Reborn since 1993

Chapter 618: All roads lead to Rome

When they suddenly heard Li Dongling's words, Qi Ming and Gu Dayang were both obviously stunned, and then their faces suddenly turned red. These words were really too stimulating.

After being stunned, Zhang Xiaocheng couldn't help but recall what Li Dongling said to him when Torch Group formed a legal team. At that time, Li Dongling said that we should not have too much expectations on the old European side. Those people might not be willing to listen to reason alone!
And now, the experience of the legal team represented by Gu Dayang in old Europe has also proved Li Dongling's judgment.

The so-called Western gentlemen can pretend to be gentlemanly when their interests are not harmed, but when their advantages are gone and their interests are harmed, they immediately show their barbaric and robber side and don't follow any reason at all!
For both Gu Dayang and Qi Ming, it was unimaginable how shocked they were when they heard Li Dongling's words.

In their subjective consciousness, they have a certain degree of awe towards the giant companies in old Europe, as well as the European Trade Commission, the old European Union Court, etc., and they always want to convince others with reason.

But now, Li Dongling pointed out another way for them, that is to overturn the table and directly defeat the old European lighter manufacturers such as Bic and Dupont. The plaintiffs are all bankrupt. If old Europe does not use domestic lighters, where else can it use?
Qi Ming has not had much dealings with those foreign congressmen, companies and the like. Now he has only one thought in his mind: How the hell can he play it like this?
"Is this...is this appropriate?"

Gu Dayang, who has studied law for so many years and has been a lawyer for so many years, has always followed the rules. When he couldn't win by following the rules in old Europe, he became a little desperate.

But now, Li Dongling told him that since old Europe did not follow the rules, there was no need to reason with them. It all depended on who had the harder fist!

“Of course, this does not mean that Torch Group will terminate negotiations with the Old European Lighter Association.

Torch Group's goal has always been simple: to get European lighters to withdraw their anti-dumping lawsuit against domestic lighters so that everyone can compete fairly.

Li Dongling said, "We have to resort to this desperate measure. Selling Torch Group's lighters to old Europe is just a small "response" to the lighter manufacturers in old Europe.

Next, Professor Gu will need to continue negotiating with the Old European Lighter Association to obtain the due interests for the Inland Lighter Import and Export Association!"

Zhang Xiaocheng, Qi Ming, Gu Dayang and others were all lost in thought. They knew that Li Dongling's approach seemed to be the only viable option at the moment.

It is obvious that the European Lighter Association, composed of old European lighter manufacturers such as Bic, will not give domestic lighters a way out. There is no reason at all. It is useless to rely on words alone. We can only rely on fists to see if they can fight their way out.

“But how can Torch Group’s products enter old Europe?”

Zhang Xiaocheng asked a question of concern, "Once Torch Group's lighters enter old Europe, they will be subject to high anti-dumping tariffs. Compared with local lighter brands in old Europe such as Bic, Cliff, Dunhill, and Grasshopper, they will have no advantages at all!"

“All roads lead to Rome!”

“Wealth and silk touch people’s hearts!”

Li Dongling looked at Zhang Xiaocheng and said, "There is not only one way to go in this world. As long as there is profit, there is no shortage of adventurers."

“If Torch Group enters the markets of old European countries directly, it will definitely be fined and charged high tariffs.

But if Torch Group is just a manufacturer and has old European dealers who buy Torch Group's lighters and sell them all over Europe, does Torch Group have the right to interfere with them?"

Zhang Xiaocheng was confused for a moment. He knew each of these words, but when they were put together, he couldn't understand them.

"Parallel imports?"

Gu Dayang frowned and uttered a word.

"No!"

"That was just the personal behavior of the local dealer and has nothing to do with Torch Group!"

Li Dongling firmly denied it, saying that Torch Group would never do such a thing as smuggling parallel goods. Wouldn't that just cause trouble and give rise to gossip?

“Torch Group can set up sales companies in Russia and Eastern Europe that are not members of the European Trade Commission.

Torch Group is just a lighter manufacturer. Since Torch Group has failed to enter the old European market, the old European lighter market has nothing to do with Torch Group!
As for the users, whether they purchase lighters from Torch Group’s sales companies in Russia or other places for their own use or to sell them to other places and at what price is their personal behavior and has nothing to do with Torch Group! "Although this was a bit confusing, Zhang Xiaocheng and others understood that Torch Group sold lighters to Russia, Eastern Europe and other places.

As for whether the people in these regions will resell the lighters produced by Torch Group that they bought from the Russians to England, Germany, France, Italy and other places in order to make a profit from the price difference between marks and pounds, that has nothing to do with Torch Group.

The old European Trade Commission and the old European Lighter Association, no matter how long their arms are, they can't control the European Union countries, right?
Moreover, lighters are a niche industry after all. Manufacturers like BIC have some influence in old Europe, but they can't let Germany and other regions go to war over a lighter!

"According to last year's data, the number of lighters imported from China and overseas, plus the production of local lighter manufacturers, the annual lighter consumption in the old European market is between 700 million and 900 million!"

"Old European lighter manufacturers such as Bic sell lighters of the same specifications as Torch Group for between 4 and 5 US dollars. Their production costs in Europe are the lowest, no less than US dollars, and even more than US dollars.

Moreover, in many old European supermarkets such as Carrefour, lighters are rarely sold individually, but usually sold in sets of five or ten lighters! "

Li Dongling seemed to have said nothing, but also seemed to have said everything. What would happen if the Torch Group started selling lighters for two dollars or even one dollar in places like Russia?
The old European manufacturers produce an ordinary lighter and their prices are higher than those of the Torch Group. What the hell is going on?

And if you buy a lighter from Torch Group's Eastern European sales company and resell it to old Europe, you can make a profit of one dollar, or even two or three dollars. Considering that old Europe consumes more than 700 million lighters a year, will there be scalpers, dealers, or even gangs in old Europe who are eyeing this piece of meat and reselling lighters?
Of course, with this, the lighter manufacturers in old Europe will basically be ruined, but whether they are ruined or not has nothing to do with the Torch Group. Anyway, they will not allow the Torch Group to enter the Western European market in old Europe.

If lighter manufacturers like BIC bow their heads, admit defeat, and reconcile with the Torch Group and work out a countermeasure, it would be fine. Everyone would still have a chance to play together in the old European market. If they don't compromise, then they should just die.

Once they are dead and the plaintiffs who sued for dumping of domestic lighters are dead, Torch Group can just come in and take over the territory.

As for whether we need to worry about the flooding of fakes in the old European lighter market in the future, there is no need to worry at all, because the production cost of fake lighters is higher than that of Torch Group!
Torch Group is now concentrating the upstream and downstream industrial chains of lighters in the Torch Group Industrial Park. The cost of producing a lighter is now around RMB 0.5, or about USD 0.06.

This is achieved by relying on the domestic entire industrial chain, and also because the current labor costs are not too high.

In Japan, South Korea, old Europe, America and other places, the labor cost alone is higher than the production cost of Torch Group.

In the past, domestic lighter manufacturers were in a state of internal competition, and the wholesale price they supplied to old European distributors was US$0.06. Even at the lowest price, the supply price was US$0.03.

It is equivalent to earning hard-earned money. Sometimes, you even lose money on every cigarette sold, and rely on foreign exchange subsidies to make a profit. Selling domestic lighters to foreign exchange buyers does not make any money at all, and the bulk of the money is earned by the old European dealers.

But now, Torch Group has taken the lead in establishing the Inland Lighter Import and Export Association. Although many domestic small lighter workshops can no longer easily accept orders from overseas lighter manufacturers and have many complaints about Torch Group, the profits of domestic lighter manufacturers have skyrocketed after the internal competition has become less serious.

"I think we can give it a try. Ending war with war will bring peace. One punch will prevent a hundred punches from coming!"

Zhang Xiaocheng hammered the table hard and said.

"Not only will Torch Group enter the Russian and Eastern European markets, but it will also start trying to enter Southeast Asia, the Middle East, South America and other markets!"

"Torch Group will definitely go overseas. The market is there. Torch Group competes fairly and has not received any subsidies from the Hanxi provincial government. Why should Torch Group bear the reputation of anti-dumping?"

"In addition," Li Dongling looked at Zhang Xiaocheng, "the Inland Lighter Import and Export Association should also take action. Before Torch Group completes its overseas expansion, domestic lighter manufacturers should accept fewer overseas orders, or even stop accepting orders!"

In fact, China is already the world's largest producer of lighters, but it has been inward-looking before, and has almost become a free OEM for overseas lighter manufacturers.

Zhang Xiaocheng is the president of the Inland Lighter Import and Export Association. He has the right to issue industry "suggestions". As for whether domestic lighters will obey his orders, that is up to the Economic and Trade Commission, the Foreign Exchange Bureau, the Commerce Department, the Customs Bureau and other departments that originally supported the Torch Group in establishing this association.

Not allowing those lighter manufacturers to accept overseas orders for the time being will definitely lead to criticism, but it is better to be criticized now than to work like slaves for overseas lighter manufacturers for decades in the future and be criticized for the poor quality of domestic lighters!

“This time, I don’t know how big a stir it will cause!”

After Qi Ming and Gu Dayang left, Zhang Xiaocheng smiled bitterly and said to Li Dongling.

(End of this chapter)