Extraordinary Genius

Chapter 624: One Ring and One Ring

Philip didn't get any big star endorsements, but they actually saw a world-class singer, a big star, who unfortunately couldn't talk at all. Because they're looking at Mike? Jackson, and Mike? Jackson is under Sony Records, how could he speak for Philip's products!

Ultimately, Philip decided to follow the usual technology route, just like the storm plaque, simply demonstrating the product's sophistication and highlighting Philip's brand technology.

And Philip's investment in advertising is equally insignificant, and equally insane in advertising, especially in Europe.

Super VCDs are so crazy to advertise, sales are rising, and ordinary VCDs are falling faster and faster because of price cuts.

Now it's just a few big companies, and they can't afford it. With the exception of Sony, Dongzhi, HP, Pioneer and other companies, other brands have decided to talk to Windstorm Electronics or convince Soft.

……

“President Feng, NEC's Huaxia representative called to talk to you about DVD industry standards.” Jiang Wan reported violently.

Feng Yu's eyebrows are finally here?

His means, all tied together, layered oppression, compelled giants in the consumer electronics field to soften.

Start licensing their VCD patents so they can produce VCDs. And when they first dropped the price, Feng Yu kept his brand from dropping the price and gave them a portion of the market.

At first glance, those companies will continue to expand their production capacity as the market improves, while increasing their investment in publicity, seeking larger markets and making more profits.

At this time, Feng Yu lowered the price of ordinary VCDs and gave them a blow. But the blow was not particularly harsh, making them profitable.

Since profits have expanded, they will not easily admit failure. For the big companies, launching a product will take off in a few months, and it will hurt the brand a lot.

As a result, a number of small companies were forced to dispose of the finished goods and ceased production. They all produced only 10,000 units under the minimum authorization contract, which was still profitable at first, and then lost a little, overall, slight surplus. But if we keep producing, we'll have to lose money.

Then came the super VCD, and the average VCD, again, reduced the price. And Windstorm, AIWA, Philips and other channels combined to make their product retail outlets more, once again pushing down other brands of VCD sales.

Those large companies, which continue to insist on production, also combine sales channels to increase sales.

At first, their sales did increase, and they thought the crisis was over, but they didn't think that storm cards, AIWA, Philip were going to spend so much money on advertising that they couldn't play?

Can you still make money by investing so much in advertising? How much does a regular VCD make? Even if the super VCD makes a lot of money, the profit is over $200, right? 10,000 units, just over $2 million.

How many ads can you sell a year on such a large scale, at least $10 million a year? Are the owners of these companies crazy or not?

But they quickly discovered that it didn't seem like the bosses were crazy, it was their products that really made money.

Not to mention ordinary VCDs, just super VCDs. After advertising on this scale, we can sell more than half a million units a year, and only four brands compete. Even on average, each family can sell at least 100,000 super VCDs this year, so the profit is more than $20 million, fully recover the investment of advertising fees, and some surplus.

Importantly, these brands that produce ordinary VCDs, surrounded by super VCDs and windstorm cards and AIWA regular VCDs, are also losing sales, and the market is going to let it all go.

According to their calculations, VCD sales this year can definitely exceed one million, of which they split half, while the other half is split between Rain Electronics and AIWA, which is not a small fraction of the profit.

Most hateful of all, they made the market, but they picked the peaches!

And of course, they have no idea that the future sales of VCDs will be an astronomical number, even in some developed countries, with an average of one VCD for every two households, and the commercial use, again, is not a small number, with a total sales volume of over 100 million units.

When DVDs go live, the combined sales of the two products exceed a billion units!

However, this outbreak in previous life peaked around 97 years ago, in 1999. But now everything is ahead of schedule, Feng Yu estimates that next year will be the eruption period, and the peak period will come earlier.

Windstorm Electronics also has more money to faster R&D, better burn optical drive, and make this part of the high profit.

All in all, these companies were held by Feng Yu's nose, opened up the market for Feng Yu, and most of the money they made fell into Feng Yu's pocket. Now they are forced to go nowhere, and if they continue to do so, they can all foresee that they will not have any profits or even lose money.

And at this point, some companies couldn't stand it. After all, they had no resentment with Rain Electronics. The two big companies wanted to occupy the market, and the best way was not to compete, to suppress each other, but to cooperate, to monopolize the market, just like Rain Electronics and Philip.

But they couldn't work together because they chose to support the other party on top of the DVD standard. But now some companies have decided to turn around and support the Windstorm-Phillips standard introduced by Windstorm Electronics in exchange for more favourable terms so that they can share a share of the VCD and future DVD market.

NEC, the first person to contact Windstorm Electronics, of course, is also not particularly relevant to NEC's relationship with Sony and Dong.

But Feng Yu didn't see NEC's Huaxia representative, a district Huaxia representative, so he wanted to see him? Even if the boss doesn't show up, he must be the vice president, right?

Immediately after Feng Yu rejected the NEC representative, some representatives of the company contacted Jiang Wanzheng to meet with the real boss of Feng Yu Electronics to discuss something.

They were all connected. Jiang Wan Zheng thought Jiang Wan Zheng could make the decision. But Jiang Wan told them that although he was the shareholder and general manager of Feng Yu Electronics, Feng Yu Electronics also had a major controlling shareholder, who was the ultimate slapper.

As a result, people constantly wanted to meet with Feng Yu, and the people sent to the company were becoming more and more senior, and the company was becoming larger and larger.

All of them were the first to support the Storm-Phillips standard on DVD industry standards in exchange for lower patent fees to enable them to make profits on VCD players again.

Industry standards, to say the least, support any one, anyway, they didn't set the original standards. In the business arena, there are no eternal friends, only eternal interests!

When Feng Yu finally showed up after the vice president himself, he was going to hit Sony even harder!