Reborn since 1993
Chapter 631: Driving the tiger and swallowing the wolf
Chapter 631: Driving the tiger and swallowing the wolf
After sitting down, the atmosphere was silent for a while, and neither side spoke for a while.
Zhang Xiaocheng glanced at Li Dongling, and seeing that Li Dongling did not show any reaction, he returned to his calm and composed posture.
Previously, it was the Torch Group that sent a team of lawyers to the Old European Lighter Association to beg for a settlement.
Torch Group gave Bick a chance, but it was useless!
Before, Bick and other companies ignored Torch Group. Now it is Bick's turn to come and beg Torch Group for a way out. They have to show the right attitude!
In the end, Antoine couldn't bear it anymore and coughed before speaking first. There was no other way. After seeing the lighter production capacity and cost control of Torch Group, Antoine no longer had any intention of dragging it out.
The Torch Group can be delayed, and the black label lighters that are wreaking havoc in old Europe can be delayed, but the BAK Group cannot be delayed. If it is delayed any further, it will be completely ruined!
"The Bic Group expresses its deep regret for the previous misunderstanding. This meaningless war should not have happened from the beginning!"
Listening to Antoine's nonsense, Gu Xiguang, He Heng, Wang Yongyu and others who had once participated in negotiations between domestic and overseas companies felt as if they had never seen anything like it before.
All the foreign company representatives they met in the past were arrogant and conceited. None of them behaved like Antoine did today.
"No one wants misunderstandings to happen, but the anti-dumping lawsuit against the inland was filed by old Europe!" Gu Dayang responded.
Antoine was hit in the face, but he tried his best to save face, "There are many members of the Old European Lighter Association, not just the Bick family!
But Bic is willing to step forward and resolve the misunderstanding between the old European and mainland lighter industries.”
"The price war cannot continue. The supply price of black label lighters is destroying the entire industry. With a supply price of $0.1, how much can the manufacturer earn?"
Antoine wanted to convince him with reason, but Zhang Xiaocheng, the president of the Inland Lighter Association, who was sitting opposite him, couldn't help but say, "But before, Bic, Japanese, Korean, European, and American lighter manufacturers left less than $0.1 in profit for mainland lighter companies, and even made a loss in supplying you!"
Antoine wanted to say something but couldn't. It was no secret that overseas lighter manufacturers had joined forces to exploit the domestic lighter industry.
But Antoine wanted to say that it was an internal conflict among domestic lighter manufacturers. In order to grab orders, they even took the initiative to reduce prices. Faced with the fat sheep delivered to their doorstep, could lighter manufacturers such as BAK and Nippon Benz not take advantage of it?
While Antoine was speaking, Rousseau, who was sitting next to him, was looking at Li Dongling and others who were sitting opposite him.
Especially Li Dongling, Rousseau discovered that Zhang Xiaocheng, Gu Dayang, Gu Xiguang, Wang Yongyu and others kept their eyes on Li Dongling from time to time. He understood who was leading the negotiations this time.
Listening to the arguments between the two sides, Rousseau gradually figured out what was going on. Seeing that both sides were arguing, Rousseau looked at Li Dongling and asked, "What exactly does Torch Group want?"
As soon as these words came out, Antoine immediately closed his mouth and looked towards Li Dongling.
Even people who were closely related to Torch Group, such as Gu Xiguang, Li Weimin, and Wu Yaoguo, all looked towards Li Dongling.
According to past experience, at this time, Torch Group should ask the Old European Lighter Association to withdraw its anti-dumping lawsuit against domestic lighters and allow domestic lighters to enter the Old European market.
But Li Dongling gave an answer that was beyond their expectations: "Pricing power!"
Li Dongling asked the people from the BAK Group to come all the way to Hanxi, definitely not for the purpose of asking them to withdraw the lawsuit or something. If it was really for that, Gu Dayang could have talked to them in Europe.
"The Torch Group wants disposable lighters, the pricing power and standard setting power in old Europe!"
Antoine's face suddenly changed. Within a few seconds, the blood color on his face disappeared without a trace, and turned into a bleak look.
Rousseau is not much better. No matter which industry, whoever controls the industry standards and pricing power controls the entire industry.
"The standards and pricing power were set by the Old European Lighter Association, not by Bick..."
"Then there's no need to talk about it!"
Hearing that Rousseau was still preparing to shirk responsibility, Li Dongling directly said, "Originally, Torch Group was going to leave a portion of the old European lighter market share to BAK Group.
But since BAK Group cannot make the decision for the Old European Lighter Association, there is no need to talk. Torch Group should talk to a company that can make the decision!"
Will opponents always be opponents?
Which one is more beneficial to Torch Group: a half-dead opponent or an unknown opponent?
It is true that the BAK Group is a rival of the Torch Group, but if the Torch Group wants to control the disposable lighter market in old Europe, and control it openly without worrying about being targeted, it will need some help!
Is there anything more useful to Torch Group than letting Bick be the guide, the comprador agent, and the old European traitor? It is the largest lighter manufacturer in old Europe. A few months ago, it was...
If it turns to Torch Group and becomes a lackey for Torch Group, then the old European market will basically open the door to Torch Group. Moreover, Li Dongling asked BAK Group to come to Hanxi not only for a lighter project.
Among the projects that Li Dongling has developed for Torch Group, the one that can truly determine the fate of Torch Group is the e-cigarette project!
Compared with lighters, which can only be regarded as a niche project, e-cigarettes involve more involvement and are more difficult to enter the old European market, so they need allies to cheer for the Torch Group and act as pawns and cannon fodder.
Moreover, Bic has been in old Europe for many years and is an absolute local tyrant. It has connections with all the major tobacco companies in old Europe. When the time comes, it will act as a lobbyist and it will be easier for the Torch Group to attract allies from the old European tobacco industry.
An ally who is half disabled and can only rely on the Torch Group is a truly good ally!
Hearing Li Dongling's words, Rousseau's face showed obvious surprise. He did not expect that Li Dongling was willing to leave a way out for the BAK Group.
Rousseau was originally still worrying about how to raise this issue with Li Dongling, but he did not expect that Li Dongling would actually bring it up on his own initiative.
What the Bic Group fears the most is that if they run into a fool, the Torch Group will not stop until it kills the Bic Group. That would be like a scholar meeting a soldier, there is no way to talk...
"How much market share of old European disposable lighters can the BYD Group retain?" Antoine asked cautiously.
"Then it depends on how far the Bic Group can go."
Rousseau and Antoine frowned. After thinking for a moment, Antoine said, "There are many manufacturers in the old European lighter market, and Bic is now seriously injured..."
"Bic lighters are not selling well, but manufacturers like Lifestyle, Dunhill, and Grasshopper, can still sell disposable lighters?" Li Dongling said with a smile.
Antoine looked a little embarrassed. Bic lighters could not be sold, but the disposable lighter business of several other brands was even worse and was almost forgotten.
"As I said just now, the right to set the standard for disposable lighters in old Europe and the right to set the price of disposable lighters need to be decided by Torch Group!"
“If BAK Group can help Torch Group achieve all this, 20% of the old European lighter market share will belong to BAK Group, and 10% can be given to companies such as Clipper, Dunhill, and Grasshopper.
In addition, the Mainland Import and Export Association can take orders from Bic and other old European lighter brands!" Li Dongling gave the bargaining chip.
Rousseau and Antoine looked at each other. They felt that Bic got too little market share.
But Li Dongling's subsequent words made them dare not pull anymore.
"There is only one chance. If Bick is unwilling to accept it, Torch Group can seek cooperation with other lighter manufacturers in Europe or even America!"
"If a mainland lighter manufacturer were to manufacture for BAK, what would the price be?"
Li Dongling glanced at Zhang Xiaocheng, who said, "The Lighter Import and Export Association can provide OEM services to BAK Group at a unit price of US$0.5.
Torch Group hopes that in the future, the retail price of old European disposable lighters will stabilize at more than two dollars, and the retail price of windproof and moisture-proof lighters will be more than three dollars! "
The production cost is $0.5 and the selling price is $, which gives BYD Group room to operate and the profit is considerable.
If the retail price of old European disposable lighters can be stabilized at more than two dollars in the future, the Torch Group and domestic lighter manufacturers will supply ordinary black old European lighters at a price of more than 0.5 US dollars, and upgraded lighters such as windproof ones will be priced at one dollar.
This is equivalent to exporting lighters overseas, with ordinary lighters costing RMB 4 each and windproof lighters costing RMB each. For the Torch Group, the profit is already quite high. The lighter OEM factories that used to rely on internal competition to grab orders will no longer have to do so in the future.
As for the supply price of US$0.5 and the retail price of US$ or US$, the one or two dollars in between covers the costs of search, warehousing, and transportation, and also makes the old European lighter dealers, supermarkets, tobacco shops and other retail channels cheaper.
There is no way around it. We can't eat alone overseas. We need to feed these people so that we can form a profit industry chain with domestic lighters.
"We need to report to Mr. Bruno Beck and let him make the decision!" Rousseau and the other man stood up and said.
Li Dongling nodded and said to the two of them meaningfully, "Tell Bruno Bick that the lighter project is just the beginning of the cooperation between Torch Group and Bick Group!
A good ally may bring many unexpected benefits in the future!"
"I will tell Mr. Beake the truth!"
Rousseau didn't understand the meaning of Li Dongling's words, but nodded anyway.
(End of this chapter)
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