"By the way, Mr. Feng, there is one more thing that I have been wanting to ask. Before, you were sure that those companies would not withdraw their capital and would definitely admit compensation. Why is that?" Commissioner Bao asked curiously.
Feng Yu simply explained: "Because of the market. The simplest way to judge whether a company can make money is to see whether it sells a lot of products, that is, by looking at the volume of sales."
"Others are also important, such as cost, etc., but in the final analysis, a company makes money by relying on product sales. This product can be a visible physical object, such as a car. It can also be invisible, such as a design concept, etc. These have to be sold to be converted into money.”
"How much money you make depends not only on the sales volume of the product, but also on the profit margin. For example, Fengyu Mobile is currently promoting a 399 yuan mobile phone. The sales volume is very high. The sales volume in one month is equivalent to that of the previous product. annual sales volume, but the profit margin is very low, and the overall profit is not necessarily much higher.”
"What determines product sales include price, quality, popularity, sales channels, etc., among which price is actually the least important. Product quality, popularity, and sales channels are more important. Of these, quality is the most important. A little weaker.”
"The popularity we are talking about is easy to understand. It means how many people know the brand and how many people think that the brand is trustworthy and that it is a famous brand product. Sales channels mainly reflect the market."
"We always talk about market economy, which actually highlights the importance of the market. The market, to put it bluntly, is a place for transactions. But today's companies always collect data called market share. The so-called market share Ratio is the proportion of a product’s share of sales of similar products in the market.”
"We will find that companies with high market shares have very good income. When they become the number one in market share, the brand awareness will be greatly improved, and with more profits, they can Better promote products and better improve product quality, thus forming a virtuous cycle.”
"In the final analysis, this market share is measured by the sales volume of the product. But a market may be saturated. For example, this city only has a population of 300,000, and you ship 500,000 bicycles, even if the price is lowered below the cost , it is also difficult to sell out, because few people will buy two, not to mention that many families have cars and do not need bicycles at all, and some families choose public transportation instead of riding bicycles.”
"So what should we do if most of the 500,000 bicycles cannot be sold? We need to develop new markets, such as neighboring cities, such as other surrounding areas. If a brand develops for many years, it will inevitably touch the edge of market saturation and cannot Saying that the market is completely saturated, there will always be replacements or something, but sales growth can no longer meet the increase in production, so new markets must be opened up.”
"Africa, in many people's minds, is a poor region. However, the world's top car companies such as Mercedes-Benz and Volkswagen are focusing on developing the African market. Because there is an almost blank market. Once occupied, the African economy will be affected in the future. As they develop, they will be able to reap a steady stream of profits.”
"For example, when this mobile phone first entered the Chinese market, although China's economic situation was not very good and there were very few rich people, there were still some who had become rich. Through their leadership, people noticed the mobile phone. , it should be called Big Brother at that time. When other people have money, they will also want to buy a Big Brother, and the most likely thing is to buy the same one as them."
Feng Yu heard a joke in his previous life, saying that a coal boss came to the capital and picked up a Jaguar sports car, but a few days later, he came back and bought a Mercedes-Benz. why? Because no one knows Jaguar, Mercedes-Benz is considered a luxury car. This is how the brand dominates the market.
"Ericin, Motorola, etc., which initially occupied the Chinese market, made a lot of profits from it, and their development was very good at that time. Later, after our Fengyu mobile phone and Aihua mobile phone were introduced, the sales volume of their products With the continuous decline, profits will naturally continue to decline, and now Ericsson has to cooperate with Sunny to maintain its mobile phone business."
"Furthermore, why do some of the island companies that we have expelled from the Chinese market always want to re-enter the Chinese market? Because our market is large and has more advantages than Africa. As our economy develops rapidly, our consumption power will increase rapidly. As the number of mobile phones increases, the market potential will become larger and larger. In the past, only a few mobile phones could be sold in a year, but now the sales volume in a month is much higher than that."
"By occupying a higher proportion of the market, you can get the greatest benefits and make the most profits when the market explodes. And increasing market share not only increases these cash incomes, but also includes intangible assets, such as brand value, etc. etc. For example, for a listed company, even if its revenue is not high at this time, but it has the highest market share, its stock price will skyrocket, because investors believe that companies that control the market will definitely make more money."
"The former island country's economy collapsed more than ten years ago, and they began to vigorously develop our Chinese market. During that period, did they find that the relationship between the island country and us had eased a lot, and they were willing to invest in us and help us? They will improve some technologies and even provide us with some assistance, but accordingly, we must provide some convenience for the import of their products."
"At that time, many of our electrical appliances, machinery, etc. were products from island countries. Even at that time, people thought that products from island countries were the best. If domestic companies had not developed later and seized the market, then our country would have been The market will be flooded with various products from island countries, which will seriously inhibit the development of our domestic enterprises. The longer it takes, the harder it will be for us to develop."
"What they are looking for is our market, and it is also because of the rise of our Chinese market that the island nation's economy has been relieved. This also allows all countries to see what a high-quality potential market the Chinese market is and how huge its potential is. Enter us You may not be able to make money in the Chinese market, but if you don’t enter, you will never be able to make this kind of money.”
"No company can say that it will give up this high-quality potential market in China. Just look at how many people we have here and how fast the economy has grown over the years, and you will know how huge the potential is."
"So if they don't want to give up our market, they won't divest, and they won't dare to divest. How can normal companies give up our market? Even if they change from sole proprietorship to joint venture, they still have Sales channels can allow their products to enter the Chinese market.”
"So in the future we should be tougher when negotiating with foreign investors, because we control one of the best markets in the world!"
Hearing Feng Yu's words, Commissioner Bao's eyes became brighter and brighter, and he made some kind of decision in his heart.
…
Five-two-zero, nine-eight, four-six-eight, welcome to join the group
(End of chapter)