Song Minglan’s choice of words was interesting.
She didn’t say “Asia” but instinctively said “we.”
She definitely saw herself as part of Asia – whoever attacked Asia was attacking her, so naturally, Song Minglan was particularly angry.
Xia Xiaolan didn’t find it amusing – laughing now wouldn’t be wise as it might dampen Song Minglan’s enthusiasm.
So after reading the flyers, Xia Xiaolan patiently explained to Song Minglan:
“Business is like warfare. Thanks to everyone’s efforts, Asia maintains high daily sales, with crowds requiring controlled entry during weekends. These customers didn’t appear from nowhere. Without Asia, they would shop at Zijiangshan or Shangdu Department Store. In essence, we’ve taken business from these state-owned department stores. They’re uniting against us for self-preservation and survival.”
Really?
Xia Xiaolan was speaking up for the state-owned stores.
Song Minglan’s indignant expression turned to puzzlement.
This time, Xia Xiaolan couldn’t hold back her smile.
“Special Assistant Song, think about it from another angle – how successful must we be running Asia to make these state-owned stores feel so threatened that they need to unite against us?”
Hmm, that made sense.
Thinking about her contribution to Asia’s successful opening, Song Minglan immediately felt better.
After a moment of joy, she worried about the price war:
“Manager Xia, the problem is these stores have already united, distributed flyers, and advertised on TV. Their price cuts start this Saturday. How should we respond… should we also cut prices?”
For instance, if Zijiangshan Department Store offered 30% off all women’s clothing on September 20th, should Asia offer 40% off?
When Shangdu Department Store announces major appliance discounts on September 21st, should Asia follow suit?
Matching or beating their prices, combined with Asia’s attractive promotions and first-class service – Song Minglan believed they could outdo those state-owned stores!
No, they didn’t even need lower prices – just matching them would give Asia an absolute competitive advantage.
Song Minglan was more capable than Second Aunt, and having worked in Asia for some time, she understood how well Asia operated. Customers would choose Asia for its novel performances, excellent service, and desired merchandise.
However, Xia Xiaolan shook her head:
“A price war? Haven’t you noticed? They’re taking turns, starting Saturday, with a different store offering discounts each day. If Asia engages in this price war, we’ll need daily discounts! These stores must have coordinated – if Zijiangshan offers 30% off women’s clothing and Asia offers 40%, Zijiangshan will immediately drop to 50%, don’t you think?”
What would Asia do then – continue fighting with Zijiangshan, competing to offer deeper discounts until nobody makes money, until everyone sells at a loss, losing money on every sale?!
If it were just this, Xia Xiaolan wouldn’t mind.
Competing with Zijiangshan Department Store to see who could sustain greater losses – they could grit their teeth and charge ahead.
But then on September 22nd, Shangdu Department Store would discount electronics, and Asia would have to follow suit again.
Starting this Saturday, stores will offer discounts daily. If Asia followed their rhythm, they would lose money one day at a time while Asia would lose continuously.
Who could withstand that?!
Not only would Second Aunt be the first to protest, but Xia Xiaolan herself was also uncomfortable with this.
She hadn’t spent all this time fighting for Asia’s management rights just to compete on who could lose more money!
The business aims to make a profit, and harmony brings wealth – why engage in bitter competition?
Hearing this explanation, Song Minglan felt even more frustrated.
Not with Xia Xiaolan, but with those state-owned stores.
“They’re hurting others without benefiting themselves. If they’re jealous of Asia’s success, why not learn from us? Put more effort into store operations – our promotions, service, product selection, display, and internal management – we’re meticulous in everything! But they just resort to price competition!”
Xia Xiaolan said nothing.
Song Minglan’s thinking was still naive. Business was like warfare – competitors weren’t Xia Xiaolan’s friends, so why should they follow Asia’s rules?
Nobody could dictate the rules of business competition.
Everyone had their methods, and price promotion, though crude, was effective.
However, from Xia Xiaolan’s knowledge, the previous life’s dramatic “Central Plains Commercial War” had no real winner. Asia and the state-owned stores fought blindly, both sides cutting prices recklessly, disrupting market order. Though Asia seemed to win in the end, it was a pyrrhic victory.
The state-owned stores suffered severe damage.
The entire retail department store sector in Shangdu was wounded – nobody made money, and everyone lost money. The commercial war lasted seven years, and it took several more years for the local retail industry to recover.
Xia Xiaolan didn’t want to engage in a price war.
“Let’s not follow with price cuts. I want to meet their leader. Special Assistant Song, please find out who’s leading this ‘siege’ against Asia.”
Among the state-owned stores, one must be the leader.
Without leadership, they wouldn’t coordinate price cuts so systematically.
Xia Xiaolan wanted to talk with the leader.
This was easy to investigate – Lu Hongbo, head of Zijiangshan Department Store, quickly emerged as the leader.
Xia Xiaolan asked Song Minglan, “Did Manager Lu attend our opening?”
Song Minglan shook her head.
“Manager Lu didn’t come, but a deputy manager from Zijiangshan Department Store did. If you want to meet Manager Lu, there’s an opportunity – his son is getting married the day after tomorrow.”
A wedding was perfect.
As general manager of Zijiangshan Department Store, Lu Hongbo had many connections in Shangdu – how could people not attend his son’s wedding to offer congratulations?
There would certainly be a public reception. On such a joyous occasion, Xia Xiaolan could naturally bring gifts to offer congratulations and meet Lu Hongbo – nothing wrong with that.
Xia Xiaolan’s plan seemed good, and she prepared gifts.
Going to the wedding banquet at the scheduled time, she was stopped at the restaurant’s entrance after identifying herself.
Song Minglan spoke politely, “This is Manager Xia from Asia Department Store, sincerely coming to congratulate Manager Lu—”
“Sorry, the wedding banquet is only for Lu’s family’s relatives and friends, others cannot enter.”
What?!
Even Xia Xiaolan was surprised.
A guest is a guest – they wouldn’t even let them attend a wedding banquet?
She remembered reading materials about Asia’s commercial war – when the Shangdu Hualian Building opened in 1990, Zhu Suizhou personally delivered a congratulatory plaque but was turned away… Now in 1988, Shangdu Hualian Building, which would later join the battle, was still under construction, but Xia Xiaolan experienced the same treatment from Zijiangshan Department Store’s Manager Lu Hongbo that Zhu Suizhou had faced in her previous life!