Feng Yu and Philips had different distribution channels. Both companies had their own distribution channels. In Hua Xia, Feng Yu had better distribution channels. But Philips had retail stores, and Wind and Rain did not.
In overseas, Feng Yu had the Fu Family and Aiwa's distribution channels. Aiwa also had a lot of retail stores. Philips also had a lot of partners and had their own retail stores.
So, Feng Yu and Thomas agreed to use each other's distribution channels to increase the sales of Super VCD players. But they had different opinions on the sales of normal VCD players.
Thomas had made it very clear that Philips did not have normal VCD players. If only Feng Yu and Thomas were selling, Philips would suffer losses.
What Thomas said was reasonable, but Feng Yu quickly thought of a simple solution. Philips still has other products. Why don't we exchange distribution channels for all our products?
Philips also had shavers, televisions, lights, and other products. As for the more professional medical equipment, it was not included in the list. Wind and Rain and Aiwa also have humidifiers, bladeless fans, pagers, etc. These products were also small in size and could be sold in Philips' retail stores.
So, both companies cooperated. Not only they shared their distribution channels, they even opened a counter for each other's retail stores. The advantage of doing this was to increase the sales coverage and make it easier to sell their products.
But there were also disadvantages. It was easy for people to misunderstand that both companies had merged, and these brands belonged to the same company. Feng Yu would be the one suffering losses.
After all, Philips was still ranked higher than Wind and Rain and Aiwa. People would only think that Philips had acquired Wind and Rain and not Wind and Rain.
But Feng Yu did not care. What he wanted now was the market. Wind & Rain Electronics's reputation would be affected, but Wind and Rain's brand value would not be affected. When the market was fully expanded, the consumers would naturally know that the two companies were only cooperating strategically.
In the past, Aiwa was controlled by Sony, but the brand was still retained. Now, Aiwa's Walkman had overtaken Sony.
Both sides were very satisfied with this cooperation. The two companies had already cooperated on many aspects of technology, so it was normal for them to help each other through channels.
A week later, the retail outlets of both parties had increased by more than 50%.
But the retail price of the Super VCD player was still very expensive, and not many people bought it. Fortunately, the profits were high, and Feng Yu was quite satisfied.
What made Feng Yu satisfied was that the sales of the ordinary VCD players were getting better. The price was cheap, the quality did not decline, and there were many promotions. Furthermore, there were other brands to compare with. This allowed the ordinary VCD players to bring in a lot of profits for Feng Yu.
At this time, the other brands also realized that if they were to fight Wind and Rain alone, none of them could win against Wind and Rain. After all, Wind and Rain owns the patents of Wind and Rain. Wind and Rain was the first to develop and produce VCD players.
Now, Philips's profits had been greatly reduced. Philips, Wind and rain, and Aiwa had decided to work together to share their distribution channels.
Those world-class consumer electronics brands all have huge sales channels. Their distributors and retail stores had a lot of distribution channels. Once they worked together, they could sell their products to any city they want.
They had the upper hand in terms of distribution channels and retail stores. They don't believe that they could not increase their sales.
Most importantly, they had no choice but to do this. Many of their products were still in the warehouse. If they did not deal with them as soon as possible, what would they do if the products were replaced after a period of time?
Now, they only had one Super VCD player, but its functions were much more advanced. What if the second generation of the Super VCD player was introduced next year? Or when the DVD technology was mature, they might introduce DVD players.
At that time, their products might not be able to sell even if they lowered their prices. They might as well work together now. Although they could not make any profits from selling their products now, they will not suffer any losses.
If the VCD players were to lower their prices again, none of them would be able to hold on. They would be tricked by Wind & Rain Electronics!
A small company like Wind & Rain Electronics had tricked so many world-class consumer electronics giants. They would be embarrassed if they knew about this!
Now, they were working together to fight back. At the same time, they were working together on the DVD burning standards. They wanted to teach Wind & Rain Electronics and Philips a lesson!
The burning standards were set by them, and the DVD player must be read according to their standards. This way, they will be ahead of the rest of the world in terms of DVD player development.
… …
"General Manager Feng, we are in trouble. Those big companies had joined forces and used their distribution channels. Their distribution channels are much better than us!" Jiang Wanmeng saw Feng Yu and said anxiously.
Feng Yu laughed and waved his hand. "Don't panic. It's just that they have more retail outlets. It's not a big deal. They are using our patented technologies, and they still need to pay us. Furthermore, all of you still have not seen the difference between Super VCD and normal VCD players. CCTV will be airing our new commercial in a few days, and the overseas commercials will be airing soon. That will be the best time to give them a fatal blow. "
Jiang Wanmeng frowned. He felt that Feng Yu had placed too much trust in advertisements. Those big companies were all world-class companies. Their assets were more than 100 times more than Wind & Rain Electronics, and their brands were more influential.
Just relying on the loyal fans of those brands, their sales would be high. Furthermore, they were working together to promote their products to each other. Wind & Rain Electronics was only working with Philips and Aiwa. Their scale was too small, and they were not a match for these big companies.
"General Manager Feng, although they were selling VCD players and had helped us make a lot of money, if those VCD players were sold by our brands, we will make more money. Also, our factories had been expanding, and our production had been increasing. If they took away the market share, our products will be overstocked! "Jiang Wanmeng said anxiously.
"How much is the cost of our normal VCD players?" Feng Yu asked calmly.
"Less than 700 RMB, and we can lower it further. In the end, the cost should be around 500 RMB per unit." Jiang Wanmeng replied.
Feng Yu frowned. He was still not satisfied. He remembered that in his previous life, around the year 2000, the VCD players' prices had dropped to around 300 RMB per unit. That means the cost of a VCD player should be around 300 RMB. Now, Wind & Rain Electronics had the world's most professional VCD engineers, and they still could not control the cost?
"We can only lower it to 500 RMB per unit? Can't it go any lower? "
"We can't lower it any lower. Many of the components' prices cannot be lowered, and our workers' cost is not low."
Feng Yu suddenly realized that those small factories in his previous life must have squeezed out the workers' cost, and the components must be cheap. This was why they could lower the price of their products to around 300 RMB. At that time, VCD players were almost obsolete.
"Ok. I know. Those brands are just clowns. You don't need to worry about them. Look at these advertisements, and you will know why I am so confident. "
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