The Amazon people just left, and the Walmart people came over. It seems they all want to put pressure on Longteng Electronics in their own way.
"Let's go out first," Chen Dong said to Wang An.
When the secretary brought the Walmart people in, Wang An met them briefly.
"Hello, Mr. Chen."
Opposite them were Walmart's Chief Operating Officer, Crozier, and a supplier representative, Ms. Emma.
Lin Zhiyuan shook hands with each of them and said very politely, "Please sit down."
"Mr. Chen, Longteng Electronics is now very well-known in Europe and America. I heard that it has always been the number one seller in the Amazon electronics category."
Kroz began with a few compliments, then said, "However, the traffic on the Amazon platform is not what it used to be. I wonder if Mr. Chen would be interested in learning about our Walmart retail platform?"
Chen Dong has met many Westerners in his business dealings, and what he likes most is their straightforward and direct way of speaking.
Walmart is a department store, and although it has its own factories, it mainly acts as a reseller for other brands.
They probably approached Longteng Electronics because they saw the potential of Longteng Electronics' products.
Most importantly, Walmart has now announced that it will ban its distributors from listing products on Amazon. However, while they can control distributors, they cannot control independent electronics companies and independent retailers like Longteng Electronics.
With these independent retailers, the Amazon platform can still survive.
"But Amazon gave the iPod a whole dedicated space for advertising and sales. If I want to expand my sales channels to Walmart, I wonder if your company can provide me with a few display cases?" Chen Dong asked.
He didn't mince words and directly offered his bargaining chip: "In just four months since Longteng Electronics went online, it has sold over 500,000 MP3 players on Amazon alone."
"If I entrust Walmart to distribute my company's products, can Walmart guarantee sales volume?"
After thinking for a moment, Kroz proposed a condition: "As long as Longteng Electronics can sign a contract with Walmart and make Walmart the sole legal distributor of Longteng Electronics, we are willing to give Longteng Electronics products independent display cases in all stores."
"If Longteng Electronics can top the online sales charts, its offline sales will only be higher, not lower."
Walmart is a department store, and similar products are usually displayed in the same place in their stores. However, if a brand has a contract with Walmart, then Walmart stores will display that brand's products in the most prominent position.
Of course, not all brands can enjoy this honor.
First, the brand must already have a strong voice in the market and a good reputation. Second, the brand must be popular among consumers.
The independent display case is Walmart's greatest show of sincerity.
“Mr. Croz, as you know, Longteng Electronics’ products are not cheap,” Chen Dong said earnestly, looking at him. “We use Amazon as our main sales channel in the hope of reducing transportation and warehousing costs.”
"But if we put the products in Walmart stores, wouldn't the costs of shipping, warehousing, and display all increase the overall cost?"
Just as Kroz was about to back down, a supplier representative next to him couldn't help but interject, "Mr. Chen, Amazon is still a young company, but Walmart is already the most trusted department store in Europe and North America."
"How much of Amazon's delivery network overlaps with Walmart's, and how many Walmart stores are there in areas where they don't overlap?"
"Then I believe you will make your own judgment."
Walmart has millions of physical stores, including its affiliated supermarkets, not even counting its outlets in Southeast Asia. This achievement certainly gives her the right to boast about Walmart.
However, one area Emma didn't mention is Amazon's advantage in delivery warehouses. While Amazon's logistics network does have a relatively small coverage area, its offline logistics can rely on supermarkets and stores to set up temporary outlets, offering a high degree of flexibility.
Chen Dong could also see that they had a lot of electronic products and many excellent brands. Their main reason for wanting to cooperate with Longteng was to cause trouble for Amazon.
“I am willing to cooperate, but I have one condition,” Chen Dong glanced at Lin Zhiyuan, a bad idea immediately popping into his head, “Longteng Electronics is a competitor of Sony, and I don’t want anyone pointing fingers at Longteng Electronics where Sony is present.”
Emma asked in surprise, "You want us to remove Sony products from the shelves?"
"If Walmart puts Sony and Longteng Electronics products on the same shelf, I don't need to say which one consumers will choose," Chen Dong replied confidently.
Kroos and Emma fell silent.
Lin Zhiyuan gave Chen Dong a look, signaling him to know when to stop.
Chen Dong, however, did not take it seriously and smiled as he poured tea for the two guests who had come from afar.
Removing Sony products from shelves is no small matter. Besides being a leading company in the MP3 digital music player field, Sony has virtually no rivals in the fields of cameras, video recorders, radios, and color TVs.
Sony has a very comprehensive product portfolio and high technological added value. Although its headquarters are in Japan, the development of its European and North American regions has taken a long time, and its market share is among the top in all electronics technology companies.
Compared to Sony, Longteng Electronics is only competitive in one aspect: the relatively new iPod.
Comparing Sony to Longteng Electronics is like comparing Walmart to a young Amazon.
“Mr. Chen Dong, Sony’s electronic products cover a very wide range, and Sony has already reached a cooperation agreement with Walmart. It is impossible for us to remove Sony products from the shelves.” Kroz refused directly.
The other party's attitude is so firm, it seems things won't be easy to negotiate.
Lin Zhiyuan coughed lightly, and Chen Dong continued, "Longteng Electronics is indeed very eager to open up the European and American markets, and Amazon is our first springboard."
"Mr. Croz just said that I should put the products in offline stores for sale, which puts a lot of restrictions on Longteng in terms of channels."
"Walmart is still willing to cooperate with Longteng Group and provide us with product display cabinets. But if Longteng Electronics encounters any unexpected events in the future, such as regulatory expulsion orders, wouldn't we be blocked from all avenues?"
Chen Dong's concerns were not unfounded. If Longteng's products could be removed from Amazon, they could also be removed from Walmart. After experiencing the regulatory ban incident, Chen Dong no longer believed in this Western system.
......
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