Rebirth of the Industrial Tycoon

Chapter 528: Consumption Downgrade Theory

"Yamada Denki wants to be the 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 be the agent? "

"I didn't mention the other products. It seems I don't want them." Wang Jiuyang replied.

"That's not possible!" Li Weidong shook his head and continued, "I also hope to take this opportunity to enter the Japanese home appliance market! The agency rights for beauty instruments cannot be given alone, they must be combined with other products."

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

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

Li Weidong continued: "Prepare some promotional materials, product samples, and quotations for me, and I will take them with me."

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

At the beginning, Li Weidong came to Yamada Electric to promote sales. The person in charge of receiving Li Weidong at that time was Section Chief Xiao Lin. It was this Section Chief Xiao Lin who rejected Li Weidong and made it clear that Yamada Electric would not sell Chinese brands.

Now it is Section Chief Xiao Lin who is responsible for receiving Li Weidong.

"Director Xiaolin, we meet again." Li Weidong greeted with a smile.

"Mr. Li, I haven't seen you for a long time, but you are still as charming as ever!" Section Chief Xiaolin showed Japanese politeness, very polite, but not enthusiastic.

After the two exchanged a few words, Section Chief Xiao Lin invited Li Weidong into the reception room and introduced Special Agent Sang Ye to Li Weidong.

After mutual introductions, the negotiations officially began.

"Mr. Li, we at Yamada Denki are very interested in your company's beauty equipment, so we hope to obtain the sales agent right." Executive Kuwano said.

"I am naturally honored that our Puppy Electric products can be sold in Yamada Electric." Li Weidong replied with a smile.

"However, we, Yamada Denki, also have conditions. If your company's products want to be sold in our Yamada Denki, they need to cooperate with our business strategy. These are some details, please take a look at Mr. Li."

Special Agent Kuwaye handed a document to Li Weidong and explained at the same time; "These are our Yamada Electric's unified requirements for the brands settled in. Other home appliance brands that enter Yamada Electric also need to comply with these requirements."

"I understand!" Li Weidong took the document and read it carefully.

The request made by Yamada Electric is nothing more than to allow Puppy Electric to make more profits, and these profits are not made to Yamada Electric, but to customers.

For example, in some promotional activities, products will be reduced in price and promoted. This cost is required to be borne by Puppy Electric.

This is like the e-commerce platforms and takeout platforms of later generations. When organizing 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 merchants.

This is equivalent to passing on the cost of promotional activities to the merchants, while the platform does not lose a penny and will make a fortune due to increased sales.

As for merchants, those who have good cost control and good sales can also make money from the event, which is equivalent to small profits but quick turnover;

Those with poor cost control may be working in vain. After an event, they will not make any money at all, or even lose money. At most, they will earn a wave of customer traffic.

The operation used by Yamada Denki also operates in this way. They require that the brands settled in Yamada Denki must cooperate with Yamada Denki's business strategy. In fact, the costs of various promotional activities are passed on to the major brands that have settled in Yamada Denki.

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

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

What's more, giving away profits is nothing more than making less money, which is completely acceptable to Li Weidong.

As long as the products of Puppy Electric can be introduced to Yamada Electric and then enter the Japanese market, Li Weidong thinks it is worth it even if there is a little more profit.

Low price is always the advantage of Chinese manufacturing. Compared with domestic price wars that often break bones, what is the profit margin required by Yamada Electric?

So Li Weidong opened his mouth and replied: "Specialist Sanye, our puppy Electric is willing to accept these requirements of Yamada Electric."

Special Agent Sang Ye nodded with satisfaction. Things went so smoothly, completely beyond his expectation.

If it were a Japanese company, they would probably bargain based on Yamada Denki's conditions. There would be a period of wrangling, but Li Weidong directly agreed, which would also save a lot of time and effort for Kuwano. force.

Li Weidong changed his tone and continued: "But we also have a request."

"Mr. Li, please speak." Special Agent Sang Ye said.

"I want to have a deeper cooperation with Yamada Denki." Li Weidong continued; "In addition to producing beauty instruments, our Puppy Electric also produces 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 be sold in Yamada Denki's chain stores. "

"No!" Executive Kuwano shook his head without hesitation: "We already have several suppliers of small home appliances, and many of them are big brands like Panasonic. Regarding small home appliances, we don't need to develop new suppliers. business."

Li Weidong showed a calm smile, and then said: "Specialist Kuwaye, if this is the case, there is no need for me to hand over the sales agency rights of beauty equipment to Yamada Denki.

At present, our products are selling well in major drug stores. Matsumoto Kiyoshi's chain stores are no less than those of Yamada Denki, and they can cover the entire Japan. We also do not need to open new dealers! "

After hearing this, there was a trace of anger in Kuwano's eyes. In his opinion, even a home appliance giant like Panasonic had to compromise when facing Yamada Denki. A small Chinese brand dared to threaten Yamada Denki!

Li Weidong said calmly; "Specialist Sanye, don't refuse in a hurry. Why not, please take a look at the samples we brought first, and we will talk slowly."

Li Weidong said and asked his men to place the samples they brought in front of Special Agent Sang Ye.

Special Agent Sang Ye patiently looked at the samples, while Li Weidong introduced them beside him.

"Mr. Li, the workmanship of these products of yours is indeed very good, no worse than Japanese brands." Executive Kuwano commented.

"To be honest, we started OEM for Japanese brands a few years ago. We receive a large number of OEM orders from Japanese companies such as Panasonic and Hitachi every year," Li Weidong said.

Commissioner Kuwano nodded: "In the past few years, Japanese companies have invested in many foundries in China and Southeast Asia, and I have heard about it.

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

What Commissioner Kuwano said is true. At that time, Japanese companies built factories overseas, and the products they produced were either sold in the local market or put into the market of third countries. Very few of them were sold back to Japan.

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

Special Agent Sanye understood that Li Weidong took the initiative to introduce his experience in OEM work to Japanese companies to show that Puppy Electric's products were not shoddy, but in line with Japanese requirements.

But Commissioner Kuwano still shook his head: "After all, you are a Chinese brand. Even if you can produce products of the same quality, your popularity 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 purchase home appliances, the first thing they look for is not the performance of the home appliances, but the brand of the home appliances.

In terms of small household appliances, we, Yamada Denki, already have many well-known brands. Even if we put your products on display, we will not have very good sales, but will take up space in our store.

Although our Yamada Denki chain stores have opened all over Japan, except for those flagship stores, the other store spaces are still relatively small. Our stores do not have extra space to display non-hot-selling products. "

"Mr. Kuwano, I agree with your statement. Customers do attach great importance to brand when choosing home appliances, but there is one indicator that is more important than brand, and that is price!"

Li Weidong said, took out a document, handed it to Special Agent Sang Ye, and then said: "Mr. Sang Ye, you might as well take a look at the quotations of our various products!"

Special Agent Sanye took the document, looked at the quotation carefully, and couldn't help but said, "It's so cheap!"

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

Executive Kuwaye took a deep breath. Of course he knew that consumers are extremely sensitive to product prices. As long as the price is low enough, it doesn't matter whether you are a big brand or not!

It is human nature to take advantage, and even billionaires are not willing to waste money when buying things.

Low prices are definitely a trump card for selling any product!

Executive Kuwano could foresee that if there was a product that was one-third lower than the price of similar products on the market, even an unknown brand would have a place in the market.

After Special Agent Sanye lowered his head and thought for a moment, he still shook his head: "Mr. Li, if you sell goods at a price that is one-third lower, you are breaking the market rules.

At that time, our Yamada Electric will also cause opposition from other suppliers, all of whom have long-term cooperation with us. So we are very sorry, we at Yamada Denki cannot sell your products. "

"Mr. Sanye, have you ever considered downgrading your consumption?" Li Weidong asked with a smile.

"Consumption downgrade? What is that?" Special Agent Kuwaye asked with a confused look on his face.

Consumption downgrade is a new Internet term in later generations. Of course Kuwano has never heard of it.

Li Weidong explained: "Consumption downgrading is compared to consumption upgrading. Simply put, when consumers purchase goods, they will reduce efficiency, experience, personality, and taste to a certain extent.

That is to achieve the highest possible level of quality and low price. In layman's terms, when there is not much difference in product quality, if you can sell the cheaper one, you won't sell the expensive one.

For example, if you originally exercised in a gym, but later changed to exercising at home, you save money on going to the gym. This is a consumption downgrade.

Another example is that someone originally planned to go to a Western restaurant to eat expensive Western pasta, but later went to a roadside ramen restaurant to eat cheap miso ramen. This is also a consumption downgrade.

Consumption downgrades will inevitably occur during economic downturns. Recently, Japan's economy has not been very prosperous, right? Japan is currently in a state of consumption downgrade. "

Special Agent Sang Ye frowned, and he realized that what Li Weidong said was indeed happening in Japan. Today's Japanese people are reducing consumption or lowering their consumption requirements just because of the economic downturn.

There are a lot fewer customers in the Western restaurant, and the business of the roadside ramen shop has really improved.

Li Weidong continued: "Mr. Kuwano, you should have heard about the economic situation of Southeast Asian countries, right? Now a financial crisis has broken out in Southeast Asia, which will be difficult to recover in the short term. This will inevitably affect Japan's economy.

Therefore, for a long time in the future, Japan's economy will be in a sluggish state as it is now, and Japan's consumer market will also be in a downgrade of consumption for a long time.

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

I don’t think Mr. Kuwano wants Yamada Electric to suffer long-term losses, right? Choosing our Puppy Electric products is the right way to cater to consumption downgrades and cater to consumers! "

When he heard the words "long-term losses", Special Manager Kuwaye was shocked.

Let alone long-term losses, even if there is another year of losses next year, the board of directors will fire them!

It is still important to keep your position. If you lose your job, you may really commit suicide!

In the database of "Nanzhou Metropolis Morning News", Zhao Liang was bored, holding an old English newspaper and reading the news on it.

The last time he reported on the "Ghost Castle" incident, Zhao Liang was slapped in the face. His report was also criticized by Focus Talk. This punishment is definitely inevitable.

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

This job is quite leisurely. It is nothing more than archiving the newspaper's information and has no technical content.

Fortunately, the newspaper's database contains past newspapers and publications. When Zhao Liang is bored, he can read that newspaper or publication to relieve his depression.

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

The contents of foreign newspapers are naturally much more interesting than domestic newspapers. Even though these newspapers were published in 1996, Zhao Liang still read them with gusto.

Inadvertently, Zhao Liang turned to the sports news section.

"A boy with tens of millions of dollars? This high school student named Kobe Bryant actually got an endorsement contract worth tens of millions of dollars! Americans are really rich. Ten million dollars is enough for me to spend ten lifetimes!" Zhao Liang showed envy. expression.

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

"Feiyue? Is this the Chinese pinyin? Feiyue? Feiyue? There is a rubber shoe in China, isn't it called Feiyue?" Zhao Liang thought to himself.

Continue reading this news, 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 same kind of Feiyue rubber shoes from the past?"

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

"Hello, hello, I'm a reporter from the Nanzhou Metropolis Morning News! There's something about Feiyue rubber shoes that I want to know about!"

Zhao Liang still pretended to be a reporter, and then asked about the Feiyue brand.

The identity of a reporter is indeed very useful. The rubber shoe factory did not hide it, but told the truth about the sale of the Feiyue brand to Li Weidong.

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

"This Li Weidong is the Li Weidong from Qinghe Development and Wholesale Mall. You have caused me so much harm! It's true that God has eyes. Now I finally caught you.

Ten million US dollars, given to an unknown American high school student, is a typical waste of foreign exchange! Foreign exchange is so precious, you just wasted 10 million in one go. This time I will make you walk around without food! "

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