"Brother Fu, how is your contact?" Feng Yu has been back to the United States for a week. He stayed in Seattle. When he was happy, he went to Microsoft to hang out. He also took the time to watch two NBA games. Rain Man Camp's playing style , it’s so enjoyable to watch!
But Feng Yu was fine. He had been waiting for the news from Fu Guangzheng that Fengyu Mobile Phone had landed in the American market. Of course, it was still the trading company entrusted by Fu Guangzheng.
Mobile phones can be said to be electronic products, but they are different from VCDs because the consumers of mobile phones are individuals, not families.
The Fu family's sales channels in the United States are nothing more than some distributors. Some of them distribute communication electronic products, but none of them are strong enough.
Moreover, the United States is the home base of Motorola. At its peak, almost nine out of ten mobile phones in the United States were made by Motorola. Even now, with the entry of European and island countries’ brands, they still rank first in market share. The brand is a well-deserved overlord, more invincible than in other markets.
Distributors who are capable of selling mobile phones have set extremely harsh conditions. It's not that they don't give face to Fujia. After all, we have cooperated with each other for many years.
But they all believe that there are so many mobile phone brands now, and there is Motorola above them. Fengyu brand mobile phones have no reputation and no strong advertising promotion, so there will be no sales.
They admit that Fengyu brand mobile phones are beautiful in appearance but not powerful in function. And because Fengyu brand mobile phones are imported products, after adding taxes, they are even at a disadvantage in terms of price.
There is still a big gap between the Fengyu brand and Motorola in the field of mobile communications. The functions are similar, but the price is at a disadvantage, so it will definitely not sell well.
Since it is a product destined to not sell much, they have to spend almost the same effort on distribution, so the conditions are naturally higher.
Fu Guangzheng, who was sitting opposite Feng Yu, shook his head and sighed: "No, no one's conditions can be met by us, unless we sell at a discount. But what's the use? Once Motorola is angered, if they launch a price War, I’m afraid we won’t be able to sell even one of our mobile phones!”
As the world leader in mobile communications, Motorola would not be too difficult to attack any new brand of mobile phone at its base. Nokia, the king of Europe, is far inferior to Motorola in the United States.
This is different from Feng Yu’s sniping at Motorola in China. In China's mobile communications market, Motorola is also the leader. Feng Yu seized the market with his local advantages, some connections and lower prices. In the United States, Fengyu Mobile has these advantages. In fact, these aspects are the disadvantages of Fengyu Mobile!
"What shortcomings do they think we have?" Feng Yu asked curiously.
"The product is single, the brand awareness is not high, the supply is not large, the advertising is not enough, the price is not advantageous, etc." Fu Guangzheng was also very depressed. He also tried the Fengyu brand mobile phone, and the quality was really good. It is small in size, beautiful in appearance, and has good color, but the shortcomings mentioned by the dealers are all indisputable facts.
The promotion of a new product is not easy in itself, let alone a new product in a new field. The popularity of Fengyu Brand cannot help much.
If Fengyu Brand sells household appliances, then the Fengyu Brand brand is a kind of publicity, but if it sells mobile phones, not many people will be willing to choose it. Without advertising, it will definitely not sell.
However, the output of Fengyu brand mobile phones is not high, and a batch needs to be supplied domestically. The quantity supplied by the United States is itself small. If you advertise for this, it may help sales, but it will definitely be a loss.
Feng Yu lowered his head and said nothing. He didn't know what to do in this dilemma.
Fu Guangzheng said quietly: "It would be great if we had a factory in the United States. As long as we slightly change the appearance, we can produce several different mobile phones, and then the prices will come down. We can advertise on a large scale and increase sales. At that time, those dealers won’t ask for such harsh conditions, and they will even take the initiative to contact us.”
Feng Yu thought, building a factory in the United States
Feng Yu had thought about this for a long time, but he was hesitant. Labor costs in the United States were much higher than in China and much higher than in Russia.
Moreover, we have just discussed with Kirilenko that the cost of setting up four factories to produce electronic products in Eastern Europe is already quite high. The mobile phone market has not yet emerged. It will not be until around the millennium that the mobile phone market explodes. Then, the sales of mobile phones have been growing rapidly for ten consecutive years, and then comes the era of the rise of smartphones.
Isn’t it a little early to build a factory at this time
Seeing Feng Yu's hesitation, Fu Guangzheng became curious. Building a factory in the United States or Canada is the most economically beneficial way. Although the labor cost here is much higher, it can reduce a lot of taxes, freight, etc. The market here is so big, and it depends entirely on imports from China, so it is obviously difficult to supply.
It is enough for Huaxia factories to cover Asia. It is most cost-effective to build factories in Europe and the United States to cover the most populous places.
Fu Guangzheng would not believe it if Feng Yu lacked funds. Just say how much Feng Yu’s shares in Microsoft are worth. You don’t need to sell it, you can get a lot of money by taking out a loan.
He also thought that if Feng Yu acquired or built a new factory in the United States, he would take a share of it, no matter how much. Anyway, he believed he could make money.
"Brother Fu, do you have any hard connections in Brazil?" Feng Yu asked.
To build a factory, it is more cost-effective to choose developing countries because labor costs will be very cheap, and labor costs are one of the main reasons for raising costs.
Fu Guangzheng shook his head: "You want to build a factory in Brazil? I don't recommend it. The labor costs in Brazil are indeed cheap, but the workers in Brazil are not efficient, and the public security in that country is too poor. Without the help of powerful local people, absolutely You will suffer a loss. Don’t expect any diplomatic means, the relationship between Brazil and China is not very good, right?”
From this point of view, if you want to choose a place with good public security and where you can have an impact, it can only be the United States. Wait a minute, it can be in Canada. Don't forget that the influence of Li Chaoren's family in Canada is not small at all.
"Brother Fu, wait a minute, let me call Brother Kai and ask him. He is in Canada. He should have some connections, right?"
Feng Yu decided that he would still open a factory in North America. At worst, he would mortgage the factory shares again. If there are only one or two factories, the financial impact will not be too great. The important thing is to allow Fengyu mobile phones to enter the US market earlier. This is very important.
In China, Feng Yu is not afraid of any world-class large companies, but because that is China, it is not Feng Yu's style to be arrogant. Even in the United States, he has to sit in the boss's seat!
There was some disappointment in Fu Guangzheng's eyes. He wanted to cooperate with Li Zekai, so wouldn't he have nothing to do with him
(End of chapter)