Author: quiet thoughts

Just after the New Year of 1987, Shirakawa Kaede was staying in the courtyard of Setagaya District, watching the news boredly.

Shirakawa Electric has been undergoing adjustments for more than half a year, and the pain of the appreciation of the yen has basically passed.

In October and November at the end of last year, the Walkman factory in China was successfully put into production.

According to statistical data, the cost of a same model of Walkman is nearly 40% cheaper when produced in China than in Neon.

Even though Bai Chuanfeng had expected it, the range of decline still far exceeded his expectation.

The two most prominent cost saving links are labor and material costs.

The monthly salary of a worker in Neon is now basically more than 300,000 yen.

However, the salary of a worker in China is only about 60 to 80 yuan in RMB, which is still relatively high.

Calculated, China’s labor costs are less than 2% of Neon’s?!

When he first saw this data, Bai Chuanfeng was also shocked.

Only Sharp can compete with Shirakawa Electric in LCD TVs. As for notebooks, Shirakawa Electric is the only one now.

Or perhaps in other Southeast Asian countries, it would be too easy to change the place of production.

But China's market rules are like this, and he can only abide by them.

After receiving such a reply, Bai Chuanfeng felt relieved.

For example, the original cost of 100 US dollars has now become 60 US dollars. So 150% or 300% of it is much cheaper.

So Bai Chuanfeng thought very clearly, rather than holding on to the gradually depreciating technology.

After all, if you look at the Walkman on the shelf in an American supermarket, it must have "Made In CN" printed on the bottom.

For example, we are also processing the transmission gears in the Walkman.

She is pregnant again, but she still won't stop.

Now the cost of Walkmans produced in Huaxia and Yizhou is only 60% of that of Neon, so my selling price in Beimi can be determined according to Huaxia’s production costs.

Let’s wait two years until China approves the approval of a wholly-owned foundry.

Walkmans supplied overseas are basically provided by these two places.

Due to the recovery of the market and the hot sales of LCD TVs and LCD notebooks, Shirakawa Kaede can now lie at home leisurely and watch the news.

Therefore, with Huaxia's move, Shirakawa Electric not only reduced costs and maintained profits, but also maintained the market in Beimi.

But after careful evaluation, Bai Chuanfeng gave up this idea.

The reason is not that it is too expensive, but that it is too cheap.

Most others will slowly lose their competitiveness over time.

As for the current 35%, no one expected it and made no relevant preparations.

After everyone within the group saw Shirakawa Electric's shady operations, they were shocked and began to follow suit.

However, because the market has not yet developed, Bai Chuanfeng does not care much about Huaxia's profits for the time being.

After all, it takes a worker one month's salary to buy a radio, which is really very expensive.

The authentic locally produced ones cost as much as 200 yuan. This fact made Shirakawa Feng very helpless.

As a result, after asking around, I found out that the salary offered by Shirakawa Electric to everyone is already top-notch.

So just take it step by step and there is no need to rush it.

But what is more dramatic is that buying an imported Shirakawa Electric Walkman from Neon only cost about 125 yuan.

A win-win! And it also bypasses various agreements between the United States and Neon.

For example, the cost of a product is $100. Then its selling price is at least 150% or 300% of the cost.

Looking at imported products such as Sanyo and Sharp, the cheapest is more than 500 and the most expensive is more than 2,000.

What are the benefits of doing this? This is also related to Lao Mi’s anti-dumping strategy.

"Ahem~" Bai Chuanfeng was about to speak, but a piece of news on the TV caught his attention.

But in China, it only costs 50 cents, a gap of nearly ten times. Not to mention Shirakawa Kaede, even Hasegawa and the others were incredulous.

After all, before the Plaza Accord was signed, everyone expected the yen to appreciate by 20%.

According to the salary level in China at this time, this is actually expensive enough.

No wonder China will become the factory of the world in future generations.

The most important thing is because of the strong assistance from China and the additional production capacity from Yizhou.

"Hey" She knew he was joking, but Yuko Tanaka still showed a curious look in cooperation.

Comparing the two, the difference is too obvious.

In addition to labor costs, the cost of alternative raw materials and parts is also much cheaper than that of Neon in China.

In short, as long as the yen skyrocketing is not ignored, production costs will be reduced, which is a sure thing.

Baichuan Electric's radios are much more advanced than those of Shanghai and Wu brands. They sell for 50 yuan each. Who would buy local products?

These three products have special editions for local supply. The Chinese characters are printed on their bodies and the instructions are also in Chinese characters.

Look, the hands and feet of my colleagues are very fast.

Although pursuing profits is what he wants, he doesn't want to be accused of being a sinister enterprise that exploits workers.

Without continuous investment and technology not updated and iterated, it will be a matter of time before China catches up.

Shirakawa Electric was the first company to move production capacity to Southeast Asia. Panasonic and Sony were not as fast as Shirakawa Electric.

Gee, it's also a big deal, and it was ready to be put into production in the autumn of 1987.

He wouldn't be like his colleagues in Neon who would keep the little things he owns as if they were treasures.

"In 1986, the U.S. fiscal deficit hit a record high, reaching an unprecedented $168.7 billion.

The United States has nothing to say about this loophole.

But then, everyone started a heated discussion inside Shirakawa Electric.

For now, in addition to Walkmans, Huaxia's joint venture factory also produces radios and tape recorders.

If it is transported thousands of miles from Neon, not to mention the high freight, the damage to the LCD panel along the way will be a huge sum.

So there was nothing we could do. It wasn't until Baichuan Electric raised the price of the radio to 150 yuan that the Price Bureau finally passed the review.

By the way, maybe I can gain some goodwill when the time comes.

The choice of capital is the most practical.

Moreover, the processing cost of the current Walkman can actually be reduced further, because some parts need to be shipped from Neon, which only adds a lot of freight.

Because it was the first to pioneer this game, Shirakawa Electric's profits have been slowly recovering since the end of 1986.

So after seeing Shirakawa Electric's success, Panasonic couldn't wait to set up a joint venture TV factory in Yanjing.

If the price is lower than this, then you are suspected of dumping.

"Yuko, stop working and be careful with your body."

Seeing Tanaka Yuko straightening her back and bringing a plate of fruit for herself, Bai Chuanfeng quickly asked her to put it down.

There is no doubt that the layout of the Plaza Accord was started right before it started.

The United States stipulates that the export products of Neon here cannot be sold below a certain percentage of the cost in the North American market.

The local manufacturing industry is gone, so why are we still holding onto those things?

For example, in CD players and LCD TVs, China cannot satisfy the laser heads, brushless motors, chips, and LCD panels.

It's better to open technology licensing to China as soon as possible. No matter how bad it is, we can still collect a little bit of the annual patent fees, right?

Otherwise, our colleagues here in China will become anxious. Believe it or not, we will just go to Huaqiang North without giving you a penny.

Of course, when the Chinese market matures in the future, Bai Chuanfeng will agree to trade technology for the market.

Therefore, in the North American market, such products maintain ultra-high profits and are not worried about sales.

Shirakawa Electric's high salary is already the envy of countless people, but it is too outstanding and a bit inappropriate.

Bai Chuanfeng is in a good mood, that's called leisurely.

The parts from Huaxia are brought to the stick next door and assembled into finished products, and the place of production becomes Made In Korea.

Everyone thinks that since China's processing costs are so low, it would be better to simply move most of the factories there.

At the same time, because it is a joint venture, Shirakawa Kaede has more considerations.

Helping her sit down, Bai Chuanfeng said proudly, "Of course, your son's milk powder money is secured."

At this time, the salary level across the country is between 30 and 50 yuan for most people.

The price of Shirakawa Electric's Walkman has been fixed at around 200 yuan. It is still the cheapest among imported products, but it is also the most expensive in China.
To be continued...