Rebirth of the Industrial Tycoon - Vol 2 Chapter 530
Chapter 530 Seize the moral high ground
Li Weidong returned to China from Japan, this time he was considered a victory back to Korea.
In order to keep his job, Mr. Sangye finally succumbed to Li Weidong’s theory of “consumption degradation” and allowed Puppy Electric’s products to enter Yamada Denki’s chain stores.
For Li Weidong, this is a strategic level of cooperation, which means that Puppy Electric’s products finally have a channel to officially enter the Japanese market.
Among the major economies in the world, the Japanese market is probably the most difficult to enter.
Japan has set up many tangible or non-tangible barriers for foreign products to enter the Japanese market, artificial or non-man-made.
In terms of technology, Japan has set strict technical standards and specifications for imported products, which means that almost all products entering the Japanese market need to be produced exclusively for Japan.
In terms of non-technical aspects, Japan has special requirements for product packaging, labels, signs, environmental protection, certification standards, intellectual property rights, design instructions, etc., and the requirements are very cumbersome.
These two points alone formed the shackles that inhibited the entry of foreign products into the Japanese market.
These two chains are difficult for Western companies to break through. Since the Industrial Revolution, the West has been the rule maker, allowing the world to operate according to the rules they set.
The same is true in business. Western companies formulate product rules and then sell them to the world. They will not specifically formulate product technical standards and specification options for other markets.
But for Chinese companies, these are not problems. Chinese companies are very good at producing various requirements in accordance with customer requirements. As long as the money is in place, there is no problem in modifying the specifications overnight.
In addition to the two chains of technology and non-technology, there are barriers to trade.
For example, tariff barriers, anti-dumping, countervailing and other non-tariff barriers. Of course, this is something every country has.
The other is channel barriers. The Japanese manufacturing industry is strong, and the relationship between Japanese local producers and distributors is very close. It is difficult for foreign manufacturers to enter the Japanese distributor system.
Japan’s channel barriers are not only a problem faced by Chinese companies, but countries around the world are also facing the same problem. In order to solve this problem, many foreign companies simply acquired Japanese brands and then backdoored into the Japanese market.
Now Li Weidong has settled Yamada Denki, which can be regarded as smoothing the channel barrier.
The above can still be solved by humans, while cultural differences cannot be solved by humans.
Japan is an island country with the characteristics of an island country’s thinking, such as relatively conservative self, a strong sense of crisis, a repulsive attitude towards outsiders, and a strong economic closedness.
Many island countries in the world, especially island countries that have always maintained aboriginal rule, have similar situations.
For example, countries such as the United Kingdom and Ireland are relatively conservative countries in the European region. The subsequent Brexit will show the United Kingdom’s xenophobic consciousness.
This bias towards conservative and xenophobic characteristics is also an obstacle to foreign commodities.
Britain has been a dung stick in Europe for so many years, and it has been integrated into Europe in terms of culture to a large extent. There are Anglo-Saxon relatives such as the United States and Canada, and it is more open than Japan.
The language, culture, customs, and values of Japan are all independent, which can be said to be of its own kind.
Although Japan has been influenced by Chinese culture, that happened hundreds of years ago. Nowadays, the cultural differences between China and Japan are similar to the differences between Chinese and Western cultures.
For foreign products to enter Japan, they must cater to Japanese cultural characteristics.
In addition, the Japanese are extraordinarily superstitious about domestic products, which makes it very difficult for foreign products to have a place in Japan.
Islanders’ sense of xenophobia, coupled with the collectivist concept pursued by the Japanese, makes Japanese people more willing to buy domestic products, especially in areas where Japan has its own advantages.
The home appliance industry is obviously one of Japan’s best areas, and it is also the most difficult area for foreign brands to enter.
It took Haier more than two decades to obtain a 10% share in the Japanese market. Hon Hai acquired 10% and 9% of the Japanese market through the acquisition of Sharp and Midea’s acquisition of Toshiba.
But compared with Panasonic’s 20% market share in the Japanese market, and Hitachi’s 15% market share, there is still some gap.
Moreover, even if the price of the same product of Panasonic and Hitachi is higher than that of Haier, Japanese consumers are still more willing to buy Panasonic and Hitachi.
This is also one of the characteristics of Japanese consumption. They are very loyal to their domestic brands. As long as economic conditions permit, they are willing to spend more money to support local brands.
Japan’s manufacturing sector has always been relatively comprehensive, ranging from sophisticated high-end machine tools to clothing and footwear, all of which are produced locally in Japan. There are many low-profit industries, and Japan has not given up.
For example, in the production of urea, China is the world’s largest producer and the world’s largest exporter.
The profit of urea is not high, the production is not difficult, and the production process needs to use coal, which will cause energy consumption and pollution. If the production scale is not large, it will lose money.
As a result, many developed countries have given up urea production and switched to importing from other countries. For example, South Korea closed the last urea plant in 2011.
Japan is so close to China, it is reasonable to say that it is the most cost-effective to import urea directly from China.
However, Japanese companies have always maintained urea production. Japanese people are also willing to purchase domestic urea, even if the price is five times more expensive than urea imported from China, Japanese urea companies have survived.
From an economic point of view, preferring to spend money on more expensive products is a consumer behavior that is difficult to understand and can only be explained by cultural differences.
Looking at the whole world, only Japan can form this unique consumption system.
Change to another country, even if consumers are still willing to continue to buy, entrepreneurs seeing this business are not making money, it is impossible to continue to do it, and they have already changed careers.
However, Japanese companies rarely change careers. Whichever line they do, they will continue to do so until they become bankrupt.
Japanese companies tend to be family-style management, coupled with the existence of a lifetime employment system, making it difficult for Japanese companies to transform.
Therefore, there are many “longevity companies” in Japan.
The number of companies in Japan more than 100 years old is twice that of the United States, and the number of companies more than 200 years old is five times that of the United States. These “longevity enterprises” are all born of life and death.
Japanese entrepreneurs would rather go bankrupt than transform, and Japanese consumers would rather spend more money than change their consumption habits. That’s why some people say that the Japanese are very hard-headed and don’t know how to work around.
…
Opened sales channels in Japan, Li Weidong was full of smiles on the way back home.
As soon as the plane landed, Li Weidong’s pager vibrated continuously.
“As soon as there was a signal, there was an intensive bombing!” Li Weidong picked up the pager and flipped through the messages. There were really many people looking for him.
He Yu, the father-in-law, Wang Jing from the electrical appliance factory, and Zhong Yemao, the marketing director of Puppy Group, are all looking for themselves.
Li Weidong still called Lao Zhangren first.
“Dad, are you looking for something to do with me?” Li Weidong asked.
“Weidong, what’s the matter with the ten million dollars?” Dad He asked.
“What is ten million dollars?” Li Weidong was a little confused, and then he continued: “What happened? I went to Japan to discuss business and just got off the plane.”
“The newspaper said you caused a foreign exchange loss of 10 million U.S. dollars. Is there such a thing?” Dad He replied.
Li Weidong was stunned, and asked, “Which newspaper?”
“It’s written in several newspapers, and the content is similar. I guess they were reprinted from each other.” Dad He replied.
Li Weidong replied: “There must be nonsense in the newspapers. I have a lot of foreign trade business here, but I have always made foreign exchange! I don’t do unprofitable transactions, how can it cause foreign exchange losses!”
He’s father reminded: “Weidong, you should investigate it carefully first, if there is a problem in that link, take measures to remedy it as soon as possible.
10 million US dollars is not a small amount, but for you, it should be affordable. If it can be solved, solve it as soon as possible. Don’t lose too much! ”
Li Weidong nodded: “I understand, Dad, you can rest assured, I will take care of it.”
Li Weidong dialed Wang Jing again.
On the phone, Wang Jing said: “Chairman, where are you? Just got off the plane? That’s great! You still don’t return to Qinghe for the time being. Many people are looking for you! Most of them are reporters, saying they want to interview you. , There are also people in the city who are asking about ten million dollars.”
“I have found Qinghe! Okay, I know, I will take care of it here.” Li Weidong frowned, feeling more and more that the stall this time was not a trivial matter.
Li Weidong dialed Zhong Yemao again. This time, Li Weidong took the lead and asked: “Old Zhong, did you ask me about ten million dollars?”
“Chairman, you know all about it!” Zhong Yemao said.
“I know a wool!” Li Weidong replied very uncomfortably, and then said: “I have been negotiating with the Japanese these days, and now I just got off the plane, and then a bunch of people came to me and said something about 10 million dollars! Now I am still confused!”
“Chairman, why don’t you come to my place, I have collected some information, you can understand it at first glance.” Zhong Yemao replied with a smile.
…
Li Weidong came to Zhong Yemao’s marketing department, and Zhong Yemao handed a lot of newspapers to Li Weidong. Li Weidong knew at a glance what had happened.
“I signed Kobe as a spokesperson in the United States. It was in 1996. Why did I mention it now?” Li Weidong pointed to the content of the newspaper, and then said; “Not to mention, the information cited above is still It was in 1996, when Kobe had just entered the NBA draft.”
Zhong Yemao posted a copy of the “Nanzhou Metropolis Morning Post”, and then said: “I checked, this newspaper was the first to make this report, and other newspapers reprinted the “Nanzhou Metropolis Morning Post.”
“”Nanzhou Metropolis Morning Post”? The newspaper in the Pearl River Delta, right? I have heard of this name!” Li Weidong said.
“This newspaper has always been known for its bold style and sharp comments, and its report content is also very attractive. There are often some exclusive special reports, which are quite famous. You have heard of it and it is normal.” Zhong Yemao said.
“No.” Li Weidong shook his head: “I usually read newspapers such as “People’s Daily” and “Xinhua Daily”. After all, it is necessary to carefully understand and study the country’s policies. How can I have time to read “Nanzhou Metropolis Morning Post” “The short content of these parents!”
“That’s because this newspaper reported on you before. So you have an impression.” Zhong Yemao said.
“It’s possible!” Li Weidong said, frowning and thinking about it carefully.
A few seconds later, Li Weidong’s inspiration suddenly appeared: “I remember! The report of the ghost castle was written by this newspaper. It was also a dog-blood sprayer who scolded me at the beginning. Thanks to “Focus Talk” for helping me restore the truth. It seems that the slap doesn’t hurt, and now it’s troublesome for me again!”
Zhong Yemao said: “In fact, signing a brand spokesperson is a business activity, and it can also be regarded as an investment in brand awareness. The spokesperson is not strong, and at most it has a poor vision. Is it an investment failure?
This is very positive in business activities. To do business is to make a loss and make a profit. Whoever stipulates that the brand finds a spokesperson must make sure that there is no loss! But the key to this commentary is really murderous! ”
Zhong Yemao pointed to the content of a comment in the newspaper, and then said: “Chairman, look at this comment. It says that our country’s industrial sector needs to import advanced equipment, and the scientific and technological sector needs to import advanced technology.
All of these require foreign exchange. If this tens of millions of dollars is used to purchase advanced equipment or introduce advanced technology, how many enterprises can upgrade and how many scientific research projects can make breakthroughs!
It is also said later that there are so many people in poor mountainous areas that are still below the food and clothing line, and many children in the western region cannot go to school. If this tens of millions of dollars is spent on poor mountainous areas or children who are out of school, how many people can eat? Stomach, let how many children enter the classroom!
It’s good to say that you don’t have these comments, but with these comments, you are standing on the commanding heights of morality and criticizing you. Even though the signing of the spokesperson by the United States is a purely commercial act, after seeing these comments, it will inevitably be linked to ethics. This is quite detrimental to you. ”
“I understand, moral kidnapping!” Li Weidong shook his head helplessly, and then said; “This time the “Nanzhou Metropolis Morning Post” is considered to be clever, and knows how to take the moral high ground to criticize! How can I not pick their faults? .”
“Chairman, since you have lost the moral commanding heights, I suggest you deal with it coldly! Whoever asks this matter, ignore it, wait a long time, or a new focus event appears, public opinion will forget this matter! “Zhong Yemao said.
Li Weidong shook his head: “No! Since I have lost the moral commanding heights, then seize it again! Besides, I have been a company for so many years, and it is not that I have not taken social responsibility!
Aren’t they doing things in that poor mountainous area? My Beverly Agricultural Machinery donates agricultural machinery to impoverished mountainous areas every year! My puppy electrical appliance factory employs a large number of workers from impoverished mountainous areas every year.
In the past few years, I at least helped tens of thousands of families get rid of poverty and become rich! Next, the electrical factory will expand its production capacity, and I have to hire more people! I used to do things silently, but now I take advantage of this opportunity to make a lot of publicity!
As for children who are out of school, set up a fund and contact Project Hope to donate books, tables and chairs, and schools. Donate whatever you can! We have built hundreds of hope schools to let the society know what an entrepreneur of conscience is! ”
Hearing this, Zhong Yemao couldn’t help but give Li Weidong a blank look, and said in his heart that the rich and local tyrants do things simply and simply, just take the money directly, and don’t force it too much!
However, Zhong Yemao still said: “Chairman Li, although this can be a moral counterattack, the foreign exchange losses of 10 million US dollars have not been resolved!”
Who told you that the ten million dollars was a loss? “Li Weidong checked the date on his watch, and after all, it’s almost time for the NBA All-Star Game.
Then Li Weidong continued: “Don’t worry, you will soon know how much the endorsement fee of this million dollars is!”
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(End of this chapter)