Chapter 228 Competitors are worried
The advent of Xinghai VCD caught electrical appliance manufacturers from all over the country off guard, and they all purchased VCDs to dismantle.
Jiang Wanmeng was caught off guard. He and his team were studying VCD and the results were coming soon.
As a result, Y TV suddenly played news about Xinghai VCD.
"Why has there been no news about VCD before?"
"Why didn't Xinghai Group announce that it had developed the world's first VCD machine, but only made it public after it was launched?"
"Profiteer!"
When he went to check the patent, Xinghai Group had already registered it, and it had only been a few days since it passed the review.
I bought a few Xinghai VCD machines, dismantled them and analyzed them, and I roughly know what's going on.
Xinghai Group's VCDs were very exquisitely made, and he thought that if he copied them, he wouldn't be able to do that well.
Are you going to go around in a circle and continue to do it? The first market is occupied by others, and marketing cannot be done by them. They have contracted Y-TV, and they are advertising every day. It is annoying to see them. They are in print media in various provinces and cities, and even on buses. How much money will be spent on Xinghai VCD advertisements?
The products are not as good as others, the marketing is not as good as others, and the capital is not as strong as others. The competition is definitely out of the question, so we can only adopt a low-price sales strategy.
Previously, he predicted that the sales volume in the first year would be no less than two million units. If they could win this market, they would make a lot of money. Their investment of nearly ten million US dollars would be nothing.
From this point of view, the money they invested in the early stage was wasted, and they felt that there was no need to study further.
Jiang Wanmeng looked frustrated, broke into cold sweat, and became completely discouraged.
At this time, Sun Yan in Chou Country did not know the situation in Hua Country until Jiang Wanmeng called him on August 5.
Sun Yan had already expected it, but she didn't expect that Xinghai Group had actually developed a VCD.
He asked him about Fang Bai, but he was told that it was a new type of CD player, but it had been delayed until it was launched.
Just because he had concerns, he cooperated with Jiang Wanmeng to develop a VCD machine and reduced the investment budget. In the end, he only invested 5 million US dollars. Currently, he has spent 2 to 3 million US dollars, and the loss is not big.
Jiang Wanmeng also invested, but not as much as him.
If you lose, you must lose together.
"Mr. Sun, is Xinghai Group using your company's decoding chip?"
"That's right, yes."
"The other party develops VCD, you don't know?" Jiang Wanmeng's tone was a little cold, a little bit blaming Sun Yan.
Sun Yan suffered a loss on her investment and was not in a good mood, and her temper got worse: "If I knew, would I still sell him parts?
Are you questioning me?
I invested more money than you, why don't you check for duplicate patents?
You are responsible for the domestic market research. "
When asked about the patent plagiarism check, Jiang Wanmeng felt a little guilty. He had not checked it before, but he was very helpless at this time: "I checked, and the patent has just been approved.
Mr. Sun, please calm down first. The question now is, do we still need to continue research and development? Are you really willing to give up this market? "
He didn't say that he didn't check it before, but only checked it after Y TV broadcast the news.
"Mr. Meng, things are a little bad. If you have anything to say, just say it. We don't have to be secretive when talking." Sun Yan was a little angry. He just blamed Jiang Wanmeng a little, not Fang Bai for deceiving him.
It was developed in secret, how could the information be exposed?
"If your company cuts off Xinghai Group's decoding chips, and we buy Xinghai Group's patents, we can monopolize this market." After Jiang Wanmeng finished speaking, he felt that what he said was too stupid. If he could make a lot of money, why would he sell it? patent.
Is it possible to use the decoding chip as a threat?
"Mr. Jiang, you really know how to joke. Haven't you found out what kind of company Xinghai Group is? It has more money than us. Why do you think they are willing to sell the patent to you? It's not good for them to monopolize this market.
As for cutting off someone else's chip, do you think they won't switch to another one? It's just a matter of time.
Hey, forget it, our cooperation ends here, my loss is no less than yours. "Sun Yan felt that Jiang Wanmeng's idea was too funny. In terms of relationship, his relationship with Fang Bai was not bad, not to mention that he had a cooperative relationship with them and still owed three million decoding chips.
He only lost more than two million U.S. dollars and could not make as much money as VCD, but he could make money from the decoding chip.
Originally, if Jiang Wanmeng continued research and development instead of engaging in other actions, he would be willing to continue struggling and make a small profit.
But what Jiang Wanmeng said made him very angry. Things were not done well and the questioning came to him.
Of course, the strong strength of Xinghai Group also made Sun Yan flinch. He felt that Jiang Wanmeng could not defeat the shrewd Fang Bai, and continued investment would be a bottomless pit.
Fang Bai was so courageous that he dared to purchase six million decoding chips from him before it was listed on the market, and he still signed an agreement for the other five million chips.
Now that Sun Yan thought about it carefully, she finally understood Fang Bai's plan.
The problem is, they made the right bet.
He and Jiang Wanmeng can't compare to Fang Bai's vision and strategy, and they will definitely not be able to compete with them in the market.
Think about Fang Bai's ability to get into trouble in Chou Country. He also has an investment company, and he also has more than two million US dollars invested.
In terms of relationship, his relationship with Fang Bai is no worse than that with Jiang Wanmeng.
At first, he thought Jiang Wanmeng was quite good, but when compared with Fang Bai, he was incomparable.
After finishing speaking, Jiang Wanmeng fell silent. Knowing that the investment was definitely a loss, he sat softly on his chair.
When Sun Yan saw that the other party had stopped talking, he was furious and hung up the phone directly.
A few days later, many domestic businessmen called to inquire and wanted to purchase hundreds or thousands of decoding chips.
Sun Yan still owes Fang Bai three million and several hundred thousand, and she won't be able to deliver all the goods at the end of the year. How can she place a small order of hundreds or thousands of pieces?
Even if the unit price is high, he can't sell it. Wouldn't this create a competitor for Xinghai Group? After Fang Bai learns about it, maybe the next batch will not be customized by his company.
…
Guangdong City, Aido Electric Co., Ltd., conference room.
The boss, Hu Biao, was convening a meeting with technical staff. Several disassembled Xinghai VCD machines were placed on the table.
At the end of July, the company purchased several VCD machines and dismantled them for analysis. The results are now available.
The core component, the decoding chip, came from Scobo. The import trademark of the laser head was erased, but they still found out that it came from an island company.
Servo motors are also imported.
There are also some parts and components that have no trademarks. Xinghai Group deliberately concealed them, and they may be produced by Xinghai Group.
After more than 20 days of analysis by the technical team, they felt that it could be counterfeited, but they would have to bypass other people's VCD patents.
According to analysis, the manufacturing cost is at most 300 yuan, but the wholesale price is actually 3,000 yuan, which is a huge profit.
As long as 10,000 units are sold, that is more than 20 million yuan.
They estimate that Xinghai Group’s current sales volume is no less than 100,000 units.
Hu Biao was very jealous, so he invested money in researching VCD machines. This was an opportunity to get rich.
The biggest problem now is the difficulty in purchasing core components.
Hu Biao asked the company's purchasing manager: "How's it going? I've consulted the manufacturer. Can I buy the decoding chip?"
"The order has increased from 500 to 5,000 pieces, but Scoop is not willing to sell it. The unit price has already been raised to 20 US dollars, which is still FOB price. We just plan to make a batch of prototypes first, and we plan to invest in decoding chips alone. One hundred thousand dollars, foreign exchange is not that easy to get.”
"Let's not talk about the cost issue. Didn't the other party say the reason? An order of 5,000 pieces is not too small."
"The manufacturer only said it was out of stock and didn't find out more information."
"grass!"
Hu Biao patted the conference table and couldn't help but curse. The company has invested hundreds of thousands of yuan, and the dismantling work has also taken a lot of time.
More than a dozen employees in the meeting fell silent and did not dare to speak out.
Hu Biao took out his cigarette and lit it, took two puffs, took a long breath, and tried to calm himself down.
After the VCD machine came out, they specially studied Xinghai Group.
Xinghai Group was established less than three years ago and has assets of more than billions of yuan. The young boss is so awesome.
Unexpectedly, they have set up such a big scheme. Not only Y TV has advertisements, but also provincial TV stations, provincial newspapers and even buses. VCD machines are sold in electrical appliance stores in Guangdong City. There are even hanging signs at the entrances of state-owned electrical appliance stores. There is a poster saying "This mall sells VCD machines".
After intensive bombing and publicity, many citizens in Guangdong City knew about VCD machines, and there were even small vendors who bought a VCD machine to play short movies to make money. It was difficult not to know.
Being able to deploy terminal sales across the country in a very short period of time, the marketing methods are very powerful, and it is estimated that tens of millions of yuan have been invested in publicity expenses.
But when it comes to other people’s profits, publicity expenses are nothing at all.
He can't compete with the business giant Xinghai Group. He just drinks soup and is happy and contented by earning tens of millions a year.
Hu Biao frowned and said deeply: "It is not difficult to make a VCD machine, and the outer casing does not need to be so delicate. Cast aluminum or plastic will suffice.
Some parts can be purchased at the Guangdong Electronics Mall, or at best they can be customized by the manufacturer. Now call Scobo and ask how many customized quantities are available. "
"Boss, it's early morning in Los Angeles."
"Okay, then you can fight at night, and I want the results tomorrow. If we solve the problem of not knowing the supply of decrypted chips, we won't be able to enter the market at all." Hu Biao gritted his teeth and suppressed his temper.
He didn't explicitly mention imitation. As the boss, he only said that he would learn from Xinghai Group's products and take a detour to produce his own brand of VCD machines.
If someone sells it for 3,000 ex-factory price, he will sell it for 2,000 and still make a lot of money.
In terms of cost control, Hu Biao felt that there was no need to be so sophisticated. Mass production would cost only two to three hundred yuan per machine, and the ex-factory price would be one thousand yuan, making a huge profit.
The next day, Hu Biao got the results.
The one-time purchase amount must reach 500,000 pieces, priced at US$20 each, and the annual purchase volume must be no less than three million pieces.
This is a condition of supply, and it is something Sun Yan thinks is worth the risk. Of course, he hopes that people will give up, stop asking, and stop tempting him.
Sun Yan had already figured out the situation of Hua Guo's VCD machine, and it was enough for him to earn Fang Bai's money.
Fang Bai has already called him. After the five million decoding chips are finished, he will continue with five million. He does not want him to sell the chips to other buyers, especially Huaguo manufacturers.
Sun Yan could probably guess Fang Bai's plan. Even if he couldn't produce so many VCD machines, he still had to block key supply sources to grab time.
With Fang Bai's current capital, it would not be a problem for him to find a new manufacturer to produce decoding chips, but it would just waste time.
"Are you sure you're not deaf? I purchased 500,000 coins at one time for 10 million U.S. dollars. Even if I sell my company, I won't be able to get that much money! Besides, who in the country can get so much foreign exchange!" Hu Biaoming saw the cake. It's right in front of you, just one step away, and you can't eat it.
Of course he was not satisfied when the purchasing manager reported the results.
The purchasing manager couldn't sleep all night and didn't dare to report to the boss. It was ridiculous, but he still had to say it. He bowed his head after being scolded and did not dare to refute. He said: "Boss, I am also very angry. I have confirmed it many times, and it is As for the other boss, in the final analysis, he just doesn’t want to sell.”
Hu Biao took a deep breath. This was not good news, and said, "I know, prepare the procedures for leaving the country. I will also go out. I hope we can discuss it in person."
There are currently no less than a hundred companies or workshops that are preparing to imitate VCD machines like Aido Company. They do not have the strength of Aido Company and their progress is not that fast. They are currently dismantling and analyzing, and then looking for similar parts on the market. .
The decoder chip has the word "laser" stamped on it. You can find the manufacturer. I asked for advice and planned to purchase one or two hundred units, but they refused to sell them and said they were out of stock.
VCD machines have made waves in China, and countless businessmen have smelled the fishy smell and want to carve up the cake of this emerging market.
Businessmen are more sensitive to emerging business opportunities. As long as they act quickly enough on products that have just appeared and been recognized by the market, they can still be sold.
Xinghai Group has proven that they can just follow and drink soup.
At the end of August, some domestic financial reports on Xinghai VCD said that business genius Fang Bai relied on one product to make a monthly profit of no less than 500 million.
In this era, a person with a personal wealth of over 100 million is a billionaire. Most of them are the richest man in a city and a guest of the local government.
Damn it, you can make hundreds of millions a month, even banks can’t print money so fast.
Large-scale machinery and equipment such as pump trucks require huge investments, and not ordinary companies can play it through. Most businessmen are not jealous that Xinghai Group can take this cake.
But a VCD machine costs only a few hundred yuan, and any businessman wouldn't be jealous of an electrical appliance that is easy to copy.
That is, by the middle of this month, pirated CDs have emerged, and by the end of the month, there are many vendors and electrical appliance stores selling them on the streets.
It's all those financial reports.
Xinghai VCD sales continue to surge, with shipments occasionally reaching 20,000 units in a single day.
For Fang Bai, the VCD player project has come to an end, and the technical team has begun to develop DVD players.
The concept was proposed by Fang Bai, but he didn't put in the effort and relied on the technical team to figure it out.
On August 20, Fang Bai had already arrived at the Shanghai International Industrial Exhibition.
This year's international industrial exhibition opened a little later than last year.
Today, Xinghai Group is so famous that the company rented several booths to form a booth of several hundred square meters.
The key products on display this time are VCD machines, 40-meter pump trucks and 45-kilowatt diesel engines.
At last year's exhibition, Xinghai Group became an instant success, winning tens of millions of dollars in foreign trade orders and becoming the number one private enterprise.
As soon as the exhibition started on the first day, countless visitors crowded into the booth of Xinghai Group, paying special attention to the VCD machine that had just been launched.
You can place an order on site, with a starting price of 100 units. The ex-factory price is the same, there is no difference. The advantage is that you can pick up the goods on site at the company.
Fang Bai sat backstage and read information. He came to the exhibition mainly to gain connections and find big customers.
There are only more than ten contacts left before the ring finger is upgraded. Maybe it can be upgraded in the next two days.
For orders below five million, he does not need to be responsible, and the sales staff will be responsible.
Now Golden Finger does not recognize low-end and mid-range customers, and the requirements are becoming more and more demanding. (End of chapter)