Thomson thought they have strong sales channels, and they will not be at a disadvantage when they announce they are leaving the alliance. Feng Yu and the rest might even look for them to form an alliance.
This way, they can offer higher terms and let Thomson get the most benefits. Thomson had not made any money these few years. He had made a lot of money.
But these profits were used as dividends and went into the shareholders' pockets.
Now, Thomson is not making any money, but the shareholders are not willing to use their money to help Thomson overcome this crisis. This is because they felt this is not worth it.
To put it bluntly, it was all about profit. The shareholders felt Thomson should be able to overcome this crisis even if they do not use their money.
While Thomson was waiting for Wind & Rain Electronics to approach him, more consumer electronics companies started to contact Thomson.
This made Thomson more confident that after leaving Wind and Rain Electronics' alliance, they will still be able to develop well and overcome the difficulties. That's why when Thomson is working with other companies in the same industry, Thomson had set many harsh conditions because many companies want to work with them.
But Wind & Rain Electronics did not turn around. Instead, Thomson noticed that Wind & Rain Electronics had many new partners in Europe.
This is not only because of Fu Guangzheng, but also because of Kirilenko. Of course, as an important ally of Wind & Rain Electronics, Philips had also contributed a lot.
Thomson still felt this is only a bluff. At least in North America, this region where consumer electronics are very popular, no one can compete with Thomson.
Thomson had found out that there are Japan, South Korea, Europe, etc. What about North America? Fine. Other than PC and mobile phones, North America's consumer electronics brands are not in the top tier.
To Thomson, Wind & Rain Electronics can only work with these small companies. Will the PC and mobile phone brands cooperate with Wind & Rain Electronics? Wind & Rain Electronics would not benefit from cooperating with small enterprises. Instead, it would be implicated by these small enterprises.
At this time, the economic situation in North America was not good. Too many companies had gone bankrupt, and these small companies were even less able to resist risks. Once they went bankrupt, they would not be able to pay for their sales, and Wind & Rain Electronics would also suffer huge losses.
However, they had neglected a new sales channel, which was very popular among young people. Young people are also the main buyers of consumer electronics.
Amazon, the world's largest online shopping mall, has a wide variety of products, and it has more products than traditional shopping malls. Currently, Amazon has 23 categories and more than a million products for sale online.
Also, Amazon had acquired many eCommerce companies in Europe, South America, Asia, etc., and their businesses are more diversified.
Also, at the end of last year, Amazon had started outsourcing logistics services to third-party sellers. This made them more popular, and many people enjoy shopping at home.
Yi Pao is also a super e-commerce company. Although it is not under Feng Yu's company, he is the major shareholder. It can also be a good sales channel.
There are many other e-commerce companies, and these are the sales channels that Feng Yu is targeting. This kind of sales channel was also a sales channel that was not very valued at the moment.
However, this kind of sales channel had a very big advantage, which was that it could save the important cost of store rent, so that the profit margin of the product would become greater.
This way, they can lower the retail prices to attract consumers.
Whether it was in the Americas, Europe, or Asia, e-commerce websites were flourishing. Although many people realized the huge potential of this industry, they also sadly found that they seemed to be unable to find a breakthrough.
This is because the pioneers in this industry had become the giants and had occupied most of the users. There is too little room for them to grow.
Unless they can find new selling points, they will not be able to grow. If not, the best outcome is to be acquired by these top e-commerce companies.
Amazon started off by selling books, and then they started to enter other industries. From books to toys, electronic products, software, clothing and jewelry, beauty products, home gardening, outdoor sports, office supplies and consumables, and even mechanical parts.
Most of these businesses are not set up by Amazon itself. Instead, they were set up by other e-commerce companies and acquired by Amazon.
With Amazon's huge customer base and good reputation, these businesses will expand. Amazon's revenue also increased rapidly under these circumstances.
Amazon was the one that started the consumer electronics industry, and Amazon's reputation in this area became better after selling their e-books.
Also, Feng Yu is sure that e-commerce will grow faster in the future. This can be seen from Amazon's revenue growth over the past few years.
In the past few years, Amazon's revenue was growing at more than 1 billion USD per year. But this year's growth in the first half of this year shows that Amazon's revenue will reach 15 billion USD!
But the net profit will only be around 1 billion USD.
First, Amazon's online retailing focuses on low prices, and their profits are much lower than supermarkets. Also, many of Amazon's investments are more advanced. For example, they had invested in warehouses a few years ago, and it will be enough for them to expand for the next decade.
At that time, the rest of the directors were against it, but Feng Yu got Ralph to support it. The benefits are obvious. Until now, Amazon has never had to worry about warehouses.
Amazon's net cash flow is high, but their warehouses are also high. This would also ensure that any customer who placed an order would not be unable to purchase the product because of a lack of inventory.
But Amazon's profits are so low is because Jeff Bezos had invested most of his profits into developing high-tech products.
For example, cloud services. Many software companies around the world are involved in cloud services, and Amazon is one of the top companies.
That's why Amazon's R&D costs are much higher than Google and Apple. This also allows Amazon to provide the best services to its customers, and they do not need to rely on other companies to get the data they want.
With Amazon and other e-commerce companies, Feng Yu does not care about Thomson's retail channels. Feng Yu and the rest can develop the retail channels themselves, look for business partners, and use e-commerce to cover the rest.
This year's economic situation is not good, and Feng Yu must increase the market share and sales of his consumer electronics brands!
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