Liu Chuanzhi has also been very busy at work recently. The main reason is that Lianxiang's computers have withstood product challenges from Taiwan, South Korea, Europe and the United States. In other words, with the help of the state, Baodao's computer brands have begun to enter the Chinese market on a large scale.
At this time, China's relationship with Baodao eased and the market was opened to Baodao. The original intention was to exchange what was needed and achieve economic integration, thereby assimilating Baodao.
But they forgot that where China is strong, Baodao is also very strong. On the contrary, because Baodao has some advantages in imports, it is more competitive than Huaxia products in many products.
Among them are computers, especially laptops, which have been hardest hit.
The representatives are three brands, Asus, Acer and Acer. Acer and Acer still have the same founder, or it means that Acer was once a subsidiary of Acer and was later separated.
Asus is the world's top motherboard supplier, accounting for more than a quarter of the world's motherboards. Since it started making computers, notebook sales have continued to rise and the momentum has been very rapid.
Acer and Mingqi are slightly worse, but they still perform well, at least not worse than manufacturers in island countries and South Korea. The production and sales of notebooks also rank among the top in the world.
As for China, there is another relatively large computer brand called Shenzhou. This company mainly produces laptops, but the price is very low. The price of computers with the same configuration is lower than that of Lianxiang.
Lianxiang itself relies on its huge production and sales volume to continuously reduce costs and is one of the best in the world, but unexpectedly, the cost of this China is even lower.
After research, Liu Chuanzhi found that he finally understood why China’s cost could be so low.
First of all, Shenzhou is not entirely assembled. Piecing together and assembling belong to the most downstream, that is, the bottom of the food chain, with the lowest profits, and it is not easy to build a brand.
Intel and Chaowei are upstream companies with a strong focus on R&D, design and production, but their own-brand computer sales are average.
There are also mid-stream manufacturers, such as Dongzhi, Four Star, etc. They produce main accessories, and then part of them are researched and developed, and part of them are purchased and assembled.
There are also top hardware manufacturers such as Eagle Weida, which gave up the opportunity to make their own PCs and concentrated on making their superior products, which can also be said to be the main accessories of computers.
ASUS is an upstream manufacturer here. They are one of the world's leaders in motherboard manufacturers. Their costs are similar to Lianxiang's, which Liu Chuanzhi is not too surprised about.
But in China, the technology is probably much different. Even if they want to be a mid-level company, independently develop some of the main components, and then rely on their advantages to produce computers, they still need to have advantageous products.
China has no advantage in any major computer accessories, nor does it have any outstanding products. As for patents, there are some, but those patents are not worth others coveting, let alone Lianxiang.
So how does China control costs? One is that workers in their factories are paid lower wages, which can reduce production costs.
Furthermore, they do not have direct stores, they are all franchised. During the expansion period, the franchise fees are also very low, allowing their franchise stores to expand rapidly.
In addition, the boss of Shenzhou drew a pie for all employees, using Lianxiang Group as a template to draw a pie for employees, telling them that the current hard days will soon be over, and in the future everyone will have original shares, and the company will be listed. After that, everyone was at least a millionaire, so now their employees' wages are very low, and their benefits and benefits are far from comparable to those of Lianxiang Group.
As for listing, Liu Chuanzhi believes that it is impossible for China to successfully IPO in a short period of time because their accounts do not meet the listing requirements. Furthermore, domestic review of IT companies is relatively strict, and few investors believe that China will be able to do so. If it stands still, it may be short-lived and will soon be acquired by other manufacturers.
The last point, which Liu Chuanzhi finds very interesting, is that China relies on its geographical advantage and is close to the port, so they often import some tail goods.
What is tail goods? It means that some factories have produced products, but due to some reasons, the orders have been canceled, resulting in a backlog of products. Or some factories produce products that do not meet their expected sales volume, resulting in a backlog of products. There are also some reserved "losses", which are reasonable theoretical losses, but in reality they are not that big.
There are many reasons for tail goods, but it is undeniable that factories are eager to get rid of tail goods. On the one hand, it can clear inventory, prevent warehouse occupation, and prevent the waste of these materials. On the other hand, the realization of tail goods is also an income. Although this income is very low, it is unplanned.
But now, China not only buys some off-the-shelf accessories to assemble into its own notebooks, but another way is to import off-the-shelf electronic components and then produce the accessories itself to assemble the computer. This is what China calls independent research and development. , they barely managed to squeeze into the second echelon.
In the case of tail goods, product quality cannot be effectively controlled, so Shenzhou's computers often break down and even have a high repair rate, but the cost can really be 40% lower than that of its peers!
What is the concept of 40%? Nowadays, the profit of notebooks is only more than ten percent, and the profit of desktop computers is no more than 8%, and the profits are still gradually declining, because there are more and more manufacturers. More and more companies are starting to lower their selling prices, and the costs of publicity, production, and sales are still increasing rapidly.
The cost of China's most common notebook is 20% lower than that of Lianxiang, which is why it has such great price competitiveness. What others are currently promoting is a selling point, cheap!
You sell a laptop for 10,000 yuan, but I only sell it for 8,000 yuan, or even 7,000 yuan. The performance parameters are still the same. How will consumers choose
Even if my after-sales service is not good, how much does it cost to repair my computer? What's more, although the quality is slightly worse, the repair rate is high, but it is not too high. This high rate is only compared to other brands of notebooks, and is not even higher than the repair rate of some home appliances.
They also captured the psychology of many users who like cheap products. After all, this is a notebook, not a desktop, and it looks more high-end.
As a result, domestic notebooks have entered the mode of competition among major powers. Lianxiang mainly targets manufacturers’ brands in Europe, America, island countries and South Korea, thus neglecting other brands, allowing them to quickly start to expand and steal a lot of Lianxiang Group’s share.
In the desktop market, there are more and more assembled machines, especially those in computer malls. The machines they save for customers are cheaper than the ones sold by Lianxiang Point of Sale.
The method they use is also to tie in with some off-price goods. Customers can't tell anyway, so if something goes wrong, they can just cover it with warranty.
The notebook and desktop markets are being challenged at the same time, which makes Lianxiang Group quite passive. They are actively expanding to Europe and the United States, but they haven't taken over there yet, and their base camp has been breached by others.
Just in time, when Feng Yu proposed a tablet computer, he reminded him, why not produce a laptop with slightly simpler functions? The price is cheaper, coupled with Lianxiang's brand and certain publicity, it is bound to sell well.
But he and Feng Yu had different opinions on how to market it.
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