In 1985, P&G Daily Chemical Company launched many innovative products, but its turnover was not high. Domestic operating income was only 1 billion yuan, while foreign income was 5 billion yuan.
The domestic market share is actually quite high, reaching more than 65%. However, because the price of single products is too low, it is difficult to increase operating income.
Nowadays, ordinary people in China are still willing to buy soaps that cost less than a cent. Many people in rural areas are not willing to buy soaps that cost slightly higher prices.
This is the situation we are facing in China now. We are not yet wealthy enough to need higher-quality products, let alone the world-leading products developed by Procter & Gamble Daily Chemical Company, which have very low domestic sales.
This is why Zhao Yi had to let P&G Daily Chemical Company enter overseas markets last time. Only overseas markets can allow P&G Daily Chemical Company to develop and grow as quickly as possible.
Don’t look at P&G Daily Chemical Company’s overseas operating income of only 5 billion yuan, but also look at the time when they entered overseas markets. Zhao Yi urged them to explore overseas markets in September last year.
From the research and development of their new products to the expansion of production capacity and then to overseas marketing, it takes two or three months. In other words, these 5 billion yuan were created in less than three months. .
Of course, the help of Shangtong Trading Company is also indispensable. With Shangtong Trading Company's retail network all over the world, at least in terms of distribution channels, they enjoy great convenience.
But from the perspective of sales regions, their main source of profit is Southeast Asia and East Asia, especially in RB, where their high-end products are quite popular.
Of the 5 billion yuan in revenue, RB accounted for half of the contribution. Even so, their products’ market share in RB is still quite inconspicuous.
During this period, P&G Daily Chemical Company focused on its own brands, mainly seeking advice from these unfamiliar markets to see how the markets in these countries reacted.
But in the future, P&G Daily Chemical Company will still mainly acquire local daily chemical brands, so that the market expansion will be much faster, and it will be simpler and faster than the current market development method.
However, this model consumes relatively high funds. If it were not for the support of Zhao Yi, P&G Daily Chemical Company would certainly not be able to follow this path of expansion.
As for the daily chemical market in developed countries in Europe and the United States, they have not yet taken it into consideration. According to P&G Daily Chemical Company's strategy, they will first consolidate their market share in Asia and then expand their business to European and American countries.
Although Zhao Yi was noncommittal about this approach, he did not question it. According to Zhao Yi's idea, advanced products would be more easily accepted in Europe and the United States.
Although Zhao Yi did not question their strategy, he still told Ma Shixian the idea, so that he could try to promote his products in some European and American countries to see the effect. If the effect is good, then increase the intensity. The effect is very average, and then slowly Of.
Since it has been tested in countries such as Southeast Asia, Japan and South Korea, and not many European and American countries, it is still a matter of money anyway, which Zhao Yi still has in abundance.
What he was short of was big money.
At the end of the meeting, Zhao Yi emphasized that Ma Shixian should pay attention to the actions of those international daily chemical giants. If nothing unexpected happens, there may be daily chemical giants entering our country's market this year.
This reminder mainly tells Ma Shixian not to rush into the international market by himself, but instead ignore the domestic market and give other companies an opportunity to take advantage of it.
At the same time, it also emphasizes the importance of P&G Daily Chemical Company to enter the market of European and American countries early. Only offense is the best defense. If P&G Daily Chemical Company attacks the city from behind, then they will have no time to take into account the Chinese market.
In the previous life, it might have taken one or two years for the world's daily chemical giants to enter the country, but in this life, the domestic economy is developing very well, and it is estimated that they have already attracted their attention.
It has not entered the domestic market yet, probably due to the unfamiliarity, but the actions behind it should have started long ago, but the final decision has not been made yet.
Shenlong Automobile Company's overseas business has still achieved good results. Although the sales volume is only more than 6 million units, the average unit price has increased a lot compared with last year due to the entry of top luxury cars.
In the high-end automobile market, it has now entered a bottleneck period. Due to the huge pressure brought by DPCA, other automobile companies have also invested heavily in technology, and the gap has been shortened.
It is already a remarkable achievement that Shenlong Automobile Company can hold on to its high-end market share. This profit is still firmly in their hands.
The reason why the high-end models of Shenlong Automobile Company were so popular in the past was mainly because they caught the global automobile giants off guard and disrupted their position.
After one or two years of adaptation period, they are updating their models faster and faster. Although there is still some gap between them and Shenlong Motors, it is no longer as significant as before.
It is gratifying that DPCA's products still maintain obvious advantages in energy consumption, but this advantage is not a decisive factor in this era.
Because the current price of oil is very cheap, the first factor when people buy a car is not focused on energy consumption, but on the comfort of the car and other high-tech configurations used in the car.
Previously, Shenlong Automobile Company used a lot of advanced electronic equipment, coupled with its superior performance in terms of controllability and energy consumption, to quickly open up the situation in the international market and defeat other automobile companies.
Nowadays, because of many electronic equipment, Polestar has also begun to sell out, resulting in Shenlong Automobile Company's advanced level of automotive electronic equipment being no longer so obvious.
Fortunately, they have accumulated a good reputation before and gained recognition from the majority of high-end consumers. There is no obvious weakening trend in the high-end market.
In order to expand its operating income, Shenlong Motors is now vigorously promoting its mid- to low-end cars overseas. However, the advantages of mid-and low-end cars are even less obvious. Overseas sales have just exceeded 1 million units.
It is worth mentioning that the executive luxury brand car launched by Shenlong Automobile Company has been recognized by the world's top elites, with sales reaching 12,000 units.
Although the quantity is not large, the price of one is 30 million yuan, which is not affordable for ordinary people. The operating income of this alone has reached 360 billion yuan, which is quite shocking.
If the cost of this car is not very high, otherwise, if the price is reduced to about 10 million yuan, it is estimated that about 100,000 units can be sold worldwide.
However, this result still makes the entire Shenlong Motor Company very satisfied. The company's overseas operating income has exceeded 2 trillion yuan from 1.5 trillion yuan last year, and the net profit margin has also increased a lot, reaching 20%.
Net profit reached 400 billion yuan, of which the top brands contributed the most. Without the sales of these 12,000 top brands, the net profit margin would not only not be better than the previous year, but might also decline further.
Following Zhao Yi's instructions, Shenlong Automobile Company also launched a model priced at only about 50,000 yuan for the domestic market, mainly to meet the consumer needs of domestic people.
Although 50,000 yuan is still not cheap in China, Shenlong Automobile Company has no plans to lower the price, mainly to leave a certain market space for domestic cooperative automobile manufacturers.
Domestic automakers have launched many cars priced at around RMB 30,000 to RMB 30,000. If Shenlong Motors lowers their prices to the same price as them, these automakers may not be able to continue operating.
Even so, Shenlong Automobile Company still sold 500,000 such models in China, most of which were purchased by employees of Zhao Yi's companies.
Most of the domestic groups with strong consumption power are employees of his companies, especially those engaged in research and development, and their income is no less than that of self-employed individuals.
Although the domestic turnover is not worth mentioning in the total turnover of Shenlong Automobile Company, it is a gratifying phenomenon, and the output value it brings is not only the sales revenue of this car.
For example, automobile-related 4S store services, insurance, gasoline and other industries can all achieve good development, and the automobile accessories market has also begun to have some scattered companies.
Even with so many expressway companies built by Zhao Yi, more and more cars are now running on them, and the income of the companies operating the expressways has also begun to increase.
In the automobile-related industries, Zhao Yi's companies are all involved in it. Although automobile revenue is not outstanding, the added output value it brings cannot be underestimated.
Polaris Company has also achieved good results in the past year. Their turnover has officially exceeded one trillion yuan. This number is quite astonishing among consumer electronics companies.
The company's existing business has grown naturally with the market, and there has been no explosive growth. The international market structure is now basically stable, and the possibility of rapid growth is too low unless Zhao Yi comes up with black technology again.
But with the current technological advantages that Polaris has, there is no need to do this. It is impossible for only one company to have a high monopoly in the field of consumer electronics and black and white home appliances in the world. This is too difficult.
Now Polaris Company only needs to maintain its existing advantages in these fields, and then slowly improve its product chain and gradually encroach on market share.
However, since the current price of LCD screens is relatively high, if the price of screens decreases relative to residents' income, then there is still a lot of room for growth in this area of business.
It is not very realistic to just ask Polaris to deliberately lower the price of LCD screens. After all, as a monopoly operator, it still needs to prioritize ensuring its own profit margins.
However, if the price does not rise for a long time, as the scale of the global economy increases, people's income will show an increasing trend, then relatively speaking, the price of the screen will decrease, and the sales scale will gradually increase.
And because the scale of international trade is now much larger than in previous lives, coupled with the disintegration of the Bretton Woods system, the inflation rates in various countries have increased faster than in previous lives, and money is not as valuable as money in previous lives.
In fact, this trend also exists in China, and the purchasing power of money has begun to gradually decrease. This is one of the important reasons why Zhao Yi must resolutely expand his business scope to the general agricultural field.
The primary indicator reflecting the decline in the purchasing power of money is the increase in food prices. If the previous agricultural development model is still followed, food prices will inevitably increase due to the increase in labor costs and logistics costs.
However, if agriculture is operated according to the modern agricultural model of Tianji Agriculture and Animal Husbandry Company, the situation will be greatly improved. On the premise of increasing farmers' income, it can be ensured that the price of agricultural products will not skyrocket.
In the past, our people, whether in cities or rural areas, were actually in a state of semi-shortage of food. According to the experience of previous lives, this process will continue until the mid-to-late 1990s.
There are many factors that contributed to this situation. First, residents' income did not improve significantly during this period. Second, there was no obvious technological breakthrough in the process of increasing agricultural production, but only a wave of dividends brought by the liberation of the labor force.
It's just that such dividends are not sustainable. After all, when manpower is limited and there are no breakthroughs in technology, bottlenecks in agricultural production will easily come.
However, this life is different. Due to the rapid economic development, the income level of residents has achieved a very large leap. Residents' demand for daily food is much stronger than before, resulting in a significant increase in the price of agricultural products.
If food prices skyrocket due to the increase in residents' income, a series of problems will arise. In the secondary and tertiary industries based on the primary industry, product prices will also increase.
But you must know that compared with international currencies, our country's currency not only has no obvious exchange rate depreciation, but with the signing of some agreements, there will be an appreciation of the exchange rate in the future.
Under this circumstance, it is particularly important to keep the prices of my country's industrial products and services relatively stable. This is to ensure that our country will not lose competitiveness due to an increase in the exchange rate.
Against this background, Polaris' product prices have remained relatively stable. Of course, with the increase in production, costs are actually showing a downward trend, but it will not be particularly obvious.
Because labor costs are also gradually increasing, this part of the cost will also be reflected in product prices, but in general, the profits of Polaris' products are showing an increasing trend while the prices remain unchanged.
Of course, the ability to maintain this situation is also related to the lack of competitors for Polaris' unique products, otherwise Polaris would not be able to maintain high profits for a long time.
Therefore, Polaris's surge in performance is not due to existing businesses. Some businesses have even shrunk significantly, such as home game consoles and personal handheld game consoles. Compared with before, the sales volume has declined significantly, and the sales volume has dropped significantly.
This is an inevitable trend. The sales volume of these two game consoles has reached hundreds of millions. It is impossible to maintain the previous sales volume in this area.
However, although the sales volume of game console hardware has begun to decline year by year, with its huge ownership, Polaris' profits from game content are no less than those from the hardware, and even show a clear increasing trend.
Due to the recent increase in the number of outstanding games released by Polaris' game studios year by year, and the large number of global game companies using Polaris' Galaxy Universal Game Engine, the platform's content has experienced explosive growth.
The increase in game content has led to a significant increase in game players' funds for purchasing game content. Behind these growth data, there will be a part of Polaris Company's commission, 50% to 50%, which is not low.
In other words, even if the sales of these two game hardware are not good, with these numerous game contents, Polaris' revenue from games will not decrease, and there will be significant growth overall.
And this kind of growth basically does not cost much. Polaris's profit margin in this area will increase significantly, and it will make much more money than it did before simply selling hardware.
As for home appliances, due to the relatively mature market and the fact that LCD screens have long been sold to competitors, the price of home appliances in the global market has shown a downward trend year by year.
However, Polaris Company's home appliances have actually maintained relatively high profits before. Although prices have dropped a lot now, production costs have also dropped significantly. Although profit margins have decreased, they have been relatively slow.
As for the small home appliance business that Zhao Yi provided to Polaris Company before, due to the short period of time, Polaris Company launched fewer product types and the production capacity could not be increased all at once. This business is currently ignored.
However, if this area is really made the strongest, although it will not become the main growth driver of Polaris Company, it will form a useful supplement to Polaris Company's business.
At present, Polaris Company's sales in the field of small household appliances are 5 billion yuan. Although it is very inconspicuous in Polaris Company, if it were set up as a separate company outside, its performance would actually be quite impressive.
Moreover, currently there are not many competitors in the field of small household appliances. Polaris' profits can be well guaranteed, but this situation cannot last long.
Because the most important thing about small household appliances is creativity, in fact, the technical content is not very high. Now due to the rapid development of semiconductor technology, it is not particularly difficult to obtain the chips used by many small household appliances.
Precisely because the technical threshold of the small household appliance industry is low, it is impossible to maintain a monopoly for a long time. In order to get the most important piece of the pie in this area, Polaris must quickly expand its first-mover advantage.
For a few months in 1985, their main work was still on product research and development, and production and sales were just testing the waters to see if they were welcomed by the market.
The results are of course very gratifying, and will provide favorable data support for Polaris' rapid expansion in the field of small home appliances in the next one or two years.
In other words, in the next one or two years, Polaris needs to quickly increase product types and product update iteration speeds in the field of small home appliances, as well as achieve an explosion in output.
Only by quickly deploying these three aspects can you firmly grasp this market in your own hands before your opponents can react.
When the situation is determined, if other home appliance companies enter the market again, they will only be able to snatch the market share from Polaris Company. Although this process is very unfavorable to Polaris Company.
However, due to the first-mover advantage, the process of snatching will definitely not be smooth sailing. Although the share may continue to decline and the sales price will also fall, Polaris has already eaten the meat that should be eaten.
What ensures Polaris' operating income is actually their new business, personal handheld computers, which are the various tablet computers that were often seen in previous lives.
Since in this era, the launch of tablet computers requires a lot of high-tech support, Polaris is completely in a monopoly position in this business and has no competitors.
And according to Polaris Company’s prediction, there may not be any strong competitors in the next three to five years. After all, many of the technologies used in tablet computers are unique to Polaris Company and are higher than those on the market. A big chunk.
Regardless of foreign sales, domestic sales revenue has reached more than 200 billion yuan, with the main contribution coming from Chinese education companies and Chinese medical companies.
Although the unit price has been suppressed very low and the functions are all simple, which means that the profit margin of a single unit is very low, it has at least impacted the production of Polaris and reduced their overall production costs on tablet computers.
The sales volume abroad may not be comparable to that in China, but due to the relatively high price, the sales volume is still very gratifying. The price of a single unit reaches 2,000 yuan to 2,500 yuan. The memory size of the device is different at different price points.
Due to the uniqueness and perfect industrial design of the tablet computer, it was recognized by consumers around the world as soon as it was launched. Although the sales volume is not comparable to that in China, it still reached more than 30 million units.
Based on an average sales price of 2,200 yuan, foreign markets have also created operating income of more than 66 billion yuan for Polaris.
This is because Polaris needs to meet the needs of Chinese education companies and Chinese medical companies and ensure priority in supplying products to these two companies, resulting in a significant reduction in the number of products supplied to foreign countries.
According to Polaris' estimates, in the next year, the global sales of tablet computers will reach 100 million units, which will create huge profits for Polaris.
However, Zhao Yi has reservations about this, because in order for tablet computers to be more useful, they still need the Internet, and the current international Internet development speed is obviously slower than that in China.
Thinking about it conversely, if hundreds of millions of units are really sold without a perfect Internet environment, it means that the owner of this product has great vitality and the future money will be unlimited.
The reason why tablets are so good to buy is mainly because they can be used as a substitute for personal computers. At the same time, there were no smartphones at this time, and the market capacity of tablets has not been replaced by smartphones.
Moreover, tablets are not like home game consoles and personal game consoles. The iteration speed of tablets can be very fast. If you really want to speed up, you can basically upgrade it once a year.
In other words, in the tablet market, consumers will have a relatively short time to replace products. It is basically guaranteed that the replacement rate will reach 50% in three years, and the replacement rate in five years will be basically 100%.
According to Polaris' estimates, the global tablet market is approximately 400 million units, and with the growth of the global economy, this figure will continue to increase.
Calculated based on the total scale of 400 million units, excluding new demand, the number of equipment replacements will reach more than 100 million units. This is simply a gold mine.
In order to maintain its advantage in this area, Polaris has spared no effort in the patented research and development of tablet computers, just to block the way of competitors and make them subject to others.
In 1985, Polaris' total operating income was 1.2 trillion yuan, its net profit margin was 30%, and its net profit was 360 billion yuan.
The increase in net profit margin mainly contributed to the revenue from game content, followed by tablet computers. Finally, many products have been produced on a large scale for many years and costs have also been reduced, which has led to a sharp increase in net profit margin. (End of chapter)