A 250 ml bottle of Red Bull costs about US$0.50 in American supermarkets. There is a certain discount when sold by the box. This price can be said to be very expensive. You must know that even in the United States in this era, many people do not have a monthly salary. to $1,000.
Of course, this is only the average low-income group. There are still many rich people. As long as the advertising is in place, some people will buy it.
The cost of Red Bull, including cans, is less than 0.5 Hong Kong dollars. This is really an unprecedented huge profit. Taking into account the intermediate transportation costs, the tariffs entering the US customs, the costs of several levels of dealers in the United States, etc., Red Bull makes a profit from a bottle of drink. The profit is as high as 1.3 Hong Kong dollars, and one million bottles can net a net profit of 1.3 million Hong Kong dollars. The money will be kept in overseas fund transfer companies, which can avoid high taxes in the United States. This is actually the routine of many large companies. Without In the era of Internet surveillance, even if the European and American governments knew about this loophole, there was nothing they could do about it. They had no way to investigate it and could only keep an eye on various taxes in the internal market.
The first wave of orders came from the United States for 3 million bottles. However, Chen Zhiwen was not prepared to transfer the profits from the United States back. Hong Kong is not short of money for the time being. After the money is settled from the terminal channel, it will be invested again. Go to the investment in American advertising.
The first principle is to introduce the brand into the U.S. market in the shortest possible time, so that when everyone in the U.S. thinks of energy drinks, they think of Red Bull, just like when they think of Coke, they think of Coca-Cola. The reason for this urgency is also because of the two beverages in the U.S. Giants, maybe they don’t care about Red Bull now, but as long as Red Bull expands the market, they will enter the market without hesitation to grab the cake.
This time will not be long. As long as the previous few years have been successful, the market will be stable. Without making big mistakes, it will be difficult for Liangle to catch up. Although they have money, Red Bull's high profits are not afraid of spending money on advertising. , in the history of later generations, Red Bull’s annual advertising investment in Europe and the United States has been one billion US dollars, becoming the largest financier in the sports industry and advertising industry. It can be said that more than half of the cost of a bottle of Red Bull drink is advertising.
Coca-Cola has a variety of beverages, and Pepsi also has other food businesses. It will soon become unbearable to burn money in the energy drink market, and their other internal businesses will not support it. As long as they wait until then, Red Bull can rest You get paid in bed, and another benefit of becoming a sponsor in the advertising industry is naturally the accompanying influence. After all, media giants also want to make money.
Here in Hong Kong, orders for millions of bottles have been placed, and the business has naturally skyrocketed. The current beverage filling machines are only semi-automated, and their production capacity is far inferior to the equipment of later generations that can produce tens of thousands of bottles an hour. Naturally, A large number of people are needed, and recruitment has not stopped during this period.
As for Midea, more than 20 salesmen were sent to the Middle East. They all went to several big cities in the Middle East and directly brought samples to local dealers. Although Midea is not famous, the Middle East is really too busy. Lack of air conditioning and refrigerator.
Electrical appliance brands in Europe, America and RB have experienced increased costs due to the oil crisis, and their domestic markets have shrunk due to the oil crisis. Now that they see new markets like the Middle East and this group of wealthy tycoons, they will naturally use the same tactics as later generations targeting the mainland. When jointly raising prices, each company is more ruthless than the other.
Although there is money in the Middle East, dealers are not fools. They have always wanted to find cheaper suppliers. However, in the era before the Internet, it was inconvenient to make phone calls. If you look for other trading companies, you will be ripped off until Midea sales take the initiative to come to your door. .
Midea's principle is not to increase prices significantly. After deducting everything from production costs and transportation costs, it is enough to maintain a gross profit margin of 30%. This price is much cheaper than the normal prices in Europe, the United States and Japan.
After several more performance tests, although I had some doubts about the quality, considering that even if it was repaired again, it would still be a huge profit for dealers like them, they placed a batch of orders.
The demand in the Middle East is huge. Even if most of it is eaten up by European, American and Japanese brands, the remaining small part will be enough to support Midea. As a result, Midea's factories have begun to recruit people on a large scale.
"8,000 refrigerators and 3,000 window air conditioners will be shipped within a month. Is it too late?" Chen Zhiwen asked after arriving at the factory in Yuen Long and looking at the order in his hand.
"Don't worry, Mr. Chen, it's no problem. I have already prepared enough compressors and some electronic components. All other materials are purchased in Hong Kong. Many factories in Hong Kong are relatively idle now and are basically trying their best to catch up on our orders." Lei Shengli said confidently.
"Okay, then we will go all out to produce and pay attention to quality. We will hire a few more people to check the quality. Unless there is a problem with one product, our losses will be enough to take a worker's labor for several months." Chen Zhiwen nodded and said.
When doing business in overseas markets, the most troublesome thing is after-sales. An after-sales problem is several times or even ten times more than the same type of local after-sales problem. Therefore, in a small place like Hong Kong, without a local market, it is difficult to generate big sales. Manufacturing brands, because big manufacturing brands also come from small companies. Without enough local markets, such enterprises cannot be cultivated. Relying on overseas markets, if no one knows the truth, a batch of quality problems may cause a good company to fail. Business bankruptcy.
Lei Shengli said: "Chen Sheng, don't worry. I referred to Toyota's quality requirements for our car radio project, and also started benchmarking other electrical products. In addition, I also invited two retired RB quality engineers from Toyota for consultation. One of them is now in charge of electrical projects.”
"Okay, in the manufacturing industry, it is a good idea to learn from Toyota." Chen Zhiwen nodded and said. As the most successful manufacturing giant in the 20th century, Toyota's management style is the subject of research in all factories around the world, even if it is not in the automotive industry. learn a lot. Of course, you don’t have to learn everything, you also have to optimize it appropriately according to your actual situation.
Chen Zhiwen then asked: "How is the car radio project going? Has Toyota agreed?"
"Not yet, but the procurement over there said there won't be any major problems, and we're pretty close." Lei Shengli said.
"We can't tell until the end. Toyota chose our company just because they wanted to use us to lower prices for other suppliers." Chen Zhiwen shook his head and said. He knew this kind of routine from the acquisition of Global Electronics and that larger companies would do it. Playing, the difference is that the better ones will eventually pull you into his supplier, and then give you some soup to drink, while the worse ones will just kick you away.
But even knowing this, Chen Zhiwen still agreed with Midea to take this step. Anyway, the investment is not much, and it will only cost 3.5 million Hong Kong dollars. But if it succeeds, it will open a new door for the development of Midea's radio industry. Car radios The market is still very promising for at least the next 20 years. Even after 20 years, it will not be difficult to upgrade the central control system.
In many industries, getting started is the most important.
