Small experience, big wealth

Chapter 28 (2)
Some Korean consumers are not used to buying a lot of goods at one time and using them slowly. They like to choose carefully and are not sensitive to prices.Wal-Mart's low-priced products are attractive, but low prices may bring defects in quality, which makes Wal-Mart lose its high-end customer base with strong purchasing power.

The failure of Wal-Mart in South Korea is also due to Wal-Mart's failure to set up stores near large residential areas according to the living and travel habits of Koreans.Due to the focus on the size of the store and low land costs, the general impression of Wal-Mart stores to Koreans is that they are farther away and less convenient than other supermarkets.

In addition, Koreans have a strong patriotic complex, they are more willing to choose Korean products, and they are more willing to enter stores run by Koreans themselves.

However, in the face of these unacceptable performances, the bullish Wal-Mart has not taken any measures to adapt to the Korean market, but expects consumers to change their habits and adapt to Wal-Mart's business model.As a result, in the face of aggressive competition from Korean local retail companies, bullish Korean consumers also ignored the bullish Wal-Mart.Korean consumers chose to give up Wal-Mart and go shopping in local supermarkets that are more in line with Korean habits.

The situation of Carrefour is very similar to that of Wal-Mart, and Carrefour's business process in South Korea is more rigid, and they rely too much on French-style management.From the general manager to the marketing personnel, and even the store staff are recruited from France, which not only increases the cost of personnel, but also because of language and cultural differences, it is difficult for French employees to understand and grasp the consumer psychology of Koreans, and they have no affinity. These factors lead to Carrefour Due to the rigid operation and huge losses, it had to be sold in the end.

The fate of Wal-Mart and Carrefour in South Korea once again confirms the importance of localization of operations.In today's globalization, market competition is not just a simple contest of capital.If they do not adapt to the needs of the market, ignore market characteristics and consumer habits, and stick to a single rigid business model, no matter how large the company is, how strong the capital is, and how powerful the brand is, it will still be turned away by bullish consumers.This may be the revelation of Wal-Mart and Carrefour's defeat in South Korea.

Why do KFC and McDonald's earn so much RMB in China?It is because they are good at observing the consumption habits of Chinese people, and pay attention to cultivating the eating tastes of children from an early age, so that their world-class junk food has been highly sought after by the Chinese people. The enviable realm of cramp.

This corresponds to a common saying in China: sing what song you go to on the mountain.

Business experience:
"Go to the countryside to ask the ban, and go to the temple to worship Buddha." The same is true for doing business. You must understand the characteristics of the society, the customs and customs of a region, and the customs and habits of a nation.In this way you can meet the needs of different consumers.

One key opens one lock, then we must prepare more keys for unlocking.

63. In the days without credit cards, the credit system of Americans can be said to be a credit system in the true sense, a financial system based entirely on credit.To apply for a credit card as an individual, you can apply for a credit card at any credit card issuing company with only an ID card and your social welfare number.No guarantor is required, no mortgage procedures are required, and no certification procedures are required.You can spend whatever you want, as long as you repay the overdraft amount within the stipulated time limit.

This kind of credit system is indeed convenient, but it is also dangerous. The financial crisis happening before us has nothing to do with this child's play financial system in the United States.

That day, I chatted casually with the tour guide, and I asked the tour guide: "I heard that you have only been in the United States for 7 years, and now you have more than 20 such station wagons. How did you start it in the United States?" The tour guide said without reservation: " At the beginning, I mainly applied for a credit card. I went to various credit card companies to apply for credit cards one after another, and then I bought my first caravan for tour guides. Then I used the newly applied credit card to pay off the expired credit card. Adding the money my tour guide earns, I desperately try to plug the hole formed by the advance payment, and when the tour guide earns more than the interest on the credit card, a virtuous circle is formed, and I start to make a profit." I asked: "If someone If you apply for a credit card, don’t pay it back after spending it, and then go to another company to reapply for a credit card, isn’t the credit card company losing money?” The tour guide laughed, and he told us a story about credit cards that happened in the United States:
There was an international student who came to the United States from India and his family conditions were relatively poor, so he applied for a credit card as soon as he arrived in the United States.He is like a poor man who became rich overnight. Since he got a credit card, his consumption has been astonishing. At the end of the month, he has no ability to pay back at all, but he is not afraid, because he has already learned the lesson when he applied for the first credit card. It's so simple, the first credit card doesn't work, so I just need to apply for another one.So he threw away the first credit card and took his ID card to another credit card company to apply for his credit card.

It turns out that there are industry associations in any industry in the United States, and the industry associations conduct unified management of various businesses in the industry.The Credit Card Association conducts unified coordination and management of companies that issue credit cards across the country.Once the credit card issuing company finds a customer who does not abide by the credit system, it will immediately notify the credit card association, and the association will notify all member units of the person's bad credit record, and the bad credit record will be kept in the registration center for 7 years.In other words, for a bad credit record, you will pay an opportunity cost of 7 years.

Now this Indian student is miserable!He went to more than a dozen credit card issuing companies, and they seemed to be in collusion, but none of them were willing to issue him a new credit card. Indians were still wondering: How do they know that I have not kept my word?

This Indian student can no longer survive in the United States.Because the automated communication system in the United States is extremely developed, whether it is shopping, traveling, paying various fees, taking a car, refueling, etc., almost all settlements are completed by swiping credit cards, which is very convenient.Especially some automatic equipments only accept credit cards but not cash. Without a credit card, you cannot use this equipment and enjoy a modern and beautiful life.What's more serious is that Americans also pay their salaries through credit cards. If you don't have a credit card, how can you get your salary?
In the United States, if you don't have a credit card, you can't go out at all, and you can't move an inch.The United States is known as a country that lives on wheels. Everyone has a car, and if you have a car, you have to refuel. Most of the gas stations are self-service gas stations that are paid by credit card. There is no one on duty. You can’t refuel without a credit card. Without gasoline, your car can only lie down, your car can't run, how can you go to work, how can you work?How can you live without a job?

So, no one in America would risk their credit.You lose your credit, you lose your chance to get a foothold there, you can't survive there.

Business experience:
At present, China has begun to register bad credit records. Although it is not as perfect as the United States, it has already started after all.People who do business must put credit in the most important position. Once they lose credit, they will not be able to find a foothold in the business circle.

America's today will surely become China's tomorrow, and you must be mentally prepared for this.

64. The American equipment that is not produced in the United States Liu Jiren, the founder of Neusoft Group, said: "Innovation is the soul of our nation. The development of any enterprise comes from innovation. In fact, the development of each of us also comes from innovation. Everyone They all take their own different routes and have their own unique designs, but everyone’s results are the same, and I think innovation is behind this result.” The sales volume of Manit’s automatic monitoring system for environmental protection accounts for Half of similar products, but this company has a very peculiar phenomenon. In their huge company, there are development department, technology department, support department, sales department, after-sales service department, assembly workshop, testing workshop, auxiliary workshop, but There is no production workshop.

Later, Mr. Liang Beiping told us: "The most important work of our company is research and development, followed by assembly and testing. We do not produce all kinds of spare parts required by the equipment. The company invites bids all over the world, not only The technology is required to be the most advanced, and on the premise of the most advanced technology, the price is also required to be the lowest.” I asked, “What should you do if a large order comes suddenly?” Liang Beiping said, “This kind of equipment is not related to People's food, clothing, housing and transportation are closely related, so it doesn't matter how big the order is, it's not that urgent, it's just that the delivery cycle is a little longer. And we generally guarantee a minimum inventory. Under normal circumstances, the company mainly organizes according to the order quantity Production. At present, in the world, the logistics industry is developing very fast, and the communication technology is also extremely developed, so it usually takes less than two months for many things from when we receive an order to when we place an order for spare parts and when we deliver to customers.” I said : "Many companies in the United States adopt this model. I have seen Nike in the United States also adopt this model on TV. They are more trouble-free than you. They are only responsible for product design and product sales, and all other processes are overseas. Finish.

"Liang Beiping said: "Yes, there are indeed many companies in the United States who do this. They only sell their brains, not their physical labor, especially high-tech companies.There are many advantages to doing this. First of all, in any other country in the world, labor prices are lower than in the United States, so transferring these parts needed for equipment to foreign production can reduce production costs; The cost of capital is reduced; in addition, in the market economy society, the social division of labor is becoming more and more refined. For the equipment produced by our company, in addition to the company's comparative advantage in design, in the production of spare parts, many majors in the world The large companies in the world have advantages over us, so the same things produced by them are not only better in quality than ours, but also lower in cost; in addition, the company can also reduce inventory, which reduces storage costs and improves capital utilization Rate..." I said: "You have missed a more important benefit. Liang Beiping asked: "Really, what is it?" ’ I said: ‘It’s more conducive to preventing the proliferation of technology. Liang Beiping slapped the table several times with his hand and said, "Yes, yes, yes, this is absolutely true."

All the spare parts of our equipment come from abroad. There are 13 countries in total, and more than 30 companies produce for us. The workers in some companies who are engaged in production on the front line only need to produce according to the drawings. They have no idea that this thing will be sent. Where and what it is used for, this creates a very large technical obstacle for counterfeiters, making it difficult for our technical secrets to spread out. Another friend who went with us took up the conversation and said: "When we were in China, we often mentioned the revitalization of national industries. In fact, the trend of economic globalization has become more and more obvious now, and pure national industries do not exist at all."Let’s just talk about our auto industry. Many brands are foreign, and product design, cutting-edge technology, and special materials are all from abroad. Our place is just a production plant. "Liang Beiping said: "Yes, our domestic profit model is exactly the opposite of that of the United States. Most of the sales are manual labor, while high-end technologies are always monopolized by foreign countries. Compared with Europe, the gap is still very large. "Standing in the assembly workshop, looking at these American equipment that are not made in the United States, we Chinese have an indescribable feeling. Our country has always wanted to become the world's largest manufacturing power, and it seems that there is still a long way to go. Long, there is still a long distance to be crossed between a big manufacturing country and a strong manufacturing country.

It doesn't really matter how much business is sold or how much production is produced. The key depends on who owns the technical secrets, and whoever holds the technical secrets is the biggest winner.Those who don't have technical secrets are just making wedding dresses for people.

Coca-Cola is just a piece of paper in his hand, and the paper is just the secret recipe of Coca-Cola. This recipe is like a machine for producing money.The factories that produce Coca-Cola all over the world pay cheap labor, but the high monopoly profits go into Coca-Cola's pocket.

Therefore, no matter what kind of company your company is, you must learn to protect your own business secrets. If you own your own business secrets, you will have your own monopoly profits.

(End of this chapter)