Chapter 373 Things have changed
“The Torch Group’s lighter pricing is really too low. Once its pricing came out, other domestic lighter companies almost no longer have a foothold in the domestic market. In the future, they will only I can make a living abroad!”
Although Xinhai Company has joined the Torch Group, Huang Guangze actually has some complaints about the Torch Group.
Companies including Xinhai are all working abroad and selling lighters overseas is true, but they have no intention of completely losing the domestic lighter market.
Before the Torch Group released lighters, even Huang Xinhai, Huang Guangze and others had a hunch that the large-scale mass production of Torch Group might bring down the price of lighters, but they did not expect that. Torch Group can launch a one-dollar injection lighter!
The high-temperature-resistant plastic lighters launched by Torch Group almost completely beat the metal lighters in terms of cost. Just comparing the price, there is no comparison between the two.
Huang Guangze looked at Huang Xinhai and said, "Brother, this time many lighter manufacturers who are familiar with us want to unite to boycott the Torch Group.
What I am most afraid of is, Torch Group is not satisfied with occupying the domestic lighter market. When the time comes to enter the overseas market, there will really be no way for us to survive!”
Suddenly, there was a voice against Torch Group, and it was not just the ones who were worried. Torch Group's violent shipments are actually activating the domestic lighter market demand.
What scares those lighter manufacturers the most is the day when Torch Group starts exporting. Then, it will be a nightmare for domestic lighter manufacturers!
Nowadays, domestic lighter manufacturers seem to sell a lighter for more than ten or dozens of yuan, but overseas, they actually adopt a low-price lighter strategy and rely on quantity to win.
In the past, domestic lighters had to pay tariffs when going overseas, and a large portion of profits had to be shared with local agents. In addition to freight, materials for the production of metal lighters, and production based on family workshops and small companies The efficiency of this model is not high, which leads to the fact that the cost of domestically exported metal lighters overseas is not low, and the profits are not as high as expected.
If Torch Group goes overseas, even if it goes overseas, a lighter worth one RMB will sell for one dollar or even two dollars locally, and the price will be much more cost-effective than other metal lighters!
Seeing the booming sales of Torch Group, many domestic lighter manufacturers, especially several giant lighter manufacturers, are really worried that one day Torch Group will go overseas, will they still have a way to survive? !
Hearing Huang Guangze's words, Huang Xinhai pondered for a moment, then shook his head, looked at Huang Guangze, and said seriously, "Do you think that with the current scale of Torch Group, there is still such a Many units and leaders have given support to Torch Group. Will Torch Group stop production because of the resistance of our companies? ”
Huang Guangze was speechless when asked, how much money has been invested in Torch Group and Torch Industrial Park? It is said to have invested one billion yuan. The current investment scale, even if it is not that big, is as high as the Torch Group's tall buildings built on the ground. The scale, and the several major laboratories that are rumored to be established, with seven or eight billion poured into it, there is no doubt about it.
Furthermore, how many people have been promoted in their career because of the Torch Group? If the Torch Group ceases production, wouldn’t it deny their contribution?
“In the future mass consumer lighter market, I am afraid that not only domestic lighter manufacturers, but also overseas manufacturers will not be able to compete with Torch Group.
No matter which lighter manufacturer it is, in this regard, I’m afraid they can’t beat Torch Group. The domestic and overseas mass-market lighter market probably belongs to Torch Group!”
Huang Xinhai has been in this industry for so many years, and he still has a good eye for one dollar! His lighters, not to mention sweeping the domestic lighter market, can still capture a large market abroad. He is not prepared to compete with Torch Group in this regard, because he can't beat it at all!
"Then what should we do?" Huang Guangze asked anxiously when he heard that Huang Xinhai seemed to be planning to give up competing with the Torch Group.
“Transform!”
“Enter the mid-level or high-end lighters, retro lighters and other markets!”
Huang Xinhai picked up the metal lighter on the table and pointed it towards Huang Guangze said, "In the low-end lighter market, the price war is too fierce and the profits are too low!
This year, I went to America, Old Europe and other places to inspect. Nowadays, the market for retro-looking lighters and high-end lighters is emerging. Although this market is not large in scale, it is much more profitable than low-end lighters.
I plan to establish a foreign brand of lighters in France. I will use this brand to enter the high-end and retro lighter market in the future! ”
Huang Xinhai was really tired of the price war. After the emergence of Torch Group, he knew that Xinhai could not move, so he simply prepared to transform.
As for establishing a foreign company overseas Brand, this is a trick that many companies are playing now. This is a trick for future generations, but now, many people still use this trick, thinking that foreign brands are superior
Not only domestically, but also overseas. In the current market, a brand, if it is an old European or American brand, may be quite popular. Foreign prejudice against domestic brands will not disappear in a short time.
"Torch Industrial Park is complete. In the lighter industry chain, we put the production here, and the cost can be reduced a lot. As long as we are responsible for the appearance design and the brand can do it, the profit will definitely be much higher than before! ”
Looking at the smug Huang Xinhai, Huang Guangze hesitated to speak. He wanted to say, is it so easy to make a brand, but thinking about it, there seems to be no other choice now. Torch Group is like a bulldozer, running rampant against other lighter manufacturers and having to transform. Of course, you can also choose to go head-to-head with Torch Group, just to see whether it will be crushed into slag by Torch Group.
The lighter industry has reached this point. People like Huang Xinhai are not alone in wanting to transform. It is just the emergence of Torch Group that has catalyzed this scene.
Just when Huang Xinhai was preparing to open a new factory in the Torch Industrial Park, recruiting designers and R&D personnel to develop a new type of lighter, a piece of news suddenly came out that shocked him.
“Recently, in order to better develop the domestic lighter industry, the five departments of Yanjing, including the Economic and Trade Commission, Development and Reform, Foreign Exchange, Industry and Commerce, and Customs Administration, plan to support domestic lighter manufacturers, establish the National Lighter Import and Export Association, and formulate plans for the lighter industry Details..."
Huang Xinhai's face was filled with surprise and confusion when he saw the news in the newspaper. The name of the Lighter Import and Export Association can make people vaguely understand what this association is used for.
As a person in the industry, when I saw the news in the newspaper, I immediately thought that this was spreading the news. I am afraid that in a few days, the Lighter Import and Export Association will be born.
"What exactly is the Torch Group going to do?" Huang Guangze asked Huang Xinhai in surprise.
Look at the major departments published in the newspaper, and then think about which lighter manufacturer they support, you can understand which company this blow is for. If the Lighter Import and Export Association really If it is established, no surprise, it will be mainly formed by the Torch Group. This is something that anyone with a discerning eye can see.
“The lighter industry is really going to...change!”
When putting down the newspaper, Huang Xinhai murmured to himself that he was sure that as soon as the Lighter Import and Export Association was established, the entire domestic lighter industry would basically change, and even the global lighter industry would be affected.
Compared with Huang Xinhai's shock at the news, for some lighter manufacturers that mainly rely on exports, this news is like a bolt from the blue.
......
"It's just nonsense!"
"What is the Torch Group doing? Is it trying to ride on our heads to shit and pee?"
"We didn't know anything about the establishment of the Lighter Import and Export Association. Whose opinion were we soliciting?"
"This is too biased. It would be better to let us close down if we help the Torch Group to rise to the top." Okay!”
In a teahouse private room, all kinds of voices of cursing, joking, and ridicule could be heard. The people gathered here today are all companies in the lighter industry.
In the past, these lighter manufacturers competed with each other, and there were countless intrigues. They would often fight over an OEM order from a Japanese benzene lighter manufacturer, and they would not give it to their peers even if they lost money.
After arriving overseas, they also fought with each other, and the price war broke out. In the end, it became less and less profitable.
Moreover, there were no restrictions or rules in the lighter industry before. As a result, these lighter manufacturers had completely different quality and standards for lighters sold overseas and domestically!
In the past life, when the lighter industry faced anti-dumping lawsuits overseas, it had no choice but to switch from export to domestic sales. The lighters originally sold overseas began to be sold domestically. At that time, domestic users realized that lighters were actually special. There are two standards!
Before that, the quality of lighters exported overseas was the best, with top-notch safety performance, durability, and workmanship.
There are not many lighters sold to domestic users that are self-igniting, explosive, substandard in workmanship, and have rough shells. There have even been cases of lighters being put in trouser pockets and exploding in cars. There are not a few accidents caused by lighters.
It wasn’t until those batches of lighters originally intended for export were sold to domestic users that the country learned that the original safety performance of lighters could be guaranteed. After they were difficult to sell abroad, many lighters Manufacturers focus on the domestic market, so the quality of domestic lighters has gradually improved!
"That's enough!"
Listening to the commotion in the private room, with constant noise and curses, Gu Ming slammed the tea cup in his hand on the table.
As soon as Gu Ming opened his mouth, the room suddenly became quiet, which shows his prestige among everyone. This comes from his lighter company, which has ranked first in domestic lighter exports for several consecutive years, with an annual production of more than 50 million lighters. It is considered a giant company in the industry.
Of course, this was in the past. Now, one month's lighter production capacity of a certain company exceeds Gu Ming's annual lighter production...
(End of this chapter)
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