Rebirth: Return to 1991 to be the richest man

Chapter 2154 A factor that cannot be ignored
Moreover, it is normal for sales of electric toothbrushes and electric hand-held fans to decline after the market is saturated.

Even though they are just two small appliances, their quality is quite guaranteed.

Although it was used very frequently, the damage in a short period of time was not as high as expected.

Chen Jianghai had already thought of solutions to these problems.

However, he did not interrupt Smith immediately.

He knew that the other party must have other things to say.

After a slight pause, Smith continued: "In addition, our sales of large electrical appliances are relatively stable. Although we have been making profits, they are much worse than the profits of small electrical appliances."

"After buying these large appliances, people will basically not buy the same products again for three to five years. Even if they are well maintained, some people can go ten years without buying new products."

"It just so happens that our quality is very good and our after-sales service is also very good, so the purchasing cycle is prolonged."

"So, every time we sell a large appliance, our profit is basically fixed, and there is no way to get more profits from these customers."

"And our pace of expansion is relatively large. If this continues, I'm afraid we will fall into a crisis in the near future."

"If we do it improperly, we may lose all the money we make."

Chen Jianghai still didn't rush to tell Smith his solution. Instead, he nodded slightly and asked, "This is indeed a big problem! So Smith, have you thought of a solution?"

Smith quickly said: "Of course I have thought about it, Chen. I think the most appropriate way is to continuously produce new products to maintain the vitality and popularity of the market."

Having said this, Smith looked at Chen Jianghai eagerly, wanting to see his reaction to this proposal.

Chen Jianghai still didn't speak immediately, and nodded to indicate for him to continue.

Smith took a sip of tea, and then continued: "Chen, see if you can get some new electrical appliances from Qiuhai Group."

"The more small appliances like this, the better. It would be great if there are new, large-scale appliances that are innovative."

"At that time, I dare to say that we can rely on the advantages of various new products and only need one or two years of accumulation to directly dominate the American market."

Smith said confidently.

But when Chen Jianghai heard Smith's idea, he was not excited at all.

It's not that it's directed at Smith, but Smith's plan itself has big problems.

Chen Jianghai shook his head and said with a very serious expression: "Smith, I must remind you that your idea is not very clever."

"Of course, I'm not criticizing you, I'm just telling you that you are too naive."

"According to your method, it can indeed solve a temporary emergency, but it is not a long-term method."

Smith blinked, seemingly confused.

Chen Jianghai said calmly: "First of all, you have to understand that the invention and innovation of any electrical appliance is not achieved overnight. It requires long-term research and development and innovation, which consumes a lot of energy and money."

"Even so, we may not be able to really gain something and get our ideal product."

"So, it is uncertain in terms of time and cannot be precisely controlled."

"When you need a new product to come out the most, but it is not produced, all your plans will suddenly collapse, and the consequences are self-evident."

Smith nodded repeatedly when he heard this, and cold sweat broke out on his forehead unconsciously.This is indeed a factor that cannot be ignored.

But he happened to be ignored.

In other words, the Qiuhai Group led by Chen Jianghai has created too many miracles and can always bring surprises to people from time to time.

So much so that Smith ignored this fact.

No R&D team dares to say that innovation has no bottlenecks and can continue forever.

On the contrary, many technicians have been researching for a lifetime, and they are thankful to be able to innovate a product that is popular in the market.

There are even many people who have worked hard all their lives, only to achieve nothing and end up depressed.

Chen Jianghai ignored Smith who was sweating on his forehead and continued: "Secondly, even if the R&D and innovation department can keep up and new products come out all the time, the general public may not keep buying them as you think."

"Usually the popularity cycle of a new product is only about eight months at most."

"A new electrical appliance is produced and sold every eight months. At first, people may think it is very novel and fashionable."

"But after a long time, do you think people will still buy it?"

When Smith heard Chen Jianghai ask this, he really couldn't answer.

Because this question was something he had never thought about before.

He just witnessed the popularity caused by the launch of two new small appliances, so he subconsciously believed that as long as new appliances were launched, they would be successful.

But it seems that is not the case at present, otherwise Chen Jianghai would not ask this question.

Smith shook his head in embarrassment and replied, "I don't know."

Chen Jianghai was not surprised by his answer, so he further explained to him:
"OK, let's think about it from another angle. If you are a consumer and new electrical products are constantly coming out on the market, after buying them a few times, will you continue to buy them?"

"At the beginning, you may be interested in fashion, and electrical appliances are really useful, so you will buy them enthusiastically to avoid falling behind."

"But when you find that these electrical appliances are constantly being updated, and other new products are constantly being released, will you feel fatigued?"

"Are you sure you will buy one of everything and then be self-righteous about keeping up with the trend?"

Before Chen Jianghai could say anything else, Smith simply shook his head and said, "NONONO, no, absolutely not! That's something only a fool would do."

Chen Jianghai nodded: "Yes, as long as the previous one can still be used and doesn't fall behind too far in terms of functionality, many people will not plan to replace it."

"It would be better if the functions of these electrical appliances did not overlap. If they overlap, it would be even harder to sell."

"We are not fools. It is impossible to buy the same type of products all the time, and it is impossible to fill the house with all the electrical appliances."

"And from a psychological point of view, if new products are constantly coming out, people will feel that they are not so strange, and they may even develop a kind of resistance."

"I haven't figured out the last appliance yet, and a new product comes out. Do you think I'm a cash machine?!"

"At the same time, you may also feel that there are always new products coming out, so just wait. Anyway, you will be able to buy newer, more advanced and even better quality products in the end. It is easy to suffer losses if you start early."

"So, what will be the final result? Of course they will keep waiting and watching, and they are not willing to spend money to buy any products."

(End of this chapter)