The Industrial Giant Reborn
Chapter 34 Auto Parts Business
"Our price is still very advantageous compared with RB's local suppliers." Lei Shengli said with a helpless smile: "Toyota is actually looking for other suppliers in Wanwan South Korea, not in the radio industry. It seems that Toyota does not All components are ready to be produced locally.”
"It is a normal phenomenon that when the industry develops to a certain level, it will definitely be de-industrialized, especially the low-end market, which will inevitably be eliminated." Chen Zhiwen said.
When an industrial power develops to a late stage, the labor cost of the entire country will inevitably rise, which leads to the low-end manufacturing industry being oppressed by labor costs, unable to make profits or even lose money, and because it is a low-end manufacturing industry, other developing countries can also produce, and they have With low labor costs, the manufactured products are cheaper, and there may be certain quality problems, but they still have a strong price advantage after all.
On the other hand, customers will naturally choose suppliers with lower costs. As long as the price is cheap enough, some quality problems are acceptable, especially after the popularization of containers, shipping costs have dropped significantly, and globalization has begun. This will further shift the manufacturing industry.
This is also the reason for the rapid development of Hong Kong's manufacturing industry in the next ten years. Unfortunately, Hong Kong did not seize the opportunity of technological upgrading, which eventually led to the complete decline of the manufacturing industry.
Lei Shengli said with some joy: "Although our price is much lower than that of RB manufacturers, the profit of car radios is still far higher than that of civilian use, and there are so many car brands. As long as we enter the market, there will be too many opportunities in the future. .”
"This is indeed an opportunity. After this decision is made, we must take the initiative to attack other car brands." Chen Zhiwen nodded and said, globalization has just begun, and it will be a big change for the division of labor in the entire global manufacturing industry, including many large companies. Their actions are very slow, as long as their own side takes the initiative to attack, the potential possibility is still relatively large.
"I think so too, but it will cost more?" Lei Shengli asked.
"The cost is not a problem, as long as I can see the result." Chen Zhiwen nodded and said, the automobile industry is the crystallization of industry, even if he can't make a car for the time being, he has to make a few parts first.
"Okay, then I'm relieved." Lei Shengli said happily. When he was in Universal before, although the boss was very nice, he was very strict when it came to spending money. Compared with the current boss, he was far behind. Yes, but I can’t blame the former boss, because I really don’t have any money. I don’t want this one in front of me. I rented an office building in Central, and the factory buildings in Kowloon are all my own. There is also an injection molding factory not far away, and the old equipment is just thrown away. Yes, all new ones have been replaced, and we are doing our best to produce plastic parts for our own electrical products.
Money is good!
Chen Zhiwen glanced at the fan not far away again, and asked, "How is Midea's fan business going?"
"It's also very good. Customers in Hong Kong and Southeast Asia have placed a lot of orders. We have almost 200,000 units in hand. However, RB is our largest market. It's just that it hasn't started to heat up there yet. I guess it will wait until next month. There are more orders." Lei Shengli replied.
"Have you lowered the price to breakeven?" Chen Zhiwen asked.
"It's dropped, but the price of plastic has risen too much. The price is similar to last year, but we haven't raised it because others have raised it. Southeast Asia has placed more orders. In addition, the old customers of RB are also very interested." Lei Shengli said.
"What about the United States? Do you have any plans to expand the market?" Chen Zhiwen asked. The reason why he didn't talk about Europe is because the summer there is basically not hot there, and the fan market and the air conditioner market are very small.
Lei Shengli replied: "We contacted some supermarket chains in the United States through Red Bull, and they also said that they were interested. We also sent samples by air, and sent people to the United States for activities. It's just that under normal circumstances, we want to enter Supermarkets of a certain size in the United States have a certain process, which takes time, and fans are only used in summer, and I guess we may not be able to catch up this year.”
"Forget it, Anxin is mainly responsible for these batches of air conditioners and refrigerators." Chen Zhiwen nodded and said, "Have you changed the fan model too, let's let the Asian market test the waters first?"
The after-sales cost of overseas customers is also graded. The cost in Southeast Asia is obviously much lower, and it may even be similar to that in Hong Kong. The non-Asian developing countries are a little higher. The highest is naturally in Europe and the United States. If the refrigerator air conditioner in Europe and the United States is broken , Many people just throw it away. If it is within the warranty period, it will naturally have to be replaced with a new one, and the manufacturer will naturally be responsible for all costs.
This kind of after-sales method, if you don’t have full confidence in your products, you must not enter the market, otherwise, a small number of after-sales problems will make you bankrupt.
Therefore, another advantage of Chen Zhiwen's letting air-conditioning refrigerators enter the Middle East market first is to understand the quality of his own products, and to solve problems if there are problems, so as to avoid recurrence in the future, improve product quality, and form a virtuous circle.
Coupled with the harsh summer temperature in the Middle East, if it can stabilize in the Middle East and reduce the after-sales service to the extreme, Chen Zhiwen will feel at ease when entering the European and American markets.
The same is true for the fan, try the water in RB in Hong Kong and Southeast Asia, wait for the northern hemisphere to winter, and then send it to South America and Australia, as long as the price is cheap enough, there is no reason for the dealers in these countries to disagree.
"Okay." Lei Shengli agreed, seemingly hesitant, and then said: "Chen Sheng, there is one thing related to the company's production capacity, and summer is coming soon, and under normal circumstances, the production capacity of the factory will be reduced in summer. few."
"You want to install a large industrial air conditioner?" Chen Zhiwen understood the meaning.
The main manufacturing industries in Hong Kong are garments, textiles, and toys. Although the total output value is high, most of them are small workshops. The rented one-story or half-floor industrial office buildings, how can it be possible to install air conditioners for workers, and a few are better for workers. will be installed.
But Midea's factories are all its own, and the building naturally needs to install large-scale industrial air conditioners.
"Yes, and the hot weather also affects the quality. Although the air-conditioning refrigerator is also assembled, the process is more complicated. The car radio in the future is for the car, which is more important. If people are too hot, they may make mistakes. The fan does not matter. , you don’t have to pretend." Lei Shengli said.
"If you want to install it, install it completely. If you don't tell me, I'll forget it, and that guy Qin Zhihao won't mention it." Chen Zhiwen said: "The three industrial buildings will be installed together, and you will be responsible for this matter."
Installing air-conditioning is good for production capacity and quality, and it will also be much better for your employees. This benefit should be given.
"The empty one also needs to be installed?" Lei Shengli asked.
"Of course, do you think these three buildings will be enough next year?" Chen Zhiwen said with a smile.
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