Chapter 2010 Judging Character From Loss
After Mi Jiayan left, Xiao Qi's thoughts turned to the three major directly-operated stores in Russia.
Although Russia is out of tune with the European continent, many Europeans like to travel to Russia.
In addition to the capital Moscow, the second largest city St. Petersburg, the most popular is the famous resort - Sochi.
Sochi is also the venue for the 2014 Winter Olympics. Although Xiao Qi didn't see the Winter Olympics, he watched an American TV station introduce Sochi and felt that this place is really a holy place for vacation.
There are two completely different weathers gathered in one place. There is heavy snow on the other side of the mountain, and the warm ocean atmosphere on the other side of the mountain. There are also countless hot spring resources, full of various primitive ecological atmospheres, and the prices are relatively cheap. Among the resorts all over the world, they are all number one.
Every year, Sochi receives as many as 5 million tourists from Europe, making it the third largest tourist city in Russia, while Sochi itself has a population of only a few hundred thousand.
Because of this, when Xiao Qi set up the Fairy direct-sale store in Russia, he put the third direct-sale store in Sochi.
At that time, everyone thought that Xiao Qi was a bit risky, but the facts proved Xiao Qi right—foreign tourists in Sochi usually like to order Dream Pads and Dream Stars here, and take them home after the tour. Much better than not being able to buy.
The current financial crisis in Europe and the United States has caused a lot of lagging behind in economic development. It stands to reason that people are tightening their money, but under such circumstances, the number of people traveling to Russia has surged.
Surprised at first glance, but actually for a very real reason - the Russian ruble exchange rate has plummeted!
When Xiao Qi looked at the data of Bloomberg, he saw that since the oil plunge in July, Russia’s life has been difficult. The ruble’s exchange rate against the U.S. dollar fell by 12% in August. In September, because of the financial crisis, It continued to fall by 18%, and it is expected to fall in October.
In such circumstances, the currency has always been strong euro. That is equivalent to enjoying more than 20% value-added, and using this money to travel and shop in Russia. Isn't that directly equivalent to a 20% discount?
Not to mention the high quality of Europeans, high quality and taking advantage are two different things, not to mention taking advantage of it openly, so taking advantage of the hot weather in Europe in August, September and October, they happened to come to Russia, a place close to the Arctic Circle Take a vacation, cool off and relax from the exhaustion of a year.
22% off travel. In addition, you can buy Dream Pad2 and Dream Stars, which are in short supply in Europe and the United States, at a 22% discount price. Why not do it?
Because of this, the Russians and Europeans are choking on the online pre-sale of Dream Pad2 and Dream Stars. The Russians don’t know whether it is arrogance or lack of inspiration. Anyway, they don’t take advantage of it. At least 30 %-40% of the share is bought by these Europeans.
Among these Europeans, there are more than one or two cruel people. They come with their families, and then use the identity certificates of their wives and children to register an account, and book three or four books by themselves. If you change hands and resell it to others, the cost of travel will basically be recovered by more than half. Absolutely self-taught smart!
In the whole process, the only one who suffers is Xiao Qi.
Unless it is a place like Africa where the political situation is unstable, Fairy Company has not even set up a direct-sale store. In other places, Fairy direct-sale stores generally adopt the local currency settlement system.
It means that which country the Dream Pad and Dream Stars series products are sold in, the currency of that country will be charged as the payment, and then converted into US dollars through the account of Citibank, and finally brought together.
Such a depreciation of the Russian currency means that Xiao Qi is actually selling Dream Pad2 and Dream Stars at a 22% discount. The company's profits in Russia have fallen sharply.
Even Xiao Qi knew that this round of currency devaluation in Russia. It will continue until the second half of 2009, and the highest depreciation rate will exceed 50%.
If that time really comes, Dream Pad2 and Dream Stars will lose one unit sold in Russia, although it is only a 10% loss, but for Fairy Company, it is a disaster without reason.
For this situation, whether it is Samsung or Apple, they directly avoid it without taboo.
Samsung will directly ask the dealer to increase the price, and the settlement currency will be directly converted to US dollars.
Apple is even more exaggerated. The price increase is the first step. If it sees that the momentum is not right, it will immediately shut down the online sales, and will give a "We Well Back" website message in a comical way.
On the contrary, if the exchange rate against the U.S. dollar in a certain country has risen, Samsung and Apple will turn a blind eye and sell their products as usual, never saying that it will be cheaper because of this.
Xiao Qi decided not to join forces with them.
Fairy Company has set a price, so it should abide by the contract, which is also to give fans confidence.
A company that is not moved by the environment, a company that considers fans, and a company that is trusted by fans is the Fairy Company that Xiao Qi hopes for.
If you raise the price from time to time, what do fans think, are you taking advantage of the fire?
The impact it caused was very bad, at least it had a great impact on the kind of credible company that Xiao Qi wanted Fairy Company to become.
Once Fairy Company insists on its own price and insists on thinking about the wallets of fans, it will soon spread all kinds of good word of mouth, thereby increasing the reputation and stickiness of users, and the little loss of money will mean nothing. Not enough.
What's more, Xiao Qi is not a fool, it is impossible to sell Dream Pad2 and Dream Stars endlessly, he dares to ignore the change of the exchange rate, in fact, he has something to rely on.
In this world, if there is a rise, there will be a fall, and if there is a rise, there will be a fall.
The exchange rate of the Russian ruble against the U.S. dollar plummeted, and correspondingly, other currencies appreciated against the U.S. dollar.
For example, the euro, the renminbi, and the yen...Of course, after 2012, the Japanese began to play tricks. The level of the yen's plunge makes people want to beat Abe.
Xiao Qi lost due to the exchange rate in Russia, but the exchange rate in other places rose after being converted into US dollars. There will be some additional income.
Under the action of the two phases, the exchange rate factor has long been balanced.
There is also the most important point. There are only 3 directly-operated stores in Russia, and there are more than 100 other directly-operated stores that are not losing money.
Even if the three directly-operated stores in Russia are losing money, Xiao Qi’s monthly sales of each directly-operated store, Dream Pad2 and Dream Stars are only more than 70,000 to 80,000 units each, which adds up to 150,000 a month. From top to bottom, Russia has only 450,000 units in total, and there is a 10% loss.
According to the average price of Dream Pad2 is about 820 US dollars, the average price of Dream Stars is about 650 US dollars. Calculated at 10% of 150,000 units, a monthly loss of 10 million US dollars is just a drop in the bucket for Xiao Qi.
The sharp fall of the ruble will continue until the second half of next year. Xiao Qi thinks it is worthwhile to spend only 100 million US dollars to buy the reputation of a conscientious businessman.
Back then, Yan Xishan, an old bastard, first issued Jin coins once in Jinshan territory, almost 1 Jin coin = 1 silver dollar.
As a result, after a few years, Yan Xishan, who had raised so many troops and lost battles, was unable to make ends meet. He immediately reissued the new coins, stipulating that 1 new coin = 25 old coins.
Naturally, the price has also been adjusted in the market, but 1 Xinjin coin is still pegged to the silver dollar. It can be exchanged for 1 silver dollar.
But the common people naturally refused, why did I lose so much money all of a sudden?
They took it to various banks in Jinshan and exchanged it. Want to reduce some losses.
But at this time, the Qiao family, that is, the Qiao family in the Qiao family compound, is under tremendous pressure. As long as it is an old Jin coin issued by them, it must be exchanged with 1 old Jin coin = 1 silver dollar. .
This is a big deal, even though Qiao's family has a great career, it has been devastated because of this, and it has been declining ever since.
At that time, there was no such a peaceful and peaceful living environment. Otherwise, just based on the Qiao family's awe-inspiring righteousness, the Qiao family will be bankrupt. If they do any business in the future, there will definitely be countless compliments, and they will definitely be able to make a comeback again.
No matter how many people have no conscience, there must be more people with conscience than them.
Anyone who doesn't involve their own fundamental interests will choose Qiao's for the same product.
If you don't trust someone who can go from being the richest man to being bankrupt for the sake of faith, who else can you trust?
Xiao Qi is now making a template for the second Qiao family. Although it is not as grand as the Qiao family, Xiao Qi still admires them in his heart and is willing to learn from them in terms of faith.
What Huaguo merchants lack now is the persistence in faith. Xiao Qi is willing to be a leader himself, so that more people can do business with faith, instead of having no conscience as long as they can make money like in the previous life!
Now with the Internet, Xiao Qi's conscience and perseverance can just be hyped up and let fans in Europe and America know.
After all, the smell of wine is also afraid of deep alleys, Xiao Qi thinks that if you do a good deed to let others know and praise yourself, it will be very interesting, and you will feel very happy and satisfied.
People who do good deeds without saying a word, have no encouragement or praise, and will gradually lose motivation!
Of course, back on topic.
The ruble situation is only a special case and is out of their control.
If any country intentionally disrupts the exchange rate, then Xiao Qi will definitely follow the example of Apple and close its doors and not sell anything.
No matter how honest a person is willing to suffer, he will not be so stupid as this. (to be continued ~^~)
PS: Including this time the Russian ruble plummeted, Samsung’s price hikes, the Apple Store stopped selling by itself, and the comically written “We will be back”, I think this kind of business attitude is too low-grade. If we want the Confucian businessmen from hundreds of years ago in our country to live up to now, they will definitely be overthrown. It's a pity, businessmen nowadays, just like them, only have money in their eyes!