We are all reborn, who wants to be the richest man?

Chapter 684: Unifying the Home Appliance Market

Ship, ship, and ship.

The sales of Changhong in Tianfu Honor Mall are booming, but this grand scene is not only happening in Tianfu Honor Mall.

"Old Ni has gone crazy. Changhong has cut prices of its entire series nationwide by 30% today, but their gross profit is less than 25%. This will make Changhong unprofitable and they will lose money on every unit sold."

"No profit? That's better than struggling to survive.

Our domestic home appliance brands will only end up dead if they continue like this. I have long said that national brands are related to the foundation of the country, and we cannot give in again and again."

The person who is most willing to see Changhong’s big price cut is TCL’s Li Dongsheng.

"Looking at how popular Changhong is across the country today, tomorrow's media reports will surely fuel consumers' enthusiasm again. We can't wait any longer."

Li Dongsheng wanted to compete with Japanese brands a long time ago, but the top management opposed it. Now Changhong has taken the lead and all domestic brands have to follow suit.

Sure enough, Li Dongsheng got what he wished for.

The next day, Li Dongsheng said passionately in an interview, "TCL wants to be a death squad that serves the country through industry, and I, Li Dongsheng, am the captain of the death squad."

On the same day, TCL's large-screen TVs were slashed in price across the board, directly competing with foreign brands in major cities such as Shanghai's capital.

In the capital's home appliance industry, there is one domestic brand that cannot be avoided, and that is Gome.

In the 80s, reform and opening up improved the quality of life of a large number of residents, which brought about a huge demand for home appliances.

At this time, Erhuang and his brother Dahuang Huang Junqin went north to start a business. Their first stop was not the capital, but Inner Mongolia.

However, this home appliance business is not a regular one. Instead, it buys scrap home appliance parts from abroad and then repairs and assembles them into home appliances by itself.

Dahuang's repair skills are very good, and the quality of the repaired and assembled home appliances is guaranteed, so the two brothers' business is in short supply and the products are snatched up as soon as they are put on sale.

However, there is always a but.

The two brothers were not satisfied with selling home appliances, they also imported some in-demand items from the south to sell, which is commonly known as "diggers".

This was considered an act of disrupting economic order at the time, and the police soon came to the door.

Not only were all their goods confiscated, but Da Huang was also imprisoned for 81 days.

The business in Inner Mongolia failed, and after being released from prison, Dahuang and Erhuang decided to develop in the capital city where the market was broader.

In 1987, the two brothers rented a 420-square-meter store at No. 100 Qianmen, East Street, and named it Gome. This was also Gome’s first store.

The store sold half clothing and half electrical appliances, but the two brothers soon discovered that the sales and profits of home appliances were much higher than clothing. So they discussed and directly cut off the clothing department and changed the store name to Gome Electrical Appliances.

In that era, washing machines and color TVs had to be purchased with coupons. Most home appliance sales in the mainland were monopolized by state-owned enterprises, which had many channels and wide networks, and were superior to Gome in both strength and scale.

However, Gome is not afraid, as they not only have sufficient supply but also low prices.

With a steady supply of goods and lower prices, Gome expanded rapidly. In just two years, Gome opened several branches, and the two brothers' wealth soared.

If nothing goes wrong, the two brothers will be able to achieve a small goal soon.

The accident happened soon. In 89, the country launched a major crackdown on smuggling. Gome suffered heavy losses and many stores were closed due to shortage of goods.

This also explains a problem, that is, where Gome gets its large amount of goods.

Erhuang ran away after receiving the news, but Dahuang was not so lucky and was imprisoned for another year.

Maybe it was because he was the one who went in. After coming out, Dahuang said that he couldn't live like this anymore and he had to separate the family.

So in 1993, the two brothers parted ways, and Erhuang got the Gome brand, hundreds of thousands of cash and a Xiali.

Dahuang took most of the funds and plunged into the real estate sector.

After the separation, Erhuang showed amazing business talent. He adopted an underwriting system for Gome, which was very new in the country at that time, that is, an underwriting system that separated from middlemen and directly contacted manufacturers.

This greatly reduced Gome's costs, allowing Gome's home appliance prices to be 20% to 30% lower than those of other shopping malls, thereby attracting a large number of customers.

By now, Gome has developed its own set of home appliance sales models, with more than 20 stores in the capital area and sales exceeding 100 million yuan.

In mainland China, those state-owned shopping malls have never been a rival to Honor Mall. The real rival is Gome.

Compared with the current Gome and Honor Mall, they are like Skylark and Tianpeng, but Honor regards the other as its biggest competitor.

The Gome store on Qianda Street was bustling with people. Customers poured in one after another, competing to buy their favorite home appliances, creating a spectacular scene.

"Should we buy TCL or Changhong?"

In the color TV area, a young woman and a young man were observing the various home appliance brands in front of them.

It looked like they were a young couple getting married and were selecting furniture.

"Of course, I'll buy the one that's cheaper."

The man said as a matter of course, "The technology of the two brands is similar, so naturally price wins."

"Then let's go for TCL's 21-inch color TV. The 19-inch color TV is a bit small, and the 24-inch color TV is too expensive.

Unfortunately, Changhong’s 21-inch color TVs are sold out, otherwise they could be discounted by yuan.

But it’s not bad, compared with the brands from the island countries, you can only buy a black and white TV at this price.”

Discussions like this were everywhere in the Gome store, but no one noticed that two special customers were receiving such information.

Half an hour later, the two left the store and stood at the door looking back at the still crowded store.

“The company’s strategy is correct, and Gome is the competitor we need to pay the most attention to.

This round of price cuts for domestic home appliances is like a tonic for Gome, and I think Gome will expand overseas soon."

This round of price cuts has brought an explosive growth period to the home appliance market. Although Honor Mall is far ahead in the field of home appliance sales, it never takes it lightly and always takes every competitor seriously.

TCL followed Changhong's footsteps and its sales soared, and many brands began to follow suit.

In addition to TCL, major national brands have announced price cuts, with the price reduction ranging from more than 18%.

The hand-to-hand combat among domestic TV brands has achieved huge results. In just half a month, the market share of domestic TV brands led by Changhong has risen rapidly.

"According to the forecast of our subordinate institutions, if this price reduction trend can continue until the end of the year, the market share of domestic TV brands will be at least more than 20%, and it will not be surprising if Changhong's market share reaches %."

Luo Nianzhong is very concerned about this price war and he reads the important information sent back to Hong Kong from Rabbit every day.

"It's so brutal! Such a price war is simply unheard of. Most brands are at a loss on every unit sold."

Liang Botao, who was reporting, was still sighing that he had seen and knew many cases of price wars. The rise of Hong Kong Island was based on price wars. At that time, it used a large amount of cheap labor and light industry to open up the European and American markets.

But Liang Botao had never seen such a loss-making price war. This was not a temporary loss. From the information obtained, it seemed that it was going to last for half a year or even longer.

At this time, the influence of any technology brand will be greatly discounted. It all depends on who has more funds, who has more courage, and who can afford the loss. Changhong is a Far Eastern enterprise, and he can get the policy formulated by General Manager Ni.

"I think this is the future business development model. No matter whether you make money or lose money, the first priority is to win the market."

Is the home appliance industry enough? You underestimate the manufacturing enterprises of Rabbit.

This is still the real industry, the Internet field is even more terrifying.

"I heard that Haier and Gree are also planning to join?"

"That's right." Liang Botao nodded.

"I really don't understand why these two companies are joining in the fun. They are living a comfortable life and can just develop slowly."

Thanks to the investment from the Far East Group, Haier and Gree have opened up the international market regardless of their sales volume, which is the best publicity in China.

Therefore, the two companies are doing very well. Except for foreign brands, the market share of domestic brands has been occupied by them.

"You don't understand. This is the self-esteem of a nation and the inevitability of a nation's rise."

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Yes, it is the inevitability of national rise.

Without a strong industry, there will not be a strong country, let alone a strong nation.

So even though Haier is doing very well, Zhang Ruimin still said that we are not afraid of competition.

"We have the confidence and courage to compete with multinational capital.

Haier is now also a joint venture, and we have giant companies backing us.

So what if it loses money? Haier will never let the domestic refrigerator and washing machine industry die in the hands of foreigners.

Haier will tell the Chinese people that brands like Panasonic and Sanyo are no longer high and mighty. Haier has the ability to bring them down from the altar and is doing it.

Even if I die, Haier will definitely be the last one to die."

If the main theme of the TV market is price war, then Haier, which dominates the battlefield of refrigerators and washing machines, plays more about publicity and service.

“When there’s thunder, it’s going to rain, Leo~.

It’s raining, so hold an umbrella, Leo~”

In a tube-shaped building in Xi'an, after get off work and school, apart from the smoke rising from the smoke-filled corridors as families cook dinner, this theme song can be heard on the televisions in every household.

In the open space outside the tube building, uncles and men were playing chess and cards, it was very lively.

From time to time, someone was called away to eat, and someone would quickly take his place. It was very lively with people coming and going.

"Hey, Youzhi, what a rare guest. Aren't you supposed to be at home listening to Peking Opera at this time?"

"Don't mention it. The TV is occupied by my eldest grandson, who is watching that Haier Brothers cartoon."

"My kid is the same. I don't know why this cartoon is so good. Now at this time, we can't see any kids fighting outside."

How could it not be popular? The plot is so attractive. This time, Haier Group specially cooperated with Asia Media.

Asia Media intends to promote this cartoon to the world, so you can imagine how good it is.

"By the way, Youzhi, doesn't your second son go to work at Haier? Your family seems to have a strong connection with them."

"What's the use?" The old man waved his hand and said, "I'm not a formal employee, just an after-sales maintenance staff."

"Be content, at least the salary is good and guaranteed.

State-owned enterprises? We have a few that can open normally.

I also want to ask if your Hongbin's company is still hiring. My boss's factory has no tasks, and it's not a good thing to be idle every day."

Seeing his old friend’s worried face, Chen Youzhi’s resentment towards his second son not being a formal employee lessened a lot. At least he didn’t have to worry about food and clothing now.

"I heard the day before yesterday that they are still recruiting. It is said that they are recruiting a lot, but some may not work in this city, but in neighboring cities."

"The neighboring city is fine, it's better than home."

The other old men who had been paying attention to the conversation between the two also had some thoughts at this time. The current environment is like this, and every family has unemployed labor force.

"Then you can let your kid and Hongbin go to their company to take a look, and if they are successful, they can stay."

The next day, Hongbin, who came to the factory with six or seven neighbors, was still a little nervous.

We are recruiting, but there are too many people coming.

However, what he didn't expect was that all these people actually stayed. After working for a few days, Hongbin knew that their maintenance and after-sales department already had more than 20 people, but he didn't expect that there would be more.

This is service. Compared with the tragic situation in the TV industry, the price reduction of refrigerators and washing machines is still within a relatively reasonable range.

However, Zhang Ruimin invested heavily in the after-sales field, as he felt this was a key point.

It is impossible to use home appliances for only a few years after purchase. Compared with Japanese brands that offer a three-year warranty and no after-sales service, Haier will definitely be more competitive with its comprehensive after-sales maintenance service.

Who can guarantee that their electrical appliances will not break down after four or five years? This is when Haier, with its huge after-sales capabilities, demonstrates its value.

Relying on the loan from Far Eastern Bank and the abundant labor force in this era, Haier established complete after-sales service centers in first- and second-tier cities and some third-tier cities in just half a month.

Thanks to this kind of publicity, Haier's market share has skyrocketed.

It is already the market leader and now seems to be dominating the refrigerator and washing machine fields.

"Throughout May, Haier's refrigerator and washing machine market share has exceeded half, and it can be said that it has already established its dominance, while the market share of foreign brands has been continuously squeezed.

In the television industry, Changhong's market share increased by 9.7% in May and has now reached 22.9%, firmly securing the top spot.

Now the market share of foreign TV brands is less than 40%, and I don’t think they can make a comeback.

As for the air-conditioning industry, although Gree's market share has exceeded 10%, Chunlan is still the leader."

In mid-June, Liang Botao obtained Rabbit’s home appliance sales data for May.

"Chunlan is not enough evidence. Now I am more optimistic about Gree's future development."

Liang Botao nodded, agreeing with Luo Nianzhong's point of view.

"If Hitachi is included, it can be said that Far Eastern home appliances occupy half of the market and dominate the home appliance market."

Luo Nianzhong was not very excited. This was just the beginning. Overseas was his goal.

(End of this chapter)