Peng Wanhua nodded in approval.

He finally understood what Li Jingwei meant.

Don't engage in price wars, it's not worth it for that little market share.

It would be better to utilize your existing advantages in channels, R&D, production, etc. to directly open up a new battlefield!

At present, the revenue is greater than that of Coca-Cola.

He couldn't help but give a thumbs up for its excellent idea and layout!

"Okay, let's do this according to your strategy."

Most of the time, Peng Wanhua would not decide for his subordinates what to do.

Basically, power is delegated to the people below to make decisions on their own.

At most, I would ask about the strategic direction and the results of some key projects.

Sometimes, these tasks are even done by the family office.

In fact, he didn't need to worry about anything in this domestic product war, and he was very confident in leaving it to Li Jingwei.

After saying that, he looked at Levi.

Li Wei quickly said, "My decision is similar to Li Jingwei's. The TV market is booming right now, but the air conditioner, refrigerator, washing machine, and kitchen heating market is still a blue ocean."

"The current color TV market is highly competitive, and companies like Changhong, TCL, Haier, and Panda are all leading domestic companies."

"But the white goods market is not that competitive. The overall air-conditioning market is dominated by Chunlan in the north and Huabao in the south."

"In 94, Chunlan Air Conditioning achieved a revenue of 53 billion yuan and a net profit of 6 million yuan, making it the leader in the air conditioning industry. Huabao's annual revenue exceeded 10 billion yuan, making it the second largest in the industry."

Peng Wanhua nodded slightly.

In his impression, Chunlan and Huabao were the leaders in the industry at that time, while up-and-coming companies such as Gree and Midea had not yet developed.

Li Wei continued, "But both companies have fatal flaws. The first is Chunlan. Last year, Chunlan's top boss Tao Jianxing entered the motorcycle industry with 20 billion yuan."

"Not long after, two star products were launched: Chunlan Tiger and Chunlan Leopard, each priced at 5000 yuan."

"With the slogan of riding a tiger to drive away a leopard, and the reputation of Chunlan, we sold 6 units in just half a year, with a revenue of million yuan."

"Although it has brought in a certain amount of revenue in the short term, from the perspective of industrial layout, Chunlan's path of diversification has huge problems!"

"Motorcycles have nothing to do with Chunlan's main business of air conditioners. Entering the motorcycle industry will actually damage Chunlan's own brand and distract its attention."

Last year, Levi's Wanwei Group's global revenue increased by more than 150 billion RMB due to the surge in mobile phone and VCD businesses.

Even so, he did not dare to cross over to other fields besides electronic products.

In order to focus on the electronics field, he even split off Wanwei Electric.

The large home appliance business was separated into Huawei Electric Appliances.

Small household appliances and sockets, extension strips and other products were spun off to form Wanniu Electric Appliances.

In short, all energy is focused on the main business of electronic information.

Chunlan became so proud of itself for becoming the industry leader that it took a big step into the motorcycle industry. In Li Wei's opinion, this was simply a suicidal act.

Peng Wanhua nodded slightly, motioning him to continue.

Li Wei said: "Even so, the other party still seems to have not discovered this problem, and is even negotiating an acquisition with Nanjing Dongfeng Motor Company, hoping to further enter the heavy truck industry!"

"The other party started out by focusing on its main products, but now that it has risen, it has given up its own advantages. There is no doubt that Chunlan's actions will inevitably disperse its brand influence and its main business, and the decline of its air-conditioning business is inevitable!"

"As for Huabao, although nominally it is the second largest in the industry, in fact Huabao has begun to stagnate. At the end of the year before last, that is, at the end of 1993, they accepted investment from a Hong Kong enterprise."

"But now, there are many conflicts between the management of Huabao and the holding company in Hong Kong, which has caused chaos within Huabao."

"With strong enemies outside and internal struggles going on, it is foreseeable that Huabao Air Conditioning will decline in the future."

"The two leading air conditioners are both in decline, which is our opportunity. So instead of increasing our investment in the color TV war, we should take advantage of the crisis of Chunlan and Huabao to increase our investment in air conditioners and take over the leading position in the air conditioner field!"

Peng Wanhua nodded, Li Wei's prediction was indeed correct.

He remembered that in his previous life, Chunlan was heavily in debt in the early 1980s and ranked last in the refrigeration industry.

Later in 1985, Tao Jianxing came to power.

He found that Chunlan Factory had four major series and more than 40 products, but no flagship product.

So under his leadership, more than 30 products were directly cut off, and instead the company focused on air conditioners.

Ten years later, Chunlan has captured 30% of the national air-conditioning market.

Among them, air-conditioning models with a calorie of more than 7000 kcal have a monopoly over 80% of the market share!

In terms of scale, Chunlan has become the number one air-conditioning company in China and the seventh in the world!

How big is Chunlan's lineup?

Zhu Jianghong, the founder of Gree, later publicly stated: As a fan of Chunlan, Gree has always been imitating Chunlan.

However, even though Chunlan had such a strong momentum at that time, it eventually declined.

Peng Wanhua remembers that in addition to motorcycles and heavy trucks, Chunlan later entered various fields and industries, rushing towards death!

Like washing machines, refrigerators, televisions, real estate, hotels, integrated circuits, LCD monitors, high-energy batteries, etc.

If Chunlan were to focus on white goods and enter the washing machine and refrigerator fields, Peng Wanhua could still understand it.

Even making televisions, Peng Wanhua could still understand it.

But he couldn't understand real estate, hotels, integrated circuits, LCD screens, and high-energy batteries.

Is one person or one company so capable?

As expected, Chunlan declined.

From a giant with revenue exceeding 10 billion RMB, it eventually fell to a small brother with annual air conditioner sales of only 60,000 units and revenue of less than 200 million.

What a pity.

It can only be said that Chunlan was born out of focus, but was destroyed by lack of focus and cross-border operations.

As for Huabao, within two years of internal struggle, it was acquired by other companies.

Both companies are facing big problems now, and it is really good that Levi can see such a situation and opportunity.

"Okay, just go ahead and do it." Peng Wanhua nodded in approval.

"Okay, thank you brother." Li Wei said happily, and then he added: "In addition to air conditioners, as people's living standards improve, the demand for refrigerators, washing machines, kitchen heating appliances, and small appliances will increase significantly.

We are also making arrangements in this regard, including acquiring some state-owned factories and local manufacturers. For example, in Shunde, there is a company called Meidi, which is a small home appliance company. We have already completed the control of it. "

"Beautiful place?" Peng Wanhua was stunned.

The image of the home appliance giant in his previous life with revenue exceeding 300 billion and net profit exceeding 30 billion emerged in his mind.

"Yes, although the current revenue is only a few hundred million, their founder, Mr. He, is a man of great courage and ideas. Fang Bo applied to me for investment and controlling stake in the company at that time, and I agreed after an investigation." Li Wei said.

Peng Wanhua suddenly understood.

It really is that one.

Then he asked doubtfully: "Who is Fang Bo?"

Li Wei: "Fang Bo is the general manager of Huawei Electric Appliances. When the Foshan government invited me to invest, it was him who was sent over.

"By the way, what a coincidence, Fang Bo is your fellow villager," he added.


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