Seven hundred and thirtieth chapters seize the opportunity
"Don't worry about these things for now. Our company has the right to operate exports independently, and these terms have nothing to do with us."
Xu Shiyan put the documents aside and looked up at Li Bingzhuo and others.
“The most important thing right now is the next development of our company.
So far, our foreign trade orders this year are 40% less than the same period last year.
This means that many of those old customers are still waiting to see, or may not have any ideas for cooperation this year."
Xu Shiyan took out a report and showed it to Li Bingzhuo and others.
“This is what we should be most concerned about right now.
Last year's orders didn't decrease much, mainly because people had already paid all the deposits.
If they cancel the order, they will suffer huge losses. They have no choice but to continue to execute the previous contract.
But this year it is obvious that foreign businessmen are not very willing to place orders.
If this situation continues, I think our company’s efficiency may drop significantly this year.”
Xu Shiyan sighed, he barely passed the test last year, and I'm afraid it will be more difficult every year in the next few years.
"The general manager and colleagues in the sales department have contacted most of the customers, and the main problem is still price.
Now the U.S. dollar has appreciated in value. Currently, one U.S. dollar is worth 4.78 cents. Last year, it was 3.76 cents.
Merchants feel that they will suffer huge losses if the prices of previous years are maintained, so they are waiting and watching."
Li Chengrong and the others also thought about this. People in the sales department have been actively contacting old customers recently.
“There is no way, since last year, every industry has experienced a cold winter.
In fact, not only the ginseng in our county, but also various domestic enterprises have experienced a process from overheating to sudden cooling.
The economy is in recession, many domestic commodities are overstocked, and the phenomenon of triangular debt in various units is particularly serious.
Our company is good at this. Except for purchasing some raw materials and packaging from outside, the rest is supplied by ourselves.
Most of the sales are exported, so it is not dragged down by the triangular debt."
Li Chengrong is now in charge of the market. He is very attentive to his work. He collects and organizes information on the development of various industries at home and abroad.
"Among other things, the Fular Heavy Machinery Factory in Qi City was forced to suspend production last year due to triangular debt.
Anshan Iron and Steel Company also had no money in its accounts and no coal in its warehouse, so it could only mobilize employees to raise funds.
There are also many factories that have closed down because of this.
The domestic economic situation is not good and the currency has depreciated. Now everyone is rushing to export, but exporting is not easy."
"General manager, I think it may be necessary to reduce prices.
If the price comes down, some of those old customers should still be retained. If the price doesn’t come down, I’m afraid these customers will all be lost.”
Li Chengrong and his people have been studying for a long time, and feel that there is really no way to break the situation now.
"No, price reduction is the worst method. Once the price drops, it will be difficult to increase it in the future."
Xu Shiyan shook his head, the price cannot be lowered easily.
At present, the appreciation rate of U.S. swords is not too large. If the price is reduced now, what will happen later?
"Let's do this, you take the people from the sales department and calculate the cost for me.
See what kind of promotional discounts are more reasonable while maintaining the original price.
For example, buy ten and get one free, buy eight and get one free, and buy five and get one free. Let’s see which one can satisfy foreign customers under the current exchange rate without causing too much loss for us.”
Without lowering prices, we can only use other promotional methods.
There is no way, given the current economic situation.
If you want to find a way out of this situation and ensure the normal operation of the company, you can only make a little concession.
"In addition, we still adopt the method from last year. In addition to giving away the same products, we will also give away the new products we will launch this year.
If the customer wants to hold any promotional activities, we will try our best to cooperate and make sure to capture all the existing old customers and not let these people be lost."
Thanks to the participation of people from the Ginseng Research Institute, the development of new products has been accelerated, and they can take out the new products they had previously reserved.
I can’t worry about so much now, let’s stabilize this year’s orders first.
"Okay, then I will take someone to do the calculation and then contact the customer."
Li Chengrong nodded, there was no other good way at the moment.
"It's the Spring Festival again soon. I can only bring a few more of this year's new products. Let's try the effect.
In addition, I want to bring the medicine from the pharmaceutical factory and give it a try, but I don’t know if it will work.”
Everyone is worried about the situation in front of them, and Xu Shiyan is no exception.
The drugs produced by pharmaceutical companies currently only have domestic drug certification procedures, which are not recognized in many countries.
Drugs without foreign, especially European and American certification, can generally only be sold in the health care product category.
This is where traditional Chinese medicine suffers, and it is also the reason why Fusong Pharmaceutical Factory takes its products to the Spring Fair every year, but cannot sell much every year.
Only Hong Kong, Taiwan, Dongyi, and some countries in South Korea will purchase small amounts.
"This year, we are going to build another cosmetics factory to produce the products I mentioned before.
This must be independent and cannot be mixed with the original factory.
In addition to this, we will also establish a joint venture with other investors to build a flooring factory and a health products factory."
Xu Shiyan flipped through the lists in his hand and took out a plan.
"The health products factory mainly sells to domestic customers. The formula is authorized by our company and uses independent trademarks and packaging.
In the past two years, health care products have become popular in China, and we cannot miss this opportunity."
This idea came to Xu Shiyan's mind when he was helping Xu Shiqin buy land in Bao'an.
There are actually many reasons for choosing to make health care products at this time.
One of the more important reasons is that we are afraid that Chinese people will follow suit.
At present, Oriental Ginseng Industry Co., Ltd. is able to maintain its current profits despite the dismal overall situation of the ginseng industry, relying on deep processing of its products and early registration of foreign patents.
But there is one thing. Patent protection is only useful abroad, and China does not pay attention to it at all.
In the past, we were all focused on exports. It was useless to try to follow the trend. Foreigners only recognized those with patents, and those who did not have patents could not sell.
Exports are now sluggish, and the domestic health care products industry is beginning to rise.
At this time, I am afraid that someone is eyeing these products of Ginseng Industry Company, and they will not export them and switch to domestic business.
Anyway, the price of domestic ginseng raw materials is so low now, it will definitely not be a loss to mix it in.
If they imitate the products of the Ginseng Industry Company and others follow suit, and then sell them in China, what can Xu Shiyan or the Ginseng Industry Company do with them?
This kind of thing will definitely happen. Rather than letting others take the lead, it is better for them to take this step themselves.
Instead of building a factory locally, choose another location, register a separate trademark, redesign the packaging, and appear in front of the Chinese people with a new look.
From now to 1995 and 1996, it will be the golden period for the development of domestic health care products. Take advantage of this trend and make money first.