Mitsui Mitsubishi can be said to be pressing forward step by step. Relying on the current dominance of Japanese home appliances in Asia, they have directly reduced the supply of products to Lane Crawford and Tesco Group on the grounds of production volume.
Toshiba, Sony, Panasonic, and Mitsubishi have successively informed Lane Crawford and Tesco Electric that supply prices in the third quarter will increase due to cost factors, and supply quantities will be significantly reduced due to production problems.
At present, the prices and specific quantities of ordered products between E-commerce Group and suppliers are basically signed once a quarter. Now that the third quarter is coming, it is also the time for E-commerce Group to sign new purchase prices and quantities with major suppliers.
There are no problems with Hitachi, Sanyo, etc., but the companies under Mitsui and Mitsubishi are stuck. On the one hand, they increase the ex-factory price and on the other hand, they reduce the quantity. Obviously they are not prepared to cooperate with Lane Crawford and Tesco Electric.
Currently, in the field of home appliance sales, Japanese companies account for 70% of the sales of Tesco Group. These companies have stopped cooperating with Tesco Group, which has indeed had a big impact on Tesco.
Li Qungang, President of Tesco Group, did not expect to encounter such a difficult problem just after he took office. In order to reduce the impact of this incident on Tesco Group, he specially held a high-level meeting of the group to discuss specific countermeasures.
At three o'clock on Monday afternoon, in Li Jianhui's office, Li Qungang gave a detailed report to Li Jianhui on the specific situation and the group's response plan.
Li Jianhui was basically satisfied with the group's top management's response, but he emphasized that Tesco Group should establish a wider range of channels. Panasonic, Toshiba, Mitsubishi, Sony, etc. would not rule out Hitachi, Sanyo, etc. from taking such measures against Tesco Group.
This approach may also be adopted.
In terms of supply channels, Tesco Group needs to take more initiative. Just having two strong allies, Datong Group and Jingyi Electrical Appliances, is not enough. It also needs to find more strategic partners.
South Korea can consider it, and Western Europe should not give up. Only with more supply channels will these manufacturers not dare to be so arrogant.
Mitsubishi Mitsui's actions made Li Jianhui quite angry. It seemed that the other party would never give up until he suppressed him. He even did such a thing, killing one thousand enemies and damaging himself eight hundred.
He did not believe that without the supply of home appliances from these companies, the performance of his own Tesco Appliances and Lane Crawford Home Appliances Sales Department would suffer a significant decline.
Li Qungang will naturally not forget the well-known European and American home appliance companies, but he knows that home appliances in these two places can only be a supplement and cannot serve as the main force.
Firstly, for the same type of products, the factory costs in these two places are high; secondly, the distance is too far and transportation costs are high, so the price advantage is far inferior to that in Japan.
Now he still hopes that the technology of Datong Home Appliances can be improved and that Jingyi Electrics can complete the construction of the production base as soon as possible and officially put into production.
As long as he has the products of the two major groups as the main force, he will not worry about running out of flagship products for sale.
Moreover, when it comes to price wars, the Chinese business community has never been afraid of anyone. Think about why Hong Kong's clothing industry developed so well before. It was not because of price wars that it won a large number of OEM orders.
Mitsui Mitsubishi supports Ito-Yokado and Seibu Supermarket to enter the Asian market, and this move was made when he took office. It is clearly a slap in his face. He wants to see who is the dominant retail department store in Asia.
"At Jingyi Electrical Appliance Company, you go directly to Xu Zhichao and ask him to speed up the construction of the production base in Shekou. It doesn't matter if you spend more money. Coordinate with the senior officials of Guangdong Province to increase the number of construction units and advance the construction and decoration at the same time to ensure as much as possible.
It can be put into production on September 1st.”
As for Li Jianhui in Tianshuiwei, he is not in a hurry. There is a construction corps there, but he does not have one here.
Moreover, there are now many projects under the Xinjian Department, and the manpower of major construction companies is relatively tight. It will be good if they can maintain the current speed and ensure that they are put into use early next year.
Especially in Tseung Kwan O, not only Fai Hung City, Yan Kin Building, Hutchison Building, E-Go Building, Jiayi Building, and Fai Hung Building are also under construction. Not only is the investment huge, but the project is also huge.
Fortunately, only the Xinjian Building has a ground height of 168 meters and a planned investment of 3.5 billion Hong Kong dollars.
The ground height of the other buildings is only 99 meters, and the area is relatively small. The investment is about 2 billion Hong Kong dollars.
Li Qungang is naturally aware of the situation on the Xiangjiang side, and he has no extravagant expectations on the Xiangjiang side. As long as the Shekou side can be put into production ahead of schedule.
If Jingyi's electrical products are released one day earlier, his pressure will be reduced.
Even though the quality and reputation of Jingyi Electric's products cannot be compared with those of Panasonic, Toshiba, Mitsubishi and others, the price advantage is firmly in its hands.
After all, there are only a few customers who pursue high performance at present. The quality of Jingyi Electric's products is enough to meet the needs of most customers. He believes that with the Xinjian series as the brand and the promotion of Xinjian series groups, we will surely be able to win over Xiangjiang, Baodao, and Southeast Asia.
and the trust of mainland citizens.
When it comes to the mainland market, Li Jianhui doesn't have many options for the time being. He mainly relies on cooperation with mainland import and export companies.
But the good news is that in mid-July, he and the charter king will discuss with the mainland's Ministry of Commerce, Broadcasting Administration and other high-level officials about the entry of movies and TV series into the mainland and the establishment of theater chains.
It must be said that Li Jianhui's two large donations made the senior management have a good impression of him. Although it may not be easy to establish a theater chain, there is hope that movies, TV series and records will enter the mainland this time.
Li Jianhui is planning to discuss the issue of domestic sales of products with the leaders of the Ministry of Commerce this time. Once this market is opened, it will be of huge benefit to the development of Jingyi Electrical Appliances.
As for the e-commerce group, it should not think about expanding in the mainland for the time being, at least within the next year or two, there is no hope.
At present, Tesco is mainly entering Southeast Asia, accelerating the development of several major markets such as Singapore, Malaysia, the Philippines, Thailand, and Indonesia, so that it can become one of the major markets of the Tesco Group.
After the mainland allows foreign capital to enter, Tesco will expand into the mainland market on a large scale, allowing it to become the basic base of the Tesco Group.
When Li Qun just left, Li Jianhui asked him to hold a press conference to announce that Tesco Group would terminate its cooperation with Sony, Panasonic, Mitsubishi, and Toshiba.
He doesn't want to learn what Japanese companies do. He clearly doesn't want to cooperate, but he still finds various reasons.
Of course, the reasons for terminating cooperation will all be blamed on several major companies, and Tesco Group is definitely on the right side.
At the same time, Tesco Group will also use this opportunity to hold a supplier conference. While expanding its own procurement channels, it will also look for more strategic partners and even invest in some promising companies to control the upstream industry chain and reduce the occurrence of similar incidents.
occur.
As for the negative impact this press conference may have on Lane Crawford's stock price, this is not within the scope of Li Jianhui and others' considerations. If you enter the stock market, you must bear this risk.