In the office of the chairman of the Kangjia headquarters in Pengcheng, Chen Weirong's expression was full of anger. He originally planned to achieve Kangjia's great cause of becoming the domestic color TV hegemon at a low price, but the feedback came back that his plan was completely in vain.
Distributors from all over the country are very happy that Kangjia has significantly reduced the ex-factory price, but when it comes to the significant reduction in sales price, everyone immediately changes the subject, even the strategic partners he has always been interested in, Jianan Supermarket Group and Lingjiang Electrical Appliance Chain Group.
They are only willing to reduce the part of the profit given by the Kang family.
What worries Chen Weirong the most is the formation of alliances between large domestic distributors. That would be an absolute disaster for their manufacturers, and they would then be at the mercy of others.
Especially in Sichuan-Sichuan Province, the relationship between the giants there is quite good and they have cooperated many times. This time it is not ruled out that the other parties will join forces again to jointly maintain market prices.
The current situation puts Chen Weirong in a dilemma. If the price of the product is not reduced, the market corresponding to the price has begun to be saturated. If the low-level market is not opened up, sales will not only not grow, but may also shrink.
What makes him most angry is that these channel dealers are still unwilling to make concessions even though they know this situation.
From Chen Weirong's point of view, it is natural to be angry, but from the perspective of the channel dealer, they don't care. There are black and white TVs in the low-end market. If the price of color TVs is greatly reduced, the profit of selling a color TV is only equivalent to that of a black and white TV. Why don't they sell it?
What about black and white TV?
This era is also an era of brutal growth for domestic enterprises. Many commercial laws are not perfect yet. That’s why Li Yuhang dared to contact the major retail giants so blatantly to form a price consensus. If he had to wait another year or two, this would definitely not be possible.
Yes, after the Price Law comes out, this is 100% illegal.
This was also the time when several major home appliance manufacturers made the wrong choice, allowing these retail giants to demonstrate their final glory in controlling the market, and taught the manufacturers a lesson.
As a business tycoon, Chen Weirong obviously will not give up just like this. He has no intention of turning back. This time he will definitely not give in.
Since some retail giants have done such amazing things, don't blame him. He knew a lot about the business circles in some foreign countries and started writing furiously on his desk.
Every line in the text highlights the harm that some large retail groups control or monopolize market prices to the country's economic development and consumer interests.
At the same time, we urge the state to introduce relevant policies to severely crack down on collusion, monopoly and price hikes, ensure the normal order of domestic economic development, and ensure the interests of the majority of operators and consumers.
At this time, Chen Weirong looked like a high-spirited and passionate intellectual young man, full of justice, criticizing some selfish and black-hearted businessmen.
I don’t know how long it took? Chen Weirong finally drew a full stop on the letter paper and took a serious look at his masterpiece? A satisfied smile appeared on his face.
It's a pity that as a business tycoon, he is not destined to be the boy who slays the dragon? This time it is just different positions and interests that led to this masterpiece? And when it comes out, no one else will know except the ghostwriter?
This masterpiece is from his hand.
His purpose in writing this is just to destroy the price alliance of the retail giants? But he does not have the courage to offend all the giants. If this matter is known to the outside world, the Kang family will probably be doomed.
In order to keep it secret, he didn't even reveal anything about the core figures of the company. Then he printed out five copies of this masterpiece and sent it to Xinhua News Agency, People's Daily, Economic News, South China Daily, and West China News in the name of unnamed personnel.
Report to the five major newspapers.
As for whether it can succeed, Chen Weirong can only do his best and let fate. He believes that the superiors will never let this situation continue. The chance for his Kang family to become the domestic color TV hegemon is about to come.
Outsiders don’t know the pressure Chen Weirong is facing now. Kangjia has expanded rapidly in the past two years? In addition to the Pengcheng production base, there are also production bases built in Guocheng, Jiangcheng, and Jinmen? The company’s output has grown explosively, and
Is the mid-to-high-end market currently saturated? If we don’t enter the broader mid-to-low-end market, Kangjia itself won’t be able to sustain it.
This is why he writes so hard? He doesn’t want to have problems with the development of his business, so he must break the current situation.
As a listed company, profits can be reduced. As long as sales volume and domestic market share increase, there will be no problem with the stock price. This is where his courage to cut prices significantly lies.
What he fears most is that while profits are declining, sales are also plummeting, which will be a fatal blow to the Kang family in the stock market.
Li Yuhang, who was far away in Guocheng, had no idea that his partner was planning to stab him in the back. At this time, he was in a very happy mood. Those small and medium-sized channel dealers did not know that the communication with the large channel dealers here was quite pleasant.
No one wants to be kidnapped by the manufacturer, and they are even less willing to give up their current interests. An alliance with a reasonable price range is easily reached.
These giants who are used to making a lot of money are not willing to make a dime. Originally, a color TV could earn thousands of yuan, but now they are only allowed to earn three to five hundred yuan. How can they be willing to do so?
Not to mention these domestic companies, even Carrefour, Wal-Mart, Ito-Yokado, and retail giants such as Metro and Lotte are also unwilling. No one will significantly reduce prices unless they have to.
Distributors are joining forces, and manufacturers are not idle either. Ni Runfeng, general manager of Changhong, personally went to Chengdu to visit Xie Chunhua, chairman and general manager of Hongqi Chain Group.
Li Dongsheng, general manager of tcl, went to Xiangjiang and met with the general manager of Huarun Supermarket and the general manager of PARKnSHOP Supermarket.
Huang Hongsheng, CEO of Chuangwei, flew directly to Jinling and met with Zhang Jindong, CEO of Shu Ning, and Zhang Zhongnan, CEO of Shu Guo.
No one is willing to retreat easily at this time. They do not believe that these retail giants are all monolithic. The current situation is only because the price is not enough. They are confident that they can persuade their strategic partners to promote their products together.
After Chen Weirong processed several printed letters, he also arrived in Yuzhou by plane and paid a visit to Zheng Hongmao, president of Lingjiang Electrical Appliance Chain Group, on the same day.
Although he knew that he would not get any good answers here, Chen Weirong did not ignore Zheng Hongmao. The Lingjiang Electrical Appliance Chain Group now covers Sichuan, Sichuan and Central China, with 1,658 branches. It only sells electrical appliances.
It’s not much worse than Jianan Supermarket Group.
Relatively speaking, Chen Weirong actually values Lingjiang Electrical Appliance Chain Group more. Unfortunately, this group is actually controlled by Li Yuhang, and Li Yuhang is the chairman and CEO of Jianan Supermarket Group. Therefore, Lingjiang Electrical Appliance Chain Group’s status is second to none in the home appliance industry.
It has always been lower than Jianan Supermarket Group.
Chen Weirong has always admired the expansion speed of Li Yuhang's industries. For example, Lingjiang Electrical Appliance Chain Group has expanded to such a scale in less than two years, and it is still expanding at a high speed. In South China, there have been
Lingjiang electrical appliance chain store appeared.
Although Guomei Shuning is strong and has family shares, its development speed is far from being comparable to that of Lingjiang Electrical Appliance Chain Group. At present, Shuning is still rooted in East China, and Guomei is still improving its layout in North China.
Judging from the current situation, the three major domestic appliance chain groups will compete decisively in the East China market in the future, and Chen Weirong is most optimistic about Lingjiang Electric Appliance Chain Group.