"Haha, what a great fight, how wonderful it is!"
"Not bad, it will be better if we fight longer, and we will make more money."
"Look, King Material is King Material. The name is quite impressive. The price can be lowered casually. How low is the cost of this horse? Their cost ratio cannot exceed 25%, right?"
"All the profits from our finished products are eaten up by these material manufacturers."
"Haha, there is only lower, not the lowest. If you don't believe it, look at Xiaomai Mobile Company"
"Xiaomai Mobile Company: He slandered, he slandered me!"
The internal actions of Qian Yin Technology are just a microcosm of the entire Chinese optical materials related industry.
As the price war between King Material and Fei Yang Optics has just begun, and the price reduction is beyond everyone's imagination, after a short window reaction period, many companies or groups have either begun to stock up, or have begun to quickly replace internal materials.
The first one to be replaced was not King Material or Fei Yang Optics, but Tian Le Material and Tian Feng Chemical, which ranked second and third.
When these two companies went through the first round of price cuts, they were not greatly affected because they followed up.
But in the second round of price cuts that followed, these two companies were severely affected. It can even be said that they were swept away by a shock wave like a mountain roar and a tsunami.
Tian Le Material immediately chose to follow up and bite the bullet.
Then, due to the rising costs of raw materials, labor, marketing, etc., King Material and Fei Yang Optics were oppressed above, and lower-cost Qian Jia Optics and Di Guang Optics were attacked below. It soon fell into a miserable situation where it was difficult to receive orders and existing orders were constantly cancelled.
They have tasted the bitter pill of the second round of price cuts and are already complaining.
According to their own internal evaluation, this situation does not take long. It only takes half a month for them to be unable to sustain it and enter the point where they lose one product for every product sold. By then, it will be a bottomless pit.
The situation of Tian Feng Chemical is similar to them, but also very different.
The same thing is that new orders are becoming more and more difficult and are basically extinct. Existing orders are also being cancelled, and even those that have not been canceled are still being called to communicate with them to cancel. The decline is faster than Tian Le Material, showing a cliff-like decline.
Because Tian Feng Chemical insisted on not following the second round of price cuts after following the first round of price reductions, and would rather not take orders.
In the current situation, if we are still so arrogant, which customer can bear it?
No matter how strong the relationship is, you have to get out!
"...President, Tian Feng Chemical Materials China Branch is currently unable to receive new orders. If we insist on not lowering the price, there will be no hope for subsequent orders."
At Tian Feng Chemical headquarters, a subordinate is reporting the situation to Tian Feng Zhangnan.
"..."
Tian Feng Zhangnan was silent for a long time, and nearly ten minutes had passed by the time he spoke. He asked, "How much of the order amount is still to be delivered? How long can it last?"
This subordinate had the data. When he heard the boss's question, he immediately replied, "There is still an order amount of 300 million, which can barely last for half a year if customers no longer cancel orders."
"Half a year?"
Tian Feng Zhangnan pondered, and suddenly uttered a sigh, "The wheel of the times is rolling forward, if you don't advance, you will die. Obviously, our Tian Feng Chemical materials, or more accurately, the optical materials industry, have made too little progress in these years, while others have made too much progress, so we fell behind and were crushed under the wheel of the times!"
Everyone below was silent.
Tian Feng Zhangnan is the third generation head of Tian Feng Chemical. The first generation is his grandfather, and the second generation is his father. They have grown and grown all the way. With the development of the times and the progress of society, they have reached the point where they are now, with business all over the world, and they are a prestigious super multinational giant.
Over the years, with the gradual rise of China, especially the rapid advancement of science and technology in recent years, Tian Feng Chemical gradually felt guilty and powerless as if he was cheating.
However, these are all invisible and are bad changes that may occur in the future, not the real reality.
Now, the emergence of Fei Yang Optics has turned this unreal reality into a real reality. For the first time, Tian Feng Chemical has felt the serious impact of China becoming stronger. Their optical materials business is in comprehensive trouble and is on the road to death.
Exiting the domestic market is the first step to come.
The situation in the future should be even worse!
Only Tian Feng Zhangnan can take this first step, and he can only take it.
"Eagle Country is unreliable!"
Tian Feng Zhangnan had a clear understanding and knew that he must have the determination of a strong man to cut off his wrist, so he felt his heart beat, closed his eyes, and slowly said his decision, "Within one month as the deadline, if the situation does not improve, the optical materials branch in China can enter the bankruptcy liquidation process!"
"Hai Yi!"
All the subordinates bowed quickly.
Tian Feng Chemical's actions were naturally not top-secret information and were quickly spread through various channels.
People in the industry couldn't help but sigh.
"This is Tian Feng Chemical. Is it going bankrupt just because it's said to be bankrupt?"
"Haha, I can't withstand the price cuts of Wangzhe and Feiyang. It's better not to do a big sale at a loss. Tian Feng Chemical This move is also a wise move!"
"How could Tian Feng Chemical go bankrupt? It's just a small department under Tian Feng Chemical. If it collapses, it will collapse. What's the big deal? Tian Feng Chemical is a super boss in a series of raw material industries such as luminescent materials and PI Material. There are so many profitable departments."
"Today we will cut five cities, and tomorrow we will cut ten cities. The one who destroys the six kingdoms is not Qin, but the Six Kingdoms!"
"Haha, Tian Feng Zhangnan should be the third generation of Tian Feng Chemical, right? It turns out that Tian is so careless and closes the door just when he says it will. It's really grand!"
Some say it doesn't matter, some say Tian Feng Chemical will go bankrupt sooner or later, but these are of no concern to Tian Feng Chemical.
"If you close it, close it. There will be one less competitor!"
After hearing the news, the CEO of King Material, Michael Roman, had no expression on his face and did not give any reaction. He was quite cold.
Because this was all what he expected!
King Material's bottom-line price reduction not only attacks Fei Yang Optics, but also simultaneously attacks the existence of low-end competing products.
As the boss of Zhong Zheng Company said, I sell at such a high price so that other companies in the industry can survive. Otherwise, as long as I lower the price, they will only die.
The same goes for King Material, which has maintained a high price for more than half a century. In fact, it is acknowledging the development of other low-end competing products, because the market cannot be eaten up by one person. It only needs to take most of the profits, leaving a small profit for other low-end competing products. In this way, the original profits are eaten, and part of the extra profits after the industry develops are also eaten. Why not?
But it doesn't work now, because Fei Yang Optics is out, which can replace it.
There is no room for two tigers in one mountain!
If Fei Yang Optics is not dead, it will die, so it must first take in the part of the market that was originally given up, so as to prepare for long-term competition with Fei Yang Optics.
How to eat?
Price reduction!
As long as the price is lowered, other low-end competing products will have no other choice but to die.