Chapter Forty-Seven: The Bad Luck of the Inner Gate Company

This time, the national goods that have re-entered the Yangtze River basin not only have their own transportation channels, but also jointly build their own sales channels and use trademarks.

The main field of foreign banks is the transportation industry, and then the transportation industry is involved in imports and exports. At this time, the East China Autonomous Political Axe obviously wanted these foreign banks not only to be unable to import and export, but also to intervene in the transportation industry.

The brutal market struggle began again, but the revitalized Chinese national capital was clearly fully prepared, and the two sides began to lower the selling prices of goods in Wuchang and Hankou in the Yangtze River basin.

When Chinese commodities drop a little, foreign companies will drop even more, so that the price of foreign goods will always be lower than those shipped from the three autonomous provinces of East China, in order to hit China's national capital.

At this time, there were more than 200 foreign firms in China, and these foreign firms were scattered all over the country, and they were involved in a variety of fields, among which the shadow of international trusts can be clearly seen.

Trusts are a monopoly system in which they are highly sensitive to competitors that appear in the market, often attacking competitors with superior capital and then swallowing them up.

This time, however, the foreign firms miscalculated, and although they pushed their prices even lower than those of their competitors, there were still people who bought their goods.

Of course, because they have lowered the price, more buyers still choose to buy their goods, but at this price, they sell more and lose more.

This is a test of endurance, but what these foreign banks don't know is that most of the various commodities from the three provinces of East China only keep their prices down to a state where there is still a little profit, so no matter how much they sell, they will make money, but they will only make more or less money, and basically there will be no losses.

This stems from the fact that they have regained their cost advantage, as the goods of the merchants are shipped from overseas, which is more expensive in the first place, and their labor costs are mostly higher than in China, but most of the factories in the three autonomous provinces of East China have to pay sewage treatment fees, while some of the goods of foreigners are produced in colonies with lower labor costs, such as India. In this state, it is difficult for both sides to say whose goods are more competitive.

However, the factories in the three provinces of East China Autonomous Region use more advanced equipment, and under the use of these advanced equipment, the cost of goods can even be reduced by more than half, which is the core force of the industrialists in the three provinces of East China Autonomous Region to compete with foreigners. At the same time, the East China Autonomous Government has made efforts to reduce the price of raw materials and energy, which has also greatly improved the competitiveness of commodities.

The bargaining between the two sides was not too fierce, of course, in the eyes of those industrialists in the three provinces of East China, after all, when they first started to lower prices, there were still good profit margins.

However, in the eyes of those foreign banks, they have entered a state of fierce bargaining, because they have begun to make loss-making transactions at such the same price.

In the following years, the competition between the two sides tended to be white-hot, and the factories in the three provinces of East China began to compress their profit margins, and some factories even sold goods at prices that did not lose money or make a profit.

The foreign banks were in competition, so they had to lower the price of their goods to a lower price than these competitors, in order to destroy these competitors.

East China Industrialists Club, which is a club with very strict entry conditions, and the founder of this club is Xia Jun.

Only those industrialists who can be absolutely trusted can participate in this club, and now there are only 19 members in the club.

And these nineteen people are all big businessmen supported by Xia Jun, and his father-in-law Li Shilin and Liu Jinshan are the two most important members of the East China Industrialists Club.

The competition between the two of them is very fierce, but under Xia Jun's warning, both sides adopt a good surname competition.

Since the end of February, Xia Jun has been frequently meeting with club members, and Xia Jun has asked them to work together in this external competition.

At each club meeting, these members exchange information with each other and coordinate their marketing strategies to achieve a consistent external understanding.

"Their current madness is only a prelude to their demise." Xia Jun said to those present at a club gathering held on March 9.

"Chairman, this is this week's market research report, and we have five categories of goods that are at a disadvantage in the competition." Liu Jinshan handed a report to Xia Jun.

This is the report that Xia Jun has to read every week, this report is written by Zhongsheng and Huasheng two groups and other factories after summarizing data, Xia Jun took the report and read it.

"In a few days, I will order new equipment for the manufacturers of these five categories of goods, and at the same time I will adjust the tax rate for them." Xia Jun said that at this time, the duty-free time has passed, and the new factories only have three months of duty-free time, and basically most of the goods are paying taxes.

As long as taxes are lowered, these manufacturers' goods will immediately gain a competitive advantage.

Xia Jun's most urgent thing at this time is to squeeze foreign goods out of China, and give those manufacturers who are at a disadvantage in competition tax reduction policies, or even tax exemption policies, although it is likely that no money can be collected, but this can enable the survival of national capital, and the survival of these national capitals can provide more jobs for the people, and at the same time increase the overall wealth of the country.

Policy is dead, people are alive, and improvisation is king.

As long as foreign goods are squeezed out of the market, it will not be too late for Xia Jun to collect them again, and at that time, even if the tax rate is higher, it will not be so easy for foreign goods to squeeze in again.

At the beginning of March, Xia Jun received another 260 million points, and at this time, the people's sentiment index had increased to 4.8, and the East China Autonomous Political Axe had won the trust of the people of the three autonomous provinces, and everyone was looking forward to the new year that the East China Autonomous Political Axe could lead them to a good life.

With these points, Xia Jun has been enough to exchange advanced equipment for private enterprises, and in some industries where raw materials are restricted, Xia Jun even does not hesitate to spend huge amounts of points to exchange more advanced equipment for them.

In less than ten days, Xia Jun has spent 60 million points, all of which have been used on these private enterprises, and at the same time, the production capacity of textiles and papermaking has been greatly improved.

As Xia Jun said, the end of foreign goods in China is not far away, Xia Jun's East China Department Store began to open in the three provinces of East China, and East China Department Store only sells domestic products.

As soon as you walk into the East China Department Store, you can see a sign that says 'Buy Chinese goods, be Chinese', which greatly enhances the sense of nationality of customers.

There is also a sign outside the East China Department Store that reads - 'The customer is always right', and the employees of the East China Department Store must abide by the principle - not to argue with the customer, even if the customer is wrong. In addition, if the product is not satisfied within one week, it can be returned.

Warm service is still the basic principle, and the goods on the bottom floor of the department store are affordable goods for the general public. As soon as the East China Department Store opened, it had a very hot business.

Everyone knows that as long as there is a commercial organization with the name "East China", it is set up by the East China Group of the chairman of the committee, and in many cases, even if some of the goods in the East China Department Store are sold higher than in other places, people will choose to go to the East China Department Store.

Soon, the three provinces of East China Autonomous Region set off an upsurge of support for national capital.

Radio broadcasts and schools everywhere are publicizing support for national capital, and banners are hung on the streets, or slogans in support of national capital are painted.

The teachers and students of the school also spontaneously took to the streets to publicize that the domestic product boom set off by the three provinces of East China Autonomous Province will be a permanent surname, and there will be no place for foreign goods in China in the future, except for some raw materials that cannot be self-sufficient.

In addition to the three autonomous provinces of East China, Xia Jun also sent a large number of personnel to carry out publicity, brushing slogans in major cities and advertising the 'Made in China' trademark in various newspapers.

The made-in-China trademark belongs to the common ownership of national capital, and in addition to the goods of the three provinces of East China Autonomous Province, the national goods of other provinces can also be used.

At the same time, it can also be used by Chinese capitalists in Nanyang and Australia, regardless of whether those Chinese have joined the nationality of other countries.

This represents an attitude in the three autonomous provinces of East China, even if overseas Chinese have joined other nationalities, they are still recognized as Chinese, as long as they can also speak Chinese, whether it is official or dialectal.

The resistance of foreigners is also very strong, for example, in the production of alkali, Xia Jun's East China Chemical Company and the British Zuneimen Company had a fierce market conflict.

This kind of market conflict has even spread to the capital.

The company has long monopolized the production and sales of soda ash in Asia, and the first reaction of this trust-based enterprise after seeing the emergence of competitors is to attack their opponents in an unfair competition way.

However, this time, the company encountered a competitor that made him unshakable, and Huadong Chemical Company was not afraid of bargaining at all.

In terms of the production cost of soda ash, caustic soda and other products, the goods of Huadong Chemical Company are nearly half lower than that of the British Zuneimen Company, because Huadong Chemical Company uses the Hou's alkali method, which increases the utilization rate by 25%, and can also obtain fertilizer.

In terms of transportation costs, East China Chemical Company is in the local area, and the company is far away in the United Kingdom, and bargaining with East China Chemical Company is simply jumping off the building.

The company first transferred the first batch of soda ash and caustic soda from Britain, and soon the two sides entered the stage of all-out war.

On March 15, Xia Jun ordered the East China Chemical Company: "Let them die quickly." ”

The East China Chemical Company, which received the order, began to draw the flames of war to Yuben, Southeast Asia, and other places, and because the sales volume of the Inner Men Company in these markets was the largest, basically no one competed with them, and as soon as the products of the East China Chemical Company entered these markets and lowered the prices, the Inner Men Company could only lower the prices in order not to give the East China Chemical Company a chance to breathe.

The company did not know that the East China Chemical Company was not suffocated under this kind of competition, and even at such a price, it still had enough profits.

On the contrary, it is the inner door company, and the scope of competition with the evil surname has expanded, and the sales volume of the inner door company has surged. At the same time, factories in the three provinces of East China also began to buy the company's products.

At this time, the more the company sells, the more it loses. The company is a big customer of soda ash and caustic soda, and they have bought the products of the company when they saw the price reduction.

After only five days, the company could no longer hold on.

(To be continued)