Jincheng Group Commercial Company moved faster than he imagined. On the second day after its successful listing, Guocheng Department Store took action.
The excuse is quite good. In order to celebrate the head office's successful listing on the A-share market, the entire store will be 20% off for the next week.
This guy is really ruthless. The other party obviously wants to directly crush Jianan Supermarket with its strong financial resources.
Now it depends on whether Jianan Supermarket dares to follow. If it does, it will inevitably lead to a significant drop in profits. If it doesn't, the customer flow will be taken away by the city's department stores, especially the customer flow for home appliances.
In order to cope with the actions of the city department store, Li Yuhang and Li Yuxin hurriedly ended their inspection trip and returned to Guocheng city on the same day.
At this time, Li Yuhang will naturally not wait for the customers to leave. Jianan Supermarket will also offer a 20% discount starting from May 10.
In addition, Li Yuhang asked the administrative department to formulate a point card plan and regularly launch activities to exchange points for gifts.
As for stores like Sam’s Club and Costco in the future, Li Yuhang is not planning to open them for the time being. These have a good market in developed countries, but it is a bit difficult in developing countries. At least the domestic market is not big at the moment. After all, the main demand for such stores is
It is to serve the elite class.
The City Department Store and Jianan Supermarket have begun a price war. The happiest people are undoubtedly the citizens of Guocheng, especially those who need large items when decorating their new homes. This unexpectedly saves them hundreds of dollars.
Even costing thousands.
This made the delivery and installation employees of the home appliance department very busy. On the day of the Jianan Supermarket discount, they worked overtime until after 11 o'clock in the evening to deliver and install the goods sold today.
You must know that Jianan Supermarket has lowered the purchasing cost. Under the same selling price, the profit is a little higher than that of the city department store. In addition, the operating costs are also much lower than that of the city department store.
Jianan Supermarket dared to approach the city department store, but the other party could not respond immediately. After all, there was a mother-in-law above it. It was not their decision to continue lowering the sales price. They could only wait for the head office's decision on this matter.
Order.
And discounts are allowed, but if both parties use their money to hurt others, they may have to be interviewed by the relevant city departments. There are many reasons, one of which is to disrupt the normal order of the local consumer market.
Don’t doubt it, there are indeed restrictions in this area, and it is also a kind of local protection of the market to prevent some well-capitalized companies from destroying all peer companies at their own expense and monopolizing the local market.
For example, if Jianan Supermarket launches an unrestricted price war in Yuzhou or Chengdu in the future, it is estimated that it will soon receive an interview from the local government. These two parties will never allow Jianan Supermarket to defeat Yuzhou Department Store in this way.
and Jincheng Group Commercial Company.
In China, price wars can be fought, but there is a limit. Once the limit is exceeded, there may be trouble.
The competition between large retail companies is definitely not just about price, because a price war will only hurt both sides. Quality service is the key to winning customers.
Perhaps because of the importance attached to Jianan Supermarket, Zhao Jianfeng, chairman and general manager of Jincheng Group Commercial Company, came to Guocheng in person and also visited Pan Xinghua, executive deputy director of the municipal government.
Jincheng Group Commercial Company has levels. In Chengdu, it is a deputy director-level enterprise. Zhao Jianfeng's current administrative level is deputy director-level.
This is also the reason why Li Yuhang feels pressure. For this reason, he specifically wants to add a layer of identity to Jianan Supermarket, mainly to facilitate Jianan Supermarket to compete with the two state-owned enterprises in Chengdu and Yuzhou.
In Pan Xinghua's office, Zhao Jianfeng said with gratitude: "I am very grateful to Mr. Pan for his help and care for our company during this period, which has enabled our company to successfully enter the Guocheng market."
"You're welcome, Director Zhao. Our Guocheng market is vast and there are no well-known retail companies to settle here. Jincheng Group Commercial Company can choose to enter our Guocheng and provide high-quality services to the citizens of Guocheng. This is also our Guocheng's honor."
On the surface, everything sounds nice, but as for what the two of them are thinking, it's unclear.
Although Pan Xinghua is smiling and looking calm now, in fact, he is in a very bad situation now. Due to some of his reasons, the city department store was transferred to Jincheng Group Commercial Company at a low price, and he suffered a lot from the top management of Guocheng.
Unprecedented isolation, whether it is the Standing Committee or the city government meeting.
Originally, when two state-owned enterprises merged, it didn't matter if the price was higher or lower. They were all owned by the state anyway, but this involved the city government's finances. Due to some reasons, there was a shortage of several million.
Even after a meeting, Tang Jianming, a senior official of the Municipal Party Committee and Deputy Governor of the Municipal Government, angrily denounced him as a sinner of Guocheng.
The biggest problem for him is that some heads of departments under his direct supervision now report directly to Wu Jimin, the mayor of the city government, without him, which directly leads to him having no say in Guocheng.
Pan Xinghua knows very well that his career in Guocheng has entered a countdown. Now he only hopes that Rongcheng can help him and not let him retire in an idle position.
Zhao Jianfeng also understood this person's current situation, and he still felt a little guilty in his heart. The reason for this was mainly because of Jincheng Group Commercial Company.
Of course, there is also the attitude of the main executives of Guocheng to support local enterprises. In addition, there have been many conflicts before, and this time the world is just the trigger.
At present, the main leaders of various cities are mainly local officials, and there are relatively few transfers from other places. This aspect will only gradually improve in the 21st century. Later, the proportion of officials serving in other places will become larger.
Pan Xinghua is not an official who grew up in Guocheng. Before coming to work here, Pan Xinghua was the chief of the XC District Committee of Rongcheng.
The headquarters of Jincheng Group Commercial Company was also in XC District before, but later XC District and Dongcheng District were redivided into several new districts, and the name Dongcheng District XC District no longer existed.
Of course, Pan Xinghua did not violate any rules in the acquisition of the city department store by Jincheng Group Commercial Company, which was also specially approved by the Provincial State-owned Assets Supervision and Administration Commission.
The main reason why Guocheng's senior officials were dissatisfied with him was that he prevented the city's State-owned Assets Supervision and Administration Commission from signing a contract with Jianan Supermarket. As long as it was half an hour late, the city government would have enough reasons to deal with the province and would not let the city government.
The finances are several million short.
Zhao Jianfeng said: "Jianan Supermarket is currently expanding aggressively. Not only the Guocheng market is expanding, but the surrounding stores in Sizhou and Suizhou are also undergoing rapid renovation. They are even present in our Chengdu city. What do you think?
Jianan Supermarket?”
"Jianan Supermarket is a retail enterprise supported by our municipal government. Don't come up with some of your ideas. You should know that things are not the same as before. Especially after the speech during the Southern Tour, the private economy has been completely restored.
You can only compete commercially with Jianan Supermarket and adopt other methods, or the city government will directly take the lawsuit to the province."
Zhao Jianfeng was a little disappointed. He knew many things well about being able to sit in this position. Facing Jianan Supermarket, he knew very well the advantages and disadvantages of his company. But when it came to business competition, he didn't have much confidence at all.
Now according to Pan Xinghua, the Guocheng City government is determined to support Jianan Supermarket in becoming bigger and stronger, at least to prevent Jianan Supermarket from suffering unfair treatment within the province, which makes Jincheng Group Commercial Company unable to use some methods.