Chapter 1634 They Are Even More Helpless

While Jiasheng Mall and its affiliated companies are preparing for the upcoming Double 12 promotion, many people can't sit still.

In the Yansha business district of the capital, the 18th floor of a landmark building at this time is filled with strong male hormones, and words like "fight, dry, grass" are heard everywhere.

The employees walking fast have high morale on their faces. At this time, they have regarded Jiasheng Mall as another opponent they care about most.

In fact, Jiasheng Mall's promotional publicity mainly based on home appliances in the early promotion has really touched their cake.

In our country, in terms of comprehensive hypermarkets, it is indeed behind the world's first-class level, so after Walmart and Carrefour entered the country, they were able to conquer the country so smoothly and open a popular store.

But in another retail field, the 3C home appliance field, our country can be said to have at least caught up with the world's first-class level.

After entering the new century, the distribution channels of our country's home appliance industry have undergone significant changes. Home appliance professional chains, a new business model and new sales force, have risen rapidly, and soon caused a serious impact on the traditional manufacturer cooperation model dominated by manufacturing enterprises, and quickly achieved great success.

At present, especially in first-tier cities, more than 65% of the 3C home appliance market is occupied by home appliance professional chain companies.

In China, after a model becomes popular, there will be many followers soon, and the same is true for home appliance chains. At present, there are many regional or cross-regional home appliance chain companies all over the country, but the most representative ones are also the leaders of this industry, one in the south and one in the north, with a total of two in the country.

Headquartered in the capital, this company is not only the leader of the home appliance chain industry, but also the leader of domestic private enterprises - if there is no Gain Capital.

The founder of the same company, Mr. Huang, is also very popular this year, especially in the middle of this year, he successfully listed in Hong Kong through a backdoor listing, which made his wealth quickly break through the 10 billion yuan mark, and he almost became the richest man in China - if there is no Feng Yiping.

In the Hurun Rich List released in October, he ranked second.

However, although the ranking is only one place apart, the difference in data is huge, one is over 10 billion US dollars, and the other is over 10 billion RMB.

Judging from the figures on the Hurun list, which is always criticized for inaccurate figures, their personal wealth is more than ten times different.

There is no way, Google's listing has a huge impact on Feng Yiping's wealth.

For such a result, Mr. Huang, who is also young and poor in his childhood, I don’t know if he is unhappy before, but this time, he is very unhappy with Jiasheng, and everyone in the company can feel it.

When the merchants who opened shops on the street in Wuli'ao were still happy that they could buy large home appliances with guaranteed quality and affordable prices on Jiasheng Mall this time, the shrewd Mr. Huang had already seen the huge impact that Jiasheng Mall would have on their physical stores if it successfully rose.

He had such concerns when eBay and Amazon entered China and when Ma's company was making efforts, but never as fiercely as when Forex Mall was about to be launched.

Although Feng Yiping has always been very humble in public interviews, attributing his successes to this good era, good policies, good opportunities, good employees, good luck..., but Mr. Huang, who has also worked hard from the bottom, knows very well that all of this represents Forex's outstanding capabilities.

Before Forex was able to succeed in so many industries, it is very likely that its new project, this e-commerce project, will also be successful.

At this time, in the conference room, another relevant meeting was held. This was not the first time. In total, how to effectively deal with the impact that Forex Mall may bring and how to win this battle, Mr. Huang personally held the fifth meeting, which lasted more than 20 hours.

Such data can also explain the helplessness of Mr. Huang and his team from one side.

Unlike Jiasheng, who always makes all preparations properly, and even requires that there should not be a single typo in the project plan before implementing a project, Mr. Huang’s approach to doing things is to do it when he is 30% sure, to strike as soon as there is an opportunity, and to do it as soon as he feels it.

Now that it has been discussed for such a long time, he still has no action, which shows that he has neither the feeling nor the opportunity, and he is not even 30% sure.

When Feng Yiping was in high school, Jiasheng had no family company color after he really started his own business, but Mr. Huang’s company still has a strong family color.

Among the company’s executives, there are his wife, his brothers and sisters, and his brother-in-law - of course, his later experience also proved that such an arrangement is actually very effective.

The other executives present are also his old servants.

He is very polite to the security guards and cleaners downstairs of the group, and will take the initiative to say hello when he sees them. He is also very loyal to these old servants, and will forgive your mistakes and reward you generously...

But at the same time, he is a strict and domineering boss who commands awe. Many employees at the headquarters dare not even breathe when talking about him.

But the silence in today's meeting was not because of awe for him. When he held a meeting on one thing, he could still listen to everyone's opinions.

"If we reduce the price of all the same products in the store to the same amount as that advertised by Jiasheng, how much investment would it take?" Mr. Huang took the initiative to break the silence.

Price war is what they are best at and what they do best.

The reason why his company has grown to its current scale and achieved such remarkable achievements is closely related to his nickname of price butcher.

Objectively speaking, the reason why our country's home appliance industry is considered competitive in the world later is really related to them.

It is because they have repeatedly broken the original price system of home appliance manufacturers, allowing consumers to buy the original high-end large home appliances at a much lower price.

The most famous of these is the move to break the price of color TVs in 2000.

To a certain extent, this also forced manufacturers to find ways to reduce costs or adopt differentiation strategies in product systems.

"We have made an estimate. If we include the unlisted stores, our total investment should be more than 500 million yuan," the financial director quickly gave a figure.

This 500 million yuan is expected to exceed the annual net profit.

He didn't say this, but Mr. Huang should know it, but he still reminded him, "Hong Kong's regulatory authorities have very strict requirements for listed companies."

As the saying goes, things always have two sides. Successfully listing in Hong Kong and becoming the first home appliance chain company in China to be listed in Hong Kong has certainly made his personal wealth increase rapidly, but at the same time, it is also equivalent to finding a strict mother-in-law for himself. Many things can't be as you like in the past.

"Isn't Jiasheng's own investment only 200 million yuan?" someone asked.

"The other part is the manufacturer's discount. Our pricing and their pricing are two different models," said the financial director.

This time, these manufacturers really invested money, and the manufacturers chose to do so, which is likely related to the actions of these home appliance chain companies.

"Or, we can do the same as before and directly reduce the price to the same as Jiasheng?" Someone suggested.

It is not the first time that they have lowered the price without consulting the manufacturer.

This proposal was immediately opposed by everyone, mainly because it was not appropriate to do so at this time.

Feng Yiping has always emphasized that it is not only necessary to satisfy users but also to have a good relationship with suppliers. However, their company's behavior is really not like Feng Yiping. Most of their energy is used to please users, and they do not hesitate to use suppliers for this.

In March, their negotiations with Gree ended in failure. Queen Dong, who had already emerged, was very tough and resolutely refused to meet their request to lower the supply price. Therefore, they even issued a clearance order to Gree, which is now the leader of the domestic air-conditioning industry.

In the golden autumn of this year, without notifying the suppliers, they launched a promotion plan that made the suppliers jump up and down. Aside from the manufacturer's recommended retail price, the listing price of the goods on sale was adjusted to the purchase price.

Such a unilateral move caused many suppliers to publicly advertise to them that they would go on strike.

This matter has just been resolved. At this time, another one? That would really exhaust the patience of those manufacturers.

There must be a limit to how big the customer is when bullying the store, right?

"After a comprehensive comparison, how big is our price gap?" Mr. Huang asked further.

"On average, it's more than 30%," the subordinate replied.

Part of this 30% is due to the subsidies from Jiasheng.

Another part is the logistics cost.

According to the model of Jiasheng Mall, the current sales of home appliance manufacturers in big cities only need to transfer warehouses at most twice, once from the manufacturer's warehouse to Jiasheng's transfer center, and then from the transfer center, it is directly delivered to the user.

But according to their model, home appliances need to be transferred from the manufacturer to the consumer on average 6 to 8 times, which will naturally result in higher losses and costs.

But more of this 30% gap is caused by their own company.

The more than 30 suppliers wanted to unite and blackmail Jiasheng again, which is a typical behavior of a big store bullying customers.

But speaking of it, they themselves are also quite pitiful, especially when cooperating with the two home appliance chain giants in the south and the north, they are often bullied and have no power to fight back.

Since the mid-1990s, the consumer market has shifted from a seller's market during a period of material shortage to a buyer's market with oversupply. Home appliance retail giants like them are naturally the focus of cooperation for all home appliance manufacturers.

A simple logic is that in order to achieve good sales performance, you have to occupy the prime position of the store, and this requires paying more fees - the so-called entry fee. At the beginning, even the manufacturer took the initiative to do this.

Who would refuse such a good thing?

Until now, the entry fee has been increasing year by year, and various comprehensive fees are also increasing in a magical way.

From the location selection fee, shelf fee, monthly return fee, advertising fee, gross profit difference and other charges for occupying store resources within the contract, there are also store opening fees, sponsorship fees, DM advertising fees, store anniversary fees, festival fees... and other "exorbitant taxes" levied by force outside the contract.

Do you want sales? Do you want it? If you want it, you have to pay.

These fees are currently as high as 20% of the value of the goods.

Especially Mr. Huang's company, which always insists on low prices, does not make much profit in the consumer market. These fees are the biggest part of the company's income. In some years, these fees are even several times the company's net profit.

This is also one of the reasons why those home appliance manufacturers are so concerned about Jiasheng Mall.

To open a store on Jiasheng Mall, they don't need to go through any middlemen, currently do not have to pay any fees, and do not have any credit period. They can settle the goods on the spot and directly face the end consumers. Moreover, they can directly receive the most authentic feedback from the end consumers.

If the sales on Jiasheng Mall are excellent, it will definitely be a blessing for them. They have finally found a way out of these powerful and somewhat arrogant home appliance chain companies, a channel that is completely controlled by themselves.

"I heard that many manufacturers have set up another team outside the key customer department to be responsible for the sales on Jiasheng Mall,"

"Everyone think about it again and see how to deal with it," Mr. Huang got up and left this meeting that once again made him feel a little frustrated.

He always believed that people were all the same, just one step away, sometimes only half a step.

But it seemed that Feng Yiping's layout was really more than one or two steps ahead of his own. He had no good idea of ​​how to deal with it.

He looked at the sky outside. This winter seemed to be particularly cold.