Chapter 363: They coaxed
"Chairman, Wang Wang's war of words with us has ceased, I think it's strange, they shouldn't just give up. Zhong Kailu frowned, there was no reason for this.
Wangwang's sales channels are not as good as Manhan food, and the brand effect is not as good as good taste, if this time should not fight, then it won't be long before good taste will become the boss of the snow cake market, and then Wang Wang will not lose a lot of profits?
Isn't Wang Wang planning to go public, so he is not afraid that the statement will be too ugly and the fundraising will fail at that time?
After listing, no one cares, and the stock price falls at the opening is not nothing, they all believe too much that the stock market will skyrocket, thinking why the stock market can be sought after, but ignoring that everyone only pursues those large companies with good benefits.
The stock price of small companies has soared, not because of the pursuit of stockholders, but by the rise of big dealers. Some small companies really have very low assets, and they can be completely operated with tens of millions.
Wang Wang is not a small company, but it is not a big company either, and if the newly developed mainland market does not perform well, the road to listing will definitely slow down, and then development will also be hindered.
Wang Haoan tapped the table with his right finger and supported his chin with his left hand: "How much liquidity does Wang Wang's company have, have you investigated?"
"I have investigated, very wealthy, there are tens of millions of working capital in the account, but they seem to be preparing to invest in the construction of a second factory, and their product profit margin is not particularly high, I heard that the treasure island is always pumping funds, in order to ensure that the head office report is good. ”
"Tens of millions, and to build a second factory in the mainland, I understand, they can't afford to burn money. ”
Wang Haoan suddenly realized. Although there is a lot of working capital of tens of millions, if you continue to work against Manhan Food and continue to burn money, then the construction of the second factory will have financial problems.
Investing 10 million in advertising may only bring back an extra 5 million in profits, which is a loss. Although the popularity has increased, it can only make them more status in the minds of consumers, and cannot hide the fact that they have lost.
The purpose of raising awareness is not to increase profits.
"But no, they still have tens of millions. Investing in a new factory will not be needed for 20 million, and it will be no problem to spend another 10 million to do a propaganda war with us. ”
"That's right, they can come up with 10 million to publicize, but have you forgotten, their dealers also demand the same treatment as our dealers, which means that Wangwang's profit margin has declined. ”
"In the past, it may have been possible to invest 10 million in advertising, which can bring 20 million in profits, but now, it may not be possible to return the cost. And with their current advertising volume, they can already ensure the sales of their products, not to mention that because they have not yet invested in a second factory, their production capacity is not as good as ours. ”
Manhan Food now has 12 factories in China, and every time a new product is launched, all factories are on the relevant production lines, and only one product is an exception, that is, spicy strips, and there are only six production lines for spicy strips.
But it doesn't matter, even if they send spicy strips to those dealers, they still have a high profit, but the sales of this product are not good enough, at least compared to other products, the performance is average.
However, in the Sichuan-Shu and Lianghu areas, the sales volume is very gratifying, and people there can eat spicy.
Wang Wang has only one factory, even if the factory is larger, but logistics and transportation restrict his development. Now Wang Wang wants to learn Manchu and Han food, give dealers logistics and transportation subsidies, and the profit margin is seriously declining.
Zhong Kailu thought about it carefully and finally understood that Wang Wang didn't really can't afford to fight an advertising war, but he was afraid that once he fell into an advertising war, Manhan Food would launch a price war again.
Now everyone's profits are not low, but obviously the profit margin of Manhan Food is higher. Once the advertising war cannot be decided, Manhan Food can immediately launch a price war, and at the same time let Lehaha also participate in it, so that all of Wangwang's products are forced to reduce prices across the board.
Both Manhan Food and Lehaha only need to come up with one product to reduce the price, and Wang Wang needs two products. In other words, Wang Wang's loss is much greater than that of Manhan Food and Lehaha.
For example, AD calcium milk, the net profit is three cents a bottle, in fact, the production cost of this is less than one dollar, and the rest is transportation costs, advertising costs and distribution costs.
Even if the price of this product is reduced to a piece of five, Lehaha and the dealer can still make a profit, but both sides make less money, but the price of Wangwang's milk is reduced to a piece of five, I am afraid that some dealers will not do it immediately, because they feel that they can't make it.
Manhan Food and Lehaha will give dealers enough profits on other goods, whether it is AD calcium milk or snow cakes, but they are all sold by the way, and those dealers will not refuse.
Wang Wang is not good, if the price of their products is reduced across the board, coupled with the rise in other costs, I am afraid that this year's profits will be reduced to an unbearable level, so let alone prepare for listing next year, I am afraid that it is to pull investment, and the other party will put forward more stringent conditions.
The price war is the hidden killer feature of Manhan Food and Lehaha, and the advertising war is just a warm-up. Wang Wang didn't dare to provoke Manchu and Han food and Lehaha, so he could only choose to calm things down, develop slowly, and make money in a low-key manner.
Wang Haoan smiled: "I figured it out, our biggest advantage is that our capital is stronger than Wangwang." However, if we really compete too much with Wangwang, we will also suffer, and the gains outweigh the losses. ”
"But among our shareholders are Guo Jijie, the son of the billionaire Guo Bingxiong, and I also have other assets such as Anjie Company. ”
Of course, Wang Haoan didn't plan to really lose both, so Manhan Food could become the boss of snow cakes, and Lehaha could also become the boss of children's yogurt, but the profit was reduced too much.
The fundamental purpose of competition is to make money, so that everyone has no money to make, and the gains outweigh the losses.
At that time, once those upstream dairy companies exert their strength, Lehaha they will all suffer, after all, milk, a raw material, is only in the hands of a few companies, such as Yili, Guangming or something.
But at this time, Manhan Food and Lehaha can't take the initiative to admit defeat, they are partners and have common interests, one party retreats, and the other party will take advantage of the victory to pursue, and they only need to pay half of the funds at this time to force Wang Wang to take the initiative to retreat.
Not only Wangwang, but also Lebaishi's investment in dairy products has not increased much because it has focused more on health care products.
In addition, Lehaha deliberately did not vigorously expand the market in southern Guangdong, and Lebaishi did not attack the northern market much, and still only focused on a few major regions, such as the capital and the magic capital.
"Okay, the notice goes down, the R&D department should diverge in thinking, isn't it the client who has purchased a lot of best-selling foods from abroad, and study them well, which ones we can produce and have a market, even if we don't do it ourselves, we can also sell it to other companies, I heard that Lehaha also wants to try to make snacks. ”
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