Originally, Shenlong Automobile Company also wanted to learn from RB Automobile Company's approach and establish a joint venture with American Automobile Company to establish an automotive equipment factory, but in the end it was rejected by Zhao Yi.
There are two reasons. One is that Shenlong Motors' cars have a leading edge in technology and can make the American people pay for them. The second point is that if the United States insists on making things difficult for you, setting up an assembly plant will not be of much use in the United States. , tariffs cannot be levied on complete vehicles, but tariffs can also be levied on auto parts, which will ultimately increase costs.
As for RB being able to do this, it is because RB's parts technology is not ahead of domestic automobile manufacturers in the United States. If tariffs on parts are increased, at worst, they will move these parts production plants to the United States, and they can still avoid tariff restrictions.
It is impossible for Shenlong Motors to do this because the technology is much more advanced than that of the United States. Wouldn't it be a mistake to move parts production to the United States
In the past, the world's industries were mainly distributed in three countries, the United States, Germany and RB. Among them, RB was a latecomer. With its cheapness and fuel efficiency, it conquered cities and territories in the United States. German cars basically regarded Europe as their basic base. The saddest thing should be American cars. The company is constantly facing attacks from car companies from these two countries, especially RB.
Although the RB automobile industry has made great progress, their domestic market cannot support so many automobile companies. They can only rely on opening up foreign markets to support them. So is there anything better than the US market
RB is also an interesting country. It always wants to kill American companies. This is true for cars and semiconductor memory chips.
The price war is a tried and tested tactic, and the fuel-efficient engine developed by itself is indeed more refined and economical compared to the stupid and bulky cars in the United States.
But now that Shenlong Motors has developed, it has brought great difficulties to RB's overseas expansion.
Especially in Southeast Asia, RB Motor Company has been strongly attacked by Shenlong Motor Company.
Southeast Asian countries have developed well since the mid-1960s, especially ASEAN countries. The average annual growth rate in the 1970s reached 7.4%. They continued to develop in the early 1980s and did not slow down until the mid-1980s.
After adjustments, the average annual growth rate rose to 8.6% from 1988 to 1990. Its growth rate is among the highest in the world, especially Singapore's development rate. By 1990, its per capita GDP reached US$11,000, reaching the level of moderately developed countries. .
Such a market with huge potential, and there is no particularly strong local automobile industry, is regarded by Shenlong Automobile Company as its own territory.
Therefore, every effort has been made to suppress RB Automobile Company in the region. Cars with much better performance than RB Automobile are only sold at a slightly higher price than RB Automobile Company, making people in Southeast Asian countries willing to pay a little more to buy Shenlong Automobile Company. Car.
Shenlong Automobile Company's cars either directly reduce their prices, or they offer discounts in various categories. They will use any festival with a little influence as a reason for discounts.
"Celebrating the founding of the People's Republic of China, 15% off the entire store" and so on, made RB Motor Company feel like it had eaten a fly. However, by doing this, Shenlong Motor Company has gained a lot of favor from the people of Southeast Asian countries. I feel that Shenlong Motor Company particularly respects itself. s country.
Coupled with the 4S store model pioneered by Shenlong Automobile Company, they not only conquered the Southeast Asian market, but also became unique in the global market, occupying 17% of the world's automobile market in just two years.
We must know that in the past hundred years of development, German Volkswagen has not achieved such a high share.
In order to compete with RB Company, which sells very popular motorcycles in Southeast Asian countries, Shenlong Motors originally did not intend to enter the motorcycle field. However, due to the fierce competition with RB Company, and even the phenomenon of grouping with RB Motor Company, let Shenlong Automobile Company was so angry that it simply planned to expand the scope of competition and also developed motorcycles.
With Star Power's excellent motorcycle engine and Shenlong Motor Company's own unique industrial design, the new motorcycle instantly beats RB's motorcycles in terms of appearance and performance.
Moreover, it has a complete range of low, mid and high-end models, and even a luxury motorcycle has been sold, with a price of 1 million yuan. If you drive this kind of motorcycle into the street, you will definitely be the most handsome guy on the street.
In the 1980s, RB's home appliance industry was actually developing very well. Before Polaris Company did not develop and produce home appliances, RB's home appliances were also conquering cities in Southeast Asia.
However, this good times did not last long. Automatic Polaris' home appliances entered Southeast Asian countries, and it also launched various marketing methods targeted at RB home appliances.
RB's home appliances are also discounted and promoted, but their costs are much higher than those of Polaris. The profit margin of home appliances is not very high to begin with, and with the discount, there is not much money to make, and even some Low-end home appliances are already being promoted at a loss.
Even with such loss-making promotions, they were unwilling to leave the market. They subsidized the profits they earned in their own countries to products in Southeast Asian countries. Polaris Company saw this and remained in a stalemate for several months without letting them withdraw.
So they cut the product prices to 30% off, allowing them to directly drop all line of home appliances below the profit line. The low-end products were so bad that even his grandma didn't recognize them.
Even if Polaris offers a 30% discount, it can still make a certain amount of profit. Such an operation has completely squeezed out the low-end products of RB home appliances from the Southeast Asian market, and then the two sides started to compete in the high-end market.
In fact, their high-end products are also below the profit line, but their losses are not too big, and their domestic profits are enough to subsidize them.
At this time, Polaris Company did not launch another discount at a lower price, because it was no longer necessary. If the price were to drop again, its own profits would shrink significantly, which was not worth it.
You must know that the profitability of RB's home appliance products can be balanced domestically, while Polaris' domestic profitability is not strong.
Now we are in a stalemate stage. Let RB's home appliance company continue to bleed in Southeast Asian countries. It is still the kind of wound that cannot be stopped. Polaris just wants to see how many years RB can persist.
For products of the same grade, Polaris' technology is definitely ahead of RB's home appliances, and Polaris also has the most high-end products that RB's home appliances do not have.
The price of this most high-end product has not been reduced, but now it has become Polaris' main source of profit in Southeast Asian countries.
RB Company also knows that the cost of its products is much higher than that of Polaris Company's home appliances. In order to reduce the cost of its products, it has begun to consider building a factory in mainland China, hoping to reduce labor costs through the mainland's cheap labor.
In fact, they don't know yet. In fact, Polaris Company's product research and development costs are much lower than those of RB Company, but RB Company can only compare through labor costs.
It stands to reason that the R&D costs of latecomers will be higher, because you either need to purchase relevant patents or bypass other people's patents, which virtually increases R&D costs.
But Polaris is an unreasonable company, which is why RB Home Appliances continues to suffer from blood loss in Southeast Asian countries.
In fact, there is another big trick that Polaris has not used yet, because it is really bad for doing so, which is to increase the supply price of LCD screens, or more accurately, to increase the price of LCD TVs, which will greatly increase the cost of RB's LCD TVs. .
Zhao Yi has repeatedly told his companies that it is best not to use this differentiated treatment strategy. Companies that control memory chips, such as Samsung in later generations, are prone to misfires. Anyway, they find various reasons to increase the price of memory chips, which in turn arouses Domestic determination to make memory chips.
The reputation of Samsung and other companies in China has basically been ruined. Otherwise, after the mobile phone battery fire incident, Samsung's mobile phones are basically no longer available in the domestic market.
On the one hand, they treat the follow-up treatment of mobile phone battery fire differently, which is obviously suspected of discriminating against domestic consumers. On the other hand, their character has been almost ruined, and they are just missing a fuse. Yes, the consequences are clear.
Zhao Yi absolutely does not want this to happen to his own companies. He even requires his companies to localize as much as possible, so that their products can be integrated into the local social environment. They should not be overbearing, but should be as down-to-earth as possible, so that their products can be localized as much as possible. It has become a beautiful memory for local people.
In the final analysis, it is to try to make the local people feel sentimental about your products. Only sentiment can make the local people stick to you, and even if you fail for a while, you can make a comeback.
Moreover, Polaris Company also has a huge helper, which is its trading company. Now the trading company has almost completely occupied the retail department store market in Southeast Asian countries.
This allows it to have enough channels to sell Polaris' products, and it can also help Polaris conduct localized marketing, making people who don't know the inside story think they are products from its own country.
This is also the reason for Polaris not to continue to suppress RB home appliances. Even if RB is losing blood, it will slowly lose its market share in Southeast Asia. It is only a matter of time.
This is also the reason why the RB reporter raised that question at the Future Space Technology Company's press conference just now. The RB technology community is now full of hostility towards products from China.
It is this hostility that has caused Shenlong Automobile Company's market in RB to basically not expand. On the contrary, some consumer electronics products of Polaris Company have sold better in RB.
Like the CD player and home game console, these two products have dominated RB's main market by virtue of their absolute technological and design advantages. No matter how much RB's Nintendo and Sony slander them, they cannot change the status quo. (End of chapter)