494 United Front
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Back then, Yue Sai, Ding Jiayi, and some other domestic brands were selling well in China.
However, those leading the way first bribed the media and hyped up the fact that these big foreign brands were so sharp that if they landed in the Chinese market, they would crush domestic cosmetics.
At the same time, relying on the wealth of foreign capital, they suppressed the upstream and downstream enterprises of these domestic brands in the country, causing difficulties in the operation of these domestic brands, and ultimately led to difficulties in the revenue of these domestic brands.
After that, it was these leading parties who led the way to negotiate with these domestic brands. However, the domestic brands that were suppressed by these big foreign brands were basically experiencing operating difficulties and their confidence was shaken.
So most of them followed the trend and sold their brands to these big international brands.
The first thing these big French brands did after taking over these domestic brands was to abolish the production capabilities of these domestic brands and let all these domestic brands disappear from the domestic market.
After more than ten years of continuous operation, real domestic brand cosmetics are hard to find in the domestic market. Even a certain treasure that was once the pride of Chinese people in the early years has now become a sub-brand of a big foreign brand.
This is the most common routine used by these international big-name cosmetics, and it is also an unfavorable routine.
But now that Guy has raised such a pointed question, is it okay to use this trick to deal with the ninth laboratory?
I’m afraid it’s not that clever!
First of all, this company's sales are so good, people are definitely not short of money.
Secondly, this company has its own unique skills. Its small molecule collagen can be said to be a treasure coveted by many of the cosmetics industry bosses here.
It is basically impossible to suppress their upstream and downstream operations.
Then you said you would use money to make mergers and acquisitions, haha, are you stupid? Will you be asked to invest in shares?
Furthermore, if this company is really short of money, as long as they raise their voice, countless banks and venture capital investors will rush to send money to them, so they are not short of money at all!
Even if it doesn't work, even if they want to sell, is it possible that you, L'Oreal, can still steal those American companies? Estee Lauder is not much worse than you, and when it comes to money, Americans have always been wealthy.
Besides, are Chinese people worse off than you? Nowadays, there are those rich locals in China. If you pick anyone at random, which one will not have a thicker waist than these big guys in France?
Therefore, it is simply impossible to use the previous tactics to deal with this Chinese company.
Guy's words were like a bucket of cold water, causing all the big guys present to fall silent.
Indeed, based on China's current national strength, it is basically impossible for them to rampage across China and use money to open roads like they did decades ago.
"Then what should we do? Just watch them steal our market share like this? In Western Europe alone, there are only about two dozen Laura boutiques, and they have already achieved such monthly sales. If they
Now that we have opened up sales channels across Europe, what should we do?”
Alvaro from Avène said angrily, while Allen from Chanel on the other side was even more anxious. In Europe, they only specialize in the perfume and cosmetics market, and L'Oreal is the leader, but it is different in China.
Relying on the reputation she has accumulated in the luxury goods field over the years, Chanel can also make a lot of money selling other cosmetics in China in addition to perfume.
"Forget about Europe, what should we do in China? It can provide us with profits exceeding tens of billions every year!"
Allen's words immediately silenced all the big guys present. Yes, the Chinese market is currently the best and most important market in the world. Even the markets in the United States and Europe are not as important as this market.
At this time, Guy's face was even more serious, because Allen's words were on point. In fact, it was L'Oreal who was most worried about losing the Chinese market.
Because L'Oreal's global sales last year were only 7 billion euros, and the Chinese market alone contributed more than 2 billion euros, accounting for one-third of their total sales.
Avene's Alvaro's mood at this time was almost exactly the same as Guy's, even worse than Guy's. Avène's annual sales were only 1.8 billion euros, and the Chinese market contributed half of it.
Just as bad as theirs is Frank of Dior. Dior sells more than 3 billion cosmetics in China every year.
Now that the ninth laboratory is here to disrupt the situation, it seems that their market share in China will no longer be preserved.
The pricing of the products of the Ninth Laboratory is even more abominable. In Europe and other places, the prices of this company's products are more expensive than everyone else's. To be honest, although everyone feels a little uncomfortable, they can still accept it.
After all, their prices are expensive, and they form a reasonable price range with other cosmetics companies, which also leaves a range for most consumers to choose from.
Although the sales of Lab 9 have been very hot recently, all the big guys present believe that this situation is not sustainable. It is just because their new products are on the market and everyone is curious about their products, so they buy them.
But if time goes by and their prices are still the same, many consumers will definitely choose alternatives from other cosmetics companies.
After all, the cosmetics of this company are too expensive, even more expensive than some big brands owned by L'Oreal, and consumers are the most realistic. After all, they have to bend to their wallets.
But the damn thing is that this cosmetics company sells its products so expensive in Europe, but it sells them so cheaply in China. The price is at least two levels cheaper than in Europe.
This is too much!
As a result, the price of this company's cosmetics in China is basically the same as that of these big French cosmetics.
The effect is better than yours, and the price is about the same as yours. Those Chinese consumers will only choose your French cosmetics unless they have brain problems.
If this is done, it won't be long before the market share of these French cosmetics in China will be taken over by the Ninth Laboratory.
The atmosphere in the tasting room has almost turned into a stagnant state, and everyone's mood is extremely heavy.
"What should I do? Are the prices going to be reduced in China?"
A representative of a cosmetics company whispered something. At this time, Chanel's Allen turned to look at him, and then sneered.
"What else can we do? If we don't lower the price, then no one will have to do it in the future."
Allen's words were very practical, but everyone felt their hearts bleed. If they didn't negotiate the price, they would be dead. But when they thought of lowering prices and giving profits to those Chinese consumers, they also felt their hearts bleed.
This is the most disgusting thing about these foreign grandsons. Except for a few of their so-called high-end brand cosmetics that really have special effects, other products in Europe are actually ordinary daily sales products.
The pricing is the price of ordinary goods. A bottle is only more than ten euros, or dozens of euros. Compared with the wages of local people, it is actually not expensive.
But as soon as it is brought to China, after layers of packaging, it suddenly transforms into a luxury product. Cosmetics worth more than ten euros in Europe cost hundreds of yuan in China, which is more than 20 times the price.
A lipstick that costs just a few dollars in Europe costs hundreds of dollars in China, and the price is also rising online.
But there are many consumers in China who are stupid and have a lot of money. For these foreign goods, the more expensive they are, the more they like them.
The more expensive these foreign cosmetics are, the fewer people can afford to sell them. Only when they sell them can they enjoy that sense of superiority.
This is the irrationality of Chinese female consumers, and their attitude towards luxury goods is a virtue. It is precisely because of the existence of these irrational and comparison-loving consumers that these European cosmetics and luxury goods
Brands are increasingly not taking Chinese people seriously.
And now the emergence of the Ninth Laboratory has forced these French cosmetics companies to adjust their future business plans. It seems that they will not be able to do it without lowering prices.
"Yesterday, the boss behind Laboratory 9 wanted to leave, but I stopped him. I think we should meet with him."
Guy took a puff of his cigar, blew out a smoke ring, and then said.
As soon as he said these words, all the big guys working on it were immediately shocked.
"What, he's in France?"
"Are you telling the truth?"
"This bastard has been hiding under our noses all this time."
"Guy, tell us, what kind of person is he?"
The big bosses and representatives of various companies present immediately became uneasy. The boss behind Laboratory 9! This guy is really mysterious. He is actually lurking in France quietly.
"Okay, what I said is true. I have made an appointment with him to meet here tomorrow. If any of you want to come, just come directly! But what I want to say is, our stance on this meeting.
We must be unified, and we must form a united front. We must raise our demands with him together.”
At this time, Guy finally took the lead as a big brother, while the bosses and representatives of other companies were still a little confused at this time, so they did not express their opinions.
But the grumpy Frank had a clearer mind: "Guy, what are your demands?"
"I think he should provide us with their small molecule collagen base solution. We need this product. Without this, we will all die sooner or later!"
Guy crushed the cigar in his hand into the crystal ashtray in front of him.
Chapter completed!