Lu Feng was surprised by the city government's swift action. He had expected them to get involved, but not in this way, which felt like a publicity stunt.
Liu Cheng took out a contract and handed it to Lu Feng, saying, "Mr. Lu, this is the office building rental contract. You need to sign it."
Lu Feng picked up a pen and signed the document. Then he called Zhu Lidong to inquire about the arrival of senior executives from the integrated marketing department in Shenzhen.
At 3 p.m., Huang Hongsheng's drinking party finally ended. Everyone chatted happily and casually talked about next year's plans. Everyone understood each other implicitly, and several companies hinted at a desire to join hands.
Next year, we'll first take down Jiafeng Electronics, that troublemaker, and then spend a few years grinding Changhong down from its number one position. These people are bold, and very bold at that.
Huang Hongsheng left the hotel in a car, slightly tipsy. The first thing he did upon returning to the hotel was to call Guangfa Trading Agency.
"This is Huang Hongsheng. Connect me to your CEO, Mr. Li," Huang Hongsheng said into the phone.
The operator transferred the call to Li Guangfa's office. Li Guangfa answered the phone and asked, "Who is it?"
“It’s me, Alien Huang. You must be Li Guangfa?” Alien Huang asked.
"General Manager Huang?" Li Guangfa was somewhat surprised. He knew that some companies in the electronics industry had gathered together today, and someone had already called him, saying that these people should unite as one and fight them to the death. Why was he calling now?
"I'm Li Guangfa, what can I do for you?"
"Let me tell you, I hosted a luncheon today. All the big names in the industry came. Those who couldn't make it were too far away. We signed a joint agreement, involving 47 companies, representing 90% of the mainstream market share," Huang Hongsheng said into the phone.
Li Guangfa raised an eyebrow, thinking that the other party was calling to put pressure on him with this. He snorted and said, "The sales channels are in my hands. Even if all the manufacturers unite, what can they do? Unite and refuse to cooperate with me? Then I'll see who can outlast whom."
“Mr. Li, that’s not what I meant. Don’t misunderstand. We’re all here to make money, not to get angry, right? We have no grudges against each other. Doing business is all about negotiation. There’s nothing we can’t talk about.” Huang Hongsheng quickly changed the subject and said in a relaxed tone, “I have an idea. Listen to it.”
Li Guangfa was taken aback, then a smile appeared on his face. He had been obsessed with talking to Lu Feng these past few days, as if the world was black and white. He asked with great interest, "President Huang, what do you think?"
"I just want to ask you one thing: is there a lot of demand in the international market?" Huang Hongsheng asked.
"We're still in talks, but I feel the market potential is huge. Jiafeng Electronics' batch of goods was low-end. Once the new products come out next year, they will be welcomed by more international markets," Li Guangfa told the truth.
"In other words, within a year or two, so many domestic manufacturers can't all rely on export trade, right? So, can all the trading agencies, like Mr. Li, open up the international market? Right now, you control all the channels, but what about the future?" Although Huang Hongsheng had been drinking, his thinking was very clear. He said, "Other trading agencies will figure it out sooner or later. As long as the profits gradually increase, international manufacturers will go against the grain and actively contact other trading agencies to increase their own profits. Am I right?"
Li Guangfa nodded, agreeing that this was an inevitable trend in the development of the industry, and said, "That's right!"
"So your current advantage is a monopoly, but this kind of channel monopoly is time-limited. If you can't maximize your profits in the early stages, they will be taken over by other competitors later. Competition within the same industry is the most important competitive relationship. You need to think clearly about who your enemies are and who your partners are."
As Mr. Huang spoke, his thoughts became clearer and clearer. He said firmly on the phone, "What I'm thinking is that you can choose some partners in the manufacturing industry. I'm having very good talks with other manufacturers right now. A 91% split is indeed a bit harsh, but you can cooperate with a group of companies and sign a bundled agreement. I can help you talk to companies like Changhong and Konka. High-quality products can help you gain a foothold in the international market."
Li Guangfa thought this was a good idea: by partnering with leading companies in the industry, squeezing out competitors, and making his position in international trade more stable.
“If Mr. Huang can help me negotiate with companies like Changhong and Konka, then cooperation is not out of the question. I would like to know what percentage you plan to share the profits with?” Li Guangfa asked.
"I'll help you negotiate a better deal. I can help you negotiate a 20/80 profit split with other companies, but we want a 50/50 split," General Manager Huang said, revealing his idea.
55?
Li Guangfa felt this was going too far. He coughed for a while before saying, "It's not that I can't agree to 55, but do you have any requirements regarding the quantity of goods you're shipping?"
"I want us to have priority, especially next year!"
“I can’t agree to a 50/50 split of profits. We can set a more reasonable ratio, like 40/60,” Li Guangfa asked tentatively.
Huang Hongsheng didn't agree on the phone, only saying he would think about it some more, regarding the specific share and profit-sharing ratio. However, the two hit it off immediately in terms of cooperation, and both sides were interested.
After hanging up the phone, Huang Hongsheng lay on the bed with a big smile on his face. This meal was so worthwhile; it might be the most worthwhile meal he had ever treated someone to in his life.
Inside the hotel, Su Yourong kept making phone calls, the calls never stopped all afternoon. The matter of drafting the preliminary contract of intent was finally settled, and at the same time, Chen's Capital held a board meeting in the afternoon.
Previously, Su Yourong proposed at the board meeting to rename Chen's Capital to United Capital, but some members of the board disagreed, so the proposal was shelved.
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