Rebirth in 1989: Creating the Chinese Technology Empire

Chapter 28 Wal-Mart’s Courage: A Sky-high Price Transaction of US$21 Billion

Xu Dabao went to work, and Xu Huasheng was not idle either. He stayed at home and started designing the company's new products and preparing to expand the company's future product line.

Time flies so fast, and a month has passed before I know it.

During this month, air fryers were delivered continuously.Thanks to the efforts of Luo Xiangyu and Pan Yunqing, the daily output of Huaxia air fryers is now as high as 15 units.

This production capacity is already terrifying, and there is no need to continue to increase it.After all, according to this production capacity, 450 million air fryers can be produced in a month.

Production capacity has increased, and Huasheng Electronics has continued to deliver goods.After delivering large quantities of goods, Huasheng Group has more and more cash in hand.

Air fryers are now very popular around the world, and millions of air fryers in Walmart have long been sold out.Now they can only watch as Best Buy makes huge profits with air fryers in North America.

There are even second-tier dealers in some countries outside of North America. Those people buy air fryers in the United States and then sell them back to their own countries.

Such popularity has also led more merchants to come to Shenzhen to find Huasheng. Although their orders are not as good as those of Wal-Mart and Best Buy, they add up and the total order volume is also increasing.

Such an order makes Huaxia extremely happy. Money, this is all money.

At Wal-Mart's headquarters, an important meeting is being held.

Today's protagonist is Sam, who is holding a fascial gun, a new product of Huasheng Group, in his hand.

The global patent of the fascia gun has been registered. After the patent registration, Sam received the sample immediately.

"Everyone, I have just finished talking about the fascia gun situation. We have investigated and Huasheng Electronics has registered a large number of fascial gun patents around the world. We have looked at it with professionals. These patents are the same as those for air fryers. , a patent barrier has been formed that cannot be circumvented. In other words, in the next 20 years, the fascial gun will be the same as the air fryer. As long as it is not authorized by Huasheng Electronics, no company can produce this product. This product, It will be the same as the air fryer, one serving..."

Sam said seriously.After hearing this, everyone's expressions became serious.

What kind of business is the most profitable in this world? Of course, a unique business is the most profitable.

Look at the air fryer. It’s just such a small thing. It doesn’t have much technical content.But just such a thing with little technical content is now selling like hot cakes, turning an unknown Chinese company into a giant all of a sudden.

This is the power of monopoly, and this kind of monopoly is not illegal at all and is protected by law.

The content of today’s meeting is to discuss the exclusive sales rights of fascia guns.

"Twenty million units, this amount is too big!"

An executive couldn't help but said. 2000 million units are still fully paid, which is worth a total of 20 billion US dollars. Although Wal-Mart has money, it also has limited liquidity.

And with 2000 million units in stock at once, if sales are not good, the losses will be huge.

"Actually, 2000 million units is not bad, but three years of exclusivity is too little. If it is ten years, then there will be no problem. 200 million units of fascia guns a year, I don't think it is a big problem. And it cannot only be in North America. The exclusive sales rights, it is best to obtain the global exclusive sales rights. Even if you cannot obtain the global exclusive sales rights, at least the European market must be obtained..."

One executive said seriously, a suggestion that made many people nod.If the years are increased and the range is increased, it will not be difficult at all for Wal-Mart to sell 2000 million units.

In the conference room, everyone discussed it, and after intense discussions, they finally reached a unified plan.

An order of 2000 million units is acceptable, and full payment will be no problem before June next year.But three years of exclusivity was too short, they needed longer exclusivity, and the range had to be increased, and the European market had to be included.

"Mr. Xu, 2000 million units is no problem, and full payment before June [-]st is no problem. But we need ten years of global exclusive sales rights. After all, this volume is too big..."

Sam came again. When Sam stated the conditions, Xu Dabao and Xu Huasheng laughed.

"No, no, no, Mr. Sam, it's impossible for ten years. Five years, five years at most, and only the exclusive sales rights in North America. If you don't agree, we'll go talk to Best Buy..."

Xu Dabao shook his head and directly said a number.

Ten years of exclusive sales rights is too long. According to Wal-Mart's rules, the longer the exclusive sales rights last, the more expensive they will sell their products.

This is detrimental to the sales of fascia guns, and some things need to be measured.After all, the shipment price of Huasheng Electronics is fixed. No matter how high the selling price is, it has nothing to do with itself.The only thing that matters to me is shipment volume.

The fierce back-and-forth negotiations began, and Xu Dabao was not in a hurry, insisting on his terms and not letting up.

Sam tried various strategies, but in the end he discovered that Xu Dabao was unwilling to enter the market and only gave him exclusive sales rights for five years. However, Sam was not indifferent. Huasheng Electronics still made concessions in terms of scope.

Finally, after several days of negotiations, an agreement was reached.

Walmart placed an order for 2000 million sets of fascia guns, paying a 20.00% deposit first and then monthly installments, but all the money must be paid before June [-] next year.

The order gives Walmart exclusive rights to sell the fascia gun in North America and Europe.

At the same time, like air fryers, supply to other merchants is not allowed until these goods are completely delivered.

When the agreement was signed, Sam was very satisfied and the task was completed.And Xu Dabao became excited again.

2000 million fascial guns. Not only that, Walmart also ordered 100 million sets of special massage heads for women.

The total value is US$21 billion.The US$21 billion must be paid in full before June [-] next year.

$21 billion, that’s more than air fryers make.

So far, total orders for air fryers have just exceeded one billion dollars.But for this fascia gun, one order is as high as 21 billion US dollars, which is terrifying.

"What? A $21 billion order?"

In Luo Xiangyu's office, he was excited again because of the arrival of Xu Huasheng, who had been calm for a few days.

"Yes, Uncle Luo, and the full payment needs to be made before June [-] next year."

Xu Huasheng smiled and handed the contract to Luo Xiangyu, who quickly took it and read it.

Looking at the contract, Luo Xiangyu took a deep breath.

I was shocked by this little guy again. An air fryer is already awesome enough.Unexpectedly, Huasheng Electronics turned out to be just an appetizer.

There are still a large number of orders over there that have not been delivered, and now they have received another super order worth 21 billion US dollars. This is terrible.

"I heard that you are looking for land during this period?"

Luo Xiangyu looked at Xu Huasheng and asked, Xu Huasheng nodded.

"Let's go, follow me now..."

Luo Xiangyu stood up directly. Looking at Luo Xiangyu's movements, Xu Huasheng laughed.

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