Chapter 93 Sharp Counterattack (1/4)
In the workplace, people who can get to high positions sometimes rely more on emotional intelligence.
What is facing Wen Boyuan now is basically an unsolvable dilemma. He knew that this year's sales of Estee Lauder in the mainland will not only not keep up with L'Oreal, but will instead be left farther away.
Only making high-quality products, high-positioning, and no discounts. This is the brand strategy formulated by the headquarters for Estee Lauder, and he has no right to change it.
Is this strategy wrong? It seems that it is wrong now, which has led to Estee Lauder entering the mainland for more than ten years and has never been lukewarm.
But is it really wrong? Wang Ye can give the answer. It is not only good, but also extremely correct.
Although L’Oreal is dancing happily now, they will suffer a big loss in a few years. This is also the root cause of L’Oreal’s frequent promotions, and its brand image has been ruined!
Take their L'Oreal brand for example. They still have counters in major shopping malls and sell well. In a few years, they will basically never be seen in higher-end shopping malls, and they can only be seen in supermarkets.
Once the brand positioning is determined, the biggest taboo is to shake it!
If you position your brand for high-end and have no strange tricks, it may be difficult to endure at the beginning.
At this time, you can only grit your teeth and persevere and persevere!
Until consumers recognize your brand!
Stay until your competitors make mistakes!
If we follow the historical development trajectory, Estee Lauder will be able to make a comeback after three or four years. At that time, it will be the real accumulation of strength. L'Oreal's bad habit of discounts and promotions has also caused them to suffer a real big blow.
So now, L'Oreal can do big promotions and increase performance. Wen Boyuan can only watch it. There are really not many things he can do.
But can you stop doing things? Obviously, it is not possible, and large companies do not support idle people.
If the performance cannot be raised, then attitude is very important. Wen Boyuan must show enough attitude!
What to do? Wen Boyuan certainly has a way, he is ready to play two cards.
The first card is adaptation, and expanding the channel of Meigou.com is a highlight of his performance this year, so we must continue to maintain it.
In addition, Tmall has also begun to pay attention to the cosmetics area. The old rival L'Oreal has gone to open a flagship store, so Estee Lauder has to keep up. He also wants to open a Tmall flagship store. Of course, it is still impossible to open it at the moment.
Then, this is the second card he wants to play.
The second card is the tragic card. The Tmall flagship store cannot be opened, but the attitude must be shown and the people at the headquarters can see it. This is very important!
In order to allow Meigou.com to change the agreement, he went to Pengcheng and visited him many times. Even if he was rejected in the end, at least he had worked hard, who could accuse him of not doing his best?
Of course, granting Meigou.com exclusive online distribution rights was a small mistake he made. But when facing Meigou.com's purchase orders starting from one billion, who can withstand the temptation? In the face of such a large order, what is the only small mistake that can be made?
After these two cards are played, Wen Boyuan can advance, attack, retreat or defend.
If Wang Ye agreed to amend the agreement, everyone would be happy. If he did not agree, then he would be able to submit a report when he returned to the headquarters to give his performance report at the end of the year.
It’s not that I don’t do my best, but that business is really hard to do these days!
...
Wen Boyuan looked at Wang Ye with a longing eyes, and of course he still hoped that he could agree.
"Mr. Wen, I actually don't understand. What's the point of opening a flagship store on Tmall? Do you also want to learn from L'Oreal and carry out large-scale promotions?" Wang Ye asked.
"Of course not, our company cannot be like them. Even if it opens a Tmall flagship store, it will be consistent with the counter price. At most, free shipping, and give some extra trial package gifts." Wen Boyuan replied without hesitation.
Wang Ye nodded slowly, saying that he understood, took another sip of the cigar before speaking, "It's a month later, you will decide whether to open a Tmall flagship store at that time."
Although I don’t understand why Wang Ye asked him to wait for a month, Wen Boyuan was so smart that he didn’t continue to get entangled. Since Wang Ye said that, it would definitely be impossible to change. Then no matter how entangled he was, it would be meaningless and would only make people annoyed.
Wenbo left, and Wang Ye was the only one left in the office. He was half lying on the lounge chair, thinking about dealing with L'Oreal.
Originally, Wang Ye didn't plan to use this trick of hurting the enemy by 1,000, but since L'Oreal was going to kill herself, he didn't mind pushing them.
It also makes them understand that short-term sales are not important, and the long-term development of the brand is the key!
After making up his mind, Wang Ye asked Liu Ruomei to call Xu Jing.
Soon, Xu Jing came to Wang Ye's office.
"Dr. Wang, are you looking for me?" Xu Jing said with a smile.
"Sit down, how are the sales of L'Oreal's brands recently?" Wang Ye asked.
"There are basically no sales. L'Oreal's flagship store is crazily discounting and promotions. We are still considering whether to follow up. If we follow up, we will still have free shipping and basically no profit. If the promotional discount is not strong enough, it doesn't make any sense." Xu Jing frowned and said distressedly.
"Then let's do it too, but we'll do it when their event is about to end. By the way, when will the event end at their Tmall flagship store end?"
"The promotional poster is written for one week, which is considered a store opening celebration. It will be over in four days. I hope that after the end, it will be restored to normal prices." Xu Jing has also been very upset recently. After being tricked by L'Oreal, the sales momentum of Meigou.com has also declined.
"By the way, has Qinghuan brought the newly signed agreement with them? Last time I heard her say there is a supplementary agreement this time." Wang Ye asked.
This was originally one of the work that Xu Jing was going to report to Wang Ye. She took the agreement with her. When she saw Wang Ye ask, she opened the folder and took out the agreement and handed it to Wang Ye.
Open the agreement and look directly at the supplementary content. It clearly states that the sales price of Meigou.com will no longer be restricted, and they will be allowed to set prices on their own, but they will not be maliciously competitive. That is to say, it cannot be lower than the purchase discount, which is 50% off!
In fact, if the promotional efforts of Meigou.com are 60% off, plus free shipping and operating costs will be equal to no profit. If you really want to make a 50% off, you will definitely lose more money when you sell.
But it has no impact on L’Oreal. Even if you sell 10% off, it will also provide 50% off. Therefore, when signing this supplementary agreement, L’Oreal’s people were very relieved and were not afraid that Meigou.com would pay the discount lower than its own Tmall store.
After reading the agreement, Wang Ye confirmed that his plan was feasible.
"How much in stock is L'Oreal's products in our warehouse?"
"The three brands have about 300 million in total." Xu Jing replied after thinking for a while.
"Replenish the stock as soon as possible! Replenish the inventory... about one billion yuan." Wang Ye said decisively.
"Ah? So many, L'Oreal's products are no longer easy to sell on our website. If you purchase so many, I'm afraid of stock being overstocked." Xu Jing expressed his opinion.
"No, after this batch of goods comes in, we will sell them slowly, because I guess L'Oreal will soon find excuses to stop shipping us!" Wang Ye said with a smile.
"How is it possible? Are they unwilling to make money?" Xu Jing said in surprise with her eyes staring.
Wang Ye did not directly answer her question, but ordered: "After this batch of goods is in the warehouse, all the three brands L'Oreal, Lancome and Helena will be reduced! A total of 60% off!"
"Okay, how long will we do this event last? Is it also a week?"
"No, it's 60% off forever! Sell slowly, until it's sold out..." Wang Ye said meaningfully.
"Sixty percent off?! Permanent!" Xu Jing couldn't understand what Wang Ye meant and why he had to do such a thankless thing.
Meigou.com purchases 50% off, sales 60% off, plus logistics and operating expenses, it will definitely not make money, and may even lose a small amount. What is Wang Ye's purpose in doing this?
Seeing that Xu Jing couldn't understand his intentions for a moment, Wang Ye explained: "Although L'Oreal likes to do activities and promotions, it doesn't do it every day. It is usually on large holidays and is usually sold at the original price. But we have helped it get a permanent 60% off, including their high-end brands Lancome and Helena. What do you think will this result?"
Xu Jing now understood. She stared at Wang Ye in surprise: "Then we and L'Oreal will become mortal enemies. They will never be able to sell their regular products anymore. Even the two high-end brands, Lancome and Helena, will become synonyms for cheap promotional products!"
"Even if we don't do this, won't L'Oreal treat us as mortal enemies? Don't forget that they all went to Tmall to open flagship stores. In the future, they will definitely use the channel of Meigou.com to support their own stores." Wang Ye said with a smile.
Since Wang Ye has made a decision and Xu Jing has no objection, then go and execute it.
When L'Oreal received another large purchase order from Meigou.com, she was quite surprised. Although Meigou.com's sales have declined recently, why did she still have to make large purchases?
But this is a good thing. No matter whether it can be sold or not, the purchase will be settled in cash, give it to it!
Meigo.com successfully obtained this batch of goods. After the products were put into storage, the website officially released a large promotional banner with "L’Oreal, Lancome, Helena brand promotion, permanent 60% off!"!
Wen Boyuan has been paying attention to Meigou.com recently. After meeting and talking with Wang Ye last time, he vaguely felt that Meigou.com will definitely make big moves recently. Judging from Wang Ye’s previous style of doing things, in the face of L’Oreal’s “betrayal” this time, he would never swallow his anger and would definitely have a sharp counterattack.
On this day, when he opened the Meigou.com again, he saw the promotional banner "L’Oreal, Lancome, Helena brand promotion, permanent 60% off!".
Chapter completed!