Philips didn't invite any big stars to endorse it. They were actually interested in a world-class singer or big star, but unfortunately they couldn't talk about it at all. Because they are interested in Michael Jackson, and Michael Jackson is owned by Sony Records. How can they let him endorse Philips products
In the end, Philips decided to take the usual technological route, just like Fengyu Brand, which simply showed the advanced nature of the product and highlighted Philips' brand technology.
Moreover, Philips' advertising investment in this area is also not small. It is also an overwhelming advertising campaign, especially in Europe, which is the craziest.
Super VCD advertised so crazily, and sales increased steadily. However, due to the price reduction of ordinary VCD, the sales of other brands declined faster and faster.
Now even some big companies can’t handle it. Except for Sony, Dongzhi, HP, Pioneer and other companies, other brands have decided to talk to Fengyu Electronics, or to be convinced.
…
"Mr. Feng, the Chinese representative of NEC called and wants to talk to you about DVD industry standards." Jiang Wanmeng reported.
Feng Yu raised his eyebrows, is he finally here
These methods of his are all interlocking, layer upon layer of oppression, forcing the giants in the field of consumer electronics to surrender.
Start licensing their VCD patented technology so that they can produce VCDs. And when they first lowered prices, Feng Yu kept his brand from lowering prices and gave them part of the market.
When those companies see that the market is getting better and better, they will continue to expand production capacity and increase investment in publicity, hoping to gain a larger market and gain more profits.
At this time, Feng Yu gave them a blow by lowering the price of ordinary VCDs. But the blow was not particularly severe. Let them still make a profit.
Now that there are profits and production capacity has been expanded, they will not admit failure easily. For those big companies, launching a product and then taking it off the shelves within a few months will do great damage to the brand.
As a result, some small companies were forced to stop production after processing the remaining goods. They only produced 10,000 units according to the minimum licensing contract. They made money at first, but later lost some money. Overall, there is still a slight surplus. But if we continue to produce, we will only lose money.
Immediately after the super VCD was launched, the price of ordinary VCD was reduced again. Moreover, Fengyu Pai, AIWA, Philips and other channels have joined forces to increase the number of retail outlets for their products, once again suppressing the VCD sales of other brands.
Those large companies continue to insist on production and also combine sales channels. to increase sales.
At first, their sales did increase and they thought the crisis was over, but they didn't expect it. Fengyu Pai, AIWA, and Philips have invested such a high amount of money in advertising. How can this not stop them from playing
If you invest such a high advertising fee, can you still make money? The profit of an ordinary VCD is only so much, even if the profit of a super VCD is very high. But the profit is only a little over two hundred dollars, right? Ten thousand units is only a little over two million US dollars.
Such a large-scale advertising costs one year. It costs at least tens of millions of dollars. How many units can you sell in a year? Are the bosses of these companies crazy and will they settle accounts
But they soon discovered that it was not the bosses who were crazy, but their products that could really make money.
Not to mention ordinary VCDs, super VCDs alone will sell more than 500,000 units a year after such a large-scale advertising campaign. However, there are only four brands competing. Even on average, each of them will have at least 500,000 units this year. If 100,000 super VCDs can be sold, the profit will be more than 20 million US dollars, which can fully recover the investment in advertising fees and still have some surplus.
The important thing is that the sales of these brands that produce ordinary VCDs have also been declining under the siege of Super VCD and Fengyu brand and AIWA brand ordinary VCDs, and the market will be completely ceded.
According to their calculations, VCD sales this year will definitely exceed one million, of which they will take half, while the other half will be divided by Fengyu Electronics and AIWA. This part of the profit alone is not a small amount.
The most despicable thing is that they started the market, but others plucked the peaches!
Of course, they don't know at all that the future sales of VCDs will be astronomical. Even in some developed countries, there is an average of one VCD for every two households, and the number for commercial purposes is also not small. Total sales can exceed 100 million units.
When DVD is launched, the combined sales of the two products will exceed one billion units!
However, this explosive period in the previous life was around 1997 and reached its peak in 1999. But now everything is ahead of schedule. Feng Yu estimates that next year will be the breakout period, and the peak period will come earlier.
Fengyu Electronics will also have more funds to develop better optical recording drives faster and earn high profits from this part.
In short, these companies were led by Feng Yu, opening up the market for Feng Yu, and most of the money they earned fell into Feng Yu's pocket. Now they are even more desperate. If this continues, they can all foresee that they will not make any profits and may even lose money.
At this time, some companies couldn't stand it any longer. In the final analysis, they had no grudge against Fengyu Electronics. If two large companies wanted to occupy the market, the best way was not to compete and suppress each other, but to cooperate and monopolize the market. , just like Fengyu Electronics and Philips.
But because they chose to support the other party regarding DVD standards, they were unable to cooperate. But now some companies have decided to turn around and support the Fengyu-Philip standards promoted by Fengyu Electronics in exchange for more favorable terms, allowing them to get a share of the VCD and future DVD markets.
NEC was the first to contact Fengyu Electronics. Of course, it was also related to the fact that NEC's relationship with Sony and Dongzhi was not particularly good.
But Feng Yu didn't meet the Chinese representative of NEC. He was just a Chinese representative, so he wanted to see him? Even if the president doesn't come, it should be the vice president, right
After Feng Yu rejected the NEC representatives, representatives from some companies immediately contacted Jiang Wanmeng, wanting to meet with the real boss of Fengyu Electronics to discuss some matters.
Originally, they all contacted Jiang Wanmeng, thinking that Jiang Wanmeng could make the decision. But Jiang Wanmeng told them that although he was the shareholder and general manager of Fengyu Electronics, Fengyu Electronics also had a major controlling shareholder, and that was the one who made the final decision.
As a result, people kept wanting to meet Feng Yu, and the status of the people sent became higher and higher in the company, and the company's scale became larger and larger.
All of them have the same idea: to be the first in the DVD industry standard and support the Fengyu-Philip standard in exchange for lower patent fees, allowing them to once again make profits on VCD players.
To put it bluntly, industry standards can be supported by any company. Anyway, the original standards were not formulated by them. In the business world, there are no eternal friends, only eternal interests!
When Songxia's vice president came in person, Feng Yu finally stepped forward to give Sony and the others an even heavier blow! (To be continued.)
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