The whole day was chaotic. Gao Zhiwei paid for the plane tickets to take these reporters to the Shenzhen laboratory, and at the same time arranged for the local TV station to interview and film them. This was naturally a desperate publicity stunt.
Meanwhile, a group of reporters who missed the free plane tickets to Shenzhen surrounded Wahaha again, pressing them about the nutritional supplement. The safety of children's food once again became the focus of everyone's attention, and they even interviewed regulators from different regions.
Wahaha held several internal meetings that day and concluded that if the nutritional liquid were classified as medicine, sales would definitely plummet. It was necessary to launch a new product within the next week and to directly compete with Jiaming Foods in the market.
Furthermore, we need to launch products similar to small canned goods. Most importantly, we need to wage a price war, lower prices in the terminal market, and give back profits to distributors. At the same time, we need to postpone the advertising expenses that were planned to be invested in CCTV, and break down this money, using part of it for market advertising and marketing, and part of it to promote the price war.
They deduced that Jiaming Foods' cash flow was extremely fragile, which caused its cash flow to collapse.
The name "Jiaming Foods" has become a buzzword in Shenzhen. Many people want to buy small canned goods, but unfortunately, they can't find them at all. This is the Pearl River Delta, where there is no Lu Feng factory, and no place for small canned goods to survive.
It's been almost a month now. Jiaming Foods and Wahaha may not be household names in China, but everyone knows them. They're fighting tooth and nail; even a blind person could see it.
Some major media outlets began publishing articles with intriguing headlines such as: "Cooperation Leads to Win-Win."
Today is March 29th. The spring breeze has swept across the land, and overnight, thousands of pear trees have blossomed. Gao Zhiwei is on his way back. The earth has shed its chill, and people have changed out of their cotton-padded clothes.
Lu Feng had a large pile of documents on his desk. He made himself a cup of tea as soon as he entered. Zhang Fengxia walked in and said, "There's a lot going on. Wahaha is launching a new product tomorrow, and we've already stocked up on goods these past few days. I have inside information that they've prepared 70 million to wage a price war against us. Also, our reputation has become too big lately, making it difficult to negotiate with several factories. Those negotiation teams called yesterday saying they want more money, and some even want a cut. And..."
"Stop!" Lu Feng raised his hand to stop her from speaking; even the smallest thing made him feel troubled.
Lu Feng picked up the newspaper on the table, glanced at it, and casually tossed it aside. He opened the folder and asked, "Where did we get to?"
"Taiyuan, the application was rejected because of high risk." Zhang Fengxia picked up a folder next to her and placed it in front of Lu Feng, saying, "Before, due to a lack of communication, we pledged this factory to various local governments to obtain resources. Now that things have blown up so much, some newspapers have reported on our situation, and many people have called to inquire."
“The die is cast. Tell them that if they want local jobs and tax revenue, let me work here; otherwise, arrest me.” Lu Feng looked at the last few factories and thought for a moment before saying, “If all else fails, we can use the factories in Zhengzhou as collateral. If one factory isn’t enough, we can give them two. Anyway, we don’t lack factories right now.”
Zhang Fengxia looked at him, feeling that Lu Feng was dancing on the edge of a knife, and said, "You're treating local governments like monkeys. All those factories are collateral, already given to the banks."
“I’m not mortgaging the land, I’m mortgaging the market. All my factories are running smoothly, and they’re making money every month. As for those teams that want to talk about money, tell them to get lost.” Lu Feng looked at the contents of the document and pondered for a while before saying, “Send a different group of people. We must convince them to believe in us.”
"This is tough. The finance department calculated it yesterday, and our shortfall should be 20 million. It's about 20 million spent on the production line, office furniture, and other miscellaneous things. The six factories in the early stage and the first phase of the factory can't be postponed. Yesterday, several factory managers said that they had already drunk the wine they were supposed to drink. Now they're just afraid that you'll run away."
Looking at the contents of the document, Zhang Fengxia thought that if she were a local leader, she would want to have Lu Feng shot right now.
"Twenty million!" Lu Feng took a deep breath. The price war was about to begin. Things had gotten to this point, and any subsequent local policies, even if they provided funds, would definitely be special funds. Lu Feng wouldn't be allowed to use the money for other purposes.
Zhang Fengxia was very familiar with the whole situation. Based on her judgment of business operations, she knew it was a dead end. Lu Feng's biggest advantage was that he could use investment promotion to leverage this factory as a base for a "Snake Game" (a gambling game), thus acquiring another factory through this one.
Then he went out and said that he had two factories, which were like a snake that kept growing longer as it ate.
In the past, he could have delayed funding for the remaining ten factories and diverted the funds to these six factories. That much money would have been enough for him to launch a full-scale attack on Wahaha, or even defeat Wahaha.
Once the only competitor in the market is defeated, the market dividends follow, just like when Lu Feng defeated Ren Qianbo and profits skyrocketed.
However, Wahaha is not like Ren Qianbo. It cannot be defeated in a short time. In fact, it became known throughout the country right from the start, which naturally alarmed the other ten factories. What he took advantage of was simply information asymmetry.
A funding gap of 20 million might cripple his Snake game.
Zhang Fengxia gained a lot during this period, even more than she had in her four years of business school, and it was more practical. In particular, she learned about Lu Feng, a typical pragmatist who would use anything as long as it worked, no matter how low-down the method.
He has a very thorough understanding of business models. He plays the leverage game, living beyond his means and constantly trying to make money. If this incident hadn't blown up so much, he could have continued to do so indefinitely.
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