"President, the sales volume of Fengyu Brand's latest entry-level micro DV has exceeded 100,000 units!"
"What are you talking about? In less than a month, the sales have exceeded 100,000 units? Didn't we expose so many shortcomings of that machine in the media?" Norio Ohga was shocked. This was exactly what he imagined. It’s different.
After learning that Fengyu Brand had launched a low-performance micro DV, he asked people to evaluate its performance parameters, and then attacked it in newspapers, professional magazines and other media, citing the various shortcomings of this DV.
But he forgot one thing. The places they attacked were all professional magazines and newspapers. However, the consumers who bought this entry-level DV were not professionals. They were ordinary family consumers.
In their opinion, the advertisements on TV were good, Fengyu Brand was still a big brand, and when they tried it, they looked good and the price was right, so of course they bought it.
Even some consumers who originally wanted to buy Sanni, Songxia and other products couldn't help but feel proud when they saw the low price of Fengyu brand. After comparison, they found that the difference was not big.
Moreover, shopping guides always instill in them the concept that digital products are updated very quickly. A model may undergo a revolutionary technological leap in three to five years. Therefore, there is no need to buy something too good, but the most suitable one.
In this way, the sales of Fengyu brand's micro DV have been rising steadily, while the consumer-grade DVs of these brands in the island countries have been in trouble of slow sales.
What's more, in the consumer-level market, companies such as Philips and Thomson have also begun price reduction promotions, leaving island companies struggling to cope.
"Didn't they do any advertising? Why did they sell so fast?"
"They advertise on the Internet, and what stands out is the core of low prices. They also advertise on various shopping channels, which also attracts a lot of consumers. The sales volume of online malls such as Amazon alone is very large. And this number is still growing rapidly.”
Feng Yu not only has sales terminals such as those stores, but also has a super sales channel, the online mall. How many registered users are there on Amazon, Diobao.com, Polar Bear Online Mall, etc., not to mention other small online mall channels, where the sales are even better than those in stores.
When it comes to competing in retail channels, Feng Yu is not afraid of anyone now. Even a retail giant like Wal-Mart does not have better channels than Feng Yu at this time.
The most important thing is that in the past two years, the overall world economy has been relatively sluggish due to the financial impact of the United States. Of course, it is difficult to sell such expensive products. This cheap product of Fengyu brand has just filled the gap in the market and met the needs of consumers. It is not surprising that the sales volume is good.
"At Christmas, they launched a low-end mobile phone with a black and white screen. How many units were sold?"
Norio Ohga suddenly had a bad feeling. Could it be that there is such a market for these cheap products
"We haven't investigated this yet. President, it's only been a week, how many units can we sell?"
"Don't take it lightly. Get someone to investigate right away. If this low-end phone is really easy to sell, then we, Suai Ai, will also launch one to compete with them in the market!"
"President, the price of this mobile phone is only 49 US dollars. What profit can there be? For 49 US dollars, can it still be a mobile phone? If we launch it, it will make people look down upon our love." The assistant was shocked.
"When our favorite mobile phones are used in the streets and alleys, will anyone still look down on them? If millions of units can be sold, even if the profit of each unit is only two or three dollars, then there will be profits of tens of millions of dollars. "
"President, the profit of only tens of millions of dollars is not worth what we do, right?" The assistant was somewhat disapproving.
After all, Suai still has shares in Ericsson, and about half of the profits will be shared with Ericsson. At that time, there will be only a few million dollars in profit. After taking into account the research and development and promotion expenses, how much will be left
And this low-end phone does have a big impact on the brand. Suai's own market share has been declining. Doesn't this make people think that they want to specialize in low-end phones.
Norio Ohga was also a little hesitant. He also had the concerns mentioned by the assistant.
"In this way, you notify us, and an executive meeting will be held in an hour. We will discuss whether we should enter the low-end market."
…
"Mr. Feng, I didn't expect that in less than a month, our micro DV sales exceeded 100,000 units, and the market response was very good and the reputation was good. Although the profit margin has dropped a lot, our sales have surged and our market share has increased." The efficiency has also increased a lot, which will be of great benefit to our future product promotion." Xu Lihua reported to Feng Yu with a happy face.
"What's so exciting about only 100,000 units? I think the sales volume of this low-end micro DV can exceed five million units at least!" Feng Yu gestured with a slap.
"How many? Five million units! Can it be that high?"
"Why not? You also said that sales are growing now. After our costs drop in the future, we can lower the price again or give some gifts, which will definitely stimulate a lot of sales. And don't forget, the city's market Once this is done, we can also attack the rural market. Although the Chinese market has been given to Aihua, foreign countries are also divided into urban and rural areas. Don’t those rural people abroad not want to buy DV? "
"I understand, then I will ask them to increase their promotion efforts in less developed countries. If they can capture these markets in one fell swoop, our future sales can be expected."
"Have those electronic companies in the island country launched low-end micro DVs?"
"Not yet, and Philips and Thomson have no plans to enter this market. It seems that they still have concerns, thinking that this will lower the value of the brand."
Feng Yu curled his lips, you Philip have razors that cost hundreds of dollars, but don’t you also have razors that cost less than ten dollars? Products at different prices target different consumer groups. What’s the problem? As long as the product positioning is clear, there is no need to worry about lack of publicity focus.
"It would be better if they give up. We can dominate this market."
"Mr. Feng, it seems not necessarily true. Although the large electronics manufacturers in island countries and Europe do not produce micro DVs, some small manufacturers still do. Their prices are similar to ours, and their performance is not much different."
"It doesn't matter, they don't have better sales channels, and if the sales volume can't increase, then there won't be much profit. Aren't our costs still falling? In a few months, if we cut the price again, we will be able to kill a lot of them. As for the remaining We are about to continue to expand, I think we can acquire them and make them our factory!"
…
(End of chapter)