I don’t know if Li Yuhang’s refusal to cooperate with Changhong Home Appliances Company completely angered the other party, or if the other party wants to regain the market it lost.
On November 10, Changhong brand home appliances were sold at different discounts across the province, with some prices dropping by thousands of yuan, which caused a huge impact on Jianan Supermarket and Lingjiang Electrical Appliances Chain Company.
You must know that in the field of TVs, especially color TVs, Changhong is the dominant brand in the province. People in the province are more inclined to buy Changhong brands when the quality is comparable to the price.
The reason why Changhong was able to seize part of the color TV market last month was mainly because of the same quality products. The sales price of Jianan Supermarket is lower than that of Changhong, and it also has high-quality after-sales service.
Now Changhong is preparing to launch a price war. If Jianan Supermarket does not follow suit, it will inevitably lose a lot of market, and the development of Lingjiang Electrical Appliance Chain Company will also be difficult.
But if they follow, Jianan Supermarket will lose a lot of profits. Although it is still profitable, compared with before, it is not worthwhile at all. Especially as a dealer, other major supermarkets will not be less profitable. This is Changhong Company
Made here by myself.
But it's different here. If he talks now, the less profit will be his own, and the price of purchasing from these home appliance manufacturing companies will not be less. This is very detrimental to the development of Jianan Supermarket.
For the sake of his own interests and the market, Li Yuhang immediately asked Vice President Xiao Yunkai and Director of Purchasing Department Hu Lecheng to go to Guangdong Province and Shandong Province respectively to communicate with major brands to lower their ex-factory prices and seize the home appliance market in Sichuan and Sichuan Provinces.
At the same time, Lingjiang Electrical Appliance Chain Company, Jianan Supermarket Electrical Affairs Department, and the company's televisions were instructed to carry out different discounts to cope with the impact of Changhong.
Li Yuhang is very fortunate now that Changhong Home Appliances is mainly good at TVs, and other items can be ignored for the time being.
At this time, Li Yuhang also understood that he could not control the upstream industrial chain, which would always be detrimental to his external competition.
Now that he has a blueprint in mind and wants to build a consortium that can compete with the six major RB consortiums and the top ten consortiums in the United States in terms of business, he will not be limited to the current industry.
As for why it's just business, it's because some things are beyond his reach, at least not in China.
Although he doesn't have much money left to acquire a big-brand home appliance company, it doesn't stop him from instructing his staff to investigate in advance. Next February will be his opportunity. This month is destined to be crazy. One company has made more than 4 billion, and there is a private investment company.
They made a profit of 7 to 8 billion, and some lost several billion.
And when he gets there, he doesn't have to make too much, he just needs four or five billion, so that he can start some of his new plans.
Li Yuhang is now very fortunate that he liked to play in the stock market when he was free in his previous life. He learned a lot about the stock market, which allowed him to quickly obtain development funds in the early stage. If he only relied on the step-by-step development of the company, it would be difficult to complete the blueprint he drew in his heart.
In Li Yuhang's office, Sun Xianhua, director of the marketing department of Jianan Supermarket Group, said worriedly: "Mr. Li, it is not a long-term solution for us to use our own discounts to offset Changhong Home Appliances Company's low-price strategy. And for the several major home appliance brands we operate, are they willing to cut prices?"
It’s not clear yet, I’m afraid we still need to make early preparations in this regard.”
"Xianhua, as long as the bosses of these home appliance manufacturing companies are not stupid and they still want the home appliance market in Sichuan and Sichuan Province, they will choose to lower prices. Although Changhong seems to be declaring war on us this time, its enemies are still several major home appliance manufacturers.
For the company, this will only make them, manufacturers, lose-lose. For us, the impact will be there, but it won’t be too big.”
Sun Xianhua is not as optimistic as Li Yuhang. If there is no grudge between Jianan Supermarket and Changhong, then of course they will not be afraid. Whoever has a lower ex-factory price and whose sales volume is better will purchase a large amount of its products, even if Changhong's ex-factory price drops even lower.
It will not impact Jianan Supermarket or even Lingjiang Electrical Appliances Chain Company.
But now it is impossible for Changhong and Jianan Supermarket to cooperate in a short period of time. Once the home appliance brands operated by Jianan Supermarket are unwilling to make concessions, then Jianan Supermarket and even Lingjiang Electric Appliance Chain Company will be very difficult in the TV business.
Difficulties.
At present, TVs occupy a major position in the marketing of Jianan Supermarket and Lingjiang Electrical Appliances Chain Company. TV air conditioners, washing machines, and TV sales are the largest.
Sun Xianhua still reminded: "Mr. Li, I also believe that several major appliance manufacturing companies can understand it, but we should still make some preparations ourselves.
Changhong Home Appliance Company suddenly raised the factory price for us before, and this time it suddenly launched a price war. This made us very passive. The lack of upstream industrial chain made us subject to others. I suggest that we temporarily slow down the expansion and expand some of our main products.
From the operating industry to the upstream industrial chain.
For example, we are doing very well in the field of fresh agricultural products. With Jianan Agricultural Products Group here, we are not afraid of anyone getting in our way."
The focus of Jianan Supermarket is on fresh agricultural products and home appliances. There will basically not be any big problems with fresh agricultural products. Even if some products cause difficulties for Jianan Supermarket, it doesn’t matter. This will not affect the overall situation of Jianan Supermarket.
The situation with home appliances is different. Currently, Canaan does not manufacture home appliances itself, so it is often very passive and unable to respond quickly.
However, not only Li Yuhang is ambitious in the Jianan Department, but many of its senior executives are also full of ambitions. The Jianan Agricultural Products Group requires its own control over the entire process, starting from seeds or seedlings until they are mature and sold to Jianan Supermarket and Fruit City Supermarket.
Breeding pig farms are being established one after another, professional cooperatives are being established one after another, feed companies have also been put into operation, and seedling companies and pesticide companies have been established one after another.
The top management of Jianan Supermarket is also unwilling to lag behind. Although their own group does not control some companies, they always try to bring some major suppliers into the Jianan Group.
For example, Tianyuan Beverage Company and Menghua Food Company are some investment companies that have taken shares, completely tying them to Jianan Supermarket.
This time Sun Xianhua wants to encourage Li Yuhang to invest in one or even several home appliance companies. He does not require a controlling stake, but only needs to have some say.
Moreover, now is the era of state-owned enterprise restructuring. With some of Li Yuhang’s investment companies, it is quite easy to acquire shares.
It's a pity that some of Sun Xianhua's ideas are different from Li Yuhang's plan. Li Yuhang either doesn't do it, or he has to get a controlling stake, so that he won't argue at the meeting when facing competition.
As for the companies that have invested in it, it is just a convenience, and at the same time it can be regarded as support for the companies in the city. These companies cannot affect the overall situation.
But home appliance manufacturing is different. Changhong's approach this time made Li Yuhang determined to control a company in this field by himself, lest this aspect become the weakness of Jianan Supermarket and Lingjiang Electrical Appliance Chain Company in the future.
After Sun Xianhua left, Li Yuhang immediately informed the deputy general manager of the Home Appliances Affairs Department to let him know the situation of some home appliance manufacturing companies in the province and country, paying special attention to those home appliance companies that he hoped to invest in or acquire.