Lei Shengli paused and said: "Chen Sheng, according to our estimates, the factory cost of this air conditioner is as high as 350 US dollars, which has reached the terminal selling price level of well-known European and American brands. In terms of cost, it mainly includes various Procurement of core components.”
"It doesn't matter. We are taking the frequency conversion control route, which is different from them. Under misaligned competition, there is still a market." Chen Zhiwen said: "But it won't take long, and we can't do it in the field of frequency conversion." With a patent monopoly, other companies will definitely follow suit in research and development, so what we need to do is to produce the core components of air conditioners one by one ourselves. Only in this way can we control costs."
In the case where the core components are completely outsourced, Midea's technical mastery of inverter technology is only software control and some structural patents. Others can easily bypass this kind of thing. Even Toshiba, which invented inverter air conditioners in the 1980s, also There is no technological monopoly.
However, when it has the market advantage of terminal channels, coupled with strong after-sales service, at least the first step of product retail is easy to get out. Even if this step achieves a small success, it will allow Midea to stabilize in the high-end home appliance industry. The first step.
On this basis, we will slowly expand the market, but if we want long-term development, self-production of parts and components is a must. First, the cost can be reduced to a minimum, and second, only with technical reserves can further research and development be possible.
After all, the air conditioner itself actually has no technical content. It is just a set of components, including a compressor, condenser, and evaporator.
"What Chen Sheng means is that we acquire such overseas companies?" Lei Shengli is also a smart person. He naturally knows that there is no possibility of research and development of these core components of air conditioners in Hong Kong, and there is no foundation at all.
"Yes, just look for mid-level companies. We can't afford to acquire companies that are too cutting-edge, and they might be blocked by the government. Small ones don't make much sense, so just pick mid-level ones. We can afford the acquisition price, and they're also right. We have some help, but if Hong Kong doesn’t have a suitable target, we can only choose overseas." Chen Zhiwen nodded and said.
Previously, we only acquired assembly plants, so there are many options in Hong Kong. If it were not to save time, it would be no problem to build one ourselves. However, when it comes to the need for certain technologies, Hong Kong basically does not meet the requirements.
Fortunately, at this time, Hong Kong belonged to the Commonwealth. Although it was still discriminated against, the restrictions in many aspects were not very strong, especially for civilian technology. As long as it was not cutting-edge, there would basically be no ZZ problems.
Problems that can be solved with money should be solved with money as much as possible. After making huge profits from the arcade market, Midea's financial resources will have a qualitative change, and it will have certain financial resources to complete the strategic needs of the electrical appliance business.
"We barely have a certain foundation in the motor, and the next step is to start with the compressor." Lei Shengli said: "The compressor is the heart of the air conditioner and the most expensive component. If the compressor can be produced by ourselves, our The cost can be reduced by at least US$30, and it can also supply the refrigerator business and even other companies."
"Do you have any goals?" Chen Zhiwen asked.
"I thought of one." Lei Shengli said: "Before, our air-conditioning parts mainly came from Japan. For a while, I met Domu Laike, a company in Italy through a trading company, which specializes in making various types of compressors. I also talked to their salesmen. Although the owner of this company is Italian, he immigrated to France long ago. Italian companies hire professional managers for management.
I think this kind of boss who has been in other countries for a long time does not say whether he wants to sell the company, but he definitely does not regard this company as a business. Maybe, as long as the price is right, he will buy it. "
"Visitor Duomu? What's this name?" Chen Zhiwen almost didn't spell it out.
"It should be a direct transliteration from Italian. It's not a civilian brand, so it probably doesn't matter." Lei Shengli said with an embarrassed smile.
"Italy, it's a bit far, but it's not bad." Chen Zhiwen didn't worry about the name of the company and said after thinking about it.
When future generations talk about industrial countries, they will only think of the United States, Japan, South Korea, Germany and France. However, in fact, many other countries in Europe also have very good industries. However, because the country is small, the industrial chain is not very complete, so it is not very good. famous.
Italy is a country that Chen Zhiwen is quite familiar with. He has also traveled in his previous life. Its main economy is tourism, but in fact its industrial level is not bad. In the automotive field, there is the giant Fiat, but this car brand has not been mentioned in later generations. Enter Chinese market.
"It's just that this company is not small in scale, and it doesn't only supply compressors for home appliances, but also compressors for car air conditioners." Lei Shengli said.
"Car? Which car brand?" Chen Zhiwen asked in surprise.
"Volkswagen, Renault, Fiat and the British Langley Motors." Lei Shengli replied. When he first met with the salesman of this company, the first thing he introduced was their achievements in the automobile industry. Although Their cooperation project was for civilian products, and Lei Shengli was impressed by the other party after hearing about his achievements in the automobile industry.
This is the reputation in the automotive field. As long as you get involved in the automotive industry, especially if you become a supplier of a well-known big car brand, you will be born with an aura of trust.
"It's so awesome. These are the only common car brands in Europe. There's no BBA?" Chen Zhiwen said with a smile.
"No, and they are second-tier suppliers in the automobile industry, and they do not directly supply automobile factories." Lei Shengli explained: "Suppliers that directly supply automobile factories are called first-tier suppliers, and suppliers that supply first-tier suppliers are called first-tier suppliers. The goods are called Level 2.”
"Well, I understand. They supply products to companies that make car air conditioners. They are very good at it. Can you check the size of this company? Is it listed on the market? What is its technical level? How many patents do it have? If we If you want to acquire it, and the other party is willing, how much can you get it for, and also consider the local government in Italy." Chen Zhiwen thought for a while and said.
For the development of enterprises, mergers and acquisitions in vertical industrial chains are nothing more than one of the fastest expansion methods. Especially in industrial chains with mature technologies, it is difficult to bypass previous patents through own research and development, and it is far from keeping up with maturity. Competitor speed.
Especially since the other party also has the production capacity in the automobile industry, if you take over it yourself and invest funds, you can definitely make another step forward.
"Okay, I'll arrange for someone to go to Italy for on-site investigation. It's just that with the subsequent negotiations, it may take a long time." Lei Shengli said.
"It's okay, we're not in a hurry." Chen Zhiwen shrugged.
Next, he needs to spend a lot of money to snipe Hutchison. This period of time is not the time to spend a lot of money on other aspects. In addition, no matter what, if Midea's air-conditioning refrigerator wants to succeed in the US market, it may only take five years. It has just begun, and it may not necessarily be big in ten years.
In such a mature market, if you want to really overtake in a corner, you can only rely on the mainland market that is about to be reopened. Otherwise, there is no possibility. Before the mainland is reopened, or for a period of time after, Midea must turn the entire industry into one. With control in hand, we can directly take advantage of the mainland's advantages and develop rapidly.
(End of chapter)
