Rebirth in 1989: Creating the Chinese Technology Empire

Chapter 87 Walmart’s decision: This time it’s a big one

Xu Huasheng was busy again, and time was spent in busyness.

At the end of February, Robertson, who had returned to the United States for a while, came to China again, and this time, he brought good news.

"Xu, the board of directors has approved our investment..."

Seeing Xu Huasheng, Robertson said with a smile, which made Xu Huasheng laugh. This is indeed good news.

Sam also came, with a smile on his face. It was obvious that his matter was done.

In the conference room, specific negotiations began.

After some negotiations, the entire joint venture was finally finalized.

Huasheng Group and Wal-Mart Group established a joint venture and jointly invested US$20 billion. Wal-Mart held 50.00% of the shares and Huasheng Group held 40.00% of the shares. Both parties contributed capital in proportion.

The name of the new company has also been decided, called Wo Sheng Group, and Walmart has already sent people to register the trademark.The trademark is also very simple, with a silver shield shape and gold WS letters arranged up and down, which is very textured.

Wosheng Group is a comprehensive company. After Wosheng Group is established, it will establish a series of subsidiaries.The first subsidiary is Wosheng Electric, under which Wosheng Electric will establish two brands.

A Wosheng brand, focusing on high-end products.Another brand, Xu Huasheng, suggested calling it directly Robertson, focusing on low-end products.

For these two brands, Robertson likes them very much.Especially the Robertson brand named after himself, Robertson likes it even more.Xu Huasheng directly suggested using Robertson's cartoon head as a trademark. Robertson nodded and agreed. It was a good idea.

Everyone has vanity, and Robertson is the same. He also hopes that one day in the future, his name will be like his father, like Ferrari and Lamborghini, and become a permanent glory.

"Xu, how about we play a big one this time?"

Robertson said with a smile, which made Xu Huasheng look at Robertson curiously.

"Our Walmart is planning to build exclusive areas for these two brands in all stores, renovate them, and open them at the same time. By then, with the advantages of our products, we can quickly seize the market. I believe that we will definitely attract a large number of customers to buy, so we will Stock up, prepare enough stock, I plan to use all the 20 billion US dollars we have invested to stock up..."

Robertson's words made Xu Huasheng's eyes widen.All stores opened at the same time. Damn, you have to know that Wal-Mart now has more than 1500 stores, which is a huge volume.It is indeed a big move to open so many stores at the same time.This is a sales channel that many brands dream of, but now Wal-Mart can easily do it.

"Mr. Robertson, aren't you afraid that this thing will fall into your hands?"

Xu Huasheng couldn't help but ask.

"What are you afraid of? It's just 20 billion U.S. dollars of goods. Besides, the damage is in the hands of Wal-Mart Group, not Wo Sheng Group. This batch of goods was ordered by Wal-Mart, not Wo Sheng Group. Wal-Mart needs to pay in advance If Wo Sheng pays a deposit, the balance will be paid directly after delivery..."

Robertson said with a smile. After hearing this, Xu Huasheng was stunned.

Looking at Robertson, Xu Huasheng couldn't help but sigh, Damn, okay, you capitalists still know how to play, and you can't suffer any loss no matter what.As long as Wo Sheng Group doesn't lose money, that's fine. Besides, 20 billion worth of goods is really nothing to Wal-Mart.

Naturally, Xu Huasheng wouldn't mind such a large order. For Huasheng Group, the more orders, the better. Thinking of this large order, Xu Huasheng laughed happily.

"Mr. Robertson, there is no problem with the order. We will do our best to produce here. At present, our Huasheng Group's industrial park has been built and a lot of equipment is in place. As long as the order is placed, the product will start to be produced. Now, I want to We can talk about the price..."

Xu Huasheng said with a smile, which made Robertson also laugh.

Price, this is the most important thing.

Although Huasheng Group occupies a lot of shares in Wosheng Group, Huasheng is Huasheng, Wosheng is Wosheng, and Wal-Mart is Wal-Mart.

Huasheng Group supplies products to Wosheng Group, and Wosheng Group supplies products to Wal-Mart Group, which then sells products. A product needs to go through two hands before it can reach consumers.

So price is very important, not only the price that Huasheng Group gives to Wosheng Group, but also the price that Wosheng Group gives to Wal-Mart, and the price that Wal-Mart gives to consumers are all very important.

Xu Huasheng and Robertson negotiated the price. After some negotiations, the price was basically determined.

The products of Huasheng brand are renamed as Wosheng brand, and the supply price of Huasheng brand to Wosheng brand is not too high.But even so, Huasheng Group still maintained a profit margin of 50.00%.

Wo Sheng Group will increase the price by 30.00% to supply products to Wal-Mart Group.Wal-Mart Group will increase the selling price to customers by about 30.00% to 40.00%.

Originally, the cost of Huasheng brand products was a bit high. After all, the technology was the most advanced and the materials used were good.When these products pass through two hands and reach the hands of customers, the price will be higher.However, Wo Sheng brand is a high-end brand, and it makes money from rich people.As long as the product is good enough, rich people will pay for it.

At that time, the price of the same product of Huasheng brand may be only half or even one-third of that of Wosheng brand.

This is high-end, Xu Huasheng suddenly remembered Huawei's words, wait until the company develops.When Chinese people go abroad, they can earn back their round-trip air tickets by taking two products and selling them abroad.

And Huasheng Group’s products hope to do the same.

The Wo Sheng brand is used to make big profits, while the Robertson brand is used to make small profits.

After the Huasheng Group's Xingyao brand changed its shell, it became the Robertson brand.Xingyao Brand maintains a profit of 20.00%, while Wo Sheng Group takes [-]% of the profit, and Wal-Mart also takes about [-]% of the profit.

In this way, after two hands, the price of the final product is more than one-third cheaper than similar Japanese products.

Moreover, the appearance of Xingyao brand is better, the product quality is not bad, the technology is slightly more advanced, and the warranty is relatively long.As long as consumers are not fools, they all know how to choose.To make small profits but quick turnover, first wipe out the competitors.

After finalizing the price, Robertson and Xu Huasheng both laughed.

With such products, such pricing, and channels like Walmart.Once these products are sold on a large scale, they will definitely dominate Japanese brands.As for domestic brands in the United States, haha, even Japanese brands can’t compete. If you still want to compete with Wo Sheng, just dream.

In the United States, there are many rich people, but there are even more poor people.Otherwise, why would cheap Japanese appliances and Japanese cars sell so well in the United States?

An order worth US$20 billion is a large order for Huasheng Group.

The billion-dollar Huasheng brand and the billion-dollar Xingyao brand.

After all, the Huasheng brand can earn US$[-] million for a billion-dollar product, while the Xingyao brand can only earn US$[-] million.Moreover, the volume of Xingyao brand products is larger than that of Huasheng brand products.

This is the difference between high-end and low-end.The low-end volume seems to be a lot, but the real money earned is very little, while the high-end volume is small but the profit is much.

This is under the premise that Huasheng Group has mastered the core technology. If it does not master the core technology, the core products will need to be outsourced, and the profits will be lower. If the comprehensive profit can maintain 5.00%, it will be considered very good.

Robertson left again, but Sam stayed.

At the airport, after Sam and Xu Huasheng sent Robertson away, the two looked at each other.

"My friend, thank you..."

Sam said with a smile, his eyes filled with gratitude.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like