Xu Zhi said: "At present, the country is indeed the world of black and white TVs and small color TVs, but we will not participate and cannot participate, the above will not give us such an opportunity, our purpose is to grab the high-end market from the hands of foreign giants, not to grab the market that so many state-owned enterprises have occupied, if you really do this, the profit is not much, but it will offend a bunch of people." ”

In fact, in order to protect foreign exchange, the state is reluctant to open even a little domestic market to foreign countries, after all, importing Western products requires the state to spend its own dollars in foreign exchange. The electrical industry is not a means of production, nor is it an industry needed for national strategic development.

However, international trade has always come and gone, and the rapid economic development of the interior in recent years is precisely because the Western countries led by the United States and Japan have opened their markets to a large extent, allowing the inland textiles, clothing, food, furniture, ceramics, and so on to export a large amount of foreign exchange. Iron and steel chemical production lines, etc., but the procurement of these industries can only benefit a few companies, not the entire Western market, so under diplomatic pressure, it has become necessary to open the mainland market appropriately.

However, the opening of the market does not mean that you must buy Western products, this is a game of fair competition, just like the Japanese auto industry, desperately exporting to the United States, but at the same time opening its own market to the American auto industry, but you American cars just can't be sold in Japan, for this kind of outcome, the U.S. auto industry can only keep complaining, but there is no reason to persuade the U.S. government to restrict Japanese cars, at most on the grounds of increasing employment, forcing Japanese car companies to invest in the United States.

In the same way, it is the same in the mainland, if the domestic enterprises can beat Western products openly, then the Western countries have nothing to say.

For the electrical industry, the central top management is not worried about the bottom end of the product, because most of the domestic state-owned enterprises can produce their own, although the quality may not be as good as the imports, but the price is much cheaper. The only thing to worry about is the mid-to-high-end products, because families who can buy mid-to-high-end electrical appliances, many will not care about money, plus the current atmosphere of the domestic market, imported products are too popular.

And among all electrical appliances,TV is the largest selling product,At present, countless people in China regard having a TV as the goal of their life,Once the import market is opened,No one knows how many people will buy imported color TVs。

"I'm also more optimistic about the current domestic market, but it shouldn't be enough for us to significantly increase production!" Huo Jianning asked.

"Of course, it is impossible to rely on the domestic market alone, but you should not underestimate the current domestic market too much. Xu Zhi smiled and said: "In the past, you were only responsible for production, and the orders were all in charge of the Xiangjiang headquarters, but now you will soon enter the mainland market, and you will have to pay more attention to some official data released in China, not only the electrical industry, but also the data of other industries can also feedback the development of the domestic economy." ”

It is difficult to know how many wealthy people are in China? This data is difficult to know, but some industry data is enough to guess an approximate idea, if the annual import of tens of thousands of cars can be said to be an official need, then the air conditioning installation data is enough to judge the number of private wealthy families in China.

In the statistics of 1985, the number of households installing air conditioning in the whole country was 80,000 units, the price of air conditioning was very high at that time, far more than color TV, and the official reason why we can know the detailed data is because in the 80s, the domestic electricity was in short supply, and air conditioning was extremely power-consuming at that time (the house insulation was not good at that time), in order to limit the use of air conditioning, the state introduced an air conditioning tax, in addition to foreign-related hotels, State-owned enterprises, government departments, and any other private household need to pay a fee to install air conditioners, which is almost 2,000-3,000 yuan.

In the era when the per capita salary in big cities is less than 100 yuan, the cost of installing an air conditioner is at least more than 5,000 yuan, but even so, the official statistics of the installation of air conditioners are as high as 80,000 households, not counting some places that are secretly installed and the policy has not been transmitted.

Similarly, the sales volume of tens of thousands of personal computers in the mainland is as high as 10,000 units, and the number of other smuggled computers is even more difficult to count.

This is also where the country's top brass is concerned, although the country's wealthy families have money, but only in renminbi, once they buy a large number of imported electrical appliances, it will also consume the central government's overstretched foreign exchange reserves, which could have bought a large number of strategic materials of production and high-end technology products.

In the original history, in 1985, the mainland imported a total of US$993.9 million televisions, a total of 5.09 million units, while in 84 years, this figure was only US$254.92 million.

Compared with other materials, in 85 years, the import of cars was 470 million US dollars, the import of trucks was 980 million US dollars, the import of medical equipment was 210 million US dollars, the import of industrial machine tools was 137 million US dollars, the import of ships was 550 million US dollars, and the import of pharmaceuticals was 96 million US dollars.

Throughout the year, only the import value of soda ash, chemical fertilizers, steel, and complete sets of equipment for enterprises (purchased by national key projects) exceeded the import value of televisions, and the first four are necessities for national strategic development, but televisions are only enjoyment goods, which is a big waste.

What's more, the official data is only the number of regular channels, and some other channels have entered the TV set more, because in 85 years, the data provided by the Japanese official showed that a total of 6.48 million TV sets were exported to the mainland, 820,000 units in Xiangjiang, 210,000 units in Singapore, and 210,000 units in Spain, and the data of other countries are ominous. In other words, the smuggling of data captured by the exporting country may not be less than 3 million, plus there are some importing and exporting countries that do not know, no one knows how many.

A single television set has caused a loss of at least $1.5 billion to $2 billion in foreign exchange for the country, and if these foreign exchange are used to buy imported medicine and medical equipment, how many lives can be saved?

This is also the reason why Xu Zhi was notified of this policy in advance, and the country also intends to support Midea's company, not because its boss is a Chinese, but because Midea's factory is in China, and Midea is cheap and the fertilizer does not flow into the fields of outsiders, at least it can keep most of the foreign exchange.

"I will pay attention to this information in the future. Huo Jianning said: "However, we also have a joint venture factory in Shanghai, and they have direct access to domestic sales, and I think the central government may ask us to expand the scale of that factory." ”

The Midea factory in Shanghai is a joint venture factory, half of the products go to the mainland, half of the export, forming a foreign exchange balance, but the scale is not large, the annual output of color TVs is about 500,000 units, less than a fraction of the Shenhai City.

"It's also possible that this is actually the process of negotiation in the future, of course Shanghai City wants us to expand the scale of their side, and Shenhai City may not be willing to let go, and we also have a certain right to speak in this regard, how to go to the capital to talk about it." Xu Zhi paused, and then said: "The reason why I let you continue to expand production capacity is that I am ready to fight a price war!"

"Price war!" Huo Jianning was a little surprised.

Xu Zhi said: "Yes, you have been in the mainland for the past few years, and you don't know the company's development overseas.

Now they have also reached out to the United States, intending to let the U.S. government come forward against us, but fortunately, I also have some partners in the United States, and the U.S. government doesn't want Japanese products to invade the U.S. too much, so they ignore it. ”

Huo Jianning understood: "So we have to fight back in their main market?"

"Yes, don't hurt them, these people never know how to stop, you are ready, this price war may last for ten years, and not only in the United States, I am ready to bloom globally and fight at the same time. Xu Zhi said calmly.

Does the electronics base in Deep Sea City make money?

The answer is very profitable.

10 million exported color TVs, each with a net profit of almost 20-30 US dollars, a net profit of 2-300 million US dollars a year, within the entire Midea Group, the proportion is not small.

But this is only now, in the future, the field of personal computers will grow explosively, even if the achievements in hardware are difficult to control, but in terms of software, Word, Excel, PPT and other software have almost monopolized the entire market, and registered extremely strict patent barriers, latecomers are almost impossible to keep up, at the same time, the current Midea software department is still studying some future products, such as industrial three-dimensional software, ERP management system, image processing software and so on......

Not to mention that he owns 20% of Microsoft's shares, even if Microsoft goes public in the future and the stock is diluted, by the 90s, the market value will be at least $10 billion.

And the field of games, in the 90s, was also the hottest moment, if not comparable to computer software, it will be much stronger than home appliances.

From the beginning to the end, the main purpose of entering the field of household appliances is not to make money, from the huge purchase of raw materials - production control jobs - logistics and transportation - the number of jobs in the terminal market, these are just to increase their influence.

Since in order to increase its influence, of course, it must expand its own market, and in this mature market, unless there is a historic technological breakthrough such as the replacement of feature phones by smartphones, the only way to choose is to fight the price war, and at the same time, you can severely crack down on your competitors.

Once the price war starts, it is difficult for any competitor to use official power to stop it, because it is to benefit the people, and at the same time increase the flow of capital and taxes, and no official will forcibly intervene in this kind of thing.

As long as you can occupy enough markets, and at the same time you can hit your opponents, forcing some opponents to withdraw from the industry, after staying up to the LCD era, the income will be several times the return.

As for the LCD era, will the huge industrial base of Shenhai City or other cities lose money?

Normally?

Yes!

However, in cities like Shanghai or Shenhai in the mainland, such a large area of land is estimated to be able to make up for the losses of more than ten years of price wars......

"I see, but I heard that the price of the chip industry has plummeted recently, and their life is not easy. Huo Jianning said with a smile that there are also many chips in the household appliances used in Shenhai City, and he is very aware of the fluctuations in prices in the international market.

"That's right, I like to do the thing that falls into the well. Xu Zhihaha said with a smile, because too many electronics companies have entered the field of chip manufacturing before, even if the vigorous development of the personal computer market cannot eat so much chip production capacity, so, after 84 years, global chip prices plummeted.

It was at this time that Samsung Group, in order to occupy the market, began a counter-cyclical price war, relying on the blood transfusion of the South Korean government, and the Japanese electronics counterparts cried wolf and withdrew from the field of memory chip manufacturing.

With Samsung making waves in the memory chip market, Midea can also start from the field of electrical appliances at the same time, with the current cost advantage of tax exemption + low labor in Shenhai City, even if it maintains zero profits, it can also make other electrical companies want to die.

TV is a mature technology product,Whether it is Japan、The United States or the mainland,As long as the scrap rate is well controlled, the scrap rate will not be very high,This is completely different from liquid crystal and chips,The reason why Japan's electronic technology is so developed,Because the scrap rate is controlled very low。

But in the field of household appliances, the most important thing is cost, which is also the reason why Samsung can rise in the low-end TV market, and South Korea's labor is much lower than Japan's.

Even if the Japanese counterparts find that the cost is lower in the mainland in the future, it will be very difficult to transfer all the factories to the mainland.

Xu Zhi continued: "With the current market share of Midea, under normal circumstances, your factory production capacity in Shenhai City is enough, but as soon as the price war starts, you must provide enough supply, otherwise it will become a joke. ”

"I understand, I will immediately place an order with the equipment supplier, as soon as the new factory site is decided, there should be no need to worry about the efficiency of the mainland government, so that the new assembly plant can be built next summer, but the color picture tube factory may take longer, but in the early stage we can replenish the picture tube through international procurement." Huo Jianning made a guarantee, after all, the home appliance industry is only a light industry, as long as the funds are sufficient, the production base can be built soon, at least the assembly workshop is very simple.

Xu Zhi asked: "The suppliers of the production equipment are all foreign companies, right?"

"Yes, although there are companies in China that can produce color TV production lines, neither technology nor scale can meet our requirements. Huo Jianning replied.

"That's just as well. Xu Zhi frowned, at present, even the production lines of his own state-owned enterprises need to be purchased, let alone to undertake the production lines of Midea.

"Is the chairman worried that those Japanese companies will find problems from our procurement data?" Huo Jianning saw the problem.

"Yes, if they know about this kind of thing in advance and prepare for it, even if the price war will hit them, their losses will be reduced a lot. Xu Zhi also has a headache, even the current production capacity of Shenhai City, it is impossible to hide it, and it is better to build infrastructure, after all, in the mainland, Japanese electrical companies may not be able to know if they do not pay attention, but the large-scale procurement of production lines from overseas markets, basically all peers know.

Huo Jianning thought for a while and said: "I think we can find a factory from Europe to build a production line, the business of the Japanese in Europe is not developed, as long as we control the good news, it is estimated that the Japanese side will only know when the production line arrives in China, and even if they know about it, it will be too late, but in this case, the cost will increase." ”

"It doesn't matter, it doesn't matter if the cost is a little higher, it doesn't matter if it's more than 10%, just do it. Xu Zhi nodded and agreed, under normal circumstances, the production line of hundreds of millions of dollars will definitely be tendered, which is the best way to reduce costs.

Huo Jianning said: "Okay, then I will send a few teams to Europe tomorrow." ”

"Okay, then be it, it's going to rain, I'll go back to the hotel first. Xu Zhi stood up.

Huo Jianning also stood up and said, "Then the chairman, I'll send you!"