The sales channels of Feng Yu and Philips are different. They each have their own channels. In China, Feng Yu has better channels, but Philip has stores, while Fengyu does not.
Overseas, Feng Yu has channels from Fujia and AIWA, and AIWA also has many stores. Philips also has many cooperative merchants and also has its own stores.
So Feng Yu and Thomas agreed to borrow each other's channels and work together to push the sales of super VCDs to new heights. However, the two had differences regarding the sales of ordinary VCDs.
Thomas made it very clear that Philip does not own ordinary VCDs. Only you are selling them. Doesn’t Philip lose money
What others said made sense, but Feng Yu quickly thought of a simple solution. Don’t Philips have other products? How about we exchange channels for all products
Philips also sells razors, televisions, lamps and other products. As for more professional medical equipment, they are not included. Fengyu Brand and Aihua Brand also have humidifiers, bladeless fans, pagers and other products. They are also small in size and can be sold in Philips stores.
As a result, the two companies cooperated comprehensively, not only sharing sales channels, but also opening a special counter for each other in the store. The advantage of this is that it allows wider sales coverage and makes it easier to sell products.
But there are also disadvantages, that is, it is easy for others to misunderstand and mistakenly think that the two companies have merged and that these brands belong to one company, but it is actually Feng Yu who suffers.
After all, Philip's brand is still above Fengyu Brand and AIWA brand. Others will only think that Philip has acquired Fengyu Brand, but not that Fengyu Brand has acquired Philip.
But Feng Yu doesn't care, what he wants now is the market. The popularity of Fengyu Electronics Company will be damaged, but the brand value of Fengyu Brand will not be damaged. When the market is fully expanded, consumers will naturally know clearly that the two companies are only strategically cooperating.
AIWA was initially controlled by Sony, but didn’t the brand still survive? And now AIWA's Walkman has surpassed Sony's.
Both parties are very satisfied with this cooperation. Originally, the two companies had cooperated in many aspects on technology, and it was normal for them to help each other through channels.
A week later, the retail outlets of both parties' products increased by more than 50%.
However, the retail price of Super VCD is still very expensive, and not many people buy it. Fortunately, the profits are very high, and Feng Yu is quite satisfied.
What makes Feng Yu most satisfied is that the sales of ordinary VCDs are getting better and better. The price is cheap, the quality has not declined, there are many promotional methods, and there are comparisons with other brands, so ordinary VCDs have brought a lot of profits to Feng Yu.
At this time, other brands also discovered that no one could compete with Fengyu Brand if they went it alone. After all, other people's patent owners were the first to develop and produce VCDs, both in terms of cost and technology, which were very mature.
Now such a price reduction has severely reduced their profits. Philips has fully cooperated with Fengyu Company and AIWA Company, and they have also decided to join forces to share channels.
Those world-class consumer electronics brands all have huge sales channels. Whether they are distributors or self-operated stores, the number is not low. Once they join forces, they can sell their products to almost any city they want to sell.
Whether they are competing for the number of channels or the number of stores, they can have the upper hand, but I don’t believe it. This will not increase sales.
The bottom line is, they have to. Many of their products are still backlogged in the warehouse. If they are not dealt with as soon as possible, what if the products are updated after a while
There is still only one Super VCD, but its functions have become much more advanced. What if there is a second generation Super VCD next year? Or what if the technology of DVD simply matures and they launch DVD directly
At that time, their products may not be sold even if the prices are reduced. It is better to join forces now and at least sell them now. Although they will not make any money, they will not lose money.
If VCD prices drop again and none of them can stand it, they will be completely cheated by Fengyu Electronics!
A small company called Fengyu Electronics actually cheated so many of them, world-class giants in the field of consumer electronics. When word spread, they themselves felt embarrassed!
Now they have united to resist, and at the same time they have united on DVD recording standards, intending to teach Fengyu Electronics and Philips a heavy lesson!
The recording standards are set by them, so the player must read them according to their method. In this way, they are ahead in the research and development of DVD players.
…
"Mr. Feng, it's bad. Those big companies have joined forces and borrowed each other's channels. Their ability to distribute goods is stronger than ours!" Jiang Wanmeng said angrily when he saw Feng Yu.
Feng Yu smiled and waved his hand: "Why are you panicking? It's just that they have more retail outlets. What's the point? If they use our patented technology, don't they have to pay us? Besides, the difference between super VCD and ordinary VCD , you haven’t seen it yet, CCTV will broadcast our new commercial in two days, and foreign commercials will also start to be launched, which will be a fatal blow to them at that time.”
Jiang Wanmeng frowned. He felt that Feng Yu believed too much in the effectiveness of advertising. Others were world-class companies, with assets ten to a hundred times that of Fengyu Electronics, and their brand influence was much greater.
Their sales will be good just by relying on the consumption of die-hard fans of those brands, not to mention that they also join forces to promote each other. However, Fengyu Electronics only cooperates with Philips and AIWA. Its scale is too small and it is definitely not a competitor.
"Mr. Feng, although they sell VCDs and make us a lot of money, if the VCDs sold are all of our brand, we will make more money. And our factory has been expanding, and the output has been increasing. Improvement, if the market is taken away by them, our products will also have a backlog!" Jiang Wanmeng said anxiously.
"How much can we control the cost of ordinary VCDs?" Feng Yu asked calmly.
"It's less than 700 RMB, and it can be lowered. In the end, it can be reduced to almost 500 yuan per unit." Jiang Wanmeng said.
Feng Yu frowned, still feeling dissatisfied. He clearly remembered that in his previous life, around the turn of the millennium, the price of VCDs dropped to more than 300 yuan per unit, which meant that the cost of this VCD should be controlled to about 300 yuan. Now that Fengyu Electronics has the most professional VCD engineers in the world, can’t the cost be controlled
"In the end, it can only be reduced to 500 yuan per unit? Can't it be lower?"
"There is no way to go lower. The prices of many components here cannot be reduced, and our labor costs are not low either."
Feng Yu suddenly realized that those small factories in the previous life must have squeezed the cost of workers, and the components must have been purchased at low prices. In this way, the price of the product was reduced to more than 300 yuan. At that time, VCD had almost been eliminated. .
"Okay, I get it. Those brands are just clowns, so there's no need to worry. If you look at these ads, you'll know where my confidence comes from."
(End of chapter)