Chapter 479 The start of supermarket price war
At the end of March, Honor Electronics' washing machines and refrigerators were directly launched at Carrefour, with more than 40 stores at one time.
"This washing machine costs 499?" a middle-aged woman said in surprise after seeing it.
The salesperson was also nearby and immediately introduced: "Yes, Miss, this is the new washing machine launched by our Hong Kong Honor Electronics. It"
Following the salesperson's introduction, the middle-aged woman immediately became interested. After some conversation, she said, "Then I bought it, will you deliver it?"
The salesperson said: "As long as you agree on a time, our people will deliver it, but it is only within 2Km, and it is free for people below the third floor. If you exceed the distance or the floor is very high, you will need to pay extra."
"Okay, I have no problem." The middle-aged woman said: "Then I can buy one cheaper, can it be cheaper?"
The salesperson said politely: "Miss, our supermarket does not negotiate prices, but we can give you a 2kg bag of washing powder, how about it?"
"That's okay." The middle-aged woman didn't bother much.
Supermarkets are not vegetable markets, and the marked prices will not change. Counter-offers are not accepted. Although this makes many people who can counter-offer unhappy, most of them still think it is good. The prices are clearly marked. If you like it, buy it. If you don’t like it, buy it. Just leave, at least it won't be like a small store, where many people are sometimes taken advantage of.
Two days later, Wang Zhiqun and Liu Huayu came to the headquarters of Changxing Building.
"Yang Sheng, in the past two days, we have sold a total of 56 washing machines and 12 refrigerators." Wang Zhiqun reported the data.
After hearing this, Yang Wendong smiled and said: "It's not a lot."
Wang Zhiqun said: "Yes, this kind of big item is not a consumable, and the short-term concentrated publicity effect is not very great. Only people who need to buy it will buy it. In addition, Hong Kong's economy is not good recently, so the data is not very good."< br>
"Hong Kong's population is too small, and there have been no new real estate transactions recently, which will inevitably affect home appliances." Yang Wendong also said.
Wang Zhiqun said: "Yes, the sales of Honor's other electrical appliances have also fallen in Hong Kong. However, many electrical appliances are mainly exported. A drop in the Hong Kong market will not affect the entire company."
"Then let's export to Bayan and Singapore first." Yang Wendong added: "The economies of these two places are doing well recently and their populations are much larger. We also have stores and after-sales services there. When the markets in these three places stabilize, If there is no quality problem, then we can enter other Asian markets.”
"Okay, I'll make arrangements right away." Wang Zhiqun replied.
"Well" Yang Wendong looked at Liu Huayu again and asked: "How is the recent price war with Yifeng Supermarket going?"
Yi Feng is a supermarket owned by Jardine Matheson. After the success of Carrefour in the early years, Jardine He came in and wanted a piece of the pie. Of course, he was not the only one, but other stores did not have a large scale.
In the past few years, the competition between the two supermarkets has sometimes been suspended, but last year Yifeng started discount promotions again and tried its best to open more stores in an attempt to win more markets. Naturally, Carrefour would not stand indifferent, so under the authorization of Yang Wendong , so he went in.
Liu Huayu said: "Currently, the two sides are still engaged in a price war. On my side, I have controlled the prices of rice, flour, chicken, roast chicken, sausages and some of our internal industrial products. On the other hand, Yi Feng has relied on the strong power of Jardine. Its trading capabilities keep the prices of many overseas commodities very low.”
"Then this is misplaced competition?" Yang Wendong thought for a while and said.
"Absolutely." Liu Huayu said: "Neither of the other side is a rival in the fields they are good at. Now both parties are investing money in discounts and advertising to attract users;
It happened that Changxing Media had little business during this period, so I put in a lot of advertising. However, although Jardine did not own any media, they could still buy a lot of advertising space due to their influence. ”
"Okay, let's keep playing like this. I want to see how long Yihe can play." Yang Wendong said nonchalantly.
In terms of scale, Jardine may be larger than Changxing Group, but its profitability is absolutely incomparable. And as far as Yang Wendong knows, many of Jardine's overseas projects have been losing money. If Hong Kong hadn't been able to continue blood transfusions and had a strong foundation, it would have been a long time ago. I can't hold it any longer.
In a real price war, my health bar is much stronger than that of Yihe.
Liu Huayu said: "Yes, as far as I know, Yihe's internal support for Yi Feng cannot be unlimited. If it suffers serious losses or cannot get enough market for too long, it may be abandoned."
"Well, then continue to bleed them." Yang Wendong added: "You also have to look for other locations in Hong Kong. I will arrange to purchase properties after a while."
"Okay, thank you Yang Sheng." Liu Huayu also said happily.
Since the middle of 1963, Carrefour's expansion has been a little slower. The high land prices at the time were also part of the reason. Until today, Carrefour's expansion speed is slower than Yifeng.
Yang Wendong continued: "In addition, we should also pay attention to Singapore. Just like Hong Kong in the 1960s, we should cover the urban population in Singapore as quickly as possible. Only when we win the Singapore market can we easily enter other Southeast Asian countries."
After winning the retail market in Singapore, the biggest benefit is that it has a local storage base and some commodity purchasing bases, which makes it easier to expand around it. This is also the expansion model of supermarkets in many countries, and the same is true for Wal-Mart. Only Hong Kong It's a city, so there's no such problem.
"Understood." Liu Huayu agreed.
The time soon came to April, and people in Hong Kong suddenly discovered that both TVB and many newspapers began to promote Carrefour's various cheap products. Some people even received free supermarkets in large shopping malls, terminal operations and other places. Promotional pages, etc.
People who go to Carrefour can also find that many basic daily necessities are really cheap. Firewood, rice, oil, salt, sauce, vinegar, tea, etc., except that there is no firewood, everything else is available.
This has also allowed many people who were living in poverty due to the economic crisis to save a little money, although it is not a lot.
Jardine Matheson Group Headquarters, Central, Hong Kong Island:
Several ghost guys gathered together and looked at the financial reports in their hands. The leader was John Keswick, the third in command of Jardine Matheson Group.
"Mr. Keswick, this is the recent financial data of Yi Feng Supermarket." A blond man handed over a piece of information,
After taking it, John Keswick took a look and said: "Yi Fung lost HK$200,000 last month? Is this because Land has already given enough preferential rent?"
The blond man replied: "Yes, because Carrefour has had too many advertisements recently, and they have been engaged in price wars on many products throughout the supermarket. Many products are even sold at a loss, which has caused many people to go to them. < br>
Although we also have discounts and advertisements, our discounts are not a necessity for every user. In terms of advertising, we cannot match TVB's promotion. If you want to buy TV station advertisements, you can't. "The media again?" John Keswick frowned and said, "What about buying advertisements from Li's TV station or other newspapers?" ”
The blond man replied: "The number of viewers of Lai's TV station is far less than that of TVB. Other newspapers can do it, but the cost is also very high. And the Changxing Group behind Carrefour is also the largest media group in Hong Kong. We can't compare in this regard." .”
John asked coldly: "Then you mean, just sit there and wait to die?"
"." The blond man was silent. There was nothing he could do. The other party attacked desperately, and he could fight back. But the problem was that he did not have the media advantage. If this continued, the losses would be more serious, and he would not be able to explain to the head office.
After a while, John Keswick said: "I will go see William and discuss this matter with him."
The others didn't say anything. The current situation was obviously that the two major consortiums were fighting each other. They, the workers, were of little use.
Half an hour later, in the Taipan office of Jardine, William Keswick said after reading the information: "With a loss of HK$200,000 a month, this kind of loss is not a big problem, but Carrefour has started to be ruthless this month. Does it show any attitude? ”
"You mean Carrefour wants to take this opportunity to force us out of the supermarket industry?" John asked.
William said: "It's possible. It's not like we haven't done this kind of thing before, it's just not a supermarket."
"The capital scale of Changxing Group is indeed not small, but can it compare with our Jardine Matheson?" John asked incredulously.
"You underestimate Changxing Group too much. Their products are now sold all over the world. Even if one person earns one penny, how many do you think there are in the world?" William shook his head and said, "And now that they have the advantage in the media, he invested a piece of it." We have to invest two yuan. This cost difference will be a big loss for us over time.”
"But we can't give up on Yifeng, right?" John said: "We have invested tens of millions in this project, not counting Land's special rent reduction and care. Now it has become an industry. If we give up, all the previous investment will be lost." ”
Although Jardine Matheson Group is controlled by the Keswick family, there are many other shareholders who have to account for large losses, and competition within the Keswick family is also fierce.
This was the project he pushed for at the beginning, and it was gradually completed under his operation. If it was declared to have failed, it would have ended his development career in the Jardine Group. Not to mention that he still wanted to ascend to the highest position, right now. All may be punished.
William also frowned: "Hong Kong's economy has not been very good in the past two years. Land has also suffered serious losses, and the same goes for overseas projects. At this time, you still have to fight a price war with Carrefour, and the group's support for you is also limited.
Moreover, Carrefour has now begun to enter the Gulf and Singapore markets. Even if they lose money in Hong Kong, they can make money from other places. How do you compare? ”
John paused and said: "I don't want to give up. If I can't compete with daily necessities, then I will choose imported goods or other goods to avoid competition with Carrefour."
"Okay, let's give it a try." William thought for a while and said, "I will give you a sum of money, and then you will be able to run your own business independently. Land will still give you a certain rental discount, but in terms of subsequent finances, you will be on your own. Once you are independent, go to the bank for a loan if you need money;
If you can succeed in the end, then it will be better. I can make Yi Feng public to make money, but if it doesn't work, I have no choice. I need to explain to my family and Yi He's shareholders. ”
"Okay, I promise you." John Keswick agreed.
In May, the price war in the supermarket sector also intensified.
On this day, Yang Wendong looked at Carrefour's financial report and said with a smile: "It lost more than 100,000 yuan a month, which is not much. The key depends on how much Yifeng lost."
"They have restrained their advertising and discounts in recent times, and it is estimated that they will not lose much." Liu Huayu said: "But the price is that there are fewer customers. Many people are attracted to us, unless some people live here Next to Yee Fung Supermarket.”
"There is no need to think about these people. They can't be pulled over." Yang Wendong shook his head and said: "Location is very important. How many properties or land have you chosen during this period?"
Liu Huayu said: "I'm interested in more than 30 people, but I'm not sure if they are willing to sell."
"Let's wait until the right time to ask about this." Yang Wendong said.
There is still more than a month left, and I don’t know how many people want to sell their properties by then. Even if some people don’t want to immigrate, they will still want to secure their funds, especially US dollar gold, which is more popular.
"Okay." Liu Huayu said again: "Yang Sheng, we are in a price war and publicity war with Yifeng. It is not just us who will lose, but also many other retail stores, even street shops or other department stores and supermarkets. Due to the impact and the poor economy, some of these companies have begun to close down.”
"Don't worry about them, we will execute according to our plan." Yang Wendong said nonchalantly: "Since you are doing business, you should bear the possibility of failure, but if the location is good, you can try to communicate with us on a large area. We take it.”
A fight between the first and second will hurt the third. In fact, many price wars also have this purpose, because the first also knows that the second is difficult to kill, but it is hard to say about the rest. Let's kill a group first.
Liu Huayu agreed: "Okay, then I will continue to increase my efforts."
"Okay, if you don't have enough funds, come to me." Yang Wendong smiled and said.
This year is not only a good time to buy the bottom, but also a good time to completely destroy some British capital industries. They are not sure about the industry. Let’s talk about this supermarket. If everyone develops normally, no matter how strong the capital of Changxing Group is, it is unlikely to be completely defeated. other brands.
But as long as you continue to bleed the other party now, when the economic crisis is at its worst, the other party may give up. Once you give up, you will have a vacuum period, whether it is taking over the other party's property or opening more stores in suitable locations after the other party closes it. In this way, it will be impossible for other capital to enter in the future.
Just like Meituan Didi in the previous life, other capital can actually easily enter these fields, but the giants have already taken shape. How can you win if you enter? Even if Byte is so powerful, it can only bite off a piece of flesh.
The same is true for the offline industry. When Hong Kong's major economic towns have their own Carrefour supermarkets, even Jardine Swire and Wheelock combined will not be able to create another supermarket chain brand. This is also Yang Wendong's purpose. Take this opportunity to completely monopolize the retail industry, and then use more purchasing channels to reduce costs and form a stable moat. ,
Of course, I can't say that I'm 100% sure whether I can successfully get Yihe to give up Yifeng Supermarket. I can only say that I will try my best to bloodlett, and he will also have some other means against Yihe itself.
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(End of chapter)