“Price reduction is the simplest approach, and we won’t lose much. I can find cheaper supply channels to reduce costs… but once I engage in this battle, this retail price war in Shangdu won’t stop.”
Zhou Cheng wasn’t sleepy, and Xia Xiaolan didn’t like keeping secrets between spouses. Since he was willing to listen, she’d share her thoughts.
Couples should support each other through difficulties – focusing only on romance wasn’t the way to live as husband and wife.
Only one thing troubled Xia Xiaolan now: if she didn’t know the history, she could charge ahead blindly. But precisely because she knew the history, she felt constrained!
Once a price war began, it would harm both Asia Department Store’s long-term development and Shangdu’s retail industry.
True, the ‘Central Plains Commercial War’ taught many people about business competition tactics, becoming a classic case study after China’s Reform and Opening Up. That’s why Xia Xiaolan understood this history so well – it was frequently referenced.
She had no objection to sacrificing Shangdu’s department stores to educate others.
But Asia Department Store was also meant to be sacrificed, and that displeased her.
None of the participants in the ‘Central Plains Commercial War’ benefited. Though Asia Department Store gained fame and expanded, it still went bankrupt after 1997. The state-owned department stores met similar fates – they either collapsed or were bought out at low prices. Every store that joined the battle sacrificed itself to light the way for future retailers!
Xia Xiaolan lacked such a sacrificial spirit.
If Zhu Suizhou still managed the Asia Department Store, she wouldn’t care about its fate. Let him do as he pleased – she would have sold her shares when the store was at its peak and withdrawn with a profit.
But by chance, Zhu Suizhou’s attention was drawn to Qiongdao Real Estate, leaving Asia Department Store’s management to Xia Xiaolan.
She didn’t want to follow Zhu Suizhou’s path.
History had proven Zhu Suizhou’s path wrong – why should she blindly follow it?
Moreover, people naturally make comparisons. Asia Department Store couldn’t be saved under Zhu Suizhou’s management; would the outcome be different under her leadership… Xia Xiaolan wanted to find out.
Without mentioning her past life, she analyzed trends for Zhou Cheng, explaining the likely worst outcomes if the Asia Department Store joined the “price war.”
“When I say ‘likely,’ I mean there’s over 90% probability these negative results will occur.”
Zhou Cheng gently patted her smooth back, both comforting and contemplating:
“So you’re ignoring their provocations, hoping they’ll start internal conflicts without an opponent? What if they continue taking turns reducing prices in an orderly manner? They’ve experienced the benefits – several state-owned stores sharing Asia Department Store’s customer flow. If they’re satisfied with this situation, they won’t fight among themselves.”
Alliances form against common enemies.
Now they were united, gritting their teeth against an external threat.
Alliances dissolve when spoils are divided unequally after defeating the enemy.
Without external threats, alliance members start calculating, feeling their contributions exceed their benefits.
Zhou Cheng thought his wife’s reasoning made sense, but the state-owned stores hadn’t fought yet, suggesting they were content with the current situation.
“Because you haven’t engaged in the war, no competitor is matching their price cuts, so their losses aren’t significant. That’s why the department stores remain stable.”
Xia Xiaolan murmured, “Yes, so I’m thinking of ways to break their stability. There must be alternatives to joining the price war. Though this path is harder, it won’t have the aftereffects of participating in the price war!”
Sharing her thoughts with Zhou Cheng seemed to lighten her pressure.
Zhou Cheng pondered for a while, about to share his ideas, when he noticed her breathing had slowed, her face peaceful against his arm as she slept.
Now he dared not move, fearing he’d wake her.
Xiaolan must have been exhausted lately, not sleeping well.
The next day, Xia Xiaolan was energetic again. She didn’t need anyone’s advice – she knew plenty of solutions. She just needed a shoulder to lean on, a haven for rest when tired.
Zhou Cheng was that haven.
This time, Xia Xiaolan stayed in Qiongdao for only two days before the Second Concubine called urging her to return to Shangdu.
“That Lu fellow gathered suppliers for a networking event, telling them not to supply Asia Department Store!”
Xia Xiaolan found it absurd:
“Would suppliers listen?”
This wasn’t the planned economy era anymore, where supply and purchase quotas were fixed.
In a market economy, market laws prevailed. Why wouldn’t suppliers sell to Asia Department Store when they could profit from selling to anyone… This absurd situation happened in her past life too, but Xia Xiaolan remembered suppliers rejected this ridiculous demand and continued supplying Asia Department Store.
“I don’t know if they’ll listen, but the situation is very bad!”
The second Concubine sounded urgent.
Xia Xiaolan grew suspicious.
This life was indeed different from the last. She hadn’t joined the ‘price war’ like Zhu Suizhou, and Asia Department Store’s daily revenue kept falling.
In her past life, suppliers ignored Lu Hongbo’s demands because Asia Department Store participated in the price war. Profit was uncertain, but they sold lots of goods daily, making them a major client in suppliers’ eyes. Even if losing money, Asia Department Store maintained suppliers’ and others’ confidence!
Now, with customers divided among state-owned stores and Xia Xiaolan delaying joining the price war, Asia Department Store sold less, no longer a major client to suppliers. Would suppliers weigh the pros and cons and accept Lu Hongbo’s absurd demands?
Things had changed, no longer following the previous life’s path. Xia Xiaolan couldn’t be careless. She told Second Concubine she’d return to Shangdu soon, asking one more question before hanging up:
“Has Hu Yongcai returned to Shangdu?”
“No!”
The second Concubine replied irritably. A procurement manager spending most of his time traveling after taking office, not maintaining Shangdu’s supply channels – now with state-owned stores threatening to cut off suppliers, Asia Department Store faced attacks from both sides.
The second Concubine’s attitude was relatively good. Within Asia Department Store, rumors spread that General Manager Xia had run out of options and fled to Qiongdao to beg General Manager Zhu to return and take charge!
Even Second Concubine was uncertain – was Xia Xiaolan going to return management rights to Zhu Suizhou?
—If so, why fight for them in the first place?