"Mr. Cheng, I think Vice President Shu's suggestion is feasible, but we have to choose the time and extent of the price reduction, and don't let Taobao Electrical Appliances Group worry about it, otherwise we will be like Gome Electrical Appliances Company, gaining face and losing face. ! I heard that at the public land auction in Beijing, Pengrun Investment Company won the competition with Beijing Vanke Company and thought it was a sure win. However, Shunyuan Real Estate Group finally took action and slapped Pengrun Investment Company in the face in front of everyone. Huang Guangyu’s dream of entering the Beijing real estate market is shattered!”
The company's second largest shareholder and vice president Liu Hui rushed back from Nantong for a meeting last night. Yongle Electric Co., Ltd. is headquartered in Zhoupu Town, Nanpu, Shanghai, on a street where the countryside atmosphere has not faded. After 4 years of rapid development, with 9 The Jia Yongle home appliance chain store has occupied the second place in the Shanghai and Shanghai home appliance market.
Yongle Home Appliance Company also has two competitors in Shanghai, Shanghai Business Center Home Appliance City and Jingcheng Guotong Electric Co., Ltd.
Shanghai Business Center Home Appliance City was established in September 1996. After two expansions, the shopping mall has a business area of more than 10,000 square meters. It is the largest single home appliance market in Shanghai. It adopts a market-oriented operation mechanism and highlights the brand monopoly form. Market enterprises operate independently, are responsible for their own profits and losses, and give full play to the laws of value and competition; they use a market-oriented management model in management, implement unified management, and clearly mark prices.
Jingcheng Guotong Electrical Appliance Co., Ltd. was established in July 1993. It owns Zhabei Guotong Electrical Appliances chain store and Yangpu Guotong Electrical Appliances chain store in Shanghai.
"Vice President Yang thinks, when should we start lowering prices? How much?"
Cheng Xiao also understood that Huang Guangyu must regret it now. After the summer promotion is completed, he still doesn't know how to deal with the aftermath? Compared with Taobao Electrical Appliances Group, Yongle Electrical Appliances Company is not a competitor at the same level. The 14 Taobao Electrical Appliances malls in Shanghai have relied on their leading position for many years and have not significantly reduced prices. Everyone has food to eat. Once they target each other, Yongle Electrical Appliances Co., Ltd. It is difficult for electrical appliance companies to continue to develop in Shanghai.
"Since the second Taobao Electrical Appliances Mall in Changning opens on November 1st, I predict that Changning Gome Electrical Appliances Mall will open a week ahead of schedule. We will launch two weeks in advance in nine Yongle Home Appliances Malls in Shanghai on the grounds of celebrating the National Day on November 1st. During a major home appliance promotion event, the average price reduction is about 2%.”
"Mr. Cheng, I agree with Vice President Liu's suggestion!"
Shu Wei agreed.
"Vice President Yuan, do you have any good suggestions?"
"Mr. Cheng, our prices are reduced by 2% on average. If Taobao Electrical Appliances Group reduces prices by 5% on average, how will we respond? How long will this big promotion last?"
Yuan Shi, the company's vice president and chief financial officer, is also the company's fourth largest shareholder. He cannot stand by and watch Gome Electric Co. enter the Shanghai market and eat into Yongle Electric Co.'s market share. However, price cuts are a double-edged sword. He is worried about angering Taobao. Fu Qingyun, the female head of the electrical appliance group, is also a hardliner.
"Vice President Yuan's concerns are justified. I suggest an average price reduction of 3%. The big promotion will continue until the end of the National Day. If Taobao Electrical Appliance Group follows up and reduces the price by an average of 5%, we will not follow suit."
Cheng Xiao made the final decision.
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"Mr. Liu, tell me your plans?"
On September 3, Jin Guoqing, general manager of Taobao Electrical Appliances Group, was ordered to return to Jiangcheng headquarters. He first reported to Liu Min and Zhou Zhiping, and the three of them came to see Sun Jian together.
In response to the first round of home appliance price war launched by Gome Electric Co., Ltd. in Beijing and Tianmen, 17 Taobao electrical appliance malls in Beijing and Tianmen reduced their prices by an average of 10% to compete. After 40 days, the 15 Taobao electrical appliance malls in Beijing sold 1.736 billion yuan. Yuan, a year-on-year increase of 357%; profit was 20.82 million yuan, a year-on-year decrease of 61.7%.
On September 1, Gome Electric Co., Ltd. announced in the media that the 40-day summer promotion event had successfully concluded, with sales increasing by 115% year-on-year. From now on, prices will return to normal.
"Mr. Sun, Huang Guangyu is overestimating his capabilities. This time he shot himself in the foot and caused us heavy losses. He also plans to open three chain stores in Shanghai and Shanghai by the end of the year. It is aimed at us. We cannot be polite to Huang Guangyu. I suggest Continuing to cut prices by an average of 5% in Beijing and Tianmen will not give the eight Gome electrical appliance chain stores at the end of the year a chance to make profits. Starting from October 1st, a 5% price reduction campaign will also be carried out in Shanghai and Shanghai, causing Changning Gome Electrical Appliances Mall to lose money when it opens. One family loses!"
"I agree with Mr. Liu's suggestion!"
Liu Min's suggestion was exactly Sun Jian's idea, and he was very pleased. After 14 years of training, Liu Min was now able to take charge of his own business.
Ever since Gome Electric Company took the lead in launching a price war on home appliances in Beijing and Tianjin, Sun Jian began to reflect. The reborn people could not bear to use the big to bully the small. They hoped to give the former business leaders a chance to grow, and also set up competitors for Taobao Electric Group. , without his obstruction, Liu Min, Ye Mao, Zhou Zhiping, Zhang Hui, Fu Qingyun and others would not have given Gome Electric, Yongle Electric, Dazhong Electric and Suning Electric a chance to grow.
The shopping mall is like a battlefield. To put it mildly, it is kind-hearted. Sun Jian still underestimated the heroes of the world. Huang Guangyu, Cheng Xiao, Zhang Dazhong and Zhang Jingdong and other business tycoons in the past were all top elites in the crowd. Once they were given the opportunity to grow, Gome Electric Appliances, Yongle Electric Appliances, Dazhong Electric Appliances and Suning Electric Appliances chain stores will spring up in big cities. Although they cannot surpass Taobao Electric Appliances Group, they will cause heavy losses to Taobao Electric Appliances Group.
hey-hey……
Liu Min, Zhou Zhiping and Jin Guoqing laughed. Mr. Sun finally let them take action!
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"Second brother, Taobao Electric Group is not going to give us a sip of soup?"
Since the eight Gome electrical appliance chain stores in Beijing and Tianjin resumed normal sales prices on September 1, Huang Guangyu and Zhang Zhimin have been paying attention to the price changes in Taobao electrical appliance malls in Beijing and Tianmen. Four days have passed, and the prices in Taobao electrical appliance stores in Beijing and Tianmen have been increasing. Taobao Electrical Appliances Mall continues to offer large price cuts and sales. Customers are worried that prices will return to normal at any time and are overcrowded. However, eight Gome Electrical Appliances chain stores have more salespeople than customers.
Gome Electrical Appliances Co., Ltd. launched a summer home appliance promotion event. Although sales increased by 115% year-on-year, it suffered a loss of more than 17 million yuan, making money at a loss!
At 8:30 pm on September 4, a notice of Taobao Electrical Appliances Group Co., Ltd.’s substantial price cuts in Beijing and Tianjin suddenly appeared on pN.
"In order to celebrate the 50th anniversary of the founding of the Republic, and to thank consumers in Beijing and Tianjin for their love for Taobao electrical shopping malls, starting from September 5, in 17 Taobao electrical shopping malls in Beijing and Tianmen, except for computers and other products, all products will have an average discount. 5%, consumers are welcome to shop and enjoy five-star customer service.”
Zhang Zhiming, who had been paying attention, saw it immediately. His heart sank and he called Huang Guangyu.
