Chapter 260: Dog Tycoon
In just ten days, the 30,000 televisions that Sur Electric had stocked up in advance were sold out.
The hot sales not only attracted news media to report on it, but even Sur Electric itself was shocked.
Many managers at the company thought the product would be popular, but they didn't expect it to sell out so quickly.
A home appliance costing four thousand rupees is definitely a big item, but it was sold like sugar water, and customers didn't even blink an eye.
Half of the sales are contributed by Mumbai.
As India's most developed city and consumer capital, many shopping malls in Mumbai offer direct pick-up of goods at the door of Sur Electric.
The televisions that came off the production line were taken away as soon as they were packaged, before they even entered the warehouse. There was a complete shortage of supply.
Many anxious consumers even went to the black market to buy at a higher price because they couldn't get the goods.
Everything is sold on the black market in India. The more popular something is, the more people will buy it.
Those vendors lined up at the entrance of the shopping mall overnight, or used threats and bribes to some small wholesalers in order to get more goods.
The Sur TV, originally priced at 3,999 rupees in the mall, was raised to 6,000 rupees by them.
Anyone buying it? Of course!
Six thousand rupees is much cheaper than the other two local brands.
Seeing that the goods in the mall are impossible to get, some impatient people will go to the black market to buy them.
It’s a little expensive, but after all, Sur TVs look high-end and beautiful.
In order to create a greater panic buying, those black market traders also sent people to spread rumors, saying that Suer TV sets would be out of stock soon, that the factory had problems and would temporarily stop production, and that Suer had been arrested.
In short, there are all kinds of gossip, not to mention that these rumors are very effective. Some big dealers can't help but call to inquire about the news.
In the end, Ron had to come out in person to clarify to the media reporters that Sur Electric's production capacity would soon achieve a leap-forward increase, and there was no need to panic.
After the news was reported, the storm finally subsided.
Not only the management of Sur Electric, but even Ron himself underestimated the sensational effect caused by this most unprecedented marketing advertisement in history.
It first used suspense to guide public opinion, and then slowly fermented into a social hot spot, sparking discussions across the entire Indian subcontinent.
At the climax, it revealed the answer in the most gorgeous way: poster, hot air balloon, and television.
This kind of marketing method has never been used in India's history. It makes everyone involved in the discussion become an advertising promoter, penetrating the entire society without any blind spots.
But the most important thing is that the price of Sur TV is worthy of the advertising slogan.
Everyone can afford it, what a wonderful vision.
Ron did it, he brought the price of televisions in India to an all-time low.
The media sang his praises, the public praised him, and even the minister of Maharashtra said, "Mr. Sur has made outstanding contributions to the development of India's electronics industry."
This wave, this wave really brings both fame and fortune.
30,000 televisions. Ron was busy counting money in the office.
"Have all the payments from Mumbai arrived?"
"Yes, in order to get the goods, they paid all in cash, all at once." The financial officer Harus replied.
"Yes, how much is the profit?"
"The total is Rs 54 million. Rs 30 million has been received for Mumbai and the rest will be settled within the next month."
In ten days, the net profit was 54 million rupees, which is pretty good.
Sure enough, it is these high-end home appliances that make money.
How many water conditioners and electric fans would you have to sell to make that much profit? There's no comparison.
"What did the workshop say?" Ron asked the production supervisor again.
"Half of the newly ordered 70,000 sets of picture tubes have arrived, and the remaining ones will arrive within this month."
"Also keep an eye on the progress of the new workshop. We need to press on while we win."
"Yes." Production supervisor Anis agreed respectfully.
That’s right, new factories are rising from the ground in the Sur Park.
They were right next to the black-and-white TV production line, and Ron was planning to build an industrial cluster.
Well, Ashish is in charge of this matter.
"What about Dongda? When will the eight production lines we ordered arrive?"
"Boss, we bought too much this time, so it might take some time. But two have already been shipped and will start installation this month. The rest will be delivered gradually within six months."
Ashish has been very busy recently. His new house has been renovated, but he has no time to move in.
Ron had a big appetite and wanted to buy eight production lines at once. Including the two existing ones, that would be ten black-and-white TV production lines.
When Dongda received the order from India, he almost smiled from ear to ear.
They are seeking industrial upgrading and preparing to eliminate the outdated black and white TV production line.
These junk goods are difficult to deal with, and the rural market can also become saturated.
Before they could get worried, a wealthy Indian dog dealer suddenly appeared. What a great thing.
There are eight production lines in total, and several TV manufacturers have set their eyes on this piece of fat meat.
Those who want to give gifts give gifts, and those who want to use connections use connections, all want to get rid of the junk in their hands as soon as possible.
Finally, after coordination with the relevant departments, Sur Electric bought six 14-inch lines at a unit price of US$250,000 and another two 18-inch lines at a unit price of US$500,000.
Yes, Soul Electric is ready to launch 18-inch TVs.
It would be wise to take over more of the market as soon as possible while the Indian domestic market is booming.
This large purchase cost a total of US$2.5 million, which was definitely a big order.
After taking Rajan, the president of Industrial Bank, to Sapphire, Ron's 300 million rupees were successfully transferred out of the country.
It took the Swiss bank only three days to convert the money into US dollars, which was surprisingly efficient.
I have to say that using an offshore account to conduct overseas trade is really convenient. Ron can spend money however he wants.
There was no review during the entire transaction process. As long as the deal was reached with Dongda, he could pay the money and the goods would be shipped.
This mechanism is equivalent to bypassing the Indian government and evading all supervision.
It is precisely because of this that Sur Electric was able to complete eight more production lines in such a short period of time.
Otherwise, given the efficiency of the Indian government, you'll have to wait and see. It's still unclear whether you can get the procedures after half a year.
"Find out if they are willing to give us the display tube production line in advance." Ron was already thinking about the complete localization of televisions.
"Boss, according to the original agreement, we have to purchase their display tubes for two years before we can discuss the technology transfer of the production line."
"According to the contract, how many sets of display tubes do we have to import in two years?" Ron tapped the table with his fingers.
"200,000 sets, this is the minimum requirement."
"We've already bought 100,000 sets. We'll fax the remaining half to them now and get them all."
"Huh?" Ashish was stunned.
"Aren't all 200,000 sets ready?" Ron spread his hands.
“Here, here.”
"We talked to them and we hope to put the cathode ray tube production line into operation this year."
Of course, the supply of core components is only reliable if it is in our own hands.
Now Ron can rely on his relationship with the customs to turn a blind eye to the ships from Dongda.
No one can say for sure what will happen in the future.
The political environment is unpredictable, especially between two neighbors.
If there is an unexpected problem one day, won’t his TV factory have to stop production?
How can this be possible? The banknote printing machine production line must not stop!
Based on the current market performance, a business that can earn 100 million rupees a month is enough for Ron to spend a lot of money to maintain.
Another benefit of placing the display tube production line in the Sur Park is that it can effectively reduce costs.
Purchasing from Dongda for $20 each is indeed cheap.
But if it is put into India, it can be done with just US$12 after scale-up, which is about 400 rupees in total.
This can bring the profit on a 14-inch TV to Rs 2,000, which is a lot!
There is no reason for Ron to let it go, not to mention that localization can also save US dollars used for trade.
"Boss, there is also pressure on supply from other states. I suggest building a few more factories in India," said sales manager Dharmendra.
"Where's the need greatest?" Ron asked.
"Punjab, Gujarat, West Bengal and Tamil Nadu are the most urgent."
These are some of the famous wealthy states in India. They have relatively complete infrastructure and the literacy rate of the people is higher than the average.
Such places can indeed consider building branch factories. Taking advantage of the boom in televisions, Sur Electric should also expand nationwide.
"We'll make an internal plan for this matter and try to open branch factories in several wealthy states next year."
"Our park is still under construction. Will the pressure of expansion be too great?" someone expressed concern.
"Don't worry, with the reputation of Soul Electric, those state governments will welcome us." Ron smiled and didn't care.
This is not self-boasting, because through this unprecedented marketing, Sur Electric Appliances has really made its presence known to all Indians.
After producing televisions, his brand became much more well-known than when he only sold water conditioners and electric fans.
In an era when entertainment was relatively scarce, everyone loved television.
The meeting in the office was still going on, and they were mainly discussing the future layout of the workshops in the park.
According to the original plan, excluding office buildings, employee communities and other places, the entire Sur Park is expected to build 150 production lines.
Black and white televisions occupy ten lines, and color televisions are just beginning to be built, and both will inevitably be added in the future.
If the localization of core components such as cathode ray tubes is achieved, it is estimated that there will be about 50 production lines dedicated to serving the television industry.
Water air conditioners and electric fans will also continue to expand. Although these appliances are obviously affected by the seasons, they are also considered to be some kind of essential products.
Taking all these into account, almost half of the industrial area reserved for the Sur Industrial Park has been used.
What should we do in the remaining areas? Of course, we should continue to enrich our product range.
Ron's goal is still to focus on the small home appliance market, preferably at a cheaper price so that most people can afford it.
Until there is a significant increase in India's middle class, low-cost small appliances will sell better.
The products discussed varied widely, ranging from blenders and grinders, coffee makers, microwave ovens, ovens to rice cookers.
Before everyone could figure out what was going on, an assistant whispered in Ron's ear that Oda from NEC had come again.
Xiaotian is now furious. He thinks Ron is playing tricks on him.
(End of this chapter)
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