Chapter 284 Competitive Strategy
DePriest sneered:

"You're confident?
The reason why our sales are sluggish is not because there is something wrong with our products, nor is it because our products are not sophisticated enough.

Boys, you know, are a bit rough.

Because of anti-war!
We can't advertise anymore!

Our publicity has suffered!

We were boycotted by the relevant people!

Boys can't really resist their parents and the adults around them, can they?"

Wang Yuanchao was a foreigner, so DePriest had no scruples and told the truth.

Wang Yuanchao remained calm:
"Of course I know.

I don't think that a more exquisite soldier can change the market.

Just like you said, boys do pay attention to these details, but not as much as girls.

So my approach is the market approach.”

DePriest's eyes twitched. It was so rare for a foreigner to realize this. How about listening to it?
The pressure on him is indeed a bit too much.

Why should you refuse friendship that comes to you?
If not, the cooperation will end at the end of the period.

If it works, well, whether it works or not, the initiative is in Hasbro's hands.

So he asked sincerely:

“So when will Blizzard be able to fully schedule production?

What is the price again?
How can we ensure that the quality of large-scale products is consistent with the current samples? "

Wang Yuanchao smiled and said:
"Boss, don't you care about my method?"

DePriest stressed:

"Vice President.

Whatever your idea, I need your assurance that Blizzard can be a qualified partner.

I don’t want Blizzard to fail to meet Hasbro’s cooperation requirements after I listen to your suggestions! ”

Wang Yuanchao clapped his hands twice and said:

"great!
Hasbro has grown to its current size and has become one of the top toy companies in the United States, competing with Mattel. It is indeed a company with credibility and vision. "

De Priest still knew something, and reminded sincerely:
“It’s impossible for us to completely outsource the production of our products, whether it’s Blizzard or Changjiang.

We can only import "accessories" because tariffs are low and we also need to maintain local employment in the United States.

I think we should have a common understanding on this point before we can continue the discussion.”

After hearing what the other party said, Wang Yuanchao began to understand why Changjiang’s offer was so low. It turned out that it was just some “accessories”!

"So, what can we purchase from Blizzard?"

DePriest said:

“We can source the most expensive, most complex doll heads.”

The doll head is indeed the most complicated part. The cost of producing it in the United States is very high. But in Hong Kong, even if it is higher, can it be higher than in the United States? Isn't the company's goal of reducing costs achieved?

Wang Yuanchao said:

“If possible, I hope the costumes and props of the product can be produced by Blizzard.

Although boys don’t pay attention to details, I think a sophisticated Joe will be more popular in the end.”

[Note: The soldier toy produced by Hasbro, the character's name is Joe]

DePriest thought of his own slightly rough clothing and said:
"Costumes are fine, but props are all molded in one piece..."

Wang Yuanchao followed closely and said in a caring manner:
“But once the mold is made, it still needs to be polished manually, and the labor cost in Hong Kong is much lower than in the United States, isn’t it?
Those props and equipment are too small and very labor-intensive. "

DePriest said:

"I can't make the final decision on this. I need to consult Cross, who is our purchasing director."

Wang Yuanchao smiled and said:
"Mr. President, I believe you can do it. Better products, better sales. Ultimately, the person responsible for sales is you, not him, right?
Can our Blizzard be more expensive than the United States? "

De Priest spread his hands and said:

"Wang, you win, but you have to tell me your price before we can continue."

Horton is very clear about the price of Special Forces Joe in the United States. As a foreign trader, Horton is also very clear about the tax costs. Even so, the price given by Changjiang is very low. According to Horton's estimation, it is only one-tenth of the production cost in the United States! The difference between the left and right will not be too big.

The average annual income per capita in the United States is 5300 US dollars, while the average annual income per capita in Hong Kong is about 2000 Hong Kong dollars. There is such a huge difference.

Even though Changjiang's price is only one-tenth of that in the United States, Changjiang is still very satisfied with the price.

They don't really take Blizzard, a small-scale competitor, seriously. If Blizzard quotes a low price at that time, they can just talk about it. With a scale like Changjiang, it is impossible for it to lower its price from the beginning, right?

But Wang Yuanchao despised Changjiang's low price! Changjiang's price was so high that he couldn't ask for a high price, but he still had to struggle:
"You know, our workmanship is quite meticulous, and we are planning to import a double-mouth injection molding machine from West Hans..."

DePriest said proudly:

“50%!
50% more than the Yangtze River!

Blizzard's quality cannot be priced that high.

As for introducing West Hans' machines, you will also save labor, right?
Wang, I am very sincere! " Depriest was eager for a straw that could solve the company's current sales dilemma.

Wang Yuanchao said leisurely:

"I have more than one suggestion!"

DePriest was not afraid at all. Was he afraid that you would give too many suggestions? He was afraid that you would only give one suggestion! One suggestion would be unreliable! He would feel more assured if he gave more! So he said:

"Aren't there also matching clothing and equipment for the product? Changjiang didn't get this order!"

Well, we must know when to stop. Besides, Wang Yuanchao himself doesn’t know whether his plan will work or not.

It is just like the ancient counselors who would provide their lords with three strategies: best, medium and worst. These strategies might be useful, but the implementation might go awry and might not necessarily succeed, but they would definitely have some effect.

Wang Yuanchao stretched out his hand and said:

"make a deal!"

DePriest also extended his right hand, and the two clasped it tightly.

Why did Blizzard's boss Wang Yuanchao want to talk to him alone?
No one wants to take credit for his work!
People just want orders.

Is it not production if it is produced for someone?

As the vice president of marketing, he has a say in how to make the product more marketable. Even the president would agree with his opinion. Making more money is more important!

Isn't he worried that Blizzard is cheating him?

Blizzard can only get a one-year OEM agreement from Hasbro at most, and then will be put on the industry blacklist by Hasbro.

He said that the price increase of 50% based on Changjiang's original cost is only about 5%, which is not a big difference.

If Blizzard's suggestions are really effective, then he will become the hero who turns the tide for Hasbro!
He couldn't resist the temptation.

The bosses of both sides laid the foundation, and then the people below began to discuss the details of the cooperation.

The specific product accessories, specifications, standards, requirements, prices, delivery, payment, acceptance, and so many other things are not something that can be negotiated in just a few days.
-
Naturally, the news also reached the people on the Yangtze River.

The scale of this order is so large that the annual profit exceeds 10 million Hong Kong dollars!
It's impossible for Superman Li not to care.

"Blizzard has few people and a small scale. How can they win the order at a high price?"

Changjiang could only inquire about this information, but no one could give him an answer.

Because no one knew what the vice president of marketing, DePriest, talked about with the boss of Blizzard in the conference room and then decided to cooperate with each other.

It can't be a kickback, right?

As Hasbro is the second largest company in the United States with sales of over 100 million US dollars, its vice president earns hundreds of thousands of US dollars a year, which is millions of Hong Kong dollars. What kind of kickbacks can whet his appetite? ?

Li Chaoren was unwilling to give up such a big order.

What if this competitor fails?
Li Chaoren thought of his old friend Lui Lok.

Lui Lok was transferred to Kowloon, and Blizzard's factory happened to be in Kowloon.

Do you want to cause some trouble?

But in the end, Li Chaoren, with a grin, gave up the idea.

He was still haunted by what happened last year and was afraid that if he opened Pandora's box again, things would get out of control.

He also knew what happened in Gaul in Europe in May, and the cause of the incident was not a big deal.

Now the influence of the north on the outside world is real. Any spark in Hong Kong may lead to unpredictable things.

To say the least, this kind of thing is ultimately disgraceful. He is a civilized, law-abiding businessman and a good citizen.

The markets in the United States and Europe are so big, just try harder.

Li Chaoren just thought about it in his mind and said to his relatives:
"Send more people to apply for jobs at Blizzard.

Be sure to send people with strong abilities and high loyalty.

It's better for them not to know each other.

Even if it's one, two, three, or five years!
We can afford to wait, we need to know Blizzard's secrets!

"

The reason Depriest gave to Purchasing Director Clos was: quality! Attractiveness!
Overall, the quality of Blizzard's products is indeed better than Changjiang's. In fact, the difference in production technology is not that big, but mainly in product design and aesthetics, Blizzard's products look more comfortable.

Wang Yuanchao's artistic skills and the cartoon characters in his mobile phones are just for show. He only needs to make some minor adjustments to the original products, and the look and feel will change a lot, making people want to get close to them.

Cross didn't have much objection to this, after all, he was not the one selling the toys.

The cooperation agreement between Hasbro and Blizzard has finally been finalized. Not only is the unit price high, but there are also more OEM projects. If Blizzard can meet Hasbro's order needs, it can easily earn a profit of 20 million Hong Kong dollars a year.

Twenty million!
Of course, if Blizzard, or Wang Yuanchao's strategy, doesn't work, then the cooperation will only last for a year. Hong Kong is so big that there are many OEM manufacturers.

There was no way the bet could be reflected in the contract, and there was no way DePriest could reveal that he was taking advice from someone else.

Isn't Wang Yuanchao worried that the other party will get the advantage and then break the contract? A 5% discount is also money!
First of all, their cooperation agreement clearly stipulates:
The first year is an experimental cooperation. If Hasbro's sales increase in the next year, the two parties will extend the cooperation agreement to 5 years.

In addition, Wang Yuanchao’s mobile phone recorded everything secretly.

If DePriest dares to go back on his word, he will then throw out evidence to ruin his reputation at Hasbro and even in the toy industry in the United States - stealing other people's wisdom and having no sense of contract. At present, the United States, at least on the surface, still attaches great importance to the spirit of contract.

By then, will DePriest be willing to take the risk?
So, a two-pronged approach, one light and one dark, is Blizzard's double insurance.

(End of this chapter)