"Zhiming, do you have any good ways to deal with it?"
Huang Guangyu turned on the computer and browsed the notice of Taobao Electrical Appliance Group, and followed the 5% price reduction. However, it was only 4 days since Gome Electrical Appliances announced the end of the 40-day summer sales. He went back on his words and slapped himself in the face; if he did not reduce the price by 5%, customers would definitely Without door-to-door service, Gome Electrical Appliances Company suddenly fell into a dilemma.
Gome Electric Appliances followed the 5% price cut and also made money at a loss. Taobao Electric Appliance Group still has a profit of about 5%. Through the surge in sales, it can occupy more market share and reduce profit losses caused by price cuts. Taobao Electric Appliance Group The price reduction of 5% means that Gome Electrical Appliances Co., Ltd. will not have the opportunity to make profits. Gome Electrical Appliances Co., Ltd. is very uncomfortable. This is all the consequence of the original impulse!
"Second brother, we feel uncomfortable. Yongle Electric, Dazhong Electric and Suning Electric are even more uncomfortable. We can only wait until the opening of Changning Gome Electrical Appliances Mall. Taking the opportunity to celebrate the opening of Changning Gome Electrical Appliances Mall, we also followed up with a 5% price reduction and launched a large-scale shopping mall. Promotional activities, sacrificing profits, and striving for the early opening of three Gome electrical appliance stores in Shanghai and Tianjin to increase sales and occupy more shares of the Shanghai and Shanghai home appliance market. Take it one step at a time."
In the face of the behemoth Taobao Electric Group, Zhang Zhiming can't think of a good way to get the best of both worlds for the time being. This is the price of challenging the boss.
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"This is all caused by Huang Guangyu's summer promotion. After opening 7 stores in Beijing, he felt that Beijing was too small. He challenged Taobao Electrical Appliances Group and overestimated his capabilities. He deserved to be slapped in the face! He also harmed us. In addition to With no other choice but to cut prices by 5%, the company has temporarily stopped its expansion plans and managed its existing stores."
Zhang Dazhong also immediately saw the notice of Taobao Electric Group's continued price reduction. He convened a meeting with the company's senior management overnight to discuss countermeasures. He was very angry with Huang Guangyu and finally made a decision to follow the price reduction by 5%, sacrificing profits and maintaining market share. .
In mid-December, Dazhong Electric Appliances' Tuanjiehu store will open. Dazhong Electric Appliances Co., Ltd. has six stores in Beijing, second only to Taobao Electric Appliances Group and Gome Electric Appliances Co., Ltd.
Dazhong Electric Co., Ltd. plans to expand to 12 stores next year, surpassing Gome Electric Co., Ltd.'s home appliance market share in Beijing. In 2001, it will leave Beijing and open a home appliance chain store in Tianjin.
The plan cannot keep up with the changes in the home appliance market!
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"Taobao Electrical Appliances Group continued its big promotion with an average price reduction of 5% in Beijing and Tianmen, but did not reduce prices in Shanghai and Shanghai. It continued to attack Gome Electrical Appliances' stores in Beijing and Tianmen, leaving Gome Electrical Appliances chain stores with no profits to make, and blocking Gome Electrical Appliances' sales in Shanghai and Shanghai. Continuing to open stores, besides following the 5% price cut, Huang Guangyu had no good countermeasures. There was no profit. On September 15, we also cut the price in Shanghai by an average of 5%. Once the price was reduced to the bottom, we would hit Gome Electric Co., Ltd. directly. "
Cheng Xiao also immediately saw the notice on pN that Taobao Electric Group would continue to cut prices in Beijing and Tianjin. He convened two vice presidents, Shu Wei and Yuan Shi, for discussion overnight and finally formed a new decision.
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At 7:30 pm on September 15th, on Shanghai Satellite TV, Yongle Electric Co., Ltd. released an announcement to celebrate the 50th anniversary of the founding of the Republic and repay the love of Shanghai consumers for Yongle Electric Co., Ltd., and eight Yongle Electrical Appliances shopping malls in Shanghai and Shanghai opened from 9 Starting from March 16th, a 20-day advertisement for a home appliance promotion with an average price reduction of 5% will be launched.
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"Second brother, how should we respond?"
The decoration of Changning Gome Electrical Appliances Mall has been completed. Chen Hongfeng, Huang Xiuhong and a group of management are instructing employees to arrange the booth and place various home appliances in preparation for the grand opening promotion next Saturday. By then, Huang Guangyu and Huang Guangqin will come to Shanghai Hai participated in the new store opening promotion event.
Chen Hongfeng visited the front line every day during this period. He was so busy that he never left his feet, but he was so motivated that he didn't go home until late at night. This was the first time he was on his own and dealt with many difficult problems that he had never experienced before. He benefited a lot. This time he couldn't be in The chain is falling in front of the eldest brother and the second brother.
Advertisements for the grand opening promotion of Changning Gome Electrical Appliances Mall have been issued in the media to avoid irritating Taobao Electrical Appliances Group and Yongle Electrical Appliances Company. They did not list the price reduction range, but I did not expect that Yongle Electrical Appliances Company did not take Gome Electrical Appliances Company seriously at all. , took the lead in starting a price war in the Shanghai and Shanghai home appliance markets, with an average reduction of 5%, obviously targeting Gome Electrical Appliances Company!
As Chen Hongfeng, the general manager in charge of the finance of Gome Electric Co., Ltd., he knows that Gome Electric Co., Ltd.'s net profit is only about 5% now. Following Yongle Electric Co., Ltd.'s price reduction of 5% is equivalent to making money at a loss.
Chen Hongfeng and Huang Xiuhong were undecided and took the initiative to ask Huang Guangyu for instructions.
"Hongfeng, since Yongle Electric Co., Ltd. has launched a price war in the Shanghai and Hainan home appliance markets, mainly targeting us, we cannot back down. Tomorrow, on behalf of Gome Electric Co., Ltd., we will announce in the media that during the grand opening promotion of Changning Gome Electric Co., Ltd., all products in the store, except Except for computers, etc., prices are reduced by an average of 5%, and customers are welcome to come and buy.”
Some time ago, Gome Electrical Appliances Company, Dazhong Electrical Appliances Company and Taobao Electrical Appliances Group took turns to cut prices and carry out large promotions. In particular, Taobao Electrical Appliances Group cut prices by an average of 10%, which lasted for 40 days. People in Beijing bought almost everything they wanted to buy, spending in advance and overdrafting. Consumption, during this period, there are very few customers paying attention to Taobao Electrical Appliances Mall.
Huang Guangyu was in a depressed mood. Gome Electrical Appliances Company was now not only targeted by Taobao Electrical Appliances Group, but also by Yongle Electrical Appliances Company! He thought that Yongle Electric Co., Ltd. would cut prices in response to the grand opening promotion event of Changning Gome Electric Appliances Mall, but he did not expect that the other party would be the first to launch a price war in Shanghai, with an average reduction of up to 5%, which would wipe out all the profits of Gome Electric Appliances in one fell swoop. It’s aimed at Gome Electrical Appliances Company!
"Okay, second brother!"
Chen Hongfeng's mood was understandable when he thought that Changning Gome Electrical Appliances Mall would face losses when it opened. The omen was not good.
Gome Electrical Appliances Mall in Xuhui and Gome Electrical Appliances Mall in Hongkou have begun renovations and plan to open at the same time in mid-December.
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"Mr. Sun, through analysis, we believe that Yongle Electric Co., Ltd. suddenly reduced prices by an average of 5% in Shanghai and Shanghai to give Changning Gome Electrical Appliances Mall, which will have a big promotion event next Saturday, a deterrent. Although it is not aimed at us, it will give us a boost in Shanghai. It will have a great impact on sales in Shanghai. We will also announce an average price cut of 5% tomorrow, which will not give Yongle Electric Co., Ltd. and Gome Electric Co., Ltd. the opportunity to develop and grow in Shanghai."
Fu Qingyun immediately called to report to Liu Min. After Liu Min and Zhou Zhiping discussed on the phone, she called to report to Sun Jian.
"Mr. Liu, I agree with your decision!"
Sun Jian also did not expect that Yongle Electric Co., Ltd. would take the lead in starting a price war in the Shanghai and Shanghai home appliance markets, and did not take Taobao Electrical Appliance Group seriously. Neither Huang Guangyu nor Cheng Xiao was a good opponent.
