Chapter 388 Made in China!

Thanksgiving is an important holiday in the United States, and after Thanksgiving, the United States will usher in the annual shopping festival, the so-called Black Friday.

On this day, the mall will launch the biggest discounts and promotions of the year, and Americans are also used to shopping frantically on this day.

On the eve of Black Friday, merchants will announce the discount list of products in advance, and some merchants even regard the discount list as a commercial secret, and will not announce the relevant information until the last day.

With a discount list in one hand and a pen in the other, Mrs. Smith kept circling the items she planned to buy on the discount list. It looks like the pickpockets in the Double Eleven family are frantically adding to the shopping cart.

The original price of Panasonic's microwave oven is $629, and the discounted price is only $579. This price is still very good. Mrs. Smith thought about it and circled a Panasonic microwave oven on the discount list.

Then Mrs. Smith saw the message on the Whirlpool microwave.

Whirlpool microwave oven, the original price is $649, and the discounted price is also $579, which is the same price as Panasonic's microwave oven!

Mrs. Smith was slightly taken aback. In his impression, the price of American brands has always been higher than that of Japanese brands, but now it is the same as the price of Japanese brands, which is really rare!

Since the price is the same, then we must choose Whirlpool! Mrs. Smith did not hesitate to draw a circle on the Whirlpool microwave, and then made a fork on the Panasonic microwave.

For Americans, the only reason they choose Japanese brands is because they are cheap.

In the 1960s and 1970s, after Japanese products entered the American market, they were known for their copycats and poor quality, but their low prices greatly impacted the American manufacturing industry. By the end of the 1970s, the United States also launched a boycott of Japanese products. At that time, there were also Americans who smashed Japanese cars.

After the 1980s, the quality of Japanese products has been significantly improved, and at the same time, it has gradually moved from the cottage to the road of independent research and development.

However, for those Americans who have experienced the 1960s and 1970s, their impression of Japanese manufacturing is still at the level of copycats and poor quality, so when American brands and Japanese brands are the same in price, American consumers will of course Choose American brands without hesitation.

...

On Black Friday, before dawn, a large number of customers lined up at the entrance of the mall, and some of them had already arrived last night.

The moment the mall's doors opened, customers rushed into the mall like crazy and started throwing things into their carts.

In front of the microwave oven counter, customers looked at the price of Panasonic microwave ovens, and then looked at the price of Whirlpool microwave ovens, and without hesitation, they reached out to Whirlpool microwave ovens.

After a while, the Whirlpool microwave ovens on the shelves were emptied, while the Panasonic microwave ovens did not sell a few units.

A customer who didn't buy a Whirlpool microwave couldn't help complaining to a passing mall manager: Manager, you should restock the microwave here!

I've already sent someone to pick up the goods from the warehouse. The manager paused, and then said, Madam, you can also look at other brands, such as the Panasonic microwave oven over there, which has always sold very well.

For shopping malls, it doesn't matter which brand you sell, anyway, as long as you sell it, you can make money.

The customer shook his head: The price of a Panasonic microwave oven is $579, and the price of a Whirlpool microwave oven is also $579. Since the price is the same, why should I buy a Japanese brand!

Another customer next to him also helped: Since the prices are the same,

Unless you are a fool, you will choose Japanese products!

The manager pondered in his mind, and it seemed that this was the truth. Since the price of Whirlpool and Panasonic was the same, it would be a bit silly to buy a Panasonic microwave oven! If it is my own, I will also choose to buy American brands.

Even if the Whirlpool microwaves on the shelves are out of stock, customers still won't choose to buy a Panasonic microwave.

After all, other customers buy American brands, but they can only buy Japanese brands for the same amount of money. Compared with the hatchback, they would rather not buy a microwave oven than be seen as a fool!

...

After the end of Black Friday, the shopping mall began to take stock of the sales situation, and then fed back to the various agents, who then reported the sales situation of the products to the manufacturers.

Whirlpool headquarters, at a management meeting, the director of marketing is reporting Black Friday sales to a group of executives.

Finally talking about the microwave oven, I just heard the director of the marketing department say: The sales of our microwave ovens have increased by 70% year-on-year compared with last year's Black Friday.

Growth so much? Whirlpool's aging CEO interrupted the marketing director.

The director of the marketing department saw that the CEO had doubts about the data, so he said affirmatively: Yes, sir, I have personally verified the data of the full-dollar dealers and found no problems.

The sales data comes from various dealers in the United States. If there are problems with the data of certain dealers, it is possible, but the statistics of all dealers in the United States have problems, it is absolutely impossible.

Why did the sales of microwave ovens increase so much on Black Friday this year? There shouldn't be any economic stimulus policies from the government recently, right? the CEO of Nianbu then asked.

If it is caused by the economic stimulus policy, then the sales of other household appliances should also increase, but the sales of other household appliances are normal, only microwave ovens have increased, so it is not caused by policy reasons.

The director of the marketing department paused, then said: According to the analysis of our marketing department, the reason why the sales of microwave ovens has increased significantly is because we have lowered the price of microwave ovens.

In the past, the price of our microwave oven was about 20 US dollars more expensive than Japanese products. Now we have lowered the price of microwave ovens to the same level as Japanese microwave ovens. Many customers who originally planned to buy Japanese microwave ovens choose to buy our microwave ovens. Therefore, our microwave ovens Yields will increase dramatically!

It turned out to be price cuts! An executive curled his lips in disdain. In his view, price cuts also mean lower profits, which is the least technical marketing method.

The director of the marketing department saw the executive's thoughts, and he immediately said: Although we have lowered the price of microwave ovens, the net profit we get from selling each microwave oven has not decreased. Instead, it has increased. .

All the microwave ovens we sell now are OEM by Chinese companies. Our OEM only charges a OEM fee of US$15 for each microwave oven, which greatly reduces our production costs.

Considering that the processing cost of each microwave oven was above US$45, even if we cut the price by US$20, the net profit would still increase, or we still have room for price reduction.

Hearing this conclusion, the executives were unmoved.

The price fell and the net profit rose. That is to say, the 70% increase in sales on Black Friday will bring about more than 70% increase in profits!

An executive let out a long sigh and said, This result should be what the board of directors wants to see most, and it should be mentioned in next month's financial report.

For management, the board of directors is always a big knife hanging over their heads. Management exists to satisfy the board of directors.

When it came to the board of directors, the elderly CEO had a worried expression on his face, and only listened to him speak;

The guys on the board only have money in their eyes. If they find out that moving the factory to China and letting the Chinese do the OEM for us can save so much cost, then they will definitely ask for other The factories have also moved to China, and by then our factories in the United States will probably usher in the end!”

...

Several companies are happy and some are worried. While Whirlpool is excited about the increase in sales of microwave ovens, Panasonic's headquarters in the United States is worried about the sales of microwave ovens.

In the conference room, Takamiya, the president of Panasonic North America, had a pale face. Takamiya was only sent to North America as president three months ago. Black Friday was his first major battle after taking office, but he did not expect this battle to be fought. is not pretty.

I saw Takamiya Yuto whispered at the crowd: On Black Friday, the sales of our microwave ovens decreased by a full 80% compared to last year! Who can tell me, what is going on with you?

Mr. President, we have conducted an investigation. The reason why our microwave oven sales plummeted on Black Friday was because Whirlpool in the United States had a price war against us, and they lowered the price of microwave ovens to the same level as ours.

The speaker was Shigeru Inoue, head of the North American Marketing Department of Panasonic.

Inoue is a Japanese surname, and in the shogunate era, Inoue was also a Japanese aristocratic surname. This Inoue Shigeru is said to be of noble blood, and his family background is not ordinary. He came to the United States to study in high school.

Takamiya was afraid of Shigeru Inoue's family background, so he calmed down a little and asked, Since the price is the same, it's at most 50%, why does our microwave oven sales drop by 80%?

Mr. President, Americans still don't trust our Japanese brands. When I first came to study in the United States, it happened that Americans were boycotting Japanese products. At that time, our Japanese products suffered heavy losses.

Shigeru Inoue paused, then explained: If American brands and Japanese brands have the same price, Americans will definitely give priority to American brands, and they won't consider Japanese brands unless they have to buy it.

In the United States, it is difficult for our products to compete with American brands without a price advantage. But what I didn't expect was that Whirlpool would use a price war to deal with us!

Can't Whirlpool use the price war? Takamiya asked subconsciously.

If Whirlpool could use the price war, they would have used it 20 years ago. Of course, when Panasonic first entered the United States, the American home appliance companies could use the price war to drive our Japanese products out. But they did not No! Shigeru Inoue replied.

Gao Gong nodded: I know this. In order to deal with our products, the Americans used Section 301 of the Trade Act. Later, in order to reduce the trade deficit, they even asked us to sign the Plaza Accord.

Mr. President, you are right. From what I know about Americans, if they cannot gain the upper hand in the competition, the first thing they think of is not to increase their competitiveness, but to try to reduce the competitiveness of their opponents. Even some very despicable means will be used!

Inoue continued: So even when Japanese products entered the United States in large numbers, Americans did not use price wars, but increased tariffs to restrict our products. Now that we have successfully established a foothold in the United States, Panasonic has begun to use them. There's a price war, which strikes me as very strange!

I think the reason why Americans started to use price wars is precisely because we have posed a huge threat to them, so they have to use price wars to keep the market! Takamiya said confidently.

The first time Takamiya arrived, he still had the best set of ideas in the world made in Japan.

However, Shigeru Inoue has lived in the United States for many years and is very familiar with the urine nature of American companies. He obviously does not believe in Takamiya's judgment.

Inoue Shigeru planned to open his mouth to remind Takamiya Yuren, but he swallowed the words when they reached his lips. After all, in Japanese corporate culture, questioning your boss is not something your subordinates should do.

I just listened to Takamiya and continued: Since Whirlpool is going to fight us on price, then we will accompany us to the end. From tomorrow, our microwave ovens will also start to cut prices, and we must grab the market back!

...

Around Christmas, Panasonic's microwave ovens had three price cuts.

However, every time Panasonic cut prices, Whirlpool did not hesitate to follow up. Panasonic dropped the price by $10, Whirlpool also cut the price by $10, Panasonic dropped the price by $15, and Whirlpool also cut the price by $15. The price of microwave ovens from Panasonic and Whirlpool is always at the same level.

In the North American market, as long as the price of Panasonic and Whirlpool microwave ovens are the same, American consumers will naturally choose Whirlpool over Panasonic.

This month, Panasonic continued to cut prices, but the sales of microwave ovens continued to decline.

Microwave ovens are, after all, a highly profitable kitchen appliance, and the plummeting sales of microwave ovens also directly affected Panasonic's annual report in North America.

The figures in the annual report were not good, and Takamiya Xiongren couldn't sit still. He held a meeting again to discuss countermeasures.

Our microwave ovens have dropped in price, and Whirlpool's microwave ovens have also dropped in price. It seems that they are going to fight the price war to the end, and they plan to stay with us forever! We must not back down at this time!

Takamiya Yuto has a determined expression on his face, like a samurai who is about to break the jade.

Inoue Shigeru said, Mr. President, don't you think there is something strange? With the production cost in the United States and the confidence they brought, they are fighting a price war with us?

The exchange rate of the yen is going up again recently! Yuto Takamiya said subconsciously.

Even if the exchange rate of the yen rises, the production cost in the United States is still one-half higher than in Japan. Inoue Shigeru continued; Mr. President, I specifically went to learn about the production of Whirlpool's microwave ovens. It turns out that they have already transferred Milwaukee to Milwaukee. The microwave oven factory was shut down.

Where are Whirlpool's microwave ovens made? Did they move to a state with lower production costs? Takamiya asked.

Mr. President, I deliberately bought a microwave oven made by Whirlpool, please allow me to bring it, and then the truth will be revealed. Shigeru Inoue said.

Takamiya nodded, and Shigeru Inoue got up immediately, walked out of the conference room, and moved in a microwave not long after.

Shigeru Inoue pointed to the label on the microwave oven and said, Mr. President, please read the label.

Takamiya Yuren looked down, and one of the very eye-catching English letters on the label caught his eye.

MadeinChina!