Chapter 396: Electric Kettle

November 6.

He Jun's expansion plan was announced as over.

Meanwhile, the hidden dangers of He Jun's frantic expansion began to appear.

After the Hot Quick burst, sales began to return to rationality.

The global daily average shipment volume began to stabilize at around fifteen thousand.

Moreover, this sales volume is also subject to competition from other counterfeit enterprises.

Initially, to meet orders, they frantically expanded production capacity, reaching a daily output of about thirty thousand.

This is still due to the workers' lack of skill; according to He Jun's estimate, their maximum capacity could reach a daily output of fifty thousand.

Monthly output of one million five hundred thousand.

Although Hot Quick is a low-priced consumable, their current output is clearly excessive.

Moreover, it's a huge surplus.

If production capacity cannot be well utilized, the result will be a rapid rise in costs; if this problem is not solved, the company is likely to be dragged down.

He Jun himself had an idea: to counterfeit other products, change their appearance, and then they would be a mature product.

These products don't need to make money; as long as the production capacity is filled, it's fine.

He Jun took his plan to report to Yang Qing.

Although Yang Qing said he could handle the company alone, as a qualified, sensible manager, reporting is a basic quality.

Yang Qing actually had some worries that He Jun might not handle the series of problems brought by rapid expansion well.

But giving the management sufficient trust is a basic quality of him as chairman.

So he remained silent, waiting to see He Jun's handling results.

Today, He Jun finally arrived.

He Jun knocked on the laboratory door, and only after Yang Qing said 'come in' did he crack it open a slit.

He was sufficiently humble.

Standing at the door, he did not go any further.

"Yang Zong, I have some things here that I need you to help look at."

Yang Qing apologized to the researchers, then left the laboratory.

Returning to the office, Yang Qing hung up his lab coat, then sat down and poured tea for He Jun.

He said with a smile.

"Manager He, come have a cup of tea."

He Jun took the tea, took a sip at his lips, set it down, and then took out his plan.

"Yang Zong, sorry to trouble you."

Yang Qing took it with a smile.

"Manager He, actually it's not necessary; I'm entrusting Many Stars to you, which shows my trust."

"While saying that, his hand didn't stop; he opened the document and began to read."

These are just pleasantries, also called hypocrisy, but they carry great weight in social interactions.

Our social skills are mixed with too much scheming and power struggles.

While foreigners' such skills are often aimed at better serving corporate operations.

Yang Qing dislikes flattery and belittling others, but he has no objection to essential social skills.

Those who understand nothing and find everything unpleasant are callow youths; only by reasonably utilizing skills can one show a person's ability.

Soon Yang Qing finished reading, while He Jun waited anxiously.

After finishing, Yang Qing went over the entire plan once more, then continued to smile and speak in a consultative tone.

"Manager He, I think your entire plan is very good and can perfectly solve the problems we currently face."

"This is a very good operational plan."

First praise then suppress; it seems my coming was right.

He Jun breathed a sigh of relief, because he knew the following would be his own problem.

Indeed, Yang Qing's following words changed.

"However, I think we should deepen our efforts in electric heating."

"Like fans, alarm clocks and such, we can hold off on making them for now."

"Let everyone have a systematic impression of us."

"Deepen brand influence."

He had studied brand management in depth during this period, and quickly understood Yang Qing's meaning.

"Yang Zong, if it weren't for you, I might have made a mistake."

"I will immediately have people collect water dispensers, hot water kettles, etc., and then proceed to imitate them."

Yang Qing smiled and raised his hand to interrupt him.

"No need, our electric hot water kettle has already been researched and is undergoing testing."

"In this regard, I haven't done well enough and haven't communicated well with you."

"We are supposed to operate a brand; completely counterfeiting is somewhat embarrassing, so we need to have something of our own."

This brought He Jun a surprise.

"Yang Zong, what kind of electric hot water kettle is it?"

"Is it that kind of big stove?"

Yang Qing shook his head.

Just come with me to take a look.

The research lab over there is a bit strict, mainly because our performance has been a bit outstanding, and I don't know how many people are watching us.

Just in case, so I told you a bit late.

After the research lab completes the functional development, it will open up the information to you, letting you handle marketing planning and product template design.

Our research lab mainly handles functional development, while you handle industrial design and product aesthetic development.

Of course, the reverse is also true: you can also assign functional research tasks to the research lab.

This way both sides are relatively free.

He Jun has not been influenced by later generations, and present-day Gangdao also has no example of spinning off R&D independently.

President Yang, do you mean the company and the R&D department operating independently?

Yang Qing nodded.

The R&D department will need to do a lot of forward-looking research; if it's placed within the company's framework, it will greatly restrict autonomy.

He Jun didn't say anything; he's not familiar with this model, but we can try it.

In that case, his counterfeit plan can be improved a bit and turned into product development.

This feeling changes instantly.

Upon arriving at the research lab, Yang Qing took out a kettle, different from the common electric kettle nowadays; it has no large base and is more compact.

It looks like a completely different product from today's electric kettles.

Yang Qing poured in water and introduced it to him.

We've done an integrated design and added a temperature sensor; it can automatically trip, so no need to watch it.

In heating speed, it's only about a minute slower than Hot Quick.

He Jun felt this thing might be liked by the wealthy people of Yingjiang.

Now Western countries are all undergoing home electrification, with various appliances in every household.

So the acceptance of electric kettles will be high.

How about the cost?

This is the key point: if it's too expensive, we'd make it a luxury item; if the cost is moderate, we'd promote it as an ordinary household appliance.

Roughly around seventeen yuan; if the market performs well, after mass production the cost can be reduced by thirty percent.

Just like Hot Quick, because their demand for raw materials and components is huge, their bargaining power is great; now Hot Quick's cost has been controlled down to 3.8 yuan.

Compared to the initial 5.5 yuan, it's been cut almost in half.

He Jun quickly came up with a pricing plan in his mind.

If that's the case, we'll wholesale at 39 and sell at 79.

First we'll make a profit, then when counterfeit products affect us, we'll lower the price to swallow the market of the counterfeit goods.

Yang Qing opposes lowering the price; it can be used in a bayonet fight, but not in ordinary use.