On the morning of November 15th, Jianan Supermarket Group and Kangjia Electrical Appliances Company held a high-profile strategic partnership signing ceremony, and also held a special press conference.
In addition to Guocheng media, reporters from West China Daily, Provincial TV Station, Yuzhou Daily, Rongcheng Daily, People's Daily and other reporters arrived at the press conference hall of Beihu Hotel.
The recent price reduction sale of Changhong Electrical Appliances has stirred the nerves of countless people. As one of the top retail groups in Sichuan and Sichuan Province, during such a period, it suddenly announced a strategic partnership with Kangjia Electrical Appliances Company in a high-profile manner. This has to be
Let some people think about it.
At present, the department store retail industry in Sichuan and Sichuan Province is very interesting. There are five major companies, four of which are state-owned. Jianan Group is privately owned. As for Lingjiang Electrical Appliance Chain Company, its scale is too small and it cannot be ranked currently.
Changhong cooperates with four state-owned supermarkets, but it does not cooperate with Jianan Supermarket Group. It is impossible to buy Changhong brand home appliances in Jianan Supermarket.
As for the Jianan Supermarket Group, products such as Medi air conditioners, TCL TVs, Skyworth TVs, Little Swan washing machines, etc. are also exclusively sold by Jianan Supermarket. The channel distributor of these major brands in Sichuan and Sichuan Province is Jianan Supermarket.
Of course, these exclusive sales are basically signed once a year, only Medi Air Conditioning's signing time is longer.
The fundamental reason is that these manufacturers are unwilling to leave a provincial channel in the hands of one company for a long time, which is not conducive to their own development.
For example, Kangjia, regardless of its strategic partners, Jianan Supermarket Group and Lingjiang Electrical Appliance Chain Company are not exclusive channels.
It’s just that the ex-factory price is lower than that of other channels. In addition, there is a discount when ordering. The more goods Jianan Supermarket and Lingjiang Electric Appliance Chain Company buy from Kangjia Electric Appliances, the greater the discount point.
At the press conference, a reporter from Yuzhou Daily stood up and asked: "Mr. Li, due to the large price reduction of Changhong TV in the province, TV brands operated by Jianan Supermarket and Lingjiang Electrical Appliance Chain Company have also reduced their prices, and some products have dropped significantly.
Even reaching thousands of dollars.
In such a period, Jianan Supermarket Group and Kangjia Electric Appliances Company have reached a strategic partnership. I wonder if it will have an impact on the price of color TVs?"
Li Yuhang has been prepared for this. He will never give the outside world the impression that he can earn one or two thousand from a color TV.
“Our domestic color TV industry was initially dominated by foreign products. After years of development, the quality of domestic products has caught up with foreign products.
In view of the excessively high prices of some products and the economic income of many of our citizens that do not allow them to enjoy high-quality home appliance services, some of our manufacturers are doing everything possible to reduce production costs. We are also constantly reducing operating costs so that everyone can afford color TVs.
Now the time is ripe to significantly reduce the price of color TVs so that people across the province and even the country can enjoy this benefit.
Our Jianan Supermarket Group has reached a strategic cooperation with Kangjia Electrical Appliances Company this time, which is to sell Kangjia TVs to everyone at cost prices. Among products with the same configuration and quality, we promise to consumers that in our Jianan Supermarket Group
The price of the TV purchased is absolutely the lowest, and it is guaranteed to be genuine, and you will be compensated ten percent for any fake product.”
The reporters present knew that there was something good to watch. In the next few months, the domestic home appliance industry, especially the color TV industry, would inevitably stir up a storm.
Regardless of whether Changhong’s manufacturer has lowered its ex-factory price, or the supermarket is discounting to seize the market. Now that Jianan Supermarket Group has responded, there will inevitably be endless battles between several major retail groups, as well as between Changhong and Kangjia.
.
This is not only the market in Sichuan and Sichuan provinces, but also the East China market where Jianan Supermarket enters. There will also be competition. TVs in the East China market will inevitably follow the big price cuts, which will affect the national TV prices.
As for whether the fact is that the manufacturing company and Jianan Supermarket don't make a penny as Li Yuhang said, that's not what they need to care about. Since Li Yuhang said so, that's what they wrote in the press release.
What worries them most is Li Yuhang's promise that products with the same quality and configuration will be sold at the lowest price in Jianan Supermarket. This marks that the price war in the home appliance industry, especially in the sales of color TVs, has begun.
A reporter from the provincial TV station stood up and asked: "Mr. Chen, you should be aware of the current retail market structure in Sichuan and Sichuan Province. I wonder what prompted Kangjia Electrical Appliances and Jianan Supermarket Group to reach a strategic partnership?"
"We in the Kang family used to pay more attention to the South China and East China markets and neglected the southwest market. With the continuous advancement of reform and opening up, the economy of inland areas has achieved rapid development, especially Sichuan and Shu provinces, which have a huge consumer market and a good
economic development prospects.
Kangjia executives have always believed that in order to occupy a place in the home appliance market in the southwest region, they must first establish a foothold in Sichuan and Shu provinces.
The reason why we chose to reach a strategic partnership with Jianan Supermarket Group is because of the youth and vitality of this company.
Mr. Li founded and led Jianan Supermarket Group to become one of the top private retail groups in the country at a young age. I am very optimistic about the future of Jianan Supermarket Group. I firmly believe that this strategic cooperation between the two parties can promote better development of both companies.
."
A reporter from Rongcheng Daily stood up and asked: "Mr. Chen, Mr. Li just mentioned that your manufacturing company also provides goods to Jianan Supermarket Group at cost prices. I wonder if this is detrimental to the interests of shareholders of Kangjia Appliances."
This question can be said to be quite tricky. If the response is not good, it is likely to have a huge negative impact on Kangjia and even Jianan Supermarket Group.
Fortunately, Chen Weirong has a strong adaptability and looked quite calm after this person asked the question.
“I believe that a company owner should not only be a businessman, but also an entrepreneur who contributes to society.
We supply goods to Jianan Supermarket Group at cost price, so although there is no profit, consumers across the country get benefits, allowing some families with limited financial resources to enjoy material needs that they could not enjoy before.
At this point, I believe that the company's major shareholders support this, and I believe that those investors who have purchased our company's shares also support this. As long as Kangjia Electric Co., Ltd. is still operating normally, I believe that Kangjia Electrical Appliances will
Have a brilliant future.”
The reporters did not argue with these two people seriously. Everyone knew in their hearts that the nice-to-say cost price was just a lower price. It was impossible not to make money, and these two were not charity companies.
The following questions were quite normal, and they were all questions about hello, me, and everyone. No reporter came to embarrass Li Yuhang and Chen Weirong.
After the press conference dispersed, Li Yuhang specifically reminded Chen Weirong to ship the goods as soon as possible. Xiao Yunkai had already gone to the headquarters of Kangjia Electric Appliances, where transportation arrangements would be made.
Jianan Supermarket is different from many companies. Nowadays, products are basically purchased from various manufacturers. Even the transportation is handled by its own transportation department, so the manufacturers do not need to worry about it.
It is expected that starting from the 20th of this month, Jianan Supermarket and Lingjiang Electrical Appliance Chain Company will launch Kangjia brand color TVs and use them as their main products to compete with Changhong in the province.
Chen Weirong smiled and said: "Mr. Li, don't worry, our warehouse has enough reserves. There will be no problem with your first batch of five thousand color TV sets of various types. For subsequent orders, just make a phone call and I will ship them immediately."
Chen Weirong is very familiar with the payment model of Jianan Supermarket Group. Generally, the payment is settled three months later.
Some small companies and companies that have only developed recently will settle their payments relatively quickly.
Although it took three months, Jianan Supermarket Group was very happy when the payment date came and would never default on the payment. Chen Weirong did not care about these three months.