Chapter 642: One Ring and One Ring

In the first volume, Xiao Lotus showed sharp corners, and Chapter 642 was linked one by one

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Philips didn't invite any big stars to endorse, they actually fell in love with a world-class singer and a big star, but unfortunately they couldn't talk about it at all. Because it's Mike that they've their eye on? Jackson, and Mike? Jackson is owned by Sony Records, how could he be asked to endorse Philips' products!

In the end, Philips decided to take the usual scientific and technological route, just like the wind and rain brand, simply to show the advanced nature of the product and highlight the brand technology of Philips.

And Philips's advertising investment in this area is also not small, and it is also overwhelming advertising, especially in Europe, which is the craziest.

Super VCD is so crazy about advertising, and the sales are rising steadily, while the sales of ordinary VCDs are declining faster and faster because of the price reduction.

Now even some big companies can't bear it. In addition to Sony, Dongzhi, HP, Pioneer and other companies, other brands have decided to talk to Fengyu Electronics, or to be soft.

……

"Mr. Feng, the Huaxia representative of NEC called and wanted to talk to you about the DVD industry standard." Jiang Wanmeng reported.

Feng Yu raised his eyebrows, is it finally here?

His methods are all linked one by one, layer upon layer of oppression, so that those giants in the field of consumer electronics have to soften.

Started licensing their VCD's patented technology so that they could produce VCD. And when they lowered the price at the beginning, Feng Yu kept his brand and did not reduce the price, and gave them part of the market.

As soon as those companies see that the market is getting better and better, they will continue to expand their production capacity and increase their publicity investment, wanting to gain a larger market and more profits.

And at this time, Feng Yu let the price of ordinary VCDs drop and gave them a blow. But the blow was not particularly severe, so that they still had profits.

Now that there is a profit, the production capacity has been expanded. They won't admit defeat lightly. For those large companies, launching a product and taking it off the shelves in a few months is also quite damaging to the brand.

As a result, some small companies are forced to deal with the tail goods. Production was stopped. They all only produced 10,000 units according to the minimum licensing contract, and they made money at first, and then they lost a little, overall. There is still a slight surplus. But if you continue to produce, you will only lose money.

Immediately after the launch of the super VCD, and the price of the ordinary VCD was reduced again. In addition, Fengyupai, AIWA, Philips and other channels have joined forces to make their product retail outlets more numerous, once again suppressing the VCD sales of other brands.

Those large companies, which continue to insist on production, also unite their sales channels in order to increase sales.

In the beginning, they did see an increase in sales. I thought the crisis was over, but they didn't expect that Fengyupai, AIWA, and Philips would invest such a high amount of money in advertising, which still made them unable to play?

Can you still make money by investing such a high amount of advertising money? How much is the profit of an ordinary VCD, even if the profit of a super VCD is very high, but the profit is only more than two hundred dollars, right? 10,000 units, which is only more than 2 million US dollars.

For such a large-scale advertisement, the annual cost is at least more than 10 million US dollars. How many units can you sell in a year? Are the bosses of these companies crazy, will they settle accounts!

But they soon discovered that it didn't seem to be the bosses who were crazy, but their products. It can really make money.

Not to mention ordinary VCDs, super VCDs alone can sell more than half a million units a year after advertising on this scale, and there are only four brands to compete, even if it is average. Each company can sell at least 100,000 super VCDs this year, so the profit is more than 20 million US dollars, which can fully recover the investment in advertising costs, and there is some surplus.

The important thing is that these brands that produce ordinary VCDs, under the encirclement and suppression of super VCDs, wind and rain brands, and AIWA brand ordinary VCDs, sales have also been declining, and the market has to be completely caught.

According to their calculations, VCD's sales this year can definitely exceed one million, of which they share half of it, and the other half is divided by Fengyu Electronics and AIWA, and this part of the profit alone is not a small amount.

The most hateful thing is that the market was started by them, but others picked peaches!

Of course, they don't know at all that the future sales of VCD will be an astronomical amount, and even in some developed countries, there is an average of one VCD for every two families, and commercial use is also not a small number, with a total sales volume of more than 100 million units.

When the DVD is launched, the combined sales of the two products can exceed one billion units!

However, in the previous life, this kind of outbreak period was around 97 years, and it reached its peak in 99 years. But now that everything is in advance, Feng Yu estimates that next year will be the outbreak period, and the peak period will come earlier.

Fengyu Electronics also has more funds, which can develop faster and better burning optical drives, and earn high profits in this part.

In short, these companies were led by Feng Yu by the nose and opened up the market for Feng Yu, and most of the money earned fell into Feng Yu's pocket. Now they are even more cornered, if this continues, they can all foresee that they will not have any profit to make, and even lose money.

At this time, some companies can't stand it, in the final analysis, they have no grudge against Fengyu Electronics, two large companies want to occupy the market, the best way is not to compete, suppress each other, but should be cooperation, monopolize the market, just like Fengyu Electronics and Philips.

But because they chose to support the other side on the DVD standard, they couldn't cooperate. But now some companies have decided to turn around and switch to support the Wind/Rain-Philips standard promoted by Fengyu Electronics in exchange for more favorable terms, so that they can also get a piece of the VCD and future DVD market.

NEC is the first to contact Fengyu Electronics, of course, it is also related to the fact that NEC's relationship with Sony and Dongzhi is not particularly good.

But Feng Yu didn't meet the Huaxia representative of NEC, just a Huaxia representative, just want to see him? Even if the president doesn't come, it should be the vice president, right?

After Feng Yu rejected the representative of NEC, immediately some representatives of some companies contacted Jiang Wanmeng, wanting to meet with the real boss of Fengyu Electronics to discuss some things.

Originally, they were all in contact with Jiang Wanmeng, thinking that Jiang Wanmeng would be able to call the shots. But Jiang Wanmeng told them that although he was the shareholder and general manager of Fengyu Electronics, he also had a controlling major shareholder, and that was the one who made the final decision.

As a result, there were constantly people who wanted to meet Feng Yu, and the status of the people sent to the company was getting higher and higher, and the scale of the company was getting bigger and bigger.

All of them had the same idea, to take the lead in supporting the Wind/Rain-Philips standard on the DVD industry standard, in exchange for a reduction in patent fees, so that they could once again make a profit on VCD players.

Industry standards, to put it bluntly, can support whichever one, anyway, the original standards were not formulated by them. In the business field, there are no eternal friends, only eternal interests!

When the vice president of Songxia came in person, Feng Yu finally came forward to give Sony a heavier blow! (To be continued.) )

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