Reborn Industrial Tycoon

Chapter 389 Made in China!

Thanksgiving is an important holiday in the United States, and after Thanksgiving, the United States will usher in the annual shopping festival, also known as "Black Friday."

On this day, shopping malls will launch the biggest discounts and promotions of the year, and Americans are also used to crazy shopping on this day.

On the eve of Black Friday, merchants will announce the discount list of products in advance. Some merchants even treat the discount list as a trade secret and will not release relevant information until the last day.

Mrs. Smith held a discount list in one hand and a pen in the other hand, constantly circling the products she planned to buy on the discount list. It looked like a shopper in a Double Eleven household who was frantically adding to the shopping cart.

"The original price of a Panasonic microwave oven is US$629, and the discounted price is only US$579. This price is still a good deal." Mrs. Smith thought for a while and circled a Panasonic microwave oven on the discount list.

Then Mrs. Smith saw the message on the Whirlpool microwave oven.

"The original price of a Whirlpool microwave oven is US$649, and the discounted price is also US$579. It is the same price as a Panasonic microwave oven!"

Mrs. Smith was slightly startled. In his impression, the price of American brands has always been higher than that of Japanese brands. Now it is the same price as Japanese brands. It is really rare!

"Since the prices are the same, I must choose Whirlpool!" Mrs. Smith did not hesitate to draw a circle on the Whirlpool microwave oven, and then put a cross on the Panasonic microwave oven.

For Americans, the only reason they choose Japanese brands is because they are cheap.

In the 1960s and 1970s, after Japanese products entered the U.S. market, they were known for being fake and of poor quality. However, with their low prices, they greatly impacted the U.S. manufacturing industry. By the end of the 1970s, the United States also launched a boycott

As for Japanese goods, Americans also smashed Japanese cars at that time.

After the 1980s, the quality of Japanese products has been significantly improved, and at the same time, they have gradually moved from copycats to independent research and development.

However, for those Americans who have experienced the 1960s and 1970s, their impression of Japanese manufacturing is still at the level of copycats and poor quality. Therefore, when American brands and Japanese brands are the same in price, American consumers will certainly

Choose American brands without hesitation.

…

On Black Friday, before dawn, there were a large number of customers lining up at the entrance of the mall, some of whom had already been there last night.

The moment the mall door opened, customers rushed into the mall like crazy and started throwing things into the shopping carts.

In front of the microwave oven counter, customers looked at the price of Panasonic microwave ovens, then looked at the prices of Whirlpool microwave ovens, and reached out to the Whirlpool microwave ovens without hesitation.

After a while, the shelves were cleared of Whirlpool microwave ovens, while few Panasonic microwave ovens were sold.

A customer who didn't buy a Whirlpool microwave oven couldn't help but complain to the manager of a passing shopping mall: "Manager, you should restock the microwave ovens here!"

"I have already sent people to the warehouse to pick up the goods." The manager paused and then said: "Madam, you can also look at other brands first, such as the Panasonic microwave oven over there. The sales have always been very good."

For shopping malls, it doesn't matter which brand they sell, as long as they sell, they can make money.

But the customer shook his head: "The price of a Panasonic microwave oven is US$579, and the price of a Whirlpool microwave oven is also US$579. Since the prices are the same, why should I buy a Japanese brand!"

Another customer next to him also helped: "Since the prices are the same, only a fool would choose Japanese products!"

The manager thought about it and realized that this was true. Since the prices of Whirlpool and Panasonic were the same, buying a Panasonic microwave oven would be a bit silly! If it were him, he would also choose to buy an American brand.

Even though Whirlpool microwave ovens are out of stock on the shelves, customers still won't choose to buy Panasonic microwave ovens.

After all, other customers buy American brands, but I can only buy Japanese brands for the same amount of money. If I compare the two models, I would rather not buy a microwave oven than be looked upon as a fool by others!

…

After Black Friday, the mall begins to take stock of the sales situation, and then feeds back to each agent, who then feeds back the product sales situation to the manufacturer.

At the Whirlpool headquarters, at a management meeting, the marketing director was reporting Black Friday sales to a group of executives.

Finally, when it came to microwave ovens, the marketing director said: "Compared to last year's Black Friday, the sales of our microwave ovens have increased by 70% year-on-year."

"Grew so much?" Whirlpool's elderly CEO interrupted the marketing director.

The marketing director saw that the CEO had doubts about the data, so he said with certainty: "Yes, sir, I have personally verified the data from the National Gold Dealers and found no problems."

The sales data comes from various dealers across the United States. If there is a problem with the data of some dealers, it is possible, but it is absolutely impossible that there is a problem with the data statistics of all dealers in the United States.

"Why did the sales of microwave ovens increase so much on Black Friday this year? There shouldn't be any economic stimulus policies from the government recently, right?" the CEO of Nianbuy continued to ask.

"If it is caused by the economic stimulus policy, then the sales of other household appliances should also increase. However, the sales of other household appliances are normal. Only microwave ovens have increased, so it is not caused by policy reasons."

The director of the marketing department paused and then said: "According to the analysis of our marketing department, the reason why the sales of microwave ovens have increased significantly is because we have lowered the price of microwave ovens.

In the past, our microwave ovens were about 20 US dollars more expensive than Japanese products. Now we have lowered the price of microwave ovens to the same level as Japanese microwave ovens. Many customers who originally planned to buy Japanese microwave ovens chose to buy our microwave ovens, so our microwave ovens

Production will increase significantly!"

"It turns out that it relies on price reduction!" A senior executive curled his lips disdainfully. In his opinion, price reduction also means reducing profits, which is the most untechnical marketing method.

The marketing director saw what the executive was thinking, and he immediately said: "Although we have lowered the price of microwave ovens, the net profit from each microwave oven we sell has not decreased. On the contrary, it has increased.

.

The microwave ovens we sell now are all OEMed by Chinese companies. Our OEM only charges an OEM fee of US$15 for each microwave oven manufactured, and our production costs have also been significantly reduced.

Considering that the processing cost of each of our microwave ovens was more than 45 US dollars before, even if we reduce the price by 20 US dollars, the net profit will still increase, or we still have room for price reduction."

Upon hearing this conclusion, the executives were all moved.

The price has been reduced, but the net profit has increased. In other words, the 70% increase in sales on Black Friday has brought about more than a 70% increase in profits!

A senior executive took a deep breath and said, "This result should be what the board of directors wants to see most, and it should be mentioned in next month's financial report."

For management, the board of directors is always a big knife hanging over their heads. The purpose of the existence of management is to satisfy the board of directors.

When it came to the board of directors, the old CEO had a worried expression on his face and just listened to what he said;

"The guys on the board of directors only have money in their eyes. If they find out that moving the factory to China and letting the Chinese do OEM work for us can save so much cost, then they will definitely demand that other products be moved to China.

Factories are also moving to China, and by then our factories in the United States will probably be doomed!"

…

Some are happy and some are worried. While Whirlpool is excited about the increase in sales of microwave ovens, Panasonic's headquarters in the United States is worried about the sales of microwave ovens.

In the conference room, Panasonic North America President Takamiya Yuuto's face was ashen. Takamiya Yuuto was only sent to North America as president three months ago. Black Friday was his first big battle after taking office, but he did not expect that this battle would start.

It's not pretty.

I saw Yuuto Takamiya shouting at the crowd: "On Black Friday, our microwave oven sales dropped by 80% compared to last year! Who can tell me what is wrong with you?"

"Mr. President, we have conducted an investigation. The reason why the sales of our microwave ovens plummeted on Black Friday is because Whirlpool in the United States launched a price war against us. They lowered the price of microwave ovens to the same level as ours."

The speaker was Shigeru Inoue, head of marketing department of Panasonic North America.

Inoue is a common surname in Japan, and during the shogunate era, Inoue was also a noble surname in Japan. Shigeru Inoue is said to have aristocratic ancestry and an unusual family background. He came to the United States to study in high school.

Takamiya was worried about Inoue Shigeru's family background, so he calmed down a little and asked: "Since the price is the same, it is 50/50 at most, why did our microwave oven sales drop by 80%?"

"Mr. President, Americans still don't trust our Japanese brands after all. When I first came to the United States to study, it happened to be the time when Americans were boycotting Japanese products. At that time, our Japanese products suffered heavy losses."

Inoue Shigeru paused and then explained: "If the prices of American brands and Japanese brands are the same, Americans will definitely give priority to American brands. Unless they have to buy them, they will not consider Japanese brands.

In the United States, without a price advantage, it would be difficult for our products to compete with American brands. But what I didn't expect was that Whirlpool would use price wars to deal with us!"

"Can't Whirlpool use price war?" Takamiya asked subconsciously.

"If Whirlpool could use price war, they would have done so twenty years ago. Of course, when Panasonic first entered the United States, American home appliance companies could have used price war to drive out our Japanese products. But they did not

No!" Shigeru Inoue replied.

Takamiya nodded: "I know this. In order to deal with our products, the Americans used Section 301 of the Trade Act. Later, in order to reduce the trade deficit, they even made us sign the Plaza Accord."

"Mr. President, you are right. Based on my understanding of Americans, if they cannot gain an upper hand in competition, the first thing they think of is not to increase their own competitiveness, but to find ways to reduce the competitiveness of their opponents.

He will even use some very despicable methods!”

Inoue Shigeru continued: "So even when Japanese products entered the United States in large quantities, the Americans did not use price wars, but increased tariffs to restrict our products. Now that Panasonic has successfully established itself in the United States, they have begun to use

There’s a price war, which makes me feel very strange!”

"I think the reason why Americans started using price wars is precisely because we posed a huge threat to them, forcing them to use price wars to maintain the market!" Takamiya Yuuto said confidently.

When Takamiya Yuuto first arrived, he still had the idea that Japan was the best in the world.

However, Shigeru Inoue has lived in the United States for many years and is very familiar with the urinal nature of American companies. He obviously does not believe in Takamiya's judgment.

Inoue Shigeru wanted to remind Takamiya Yuuto, but he swallowed his words again. After all, in Japanese corporate culture, questioning the boss is not what subordinates should do.

Just listen to Takamiya continue to say: "Since Whirlpool is going to start a price war with us, then we will fight to the end. Starting from tomorrow, our microwave ovens will also start to reduce prices, and we must win back the market!"

…

Before and after Christmas, Panasonic's microwave ovens had three price cuts.

However, every time Panasonic lowers its price, Whirlpool follows up without hesitation. Panasonic lowers its price by US$10, Whirlpool also lowers its price by US$10, Panasonic lowers its price by US$15, and Whirlpool also lowers its price by US$15. The microwave oven prices of Panasonic and Whirlpool are always at the same level.

In the North American market, as long as the prices of Panasonic and Whirlpool microwave ovens are the same, American consumers will naturally choose Whirlpool over Panasonic.

This month, Panasonic has continued to cut prices, but the sales of microwave ovens have continued to decline.

After all, microwave ovens are a highly profitable kitchen appliance. The plummeting sales of microwave ovens also directly affected Panasonic's annual report in North America.

The figures in the annual report were not good to look at, and Takamiya Yuuto could not sit still. He held another meeting to discuss countermeasures.

"The price of our microwave oven has been reduced, and the price of Whirlpool's microwave oven has also been reduced. It seems that they are going to fight the price war to the end and plan to fight us to death! We must not back down at this time!"

The determined expression on Takamiya Yuuto's face was like that of a samurai who was about to be "broken into pieces."

Shigeru Inoue said, "Mr. President, don't you realize something is fishy? With the production costs in the United States, they have the confidence to start a price war with us?"

"The exchange rate of the Japanese yen has been rising again recently!" Takamiya Yuuto said subconsciously.

"Even if the exchange rate of the yen rises, the production cost in the United States is still one-half higher than that in Japan." Shigeru Inoue continued; "Mr. President, I went to find out about the production situation of Whirlpool's microwave ovens. It turns out that they have already moved Milwaukee to

The microwave oven factory has been shut down."

"Where are Whirlpool's microwave ovens produced? Did they move to a state with lower production costs?" Takamiya asked.

"Mr. President, I went to buy a microwave oven made by Whirlpool. Please allow me to bring it over. Then the truth will be revealed." Shigeru Inoue said.

Takamiya nodded, and Inoue Shigeru immediately stood up and walked out of the conference room. It didn't take long for a microwave oven to be brought in.

Inoue Shigeru pointed to the label on the microwave oven and said, "Mr. President, please read the label."

Takamiya Yuuto looked down, and one of the very eye-catching English letters on the label came into his eyes.

“Made in China!”

Thank you for your subscription. I temporarily deleted a part of the plot, so I will bring up the following plot now. Writing without an outline, this kind of temporary change of the plot is quite troublesome. Just a little less today, and more tomorrow after passing the test.