Rise of the Reborn Giants

After leaving Huaxin Research Institute, Ye Yun drove directly to Leo Group.

Two days ago, Leo Group and Yaoke New Energy Technology Co., Ltd. have completed the equity s

One billion investment funds have also been transferred to the account of Yaoke New Energy Company.

Moreover, the Leo factory has also begun to relocate to the Nantai County Industrial Zone, and I believe the assembly line will be officially launched soon.

The workers are all local residents of Nantai County. What was once a wasteland has now been transformed into modern factories.

Zhao Wenze and others are also quite satisfied that it can not only stimulate employment and bring popularity to Nantai County, but also create a large amount of tax revenue for the local area.

Naturally, we also provide a lot of preferential assistance to companies like Leo Group that have moved there.

The car stopped at the entrance of Leo Group. Ye Yun got out of the car and was about to call Wang Feng when a Mercedes-Benz commercial vehicle stopped.

"Mr. Ye?"

"Why are you here?"

Wang Feng, chairman of Leo Group, was slightly surprised when he saw Ye Yun.

Ye Yun smiled.

"Of course I came here to see you, Mr. Wang."

"How about it, Mr. Wang can spare some time?"

Wang Feng smiled bitterly.

"Mr. Ye, please don't make fun of me. You all came here in person. I have to find time to come out even if I don't have time."

After that, Wang Feng said to the secretary in the car.

"Xiao Zhang, I would like to inform you that all today's itineraries and meetings are cancelled."

"Clean up the reception room, make two pots of white tea, and find a hotel to book a private room..."

"Today at noon, I want to have a drink with Mr. Ye no matter what."

After arranging everything, Wang Feng took Ye Yun and walked directly in.

This is an office opened by Leo Group, which is equivalent to a branch.

With five floors, the place is not too big, but there are a lot of employees coming and going.

After all, setting up a branch in Shanghai almost means doing business nationwide.

When we arrived at the reception room, Wang Feng's secretary had already arranged everything.

Wang Feng invited Ye Yun to sit on the sofa and smiled.

"Mr. Ye, don't leave until noon. After we finish talking, we can go directly to the hotel next door for a quick meal. I'll have someone prepare it."

"Whatever you want to eat, I'll let my men prepare it first."

Ye Yun waved his hand.

"You're welcome, Mr. Wang, you can eat anytime. I have something to do when I get back to the company later, so let's forget it today and do it next time."

"I came here today mainly because I wanted to ask Mr. Wang how the current domestic home appliance sales market share is."

Ye Yun got straight to the point.

Wang Feng was also stunned by Ye Yun's directness.

"It's not bad. Although Remy Group is maliciously destroying the market, our Leo Group has a good reputation over the years."

"The mid-to-high-end market can also occupy a place. Generally speaking, in the entire home appliance market, our Leo Group accounts for almost three to five percent of the market."

"Remy Group should account for between 45% and 50%, accounting for half of the entire home appliance market."

"The rest is divided between some foreign brands and some small domestic brands."

Wang Feng calculated it in his mind and finally gave a rough number.

Ye Yun smiled.

"Mr. Wang, you should be calculating the urban home appliance market."

Wang Feng shook his head.

"No, I can't say that completely. After all, transportation is now convenient, and most residents in villages and towns will also go to the county or city to buy home appliances. Anyway, it is convenient to send these things home."

"Of course, these market shares are actually calculated into the urban market."

"The market is so big. After all, no one can run out of food and come here every day to buy appliances. Now that the Remy Group is causing trouble, small and medium-sized enterprises like us are being squeezed so hard that we can hardly breathe."

Wang Feng sighed, he was quite helpless.

It is because Remy Group relied on various tricks and cut corners that they have a big brand, a high market share, and high profits!

Other small and medium-sized enterprises have no money at all if they want to develop!

They cannot fully compete with the Remy Group. Without the market, there will be no profits. As a result, they cannot spare the energy to develop mid-to-high-end models.

In the mid-to-high-end market, let alone compete with those foreign brands.

We are directly trapped in a vicious cycle here.

Ye Yun nodded.

"Mr. Wang is right. The market is now extremely saturated. If you want a company to develop, you have to steal food from other people's mouths with real swords and guns."

"But have you ever thought about it, since the existing market is saturated, why not find another way? While grabbing the existing market, open up new markets?"

"The entire southern provinces have a total population of more than 800 million. If there are four people in a household, that would be 200 million households."

"On average, if the number of people who need to buy electrical appliances every year is one-twentieth, then there should be 10 million households."

"But can the total market you just calculated reach 10 million households?"

Ye Yun looked at Wang Feng.

Wang Feng was slightly startled.

“Ten million households buy?”

"How can it be!"

"Not even 3 million households! Based on a total market share of 5%, 150,000 households can purchase it a year."

"But in fact, if there are 100,000 households, our Leo Group will have a great harvest!"

"On average, the total amount of home appliances that each household needs to purchase is about 100,000 yuan. According to the normal profit of the home appliance industry, it is about 20 to 30 percent, which works out to more than 20,000 yuan per household."

"With a market share of 10 billion, a profit of more than 2 billion is already incredible!"

"Even for Lei Shujun, the profit of Remy Group is higher than ours. It is incredible to have a profit of 20 to 30 billion a year."

"If 10 million households really purchase it, it is equivalent to a threefold increase from the current level!"

"It's impossible to make a profit of 5 to 6 billion a year, it's absolutely impossible!"

Wang Feng immediately questioned Ye Yun's words. His doubts about Ye Yun were mainly based on his many years of experience in the industry!

Ye Yun smiled.

"Mr. Wang, even if the ratio is not one-twentieth, it's one-forty, right?"

"The problem is that now the entire home appliance market cannot even reach 3 million households a year. Have you ever thought about the problem?"

Ye Yun continued to look at Wang Feng.

Wang Feng was silent, also thinking about this issue.

yes!

The population of the entire south is calculated as 800 million.

A family of four means 200 million households.

This is equivalent to one household having to replace all its home appliances every 40 years. On average, this works out to 5 million households every year.

But in fact, a family will need to replace electrical appliances in fifteen to twenty years at most, and home appliances will not last forty years at all!

But the actual number of households is far less than five million!

"There are simply not that many people who need to buy it...most people just don't want to buy it. If you remove the older ones, the base number will be reduced a lot."

Wang Feng explained in a low voice, but even he felt that this reason was so far-fetched.

Ye Yun shook his head.

"you are wrong!"

"It's because you ignored the biggest goal!"

“Sinking market!”

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