The analysis report on Jiafeng Electronics was less than a page long.
For the group as a whole, the Greater China market does not account for a large proportion. The largest share is still in places like Singapore, while the mainland China region is truly barren.
The key countries are economically developed regions such as Thailand and Singapore.
Watanabe Shi began typing on the keyboard. He hoped that the headquarters would increase its investment in the mainland region. The reason for this was that, according to his analysis, the mainland region's economy would experience explosive growth in the next ten years, with huge demand.
The rapid rise of mainland Chinese companies necessitates swift suppression, with particular attention being paid to Jiafeng Electronics. The aim is to increase marketing efforts, lower product prices in the end-market, and simultaneously request government funding and increased investment.
Watanabe Shi didn't actually see any potential in the mainland region. Rather, he fabricated a lot of data to get the group's top management to take it seriously and sign the application faster. He wrote down whatever data looked alarming.
Whether the mainland's economy is strong or weak is a business for him. When it's time to be weak, it's absolutely frail; when it's time to be strong, it's absolutely terrifyingly strong.
At the same time, he sent an email to Jiro Nakata, telling him that an unprecedented business war was about to begin, and that they would attack the entire mainland market with an unparalleled force, not only eliminating local companies, but also taking down companies like Panasonic and Ericsson.
.................
It was already 10 p.m., but the machines in the Bird factory were still running. This year's New Year was quite exciting for Xu Lihua and his three colleagues. The sales of Bird pagers continued to grow explosively. Even though it was the off-season after the New Year, people still came in droves to buy goods.
Inside the office, Sui Bo leaned against his desk, holding a financial ledger in his hand, a smile playing on his lips as he addressed the three men: “This month is no slow season. Sales have already exceeded 50 million, and in about ten days, 80 million in sales will be no problem at all. This is only due to insufficient production capacity.”
"Wow, this is incredible how fast they make money!"
"Didn't we sell for 90 million last month? How much of that will actually go to us?"
“We own 20% of the shares, which is 18 million. After deducting costs, we estimate that each of us will get 1.8 million or 1 million,” Xu Lihua said happily.
The four of them became millionaires in just two months. Not to mention now, even decades from now, that would be an exciting thing.
But they weren't very happy. Monthly sales reached 80 million, and the total investment was around 30 to 40 million. Even disregarding raw materials and labor costs, the monthly profit was 20 to 30 million, but they only received this much.
Keep in mind that this is the peak season. After the Lunar New Year, it will be the off-season. As market competition intensifies, profit margins will be squeezed, and it will be much harder to earn this much money again.
They saw a bigger world and longed for a wider horizon.
"At least we've gained a foothold. The most important thing is for the company to survive. Without the technical and financial support from Hong Kong, we wouldn't be where we are today. Now is not the time to divide the profits; we need to solve the biggest crisis right now. What will we do when Jiafeng Electronics comes in next month?" Xu Lihua was quite calm. He knew that the biggest challenge they faced right now was Jiafeng Electronics.
Hearing this, everyone felt a little down. Jiafeng Electronics now was like the cannery that had weighed on Lu Feng back then; it was so powerful that it inspired awe.
"What are your thoughts? Tell us!"
“Investing money and opening stores—I’ve always believed that this wholesale sales model is detrimental to brand growth. If a company wants to go further, its brand management must be excellent. This wholesale model leads to mixed opinions from end customers, and we become very passive in the market,” Pu Jie said solemnly.
“I agree with that. We feel pressured by Jiafeng Electronics because of its sales channels, especially in rural markets. Even Changhong has to give way to Jiafeng’s sales channels.” Xu Guangxi pondered for a moment and continued, “We should establish more sales channels, whether it’s the dealer model or direct stores, and expand into the market. At the same time, we should also build our brand, advertise on CCTV, and diversify our products.”
“Product diversification, isn’t that Jiafeng Electronics’ model? They produce everything now, refrigerators and washing machines, they’re just short of opening a garment factory,” Sui Bo exclaimed.
"The profit margin in garment factories is small. If the profit margin were any bigger, do you think he wouldn't do it?"
Everyone was talking at once, but they all had one thing in common: they wanted to follow the Jiafeng Electronics model!
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