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Chapter 560

~6 min read 1,176 words

Numerous Stars Electrical Appliances, with the support of Vast Sea, product competitiveness increased linearly.

He Jun seized the opportunity and proactively sparked a market competition internationally.

Facing Many Stars' frantic expansion, the decent home appliance companies in Little Japan failed to react and were caught off guard.

Panasonic couldn't bear it first and called He Jun.

"He Jun, what do you Many Stars want to do?"

"Do you really want to end up hurting both sides?"

"He Jun, why must we fall out over money, don't you think?"

"I think we should help each other, not harm each other, which would only benefit a third party."

He Jun had no time to waste words with him on the phone.

"Mr. Kohara, if you have time, come visit Many Stars."

"I think it can't be made clear over the phone."

Kohara Jiro indeed felt the pressure; now there are many home appliance companies in Little Japan.

Sony, Sanyo, Sharp, Toshiba…

Each has strong competitiveness.

The decent Many Stars that had been cooperating with Panasonic all along actually backstabbed them, which is really upsetting.

But even if it's upsetting, we have to endure it; Many Stars now is not the Many Stars of before.

Soon, he came running from Little Japan.

He Jun had been waiting for a while.

"Mr. Kohara, we meet again."

Kohara hugged him briefly, then bowed and expressed thanks.

This made He Jun feel a bit embarrassed.

But business is business, friendship is friendship.

Let's talk business.

Kohara lowered his posture greatly, as if meeting his own boss.

But the words he spoke were quite different.

"He Jun, shouldn't Many Stars stop this unnecessary competition right now?"

He Jun shook his head, rejecting it.

"Mr. Kohara, this is normal market behavior."

So there's nothing to stop.

"I think you should reflect well on why your development these past years has been so poor—maybe you haven't tried hard enough."

"You can't blame your failures on us."

"Look at Many Stars—we're living quite well."

Kohara was given a sharp retort by He Jun.

This person is too much.

"Mr. He, I came with sincerity."

He Jun asked curiously.

"Ah, what sincerity?"

Kohara was defeated by his shamelessness.

"Mr. He, is there really no friendship left between us?"

"We Panasonic have been helping Many Stars all along."

"Many of our patents we've given free to Many Stars."

"You can't do this."

Seeing that the teasing was about done, He Jun put away his smile.

"Mr. Kohara, to be frank, this really is our normal operation."

"There's no malicious price war."

"Honestly, our profits are really high."

Kohara didn't believe it.

"How could that be? The profit margins of appliances, we Panasonic know them inside out."

"Mr. He, please be serious; this isn't funny at all."

He Jun spread his hands.

"If you don't believe it, then forget it."

Kohara was helpless.

"Fine, even if I believe it, it's still no good."

"Then Mr. He, how did you manage that?"

The preliminaries were about done, and He Jun didn't continue beating around the bush.

"Because we're using Vast Sea's contract manufacturing."

"Mr. Kohara, you should also know that Vast Sea has built a huge factory in Te Qu."

"So Vast Sea's contract manufacturing prices have dropped a lot."

Kohara didn't believe it.

"How could that be?"

He Jun explained to him.

"Manager Xiao Yuan, going to Te Qu to build a factory now, the land hardly costs anything, electricity is very cheap, and labor is even several times cheaper."

"Moreover, there are tax benefits."

"Our production costs have dropped by a notch."

"And our Apple series is itself a low-end product, competing on cost-performance. Now that costs are low, we naturally need to lower prices."

"You say, should we do this or not?"

Xiao Yuan remained silent.

"Really? Is Vast Sea's cost really low now?"

He Jun nodded.

"Really, if you don't believe me, go inquire a bit."

"Do I need to lie to you?"

"Anyway, Many Stars intends to use this opportunity to expand the market."

"If Matsushita keeps up, we'll play together; if not, don't blame Many Stars."

"It's all for survival."

Xiao Yuan silently cursed.

"Shameless."

"However, if Vast Sea's cost is indeed low now, then Matsushita might as well set up a factory in Te Qu."

"Initially, cooperating with Vast Sea also poses no problem."

"Now, Matsushita's large quantity of parts and components are sourced from Vast Sea."

Thinking of this, Xiao Yuan no longer had the desire to stay.

He bade farewell to He Jun, then reported the situation to Matsushita.

Matsushita is now also thinking of ways to cooperate with Daxia.

First going to Te Qu to explore is also no problem.

"Then you go to Te Qu for an inspection; if feasible, we'll also give it a try."

Xiao Yuan hung up the phone and immediately went to handle the customs clearance documents.

Now customs procedures are much simpler, so he soon arrived at Te Qu.

Upon entering Te Qu, it was a desolate expanse with no trace of industrialization.

Only the cranes under construction in the distance told him that construction was indeed underway here.

Afterward he visited the Business Recruitment Bureau to learn about the preferential conditions.

What He Jun said was correct; this place is indeed favorable, but it's too barren—can they meet the conditions for running a factory?

He remained skeptical.

Afterward he went to Vast Sea; from afar he saw that huge factory and the workshops still under construction.

It really is huge.

After Xiao Yuan contacted He Jun and obtained the visitation permit, he entered the factory under the guidance of staff.

The Vast Sea staff accompanying him introduced the factory's current situation.

"Vast Sea now employs over 12,000 people."

"Our overall goal is to build a large factory capable of accommodating 100,000 people."

"The power supply here is very reliable."

"The roads have been built all the way to the dock."

"The supporting factories that cooperate with our Vast Sea are also under construction."

"Once they start production, our costs can be reduced further."

"You were introduced by Manager He; you should understand how great the benefit of cost reduction is for you."

"As our factory construction completes, our business will also expand rapidly."

"Now Vast Sea has already established offices in Yingjiang and Ouluoba."

"Soon, Vast Sea will become a global contract manufacturing service provider."

"Do you know if Mr. Xiao Yuan has heard of the Wandering Dragon game console?"

"The Wandering Dragon game console has already become our customer."

Xiao Yuan was being persuaded by the staff, feeling a bit pressured.

With the added advantage of cost benefits, more and more enterprises will choose contract manufacturing.

Moreover, choosing contract manufacturing can also free them from the burden of production, allowing them to focus wholeheartedly on technological R&D.

The other party's advantages will become increasingly evident.

So Matsushita, should we still come here to set up a production line?

Or should Matsushita directly shift to a contract manufacturing model?

Go in lightly equipped?

◈

End of Chapter

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