Chapter Five Hundred and Twenty Eight Theory of Consumption Downgrade

Yamada Electric wants to represent our beauty equipment? Li Weidong smiled with interest when he heard the news, and then asked, What about our other products? Hair dryers, irons, etc., do they want to represent them?

I didn't mention other products, it seems that I don't want it. Wang Jiuyang replied.

That's not possible! Li Weidong shook his head and continued; I also hope to take this opportunity to enter the Japanese home appliance market! The agency of beauty instruments cannot be given alone, and other products must be used.

Then shall I reply directly to Yamada Denki? Wang Jiuyang asked.

No, I'd better go there in person. You can reply to Yamada Denki, that is, I will go to Japan to talk to them.

Li Weidong continued: Prepare me some promotional materials, product samples, and quotations, and I will bring them along.

A few days later, Li Weidong arrived at the Yamada Electric headquarters in Japan.

At the beginning, Li Weidong came to Yamada Electric to sell in person. At that time, it was Section Chief Xiaolin who was in charge of receiving Li Weidong. This was because the Section Chief Xiaolin rejected Li Weidong and made it clear that Yamada Electric would not sell Chinese brands.

Now, the person in charge of receiving Li Weidong is this Xiao Lin again.

Senior Xiaolin, we meet again. Li Weidong greeted with a smile.

Mr. Li, I haven't seen you for a long time, you are still the same! Section Chief Xiaolin showed Japanese politeness, very polite, but not enthusiastic.

After the two exchanged a few words, Section Chief Xiaolin invited Li Weidong into the reception room and introduced Li Weidong about Sangye.

After the mutual introduction, the negotiation officially began.

Mr. Li, we, Yamada Denki, are very interested in your company's beauty equipment, so we hope to obtain the right to be a sales agent. Specialist Sang Ye said.

It is my great honor to have our Puppy Electric products in Yamada Electric. Li Weidong replied with a smile.

However, I, Yamada Electric, also have conditions. If your company's products want to enter our Yamada Electric, it needs to cooperate with our business strategy. These are some details, please take a look at Mr. Li.

Specialist Sang Ye handed a document to Li Weidong, and explained at the same time: These are the unified requirements of our Yamada Electric for the settled brands, and other home appliance brands that enter Yamada Electric also need to abide by these requirements.

I understand! Li Weidong took the document and looked at it carefully.

Yamada Denki's request is nothing more than to allow Puppy Electric to give more profits, and these profits are not given to Yamada Denki, but to customers.

For example, in some preferential activities, products will be reduced in price, and this cost is required to be borne by Puppy Electric.

This is like the e-commerce platforms and takeaway platforms of later generations. When conducting activities, merchants are required to participate, and then a bunch of coupons are issued to consumers, and the final discount part is borne by the merchants.

This is equivalent to transferring the cost of promotional activities to the merchants, while the platform has not lost a penny, and will make a fortune due to the increase in sales.

In terms of merchants, those with good cost control and good sales can also make money in the event, which is equivalent to small profits but quick turnover;

Those with poor cost control may be busy working in vain, and they won't make any money at all after an event.

It will even lose money, at most it will earn a wave of traffic.

This operation is also used by Yamada Denki. They require that the brands to be settled must cooperate with Yamada Denki's business strategy. In fact, the cost of various promotional activities is passed on to the major brands of Yamada Denki.

Li Weidong has long heard that Yamada Electric is very good at squeezing product suppliers. Moreover, with the strength of Yamada Electric, even Japanese home appliance giants such as Panasonic and Sony can only retreat and accept the conditions of Yamada Electric.

Li Weidong is not surprised by Yamada Electric's request.

What's more, the matter of making a profit is nothing more than making a little less money, which is completely acceptable to Li Weidong.

As long as the products of Puppy Electric can be settled in Yamada Electric, and then enter the Japanese market, even if there is more profit, Li Weidong thinks it is worthwhile.

The low price is the advantage of Chinese manufacturing. Compared with the domestic price war that often goes into fractures, what is the benefit of Yamada Denki's request?

So Li Weidong replied: Specialist Sangye, we Puppy Electric are willing to accept these requirements of Yamada Electric.

Specialist Sang Ye nodded with satisfaction, things went so smoothly, completely beyond his expectations.

If it is a Japanese company, it is estimated that they will bargain for the conditions of Yamada Electric. At that time, there will be a period of wrangling, but Li Weidong directly agrees. For Sangye, it also saves a lot of time and energy. .

Li Weidong changed his voice and continued, But we also have a request.

Mr. Li, please speak. Specialist Sangye said.

I want to carry out a deeper cooperation with Yamada Electric. Li Weidong continued; In addition to the production of beauty equipment, we also produce various small household appliances and kitchen appliances, such as hair dryers, electric irons, etc. .

As far as I know, Yamada Denki also sells these small household appliances, so I hope our small household appliances can also enter the chain stores of Yamada Denki.

No! Director Sang Ye shook his head without hesitation: We already have several small home appliance suppliers, and many of them are big brands like Panasonic. As for small home appliances, we don't need to develop new suppliers. business.

Li Weidong showed a calm smile, and then said: Specialist Sang Ye, if this is the case, I don't need to hand over the sales agency rights of beauty equipment to Yamada Denki.

At present, our products are well sold in major drugstores. Matsumoto Kiyoshi's chain stores are no less than Yamada Denki, and they can also cover the whole of Japan. We also do not need to develop new distributors!

Hearing this, Sang Ye's eyes showed a trace of anger. In his opinion, even a home appliance giant like Panasonic has to compromise when facing Yamada Electric. A small Chinese brand dares to threaten Yamada Denki!

Li Weidong said calmly; Specialist Sangye, don't rush to refuse. Why don't you do it like this, please take a look at the samples we brought, and we will talk slowly.

Li Weidong said, and asked his subordinates to put the samples brought in in front of Specialist Sangye.

Director Sang Ye patiently looked at the sample, while Li Weidong introduced it.

Mr. Li, the workmanship of your products is indeed very good, not worse than Japanese brands. Specialist Sang Ye commented.

To be honest, a few years ago, we started OEM for Japanese brands. We receive a large number of OEM orders from Japanese companies such as Panasonic and Hitachi every year. Li Weidong said.

Specialist Sang Ye nodded: In the past few years, Japanese companies have invested in many foundries in China and Southeast Asia, and I have also heard about it.

However, most of these OEM products have flowed to other countries. Japan is still mainly made in Japan, and there are not many foreign OEM products.

What Mr. Sangye said is true. At that time, Japanese companies set up factories overseas, and the products produced were either sold in the local market or put into the third country market, and few of them were sold back to Japan.

Li Weidong explained: Although we are an OEM, we produce in full accordance with the requirements of the Japanese side. Therefore, the quality of our products can also meet the needs of the Japanese market.

Specialist Sang Ye understood that Li Weidong took the initiative to introduce the experience of Japanese OEMs to show that the products of Puppy Electrical Appliances are not shoddy, but meet Japanese requirements.

But Specialist Sangye still shook his head: You are a Chinese brand after all, even if you can produce products of the same quality, your popularity is far less than that of Japanese brands.

Mr. Li, you are also in the home appliance industry. You should know that for the home appliance industry, brand is very important. When most customers buy home appliances, the first thing they look at is not the performance of the home appliance, but the brand of the home appliance.

In terms of small household appliances, we Yamada Denki already have many well-known brands. Even if you put your products on it, it will not have good sales, but will take up space in our store.

Although our chain stores of Yamada Denki have opened all over Japan, except for those flagship stores, the other stores are still relatively small. Our store should have no extra space for non-hot-selling products.

Mr. Sang Ye, I agree with what you said. When customers choose home appliances, they do attach great importance to the brand, but there is one indicator that is more important than the brand, and that is the price!

Li Weidong said, took out a document, handed it to the special manager Sangye, and then said: Mr. Sangye, you might as well take a look at the quotations of our various products!

Specialist Sang Ye took over the document, carefully looked at the quotation above, and couldn't help but say, It's so cheap!

Price is always the most sensitive factor for consumers! Before I came here, I did research. Our small home appliances are more than one-third cheaper than similar products on the Japanese market. Li Weidong replied.

Specialist Sang Ye took a deep breath. Of course, he knew that consumers were extremely sensitive to commodity prices. As long as the price was low enough, it didn't matter if you were a big brand!

It's human nature to take advantage, and even billionaires don't want to waste money when they buy things.

The low price is definitely a killer for selling any item!

Specialist Sang Ye can foresee that if there is a product whose price is one-third lower than the price of similar products on the market, even an unknown brand can have a place in the market.

Specialist Sang Ye lowered his head and thought for a moment, then shook his head: Mr. Li, if you sell goods at a lower price by one-third, you are breaking the rules of the market.

At that time, our Yamada Electric will also arouse opposition from other suppliers who have long-term cooperation with us. So very sorry, we Yamada Denki cannot sell your products.

Mr. Sang Ye, have you considered downgrading consumption? Li Weidong asked with a smile.

Consumption downgrade? What is that? Director Sang Ye asked with a puzzled look.

Consumption downgrade is a new word on the Internet in later generations. Of course, Sang Ye has never heard of it.

Li Weidong explained: Consumption downgrade is relative to consumption upgrade. Simply put, when consumers buy goods, they will reduce efficiency, experience, personality, and taste to a certain extent.

That is, to achieve the highest possible quality and low price. In layman's terms, when the quality of goods is not much different, you can sell cheap ones, but not expensive ones.

For example, originally exercising in the gym, but later exercising at home, saving money from going to the gym, this is consumption downgrade.

Another example is someone who originally planned to go to a western restaurant to eat expensive western-style pasta, but then went to a roadside ramen restaurant to eat cheap miso ramen, which is also a consumption downgrade.

The downgrade of consumption is bound to happen in times of economic downturn. Recently, Japan's economy has not been very prosperous, has it? At present, Japan is already in a state of consumption downgrade.

Specialist Sang Ye frowned. He realized that what Li Weidong said was indeed happening in Japan. Today's Japanese, because of the economic downturn, reduce consumption, or reduce consumption requirements.

Western restaurants have fewer customers, and roadside ramen shops have really improved their business.

Li Weidong went on to say: Mr. Sangye, you should have heard about the economic situation of Southeast Asian countries, right? Now that the financial crisis has broken out in Southeast Asia, it is difficult to recover in the short term, which will inevitably affect Japan's economy.

Therefore, for a long time in the future, Japan's economy will be in a recession like it is now, and Japan's consumer market will also be in a consumption downgrade for a long time.

In this market environment, if the retail industry wants to survive, it must cater to consumers and sell some cheap commodities. If it keeps selling expensive commodities, it will inevitably fall into long-term losses in this economic environment.

I think Mr. Kuangye does not want Yamada Denki to lose money for a long time, right? Choosing our puppy electrical products is the right way to cater to consumption downgrades and consumers!

Hearing the words long-term loss, Director Sang Ye was shocked.

Not to mention long-term losses, even if it loses another year next year, the board of directors will fire itself!

It's still important to keep your position. If you lose your job, you'll really have to kill yourself!

...

In the database of Nanzhou Metropolis Morning Post, Zhao Liang boredly held an old English newspaper and read the news on it.

The last time I reported on Ghost Castle, Zhao Liang was slapped in the face for a while, and his report was also criticized by Focus Talk. This punishment is definitely indispensable.

So Zhao Liang was demoted from a front-line reporter to the database and became a data administrator.

This errand is quite leisurely, it is nothing more than archiving the information of the newspaper, without any technical content.

Fortunately, there are newspapers and publications from the past in the database of the newspaper. When Zhao Liang is bored, he will take a look at the newspaper or publication to relieve his depressed mood.

On this day, Zhao Liang took another stack of American newspapers to read.

The content of foreign newspapers is naturally much more interesting than domestic newspapers. Even if these newspapers were published in 1996, Zhao Liang still enjoys reading them.

Inadvertently, Zhao Liang turned to the sports news section.

Ten million boys? This high school student named Kobe Bryant actually got an endorsement contract of ten million dollars! Americans are really rich. Ten million dollars is enough for me to spend ten lifetimes! Zhao Liang revealed envious expression.

But then, the name of Feiyue brand came into Zhao Liang's eyes.

FeiYue? This is Pinyin, right? Feiyue? Feiyue? There are rubber shoes in China, isn't it called Feiyue? Zhao Liang thought to himself.

Continue to read this news, there will be an introduction to the Feiyue brand later.

A brand from China with a history of more than 60 years? Is it really the old Feiyue rubber shoes?

Zhao Liang was also bored and decided to find out. He picked up the phone, checked the phone number of Feiyue Factory from the telecommunications bureau, and dialed it.

Hey, hello, I'm a reporter for the Nanzhou Metropolis Morning Post! There is something about Feiyue rubber shoes, I want to know about it!

Zhao Liang still used the banner of a reporter, and then asked about Feiyue brand.

The identity of a reporter is indeed very useful. The rubber shoe factory did not hide it, but revealed the news of the sale of the Feiyue brand to Li Weidong.

After putting down the phone, a look of excitement appeared on Zhao Liang's face.

This Li Weidong is the Li Weidong who developed the wholesale mall in Qinghe, you've hurt me badly! It's so obvious, and now I've finally caught your hand.

Ten million dollars for an unknown American high school student is a typical waste of foreign exchange! Foreign exchange is so precious, you waste 10 million all at once. This time I'm going to let you go around without food!

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