Chapter 148 Preparing to Dig a Big Pit

Since Ye Jianbin mentioned Xie Jiannan and Danjin Company founded by Xie Jiannan, the following topic will inevitably talk about the health care products industry that is in a hot and craziest.

The rise of the health products market in the entire 1990s started with Guangdong Sun God and Liaoning Feilong. The market model of Feilong Yansheng Baobao Liquid was the greatest success in the 1990s. Feilong Group did not build factories or invest assets, but insisted on the marketing cycle strategy of "advertising, market, and efficiency" to push Feilong Group to the leading position in the health products industry. Later, Giants, Sanzhu, and Hongtao K did not imitate Feilong's practice to the extent, using false and exaggerated advertisements to plunder huge wealth. The Danjin BioHealth Products Company founded by Xie Jiannan using the Xie Family Fund is just one of the big crowd.

1995 and 1996 were the peak of this craze.

However, most of the huge profits plundered by this model were swallowed up by the huge marketing network. When Sanzhu Group was the most bloated, the group had as many as 150,000 sales personnel, and Sanzhu Group's sales in 1996 were as high as 8 billion. To maintain this sales network normally, at least half of the sales (4 billion) would be consumed. However, in China in the 1990s, no private company could effectively maintain this sales network. In 1996, Sanzhu fell due to an accidental news event; Feilong Group was defeated in 1996 because of 200 million advertising funds and 80 million raw material funds; Giant Group eventually led to a financial crisis due to 40 million housing debts, causing the collapse of the entire group, and Shi Yuzhu struggled with huge debts.

Zhang Ke joined Longyu Trading Group and had the opportunity to study for an MBA. In the first half, he analyzed the failed, severely damaged and troubled companies. The health products industry in the 1990s was a necessary homework, and Xie Jiannan's Danjin Oral Liquid was also one of the classic cases.

Xie Jiannan's influence in business since childhood comes from the influence of the Xie family tradition. His management qualities are stronger than those of other entrepreneurs from the grass-roots background, but it does not mean that he can be more successful. Similar to other entrepreneurs in the health care industry, Xie Jiannan was very sensitive to the market but was negligent in management. Although Danjin Oral Liquid achieved market success, he was never optimistic about profits. This is probably one of the original intentions of Xie Jiannan to leave Danjin Company to Zhengtai Group to study abroad alone.

Only when Xie Jiannan was reborn and returned to China, he truly became one of the important figures in the East China Business Network.

Ye Jianbin was originally very interested in health products. He was very successful in his agency Ericsson. Sheng Xin naturally would not be satisfied with the status quo and was stagnant. In addition to stabilizing the communications market in East China, he began to consider other fields. However, after Zhang Ke's analysis, he knew that entering the health products industry was no longer the best time.

In 1992, when the health care products market just started, it was completely possible to squeeze in and make a fortune. Zhang Ke had no confidence in maintaining such a complex marketing network, but it was a little stricter in profit control. After making enough money, it didn't matter if the marketing network collapsed.

But now it has been the 95th year of the health care product market. Next and next year, the country will rectify the health care product market, and the health care product market will shrink significantly. At this time, if you squeeze in, you need strong technology, capital and management resources to be successful. Sheng Xin has many shortcomings.

However, Ye Jianbin and others are all caught up in the fanaticism brought by the magic of market strategy. They just think that the health care product industry is no longer the opportunity, and have not seen the bloody scenes that will appear in the health care product market in the next two years, so their reflection on the market is naturally insufficient.

Zhang Ke smiled slightly. In two years, let alone the health care product industry, the violent and bloody DVD player industry can also make them realize the courage and cruelty of the market. At this time, dogmas such as "no good products, there is no good marketing strategy" and "no good management, you will never be able to make profits" may not resonate with them. Since it shows the identity of a high school student, I am afraid it is not suitable to teach others with dogmatism.

Ye Jianbin, Ye Xiaotong, Shao Xinwen and others all saw Zhang Ke's amazing market planning ability. At this time, facing his high school student status, he could only explain himself with a business genius. Although he was shocked, he was not unable to accept reality. The question of whether to be a disciple was not entangled.

Of course, Ye Jianbin will never give up on pursuing new opportunities. He heard that Zhang Ke has not had time to pay attention to the sales of Ericsson 398 in East China during this period. Even if Jinhu is in a major adjustment, he has time to pay attention. He thought that Zhang Ke probably won’t focus on his high school studies. He is very interested in the “other things” mentioned by Zhang Ke before.

Although it took a long time to wait in Xie Wanqing's office, it was still long before dinner. Zhang Ke simply decided to take Ye Jianbin and his party to visit Aida Electronics Factory.

Zhou You accompanied Ye Jianbin, Ye Xiaotong, Shao Xinwen and others downstairs first, and Zhang Ke went to find Xu Si.

During this period, Zhang Ke even walked into Xinhaitong Building at a very small number of times, and there was no chance to be alone with Xu Si. Zhang Ke intercepted Xu Si in Jiang Wei's office: "Go to Aida Electronics, do you go and have a look?"

Xu Si patted his forehead, for fear that Jiang Wei, who was beside him, would see something abnormal, and said guiltily: "There are a lot of things in his hand. If it weren't for the person accompanying Sheng Xin, Sister Wan Qing, Mr. Zhou wouldn't be able to stop..."

Jiang Wei complained: "The finances of the three companies are piled on me, and capitalists have never seen you exploit people like this!"

Yuexiu’s financial problems are simpler. Anyway, it is a shell company, and the funds in the future are directly transferred to Aida Electronics’ account for management. However, the financial problems between Kumho and Aida Electronics have already given Jiang Wei a headache.

Seeing that Xu Si didn't want to follow Aida Electronics, Zhang Ke smiled apologetically, bowed and left Jiang Wei's office.

Seeing Zhang Ke leave, Jiang Wei sighed and said to Xu Si: "He is quite considerate to you."

Jiang Wei said this without any intention. Xu Si felt relieved when she heard it, and her beautiful face was covered with a layer of blush.

As soon as Zhang Ke and the others left, Song Peiming chased after him. The catering court decided to open for business in the next few days. The billboards were erected on the front door street, so the others were just there. As long as time was taken, Song Peiming would take a trip in person. I heard that Xie Wanqing, Zhang Ke and others had just left the company, so he didn't stop in Jinhu, so he quickly went downstairs and chased after him.

Chen Xinsheng's trip to Haizhou was also aggrieved. Think about the president of TI China, who controlled the market share of the domestic electronics industry, silently took a trip to Haizhou, and left Haizhou silently. Not to mention that local officials received it personally, there was no news from the Haizhou Daily in the middle of the crack.

Zhang Ke naturally knew how cruel the DVD player market would become after the sudden explosion. As long as there was no other interference, the future Xinke, Jin Zheng, Aido, and Wanlida will suddenly rise in the DVD player industry. It would be better to hold the trump card to the end, even Liu Minghui only knew that Aida Electronics had cooperation with TI, but only Zhang Ke, Ding Huai and Su Jindong knew about the specific content of the agreement with TI.

Zhang Ke also planned to register an agency in Hong Kong. The decoding chips were destined to be imported from Hong Kong in the past few years. Zhang Ke hoped that the difference between the price of the decoding chip agreement and the market price would be intercepted with the Hong Kong agency. At that time, no one could find any flaws in Aida Electronics' tax and financial situation.

When Ye Jianbin arrived at the only factory of Aida Electronics, which was in the west of Yilong Town, he was too small and had been walking around the factory for less than a quarter of an hour.

Su Jindong and Ding Huai were very energetic. They did not have as many chores as Zhang Ke. Ding Huai met Ye Jianbin and the others and said goodbye and left. For him, every second he had to fight. Besides, he was not interested in production and market content now.

"You want to use the DVD player?" Ye Jianbin asked Zhang Ke.

If you don’t ask for Haitai in the market in Donghai Province, you will naturally ask Sheng Xin. Zhang Ke will not hide it from him: "The small factory will ask Mr. Ye to take care of him in the future."

Shengxin's channels cover East China, and Ye Jianbin is also clear about the signs that the video recorder market has already emerged: he said: "Guangzhou and Shenzhen are very lively. It is said that they can replace video recorders. The sales of video recorders last year were about one million units. I think video recorders can share such a large market with video recorders, which is very promising. Shengxin has an agent for video recorders. When will you release products? Shengxin helps you build the market..."

Ye Jianbin asked the Marketing Department to conduct a survey. The Marketing Department made a prediction that the market capacity will reach 500,000 units in two to three years. Compared with the current price of the DVD player on sale in Wanyan, the market size has reached about 2 billion, which is already a pretty good market.

The huge profits of the core components are deducted, and the cost of a DVD player is only one-quarter of that of a video recorder. Of course, the most critical decisive factor in the early market is the source of the film. The day when the DVD player market really rises is the time when the video recorder market collapses.

"I think Sheng Xin should give up the video recorder business..." Zhang Ke smiled, without explaining much, and there was no need to explain. In three or four months, Ye Jianbin could see the changes.

Zhang Ke didn't want Lushengxin to invest in Aida Electronics, so his enthusiasm for describing the market prospects was naturally not as high as when he treated Chen Xinsheng. When it was time to have a meal, he pulled Ye Jianbin to the famous Xiaojiang Fish Restaurant in Yilong Town to eat Xiaojiang's special aquatic products.
Chapter completed!