Rebirth in 1985

Chapter 681 Breaking Through the Bottleneck

The second phase of the Asian financial crisis has come to a temporary end, with more than two months left before the official closure. Both Lu Shaohua and Li Yunqing breathed a sigh of relief. However, Qin Sichen could not relax. She felt the pressure increasing.

In Asia, the financial crisis has had an impact on the economy, the market has shrunk, and Phoenix Group's product sales have also been shrinking little by little, dealing a devastating blow to the group.

That would be fine. Losing the Asian market would have an impact on a multinational group like Phoenix Group, but it would not have reached the point of being in trouble. However, due to the impact of the Asian financial crisis, the economies in Europe and the United States have also experienced some problems, which are very unfavorable to Phoenix Group.

"Some signs have also appeared in European and American countries. Now the volume of Phoenix Group's product orders shows signs of decline, which has a certain impact on the group." Qin Sichen said leisurely.

Qin Sichen was curious about what Lu Shaohua was doing in the study all day, but she also wanted to talk to Lu Shaohua about the difficulties the group was facing and ask Lu Shaohua for some advice to see if the group's current difficulties could be resolved.

"Yeah!" Lu Shaohua responded, but he didn't answer so quickly. Instead, he fell into thought and continued after a long time. "It's just the beginning now."

Lu Shaohua's tone was very positive. After throwing out a sentence, he looked at Qin Sichen's reaction. Seeing that the latter did not intend to interrupt, Lu Shaohua continued. "It is inevitable that the Asian financial crisis will intensify. It has a certain impact on the global economy now, but the impact is not great. As it evolves, in the near future, it may drag the world into the water and cause a global financial crisis."

Lu Shaohua was definitely not just talking nonsense, what he said had a basis, because he brought the memories of his past life. Since he said it would cause a global financial crisis, it would definitely happen, Qin Sichen believed it without a doubt.

There was no other way. Qin Sichen was the only one who knew that Lu Shaohua was a reborn person. She also believed that Lu Shaohua would not joke about such things. Now that things had come to this, Qin Sichen's first reaction was: "What should I do?"

The global financial crisis has not yet broken out, but it has had a certain impact on Phoenix Group. If it really breaks out, how great the impact will be on Phoenix Group, a multinational company? Qin Sichen understood it immediately.

And what about Lu Shaohua? It is true that he is a reborn person, but the global economic recession is not something he can save alone. The only thing he can do is to calm down the Phoenix Group and minimize the losses.

How can we minimize the losses?

This is another problem, one that needs to be solved urgently.

"Are there any more production restrictions in Shenzhen now?" Lu Shaohua suddenly asked.

Before the Asian financial crisis broke out, the Phoenix Base in Shenzhen began to restrict production under Lu Shaohua's order, but the restriction of production at that time resulted in Phoenix Group being besieged by competitors. In the end, Lu Shaohua had no choice but to relax the restrictions and increase some to cope with the counterattack.

The situation is different now. It was obviously impossible to relax the restrictions at that time. If we wait until the storm breaks out globally, further restrictions will be of no avail.

"No measures have been initiated there." Qin Sichen paused and explained, "Although there is some impact now, the extent of the impact is not very large. In addition, our sales system covers a wide range. If you don't pay attention, you will basically not feel the impact, so there is no further restriction."

Qin Sichen is different from others. She knows the outcome and the extent of the damage caused by the Asian financial crisis. Even if Lu Shaohua had not reminded her that the financial crisis would sweep the world, Qin Sichen knew that it would have a certain impact to a certain extent.

It was because Qin Sichen was aware of this that she paid more attention to it. In addition, Qin Sichen's sharp eyes discovered the abnormal sales of the group's products, so she mentioned it to Lu Shaohua. It would have been better if she hadn't mentioned it. Once she mentioned it, Qin Sichen got another explosive information - the financial storm would sweep the world.

Lu Shaohua already roughly understood the intention of Qin Sichen's words today. He was just a little worried at the beginning. Now after receiving the news he gave, Qin Sichen became even more worried and wanted to find a way to deal with it.

"There are still more than two months left." Lu Shaohua said without thinking, and then added, "We still have two months to prepare. The storm will break out in two months."

Lu Shaohua was giving a timetable and an exact time to Qin Sichen, and was also reminding Qin Sichen that he still had two months to make arrangements. Thinking more deeply, it was reminding Qin Sichen that production must be limited and it must be limited within these two months.

"I understand." Qin Sichen nodded solemnly and spoke.

Qin Sichen is a smart person. She can understand some things without having to explain them so clearly. What's more, Lu Shaohua's words have been made very clear, so of course Qin Sichen can understand them.

"Yes." Lu Shaohua also nodded, and after a moment's silence, he continued, "In my plan, after this financial crisis is over, Phoenix Group will fully enter the low-end product market and make good use of the complementary products of the three series of high-end, medium-end and low-end products. When I went to Shenzhen last year, I told Chu Lei about it, and he was also prepared. I think they have already started work there."

Lu Shaohua had a purpose in entering the low-end product market. He wanted to strengthen the position of Phoenix Group's products, gain a larger market share, and achieve a grand slam. At the same time, he was also looking for a good retreat for Phoenix Base.

The Asian financial crisis was bound to sweep the world eventually. By that time, the economy would shrink and the market would drop to its lowest point. As a supplier, production would inevitably be reduced. With so many employees at the Phoenix base, what would be the result if production was reduced?

Layoffs are a measure that every company can take, and some companies have even gone bankrupt directly.

It is impossible for Phoenix Group to go bankrupt. If it cannot go bankrupt, then what about layoffs? Will Lu Shaohua make such a decision? The answer is obvious, no.

Lu Shaohua would not make such a decision, because as the financial crisis passes, the market will recover. Once it recovers, everything will have to start all over again, and workers will have to be recruited again, which will cause a lot of trouble.

Lu Shaohua is going to enter the low-end product market again. Why not store a large amount of low-end products during this period? When the market recovers, there will be a period of slowdown and it won’t be too tense. After all, when the market recovers, Phoenix Group will also resume production of high-end and mid-end products.

More importantly, Lu Shaohua believed that after the financial crisis, when the market had just recovered and other companies had not yet reacted, it was the best time to move forward vigorously. How could Lu Shaohua not seize such a good opportunity?

Killing multiple birds with one stone, Lu Shaohua's move not only alleviated the crisis of Phoenix Group during the financial storm, without having to lay off employees, but also made use of the large amount of inventory during this period. In addition, he was able to grasp the situation, seize the time accurately, be one step ahead, and take advantage of the opportunity, making the entry into the low-end product market a complete success.

Qin Sichen thought about it seriously, and she understood that Lu Shaohua had already made arrangements. She breathed a sigh of relief and turned the topic back to ask, "So should we take action on the restriction issue?"

"We must take action now." Lu Shaohua gave Qin Sichen an affirmative answer and said, "The Phoenix base in Shenzhen is under great pressure now. It has to produce low-end products on one hand and high-end products on the other. It is necessary to impose restrictions at this time."

"I understand. I will communicate with President Chu." Qin Sichen spoke in a businesslike manner, even using the company's position titles.

"Yeah." Lu Shaohua smiled lightly, but he didn't finish yet. Lu Shaohua paused and said, "The sales department in Hong Kong should also be prepared as soon as possible. After all, once the financial crisis is over, we can manage both. If we are not prepared, it will be a mess. We must pay attention to it."

When Lu Shaohua mentioned entering the low-end product market, he meant more than one thing. It was comprehensive. Phoenix Group currently had many products, and they had to enter all of them. The pressure was not small.

Now let’s take a look at Phoenix Sales under the Phoenix Group. It has so few staff and can only cope with the high-end and mid-range series of markets. If a low-end product is added, there may be problems with manpower.

Another one is the offline sales branch, which is also a difficult problem. If we don’t set up the formation first, it will become a huge trouble when the time comes.

Qin Sichen seemed to realize the enormity of the task, and frowned, but in the end he encouraged himself secretly and said, "I will have the people below prepared."

"Okay, you go and rest first. I'll clean up here and go to sleep." Lu Shaohua smiled, braked the car in time, and said no more.

Qin Sichen didn't say anything, just nodded, got up, left the study, and went back to his room.

Qin Sichen left quietly, but Lu Shaohua's departure did not calm him down. As for Lu Shaohua's heart, it did not calm down either. He was thinking and pondering, his mind full of thoughts about entering the low-end products.

Phoenix Group has reached a bottleneck in its development. If it does not make a decision quickly, it is not difficult to imagine that the result will be stagnation. Lu Shaohua does not want to see this happen, so he decided to enter the low-end product market.

This is an opportunity to break through oneself and the bottleneck of Phoenix Group's development. Lu Shaohua cannot take it lightly. He must seize the opportunity to enter the low-end product market because it shoulders the task of breaking through the bottleneck.

Yes, once Phoenix Group succeeds in entering the low-end product market, the future it faces will be much broader. Isn't this a breakthrough in the bottleneck?