726 Price Reduction Turmoil
"Lao Zhu, how long will it take for our new model to be brought to the market? If this continues, the market share that we have obtained with great difficulty will be lost, and it is estimated that it will be difficult to snatch it back from Jiuyi Heavy Industry...... "The year is approaching, and Liu Cheng, the boss of a machine in the capital who has just obtained a large number of orders from foreign customers, is not happy at all.
A week ago, Jiuyi Heavy Industry once again announced that the price of all three-axis vertical machining centers was reduced by 10%, which means that the price of each equipment was at least more than 30,000, so that their machining center and other domestic equipment prices are about the same, similar models are only 20,000 or 30,000 more expensive, if you reduce some configurations, even with the price of their equipment.
At the end of the year, the equipment sales market is the hottest.
Countless enterprises have plans for the new year, and the funds are also the most abundant. And Jiuyi Heavy Industry is doing this now, obviously to grab their market share.
This is Yun Fei's revenge for the fact that they snatched foreign orders from him.
"Our investment in this has not been as good as Jiuyi Heavy Industry, and there has been no breakthrough in the research of electric spindles, more sophisticated transmission systems, and more advanced AC servo motors...... Zhu Feng explained with a frown.
It's not that they don't work hard enough as researchers, nor that their capital investment is too small, but that they went in the wrong direction at the beginning, and the technology obtained from Jiuyi Heavy Industry is basically a completely new field for them.
More importantly, some key accessories, such as spindles, ball screw transmission pairs, and AC servo motors that control feeds, are basically developed by themselves and purchased from Jiuyi Heavy Industry, so there is not much possibility at all.
"Don't talk about the problem of investment, this year, we have been on the research and development of new products. Hundreds of millions of dollars have been invested in research, but isn't that investment enough? Liu Cheng said with a frown.
Zhu Feng stared at Liu Cheng helplessly.
Indeed, they have invested hundreds of millions of dollars in this area, but the hundreds of millions of R&D funds must include a series of capital investments such as researchers' welfare, housing, etc., as well as some personnel relationship exchange expenses, and the funds really used for R&D tests will not exceed 40 million at all.
"Forget it, the new technique has been improved, we have to work harder, it seems. This year, let's not think about having a good time, Yun Fei's kid is really, if you have more money, you can donate it to those poor areas, what kind of price war is there to do! Liu Cheng felt that his head was about to explode.
"I guess it's because we robbed him of his order. Lao Liu, you'd better discuss it with other factory leaders, this matter is estimated to be handled only by going to the leaders above. Most of the parts of Jiuyi Heavy Industry's products are outsourced, which is much lower than our production cost. Otherwise, our days will be even more difficult in the future, and a new round of personnel recruitment is starting on the second machine......"
"I know that the CEOs of several machine tool factories in Northeast China and the leaders of several other larger factories will come to the capital this afternoon, and I will go with them when the time comes. Lao Su is not the old leader of the Northeast First Machine, and their Northeast First Machine is even more difficult than ours! Liu Cheng breathed a sigh of relief.
This can only be intervened by the state, otherwise it is better for them to close their doors as soon as possible.
As for the price reduction of Jiuyi Heavy Industry, it is not only the domestic CNC machine tool manufacturers that have been hit. Some of the foreign factories that have factories in China are even more unlucky.
They quietly set up a sales company that appeared to be scattered on the surface and had no connection with each other, but secretly it was very close-knit, and was quietly seizing the domestic market in China. It was not discovered by anyone, where did I know that Jiuyi Heavy Industry suddenly announced a price cut this time, and the price reduction was so large, which made the market they had so hard to occupy begin to shrink rapidly.
If they want to regain market share again, unless they can come up with better technical equipment than Jiuyi Heavy Industry, or the price reduction is greater than that of Jiuyi Heavy Industry.
How can such a thing be acceptable to those of them who come to China to make money!
"Ladies and gentlemen, China's young nouveau riche has once again lowered the price in this golden time of sales, which has caused us a lot of confusion, and we are here today to discuss ......countermeasures," Onomura Saburo said to the heads of the foreign machine tool companies that joined the alliance earlier.
The so-called discussion of countermeasures is to either reduce the price or come up with better techniques......
To Mitsubishi, an enterprise that originally belonged to the industry leader of the entire world, there is nothing to say about the technology, but putting those higher production technologies in the Chinese factories is not only not in the interests of the Japanese Empire, but also not in the interests of their company.
The price of the original imported equipment, compared with the equipment with the same technical conditions and accuracy level in China, will be half or even twice as high!
They won't give up these interests.
"Ohno-kun, for us, it seems that there is no other way to go except to reduce the price, right?" Wang Ziqing said with a frown.
Peng Zhi guessed what the Japanese wanted to do at the beginning, so he didn't bother to come at all, and directly asked Wang Ziqing to represent Wanyou CNC with full powers.
"Indeed, what Brother Wang said is that our companies do not have any advantages at all in terms of technology compared with Jiuyi Heavy Industry, especially the models they produce are more extensive. I wonder if the Mitsubishi Group can provide us with some technical assistance...... "Song Hui has always wanted to spend a small amount of money or even no money to introduce some advanced techniques from the Japanese.
This is the right time.
"No, no, you don't understand what I mean, when we first established the alliance, it was already very clear, we should carefully divide the market, and use our own technical advantages to compete with Chinese in various gears......" Onomura Saburo heard Song Hui say this, his eyes flashed, and he said coldly.
These people here, what kind of calculations they have, he knows better than anyone else.
Everyone gathers together and forms alliances just to take advantage of each other.
"Mr. Ohno, the profit of low-end CNC machine tools is low, this is known to everyone, especially China has a large number of low-end CNC machine tool production plants with strong production capacity, if this is another price reduction, where do our profits come from? The profit of a simple CNC car is only twenty or thirty thousand, are we here to accompany you to make money at a loss? The South Koreans sneered in their hearts.
Some machine tool companies such as Mazak in Japan also have plans to enter the Chinese mainland market and build factories, and if they follow the plans of the Japanese, in the end, they will fall to the same level as those state-owned factories in Chinese mainland.
Everyone knows that if you want to get more market share in this industry, you must have better technology, lower cost, and produce low-end equipment, which is basically just to earn a little coolie money.
Where and how much money can be invested in R&D?
The smaller the investment in R&D and the slower the technology update, the less competitive the product will be, and in the end there will be only a dead end.
In particular, once the Japanese completely control the mid-to-high-end market of China's CNC equipment industry, they can only compete with China's large number of state-owned enterprises and private machine tool factories to win the market by quantity......
For them, this is simply unbearable!
"Does Mr. Li have any advice to follow Haolu?" Onomura Saburo stared at Li Mingshan with a gloomy face.
"Let's go our own way, in China, there are many rules and regulations that bind us, and if we are bound by some rules and regulations we have formulated, we have no way out!" Li Mingshan did not agree with the Japanese proposal in the slightest.
Although they can also share some of the profits of the sales company, it is basically a small part of the loss from selling their own equipment.
Moreover, even if Chinese want to buy those low-end equipment, many people directly choose domestic equipment with a lower price and more convenient after-sales, rather than their pseudo-domestic, pseudo-foreign-funded low-end equipment that plays foreign advanced technology but does not have much high-tech technical content.
And the sales channels of these machine tool factories are basically helping the Japanese sell equipment.
As soon as they heard Li Mingshan's words, Song Hui and the others immediately began to make a fuss.
Li Mingshan is not the only one who has discovered these problems.
"Ladies and gentlemen, calm down, I don't think there is any need for us to shout that we want to break up as soon as we encounter difficulties, and as for the plans that we have begun to formulate, we may need to revise them. Moreover, this time, the biggest loss is not us, but those state-owned machine tool factories in China......" Wang Ziqing saw that if he continued to make trouble like this, this alliance may really break up.
"No matter how big the Chinese losses, what does it have to do with us? Mr. Wang, do you mean that those state-owned factories on the mainland will force their higher departments to force Jiuyi Heavy Industry to raise prices back? Li Mingshan's originally ugly face suddenly looked a lot better.
"That's true, and the reason for the price reduction of Jiuyi Heavy Industry this time is also in the state-owned machine tool factories on these continents, they forced the government to snatch the business contracts that should be signed with Jiuyi Heavy Industry in those small countries, this time if we tackle more difficult problems, even, we have a great possibility to get some orders......
He didn't want the alliance to break up, although the Japanese benefited the most, but for their Wanyou group, it also benefited a lot.
It turned out that they only had their own channels to sell, but now the sales channels are equivalent to three times larger than the original! Their equipment at such a price point and with such an accuracy level sells even better than the Japanese equipment with a higher accuracy level! (To be continued......)
PS: Thank you to the big guys who voted for the gourd today, tomorrow the new book of the gourd will be on the shelves, I don't know if there is a monthly pass in the hand of the gourd, and the big ones who are ready to vote for a gourd can leave the new book of the gourd.
Tomorrow there will be a lot of great god books on the shelves, although the gourd knows that the road is abused by the gods at all, but a little more monthly passes, it can also look a little better, please support the big ones of the gourd!