Chen Xia heard Xu Rui's exclamation, shook his head and said:
“The current profit is sufficient, but such high profit is based on the premise that there are no competitors.
Once our country joins the WTO, more and more people will do business with Americans. With more competitors and a wider range of product choices, our profits won't be as high anymore."
The characteristics of the Chinese are that they either compete by improving quality and service, or they like to lower prices, especially for labor-intensive products like this.
For a down jacket, Four Seasons Company quotes $130, while a bunch of domestic companies will quote $120 or $110. They will do whatever it takes to get the order, even if it means cutting their own profits.
What to do when there is no profit? Then cut corners, which is why people later think that Chinese products are of poor quality.
Are the Chinese too stupid? Or is it that their technology is not good enough?
Don’t forget the electric fans, refrigerators and other household appliances produced in the 1980s. Many families have been using them for decades, and even bed sheets can last for 20 to 30 years without breaking.
Isn’t this quality awesome?
So why did it fail later? It was because of malicious competition from peers.
But all this will become inevitable as China joins the WTO and becomes the world's factory.
Chen Xia is not worried about the pharmaceutical factory. With the patent in hand, he is not afraid to travel around the world.
But Four Seasons Department Store and Four Seasons Textile Company are likely to be greatly impacted.
Favors will naturally fade over time. Chen Xia only has two things to do. One is to continue to expand production and establish his own raw material base to the greatest extent possible to reduce costs.
The second is to create your own brand.
The products of companies under the Four Seasons Group can occupy the American market, and in the future they can also occupy the European and Japanese markets.
Also, don’t forget that China’s domestic market is about to rise, so there is no reason not to occupy the domestic market.
Originally, Chen Xia established the textile company and small department store without intending to make money. However, once he entered this industry, he discovered that the profits were so huge.
Yes, the profit per piece is very small, but the quantity is large, so we can make small profits but quick turnover.
Take the famous Yiwu Small Commodities Market, for example, which has an annual market turnover exceeding 450 billion yuan. How much profit is generated here? How many wealthy people have been created?
Another example is the China Textile City in Yuezhou, a market specializing in textile trading, with an annual transaction volume of nearly 300 billion yuan.
Therefore, Four Seasons Department Store and Four Seasons Textile Company have great potential and a bright future.
But Chen Xia had always adopted a low-price strategy before. This method, which could be copied by others at will, was definitely not advisable. At a certain time, he had to create his own brand and slowly carve out his own niche.
When one day consumers only look at the brand when buying things instead of the price first, we will be successful.
This idea is the same as the medicines produced by Pumpkin Vine Pharmaceutical Factory, giving people the impression that "Pumpkin Vine products must be high-quality."
Advertising is an important part of all of this. Just like those health supplements, they brainwash consumers every day, and the effects will naturally appear over time.
It is only 1987 now, and there is still time left for Chen Xia. It is not urgent. If he makes arrangements in advance, he can be one step ahead and have an advantage at every step.
Chen Xia asked Xu Rui to visit the supermarket today, actually he also wanted to discuss advertising planning with him.
Chen Xia now has a production base and trading company, overseas partners, and sales channels. If he can fill in the gaps in advertising and marketing, then these will be enough for now, and the shortcomings can be addressed over time.
Xu Rui and Chen Xia were sitting in a roadside cafe.
"What? You said you want to invest in my advertising company?"
Chen Xia nodded. "Yes, you can only buy shares. Are you willing to join our Four Seasons Group and become my department manager?"
Xu Rui was willing to agree, but the capital behind him and his wife might not agree. Working on your own and working for others are two completely different concepts.
"Why do you want to invest in our advertising company? It's just a small company, it's boring. You must be a big boss who can take out 5 tons of gold in one breath."
Xu Rui couldn't get over the gold issue, as it was too much of a shock for him.
"Silly, my investment in your company will only benefit you. I hope your company can provide comprehensive packaging, advertising, and promotion for our Four Seasons Group's products. You shouldn't limit yourself to advertising, as marketing has a bright future.
At that time, I, as a shareholder, will provide the funds. No matter what kind of awesome employees you find, what kind of awesome directors and actors you hire, what kind of commercials you shoot, or what kind of marketing you do, I will fully support you and give you whatever amount of money you want.
You can leverage your domestic network to fully expand advertising. As for overseas expansion, you can find a few internationally renowned advertising and marketing professionals to join the company. I also have some good connections with investors overseas who can provide assistance as well."
Xu Rui was paralyzed when he heard this. "Chen Xia, this, this, this, this is such a big plan, can I do it?"
Chen Xia continued to persuade him, "You graduated from an art academy, so your aesthetic taste is fine, right?"
When Xu Rui heard this, he questioned his professional ability. How could this be tolerated?
"Of course it's no problem. I'm the most talented student in our academy."
Chen Xia thought, isn’t the praise you heard because you have a “powerful father”?
"That's it, then. You should be able to tell whether an advertisement is good or bad, right? You should also be able to tell whether a marketing plan is reasonable or not, right?
I'm letting you be the boss. What does a boss do? Of course, he assigns tasks and lets his employees complete them. You'll just be responsible for the final review. If you say it's good, it's approved. If you say it's not good, we'll reshoot it. How simple is that?
Xu Rui was also amused when he heard it: "Is it that simple?"
"It's that simple. All I want is your aesthetic sense and your professional vision."
There was one thing Chen Xia didn't mention. He was a reincarnated being after all. How many advertisements had he seen in his previous life? How many famous and successful marketing stories had he heard of?
By simply drawing on some successful cases from his previous life, it would not be possible for Xu Rui's advertising company to fail.
Just like the two advertising slogans he copied for the "Caiyunzhinan Jewelry Store": "Emerald jade is eternal, and one jade will be passed down forever."
Another line: "Love can conquer the city, jade is eternal, the south of the colorful clouds is the epitome of beauty."
These two advertising slogans are very popular now. After being promoted by female star Ms. Brigitte Lin, they have become popular across both sides of the Taiwan Strait and Hong Kong, and have spread throughout the entire Greater China cultural circle.
This also made Yunnan Province a symbol of "high-end" jewelry brands. Now it has branches not only in Hong Kong, but also in Southeast Asia, South Korea and Japan.
You should know that the jadeite, mutton-fat jade and chicken-blood stone traded in the south of Yunnan have almost no cost, and the profits are so high that they are beyond the imagination of most people.
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