Rebirth 1990: The beginning is sweet and cool Bai Yueguang

Du Yangqiu felt that his son's words made some sense.

After all, in the past five days, Huaning had been suppressed by this emerging company in his own base, Haishi, and he could not even raise his head. This was a big blow to Huaning.

After thinking for a moment, Du Yangqiu decided to fight back. He said, "Tell the people below to reduce the price by 45% across the board. Since Hualong said this is the last concession, we don't need to be too generous. An extra 5 percentage points will be attractive enough."

With the launch of the new discount strategy, Huaning's sales finally began to pick up.

After years of accumulation, Huaning still has a group of loyal customers.

However, some customers are not interested in the extra 5% discount because Hualong provides 24-hour door-to-door delivery service, which Huaning cannot match. Therefore, some customers would rather give up the 5% discount and choose Hualong.

Thus, the war of attrition between the two companies officially began. Whoever has more money will have the last laugh.

And this is exactly the situation Zhou Qi hopes to see.

By claiming that this was the last price cut, he wanted to prevent Huaning from discounting too much, thus prompting a war of attrition.

His goal was to weaken Huaning's financial strength, rather than relying solely on price advantages to attract all customers to Hualong, while also being unwilling to completely lose market share.

For every product sold, Hualong loses 10%, while Huaning loses 15%. This 5% difference is mainly reflected in after-sales service.

On the first day of the battle, the eight stores in Huaning suffered a total loss of more than two million. Last year, the total profit of these eight stores was only about 30 million. In just one day, one-tenth of the profit was lost. This figure was shocking.

And that doesn't include other potential costs.

In comparison, Hualong's net loss that day was only 600,000, equivalent to a quarter of Huaning's.

That night, Huaning held an emergency shareholders meeting.

Before, these shareholders did not take Hualong seriously, but now the situation has changed.

Faced with such a huge single-day loss, no one could sit still.

"Mr. Du, we are not questioning your decision, but the losses are too huge. Is it really necessary to make such a big sacrifice for a newly established small company?" a shareholder questioned.

Du Yangqiu frowned, knowing that these people only cared about their own interests and had only a vague understanding of the real situation of market competition.

"Everyone listen to me." He said firmly, "Haishi is our foundation. Hualong suddenly rushed in to grab the market, and the action was very fast. If we don't fight back quickly and let it continue to expand, we may lose market share and our reputation will plummet."

"We are losing more than two million every day, which is indeed a lot, but Hualong is in a worse situation. They have already given a 40% discount, which means their losses are even greater. If this continues, how long do you think Hualong can last?"

"We have enough cash flow. Even if other stores have no income for the time being, it won't be a problem within a month. But what about Hualong? Can it hold up?"

"But if Hualong becomes stronger, it will be difficult to suppress it, and the losses will be even greater."

Soon, the meeting reached a consensus: it is necessary to maintain Huaning's dominant position in the southern market, suppress Hualong at all costs, and drag it down with a financial war.

The competition was extremely fierce over the next week.

Everyone in Hai City was involved in this price war.

The discounts are unprecedented. For example, a color TV that originally cost more than 3,000 yuan can now be bought for just over 2,000 yuan, saving a lot of money.

No one wanted to miss such a good opportunity, and they all rushed to buy it, even borrowing money to seize this rare opportunity.

As a result, sales of both Huaning and Hualong reached unprecedented peaks.

Especially for Huaning, the sales volume hit a new high this week.

However, the more you sell, the more you lose.

Huaning lost nearly 20 million in this battle, while Hualong lost 6 million.

For Qiao Xuying, six million was already an unbearable burden.

She urgently contacted Zhou Qi: "The store has lost 6 million recently. With the previous compensation, the total loss has reached 14 million... We don't have much cash flow. If this continues, I'm afraid we won't be able to compete."

But Zhou Qi was not worried. He believed that apart from the previous compensation, the actual loss caused by the price war was only 6 million.

He believed that the more losses he suffered, the greater the pressure on Hua Ning.

Once Huaning’s capital chain breaks, its end will be devastating.

You should know that most of Huaning's stores are leased and require rent to be paid; moreover, its internal structure is complex and there are many shareholders, and the withdrawal of investment by any party may lead to the collapse of the company.

Zhou Qi's goal is to exhaust Huaning's working capital.

In comparison, he has billions of funds and multiple assets to support him, and his financial resources are far superior to Hualong.

For Zhou Qi, six million is just a small sum, and the income from Wang Fei's album alone is enough to fill the gap.

Zhou Qi said to Qiao Xueying firmly: "Don't worry about the funds. I just ordered another batch of goods from the electrical appliance manufacturer, and it will be delivered soon."

This is the main reason why Qiao Xuying called.

Sales have been booming recently and the warehouse is almost empty, but the company's working capital is already very tight, and she is even prepared to pay out of her own pocket.

She understood that once the competition with Huaning began, she would have to grit her teeth and persevere to the end, otherwise all her previous efforts would be in vain.

However, after hearing Zhou Qi's words, she realized that she might have underestimated his strength.

She hesitated and asked, "We are now fighting a war of attrition with Huaning, and our main advantage lies in after-sales service. What should we do if they also start providing 24-hour door-to-door delivery service?"

Huaning’s prices are already 5% cheaper than theirs. If Hualong further improves its services, it is likely to lose the market.

Moreover, according to Zhou Qi's previous instructions, announcing a 40% profit concession was already the limit, and any further price reduction would be tantamount to slapping oneself in the face.

Zhou Qi smiled and replied, "Huaning may improve its services, but this will take time. At least they will not do so until they completely defeat us. Their strategy is the same as ours. They want to use funds to drag down the other party instead of rushing to occupy the entire market."

Qiao Xueying immediately understood what Zhou Qi meant, so she asked, "Can you tell me how much money you have prepared for this competition?"

"No matter how much money Huaning has, I have more than them." Zhou Qi said confidently.

Qiao Xuying was stunned. She didn't expect Zhou Qi's funds to exceed Hua Ning's.

Although she was surprised, she did not doubt it. After all, Zhou Qi was an expert in the stock market and probably had hundreds of millions on hand.

Then, she thought of a bigger possibility and asked in disbelief, "Your goal is to open up the entire southern market?"