Countercurrent 1982

Chapter 1991 The countryside surrounds the city
BestMed’s terms of cooperation with Tianyin Group can be said to be discriminatory, but it also represents the attitude of many American distributors towards Chinese products.

In fact, not only the electrical retail industry, but also other American distributors have always held a discriminatory attitude towards Chinese products. In the United States, Chinese products are synonymous with cheap and not durable. Poor people, they will basically not choose Chinese products.

Regarding this kind of thing, Duan Yun felt a little angry at the beginning, but after calming down, he also thought about many things clearly.

After all, the largest U.S. distributor like BestMed also has its own business principles. If they sell those inferior and cheap products, it will also damage their brand. It’s just that BestMin targets different regions in the U.S. and the actual situation of consumers. Purchasing power and demand have different sales strategies, and many products also need to be matched with high and low levels. Tianyin Group's products are destined to appear only in some poor and remote small cities, because the American residents there usually cannot afford too expensive electrical appliances. products, and although the quality of Chinese products is not good, the extremely low price advantage allows them to obtain some sales.

So this is BestMed's positioning of Tianyin Group's products. They will definitely not allow Tianyin Group's products to appear in stores in the wealthiest cities such as New York, Los Angeles, and Chicago, because that will reduce consumers' expectations for shops. The evaluation will even lower the grade of the entire BestMed products on sale.

So if you want to win respect, you must have strength. Word of mouth and reputation are accumulated little by little. If Duan Yun wants to win the respect of American dealers, anger will have no effect. He must rely on product sales and word of mouth. Let's slap those dealers who are actually Chinese goods.

In addition to Best Maid, the other two major American electrical chain dealers also discriminate against the products of Tianyin Group, but compared with Best Maid, the other two American electrical chain dealers offer The cooperation conditions are slightly better, and high counter fees will not be charged, but only consignment sales are accepted, and the payment settlement cycle has also been shortened to three months.

Except for these three major electrical appliance distributors, other electrical appliance distributors in the United States are not nationwide. They only have their own sales stores in each city in a certain state, and their sales are not even a fraction of BestMed. This also makes many distributors pay little attention to these small chain stores. The products produced are given priority to well-known large distributors, and the products produced by rich production capacity will be sold to these small distributors. The supply of dealers is not stable, and they often face out-of-stock and out-of-stock situations.

In addition, some electrical appliance dealers are on the verge of losing money and going bankrupt. Because they lack money to buy in large quantities, manufacturers supply them with higher prices than companies like Best Buy. Seriously insufficient, in the competition with large chain stores, it is at a disadvantage and disadvantage. If it goes on for a long time, the only result of waiting for these small chain stores is bankruptcy and bankruptcy.

The small American dealers who came to talk to Tianyin Group this time, they do not have the strength to engage in the high-end market, they are out of stock or the supply of goods is unstable, and the consumers in the state or region where the income is not high, and there are many poor people, so they are very concerned about the products produced in China. The acceptance of electrical products is higher, and this is also a helpless choice.

Compared with companies like PepsiCo, these small American electrical distributors offer slightly better conditions. Although they only accept consignment sales, they will give Tianyin Group a relatively good exhibition for DVDs. There will also be key sales in the store.

This point is very important to Duan Yun, because in a store, counters with good locations and counters with poor locations have a very important impact on product sales. Even the best products, if placed in a corner of the store, It is also difficult to have a good sales volume, and if a relatively poor product can be placed in a conspicuous position, the sales volume will definitely increase. This is an inevitable thing.

Duan Yun now has very little room for choice. First of all, the conditions offered by BestMed are unacceptable. The one-year payment cycle is too long, which will easily cause some troubles for Duan Yun. Mai can't sell his products in big cities, so there is no need for Duan Yun to cooperate with companies like them.

Since big companies have no room for cooperation, Duan Yun can only focus on these small electrical appliance dealers.

This situation reminded Duan Yun of the strategy used by a great man back then, which was to encircle the city from the countryside.

From a practical point of view, it is very cumbersome for Duan Yun to sign contracts with many small electrical appliance dealers. In addition, the risk involved is also very high, because many small dealers themselves are in a state of poor management and may go bankrupt at any time If it goes bankrupt, it will be difficult for Duan Yun to recover the payment for the goods.

But these small dealers promised to try their best to promote Tianyin Group's DVDs, which was very important to Duan Yun, so even if he needed to take some risks, Duan Yun also decided to cooperate with these small American dealers.

It's just that when choosing a partner, Duan Yu naturally kept his hand, that is, the US distributor company that cooperates with Tianyin Group must be established for more than three years, and those who are less than this period can only politely refuse.

At the beginning of March, after the end of the CES exhibition, Duan Yun had already signed a cooperation contract with seven of its distributors in the United States, and the official supply time was set for the beginning of May, because during this period, the Tianyin Group in the mainland had to handle the export of some related products It will also take some time for the formalities and shipping of the DVD to the United States.

"We still need to cooperate with more small electrical appliance distributors in the United States, and you should be responsible for contacting them proactively." In the manager's office of Tianyin's US branch, Duan Yun said to Li Yun: "Those big distributors did not give We leave room for cooperation, so our DVDs can only enter the US market through these small distributors in the early stage, and we must maintain a good relationship with Sony, and get some resources from them as much as possible..."

"I understand." Li Yun nodded and said.

"There is also the issue of financing. You should make initial contacts with these venture capital firms on Wall Street, but you don't need to rush to negotiate any results, because we don't have much bargaining power yet, but I believe that as time goes by, they will Sooner or later, we will give conditions that we can accept..." Duan Yun paused, and then said: "I will fly back to China the day after tomorrow, and I will leave the affairs here to you for the time being. I hope that I will come to the United States next time. Now, you can bring me some surprises..."

(End of this chapter)