Philips did not hire any celebrities to endorse their products. They are also interested in a world-class singer or superstar. But there is no way to negotiate. Philips is interested in Michael Jackson, and Michael Jackson is under Sony Music. How can they let him endorse Philips' products?!
In the end, Philips decided to go with the technology route. Just like Wind and rain, they will showcase their advanced products and technologies.
Philips had also invested a lot in this area. Their advertisements are everywhere, especially in Europe.
Super VCD players are heavily advertised, and their sales are increasing. But the normal VCD players' prices had dropped, and the sales of other brands are dropping faster.
Now, even some of the bigger companies can't take it anymore. Other than Sony, Toshiba, Hewlett-Packard, Pioneer, etc., the rest of the brands decided to talk to Wind & Rain Electronics.
… …
"General Manager Feng, NEC's Hua Xia's representative is calling. She wants to talk to you about the DVD industry standards." Jiang Wanmeng reported.
Feng Yu raised his brows. They are finally here?
His methods were all interlinked, layer upon layer of oppression, forcing the giants of the consumer electronics industry to submit.
He started to grant them the rights to the VCD patents and let them produce VCD players. When those companies started to lower their prices, Feng Yu did not lower the prices of his own brands and gave them a portion of the market share.
Those companies saw the market is getting better and will increase their production. At the same time, they increase their marketing to get a bigger market share and more profits.
But at this time, Feng Yu lowered the prices of the normal VCD players and gave them a huge blow. But the blow is not severe, and those companies can still make some profits.
Since there are profits, and their production had increased, they will not admit defeat easily. To those big companies, it will be detrimental to their brand if a product is taken off the shelves after a few months.
So, some smaller companies were forced to stop production after clearing the remaining stocks. Those companies only produced 10,000 units according to the minimum authorization contract. At first, they were making profits. But after some losses, they still have some profits. But if they continue to produce, they will lose money.
After the introduction of the Super VCD player, the price of the normal VCD players dropped again. Also, Wind and rain brand, Aiwa, Philips, etc., had joined forces with Wind and rain, Aiwa, Philips, etc., to increase their retail outlets. Once again, they had suppressed the sales of other VCD players.
Those big companies continued to insist on production, and at the same time, they also united their sales channels to increase sales.
In the beginning, their sales had increased, and they thought the crisis was over. But they did not expect Wind and Rain, AIWA, and Philips to spend so much money on advertising. How can they not win?
Can you still make money by investing so much in advertising? How much is the profit from a normal VCD player? Even if the profit from a Super VCD player is high, it should only be around 200 USD. Ten thousand units would only cost two million USD.
Such a large-scale advertisement will cost at least 10 million USD a year. How many TVs can you sell in a year? Are the bosses of these companies crazy? Do they even know how to calculate?
But these companies soon realized that it was not those bosses who were crazy. It was their products that could really make money.
Just the Super VCD player alone, after this scale of advertising, the annual sales of this Super VCD player will exceed 500,000 units. There were only 4 brands competing, and on average, each brand will sell at least 100,000 units of Super VCD players. The profits will be more than 20 million USD. This was more than enough to cover the advertising costs and still have some profits.
Most importantly, these normal VCD players were being suppressed by the Super VCD players, Wind and rain, and Aiwa brands. Their sales were dropping, and they had to give up their market share.
Based on their calculations, this year's VCD player sales will exceed 1 million. They will get half of the profits, and the other half will be split between Wind & Rain Electronics and Aiwa. Just this portion of the profits will not be a small amount.
The most hateful thing was they were the ones who set up the market, but someone else had stolen the fruits of their labor!
Of course, they did not know that the sales of VCD players in the future would reach an astronomical figure. In some developed countries, every two households would own a VCD player. The number of commercial VCD players was also not a small number. The total sales of VCD players could exceed 100 million units.
When the DVD players entered the market, the combined sales of these two products will exceed 1 billion units!
But in Feng Yu's previous life, this VCD player will reach its peak around 1997. But now, this peak was brought forward. Feng Yu estimated that next year will be the peak of this VCD player.
Wind and Rain Electronics will have more funds and can develop better optical drive faster. This will increase the profits of the optical drive.
Anyway, these companies were led by the nose by Feng Yu and helped Feng Yu expand the market. Most of the profits were still in Feng Yu's pocket. Now, they were forced into a dead end. If this continued, they could foresee that they would not be able to make any profits and might even lose money.
At this time, some companies could no longer stand it. These companies did not have any grudges with Wind & Rain Electronics. If these two companies want to occupy the market, the best way is not to compete or suppress each other. It should be cooperation to monopolize the market, just like Wind & Rain Electronics and Philips.
But these companies had chosen to support the other side on the DVD standards. That's why they could not cooperate. But now, some companies decided to turn around and support Wind & Rain Electronics's Wind and Rain -Philips standards in exchange for better terms. This way, they can get a share of the VCD and DVD market.
NEC was the first company to contact Wind & Rain Electronics. Of course, this was also because NEC was not on good terms with Sony and Toshiba.
But Feng Yu did not meet with Hua Xia's representative from NEC. A mere Hua Xia wants to meet him? Even if the President did not come, it should be the Deputy President.
After Feng Yu rejected NEC's representative, some other companies' representatives contacted Jiang Wanmeng. They wanted to meet the real boss of Wind & Rain Electronics to discuss some matters.
At first, they had contacted Jiang Wanmeng and thought Jiang Wanmeng could make the decision. But Jiang Wanmeng told them that although he was the shareholder and General Manager of Wind & Rain Electronics, Wind & Rain Electronics still had a controlling shareholder. That shareholder was the one who could make the final decision.
So, more and more people wanted to meet with Feng Yu, and the positions of the representatives in the company were getting higher. The company's scale was also getting bigger.
All of them had the same idea. They wanted to be the first to support Wind and Rain -Philips standards in the DVD industry. In exchange for lower patent fees, they could make profits from the VCD players.
Industry standards. It was fine to support any company. Anyway, the original standards were not set by them. In the business world, there are no eternal friends. There are only eternal profits!
When Panasonic's Vice President arrived, Feng Yu finally showed up. He wants to give Sony and the rest a heavy blow!
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