Chapter 353: Who Blinks First
"How did you get this trip to Jingnan?"
Zhou Heng received Tang Zifeng in his large living room, and after sitting down and greeting him, he turned to the topic.
After Zhou Heng retired, at the request of Xie Tiancheng and Tang Zifeng, he retained the position of chairman of the original "Canglong Machine Tool Collaboration Unit Joint Conference" and did something equivalent to the industry association. Because the title of chairman is too sensitive, people in the industry generally call him President Zhou.
Of course, if it is a person who is in the first machine or Teng machine, most of the time he will call him his original title, that is, Director Zhou, which sounds more powerful than the president.
In the past few years, Tang Zifeng and Zhou Heng have moved around very frequently, and they usually meet to talk about work. The age difference between the two is 30 years, their life experiences and personalities are completely different, and they are both men, so it is strange to get together and not talk about work. If Tang Zifeng went to visit Liu Yanping, he could talk about Fengyue, which was another matter.
This time, Tang Zifeng went to Jingnan, and he had discussed with Zhou Heng in advance, and he could even be regarded as running errands for Zhou Heng. Zhou Heng and the old leaders behind him, such as Xie Tiancheng and Xu Zhaojian, are all industry leaders, and they are not confined to a single enterprise when thinking about problems, but focusing on the overall situation.
In the past two years, the domestic machine tool market demand has increased sharply, and the machine tool industry has ushered in a period of rapid development, which makes everyone very happy. However, the vicious competition that followed made the old leaders worried. Machine tools are not as good as other products, which require continuous investment in scientific research. If everyone blindly fights the price war and pushes the profits to the limit, what will be affected is the funds that can be used for research and development and the investment in upgrading and transforming production equipment.
It is precisely because of this that several veteran leaders have called on various occasions for the establishment of a good order of competition, and criticized and ordered corrections to the "individual" enterprises that provoke vicious competition. Tang Zifeng went to Jingnan this time, and it was at the request of several leaders to settle those private small and medium-sized machine tool enterprises in Jingnan. This matter also has some benefits for Linji Group, but more benefits are for the overall industry.
Zhou Heng and others are most satisfied with Tang Zifeng, because this young man has a sense of the overall situation, although he is the general manager of Linji Group, he is not limited to considering his own one-third of an acre, which is already very commendable in today's state-owned enterprise leaders.
"The overall situation is not bad. Everyone also hated the vicious competition in the previous stage, but no one came forward to regulate it. I went to talk to the heads of some enterprises, and they all promised to quickly organize local trade associations, regulate everyone's competitive behavior, supervise each other, and maintain normal market order. Tang Zifeng said.
Then, he made a report to Zhou Heng on the situation of the negotiations with various enterprises in Heling, Ruigang, Yuyuan and other places, and added his own judgment in some places. Zhou Heng is also an old man who has been in the industry for decades, and he understands these things as soon as he hears them, nodding his head incessantly, and sometimes inserting a few comments to remind Tang Zifeng that he needs to pay attention to some problems in the future.
"On the side of small and medium-sized enterprises, the problem is not too big. When I visited, everyone's biggest opinion was that some of our large machine tool companies maliciously lowered prices in sales. Everyone mentioned the most, is Xia Yiji, their production of lathes from the year before, the price of six times in a row, now than those small and medium-sized enterprises lathe price is two or three percent higher, so that those small and medium-sized enterprises if not reduce the price can not find a buyer. Tang Zifeng finally said.
"I was about to tell you about it. Xia Yiji is really a hard bone. Zhou Heng said with a gloomy face.
The full name of Xia Yi Machine Tool Co., Ltd. is Xia Yi Machine Tool Co., Ltd., and the original name is Xia Liang No. 1 Machine Tool Factory. Xia Yiji is located in Beidian Province, and it is also one of the 18 Arhat factories under the Second Bureau of the Ministry of Machinery, and its main products are all kinds of lathes. When Tang Zifeng established Ji 20, Xia Yiji also participated and was one of the member companies of Ji 20.
At the end of the 90s, in the tide of state institutional reform, Xia Yiji was transferred to Xialiang City, and the next year it was acquired by a private enterprise called Jinsheng Group and became a wholly-owned subsidiary of Jinsheng Group.
Jinsheng Group is an enterprise in Jingnan Province, the earliest started as a hardware tool, the founder is named Gao Jinming, is a farmer in Ruigang City, Jingnan Province. At the end of the 80s, Gao Jinming's only son, Gao Jinsheng, graduated from university and returned home to inherit the family business. He changed his father's cautious style, boldly competed with his peers, did not hesitate to lose money and make money, and snatched countless orders from his peers.
The hardware processing business is very particular about the advantages of large-scale production. If there are more orders, the production cost can be greatly reduced, and although Gao Jinsheng's quotation is low, the company still has profits. But the peer companies that were robbed of orders by him could no longer survive, and either went bankrupt or changed careers, and all withdrew from the market in disgrace.
When the peers retreated, Jinsheng Group became a monopoly supplier of certain types of products, and Gao Jinsheng slowly raised the price under various names to obtain high returns.
Gao Jinsheng's hand is not mysterious, the main thing is to have the courage to fight with peers. Gao Jinsheng launched the game of "who blinks first" again and again, and each time he is the ultimate winner. In just a few years, Jinsheng Group has become one of the largest enterprises in Ruigang, and the name of Gao Jinsheng has also achieved the effect of stopping children's night crying in the industrial community of Ruigang.
After achieving initial success, Gao Jinsheng extended his hand to the real estate industry. With the wealth accumulated in the manufacturing industry, coupled with his courage and courage to gamble, he also did well in the real estate circle, and his fame soon rushed out of Ruigang, went to Jingnan, and then the next step was to go to the whole country.
The acquisition of Xia Liang No. 1 Machine Tool Factory is an important step for Gao Jinsheng to prepare to go to the whole country. Gao Jinsheng is a university, the vision is very high, he sees that the machine tool industry will have a great development in the future, and at that time Xia Yiji had just been delegated to Xia Liang City, the business situation was not good, Xia Liang City planned to sell with tears, it was the right time to pick up the leak. So he resolutely took action and won this large-scale machine tool factory with a history of more than 80 years at a purchase price of tens of millions.
After acquiring Xia Yiji, Gao Jinsheng injected a sum of money into Xia Yiji to restore its vitality. Subsequently, he repeated the old trick and ordered the sales department of Xia Yiji to greatly reduce the price of several lathes, and launched a price war with domestic counterparts.
The main competitors of Xia Yiji are actually several other large enterprises that produce lathes in China, such as Jingbei Machine Tool Factory in Ningxiang and Qianyan First Machine Tool Factory in Rubei, which are also the eighteen Arhat factories of the year and today's machine 20 member enterprises, which are the brother enterprises of Xia Yiji.
The lathe products of several machine tool factories have their own merits, and the price also maintains a tacit understanding, and the difference between them will not be too big. Machine tools do not belong to the price of very sensitive products, under normal circumstances, the price difference is within one percent, the user will not choose a bargain, but will be based on their own habits, adaptability with other equipment, convenience of after-sales service and other factors, choose the most suitable manufacturer.
Xia Yiji greatly reduced the price of lathes and widened the price gap between itself and other peers to more than two percent, which broke the original tacit understanding. Even if the user doesn't care about the price, he has to weigh this matter.
For example, the price of a lathe of the machine is 150,000 yuan, which is completely acceptable for users. But Xia Yiji suddenly said that the lathe with similar performance he produced was sold for only 100,000 yuan, and the user could have no idea? They may not care about spending 50,000 yuan more, but since people can sell 100,000 yuan, but you say that you want to sell 150,000 yuan, is there an element of fraud in this?
The buyer's mentality is like this, it doesn't matter how much money you spend, but if you are deceived and spend money that you shouldn't spend, you will not be reconciled.
As for those small and medium-sized machine tool enterprises, the original product grade is different from Xia Yiji, and it is not at the same level of competition. But the price of Xia Yiji's products has dropped so low, even higher than the product prices of these small and medium-sized machine tool enterprises, which threatens the survival of small and medium-sized enterprises.
In the face of the price war of Xia Yiji, the first reaction of enterprises such as Qianji and Qianyi was to call the sales department of Xia Yiji and ask them if their brains were in water and how they could reduce the price to this extent. When they heard that the other party did not quote the wrong price, but deliberately, these companies brought the lawsuit to Ji 20 and asked a joint meeting to coordinate the matter.
Before the reform of state institutions, victims of malicious competition in such a situation can complain to the Second Bureau, and the Second Bureau is indeed responsible for supervising and managing such behavior. But now even the Ministry of Machinery has been abolished, and only a mechanical and electrical industry bureau under the Economic and Trade Commission remains, and its work responsibilities clearly state that it is only responsible for industry development planning, and does not have the function of industry management. If these companies want to file a lawsuit, they can't find the yamen, so they can only hope for an unofficial cooperative organization like Ji 20.
Zhou Heng is the president of Ji 20, Tang Zifeng is the secretary general, and when they received complaints from member companies, neither of them could afford to ignore them, and successively called the person in charge of Xia Yiji to coordinate the matter.
The person in charge of Xia Yi Machine is named Shao Weiyuan, who is the former director of Xia Liang No. 1 Machine Tool Factory, and his current title is the general manager of Jinsheng Xia Yi Machine Tool Company. Shao Weiyuan, Zhou Heng and Tang Zifeng all knew each other, and they also had some personal relations with Zhou Heng.
After receiving a call from the two, Shao Weiyuan sighed, saying that he was actually a puppet now, and Xia Yiji's major business decisions were all made by Gao Jinsheng. The price reduction was a decision made by Gao Jinsheng, and the executives in the company either did not dare to question it because of the idea of sycophancy, or because they wanted to protect themselves.
Of course, they also know that it is useless for executives to question whatever Gao Jinsheng decides, and Gao Jinsheng has never been a person who is willing to listen to other people's opinions.
If the telephone coordination fails, we can only meet and negotiate. At the same time that Tang Zifeng went to Jingnan to coordinate small and medium-sized machine tool enterprises, Zhou Heng also went to Beidian and met Gao Jinsheng, who was commanding a new round of price war in Xia Yiji.