The purpose of "Home Appliances to the Countryside" was to stimulate consumption, and its fundamental purpose was the same as the bank's interest rate cut.
The purpose of the bank's interest rate cut was to get people to take their money out of the bank, while the purpose of "Home Appliances to the Countryside" was to get people to spend their money out of their pockets.
To revitalize the retail economy, the first thing to do was to get people to spend their money in their pockets. The people would take out their money to buy products, the country would raise taxes, and the enterprises would increase their income. The enterprises would bring more jobs to society, and more money would flow back into the pockets of the people, forming a virtuous and healthy cycle. Only in this way could the economy be revived.
If the people kept their money in their pockets, the production and sales of the enterprises in all industries would be greatly affected. Because they could not sell, they would produce less. Because they produced less, there would be insufficient jobs, and the unemployment rate would rise. Because of the unemployment rate, there would be no money, and because of the lack of money, people would not dare to spend it recklessly. This would form a vicious cycle, like a myocardial infarction, causing cash to lose its liquidity.
Strong domestic demand could bring about a strong market. The main reason why the US automobile industry and automobile market were developed was because of the strong consumption of cars. Hua Xia would become the world's largest automobile producer and consumer country in a decade or so. The reason was also because of the increase in domestic demand. Without strong domestic demand, how could they become the world's largest automobile producer with low labor costs?
Li Mu understood the importance of domestic demand, and Department Head Zhen understood it much more than Li Mu did.
Aside from the real estate industry, 80% of the domestic economic policies revolved around stimulating domestic demand. However, there were very few methods with unusual results. This had a lot to do with the choice of focus. Most of the time, the country wanted to stimulate the consumption of the urban residents. They were the main force in buying houses, cars, black and white home appliances, and also the main force in the food, entertainment, and cultural industries. However, because everyone was targeting the urban residents, the conversion rate of these economic policies targeting the urban residents was getting worse and worse. However, Li Mu was able to suddenly focus on the 900 million rural residents. For a 20-year-old young man, this vision and insight was simply unbelievable.
Behind Li Mu's economic strategy, there was a huge domestic demand market. If he could grasp it well, within two to three years, it would be a strong impetus for the home appliance manufacturing industry.
Then, Minister Zhen asked Li Mu, "The strategy of bringing home appliances to the countryside is very novel. If the government were to step in, it would bring about a huge amount of sales, but at the same time, it would definitely bring about hidden dangers and drawbacks. What details do you think we need to pay special attention to in the specific direction of implementation?"
Li Mu thought for a moment, then said, "Department Head Zhen, then I'll just speak a bit of my own opinion. It's just my opinion, please don't mind if it's inappropriate."
Department Head Zhen nodded. "Go ahead."
Li Mu said, "In the home appliances to the countryside, the most important part is to strictly control the participating enterprises. The government-led home appliances to the countryside is a once-in-a-lifetime opportunity for home appliances companies. However, we must raise the threshold for participation. This is a stage for the strong and the sincere, not for the welfare of the entire industry."
"First, foreign enterprises cannot participate. In theory, all local enterprises can apply to participate, but first, we must completely exclude small enterprises with low market share and poor product quality control. If medium and large enterprises want to participate, they must first come up with a detailed solution to bid and strictly guarantee the price and quality. We must absolutely not allow shoddy products to pass off as good ones or inflate the price to make up the numbers. We must also not allow any vague products that are specially made for the home appliances to the countryside to bid. We must come up with products that are consistent with the market. If we ask the enterprises to bear 10% of the cost, then a TV that sells for 2,000 RMB through normal channels must be limited to 1,800 RMB in the home appliances to the countryside. If we first change the price to 2,200 RMB and then sell it at 1,980 RMB, the enterprises will face heavy penalties."
"Secondly, the participating enterprises must promise to provide a longer warranty period and better after-sales service for the home appliances to the countryside."
"Finally, the home appliances to the countryside will be divided into several phases and implemented separately. Once enterprises are found to have violated the rules, they will be strictly prohibited from participating in the follow-up activities. At the same time, we must set up strong punishment standards. We must not let the enterprises mess around. At the same time, we must strictly prevent enterprises from taking the opportunity to cheat insurance. The policy must be strict, and manufacturers must not be allowed to fish in troubled waters."
At this point, Li Mu took a sip of water and continued, "In addition to strictly controlling the participating enterprises, the home appliances to the countryside must also control the overall proportion and absolute quantity of the home appliances to the countryside and grasp the degree. In this way, the home appliances to the countryside can be carried out for three years. After the end of the home appliances to the countryside, we can also push the 'old for new' activity to the rural market in the future. In short, with the macro-control of the government, we can steadily promote the development of the entire home appliances industry."
In Li Mu's opinion, the benefits of the home appliances to the countryside program were unquestionable. Not only did it help the popularization of home appliances in the rural areas, but it also saved and helped many home appliances enterprises. This kind of policy that the common people could actually benefit from would definitely be beneficial to the country and the people as long as they grasped the degree well and controlled some of the participants who participated in the program to fish in troubled waters.
Department Head Zhen said to Li Mu solemnly, "We will definitely discuss the matter of computers entering the cities and home appliances to the countryside in depth. We will carefully consider it and try it out as soon as possible."
Then, Department Head Zhen added, "You are the leader of the domestic Internet industry. I hope that in the future, you will always remember your sense of responsibility and lead the domestic Internet industry to rapid development."
Li Mu nodded repeatedly. "Don't worry, Department Head Zhen. I will definitely do my best."
Then, Department Head Zhen smiled and asked him, "What other needs do you have? It's about your own development needs. "
Li Mu thought to himself, "Finally, it's time. I've laid the groundwork and whitewashed the things that need to be whitewashed. It's time for me to bring up my own needs."
Therefore, Li Mu said in an exceptionally serious tone, "Department Head Zhen, the terminal distribution of e-commerce is severely constrained. If the terminal distribution can't keep up, the prospect of e-commerce reaching billions or even hundreds of billions will never come to fruition. In order to solve this major constraint, I've raised 500 million yuan in funds to build my own logistics company. However, you must also know that the logistics industry is a very heavy asset. If I want to get started quickly, 500 million yuan is simply not enough. Therefore, I still need the government to provide appropriate support in many areas."
Department Head Zhen nodded. "Logistics is the foundation of social and economic development. Private logistics companies are also the future development trend of the logistics industry. If you want to build your own logistics company, I'm very supportive. However, what are your specific needs? Tell me one by one."
Li Mu said, "Department Head Zhen, in the future, our logistics system will involve the purchase of a very large number of freight vehicles. If possible, I hope that the government can reduce the vehicle purchase tax for the next few years. In addition, there's also the import tax on imported vehicles and equipment. We will purchase from overseas companies and collect for our own use. Can you give us some preferential treatment in terms of the tariff?"
Department Head Zhen smiled and did not comment on Li Mu's request. Instead, she said, "Continue. What other needs do you have?"
Li Mu felt a little guilty. He didn't know what Department Head Zhen thought of his request just now. Would she think that he was asking for too much? However, Li Mu changed his mind. It wasn't easy for him to have a chance to cry for milk. No matter how much he could drink, he had to first tear his throat and cry his heart out.
Immediately, Li Mu straightened his body and said without a change in expression, "Department Head Zhen, our future logistics plan is to build a lot of distribution centers and storage bases in the country. We also need the local government to give us some consideration in terms of land acquisition and land acquisition. The specific points are location selection, land acquisition, construction of factories, and recruitment."
Department Head Zhen nodded and said with a smile, "I'll remember this. However, I can't directly interfere with the local government's matters. I'll talk to my boss later."
Li Mu quickly nodded. "Thank you for your trouble, Department Head Zhen."
Department Head Zhen waved his hand and asked Li Mu, "Before you start building your own logistics company, do you have any needs for the postal service?"
As he said that, he pointed to Deputy Director Niu of the National Post Bureau, who had been silent all this time. He smiled and said, "Director Niu is here today to help you solve your problem. If you have any needs, feel free to mention it to Director Niu. He will definitely do his best to help you solve it."
Director Niu smiled and said, "That's right. If there's anything you need from the postal service, feel free to mention it. We will definitely do our best to cooperate."
Li Mu hurriedly said, "Thank you, Director Niu. Right now, we are relying on the transportation capacity of EMS the most. For a period of time in the future, we might not be able to completely solve the problem of our own logistics company, so we will need the help of EMS. However, in the future, we will quickly purchase a large number of vehicles. At that time, we will be able to participate more in the entire process of express delivery. We will work together with EMS to increase the transportation capacity, speed up the turnover, and speed up the delivery."
Director Niu smiled and said, "Your point-to-point transportation strategy is very effective. If you can increase the transportation capacity in this area, the efficiency of the entire turnover will definitely be further improved. As for EMS, as usual, we will place Taobao at the highest priority. Before you start building your own logistics company, we will give you the greatest guarantee."
Li Mu hurriedly thanked Director Niu. Director Niu's visit today was probably a reassurance from the higher-ups. With the higher-ups supporting him in e-commerce, Big Brother Post will definitely not let him down. "
After chatting with Director Niu, Department Head Zhen looked at the time and said to Li Mu, "I will talk to my boss about the matters related to the computers entering the city, the procurement of logistics, and the land use. If there are no issues, my boss will directly coordinate with the other departments. When the time comes, I will directly issue the documents to your company in the form of official documents."
Li Mu nodded. Department Head Zhen asked again, "As for the requirements, think about it carefully again. Is there anything else that you have missed out?"
Li Mu hesitated for a moment before saying, "Department Head Zhen, I still have a very important request!"
Department Head Zhen smiled faintly. "Looking at your hesitant expression, I know that you definitely have something else to ask. Go ahead."
Li Mu smiled awkwardly and scratched his head. Then, he said in an exceptionally serious tone, "Department Head Zhen, I hope that we can take advantage of the fact that e-commerce is still in its infancy to carry out legislation and supervision on e-commerce!"
…
[PS: Please follow my WeChat account (gzbuge). Name: Gongzi Buge. There will be all kinds of news updates on a regular basis. Because the plot will soon have an intersection with the fictional 'Thunder Lord' in the book, today's WeChat will be pushing a piece of news related to Lei Jianguo. Remember to follow it!]
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