Home Categories political economy Very Marketing Wahaha: Practical Lessons from China’s Success

Chapter 50 Marketing point of view Business war is not war

In 1992, two business delegations from Japan and the United States visited China.During the visit, the Chinese government arranged two places for them, one was the Asia Mall in Zhengzhou, and the other was the Small Commodity Market in Yiwu, Zhejiang, because these two were the most representative of the Chinese business community at that time. Zhengzhou's Asia took militarized actions, using the tactics of chasing the Central Plains, winning North China, marching into South China, and annihilating each other. In less than three years, through life-and-death competition, they conquered cities and lands and became famous.

On the contrary, Yiwu in Zhejiang Province is the first in China to adopt the strategy of opening up to customers, and has built more than 8,000 stalls in the small town, hoping that foreign merchants operating similar products will come to compete with them.In a few years, Yiwu has also developed into the largest small commodity market in the country, ranking first in terms of profits, taxes and logistics. Both places, both ways, have succeeded.It can be said that there is experience to talk about.However, when the two delegations of Japan and the United States were notified, they both declined one of them, citing time constraints.The Japanese rejected Yiwu in Zhejiang; the Americans rejected Asia in Zhengzhou.

A few years later, people learned from sporadic foreign materials that the reason why the Japanese went to Asia in Zhengzhou was because they used their war strategy for commercial competition and found that the result was not as good as expected in theory. Find some evidence from Asia.The reason why the Americans went to Yiwu was because they didn't believe in the Asian way at all.They believe that war is a life-and-death competition, while business operations are symbiotic coexistence, allowing the other party to have a chance.In many respects, military theory differs fundamentally from business theory.

In business, the best way to get along with an enemy is to turn it into a friend.Just like the Yiwu Small Commodity Market, attract your own competitors, form a big market, attract more consumers, let the other party make money, and make more money yourself.And the blind pursuit of the so-called militarized management and operation has proved that none of them are successful.This is the reason why Asia finally disappeared and the Yiwu small commodity market became increasingly prosperous.This is of course the reason why the United States has six of the top ten retailers in the world, while Japan has none.

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