In the afternoon, Feng Yu was sitting in the office browsing the forum. Tomorrow will be New Year's Day. Many employees from other places have already taken leave in advance, including some senior executives, so Feng Yu, a "local", stayed. Anyway, he was fine.
"Boss, there are some people downstairs who want to meet you. They are all CEOs of domestic DVD manufacturers. They come from southern Guangdong." Wu Zhigang reported.
Wu Zhigang is the vice president in Beijing representing Taihua Holdings Group. He is the first person to follow Feng Yu. Many people say that he is the true successor of Feng Yu because his temper is so similar to Feng Yu.
When you are happy, it doesn’t matter how much profit you make through cooperation. If you're not happy, I won't take any money from you!
If you were in other companies, this kind of temper would be criticized by many people if you were a middle-level manager, let alone a senior executive. But in Taihua Holdings Group, you don't have this worry at all.
One is that Wu Zhigang naturally has his own merits. His memory is as good as Mr. Feng. He can basically remember people he has met. Moreover, when he was in the company, he worked extremely seriously and was very fair to employees. Every time he gave employees He was the one who set the bonuses, and he never showed mercy. Anyway, Feng Yu told him that a certain proportion of profits should be used to give bonuses to employees every year and distribute them according to their work.
"What do they want?"
"What they mean is that they want to talk to you. Now that Fengyu Electronics and Aihua Electronics have launched HDDVD players, can they lower the patent licensing fees for some DVDs? I think they just can't survive, and they want to ask for our help. ." Wu Zhigang said.
At this time, there were more than fifty DVD manufacturers in southern Guangdong. They not only supplied domestic products, but also exported them to Southeast Asia. For domestic manufacturers, Feng Yu's patent licensing fee is not high, so after using cheap labor, the cost is not high and the price can be competitive to a certain extent.
However, with the rise of computers, more and more people choose to buy computers. Computers come with optical drives, so you can watch movies, but they are not as big as TV screens. The current mainstream monitors are only 17-inch and 19-inch monitors. As for inches, 14-inch ones have just been eliminated, and 21-inch ones have just emerged.
Factories in southern Guangdong are too densely packed and compete with each other, causing labor costs to rise. In addition, because Sunny and their DVD prices have been reduced, the prices of Fengyu Brand, Aihua Brand and Philips have also been reduced. These manufacturers have lost their price advantage.
It doesn't matter for a short time, but as time goes by, they won't be able to stand it anymore. If this continues, at least half of their factories will be closed within a year. What is produced cannot be sold, and what is sold is sold at a discount. It can be said that the more you produce, the more you lose.
"Let's ask them to come forward. After all, they have also contributed a lot to the promotion of DVD. If we really encounter difficulties, then it is okay to reduce the patent fee appropriately."
In fact, it is most cost-effective to let them go bankrupt, then buy their factory, merge and transform it, and produce HDDVD. But for the sake of being Chinese, Feng Yu didn't do that. Of course, we also have to look at the character of those bosses. If he drives a luxury car, lives in this villa, and then says that the factory does not make money and does not pay wages to the workers, it would be fine if Feng Yu didn't step on him, and he would definitely not help him.
Twenty or thirty people came up. Feng Yu's office was not big enough at all. It was more economical here in China, so he took them directly to the conference room.
Feng Yu picked up the tea cup, took a sip of hot tea, and looked at them with a smile: "Everyone looks familiar to me. Some of them can be called by their names, but some can't. If you come this time, if you have anything to do, just tell me Tell me."
Feng Yu put down the tea cup. These people looked at me and I looked at you. No one was going to speak first.
"Fat Huang, we have been cooperating for more than ten years. Are you the leader of these people?"
Fatty Huang cooperated with Taihua International Trading Company when Feng Yu was selling electric fans. Then he was involved in everything from humidifiers and bladeless fans to motorcycles and cars, and later in the sales of other products. , which time was it without him? Needless to say, he occupies the market in three provinces such as Southern Guangdong, Haidao, and Western Guangdong. He should have a net worth of at least tens of millions, right
What's more, he also opened a VCD and DVD factory, which was very profitable at first. Others may not be able to survive, but Fatty Huang will definitely live a very nourishing life.
Fatty Huang chuckled: "Mr. Feng, I just said that I wanted to come to you for help. They all insisted on coming with me. I didn't mean to cause trouble. You have to believe me on this."
Feng Yu rolled his eyes at Fatty Huang. If this guy wasn't quite honest in doing business, didn't have a bad reputation, and everyone had cooperated for a long time, otherwise Feng Yu might not really believe it.
"Mr. Feng, look, VCDs are no longer produced abroad, but we are still producing them domestically. Can the patent fee be reduced? There is nothing we can do, we are no longer making money."
"There is no need to produce VCDs anymore. Let's do this. The patent fees for DVDs will be reduced by half. Well, the patent fees for Super VCDs will also be reduced by half. Moreover, Fengyu Brand and Aihua Brand Super VCDs will be discontinued tomorrow. In this market, You guys divide it up.”
Now both Super VCD and DVD are compatible with VCD discs, but VCD is not compatible with these, so there is no need to produce VCD as a eliminated product. Feng Yu knew that they wanted to enter the rural market, so they should sell super VCDs. Don't let people buy ordinary VCD players for cheap. After buying them, many discs cannot be played. How depressing that would be.
Fatty Huang and others were overjoyed: "Mr. Feng, you are so kind. Then we also plan to stop the production of ordinary VCDs and produce super VCDs and DVDs in the future. By the way, Mr. Feng, when will this HDDVD player technology be available? License it to us? And what’s the price for the disc recording technology?”
"We won't be able to authorize it to you until next year. We'll discuss the price then, and it'll be decided by the market. But I suggest you find a way to transform. Your brand hasn't even started yet, so it's destined not to develop much."
Feng Yu shook his head. The companies run by these people are third-class companies. They sell based on price and have poor risk resistance. If Feng Yu hadn't been kind enough to lower the patent licensing fee this time, at least half of them would have closed down within a year!
The others looked at each other, no one knew what to do, at least they could still make money now. If we make HDDVD next year, we can make at least three to five years of money, right
In three to five years, even the poorest people will be able to save several million dollars, and then it will be too late to think about transformation.
Those people all left, but Fatty Huang stayed.
"Mr. Feng, what do you mean by transformation today? Please give me some pointers."
"Your workers are pretty good, but you don't have any advantages in other aspects, so let's amplify the advantages of your workers."
Amplify the advantages of workers? Fatty Huang clicked his eyes... He didn't understand.
Feng Yu sighed. It seemed that Fatty Huang's ideas were not trendy enough.
"Original work, do you understand?"
(End of chapter)