This spring sale is undoubtedly very difficult for local businesses in Korea.
First, Haier Group passed through the border like locusts and wiped out the middle and low-end users. Jiuzhou and Suiren squeezed the wallets of mid-to-high-end users. Then companies such as Gerry, Dami, and Rongsheng took advantage of the situation, like using Juehu. It's like fishing online. Users who were still waiting and watching before were also fished out.
By the time conglomerates such as Han Xing and LG came up with a "bottom line" price that everyone could accept, the people of Korea had already been completely cut off, leaving only a patch of grassroots.
Home appliances are neither fast-moving consumer goods nor clothing. Even though Korea has now entered the circle of developed countries, the people are not yet truly wealthy.
To put it simply, the market is saturated and there are not enough leeks. After all, there are only so many people.
Of course it's not without effect.
Under tremendous pressure, management at all levels assigned tasks. Every store and even every salesperson of the Korean home appliance company was honored to receive the "benefits" given by superior supervisors.
"Aniha Se, this beautiful lady, come in and take a look. LG's new air conditioner is on sale at 30% off. You can also draw Do Min Junxi's autograph and even a spot in the handshake party~"
Wen Yu held up a sign and very enthusiastically stopped a girl who looked like a groupie.
The latter looked unhappy at first, but when he heard that he could draw his idol's autograph and a spot in the handshake event, he immediately stopped.
"Axi, is it true?"
Hearing the girl's rhetorical question, Wen Yu's spirits perked up, which meant that the other party was definitely moved.
He quickly added fuel to the fire: "Yes, LG Group and Korean Star Group will jointly hold a large-scale party. There will be not only Do Min Junxi, but also a handshake party with XX/OOO, Shanying and other celebrities. I I even heard that lucky spectators would be drawn and given away tens of millions of won in cash at the party.”
"Really?! Is there an event flyer for me to see?!"
Wen Yu handed out the flyer in his arms with a smile on his face, and said casually: "Now after purchasing, we will draw the lottery directly online. Yesterday, three customers in our store got the quota for the handshake meeting. By the way, they got it." This quota will come with tickets to a large-scale party, which you can’t buy with money.”
The girl who was already excited immediately became excited after hearing these words.
Do Min Junxi's handsome face suddenly appeared in my mind, as well as the hug when shaking hands and close contact, and even...
There is no doubt that she is a star-struck fan.
What is even more undoubted is that under Wen Yu's words, this girl's wallet will definitely bleed.
This is the benefit of chaebols cultivating the idol entertainment industry. It can extract the value of target groups faster, with a very high success rate and without much resistance.
Daxia's companies make money from the normal needs of ordinary people in Goryeo, while the chaebols use the idol entertainment industry to harvest the leeks of specific groups of people.
For Goryeo Blue House, this spring is a good quarter for GDP growth. For some companies in Daxia, this discount event has consumed a lot of inventory in old production lines and gained a lot of market share. , which belongs to the category of making big profits from waste.
As for local companies in Goryeo, chaebol executives found that the situation seemed to be out of control.
Originally, Korean stars and LG should have taken the lead in the charge and used various channels to dispel the arrogance of Daxia Enterprises.
But this time, Han Xing waited for several days before blowing the charge, but the discount was not large. At the same time, the Blue House did not cooperate with the chaebol to cause trouble for those Daxia companies.
The home appliance market is not as sensitive as semiconductors. By the time the owners behind Goryeo realized something was wrong, the discounts offered by companies such as Gerry and Kyushu had gradually returned to their original prices.
On April 11, a small meeting was held within the LG Group.
LG's business covers chemical energy, electronic appliances, communications and services and other fields.
However, with the strong rise of Daxia companies, LG Electronics completely withdrew from the mobile phone market in July 2021 and completely stopped the production and sales of the mobile business department, and then transitioned part of its production capacity to home appliances.
This time, Daxia Enterprises' strong strategy in Korea has given LG Group, which originally had high hopes for the home appliance field, a severe blow.
Originally, in the Daxia market, Korean stars and LG were inseparable brothers, but now the younger brother seems to be a little less attached to the older brother.
The head of LG first reviewed its past glory. For example, in the air conditioner and microwave oven markets in Daxia, LG once became the "best-selling foreign brand". Later, in the mobile phone, color TV, and home appliance business, LG Invincible in the market.
Then the painful history of the collapse of the LG brand in Daxia was briefly introduced. Finally, the head of the LG Group concluded with some complaints: "We are all Korean companies, but Han Xing Group only cares about its own business, but we live and die! This It's simply unbearable!
From Korean Star's battery door to screen door, the market value of Korean Star's electronics market has plummeted, with losses reaching tens of billions of dollars, and even dragging down our Korea KOSPI Composite Index. This is simply a shame for Korea's enterprises!
Companies such as HTC, Sony, and Tesla also wanted to enter Korea, but they all met with failure.
But this time, these manufacturing companies in Daxia used shameful price wars to crazily squeeze out the local market share of our local companies, and in just one week, they swallowed up the market share of washing machines and air conditioners. Eat most of it! Among them, Haier has gained nearly 35% share in our local home appliance market.
Today it is home appliances, tomorrow it will be energy! They have even started working on energy.
I would like to remind everyone that according to statistics from our Polymer Battery Industry Association, rice power bank has occupied nearly 80% of our local power bank market, and market segments such as sweepers have long been dominated by Daxia Jiuzhou, Suiren occupied.
Moreover, in addition to these market segments, the sales of these Daxia brands in other major categories in our local market are also growing at a rate of several times or even ten times.
This is a terrible phenomenon. A group of Daxia manufacturing companies with innovative capabilities have gained recognition from users in our country. In the future, these brands are likely to form strong competition for our local companies through the improvement of their own R&D capabilities.
I don’t think anyone wants to be a lackey of Daxia Enterprises. "
Well, people have dignity, and dogs naturally have dignity too.
In the final analysis, Korean companies such as LG once took off because of Uncle Sam's industrial transfer and deliberate cultivation. Daxia's native country was full of waste and was waiting for development, so it took advantage of the opportunity.
However, the business thinking of the management was too narrow, which caused it to make various mistakes when faced with the technological catch-up of local enterprises in Daxia, ruining the good situation in vain.
Chapter 518: Cutting leeks
