Rebirth in 1989: Creating the Chinese Technology Empire

Chapter 117 Japanese Brands’ Response: The Home Appliance War Begins

Japan, Tokyo!

In a Japanese-style manor, some important people came today.

These people are all important figures in the Japanese home appliance industry, and they represent the entire Japanese home appliance industry.

They gathered here today with only one purpose, which is to discuss how Japanese home appliances can survive in Europe and the United States.

It has been a week since the Robertson brand was officially launched. In the past week, the sales of Japanese brands in the US market have dropped sharply, with daily sales being less than two-thirds of previous sales.

And this downward trend has not stopped yet. If we do not take countermeasures, I am afraid that Japanese brands will have a more difficult time in the US market in the future.

Not only the US market, Wo Sheng Group will definitely expand to Europe next, and the European market will not be guaranteed by then.

"Everyone, everyone already knows about the US market. Judging from the feedback from the technology department, it will take some time for us to catch up with technology as a buffer. So now, we have only one way to go... "

Yoichi Morishita said with a serious face. As the most promising person within the Panasonic Group to be the next president, his words represent Panasonic.

"It is possible to reduce prices, but how much is appropriate? How long can we last after the price reduction? How long does it take for technological breakthroughs? If the reduction lasts too long, can we still raise the price after the technological breakthrough?"

Another old man asked directly, and these questions made everyone think deeply.

"Everyone, please don't forget one more thing. That is China's Huasheng Group. According to our investigation, the company that provides technology to Wosheng Group is China's Huasheng Group. And Huasheng Group holds in its hands We have dismantled all the patented technologies of DVD players. Their decoding chip manufacturing technology is very high. We suspect that China already has a very advanced semiconductor industry chain. And Wo Sheng's products are actually from Huasheng Group. Products, according to the information we have investigated, Wosheng Group is actually a shell company. Everyone, do you know what this means? China has a large amount of cheap labor, and now it has such technology. Everyone, we negotiate prices with them. Are you sure you can win the battle?"

At this time, the words of people from Sony made everyone become serious.

Can a price war be won?

If Wo Sheng Group is a real American company, they are confident because they are confident that they can control their costs lower than American companies.

But if they switch to a Chinese company, and it is a Chinese company with advanced semiconductor technology, they don't have much confidence to fight a price war.

Because they know best how cheap China’s labor force is.Some brands now have a lot of business in China, and major companies are also optimistic about the future of the Chinese market. They know China better than Americans.

It is this understanding that makes them more aware of the difficulty of fighting a price war with Wo Sheng.

At the same time, they were also shocked that a Chinese company had such advanced technology.You must know that in their perception, China's technology has been very backward in recent years. In recent years, many Chinese companies have come to Japan to introduce technology and production lines.

Nowadays, many electrical appliance production lines in China are imported from Japan. Of course, these things are not the most advanced, and some are even eliminated by Japan. However, these things and technologies are still regarded as treasures by many Chinese companies.

Therefore, these people have been dismissive of Chinese enterprises in recent years, and they have looked down upon Chinese technology even more. They feel that China is a poor and backward place, not worth mentioning.

Now a mysterious Huasheng Group suddenly appeared, possessing such advanced technology, and for a while they didn't know how to change their mentality.

"Everyone, what if we also learn from Wo Sheng Group's model?"

Just when everyone was deep in thought, an uncoordinated voice suddenly sounded. Everyone looked over and found that it was Toshiba representative Yamada Koji.

"Everyone, can we also try Wo Sheng Group's method? China has cheap labor. If we move the factory to China and then follow Wo Sheng Group to build an assembly plant in the United States, will we be able to price it? Do you have the capital to fight?"

Yamada Koji's words made everyone's eyes widen.

Yes, Americans can play like this, why can't we play like this? Use magic to defeat magic.

"Everyone, the relationship between China and the United States is not very normalized now. Who can guarantee the risks involved? Don't give the United States a handle when the money is not earned. What will be the result then? Mr. Yamada, you Toshiba should Have experience."

Morishita Yoichi couldn't help but said, and as soon as he said this, everyone fell silent.Yamada Koji's face became even more ugly.

Yes, it's too risky.

China belongs to the red camp. If you move your factory to China, your American dad will have a reason.

You must know that this example is real. Look at Toshiba being tortured by the United States, and it was almost tortured to death by the United States.

There are some tricks that Americans can play but they cannot.

Even if the United States knew about the tricks of Wo Sheng Group, it would turn a blind eye, because the major shareholder of Wo Sheng Group is Wal-Mart Group, which is American capital, and most of the money it makes goes into the pockets of the United States.

If Japanese companies dare to play like this, believe it or not, they will kill you in minutes.Unless you also open up your shares and let American consortiums control your company, you can do whatever you want.

"Everyone, let's stabilize the market first. But we can send people to contact Huasheng Group to see if they are willing to transfer technology. Also, China is a big market and we should pay attention to it. Don't let us end up defeating European and American companies. , but was stabbed in the back by a Chinese enterprise..."

Finally, an old man spoke and the others nodded.

It seems that this is all we can do now, stabilize the market first, buy some time and then think of other solutions.

"Mr. President, Japanese brands have reduced their prices..."

In Sam's office, an assistant walked in and said directly.

"How much did it drop?"

Sam asked quickly.

"It's directly reduced by 30.00%, and they also launched a trade-in service..."

The assistant's words made Sam frown.With a price reduction of 30.00% and the trade-in of old products for new ones, the Japanese brand is now preparing to lose money and make a profit. This price reduction has left the Japanese brand with little profit.

Robertson definitely can't cut prices casually now. After all, the product has just been released for more than a week. If Robertson follows the Japanese brand and lowers prices at this time, it will damage its own brand.

Such drastic price cuts by Japanese brands will definitely have a great impact on the sales of the Robertson brand.

Although Robertson brand products look better, they have higher technology.But if the price is much more expensive than Japanese brands, low-end consumers will still choose Japanese brands.

After all, for the low-end market, price is very sensitive.Japanese products are just ugly, but they are not unusable.If the prices are similar, everyone will definitely choose a good-looking product, but if the price difference is too big, then they can only follow the price.

Robertson's brand positioning is mid- to low-end, but the most important thing is the mid-range market, not the cheap market.Therefore, Wosheng Group cannot follow this price reduction.But we have to pay attention to this matter, and we cannot do nothing.

Sam thought deeply, and finally waved his hand to let the assistant go out.After the assistant walked out, Sam picked up the phone and made an overseas call to Xu Dabao.

"Sam, it's me..."

Soon Xu Huasheng answered the phone, and when he heard Xu Huasheng's voice, Sam immediately put a smile on his face.

"Boss, I'm glad to hear your voice again. I'm calling you because I have something to ask you..."

Sam told Xu Huasheng about the price reduction of Japanese home appliance brands to see what Xu Huasheng could do.

After listening to Sam's words, Xu Huasheng laughed.

"Actually, this matter is easy to solve."

Xu Huasheng said with a smile, and Sam quickly asked for a solution.

"Since the Robertson brand cannot compete with the Japanese brands on price, then introduce brands that can compete with them on price. If the Japanese want to compete on price, Wo Sheng cannot compete with them, but our Chinese enterprises can compete with them on price. In the war, we have an advantage over them. Our products are one-third cheaper than their current prices, and we can still make money, but they will not be able to, and they will have to pay back. Let our Chinese brands enter the American market, and let us Let’s start a price war with Japanese brands. After we kill the Japanese brands, we will have three parts of the world, Wo Sheng will go high-end, Robertson will go mid-range, and our Chinese brand will go low-end. By then we will not engage in vicious competition. The price premium will naturally be stable. If you make money together, you are a good friend. Tell Mr. Robertson that if Wal-Mart is willing to introduce our Chinese brand, our supply price to Wo Sheng can be lowered..."

Xu Huasheng's eyes were shining, and he wanted Chinese brands to replace Japanese brands in the European and American markets. If this happened, it would be of great benefit to Chinese brands.

As long as you can go out, go out first. It doesn't matter if you do the low-end first. Then slowly climb up from the low-end, boil the frog in warm water, and gradually increase the brand's premium ability, and finally enter the mid-to-high-end market.

In Xu Huasheng's view, the Huaxia brand is now for those who are barefoot and not afraid of wearing shoes. If you can go out, go out. If you are not allowed to go high-end, go low-end first. As long as the goods can go abroad and you can make a little money, then that will be fine. As for future development, Go slowly and little by little.

Anyway, for the Chinese home appliance brand, if they can go out and earn some foreign exchange, they are creating brand history. They have no brand pressure and are not afraid of low prices.

Now that the Chamber of Commerce is almost completed, the quality of future products will definitely improve a lot. Using these products to go out and compete in the global market will bring many benefits to these companies.

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