Coquettish Rebirth

It is a good idea to develop the European market and the American market, but it is very difficult to do it!As for Ni Runfeng, although he was skeptical about Jia Hongjian's strategy of entering Europe with a mid-range and high-end product at first, after investigation, he was convinced.Why this shift?And listen carefully.

Jia Hongjian hasn't paid much attention to the TV market in these years. In his impression, what Changhong needed to pay attention to before was the market in mainland China.But who knows that the world is changing too fast - because under the guidance of Jia Hongjian, Changhong is far stronger than in history, and has basically monopolized most of the domestic market since 94.Although such a monopolistic behavior did not say that it hurt the domestic market, it forced domestic manufacturers to go to foreign markets earlier!

That's right, Jia Hongjian originally planned to start going abroad around 98, but in fact, other companies were forced to go abroad since 97, and because Jia Hongjian was not in the TV business, he was not in the industry. So he didn't pay attention to these trends at all. Tlc has developed the Southeast Asian market, and some other manufacturers want to export cheap products to Europe, but what happened?It was in 44 that Europe directly raised the banner of trade protection because it felt that China was "dumping", and then imposed a [-]% tariff on TVs produced in China!Under such circumstances, with the addition of a series of things such as shipping costs, although it is not possible to say that the price of domestic TVs in China is similar to that of Philips, it is comparable to low-end European brands—mainly Turkish brands. The price is almost the same!

In the 90s, there was no help from Jia Hongjian.How many domestic TV manufacturers will market it?Not to mention that Chinese TV brands are not brands at all in the eyes of Europeans!In their eyes, at least Turkish brands are cheap, but at least they are familiar with them, while Chinese brands are not familiar or know at all!Plus it comes from China, who can think this is a good thing?Therefore, those manufacturers who originally wanted to try to export to Europe gave up after a short attempt.And when China was negotiating with the EU about the WTO, the initial quota that was negotiated was only a low-tariff quota of 40 units a year!

That's right, since 02, Europe has allowed 40 Chinese color TV sets to enter the European market with a low tariff quota. If there are more than 40 sets, the 44% tariff will be restored!And what do these 40 units mean?It means that there are more monks and less meat, and the less meat is pitiful!You must know the peak sales season before 98.Changhong will sell 400 million TVs a year at least.In China alone, there are more than 600 million units!What is this concept?The quota for the whole of Europe is only 40 units, which basically means that Changhong's domestic sales volume is less than one-tenth, and how many levels are needed for this? Manufacturers will grab it together!And just the quota of 40 units.That's not to say there's no tariffs at all.That is not to say that it can be directly sold in Europe at a low price in China!That must at least comply with the European team's price regulations.To sell!Although this means that manufacturers can make more money, the relative low price advantage is not so obvious!Originally, TVs made in China could be half the price of Turkish TVs, but now they are limited to 8% to 9% of the price.Chinese products don’t have brand recognition yet, what’s wrong with your sister’s competition?

And Turkey has now become the largest TV production base in Europe!They can be said to be the "China" of Europe. On the one hand, Turkey's economic level is relatively backward, and it does not want to enter the European Union, so it has not greatly improved labor treatment and benefits, so the relative labor wages are relatively low. At the same time, Turkey has a population similar to that of Germany. , it can almost be said that it is the most populous country in Europe outside of Russia. Both of their products are sold domestically or entered in Europe, so they are all produced according to European standards, so they finally become the belt of European brands. Work site!It’s such a small country with a population less than one-tenth of China’s. In the 90s, it also experienced the same economic development period as China, so the annual sales of TVs in six or seven years reached as high as 300 million sets. !There are half to more than half of China!

Turkish immigrants to foreign countries are very common in Europe, especially the number of Turks who go to Germany.Therefore, after dominating the local market, Turkish local brands quickly developed into Germany. Relying on the purchasing power of Turkish origin, this Turkish brand quickly took root in Europe, and then slowly, like Chinese products crushing the world, gradually Started to crush European brands!Their products are not of high grade. In fact, they are generally similar to Chinese TV products, but relying on cheap sales, they squeezed many manufacturers in Japan and South Korea and had to close their respective factories in Europe, and then put production orders Give it to the Turks-that is, OEM!

Such a set of methods is actually very similar to what Jia Hongjian wants to do. For example, Wester, the number one TV brand in Turkey and the second best-selling brand in Europe, initially relied on OEM for Korean companies. Then after having our own craftsmanship and production capacity, we began to prepare to make our own brand.However, because the chairman of the company was wanted by the UK for financial crimes, the products could not enter the UK market, so the chairman finally sold the shares.The next company that took over was the Zorro Group in Turkey—a group that started out as a curtain manufacturer. The new owner of the curtains did not understand home appliances, so he bought shares in many companies and then ignored them at all. It doesn't matter, the power was completely delegated to the original management team, so from the mid-90s to the present, the annual output of West TV in 95 has changed from 30 sets to 500 million sets now!Annual sales have reached 10 billion US dollars!

Over the past few years, it can be said that among the European TV brands, the small and medium-sized brands rely on Wester OEM and then sell their own brands to make a fool of themselves, or Sony, Panasonic and other big manufacturers have to be forced to close down. He set up his own factory, then handed over the order to West for production, and then earned a brand fee by operating the brand!Even the internal components other than the picture tube are handed over to West. It can be said that except for the shell, it is designed by a Japanese manufacturer. Except for the picture tube, which is still Japanese, other internal designs and internal structures are all Turks. Made it!

Such an approach was the way Jia Hongjian wanted the large number of newly established foundry companies in Shuchuan to follow. Unexpectedly, someone in Turkey had already succeeded in taking it ahead of schedule!At the same time, China was economically sanctioned when China was not regarded as a market economy by Europe. It was believed that these home appliance manufacturers in China received unprofitable support from relevant upstream and downstream industries under the "planned economy", so they were sanctioned by Europe for trade. , This makes it impossible for the Chinese to grab the business of the Turks through the same route at a lower price!From this point of view, this is a challenge, but also an opportunity - don't forget, didn't Jia Hongjian say before that when we enter Europe, we don't do low-end products, but we go directly to mid-range or even high-end products?

The reality is that because of the European protection policy, Turkey has occupied our position. We have no way to compete at low prices and can only enter the market from the middle to the high end?Doesn't this coincide with Jia Hongjian's design?So this is why Ni Runfeng had to convince Jia Hongjian's judgment!He didn't expect the European market to be like this!He had never operated Changhong to enter any European market, so he didn't know that Turkey had developed so well in recent years!Indeed, under such circumstances, unless the Chinese go to Turkey to build factories, and then re-take the path that Turkish manufacturers have taken, otherwise they can only compete in a wrong place!

But how to compete in dislocation competition?Yes, Jia Hongjian said that he wants to enter the market in the mid-range or high-end market, but how?Just relying on the shrinking sales and profits in the Chinese market to support the European branch?We want to go to England or France or Germany to build a factory and use the expensive labor there to make TVs?How much does this cost?At that time, if mid-range products are directly introduced into the market out of thin air, will European consumers be willing to accept it?Let alone Europe, a TV set suddenly enters the market as a mid-range product in the Chinese market, and this brand has not been heard much, so it makes people untrustworthy!After all, never heard of it before, right?The biggest role of the brand is to allow people to quickly choose a product that can be "trusted" when faced with a large number of products, isn't it?

Although it seems that you must enter the market at the mid-range now, you must also choose a place to speak when you enter the market at the mid-end!We also have to think about how to do it, what products to develop, marketing methods, and a series of things?Otherwise how to do?Can't you talk like a headless chicken, and then go on a rampage?Jia Hongjian felt that as electronic products are still consumer grade, the best place of production is close to the biggest market!This keeps shipping costs low!In any case, the whole of Europe is quite big. If you build a factory in Romania and other places in Eastern Europe, it will be quite far to transport to Germany. Not to mention the Czech Republic and Slovakia, you have to transport it in Germany. , These are all logistics costs!Then build a factory in Germany or France?I built a factory there by myself for no reason, without the guidance of local experienced people, it is actually not easy to develop, and the management must be very smart and meticulous!It can be said that in Jia Hongjian's opinion, the best solution is to go to Changhong's branch in France and Germany under his personal leadership. Otherwise, he will not be at ease if anyone goes there. He may not be able to handle it, let alone others?

"How about... Let's choose one or two third-world countries with a large population to enter the following markets, earn some profits or something, rely on the profits to support the European branch, and then make efforts to expand in Europe? Otherwise, in a few years we will The domestic market is getting smaller and smaller, if there is no result in the European market, our entire group will be in danger..." Ni Runfeng said.

"..." Hearing Ni Runfeng's voice from the receiver, Jia Hongjian didn't reply immediately, instead he was fascinated by looking at a huge country on the map of Europe... "If I remember correctly, Russia... European countries? They also have a population of more than 1 million? How about entering the Russian market?" He suddenly asked Ni Runfeng. (To be continued..)