Lenovo Group suddenly started to expand their influence in the Chinese market, and not only overseas electronics and home appliances manufacturers were affected. Even some Hua Xia companies' market share dropped.
But they could not do anything about it. In terms of branding, technologies, and funds, the rest of the domestic manufacturers were no match for them. The overseas manufacturers were even worse. Their brands were not well-known in the Hua Xia market, and they did not have good distribution channels. They could only watch as their market share was being squeezed.
Actually, it was not that their technologies were not good enough. In fact, many of these overseas manufacturers had more patents than Lenovo Group. It was just that their direction of development had deviated.
For example, Lenovo Group, Wind & Rain Electronics, etc., had been leading the way for the overseas manufacturers. These were the trends that Lenovo Group, Wind & Rain Electronics, etc. were trying to catch up with.
Furthermore, Lenovo Group, Wind & Rain Electronics, etc. had been improving their technologies, and they had invested more in these areas. The higher the profits, the higher the investments. With more R&D personnel, these companies had maintained their lead.
Someone once said that most of the advanced technologies in the world could be developed by other companies. But some companies were too slow in developing their technologies due to luck, and others succeeded before them. Some companies had misjudged the market and went in the wrong direction.
There were many reasons for this, but the first company to master the technology and promote it will make the most profits. Luckily, Lenovo Group, Wind & Rain Electronics, etc. had Feng Yu to guide them in the right direction. He told them which technologies to focus on and also planned the application of these technologies.
As for the Chinese manufacturers, it was not because of luck. It was because they had chosen the wrong direction. They did not even have a direction.
Lowering the production cost, marketing cost, and using low prices to grab the market share was the stupidest method.
Lenovo Group could get 50% profits from selling a tablet PC, but those Chinese manufacturers could not even get 10% profits. They had made a new product with low profits like the traditional PC.
Why is technology the most productive force? It is because companies with high technology can make the most profits. This was a high-tech electronic product, and those manufacturers in China were using cheap labor as a means to compete. Feng Yu was speechless.
Some of the companies that are competing with Feng Yu in the same industry are smarter. For example, the automobile industry.
The automobile industry is the same as the electronics industry. Both are supported by the government and invested more funds.
Of course, the leaders of these automobile manufacturers are smarter than the leaders of the electronics companies. They know the gap between Hua Xia and overseas manufacturers and Songjiang Motors is the reason why they can take the initiative in joint ventures.
In the beginning, many joint ventures wanted 50% of the shares. But none of them had more than one-third of the shares, and they had to invest more funds and technologies.
When China opened up joint ventures, dozens of overseas automobile manufacturers came to China to form joint ventures with them. Now, less than half of the overseas automobile manufacturers are left.
Some of these joint ventures were bought back by Hua Xia, and the rest were acquired by overseas manufacturers. In recent years, other international automobile manufacturers have also undergone significant changes.
But all the automobile manufacturers knew Hua Xia is the fastest growing market in the world.
Hua Xia's economy is growing fast, and the people's income is increasing rapidly. Demand for products that can improve people's quality of life is increasing rapidly.
Hua Xia has a large population and high population density. A large number of people from the countryside had migrated to the cities, and Hua Xia people like to buy expensive items.
Buying a house, buying a car, and buying gold ornaments were the three main spending directions for the Chinese when they became rich.
Clothing, food, housing, and transportation. Gold ornaments were considered clothing decorations, cars were considered transportation, and houses were naturally meant for living. Eating was a long-standing culture in China, and it had never stopped. It could be seen from the rise in the price of liquor in China in recent years.
Most of the other automobile manufacturers in Hua Xia are controlled by the state. These automobile manufacturers had thought of competing with Songjiang Motors in the past, but they realized they are no match for them.
When their sales exceeded 100,000 units in China, Songjiang Motors' sales had exceeded 500,000 units. Most of the cars on the streets are Songjiang Motors. When Songjiang Motors' production and sales doubled, Songjiang Motors had exported their cars overseas.
When they started to export overseas, Songjiang Motors had already set up a joint venture factory in Russia. Their technologies are also better than them.
After that, those automobile manufacturers learned from their mistakes. With the guidance from the higher-ups, they managed their own brands well and got rid of the restrictions of the joint venture factories.
By raising the price level, differentiating the appearance, thinking about what consumers needed more, and making targeted product designs, their sales and profits had indeed increased.
At this time, Songjiang Motors had started to focus on the overseas market. They had acquired their own brands, research centers, and sales channels overseas, and had become the leader in some markets.
For example, after Horton took over the Australian market, they made some adjustments. With the sales of Little Elf and Oriental Deer in Australia, they are expected to increase their market share in Australia this year.
Now, the major automobile manufacturers in Hua Xia have their own directions. Shanghai Motors, Guangzhou Motors, Capital Motors, Xianyang Motors, Changchun First Automobile, etc.
Changchun First Automobile is the first to change, and it is successful because of changes. In some areas, Changchun First Automobile is doing better than Bing City Machinery Manufacturing Group. For example, they are developing their spare parts.
Changchun First Automobile realized they are too close to Bing City Machinery Manufacturing Group, and their development is restricted. Therefore, they adjusted their development direction. In addition to revitalizing the oldest Red Flag brand, they invested the most in the R&D and manufacturing of spare parts, which was indeed world-class.
In some areas, Changchun First Automobile is ahead of Songjiang Motors and can even compete with Japan, Europe, and the US. Changchun First Automobile's target is to lead the world in this area.
Although the profits from their spare parts are lower, they are the largest automobile manufacturer in Hua Xia, and the rest of the automobile manufacturers need to purchase their spare parts from them. Their overall profits are higher than Shanghai Motors.
That's why Feng Yu told the companies to find the right positioning, focus on R&D, and think about the target consumer group. This way, they will be able to develop well.
Hua Xia does not lack smart people. If not, the country will not become better and develop faster.
After Feng Yu made some changes to these industries, Zhang Ruiqiang called Feng Yu and asked him to meet him. He has something to discuss with Feng Yu.
Feng Yu sighed. Is this the attitude of begging someone? But Zhang Ruiqiang is willing to go!
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