Chapter 528 Consumption downgrade theory

Yamada Denki 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, electric irons, etc. Do they want to represent them?

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

That's impossible! Li Weidong shook his head, and continued; I still hope to take this opportunity to enter the Japanese home appliance market! Beauty instrument agency rights cannot be granted alone, and other products must be combined.

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

No, I'd better go there myself. You go and 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'll take them with me.

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

At the beginning, Li Weidong came to Yamada Denki to sell products in person. At that time, the person in charge of receiving Li Weidong was Kobayashi, who rejected Li Weidong and made it clear that Yamada Denki would not sell Chinese brands.

Now the person in charge of receiving Li Weidong is this Section Chief Xiao Lin.

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

Mr. Li, I haven't seen you for a long time, but you are still as handsome as ever! Mr. Kobayashi 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 Mr. Sangye to Li Weidong.

After introducing each other, the negotiations officially began.

Mr. Li, we at Yamada Denki are very interested in your company's beauty equipment, so we hope to obtain sales agency rights. Executive Sang Ye said.

It's a great honor for me to be able to enter Yamada Denki's products from Puppy Electric. Li Weidong replied with a smile.

However, I, Yamada Denki, also have conditions. If your company's products want to enter our Yamada Denki, they need to cooperate with our business strategy. Here are some detailed rules, please read it over, Mr. Li.

Sang Ye handed a document to Li Weidong, and explained at the same time; These are the unified requirements of our Yamada Denki brand for the settled brands. Other home appliance brands, settled in Yamada Denki, also need to abide by these requirements.

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

The request made by Yamada Denki is nothing more than to let Puppy Electric make 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 promoted, and this cost is required to be borne by Puppy Electric.

This is like the e-commerce platforms and food delivery platforms of later generations. When engaging in activities, merchants are required to participate, and then a bunch of coupons are sent to consumers, and the final discount part is borne by the merchants.

This is equivalent to passing on the cost of promotional activities to the merchants, and the platform does not lose a penny, and it will also make a fortune because of 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;

If the cost control is poor, it may be a waste of work. After an event, you will not make any money at all, or even lose money. At most, you will earn a wave of traffic.

The operation used by Yamada Denki is also this kind of operation. They require brands to enter, and they must cooperate with Yamada Denki's business strategy. In fact, they pass on the cost of various promotional activities to the major brands that have settled in Yamada Denki.

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

Li Weidong is not surprised by Yamada Denki's request

What's more, things like giving up profits are nothing more than making a little less money, which is completely acceptable to Li Weidong.

As long as Puppy Electric's products can enter Yamada Denki and then enter the Japanese market, Li Weidong thinks it is worthwhile even if there is a little more profit.

Low price is the advantage of Chinese manufacturing. Compared with domestic price wars that are frequently fought in fractures, what is the benefit that Yamada Denki requires?

So Li Weidong opened his mouth and replied: Executive Sangye, we, Puppy Electric, are willing to accept these requests from Yamada Denki.

Manager Sang Ye nodded in satisfaction. Things went so smoothly, which completely exceeded his expectations.

If it was replaced by a Japanese company, it is estimated that they will bargain for Yamada Denki's conditions, and then there will be a period of wrangling, but Li Weidong directly agrees to it. force.

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

Mr. Li, please tell me. Executive Sang Ye said.

I would like to have a deeper cooperation with Yamada Denki. Li Weidong continued; In addition to 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 home appliances, so I hope our small home appliances can also enter Yamada Denki's chain stores.

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

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

At present, our products are selling well in major drugstores. The chain stores of Matsumoto Kiyoshi are not less than Yamada Denki, and they can also cover the whole of Japan. We also do not need to open up new distributors!

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

Li Weidong said in a calm manner; Professor Sang Ye, don't rush to refuse. How about this, please take a look at the samples we brought, let's talk slowly.

As Li Weidong said, he asked his subordinates to put the samples they brought in front of Sang Ye's executive.

Manager Sang Ye looked at the samples patiently, while Li Weidong introduced them from the side.

Mr. Li, the workmanship of your products is indeed very good, not inferior to Japanese brands. Executive Sang Ye commented.

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

Executive Kuwano nodded: A few years ago, Japanese companies invested in many foundries in China and Southeast Asia, and I 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 OEM products abroad.

What Mr. Kuwano said was true. At that time, Japanese companies built factories overseas, and the products they produced were either sold in the local market or put into the market of a third country. 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.

Manager Sang Ye understood that Li Weidong took the initiative to introduce the experience of OEM to Japanese companies in order to show that the products of Puppy Electric are not crudely manufactured, but meet Japanese requirements.

But Mr. Kuwano still shook his head: After all, you are a Chinese brand, 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 brand is very important to the home appliance industry. 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 home appliances, our Yamada Denki already has many well-known brands. Even if your products are displayed, there will be no good sales, but it will take up space in our store.

Although our chain stores of Yamada Denki have opened all over Japan, except for the few flagship stores, the space of other stores is relatively small. Our stores do not have extra space to display non-hot products.

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

As Li Weidong said, he took out a document and handed it to the executive Sang Ye, and then said: Mr. Sang Ye, you might as well take a look at the quotations of our various products!

Specialist Sang Ye took 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! I did research before coming here, and our small home appliances are more than one-third cheaper than similar products on the Japanese market. Li Weidong replied.

Executive Sang Ye took a deep breath. Of course he knew that consumers are extremely sensitive to commodity prices. As long as the price is low enough, it doesn't matter if you are a big brand or not!

It is human nature to take advantage, and even a billionaire is unwilling to waste money when buying things.

The low price is definitely a killer feature for selling any product!

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

After thinking for a moment, Sang Ye lowered his head and still shook his head: Mr. Li, if you sell the product at a price lower than one-third, it is tantamount to breaking the rules of the market.

At that time, Yamada Denki will also cause opposition from other suppliers, and these suppliers have long-term cooperation with us. So sorry, we at Yamada Denki cannot sell your products.

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

Consumption downgrade? What's that? Sang Ye asked with a puzzled look on his face.

Consumption downgrade is a new term on the Internet in later generations, of course, Mr. 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 level of high quality and low price. In layman's terms, when there is not much difference in product quality, if you can sell cheap ones, you will not sell expensive ones.

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

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

The downgrade of consumption will inevitably happen when the economy is in recession. Recently, Japan's economy has not been very prosperous, right? Japan is currently in a state of consumption downgrade.

Executive Sang Ye frowned, and he realized that what Li Weidong said was indeed happening in Japan. Today's Japanese are reducing consumption, or lowering their consumption requirements, because of the economic downturn.

The number of customers in the western restaurant has decreased a lot, and the business of the ramen shop on the side of the road has really improved.

Li Weidong went on to say: Mr. Sang Ye, you should have heard about the economic situation of Southeast Asian countries, right? Now the financial crisis has broken out in Southeast Asia, and it will be difficult to recover in the short term. This will definitely affect Japan's economy.

Therefore, for a long time to come, Japan's economy will be in a sluggish state 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 products. If it keeps selling expensive products, it will inevitably fall into long-term losses in this economic environment.

I think Mr. Kuwano doesn't want Yamada Denki to suffer long-term losses, right? Choosing our Puppy Electric products is the right way to cater to consumption downgrades and consumers!

Hearing the words long-term loss, Executive Sang Ye was startled.

Let alone a long-term loss, even if it loses another year next year, the board of directors will fire itself!

It is still important to keep your position. If you lose your job, I am afraid that you will really commit seppuku!

In the database of Nanzhou Metropolis Morning Post, Zhao Liang was bored holding an old English newspaper and reading the news on it.

The last time he reported on the ghost castle, Zhao Liang was slapped in the face for a while, and his own report was also criticized by Focus Talk. This punishment must be indispensable.

So Zhao Liang was demoted from a frontline reporter to a database and became a data administrator.

This errand is also leisurely. It is nothing more than filing and archiving the materials of the newspaper office, without any technical content.

Fortunately, there are past newspapers and publications in the database of the newspaper office. When Zhao Liang was bored, he would take a look at that newspaper or publication to ease his depression.

Today, Zhao Liang picked up a stack of old American newspapers and read them again.

The content of foreign newspapers is naturally much more interesting than domestic newspapers. Even though these newspapers were published in 1996, Zhao Liang still read them with gusto.

Inadvertently, Zhao Liang turned to the sports news section.

Millions boy? This high school student named Kobe Bryant actually got an endorsement contract worth tens of millions of dollars! Americans are really rich. Ten million dollars is enough for me to spend ten lifetimes! Zhao Liang showed envy expression.

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

Feiyue? Is this the Chinese pinyin? Feiyue? Feiyue? There is a rubber shoe 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 idle and bored, so he decided to find out. He picked up the phone, found the phone number of Feiyue Factory from the telecom bureau, and dialed it.

Hi, hello, I'm a reporter from Nanzhou Metropolis Morning Post! There is something about Feiyue rubber shoes, I want to know more about it!

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

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

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

This Li Weidong is the Li Weidong from the Qinghe Development and Wholesale Mall, you have done me a terrible job! The heavens have eyes, and now I have finally caught you.

Ten million dollars, to an unknown American high school student, this is a typical waste of foreign exchange! Foreign exchange is so precious, you will waste 10 million at once. This time, I'm going to make you go hungry!

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