An Wuyang asked about all the specific details. Only by fully understanding Nourishing Snow Reverse Time Ultimate Repair Cream could they formulate a marketing plan around it and set an appropriate price.
"To maintain moist, supple skin, data from three sets of comparative experiments showed that at least a 10% concentration of Bitter Orange Blossom Essential Oil must be added, and it must be used once every three days to maintain the corresponding level of skin moisture," An Huchun explained.
"For example, if it's used on June 1, it doesn't need to be used on the 2nd or 3rd. It must be used on the 4th, not on the 5th or 6th, and then again on the 7th. In other words, it's used once every two days," An Huchun added in detail, preventing the imprecise phrase "once every three days" from causing confusion or ambiguity.
An Wuyang frowned slightly. Although maintaining moist, supple skin only required a 10% concentration of Bitter Orange Blossom Essential Oil, it had to be used once every two days. That meant each person would need at least ten portions a month.
However, based on the extraction rate of Bitter Orange Blossom Essential Oil and the total area planted with bitter orange flowers at Tianjingyan Medicinal Herb Planting Base, the final output would definitely be insufficient.
So the production capacity of Nourishing Snow Reverse Time Ultimate Repair Cream meant it was destined to be in short supply?
That also meant hunger marketing!
And it would be genuine hunger marketing caused by insufficient production capacity, not deliberate manipulation.
"Dad, based on the Bitter Orange Blossom Essential Oil from Tianjingyan Medicinal Herb Planting Base, I think we could mix in some externally purchased Bitter Orange Blossom Essential Oil to reduce its effectiveness," An Wuyang explained.
"That way, we can demonstrate the excellent effects of Nourishing Snow Reverse Time Ultimate Repair Cream, while also making the relatively lower-end product cheaper and giving users who want to maintain moist, supple skin a more cost-effective option," An Wuyang added.
"We'll produce the new product at the lowest critical concentration. As for the name..." An Wuyang considered it briefly.
"We can call it Nourishing Snow Awakening Essence Repair Cream," An Wuyang said, coming up with another flashy name.
"Nourishing Snow" indicated that it belonged to the "Ningzhi Ruoxue" series. "Awakening" referred to its effect of restoring the skin's moist, supple state. "Essence" represented the product's grade, while "repair cream" naturally described its type.
Li Wenya immediately expressed her fondness for the name "Nourishing Snow Awakening Essence Repair Cream," because such a flashy name truly fit the cosmetic industry's style of naming products in a way that sounded impressive even when people did not understand it.
An Huchun did not object to the name. Although his engineering-minded way of thinking made him feel that it was too flashy and completely impractical, he understood the principle of majority rule.
His wife, Li Wenya, supported his son, An Wuyang. What could he say against it?
"So what price do you want to set for them?" An Huchun brought the topic back. He really did want to test An Wuyang with the question of pricing.
In fact, he had already come up with a pricing plan in his heart.
This was truly a textbook example of asking a question while already knowing the answer!
When An Wuyang had asked about it earlier, he had already been constantly considering how to set the price and how to market the products. Now that An Huchun had brought up the question again, An Wuyang already had a clear answer.
However, An Wuyang did not answer directly. Instead, he looked at Li Wenya. "Mom, the bag you're carrying today should be a Hermes Birkin 25, right?"
Li Wenya replied, "More precisely, it's a Togo Leather Birkin 25 in black with silver hardware."
Togo Leather was one of Hermes' material types. Black referred to the color of the leather, while silver hardware referred to the color of the lock and other metal fittings.
For Hermes, the price difference between the same bag made from different leather, in different colors, and with different hardware colors could be enormous.
"How much does it cost?" An Wuyang asked.
Li Wenya raised her eyebrows. "Are you asking about the boutique price or the actual market price?"
Before An Wuyang could answer, Li Wenya continued, "A boutique price of more than 80,000 yuan is meaningless. Their official website doesn't even list prices for Birkin products."
That was one of Hermes' distinguishing features!
After all, anyone who needed to check the price of a Birkin on the official website was most likely not an Hermes customer.
"If you want to buy a Birkin 25 handbag from an Hermes boutique, you first need to become one of their VIP customers," Li Wenya explained.
"To become an Hermes VIP customer, you need to spend around one million yuan, and the spending has to be on products that aren't bestsellers," Li Wenya added.
"Do you remember the Hermes globe I bought for you?" Li Wenya asked.
Li Wenya continued, "That globe cost 180,000 yuan. It was one of my admission tickets for buying the Birkin 25."
"Besides spending money on non-bestselling products to get an admission ticket, once the bag arrives, you also need to purchase some additional products at the same time. The required ratio varies by region. In Shengqing, we probably need to add another one to two times the bag's value," Li Wenya added.
Actually, the final allocation requirement did not matter much. An 80,000-plus-yuan Togo Leather Birkin 25 in black with silver hardware could be sold to a luxury resale dealer for at least 150,000 yuan as soon as it left the boutique.
Under such circumstances, of course a second round of bundled purchases was necessary!
In fact, this allocation ratio increased every year. In some regions, the ratio for popular, best-selling bags was even as high as one to four.
"..." An Huchun was speechless.
Wasn't this system far too complicated?
What did Hermes think consumers were?
Yet this very system had won consumers' approval. One had to admit that Hermes' marketing plan was highly successful.
An Wuyang understood it, however. He knew Hermes and was fully aware of its allocation mechanism.
An Wuyang had deliberately asked Li Wenya about Hermes. He was not merely making idle conversation. He wanted to learn from Hermes' allocation mechanism and have Wugengtian Pharmaceutical Group use a bundled-sales plan for its new products.
This would not only make more money, but also help Wugengtian Pharmaceutical Group sell some products that were difficult to move.
More importantly, Sodium Esomeprazole for Injection, which Wugengtian Pharmaceutical Group had lost out on during the Fifth Pharmaceutical Centralized Procurement, could also be sold through bundled purchases, allowing them to strike at their competitor, Caimai Pharmaceutical.
An Wuyang was not the kind of good-natured person who would take insults without responding or endure beatings without fighting back!
Sun Zhiming had repeatedly targeted and mocked him in the class group chat. An Wuyang had remembered every instance. He had merely been unable to retaliate because the time was not right, so he had chosen to ignore it.
Now, the opportunity had arrived!
How could An Wuyang possibly let him off so easily?
Furthermore, with the bundled-sales mechanism in place, Wugengtian Pharmaceutical Group would no longer need to sell its old factory, and the related layoff plan could also be suspended.
After all, regardless of what medicine they wanted to produce, anyone who wanted to buy new products made by Wugengtian Pharmaceutical Group using Bitter Orange Blossom Essential Oil from Tianjingyan Medicinal Herb Planting Base would have to follow the bundled-sales mechanism.
"Dad, you can't understand Hermes' sales plan, can you?" An Wuyang asked.
An Huchun replied firmly, "I really can't understand it. It's just a bag. How can it possibly get away with this?"
Before you continue