"Brother Feng, why is the Super VCD player not introduced yet? I heard from Jiang Wanmeng that the research was successful, including the nine images, four voices, and countdown you mentioned. Why do we still have to wait? " Fu Guangzheng was getting anxious. Those overseas VCD players brands had started to enter the Hua Xia market. This had affected Wind & Rain Electronics's profits.
Fu Guangzheng wanted to introduce the Super VCD player now. Although the technologies were not mature, they could introduce a batch of products first. After a few months, they will introduce better products.
It was too uncomfortable to see money flowing into other people's pockets.
"Brother Fu, what's the hurry? Now, the market is still not booming. The traditional video cassette players are not completely destroyed, and the profits from Laserdisc are not low. Let's wait a while more. "Feng Yu calmly took a sip of his coffee and said calmly.
"Wait for the market to boom? The market is booming now. Not only in China, but there are also many overseas brands fighting for the market. Although we can collect patent fees, the patent fees are too little compared to our own profits. "
The patent fees for a VCD player was only 50 USD. But if they produced their own VCD players, the profits would be more than 300 USD! Even if there were more brands now, and the profits had dropped, the profits would still be more than 200 USD.
What was Feng Yu thinking? He did not want to earn more money and chose to earn less.
Feng Yu had decided to invest more in the technologies to develop the second generation of VCD players and cooperate with Philips to set the industry standards for the DVD players.
He knew that if a company could set the industry standards, then it means that this company was at the top of the industry.
But you cannot just set the industry standards. Now, there were many companies competing for the burning technology. It was fine if they succeeded, but what if they failed? Then they would have to follow the standards of others, and they would be at a disadvantage.
The standards of others would be more thorough, and their technologies would be lagging behind. How can they continue to make money in the future?
Fu Guangzheng wanted Wind and Rain VCD players to maintain their brand advantage and let Wind and Rain VCD players become the world's biggest VCD player manufacturer. Wind and Rain VCD players will lead the industry and make lots of money. But Feng Yu refused to listen.
Fu Guangzheng knew that he will be able to defeat the traditional VCR and Laserdisc. But what's the difference between a year earlier and a year later? These were the words that Feng Yu had said before. How could he forget them now?
"Brother Fu, you are too anxious. It won't be long before we step on those companies again. You have seen the performance of the Super VCD, but there are still many shortcomings. For example, it was too cumbersome, the cost could not be reduced, the heat dissipation was not good, and so on. These all needed to be solved, and they could be solved very quickly. Since we are going to introduce a new product, we will introduce a new product that is different from the rest. The other brands can only pick up our leftovers! "
"How can I be different? That was good enough. Didn't you say that the newer technology belongs to the DVD industry? What if the market is saturated by the time we introduce the new product? "Fu Guangzheng asked worryingly.
A family can only afford one VCD player. How many families will buy two? Although most countries' income was increasing, especially Hua Xia, China's economy was growing at an alarming rate. But VCD players were like TV. Many people who bought a VCD player might not want to replace it even after 10 years. As long as they can still watch it, they will continue to watch it.
By the time Wind and rain introduced the Super VCD player, the rest of the people will already have normal VCD players. Although the performance was better, it was only more convenient. Those families will not change to a new VCD player, right? Although the market was booming, it was no longer Wind & Rain Electronics and Aiwa splitting the market. There were many competitors.
Many of the VCD companies were the world's top brands in the consumer electronics industry. In many regions, they had a strong sense of identity among the consumers. Even if their products were not as good as those of other companies, many consumers were still willing to buy their products.
Those top consumer electronics companies all had their own territories marked out. Every brand had their own territory, and it was hard for others to snatch it from them. Just like Sony's Walkman. Even though Aiwa had forced it, it was still ranked number 2 in the world. This was because Sony still had a large number of loyal fans.
Furthermore, Sony was dragged down by Aiwa because they had allowed Aiwa to develop too fast. Now, Feng Yu's decision had increased the number of competitors. Wind and rain VCD players might not be the market leader, but their market share and sales had been declining. If this dragged on, the VCD brand that they had painstakingly built would be ruined.
"Brother Fu, before the other brands entered the market, how many VCD players were sold? The combined sales of Wind and Rain, Aiwa, and Aiwa were only a few hundred thousand units. It was not good enough. But now, with so many brands entering the market, we do not know how many units they had sold, but we know how many units they had produced. In less than a month, they had produced more than 500,000 units of VCD players. It was almost our total sales for the past two years. "
Fu Guangzheng frowned. He should be more worried now. Why was Feng Yu still smiling?
"Brother Fu, do you still remember when you were young, every household had a TV?" Feng Yu asked.
"Although Hong Kong was more developed than China, not every household had a TV when I was young. Even now, there are still many households without a TV. In any region, there will be poor people. "
"Brother Fu, that is not what I meant. I was trying to say that the TV was becoming more popular. I am not sure about Hong Kong, but I know more about China than you. Ten years ago, it was still the era of black and white TVs. At that time, many households did not have a TV, and a TV was only bought for weddings. Five years ago, black and white TVs had been phased out, and color TVs were the norm. Now, with the color TVs, everyone wants a clearer and bigger screen. This is the trend. "
"But did you notice that although the TV technology had been changing, the number of users had been increasing. It can be said that after every TV technology change, the number of users will increase. It was the same from black and white to color. It was the same from 10 inches to 20 inches. The initial market was created by those black and white TVs. But it was the color TVs that made the market prosper. In the end, it was those brands that could produce large screen color TVs that dominated the market! "
Fu Guangzheng seemed to understand what Feng Yu was trying to say: "You are saying that we used to be black and white TVs, and they are using normal color TVs? We are the ones that can produce better color TVs?"
Feng Yu nodded: "In the future, VCD players will be the same as TV. Every household will buy them. The market is still big, and there is no need to be anxious. We are still developing our technologies and at the same time, nurturing the market. They are helping us to open up this market! "
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