Siheyuan: Returning to 61 to collect waste

Chapter 409 How do they compete?

Three months later, the approval result of Jiafu Group came out.

However, they were horrified to discover that they hadn’t even found a suitable location, let alone worked with suppliers.

Walmart and Wal-Mart did not deliberately target the Jiafu Group, but simply asked their own brands not to cooperate with the other party.

Some suppliers had signed market protection agreements before, and they did not do so intentionally.

Three months ago, the Jiafu Group was still making fun of the Wal-Mart Group, but it would become a laughing stock just three months later.

The road ahead for Jiafu Group is bumpy.

At this time, the supply and marketing cooperative was coming to an end.

State-owned factories do not take Jiafu Group seriously at all and are even less willing to supply it.

Some large state-owned factories are undergoing reforms, but enterprises such as garment factories, processing plants and slaughterhouses still need to act in accordance with instructions from their superiors.

Therefore, when the Jiafu Group came to the door, it was not treated in a friendly manner, and its senior management was even so anxious that they almost collapsed.

After three months of negotiations, there has been no progress except with a few suppliers of daily necessities and large household appliances.

In addition, the site has not yet been determined. The originally favored "773" location can only be chosen at a location away from the city due to the lack of a large enough plot of land.

Half a year later, Jiafu Supermarket finally started construction, but the supply chain problem was still very serious. Facing this opponent, Ye Chuan showed no mercy.

He has a good idea of ​​where history is headed.

Since 1994, supply and marketing cooperatives have gradually withdrawn from the stage of history, and those state-owned factories have had to find sales channels on their own.

Ye Chuan negotiated with Louis for the entire afternoon and finally decided to add 50 supermarkets in Huaxia.

To this end, Huade Group and Womar Group each made additional investments, and Ye Chuan needed to invest 5 million yuan for expansion.

Afterwards, Huade Group dispatched a team led by Xia Zhongyuan to visit the factories that were about to find sales channels. The factories were more friendly to Huade Group, and although they were still perfunctory, Xia Zhongyuan did not mind and left contact information one by one.

After the completion of 50 Wal-Mart supermarkets, these factories will probably have a hard time, and they will then turn around and ask for help from themselves.

Although reform and opening up have been going on for many years, the market has not been fully open, and 1994 was an important turning point.

Once the market is fully opened, these factories will be forced to compete. Those who can adapt will continue to survive, while those who cannot will immediately fall into trouble.

It was because Ye Chuan saw this that he arranged for Xia Zhongyuan to contact these factories in advance.

Now that he has invested in the WoMart Group, he is determined to suppress his rival with all his strength.

The Jiafu Group was naturally the first to be hit.

In his opinion, a heavy blow must be dealt to the opponent as soon as it enters the Chinese market. When the market is fully open, the opponent will find that the entire Chinese retail market has been occupied by Walmart supermarkets.

Even if Jiafu Group tried to join at that time, it would not have much room for development and market share. As expected, Ye Chuan's strategy gradually became effective.

Following the large state-owned factories, small factories also began to face the same problem.

The supply and marketing cooperatives no longer adapted to social development, and department stores began to incur losses.

The phenomenon of private contracting or acquisition of department stores appeared in various parts of the country, and the factories that were originally under unified sales and purchasing were pushed into the market.

After the state-owned factories entered the market, they immediately exposed their own shortcomings.

Since there are many employees in the factory, the supporting facilities of the factory are also very complete. The factory director cannot lay off employees at will. Unless the factory faces extreme difficulties, there will be no layoffs. Therefore, the product costs of these factories are relatively high, and the selling prices are generally higher than the market price, and it is difficult to reduce the price. There are many employees to feed, which is also the main reason for the increase in costs.

At first, the factory tried to contact Huade Group and gave its own quotation, but Ye Chuan was not a fool and obviously would not agree to such a high price. Since Huade Group refused, Jiafu Group was even less likely to accept such a high price, so it also directly rejected the other party.

Although Ye Chuan rejected the initial offer, he sent Xia Zhongyuan to participate in the negotiations. After several rounds of negotiations, the two sides finally reached an agreement. Although the final price was still 10% to 20% higher than the normal level, Ye Chuan chose to accept it.

This was just the beginning, and the state-owned factories had not yet realized that the era they were in was over. Ye Chuan needed to give them time to adapt and solve the problem of redundant employees and complex support facilities in the factories. The newly opened 50 Wal-Mart supermarkets easily absorbed the products of these factories. By the time Jiafu Group realized the problem, most suppliers had signed cooperation agreements with Huade Group. This made Jiafu Group's general manager in China very angry, cursing Ye Chuan and 4.5 Louis like wolves that don't spit out bones, leaving no room for survival for their opponents.

Fortunately, Jiafu Group also successfully negotiated with several suppliers, temporarily resolving the crisis. They only opened two test supermarkets in China, and originally hoped to use these two stores to test the market, but encountered great difficulties. The amount of goods provided by suppliers is only enough for the sales of these two stores, and adding another one is not enough.

This not only indirectly affected their enthusiasm, but also caused the entire Chinese market to be overshadowed by Wal-Mart. There are only two Jiafu supermarkets in China, while Wal-Mart has more than 100. In the face of such a situation, how can they compete?

In 1994, the Tianjiao series of the Automobile Branch finally achieved mass production. After the prototype was successfully produced, Ye Chuan asked the branch to achieve mass production within two years. At that time, Ma Jiangong did not care too much and readily agreed. However, he did not expect that there would be so many difficulties in the process from prototype to mass production.

There are not many manufacturers in China that can provide auto parts, and most of them are state-owned enterprises. Without the instructions from their superiors, they cannot do OEM for them. Mass production is very different from making prototypes, and requires a complete production and quality control system. All parts are either produced by themselves or provided by long-term suppliers. The group did find some OEM factories in island countries to process parts, but the most critical engines and gearboxes must be produced independently.

These parts are the core parts and the secrets of the automobile branch. Therefore, Ma Jiangong had to build a factory, debug equipment, and train workers from scratch. As a result, it took nearly four years from prototype to mass production. After learning about these situations, Ye Chuan expressed his understanding of Ma Jiangong.

The automobile branch now manages several factories, and the number of workers exceeds 5000 before a complete car is produced. The annual financial pressure is huge, but Ye Chuan always supports it without reservation. Although he did not say much, Ma Jiangong felt a huge pressure and always felt that he had not completed the tasks assigned by the group. Four years have passed quickly, and half of his hair has turned white due to hard work. When he stands next to his younger brother Ma Jianshe, he looks more like an older brother.

In order to build the factory, the Tino Group made great efforts. Through its strong financial advantages, extensive connections and holding position, it successfully acquired many companies with top machinery manufacturing technology in the island countries, Europe and even North America. Even when the technology was restricted, these companies were forced to sell the technology to China under the pressure of Tino. Power comes from strength. As long as there is enough strength, technical barriers will not be a problem. For the top leaders of these countries, approving the export of machinery can be regarded as leaving a step for the Tino Group.

When Ye Chuan learned that the import of machinery might be restricted, he was well prepared. If that day really came, he planned to use the Tino Group to stir up trouble in the secondary markets of these countries, causing violent turmoil through the stocks in his hands, so that these countries would suffer. Fortunately, they were reasonable and did not put too much obstacles in the export of machinery.

After the first finished vehicle rolled off the production line, Ma Jiangong stood outside the workshop and shed tears of excitement. This car, called the "Tianjiao Series", has three models: the lowest-equipped 1.5L manual transmission, the mid-equipped 1.6L automatic transmission, and the high-end 2.0L automatic transmission. The "Tianjiao Series" is designed to replace the imported Santana. From the engine to the transmission system, it can be compared with the latter, and even the appearance design is more outstanding. At that time, Santana cost about 20 yuan in China, becoming one of the dream cars of the wealthy class in China at that time, and even had to be booked.

Ye Chuan adopted a series of powerful marketing strategies before the new car was launched. He not only carried out carpet-style publicity through national television stations and provincial channels, but also frequently appeared in newspapers, magazines and radio to ensure that the information was widely disseminated. In just three days, the "Tianjiao Series" and its domestic identity became household names among consumers across the country. In particular, the pricing was very sincere: the 1.5L manual version only cost 10 yuan, the 1.6L automatic version was priced at 13.5 yuan, and the top-of-the-line 2.0L automatic version was priced at 18 yuan. When the price was announced, the Santana manufacturer felt an unprecedented shock - because even the most basic low-end version was priced at more than twice the price of the "Tianjiao Series" with the same configuration. This reality made its headquarters very nervous, and it immediately sent representatives to China urgently, planning to attend the "Tianjiao Series" new car launch conference, intending to evaluate the difference between the two by personally purchasing a test drive car, so as to find a response. However, before they arrived in China, the phenomenon of returning Santana began to emerge. At first, I didn’t take it seriously enough, thinking it was just a small number of order returns that were not worth mentioning; but the next day I found that things were not as simple as I had imagined.

There was a crowd of people outside the sales point, most of whom came to return their cars.

The general manager of Zhonghua was feeling a wave of emotions, but he remained proud. He stubbornly believed that a local brand could never compete with Volkswagen, which has a long history.

"Dear customers, please be responsible for the choices you make! If you insist on returning the car today, you will be blacklisted by the company and will never be able to buy our products again in the future!"

"The Tianjiao series has just been launched, and it is still unknown whether it can be delivered immediately. Are people willing to offend the public because of this car with an uncertain future?"

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