Chapter 303: Vicious Competition
Yanjing, the third factory of traditional Chinese medicine.
Huang Guigui, the factory director, sat behind the desk with a cold face, the ashtray in front of him was full of cigarette butts, and there was a half-burning cigarette in his hand.
"Tell me, what now?" Huang Guigui took a sharp puff, snuffed out the remaining cigarette butts directly in the ashtray, and asked.
"Factory director, I met with the sixth before I came, and there is no good way for the supply and marketing department, now there are too many similar products in the market, and the prices of several factories have dropped in the past few days, and the pressure is very low, and if it goes on like this, our sales problems are getting more and more ......serious."
Liu Xinhong said with an ugly expression, none of the three people present expected that the market would change dramatically in just a few months.
Previously, the No. 8 factory pioneered the packaging of warm cups, and sold the original unsalable loquat paste and cough syrup in the market, which suddenly reversed the loss situation of the No. 8 factory, and made the No. 8 factory make a lot of money on this product.
Seeing that the eight factories that were originally dying actually relied on this product to live like chicken blood, the more the small days passed, the more moisturized they were, and the other factories naturally couldn't sit still.
Especially on the side of the third factory, over the years, Huang Guigui has been aiming to surpass the first and second factories, and he has been holding his breath for the third factory to be inferior to the first and second factories.
In Huang Guigui's view, if it weren't for the fact that the third factory was worse than the first and second factories, he would definitely be able to lead the third factory to become the leader in the industry with his own ability, instead of being pressed by these two factories all the time.
Therefore, when the warm cup packaging products of the eighth factory were selling well on the market, Huang Guigui was the first to see the business opportunity and made the decision to follow up immediately.
Huang Guigui is very confident in this, after all, the scale or strength of the third factory far exceeds the eighth factory, if the third factory can launch similar products at the fastest speed, then the eighth factory can not compete with the third factory, so that the market is not dominated by the eighth factory but the third factory.
At that time, the desire to surpass the first and second factories is no longer a dream, with this product, Huang Guigui feels that he will be able to achieve this goal.
It's a pity that the ideal is beautiful, but the reality is skinny.
Huang Guigui keenly saw this, and other factories also saw this.
In order to compete for this market, all factories are eyeing this new product, gearing up to find a way, intending to rush into the market before others to get a piece of the pie.
At the beginning, the third factory still had an advantage, in the initial negotiation with Yanjing's local supply factories for packaging, because each factory has placed packaging orders, plus the warm cup packaging needs to open the mold and production cycle, which takes time.
However, the luck of the third factory is really good, at this time I actually heard that the packaging of the eighth factory is purchased from Jinmen, and Huang Guigui decisively asked the supply and marketing department to go to Jinmen immediately to negotiate. Soon there was good news from Jinmen, it seems that the eighth factory suddenly stopped the follow-up purchase order for some reason, so the manufacturers in Tianjin have enough capacity to supply warm cup packaging to the third factory in the shortest possible time.
After learning the news, Huang Guigui was overjoyed, and directly explained to the supply and marketing department on the phone to sign a contract immediately, and arrange for the vehicle to pull the package back as soon as possible.
In this way, the third factory made similar products nearly half a month ahead of other manufacturers, and at the same time worked overtime to put them on the market at the fastest speed.
When the third factory put the product on the market, the eighth factory is said to have temporarily stopped the production of this kind of product due to the lack of raw material supply. No wonder the eight factories of warm cup procurement over there in Jinmen have stopped, and the eight factories on the market have not continued to put this kind of products.
Huang Guigui can work in the third factory for so many years, the director is not a vegetarian, he learned the news immediately ordered the whole factory to work overtime production, the supply and marketing department also took this opportunity to spread out the products at any cost, and snatched the original market channel of the eighth factory in one go.
In this way, the third factory replaced the eighth factory as the occupant of the market at the fastest speed. In just over a week, the products produced by the third factory are sold more hot than the eighth factory, and every day when watching the customers who want to sell outside line up in a long line, a car of products pulled out, and the whole factory is busy with the appearance of being in full swing, Huang Guigui's heart is as sweet as eating honey.
It's a pity that such a good day didn't last long, half a month later, similar products from one factory and two factories also began to be put on the market, and the original situation of one dominance instantly became the three kingdoms.
And just when Huang Guigui was preparing to take advantage of the first-mover advantage and the first and second factories to have a dragon fight, it didn't take long for the products of other factories to come out, and the market changed from the Three Kingdoms to a scene of warlord melee.
For a while, similar products are flying all over the sky, each factory has its own magic in the market fierce competition, only a little more than a month, some of the factories that followed up later in order to compete with the first, second, and third factories, and even took the initiative to start cutting prices, intending to use this method to win market share.
In the face of this chaos, Huang Guigui responded calmly and immediately made two preparations, the first preparation was to appropriately reduce the price of sales, in order to ensure the first move and market share. The second hand is to open up foreign markets, sell products to other places, and make up for the loss of profits by running volume.
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I have to say that Huang Guigui's response is still correct, so in the next two months, the three factories barely stabilized the situation, although the product profits fell sharply due to the price reduction sales, but with the spread of foreign markets, output and sales rose sharply, and the overall situation was maintained.
But Huang Guigui didn't expect that what he could do could be done by others, and the response measures of the three factories also fell in the eyes of others.
In the era of the planned economy, the products produced by state-owned enterprises, including collective enterprises, were distributed in a planned manner, and this planned distribution included not only the supply of raw materials but also sales. When the market is opened, the pure planned economy begins to change into a planned market economy, and the original order is directly broken, and what is brought about is disorderly competition within the industry.
Now Huang Guigui is facing this kind of disorderly competition, the manufacturers for a similar product to break the blood, more terrible is that with the product to the national market, other factories in other places have begun to learn from the same, for a time a large number of similar products flooded the entire market, the original fragrant bun has become a rotten street thing.
With the passage of time, due to the continuous decline of product profits and the increasingly fierce competition, the inventory backlog on the side of the third factory is inevitable.
In addition, the current market is different from when the eighth factory just put into this kind of products, because the product has changed from a seller's market to a buyer's market, and more than ten or twenty brands of similar products on the market are competing for it.
Now, the sales side has long been changed to the consignment model, that is, the way of first delivering the goods to sell, and then settling the payment after the goods are sold, and this kind of settlement is ostensibly a month, but in actual operation, it often takes two months or even more time to collect the payment normally.
Even so, it is unknown whether the payment can be really recovered, because only when the product is sold can there be a payment, and if the product is unsalable, not only will there be no payment, but there will also be a return problem.
In addition to Yanjing and the surrounding areas, the third factory is now laying sales channels in other provinces and cities, and these sales channels add up to a huge number, in terms of the number of these sales channels, just each channel is shipped in the smallest batch, and the third factory needs to provide an amazing number of products.
If everything is a virtuous circle, the third factory does not have to worry. But now it has become vicious competition, which has made the three factories invest a lot of money in products. With the continuous deterioration of the market and the fierce competition, the backlog of funds is also rising, even if the three manufacturers are big, it is unbearable.
"Factory director, it's not okay to go on like this." Jiang Guoxun's expression was grim, and he took over and reminded: "Now the financial pressure in the factory is too great, and the payment collection in various places is so slow, if this problem cannot be solved in another month, it will not even be able to maintain normal production." ”
"It's all a bunch of bastards!" Huang Guigui was extremely angry in his heart, stood up and slapped the table, opened his mouth and scolded: "The good business was made like this by these guys, a pot of meat tossed them into a pot of rotten porridge, and the special mother's is still wild vegetable porridge mixed with sand, how can Lao Tzu eat it?" ”
Huang Guigui was so angry, if it weren't for the follow-up of the first factory and the second factory, including the follow-up of other factories, desperately grabbing the market with themselves, and even taking the initiative to reduce the price of this stupid thing of killing a thousand enemies and losing eight hundred, how could the third factory face such a problem?
How nostalgic it was when the eighth factory withdrew and the third factory took the opportunity to enter! At that time, how well did the products of the third factory sell in the market? How profitable is it? But now? Everyone's products can't be sold, profits are falling sharply, Yanjing is better, if it is a foreign market plus freight or something, the current profit is simply incomparable with the beginning.
But Huang Guigui himself doesn't want to think about it, compared to other factories and three factories, it is also not much better? Because the first to produce and put this kind of product is not the third factory but the eighth factory, the third factory is the same as picking up people's teeth and wisdom to snatch the goods of other people's markets, the eldest brother does not say the second brother, in essence, they are all goods.
Of course, people have double standards, be generous to themselves and be strict with others, in other words, to be strict with others and lenient with themselves, although Huang Guigui is the factory director, he is also an ordinary person, and ordinary people who eat grains and grains have seven emotions and six desires, of course, the same.
In Huang Guigui's view, the current situation is caused by others, and has nothing to do with himself, he and the third factory are just victims, if there is no these guys tossing around, the current third factory must have a beautiful life, where are these problems?