Novel Full Chapter 572 - Pressure.
Chapter 572: Pressure.
“Miss Li, do you want to engage in a price war with Luo Fang?”
Chai Zhiying was shocked. “But their primary product is the Chinese medicine drink. It is because of this Chinese medicine drink that customers are going to them. And while they are there, they also buy bread and cakes. At Sumir, we have no such drink.”
“It doesn’t matter, just do as I say.” Su Li simply said as she adjusted Su Bei’s collar.
Chai Zhiying nodded, “OK, I’ll call the Head of the Sales Department and ask him to cut all the prices down to the base price.”
At this time, Xiao Luo was already thinking about countermeasures. Although Luo Fang had the Chinese medicine drink, the main products of the two companies were still pastries and bread. If Sumir cut their price to the base price, although the customers would still buy the Chinese medicine drink at Luo Fang, most people would choose to buy the pastries at Sumir. However, based on Luo Fang’s economic strength, they had not yet reached the level of battling against Sumir in this respect.
‘How to face this next dilemma?’
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Sure enough, when Sumir lowered all of their pastries and bread to the base price, all the customers who had been pulled over by Luo Fang because of Chinese medicine drink went back to Sumir. Of course, they would still buy the Chinese medicine drink at Luo Fang, but it was the only product that they would buy. As for the pastries and bread, they all went to Sumir.
Some keen media have found a spark and started to report the market battle between Sumir and Luo Fang. They interviewed the citizens of Xia Hai at random on the street and asked them what they thought of the market battle between Sumir and Luo Fang.
“Views? Of course, just lay down on the sidelines and watch the outcome!”
“I have nothing to say, let them compete if they want to, that way we can buy cakes and bread for cheap.”
“I think that Sumir will have the last laugh. Although Luo Fang is very powerful in Jiang City, Xia Hai is Sumir’s home turf and has a large number of loyal customers. Luo Fang also relies on a Chinese medicine drink to temporarily suppress Sumir. However, since Sumir lowered their price, Luo Fang no longer has the leverage.”
“For me, Luo Fang will lose. First of all, the economic strength of Luo Fang is absolutely worse than that of Sumir; Secondly, the Chinese medicine drinks developed by Luo Fang have affected the sales of the health products of Huayao Group to a certain extent. So it won’t be long before Huayao Group will participate in this battle; Finally… Ahh just forget it, there would be no end if I continue. Anyways, in short, Luo Fang will lose!”
The interviewees either held the attitude of a passerby watching on the sidelines, or firmly believed that Luo Fang would lose.
“Old Xiao, what should I do? Your wife has set off a price war. We can’t win. If we go on like this, we would just end up selling purely the medicine drink. If this is known by our peers, we will be laughed at.” Zhang Dashan had been managing the Xia Hai branch of Luo Fang. And seeing that the situation was getting worse, he called Xiao Luo.
Xiao Luo just ignored the last part, he asked, “Are the sales of the drink high?”
“It’s high, but they are only interested in the drink. They don’t even look at the cakes and bread. After buying the drink, they would just go directly to Sumir and buy there. Although our drink brings huge profits, our main products are still baked goods.” Zhang Dashan replied.
Xiao Luo said categorically, “Then launch a promotion. Anyone who buys cakes and bread in our Luofang will get a Chinese medicine drink for free!”
“What the f*ck, why didn’t I think of such a simple method? Alright, I’ll do so.” Zhang Dashan ended the call and immediately implemented Xiao Luo’s plan.
Currently, the problem was not really the drink, but rather Sumir’s initiative to set off a price war and compete with Luo Fang through economic strength. Luo Fang certainly couldn’t afford to compete against it. It was absolutely not feasible to lower their price. So currently, the only thing they could do was to use their drinks to attract the customers.
Once the promotional activities put forward by Xiao Luo were carried, the customers weighed the pros and cons in their hearts, and felt that it was more affordable here in Luo Fang. They could not only buy the cake or bread that they needed, but also get the free drink. Therefore, Luo Fang was once again crammed with customers, the place of advantage switched again.
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When Xiao Luo went to Su Li’s apartment to enjoy his breakfast, he found that Shen Qingyan was also there, along with Chai Zhiying.
Dressed in a pure black corset uniform and silver-gray high-heeled shoes with crystal luster, Shen Qingyan walked towards him with graceful steps. She said, “Xiao Luo, your friend Zhang Dashan is really fierce I must say!”
“What’s the matter? Why are you angry so early in the morning?” Xiao Luo already guessed what the reason was, but he could only pretend to be unaware.
“What’s wrong?” Shen Qingyan’s hands rested on her hips. “He didn’t do well as a baking company so he reached out to the healthcare industry and snatched from our Huayao Group. Now tell me, why am I angry?”
Xiao Luo smiled, “He didn’t intentionally hinder the interests of your Huayao Group. You can rest assured that when Luo Fang stabilizes its foothold, he will definitely return this interest to you.”
“I want him to stop at once!”
Shen Qingyan was very aggressive. It was like she had a piece of cake in her hand, and as she was about to eat it, some thief stole it. She was very furious.
“I don’t think he can do it now.” Xiao Luo frowned.
“Then he shouldn’t blame me for dealing with his Luo Fang. Not only my Huayao Group, but also Renhe Pharmaceutical will join in. When the time comes, the whole Xia Hai will band together to deal with Luo Fang. By that time, ask him how much money he has lost!” Shen Qingyan said.
Xiao Luo didn’t speak anymore. He just went straight to the table and sat down to have breakfast. ‘OK, join in if you want, let’s see who will have the last laugh!’
“You’re not going to persuade your friend?” Su Li looked at him coldly.
“No need, he has his own considerations.” Xiao Luo replied with a smile.
“Consideration?” Chai Zhiying snorted coldly. “His Luo Fang will soon become public enemy. Just like everyone is saying, it will soon have no place in Xia Hai.”
“I don’t think it’s that serious.” Xiao Luo said.
“Ah… Do you really think that Luo Fang has the ability to survive under the three bans of Sumir, Huayao Group and Renhe Pharmaceutical? Don’t be ridiculous. I have already checked Luo Fang’s profile. The total assets of the company is 60 billion yuan, and the usable funds that can be used cannot exceed 2 billion yuan. Once the capital chain of Luo Fang breaks, they will have to borrow from the bank. But with the pressure from the three companies, there is absolutely no bank in China that will lend to Luo Fang.” Chai Zhiying outlined the future trend of Luo Fang.
Xiao Luo just smiled, “It’s no use telling me.”
“I know it’s useless since you two are good friends. But I hope that you can tell him these words and persuade him to withdraw from the market in Xia Hai as soon as possible, otherwise he will only suffer heavy losses.” Chai Zhiying said confidently.