In the afternoon, Feng Yu was browsing the forums in his office. Tomorrow is New Year's Day, and many employees from other cities, including some of the higher management, had started their holidays. That's why Feng Yu, as a "local," stayed behind. Anyway, he had nothing to do.
"Boss, there are some people downstairs who want to meet you. They are the bosses of domestic DVD manufacturers, and they are from Guangdong." Wu Chih-gang reported.
Wu Chih-gang was the Deputy General Manager of Taihua Holdings in Beijing. He was one of the first people to follow Feng Yu, and many people said that he had inherited Feng Yu's temperament. This was because his temperament was very similar to Feng Yu's.
When he was happy, he would cooperate with Feng Yu. If he was not happy, he would not even accept money from Feng Yu!
If he was in other companies, he would be criticized for his temper even if he was in the middle management. But in Taihua Holdings, there was no such worry.
One of them was Wu Chih-gang. His memory was as good as General Manager Feng's. He could remember the people he met before, and he was very serious in his work. He was also fair to his employees, and he was the one who set the bonuses for his employees. Feng Yu had told him that he must give his employees a certain percentage of the profits every year.
"What do they want?"
"They want to talk to you. Since Wind & Rain Electronics and Aiwa Electronics had introduced HD DVD players, can you lower the licensing fees for the DVD players? I think they are desperate and want our help." Wu Chih-gang said.
In Guangdong, there were more than 50 DVD manufacturers. They were not only supplying China, but they were also exporting to Southeast Asia. Feng Yu did not give high licensing fees to the domestic manufacturers. That's why they used cheap labor, and their production cost was not high. Their prices were also competitive.
But with the rise of computers, more and more people choose to buy computers. Computers come with optical drives, and they can also watch movies. It's just that it's not as big as a TV screen. Now, the mainstream monitors are only 17 and 19 inches. The 14 inches had just started to be phased out, and the 21 inches had just become popular.
There were too many factories in Guangdong, and they were competing with each other. This caused labor costs to increase. Also, Sony had lowered their DVD prices, and Wind and Rain, Aiwa, and Philips had also lowered their prices. These manufacturers had lost their advantage in terms of price.
It was fine for a short period of time. But if this drags on, they will not be able to hold on. If this carries on, at least half of their factories will be shut down. Even if it was produced, it couldn't be sold. If it was sold, it would be sold at a loss. It could be said that the more it produced, the more losses it would make.
"Ask them to come up. No matter what, they had contributed to the promotion of the DVD. If there are any difficulties, we can lower the patent fees."
Actually, it was more cost-effective to let them go bankrupt and then buy over their factories. After merging and reforming them, they would be able to produce HDVD. But as they were all Chinese, Feng Yu did not do this. Of course, it also depends on the boss's character. If the boss was driving a luxury car, staying in a villa, and said that his factory was not making money and did not pay his workers, Feng Yu would not help him.
About 20 to 30 people entered the room. Feng Yu's office was not big enough, and he brought them to the meeting room.
Feng Yu picked up his teacup and took a sip of hot tea. He smiled at them. "I know all of you. I can remember some of your names, and some I can't. Why are you all here? Let's talk about what you want. "
Feng Yu put down his teacup, and these people looked at each other. No one wants to speak first.
"Fatty Huang, we had been working together for more than 10 years. Are you the leader of these people?"
Fatty Huang had worked with Tai Hua Trading when Feng Yu was selling electric fans. After that, he was involved in the sales of humidifiers, bladeless fans, motorcycles, cars, and other products. He was also involved in the sales of other products. Fatty Huang was also involved in the sales of other products. Needless to say, he controlled the markets of Guangdong, Hainan, and Yuexi. His net worth should be at least tens of millions, right?
Furthermore, he had set up a VCD and DVD factory. This was a profitable business, and the others might not be able to survive in this industry. But Fatty Huang will still be living comfortably.
Fatty Huang laughed. "General Manager Feng, I had only said that I wanted to ask you for help, and they insisted on following me. I am not looking for trouble. You must believe me."
Feng Yu rolled his eyes at Fatty Huang. If it weren't for this guy's honest business dealings, good reputation, and the fact that they had worked together for a long time, Feng Yu might not believe him.
"General Manager Feng, VCD players are not being produced overseas. Only our country is still producing VCD players. Can you lower the patent fees? We have no choice. We are not making money now. "
"There is no need to produce VCD players anymore. How about this? I will lower the DVD patent fees by half. Hmmm … I will also lower the Super VCD patent fees by half. Also, Wind and Rain and Aiwa brand Super VCD players will stop production tomorrow. You all can share this market."
Now, Super VCD and DVD players were compatible with VCD discs, but VCD players were not compatible. That's why there was no need to produce VCD players anymore. Feng Yu knew that they wanted to enter the village market. Then, they will sell the Super VCD players. They must not let the villagers buy the cheap VCD players. After buying the players, they will not be able to play most of the discs.
Fatty Huang and the rest were overjoyed. "General Manager Feng, you are too kind. We will also stop production of normal VCD players and only produce Super VCD and DVD players in the future. Oh, General Manager Feng, when can you give us the authorization for the HD DVD player technology? Also, what is the price of the disc recording technology? "
"We will only be able to give you the authorization next year. We will decide on the price after that. But I suggest you all think of ways to transform your brands. Your brands are not established yet, and you all will not be able to grow. "
Feng Yu shook his head. These people were running third-rate companies. They were selling their products based on the price, and they were not good at taking risks. If it weren't for Feng Yu lowering the patent fees, at least half of these companies would have to close down within a year!
The rest of them looked at each other. No one knows what to do. At least they can still make money now. If they continue to produce HD DVD players next year, they will be able to make money for at least 3 to 5 years.
After 3 to 5 years, they will also have a few million net worth. At that time, it will be too late for them to transform their brands.
Those people left, but Fatty Huang stayed behind.
"General Manager Feng, what do you mean by transforming our brands? Can you give us some pointers?"
"Your workers are not bad. You do not have any advantages in other aspects. Then, you should increase the advantages of your workers."
Increase the advantages of your workers? Fatty Huang blinked his eyes … he did not understand what Feng Yu said.
Feng Yu sighed. Seems like Fatty Huang's views were not up to date.
"OEM, do you understand?"
… …
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