Rebirth of the Industrial Tycoon

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In a shopping mall, a young man walked to the razor counter.

He subconsciously touched his belt, where he had saved three months of salary, and the guy planned to use the money to buy himself an electric shaver.

The young guy looks like he is in his early twenties. He is probably at the age when he should be looking for a partner. He needs to pay attention to his image, so he plans to buy an electric shaver.

Seeing a customer coming, a female salesperson in her forties immediately greeted her.

"Young man, I'm going to buy a razor!" The salesman pointed to the counter and said, "This side is domestic, and there is imported. Domestically produced ones are cheaper, while imported ones are more expensive."

The young man glanced at the counter of domestic shavers. There are two main products, one is a domestic reciprocating shaver, and the other is a domestic rotary shaver.

The domestic reciprocating shaver has not produced a very good product even after 20 years, and it was even worse in the 1990s.

Whether it is a blade or a high-speed motor, the domestic reciprocating shaver is a lot worse than Braun and Panasonic. Buying a domestic reciprocating shaver is better than getting an electric clipper for haircuts.

The domestic rotary shavers are all single-headed. At that time, the single-headed shaver had a nickname, called a hair puller. Looking at the nickname, you probably know what the performance of the domestic lead shaver is.

Seeing the domestic products in the counter, the young man frowned in dissatisfaction, and then went straight to the counter of imported brands.

Philips, Braun and Panasonic shavers are available at the counter of imported brands, but not many.

Then the young man looked at the price and frowned.

"These imported razors are so expensive! The cheapest one costs six or seven hundred yuan!"

The salesperson explained: "These are all purely imported, and the prices of things produced by foreigners must be expensive. But you get what you pay for. Look at the workmanship of the imported goods, it's not much better than the domestic ones!

Moreover, imported shavers have less noise and are more durable. For example, this Philips shaver is absolutely useless for ten years. If it is made in China, it may be broken in four or five years. "

what the salesperson said,

It is a Philips HQ30 shaver.

When the young man saw the price, it was six hundred and eighty, and he immediately showed an expression of discouragement.

"Six hundred and eighty yuan, it's too expensive, can I get a discount?" the young man asked.

The salesman shook his head: "I can't get a discount. There is no discount for imported products! But this Philips shaver is expensive and expensive. You can see that it has a double head, which is much easier to use than a single head. It's clean and it doesn't hurt."

The young man nodded. Of course, he knew that the double-ended shaver was much easier to use than the single-ended razor, but the price of Philips' 680 directly dispelled the young man's desire to buy.

The wages of young people are often not too high. It is indeed a bit reluctant to spend 680 yuan to buy a razor.

The salesperson saw the young man's mind, and she said, "If you think imported razors are more expensive, you can consider domestic ones."

"The domestic ones are all single-headed, which is not easy to use." The young man said.

"There are also double-ended domestic products, but they are new products." The salesperson said, pointing to a silver-gray razor on the counter.

"This is domestic? I thought it was imported! And it looks so beautiful, like a new imported product, I didn't dare to look at it just now." The young man said.

"It's a domestic product, a new product launched by Puppy," the salesperson said.

The young man looked down at the price and was shocked: "Three hundred and forty yuan, such a beautiful razor only sells for three hundred and forty yuan?"

The salesperson nodded and continued; "There is also a razor bag and two blades in it. I'll show it to you."

The salesperson said and took the sample to the young man.

As soon as the sample got started, the boy couldn't put it down. The appearance of this shaver is really beautiful!

The HQ60 series copied by Li Weidong originally depended on appearance to win, but in terms of performance, it is actually similar to the HQ5 series.

After 2000, this design is very fashionable and has a sense of technology. In 1995, it was the top design.

Moustache looked at the puppy razor in his hand, and then looked at the old-fashioned Philips HQ30 on the counter, and suddenly felt that the imported razor was not fragrant.

The salesperson went on to introduce: "There are four types of this shaver, 101, 102, 103 and 104. The machines are all the same, but the colors are different."

"Just buy this! The silver-gray looks good!" The young man said without hesitation.

...

The commercial of the puppy razor appeared on CCTV's prime time. Although it only lasted for 15 seconds, but with the help of Mr. Ge, the effect of the commercial was very good.

The 1990s was definitely the most profitable period for TV advertising. At that time, there was no Internet. Watching TV was the most common daily entertainment activity in the family. Basically, everyone could see the advertisements on TV.

And there are not many TV channels. In addition to CCTV, you can find four or five provincial-level satellite TV stations to advertise, and you can let TV viewers across the country see your advertisements.

This is what Puppy Electric did. It was advertised on CCTV and several local stations. It didn’t take long for Puppy Shaver to become a household name.

Previously, double-headed shavers have been monopolized by Philips, and domestic brands do not have double-headed shavers. Today, Puppy Electric has launched a double-headed shaver, which is equivalent to filling the market gap of domestic double-headed shavers.

All Philips shavers are imported, and the price is not very expensive. The entry-level price is as high as 600 to 700 yuan, the middle grade is 800 to 900 yuan, and the high-end shaver is more than 1,000 yuan. This was not at the time. Ordinary Chinese people can afford it.

Although the quality of Philips was very good at that time, a shaver can be used for more than ten years, and on average, it is 60 to 70 yuan a year, and a day is more than 10 cents.

But there is a saying that it doesn't hurt to cut the meat at a time. If consumers are asked to pay one or two cents a day for ten years, they may not feel anything, but if consumers are asked to pay six or seven hundred yuan in one go, it will hurt the flesh. .

In contrast, a puppy razor with half the price is obviously more acceptable to consumers.

In the mid-1990s, there were few wealthy people in China, and imported Philips shavers were a luxury item for most families. Many people buy Philips shavers with the intention of using them for ten years.

For things like consumer goods, price is always the most sensitive factor. The reason why Chinese manufacturing can spread all over the world is because of low prices.

The puppy razor is half the price, enough to make many consumers abandon Philips and switch to the arms of puppies.

The effect of the advertisement is still very good. In just one month, Philips' sales in China have decreased by 30%. These markets have been taken away by puppy razors, and puppy razors have also quickly occupied China. market.

In history, when Feike double-headed shavers first appeared, they did not grab the Philips market, but squeezed many domestic single-headed shavers out of the industry.

This is mainly because when Feike first went public, it adopted a reserve price strategy. At that time, the wholesale price of Feike razors was only a few dozen yuan, which was similar to other domestic razors.

Consumers who are willing to spend seven or eight hundred yuan to buy a Philips shaver will not look at any cheap products that cost 180 yuan, and naturally they will not pay attention to Feike shavers.

Moreover, Feike initially used Yiwu Commodity City as its sales channel, and Philip had already entered the counters of major shopping malls and stores.

The bulk channel of small commodities is also different from that of hypermarkets. Those who like to buy goods in small stores or street stalls will not go to professional hypermarkets; for the same reason, those who shop in hypermarkets on weekdays will not buy street stalls. .

That is to say, the early Feike and Philips were aimed at two types of consumer groups, and the markets they faced did not overlap. Even if the price of Feike is very cheap, it does not affect the market of Philips.

It was not until later that Feike gradually developed and began to seize the market of Philips. In the end, both parties accounted for about 40% of the shaver market in China.

Puppy electrical appliances are different. Li Weidong has channels in major supermarkets and home appliance shopping malls, so once the puppy shaver is launched, it will directly compete with Philips shavers.

Every bite of the puppy's market share means Philips loses that bite.

...

Philips Asia Pacific regional headquarters is in Singapore, moved to Hong Kong Island in 2005, and established a so-called Greater China headquarters in China in 2017. It can also be seen that Philips attaches great importance to the Chinese market.

The person in charge of Philips Asia Pacific is named Ke Cilei. He is a German who went to university in the Netherlands and joined Philips after graduation.

Ke Zilei was previously in charge of Philips' audio and display components business, and was only recently sent to Asia as regional head.

At this moment, Ke Cilei frowned as he looked at last month's sales data.

The sales data in Japan and South Korea are basically the same as before. These two countries mainly use Philips components and do not rely too much on Philips consumer goods. After all, these two countries have their own home appliance brands.

Sales figures in Southeast Asia are on the rise. In recent years, the economic development of Southeast Asia has been very good, and the desire to buy imported goods is also very strong. It is a very good dumping ground for goods.

However, in China, another big market in the Asia-Pacific region, sales of razors have dropped by 30%.

When he first saw this data, Ke Cilei even felt that he was dazzled, or that there was a problem with the statistics.

If the sales volume is bullied by a small amount, it is a normal phenomenon, but the sales volume can drop by 30%, but this is a very strange thing.

"Sales have dropped so much in a short period of time. There are three possibilities. First, there is a problem with the supply; second, there is a problem with the Chinese economy; third, there are powerful competitors.

There is definitely no problem with supply, I have not heard of any shortages; China's economy is on the rise, and as the Chinese are getting richer and richer, the demand for various daily necessities should continue to increase.

That is to say, there is a strong competitor that is dividing up the Chinese market, so our sales will be cut in half. Who will this rivalry be? Is it Braun?

It is unlikely that Braun's business focus is in Europe after all. If Braun has any action, it will be implemented in Europe first. It is impossible for China, which came to Asia, to shoot the first shot.

That's Panasonic! Panasonic has always regarded the Asian market as their back garden, but in the shaver market in China, Panasonic has never been a match for our Philips.

However, this time, our sales were cut in half, and it seemed that Panasonic had a big move and wanted to catch us by surprise. If I'm not mistaken, they must have introduced rotary shavers as well. "

Rotary shavers have always been made by Philips, and the other two shaver brands, Braun and Panasonic, are reciprocating shavers.

So when Philips' sales in China plummeted, Ke Cilei's first reaction was that Panasonic also entered the field of rotary shavers.

Thinking of this, Ke Cilei picked up the phone and dialed the phone number of Philips in China.

"Has Panasonic released a rotary shaver? Send me some samples immediately." Ke Cilei said directly.

However, the other end of the phone answered, "Mr. Ke Cilei, recently, Panasonic has not launched a new shaver in China!"

"Not Panasonic? Could it be Braun?" Thinking of this, Ke Cilei immediately asked, "Then Braun, have they launched any new products?"

"Neither did Braun." The other party replied.

"That's weird, since it's not because of your competitors, why did your sales in China drop by 30%?" Ke Cilei asked.

"Well, I've already sent someone to investigate, and the results of the investigation haven't been reported to me yet." The other party paused, then continued; "But I think it's probably because Chinese companies have also launched double-headed razors. ."

"The Chinese also made a double-headed razor?" Ke Cilei frowned.

"Yes, although I have never seen a Chinese double-headed shaver, I heard that this shaver has a beautiful design and is cheaper than our shavers."

The other party paused, and then emphasized: "I think the key is cheap. After all, the income level of Chinese people is relatively low, and they are more willing to buy some cheap products."

"Then we can lower the price appropriately!" Ke Cilei thought about it and said, "I'll give you 15%, oh no, it's a 10% price reduction authorization.

Our Philips shaver is the first in the world. Our products are so excellent that we can easily regain the lost market by lowering the price a little! "

...

Before 1998, the vast majority of foreign capital only regarded China as a dumping ground for commodities, so their response to the Chinese market also seemed to lag behind, and it was always a rhythm several beats behind.

European and American companies have always been like this. Even though China's consumer goods retail market in later generations is on par with the United States, many European and American companies still look at the Chinese market with a pair of arrogant glasses. When I was kicked out of the Chinese market by my competitors, I began to cry and speak ill of China again.

Because of this, puppy shavers have taken 30% of Philips' market share, and Philips has reacted.

But even if Philips responded, it did not conduct in-depth market research, nor formulated a targeted strategy, but simply lowered prices.

The key price cut is still bleeding, and the price is only reduced by 10%.

There is no doubt that the arrogance of Europeans towards the Chinese market is deeply rooted.

However, this time, Philips is facing Puppy Electric, an opponent who is very good at fighting price wars.

The marketing of Puppy Electric is in charge of Zhong Yemao. This marketing master reacts to the market much faster than Ke Cilei.

When Philips dropped the price, so did the puppy shaver, always keeping half the price of Philips.

For Made in China, it is never a good idea to fight a price war!

When Ke Cilei got next month's sales report, he was surprised to find that Philips' sales in China were only half of the original!

Ke Cilei finally realized that if this continues, Philips' shavers will probably be driven out of the Chinese market.