"Our prices are still very advantageous compared to RB's local suppliers." Lei Shengli said with a helpless smile: "Toyota is actually looking for other suppliers in South Korea, not in the radio industry. It seems that Toyota is not either We are ready to produce all parts locally.”
"Normally, when industry develops to a certain level, it will deindustrialize, especially the low-end market, which will inevitably be eliminated." Chen Zhiwen said.
When an industrial power develops to a later stage, the labor costs of the entire country will inevitably rise. This leads to the low-end manufacturing industry being oppressed by labor costs and making it unprofitable or even losing money. And because it is a low-end manufacturing industry, other developing countries can also produce it, and they have With low labor costs, the manufactured products are cheaper and may have certain quality problems, but in the end they still have a strong price advantage.
On the other hand, customers will naturally choose suppliers with lower costs. As long as the price is cheap enough, some quality problems are acceptable. Especially after the popularity of containers, shipping costs have dropped significantly and globalization has begun. This will further shift the manufacturing industry.
This is also the reason why Hong Kong’s manufacturing industry developed rapidly in the next ten years. Unfortunately, Hong Kong failed to seize the opportunity of technological upgrading, which ultimately led to the complete decline of the manufacturing industry.
Lei Shengli said with some joy: "Although our prices are much lower than those of RB manufacturers, the profit of car radios is still far higher than that of civilians, and there are so many car brands. As long as we enter the market, there will be too many opportunities in the future. .”
"This is indeed an opportunity. After this is determined, we must take the initiative to attack other car brands." Chen Zhiwen nodded and said, globalization has just begun, and it is a big change for the entire global manufacturing division, including many large companies. Their actions are very slow. As long as our side takes the initiative to attack, the potential is still relatively high.
"I think so too, but it will cost more?" Lei Shengli asked.
"Cost is not a problem, as long as I see the results." Chen Zhiwen nodded and said, the automobile industry is the crystallization of industry. Even if he can't make cars for the time being, he still has to make a few parts first.
"Okay, then I'm relieved." Lei Shengli said happily. When he was at Universal, although his boss was very nice, he was very strict about spending money. Compared to his current boss, he was far behind. But I can’t blame the former boss because he really had no money. I didn’t want the person in front of me to rent an office building in Central. He also owns the factory buildings in Kowloon. There is also an injection molding factory not far away. The old equipment is thrown away directly. Now, all have been replaced with new ones, and we are working hard to produce plastic parts for our own electrical products.
It’s good to have money!
Chen Zhiwen glanced at the fan not far away and asked, "How is Midea's fan business going?"
"It's also very good. Customers in Hong Kong and Southeast Asia have placed a lot of orders. We have almost 200,000 units in hand. However, RB is our biggest market, but it hasn't started to get popular there yet. It will probably have to wait until next month. Only then can we get more orders." Lei Shengli replied.
"Have you lowered the price to break even?" Chen Zhiwen asked.
"It has dropped, but the price of plastics has risen too much. The price is similar to last year. However, we did not rise when others increased. Southeast Asia has placed more orders. In addition, old customers from RB are also very interested." Lei Shengli said.
"What about the United States? Do you have any plans to expand the market?" Chen Zhiwen asked. The reason why he did not mention Europe is because it is basically not hot in summer there, and the fan and air-conditioning markets are very small.
Lei Shengli replied: "We contacted some supermarket chains in the United States through Red Bull channels, and they also said they were somewhat interested. We also sent samples by air and sent people to the United States for activities. Under normal circumstances, we would like to enter Supermarkets of a certain size in the United States have certain processes that take time, and fans are only used in the summer, so I guess we may not be able to catch up this year."
"Forget it, let Anxin be mainly responsible for these air conditioners and refrigerators." Chen Zhiwen nodded and said, "Have you also changed the model of the fan? Let the Asian market test the waters first?"
After-sales costs for overseas customers are also graded. The costs in Southeast Asia are obviously much lower, and may even be similar to those in Hong Kong. Non-Asian developing countries are a little higher. The highest ones are naturally in Europe and the United States. If the refrigerator and air conditioner in Europe and the United States is broken, , many people just throw it away. If it is within the warranty period, it will naturally have to be replaced with a new one, and the manufacturer will naturally be responsible for all costs.
If you don’t have full confidence in your product with this kind of after-sales method, you must not enter the market. Otherwise, a small number of after-sales problems will bankrupt you.
Therefore, another advantage of Chen Zhiwen letting air-conditioning refrigerators enter the Middle East market first is to understand the quality of his own products. If there are problems, he can study and solve them to avoid recurrence in the future, improve product quality, and form a virtuous circle.
Coupled with the harsh summer temperatures in the Middle East, if it can be stabilized in the Middle East and the after-sales service can be reduced to the extreme, Chen Zhiwen will be relieved to enter the European and American markets.
The same applies to the fans. They will test the waters in RB in Hong Kong and Southeast Asia. When winter comes in the northern hemisphere, they will then be sent to South America and Australia. As long as the price is cheap enough, there is no reason for dealers in these countries to disagree.
"Okay." Lei Shengli agreed, seemingly hesitant, and then said: "Sheng Chen, there is one thing related to the company's production capacity. Summer is coming soon. Under normal circumstances, the factory's production capacity will be reduced in summer. few."
"Do you want to install a large industrial air conditioner?" Chen Zhiwen understood the meaning.
The main manufacturing industries in Hong Kong are garments, textiles, and toys. Although the total output value is very high, most of them are small workshops. How can we install air conditioners for workers in rented one- or half-story industrial office buildings? A few are better for workers. will be installed.
But Midea owns all its factories, so the building naturally needs to be equipped with large industrial air conditioners.
"Yes, and hot weather also affects the quality. Although air conditioners and refrigerators are also assembled, the process is more complicated. In the future, car radios will be for cars and are of higher importance. If people are too hot, they may make mistakes. The fan does not matter. , you don’t have to pretend.” Lei Shengli said.
"If you want to install it, install it all. If you don't tell me, I will forget about it, and Qin Zhihao won't mention it either." Chen Zhiwen said: "Three industrial buildings will be installed together. You will be responsible for this matter."
Installing air conditioners is beneficial to production capacity and quality, and it will also be much better for your employees. This benefit should still be provided.
"Does the empty one also need to be installed?" Lei Shengli asked.
"Of course, do you think these three buildings will be enough next year?" Chen Zhiwen said with a smile.
