japanese companies to show that the products of Puppy Electric are not shoddy, but meet Japanese requirements.

  But Mr. Sangye still shook his head: “You are a Chinese brand after all. Even if you can produce products of the same quality, your reputation is far less than that of Japanese brands.

  Mr. Li, you are also in the home appliance industry. You should know that for the home appliance industry, brand is very important. When most customers buy home appliances, the first thing they value is not the performance of the home appliance, but the brand of the home appliance.

  In terms of small home appliances, Yamada Denki already has many well-known brands. Even if you put your products, there will not be very good sales, but it will take up the space of our shop.

  Our Yamada Denki chain stores have opened all over Japan, but apart from those flagship stores, other store spaces are still relatively small. Our store has no extra space for non-hot-selling products. "

  "Mr. Kuwano, I agree with you that when customers choose home appliances, they really value the brand, but there is an indicator that is more important than the brand, and that is the price!"

  Li Weidong said, took out a document and handed it to Mr. Sangye’s chief, and then said: "Mr. Sangye, you might as well take a look at the quotations of our various products!"

  Sangye Specialist took the file, took a closer look at the quotation above, couldn’t help but said, “It’s so cheap!”

  "Price is always the most sensitive factor for consumers! I did research before coming. Our small home appliances are more than one-third cheaper than similar products on the Japanese market." Li Weidong replied.

Mr. Sangye took a deep breath. Of course he knew that consumers are extremely sensitive to commodity prices. As long as the prices are low enough, it doesn't matter if you are a big brand!

  It is human nature to take advantage. Even billionaires are unwilling to spend wrong money when buying things.

  The low price is definitely the killer for selling any product!

  Sangye Specialist can foresee that if there is a product that is one-third lower than the price of similar products on the market, even an obscure brand can have a place in the market.

  Sangye's chief executive looked down and thought for a while, and still shook his head: "Mr. Li, if you sell goods at a price that is one-third lower, it is tantamount to breaking the rules of the market.

  At that time, Yamada Electric will also cause opposition from other suppliers, and these suppliers have long-term cooperation with us. So I’m very sorry, but Yamada Denki cannot sell your products. "

  "Mr. Kuanye, have you ever considered the issue of consumption downgrade." Li Weidong asked with a smile.

   "Consumption downgrade? What is that?" Mr. Sangye asked with an unclear expression on his face.

  Consumption downgrade is a new online word for later generations. Of course, Mr. Sangye has never heard of it.

  Li Weidong explained: “Consumption downgrade is relative to consumption upgrade. Simply put, when consumers buy goods, they will reduce efficiency to a certain extent, reduce experience, reduce personality, and reduce taste.

   is to achieve high quality and low price as possible. In layman's terms, when the difference in product quality is small, the ones that can be sold are cheap, but the ones that can be sold are not expensive.

  For example, I used to exercise in the gym, but later I changed to exercise at home, saving money to go to the gym. This is consumption degradation.

  For example, someone originally planned to go to a western restaurant to eat expensive western-style pasta, but later went to a roadside ramen restaurant to eat cheap miso ramen. This is also a consumption downgrade.

  Consumption degradation will inevitably happen when the economy is down. Recently, Japan's economy has not been very prosperous, right? Japan is currently in a state of consumption degradation. "

  Sangye's brow furrowed, he realized that what Li Weidong said was indeed happening in Japan. Nowadays, the Japanese are reducing their consumption or reducing their consumption requirements because of the economic downturn.

  Western restaurants have a lot fewer customers, and the ramen shops on the roadside have really improved their business.

  Li Weidong went on to say: "Mr. Kuwano, you should also have heard about the economic conditions of Southeast Asian countries? Now the financial crisis has broken out in Southeast Asia and it is difficult to recover in the short term. This will inevitably affect the Japanese economy.

  So for a long time in the future, Japan's economy will be in a recession like it is now, and Japan's consumer market will also be in the process of consumption degradation for a long time.

  In this kind of market environment, if the retail industry wants to survive, it must cater to consumers and sell some cheap goods. If you keep selling expensive goods, in this economic environment, it will inevitably fall into long-term losses.

  I think Mr. Kuwano doesn’t want Yamada Denki to make a long-term loss, right? Choosing our Puppy Electric products is the right way to cater to consumption downgrades and to cater to consumers! "

  Hearing the words "long-term loss", Mr. Sangye was shocked.

  Don't say it is a long-term loss, even if it loses another year next year, the board of directors will fire itself!

  It is still important to keep your position. If you are unemployed, I am afraid you will really have to commit suicide!

  ……

  In the database of "Nanzhou Metropolis Morning Post", Zhao Liang was bored with an old English newspaper and read the news on it.

  The last time he reported on the "Ghost Castle" incident, Zhao Liang was slapped in the face for a while, and his report was also criticized by Focus Talk. This punishment must be indispensable.

  So Zhao Liang was demoted from a frontline reporter to the database and became a data administrator.

  This errand is also leisurely. It is nothing more than filing and archiving the information of the newspaper, which has no technical content.

  Fortunately, there are past newspapers and publications in the newspaper's database. When Zhao Liang is bored, he will take a look at that newspaper or publication to relieve his depressed mood.

  On this day, Zhao Liang took another stack of American newspapers and read it.

  The content of foreign newspapers is naturally much more interesting than domestic newspapers. Even if these newspapers are from 1996, Zhao Liang still reads them with relish.

  Inadvertently, Zhao Liang turned to the sports news section.

"Ten thousand kid? This high school student named Kobe Bryant got ten million dollars in endorsement contract! Americans are really rich. Ten million dollars is enough for me to spend ten lifetimes!" Zhao Liang revealed Envy look.

  But then, the name of Feiyue brand caught Zhao Liang's eyes.

   "FeiYue? Is this Chinese pinyin? Feiyue? Feiyue? There is a rubber shoe in China, isn't it called Feiyue?" Zhao Liang said inwardly.

  Continue to watch this news, and there will be an introduction to the Feiyue brand later.

  "A brand from China with a history of more than 60 years? Is it really the kind of leap rubber shoes from before?"

  Zhao Liang was also idle and bored. He decided to find out. He picked up the phone, found the phone number of Feiyue Factory from the telecommunications bureau, and dialed it through.

   "Hey, hello, I'm a reporter from Nanzhou Metropolis Morning Post! There is something about Feiyue rubber shoes, I want to know about it!"

  Zhao Liang still used the banner of a reporter, and then asked about Feiyue brand.

  The identity of a reporter is indeed very useful. The rubber shoe factory did not conceal it, but the news that the Feiyue brand was sold to Li Weidong was revealed.

After putting down the phone, an expression of excitement appeared on Zhao Liang's face.

   "This Li Weidong is the Li Weidong who Qinghe developed the wholesale mall. You have hurt me miserably! It is so clear that I have finally caught your handle.

  10 million U.S. dollars, to an unknown American high school student, this is a typical waste of foreign exchange! Foreign exchange is so precious that you waste 10 million yuan at once. This time I'm going to make you wander around! "

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  (End of this chapter)