Chapter 97 The Crisis under Prosperity (Fourth update, Second update)

Jiang Zhen was immersed in the pleasure of making Sony, Panasonic and Aihua defeated, but Lin Zheng maintained a rare calmness, "Don't be too happy too early. Use high-end machines to impact the Japanese low-end machines. Now we are attacking Sony, Panasonic and Aihua are caught off guard. They have not reacted yet, but do you think they will turn a blind eye to this situation? Look, at most, Sony, Panasonic and Aihua will take targeted measures in the middle of this month... Even if it is not the countermeasures made by their Japanese headquarters, it will be the decision made by their general agent in China. That is the time to really test us. Lao Jiang, tell everyone to cheer up and the next is the time to really test our adaptability. Japan is likely to make a secret move."

Jiang Zhen suddenly felt shocked! Only then did he realize that he was too optimistic about the situation facing the company.

That's right, Lisheng Electronics seems to have become quite well-known in China, but Lisheng Electronics is just a brand that has just appeared on the market for more than a month. It has initially established a distribution network in 18 provinces, which sounds quite exciting. However, Lisheng Electronics is actually similar to the castle on the beach. Although it looks magnificent, it actually has no foundation at all. Even a small wave hits it, it may turn this seemingly majestic castle into a loose sand again.

The next time is the time when Lisheng Electronics is truly testing. Faced with the counterattacks and various suppressions from competitors, how can Lisheng Electronics gain a foothold in this situation and turn this castle on the beach into a real castle?

This is the most important test facing Lisheng Electronics next.

"Boss, do you think the Japanese may use any tricks?" Jiang Zhen asked cautiously, no longer having the smugness he had just now.

"Many of our dealers are also selling Sony, Panasonic and Aihua machines at the same time, right?" Lin Zheng asked.

"That's right." Jiang Zhen nodded. Lisheng Walkman itself is positioned as a domestic high-end walkman. It has a overlapping range with Japanese Walkman in terms of market positioning. The profit level is much higher than that of domestic Walkman. The net profit of each machine is even comparable to that of Japanese Walkman with a scale of 1,000 yuan.

This may sound absurd, but it is true that the dealer's profit is less than 100 yuan for a Japanese mid-range walkman, and most of the profits are taken away by manufacturers and agents. The dealer's profits are pitifully low. However, after simplifying the supply and marketing links, Lisheng Electronics has removed the two intermediate links, which is enough to ensure that this 499 yuan machine also has a profit of nearly 100 yuan.

Considering that one is a product with a price of tens of millions, while the price of Lisheng Walkman is only 499 yuan, and the base of potential purchasers has expanded several times, the overall absolute profit of selling Lisheng Walkman is greater than that of Japanese Walkman. But this is why Jiang Zhen is a little surprised. What tricks can the Japanese take?

"The Japanese can actually do a lot of tricks. For example, they can force the dealers who sell our Walkman and Japanese Walkman to stop selling our Walkman. If they disagree, they will not supply these dealers."

"Impossible?" Jiang Zhen did not expect Lin Zheng to say this at all. He was stunned for a moment, "If you can't supply the dealer to threaten the dealer, this idea... is really... bad."

He could not understand why his boss thought that the Japanese would do this. If the Japanese really did this, wouldn’t that be true for Lisheng Electronics?

"You are wrong to think so," Lin Zheng shook his head, his expression also became serious. "Don't forget, we only have this kind of walkman now, and the lack of rich product line is our biggest weakness."

"The three major Japanese Walkman brands can provide cassette-type walkman and CD Walkman, ranging from low-end models worth more than 400 yuan to high-end luxury models worth 4,000 yuan. For companies that distribute our Walkman and Japanese Walkman at the same time, this accounts for almost 80% of the types of operations in their stores... Think about it, if Sony, Panasonic, and Aihua's general agents were so tough that they would not allow them to distribute our products, after weighing the trade-offs, what do you think would choose those dealers?"

Jiang Zhen stopped talking and his face became solemn. The boss was right. Once the Japanese really made up their minds to use this method to threaten those dealers, the dealers who insisted on selling Lisheng Walkman would be very likely to face the dilemma of no products to sell, which is almost unimaginable for those dealers. At that time, those dealers would probably rather give up the agency deposit under the pressure of Japanese product agents and would have to bow to Japanese brands. There is no way, everyone always has to eat.

"This is just the first point, and the second point is everyone's understanding of our Lisheng Walkman. Although our Walkman is the most expensive among domestic Walkmans, we still dare to set a national unified selling price of 499? Is our product quality not good? No, it is because our brand awareness and brand premium ability are insufficient. The market still believes that Lisheng Walkman is just a product that can compete with Japanese mid-range products in terms of quality, and its price can only compete with Japanese low-end products;"

"What is the impression that Japanese Walkman gives people? High-end! A dealer without a Japanese Walkman brand is useless even if the boss blows his store up, and you don't even have a Japanese imported Walkman. Why do you say that your store is high-end? After all, it is possible to sell Japanese brands, especially high-end models in Japanese Walkman. Although it may not make much money, it largely represents the store's status in the city where it is located. This is an intangible asset, but in many cases, this reputation can be exchanged for a lot of money."

The sweat on Jiang Zhen's forehead was already dripping.

He had to admit that the boss was right. Not only was the biggest flaw in the lack of rich product line of Lisheng Electronics, but the brand image was also a big problem. If the Japanese really used this method to force Lisheng Electronics, I'm afraid that Lisheng Electronics' market share would be only crushed, and there would not even be a basic power to fight back... Unless they depreciate themselves and enter the low-end domestic market below 200 yuan, what brand image could they have at that time?

"Boss, what should we do?" At this moment, sweat flowed through Jiang Zhen's face.

After the boss's analysis, he had no doubt that the Japanese would really do this.
Chapter completed!