The Industrial Giant Reborn
Chapter 33 Business Progress (1)
A 250ml bottle of Red Bull is priced at about US$0.5 in American supermarkets, and there is a certain discount for selling in boxes. This price can be said to be very expensive. You must know that even in the United States in this era, many people earn less than a month’s salary. to $1,000.
Of course, this is only the average low-income group. There are still many rich people. As long as the advertising is in place, some people will buy it.
The cost of Red Bull, plus the cans is less than 0.5 Hong Kong dollars. The profit is as high as 1.3 Hong Kong dollars, and a million bottles can make a net profit of 1.3 million Hong Kong dollars. The money will be kept in overseas fund transfer companies, so as to avoid high taxes in the United States. This is actually a routine of many large companies. In the era of Internet surveillance, even if the European and American governments know about this loophole, they have no choice but to investigate. They can only keep an eye on various taxes in the internal market.
The first wave of orders came from the United States for 3 million bottles. However, Chen Zhiwen is not planning to transfer back the profits from the United States. Hong Kong is not short of money for the time being. After the money is settled through the terminal channel, it will be invested again. Go to the investment in American advertising.
The first principle is to enter the American market in the shortest possible time, so that everyone in the United States thinks of energy drinks and thinks of Red Bull, just like thinking of Coca-Cola and thinking of Coca-Cola. The reason for this rush is also because of the two American beverages. Giants, maybe they don't care about Red Bull now, but as long as Red Bull makes the market bigger, they will enter the market without hesitation to grab the cake.
This time will not be very long. As long as the previous few years are successful, the market will be stable. If you don’t make big mistakes, it will be difficult for Liangle to catch up. Although they have money, Red Bull’s high profits are not afraid of burning money for advertising. , In the history of later generations, Red Bull’s annual advertising investment in Europe and the United States is in units of one billion US dollars, and it has become the largest sponsor of the sports industry and the advertising industry. It can be said that more than half of the cost of a bottle of Red Bull beverage is advertising.
Coca-Cola has a variety of beverages, and Pepsi also has other food businesses. It will soon be unbearable to burn money in the energy drink market, and their other internal businesses will not support it. As long as that time comes, Red Bull can lie down. He collected money on the bed, and another benefit of being a financial sponsor in the advertising industry is naturally the incidental influence. After all, media giants also want to make money.
In Hong Kong, orders for millions of bottles were placed, and they were naturally busy. The current beverage filling machines are only semi-automatic, and the production capacity is far inferior to that of later generations of equipment that can produce tens of thousands of bottles per hour. A large number of people are needed, and recruitment has not stopped during this period.
As for Midea, more than 20 salespeople were sent to the Middle East. They all went to big cities in the Middle East and brought samples to find local distributors. Although Midea is not well-known, the Middle East is too big. Lack of air conditioner and refrigerator.
The electrical appliance brands in Europe, America and RB have been cost-increased by the oil crisis, and their domestic market has shrunk due to the oil crisis. Now that they see a new market like the Middle East and this group of rich local tyrants, they will naturally use the same tricks as later generations targeting the mainland. Joint price increases, one family is more ruthless than one family.
Although the Middle East is rich, dealers are not fools. They have always wanted to find cheaper suppliers. It’s just that in the era without the Internet, it’s inconvenient to make phone calls. Looking for other trading companies was like being slaughtered until Midea’s sales took the initiative to come to the door. .
The principle of Midea is that it will not raise prices significantly. After deducting production costs and transportation costs, it is enough to maintain a 30% gross profit rate. This price is much cheaper than the normal prices in Europe, America and Japan.
After a few more performance tests, although I had some doubts about the quality, but considering that even if it was repaired again, it would still be a huge profit for dealers like them, so a batch of orders were placed.
The demand in the Middle East is huge. Even if most of them are eaten by European, American and Japanese brands, the remaining small part is enough to support Midea. Therefore, Midea's factories also began to recruit people on a large scale.
"8,000 refrigerators and 3,000 window-type air conditioners will be shipped within a month. Is it in time?" Chen Zhiwen asked after arriving at the factory in Yuen Long, looking at the order in his hand.
"Chen Sheng, don't worry, there is no problem. I have already prepared enough compressors and some electronic components. Other materials are purchased in Hong Kong. Many factories in Hong Kong are relatively idle now, and they are basically trying their best to catch up with our orders." Lei Shengli said confidently.
"Okay, let's go all out to produce, pay attention to quality, and hire more people to check the quality. Except for problems with one product, our loss is enough to cost a worker's labor for several months." Chen Zhiwen nodded and said.
In the overseas market, the most troublesome thing is the after-sales service. An after-sales problem is several times or even ten times that of the same type of local after-sales problem. Therefore, it is difficult for a small place like Hong Kong to produce a big one without a local market. Manufacturing brands, because big manufacturing brands come from small companies, without enough local market, they cannot cultivate such enterprises, relying on overseas markets, if no one knows the bottom line, a batch of quality problems may make a good company Businesses go bankrupt.
Lei Shengli said: "Don't worry, Mr. Chen. I referred to Toyota's quality requirements for our car radio project, and started to benchmark other electrical products. In addition, I also invited two retired RB quality engineers from Toyota to consult. One of them is now in charge of the electrical project."
"Okay, in the manufacturing industry, learning from Toyota is a good way." Chen Zhiwen nodded and said, as the most successful manufacturing giant in the 20th century, Toyota's management style is the research object of all factories in the world, even if it is not the automobile industry, it can learn a lot. Of course, you don't have to learn everything, and you should optimize it according to your actual situation.
Chen Zhiwen then asked: "How about the car radio project? Toyota agreed?"
"Not yet, but the purchase over there said that there will be no major problems, and it is almost inseparable." Lei Shengli said.
"I can't tell until the end. Toyota chose our company, but it just wanted to use us to lower the price of its other suppliers." Chen Zhiwen shook his head and said, this kind of routine, he knew from the acquisition of Universal Electronics, and larger companies will do this Playing, the difference is that if it is better, it will eventually pull you into his supplier, and then give you some soup to drink, and almost kick it away.
But even knowing this, Chen Zhiwen still agreed with Midea to take this step. Anyway, the investment is not much, and the toss is only three to five million Hong Kong dollars. But if it succeeds, it will open a new door for the development of Midea's radio industry, car radios. The market, at least in the next 20 years, is still very promising. Even after 20 years, it is not difficult to upgrade the central control system.
In many industries, getting started is the most important.
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