Chapter 2 This Consumers Can't
Modu Jahwa is a leading enterprise in the domestic Jahwa industry, although the performance has deteriorated in the past two years, but the emaciated camel is bigger than the horse, compared with its peers, the strength is still the largest.
Now where suddenly a company that I haven't heard of suddenly wants to acquire Modu Jahwa!
Soon, the information about Weiye Jiahua was exposed.
Wang Ye, the company's controlling shareholder, is a famous figure, who just topped the list of the richest people in China at the age of 24 years ago! Although he only sat on the throne of the richest man for less than a week, because the company's stock price plummeted, his net worth shrank sharply, and he gave up the title of the richest man. But after all, he was once the richest man, how could he be a simple person.
Such a person, with tens of billions of huge funds, entered the home industry, and just entered the industry to acquire the industry's leading enterprises, the ambition is not small.
For a time, the home chemical industry exclaimed, "The wolf is coming!"
β¦β¦
Modu Jahwa, R&D laboratory, Mu Shiting just walked into her office, ready to start her day's work.
She is a Ph.D. graduate of Tsinghua University majoring in chemical engineering and technology, and she is also a top talent in the chemical industry.
Because I went to school early, I was admitted to Tsinghua University after graduating from high school at the age of 17, and it was an eight-year bachelor's, master's and doctoral program, and I was only 25 years old this year.
Mu Shiting is as her name suggests, a typical Jiangnan girl, smart, smart and intelligent, with excellent skin.
"Shiting, have you heard, our company is about to be acquired!" a female colleague said mysteriously.
"Yes, this is a good thing, look at what the company is like now, and the new products developed in our laboratory have no chance to be introduced to the market. Mu Shiting said lightly.
She is obsessed with R&D work, and has just arrived in the company for more than half a year, and has already developed several serums and creams with quite good effects, but so what, the company does not have the spare financial resources to launch new products now.
Those old products are still piled up in the warehouse, and you want to launch new products? It's too much to think about.
In this regard, Mu Shiting was very sad, but she was helpless, who made her just a small R&D engineer, and she had no right to speak in the company.
"It should have been restructured a long time ago, although Mr. Ge is very good and has made great contributions to the company, but his old ideas are outdated and can't keep up with the changes in the market. Look at the past two years, the company's sales have been getting lower and lower, how can there be any previous glory. Another colleague said.
"I can't say that, our company can achieve the current scale, and Mr. Ge has contributed a lot. In the past two years, it has been because of the large-scale entry into the domestic market by foreign-funded domestic giants, and they are too rich, and we can't fight for the overwhelming advertising. β
Mu Shiting looks at the problem quite objectively and knows why the company is not doing well now. This is not only an internal problem, but also a change in the external environment.
"Hey, I don't know which foreign giant is going to buy us, it can't be Procter & Gamble, I heard that Procter & Gamble's welfare package is very good! Unilever is also good!" The colleague guessed excitedly.
She said that these two are the two foreign-funded Jahwa giants with the largest share in the domestic Jahwa market.
Procter & Gamble and Unilever are both global daily chemical companies with a history of more than 100 years, Procter & Gamble entered the domestic market in 1988, and now can earn more than 39 billion a year in China. However, Unilever was more than 60 years earlier than Procter & Gamble, and in 1923 Unilever opened a company in the magic capital to sell Lux soap, but Unilever earned more than 16 billion yuan in the domestic market a year, of which a considerable part came from the food and beverage sector.
Speaking of Procter & Gamble, we have to mention its cosmetics brand OLAY, that is, Olay. In 1988, Olay entered the domestic market with "giving you youthful skin", and it took less than two years for Olay to become the largest skin care brand in the domestic market.
Basically all shopping malls have Olay cosmetics counters, and the market share is growing at a double-digit rate every year.
However, now it is running out of good days and is facing the challenge of L'OrΓ©al.
Such a Jahwa giant, with an annual global revenue of tens of billions of dollars, is also among the best in the world's top 500 companies, which makes Modu Jahwa how to compete with it.
"It's not foreign-funded, I heard that it's a private enterprise in Pengcheng. "There are colleagues in the know who tell everyone.
"What?!!Private enterprises?!!When did private enterprises become so rich and able to buy old state-owned enterprises like ours?" exclaimed a female colleague.
"Okay, don't bask in the glory of the past, and don't look at the current market value of our company, less than 5 billion! Why can't others afford to buy it, have you read last year's Forbes list, the rich people on it are worth tens of billions. β
"By the way, the company acquired this time is said to have a very rich majority shareholder and a net worth of tens of billions!"
"So rich?! If he buys it, wouldn't we have a better life, and the company will have money to develop new products. Mu Shiting is concerned about whether the products she developed can be successfully launched to the market, and it has little to do with her who becomes the new boss.
The employees of Modu Jiahua talked a lot, and they had no intention of working for a while.
In the conference room of the state-owned assets management department, the three parties to the negotiation are also arguing with each other.
"Wang Dong has the money and the strength to acquire Modu Jahwa. I don't deny that. However, you are a layman after all, do you know what Jahwa is, after being acquired by you, I doubt the future development of the company!" Ge Wei said mercilessly.
The man on the other side is so young, only in his 20s, he is worth tens of billions, and now he wants to buy my magic capital Jiahua! The world is changing so fast that I can't understand it. Ge Wei looked at the high-spirited Wang Ye and felt in a trance.
"Mr. Ge, you are a senior person in the household industry, and when it comes to products, I am naturally inferior to you. However, now the market is different, there are too many products on the market competing in the same field, and what is needed is not only good products, but also marketing methods. How to lead a domestic brand out of the encirclement, can you do it? Or is there any good way?" Wang Ye said with a smile.
This time it poked Ge Wei's sore spot, his face turned red, and his breath became thicker.
Director Wang next to him saw that the situation was not right, and hurriedly said: "Mr. Ge is also a person who has made great contributions to the Demon Capital Jiahua, and it is normal to raise his worries. However, the market competition is too fierce now, and the introduction of strong capital can better develop the enterprise. β
For Ge Wei, Wang Ye still maintains a certain respect, this person is definitely a good hand at making products. Liushen Flower Water was developed and introduced to the market by him. This product has been used by basically every family, and it is definitely known to everyone.
But perhaps because they are older, they are not sensitive enough to the market, and they can't keep up with the changes of the times, and their marketing methods are stiff and aging.
The magic capital is homely, it can be said that Ge Wei is successful, and Ge Wei is defeated!
"Mr. Ge, I didn't buy Modu Jahwa just to make money, because if it's just to make money, there are more and better choices, you don't deny this. Wang Ye said sincerely to Ge Wei. If you want to make a smooth acquisition, you still have to convince this stubborn old man, not to mention that after the acquisition, it is inseparable from his continued management.
Wang Ye is right, the Jahwa industry, or the cosmetics industry, at least for now, belongs to the Red Sea market. In the face of the encirclement and suppression of the world's top 500 foreign giants, domestic manufacturers basically have no power to fight back, and if they want to make money, no one will enter at this time.
Ge Wei nodded in agreement. He then asked: "Then what is Wang Dong for? Is it for feelings, or does he want to revive the domestic cosmetics brand by yourself?"
This is a bit ironic, Wang Ye didn't care, but nodded and said: "Whether Mr. Ge believes it or not, I really have a certain amount of feelings in this acquisition." Take the products of Modu Jiahua as an example, Mejiajing, Liushen, Herborist, these are all products I used when I was a child. And it's very easy to use. So I'm thinking, why now, no one will buy these useful products, everyone will buy those flashy foreign cosmetics, there must be something wrong with this!"
Ge Wei's attention was also attracted by Wang Ye's words, and he asked, "What's wrong?"
This is also the question he has been thinking about, yes, why don't people want to buy products that are obviously very easy to use.
Ge Wei dares to guarantee that the products with the same retail price, their Modu Jiahua products are definitely better than those products of foreign brands, and the cost is much higher!
However, it seems that all of a sudden, the company's old brands, Megazine and Herborist, have become unpopular.
"Because of the aging of the brand!, or the aging of the brand image!" Wang Ye said the answer to the question.
Times are changing, and so is the composition of the consumer base. The former main consumer group has now become the elderly, and the desire to consume has decreased, and the consumption power has also decreased significantly.
The new main consumer group has grown up watching the advertisements of those foreign brands, and in their impression, of course, those Olay and L'Oreal are more fashionable and easier to use.
If a young person still uses megazin, he will be embarrassed to say it, because he will be laughed at!
As a result, Mega Herborist became an old brand, a symbol of cheapness, and no one cared about it.
Ge Wei was touched a lot when he heard this, he has been looking for reasons from himself, from the product, but he has never thought of finding reasons from consumer groups.
This is really in response to that sentence, it's not that my products are not good, but this year's consumers are not good......
However, can Wang Ye change the aging image of the Modu Jahwa brand, why does he dare to say such big things, Ge Wei asked his doubts.