readx(); At this time, various VCD brands have flooded all over the world, and the market for traditional video recorders has further shrunk. All manufacturers are losing money, and some big brands have stopped producing traditional video recorders after handling the final shipments. Video recorders, because they have also obtained the patent license for VCD.
As for those small companies, they declared bankruptcy one by one, because even if they sold them at a loss, few people are willing to buy them now. Just like mobile phones are about to become popular, who will buy pagers anymore
While these large companies were still negotiating with each other to unify the retail price to ensure their own profits, they did not expect that Fengyu Electronics made a decision that they thought was crazy!
Fengyu VCD price reduction promotion!
VCD was invented by Fengyu Electronics, and the initial price was also set by Fengyu Electronics. Other VCD manufacturers also obtained patent licenses from Fengyu Electronics. However, when other brands of VCDs were sold at reduced prices, Fengyu Electronics' VCDs still maintained a selling price of more than 3,000 RMB.
At that time, Sony and other companies were still looking at jokes. Do you think Fengyu Electronics is a big brand? Is your brand value as high as ours, Sony's? Trying to use the added value of a brand to increase profits is doomed to failure.
Facts have also proved this, the sales volume of Fengyu VCD has been declining steadily. When Norio Ohga knew the news, he was so happy that he died.
Which Fengyu brand, Aihua brand or AIWA brand? Do you think that because you produce the VCD first, you can sell it at the highest price? Do you regret it now? Your high prices are doomed to fail.
But now, Fengyu VCD suddenly announced a price reduction and a big promotion, and the intensity is so huge! The retail price of each VCD has been reduced from more than 3,000 yuan to 1,999 yuan! This is hundreds of dollars cheaper than the price of more than 2,000 dollars from other companies.
At the same time, Aihua brand VCD and AIWA brand VCD all announced price reductions and promotions. The promotion intensity is exactly the same as that of Fengyu Brand!
Now other brands are dumbfounded. After this, consumers will definitely not buy their VCDs again. After all, those three brands are the oldest brands of VCD!
This year, the RMB suddenly devalued, causing the exchange rates against various foreign currencies to plummet. Last year, the RMB-USD exchange rate was still hovering around 5.8:1. Now it has become 8.2:1, which means that the patent fee of fifty US dollars is equivalent to more than 400 RMB!
The price difference between Fengyu brand VCD and other brands of VCD is about fifty dollars, which makes other companies hate it.
Fengyu Electronics is doing such a disservice. If we follow your price reduction, our actual selling price will only be about two hundred US dollars, excluding the cost of more than one hundred US dollars. What else do we make? Didn’t all the big profits go to Fengyu Electronics
The most hateful thing is that if Fengyu Electronics had lowered the price when it licensed the patent to them, then they would not be so passive. But when they saw that the sales were good, they expanded the scale.
But the profit per unit suddenly dropped by fifty dollars, which was a huge loss for them. If it had not been expanded before, it would not have mattered, but it was expanded. Profits have dropped a lot, so how can anyone play with it
The reason why Feng Yu has to wait is that there has been no price reduction, and he is waiting for those brands to expand their scale. To wear them down.
Feng Yu knew very well how much this VCD cost. In the past, the cost of Fengyu Electronics was more than 1,000 RMB, but as the scale expanded, the workers became more skilled, and the equipment became more efficient, the cost has been reduced to more than 600 RMB. In other words, Feng Yu's profit is still ahead of other companies in Yaoyao, because the costs of other companies are more than 1,000 RMB.
Those companies have just expanded in scale, and their workers are not skilled enough. Fengyu Electronics has not sold some core technologies to them, so their costs cannot be reduced for the time being.
Originally these were nothing, costing more than a thousand yuan, but they sold them for more than two thousand yuan, and still made a profit. But after taking out the costs of tariffs, transportation, sales, etc., their profits are not high. At least in the Chinese market, their profit for one unit is only about fifty US dollars.
Feng Yu's price reduction made it impossible for those foreign brands to continue operating. There are only two ways now. The first is to produce in mainland China, which exempts some tariffs and transportation costs. However, the cost of investing in new factories is not small. The second way is to withdraw from the Chinese market and consolidate their base camp.
Most foreign brands have chosen to withdraw from the Chinese market. In some areas where AIWA has factories overseas, they have also begun to slowly withdraw. Who allows those factories to also produce VCDs of Fengyu brand and other three brands
But they discovered that in this way, wouldn't they directly give up part of the Asian market, part of the European market, and most of the American market
How can this work! They have just developed the market, and the harvest season is about to come. If they give in now, wouldn't all their hard work ahead be in vain
So they decided to withdraw only from the Chinese market and continue to compete in other markets. In those markets, their factories are larger than AIWA's. Are they still worried that they won't be able to compete
The most important thing is that they cannot withdraw. Once they withdraw, they will completely lose the opportunity to participate in the profits of the VCD industry and even the future DVD industry.
What should I do? They also lowered the price to the same standard as Fengyu VCD and so on. Anyway, even if this is the case, they still have profits, just a little less. But if they quit, they will have no profit at all!
…
Price reduction promotion is the simplest and most direct way to seize the market. In his previous life, Feng Yu had seen many brands use this method to quickly seize the market. And when the market is theirs, they will increase the selling price again to make back profits.
As soon as Feng Yu came out with this killer move, the market share of Fengyu VCD and others in China rose to 50% again, and continued to rise, with sales volume getting higher day by day.
Sales abroad also began to rise rapidly, and the initiative was once again in Feng Yu's hands.
Jiang Wanmeng and the others suddenly discovered that after the price reduction, their profits were not less, and their sales volume increased. Moreover, in the past few months, the sales volume of VCD discs has far exceeded his imagination, and Fengyu Electronics' profits have not decreased!
Coupled with the patent licensing fees, Fengyu Electronics' profits have actually increased a lot.
At this time, Feng Yu once again launched the second phase of the promotion. If you buy a VCD, you will receive more movie and music CDs, not just a New Year's Day party CD.
Buy one get two free, the promotion is very strong.
Most people buy VCDs for the purpose of watching movies, listening to music or singing. When they buy a VCD player, the consumption of CDs is not a small amount, just like buying a car and filling the tank with gas. It always feels like every time It didn’t cost much, but at the end of the month, it was not a small amount.
The cost of a CD, including copyright fees, transportation costs, etc., is no more than ten yuan. But just this 20 yuan profit transfer has caused the sales of Fengyu Brand VCD to increase again.
"Mr. Feng, our sales are growing rapidly again. Your promotion method is so cost-effective!" Jiang Wanmeng said excitedly.
"This is nothing. We will continue to launch follow-up activities. Anyone who purchases our products can participate in the lottery. The grand prize is a full cashback of the purchase amount, the second prize is half of the cashback, the third prize is a bladeless fan... and the final prize is With a movie CD or a music CD, everyone can win!”
Feng Yu brought out some promotional methods from his previous life. Those big brands don't understand the real methods of promotion at all, so they are doomed to fail! (To be continued.)
PS: The fourth update is to make up for the update I owed yesterday. There are two more updates ahead, don’t miss them. There is a monthly ticket doubling event at the beginning of the month. Please vote more for the fourth child. When the fourth child returns home at the weekend, you will be able to see how hard the fourth child is!
Also, for those in the group who cursed me as a bachelor, I also cursed your girlfriend, Auntie Tiantian! ! ! Is it really easy for me to go on a blind date? Do you think it’s easy for me~~