Extraordinary Genius

“By the way, President Feng, there's one more thing I've been meaning to ask. Before, you were sure that those companies would never withdraw their capital and would admit compensation. Why?” Commissioner Bau asked curiously.

Feng Yu explained briefly: “Because of the market. The simplest way to determine whether a company can make money is to sell more products, which depends on how much they sell. ”

“As for other things, like costs, etc., but ultimately, companies make money by relying on product sales. This product can be visible in kind, like a car. It can also be invisible, such as design concepts, etc. All of this has to be sold to be exchanged for money. ”

“And how much money you make depends not only on how much you sell, but also on your profit margin. For example, a 399-yuan RMB phone now launched by Rain Phone has a very high sales volume, a month's sales volume, which matches the sales volume of the previous product in a year, but the profit margin is very low, and the overall profit is not necessarily too high. ”

“Prices, quality, visibility, sales channels, etc. determine the volume of the product, and the price is the most important one. The quality, visibility and distribution channels of the products are important, and the quality of these is slightly weaker. ”

“The popularity we're talking about is well understood, how many people know about the brand, how many people think it's trustworthy, it's a brand name product. And the sales channel, mainly reflects the market. ”

“We always talk about a market economy, which has actually underlined the importance of the market. The market, frankly, is a trading place. But today's companies are always counting a kind of data called market share. The so-called market share, that is, the share of a product in the sale of similar products in the market. ”

“We will find that companies with high market share have very good incomes. When they become the number one market share, the brand's visibility will also be greatly enhanced, and with more profit, it will be possible to better promote the product and improve the quality of the product, thus forming a virtuous circle. ”

“Ultimately, this market share looks at the sales volume of the product. But a market, it could be saturated. For example, if there are only 300,000 people in this city, you can't sell out half a million bicycles, even if the price drops below the cost, because few people buy two, not to mention many families have small cars, they don't need bicycles at all, and families travel by public transport, and they don't ride bicycles. ”

“So what if most of the 500,000 bikes don't sell? There is a need to develop new markets, such as neighbouring cities, such as other surrounding areas. A brand has grown for many years and will inevitably touch the saturated edge of the market. It cannot be said that the market is completely saturated, there is always a replacement or something, but sales growth can no longer meet the increase in production, then a new market must be opened up. ”

“Africa, under the impression of many, is a poor region. But some of the world's top car companies, such as Mercedes-Benz and Volkswagen, are focusing on developing African markets. Because there is a near-empty market, once occupied, Africa's economy will grow in the future, and they will reap ever-growing profits. ”

“For example, like when this phone first entered the Huaxia market, although the economic situation in Huaxia was not very good, and the rich were very few, some of them were already wealthy. Through their drive, people noticed the phone, which should have been called Big Brother. And when other people have money, they want to buy big brother, and the most likely thing is to buy the same as them. ”

Feng Yu had heard a joke in his previous life, saying that a coal owner had come to Beijing City to pick up a Jaguar sports car, but a few days later, he had bought another Mercedes-Benz. Why? Because Jaguars don't know each other, Mercedes-Benz is considered a luxury car, and that's what brands do.

“And Ericsson, Motorola, etc. which initially dominated the Warsaw market, made a lot of profit from it, and their development was very good at that time. Later, with our storm phones and Edward phones, their product sales have declined and their profits have naturally been declining. Now, Ericsson has had to work with Yunni to maintain the mobile phone business. ”

“Besides, why do some island companies that we have driven from the Huaxia market always want to re-enter the Huaxia market? Because we have a big market and a better advantage than Africa. As our economy grows fast, our consumer capacity will increase rapidly and our market potential will grow. How many phones were sold in a year, and now more in a month than then. ”

“By taking a higher share of the market, you get the most benefits and the most profits when the market breaks out. The increase in market share is not just an increase in these cash receipts, but also includes intangible assets such as brand value. For example, a listed company, even if its income is not high at this time, but it has the highest market share, will see sharp increases in share prices, because investors believe that companies that control the market will certainly make more money. ”

“When the former islands collapsed more than a decade ago, they began to exploit our Huaxia market vigorously. During that time, did they find that their relationship with us had eased considerably, that they were willing to invest in us, that they were willing to help us upgrade some technology, even provide us with some assistance, etc., but accordingly, we had to provide some facilities for the import of their products? ”

“At that time, many of our appliances, machinery, etc. were from island countries, and even then it was thought that island countries' products were the best. Had it not been for the subsequent development of domestic firms to seize back the market, our country would have had a wide array of island products on the market, thus severely inhibiting the development of our own firms. The longer it takes, the harder it will be for us to develop. ”

“What they are doing is our market, and with the rise of our Huaxia market, the island economy has eased. This also shows how good the Huaxia market is and how great its potential is. You don't necessarily make money entering our Huaxia market, but if you don't, you'll never make that money. ”

“No company can say that it has abandoned our high-quality potential market, Huaxia, to see how many people we have here, how fast the economy has grown over the years, to see how huge the potential is. ”

“So if they don't want to give up our market, they won't withdraw their capital, they won't dare. And normal businesses, how could they abandon our market? Even though they have gone from sole to joint venture, they still have a sales channel that allows their products to enter the Huaxia market. ”

“So when we negotiate with FDI in the future, we should be harder, because we control one of the best markets in the world! ”

When Feng Yu said that, Commissioner Bao's eyes grew brighter and his heart made some kind of decision.

……

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