Hua Xia's mobile phones had entered a new era. Other than Aiwa and Wind & Rain, there were many other domestic brands.
Most of the Chinese mobile phone manufacturers had bought the authorization from Wind & Rain Electronics and Aiwa Electronics. But these manufacturers were still at the bottom of the pyramid, and their phones were only selling about 1,000 RMB phones.
They were relying on cheaper labor and marketing fees to lower their production costs. Their profits were not high.
The phones produced by these manufacturers were what the people in Feng Yu's previous life called knockoff phones. They imitated the appearance and functions of other brands of mobile phones, replaced them with cheaper materials, used even cheaper accessories, and sold them in small mobile phone stores in rural areas.
Those who are slightly more capable, like those who had been involved in the home appliances industry, will advertise on the rural villages' TV channels. They will advertise on these TV channels to make people think that this mobile phone is from a big brand. This mobile phone's functions are no different from Aiwa mobile phones and might even be better.
Some of them used flyers or even salesmen to promote their phones. This was because they could not afford to spend so much on advertising. Their brand value was not high.
Most of the Chinese mobile phone manufacturers used to be pagers. The pagers had died a few years ago, and even the pagers had been shut down. Now, all the pagers had disappeared.
Many of those former mobile phone manufacturers had gone bankrupt. Those that could be sold were sold, and those that could not be sold were scrapped. Many of these factories were acquired by other electronics manufacturers. Wind & Rain Electronics also took the opportunity to acquire some of these factories.
But different from other manufacturers, Wind & Rain Electronics had chosen to acquire factories that were located at the same location as their original factories. This way, it would be easier for them to relocate and retain their original workers.
As for those factories that were too far away, unless there were a lot of factories there, they would not acquire those factories even if they were doing well.
Mass production could reduce costs to the greatest extent. Everyone was very clear on this point. Also, it was troublesome to merge and relocate factories. Also, when the factories were being sold, they were not allowed to fire their workers. This increased the cost.
Some factories were doing well and did not have any idle workers. It was not a problem to acquire those factories. But some factories had a lot of idle workers. They were all relatives and friends. Do they still want to work in Wind and Rain Electronics factories?
Dream on!
He would rather raise the purchase price than have these people. A smelly fish could really ruin a pot of good soup!
But there are also some companies like Foxconn who are not picky. They took this opportunity to expand their business in China.
Don't they know that these bloated personnel will bring a great burden to them? Of course they knew, but they had other ways.
They were even more forceful. They bought over your factory and told all the employees in the factory to move to another city. If you don't go, then sorry, we won't be breaching the contract. You will be considered to have resigned.
The leader is looking for me? If it doesn't work, you can either come with us and accept our retraining. Of course, those who did not pass the training were not welcome either. Otherwise, you can resign and have nothing to do with us!
Usually, when they were negotiating, they would drag it out for a period of time until the other competitors gave up. This was because on the surface, they offered the best conditions. Of course, the leaders would be willing to negotiate with them.
But when it comes to the details, they realized there were a lot of conditions. Foxconn's conditions were not good.
The most ruthless thing about Foxconn was that all the workers' salaries were set according to the local law. Those who did not meet the minimum standards will not get their full salaries.
What if you want to earn more money? Overtime? If you want to work overtime, we'll pay you the overtime pay according to the law. It'll be at least double.
That's why many of Foxconn's employees were like workaholics. They work hard just to earn more money.
But it was undeniable that Foxconn's workers were very efficient. It was just that their management model treated people as machines.
There were still many poor people in Hua Xia, especially in the western mountainous areas. The land there was barren, and the transportation was poor. It was hard to develop businesses there, and agriculture was not as developed as the northeast.
The education level of the people here was not high. If it wasn't for the country's compulsory compulsory education, many children would not even go to school. They felt that knowing a few words and simple arithmetic was enough. They could learn it at home.
What do they do with their children? Farming. Population is the labor force and productivity. That's why many families in Hua Xia like to have more children.
In many areas, the legal age for marriage was not even reached, and many of them had children in their thirties.
In a place like this, if someone came back and told them that they could earn more than two thousand yuan a month by working in a factory outside, everyone's eyes would be filled with envy. They would especially want to earn a lot of money and live in the city.
Most of Foxconn's employees were from these places. The management asked them to bring their employees from their hometown over. As long as they passed the training, they can start working.
If the employees were disabled, they would be happier. According to the law, a company can exempt a lot of taxes if they hired a certain number of disabled people.
There was a balance point, and even if the disabled person was just an employee, the factory will still make money.
Many companies do not have their own mobile phone production factories, and they look for these OEMs. For example, Foxconn. They were not only the largest OEMs in China, but they were also the world's standard OEMs.
They can guarantee the quality and quantity of the same products, and their charges were the lowest. Slowly, the number of their OEMs increased, and they can win by quantity.
That's why Foxconn's OEMs had produced dozens of brands. Dozens of brands, and the number of models of each brand was even higher.
But with so many models, the production of each brand will not be high. Without quantity, how can Foxconn make money?
This was Foxconn's greatest advantage. They had convinced other mobile phone manufacturers to use the same exterior design, and after they produced their phones, they can just use the brand.
This way, everyone's cost will be low, and it will depend on their sales ability to sell their phones better.
The other electronics manufacturers saw that even if they do not have any technologies, they can still "produce" their own brand of mobile phones. Why not try?
Now, the mobile phone sales are increasing, and this is a good time. What if they make money?
Just like this, the Chinese market was full of knockoff phones. Feng Yu was happy to see this happen.
Why?
… …
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