"Brother Fu, how is it going?" Feng Yu had returned to the US for a week and had been staying in Seattle. When he is in the mood, he visited Microsoft and even went to watch two NBA games. The way Rainman Kemp played was very entertaining!
But Feng Yu was fine. He had been waiting for Fu Guangzheng's news. Wind and Rain phones had entered the US market. Of course, they had hired Fu Guangzheng's trading company.
Mobile phones can be considered an electronic product, but it is different from VCD players. This is because mobile phones are targeted at individuals and not families.
The Fu Family's sales channels in the US are only a few distributors. Some of them sell telecommunication products, but none of them are powerful enough.
Also, the US is Motorola's base. At its peak in the US, 9 out of 10 mobile phones are made by Motorola. Even now, with European and Japanese brands entering the US market, Motorola is still the number one brand in the US market. They are unbeatable in the US compared to other markets.
The distributors who have the ability to sell mobile phones all gave them harsh conditions. It's not that they do not want to give face to the Fu Family. After all, they had been working with them for years.
But they felt that there are so many mobile phone brands in the US, and Motorola is above them. Wind and Rain phones do not have any brand awareness and will not sell well.
They admit that Wind and Rain phones are beautiful, but they do not have powerful functions. Also, Wind and Rain phones are imported products, and after taxes, the prices are at a disadvantage.
Wind and Rain brand is still far behind Motorola in the mobile phone industry. The functions are about the same, and the prices are lower. This means they will not sell well.
Since this is a product that will not sell well, and they need to spend the same amount of effort to distribute it, their conditions must be higher.
Fu Guangzheng, who was sitting opposite Feng Yu, shook his head and sighed. "No. We cannot meet any of their conditions unless we sell our phones at a loss. But what's the use? If we anger Motorola, they might start a price war, and we will not be able to sell a single phone! "
Motorola is the world's leader in the mobile phone industry, and it will not be difficult for them to attack any new mobile phone brand. Nokia, the king of Europe, is not as good as Motorola in the US.
This was different from Feng Yu sniping Motorola in Hua Xia. In the Hua Xia mobile market, Motorola is also the leader. Feng Yu, on the other hand, had relied on his local advantage, his connections, and a lower price to snatch the market. In America, Wind and rain mobile phones do not have these advantages. These aspects are the disadvantages of Wind and rain mobile phones!
"What do they think of our shortcomings?" Feng Yu asked curiously.
"Too many products, and the brand awareness is not high. The supply is not high, there is not enough advertising, and the pricing is not competitive, etc." Fu Guangzheng is also frustrated. He had tried Wind and Rain mobile phones, and the quality is good. Moreover, it was small in size, beautiful in appearance, and the color was also very good. However, the shortcomings that those dealers had mentioned were all indisputable facts.
It was not easy to market a new product, let alone a new product in a new market. Wind and rain's brand awareness was not much help.
If Wind and rain were to produce household appliances, then the Wind and rain brand would be a form of marketing. But if they were to produce mobile phones, not many people will be willing to buy them. Without advertising, the mobile phones will not sell well.
But the Wind and rain mobile phone production is not high, and China still needs to supply a batch. The US supply is also low. If they were to advertise for these mobile phones, it might help the sales, but it will be a loss.
Feng Yu lowered his head and did not say a word. He does not know what to do.
Fu Guangzheng said. "If only we have a factory in the US. We just need to modify the exterior, and we can produce a few different models of mobile phones. The prices will also be lowered, and we can advertise on a large scale to increase sales. At that time, those dealers will not set such harsh conditions, and they might even contact us. "
Feng Yu was tempted. Set up a factory in the US?
Feng Yu had thought about this before, but he was hesitant. The labor costs in the US were much higher than China and Russia.
Also, he had discussed with Kirilenko. Setting up four factories in Eastern Europe to produce electronic products will cost a lot. The mobile phone market is not booming now, and it will be around the year 2000. After that, mobile phone sales will increase rapidly for the next 10 years, and it will be the era of smartphones.
Is it too early to set up a factory now?
Fu Guangzheng was curious when he saw Feng Yu hesitating. Setting up a factory in the US or Canada is the most cost-effective option. Although the labor costs in the US are higher, it can lower taxes and transportation costs. The US market is so big, and it is not enough to supply all the imports from Hua Xia.
Hua Xia's factories can cover Asia and the most populated areas. It should be more cost-effective to set up factories in the US and Europe.
Fu Guangzheng does not believe that Feng Yu lacks funds. Just Feng Yu's Microsoft shares are worth a lot. Feng Yu does not need to sell his shares, and he can get a loan.
He was still thinking that if Feng Yu were to acquire or build a new factory in the US, he would be a shareholder. Anyway, he believed that he would be able to make money.
"Brother Fu, do you have any connections in Brazil?" Feng Yu asked.
If Fu Guangzheng wants to set up a factory in China, it will be more worthwhile. The labor costs will be cheaper, and it is one of the main reasons for the cost.
Fu Guangzheng shook his head. "You want to set up a factory in Brazil? I don't recommend this. The labor costs in Brazil are cheap, but the workers in Brazil are not efficient. That country's security is poor, and without the help of local influential people, you will be at a disadvantage. Don't expect any diplomatic measures. Brazil and Hua Xia are not on good terms. "
From the looks of it, if he had to choose a place with good law and order, he could only choose the United States. Wait a minute. It can be in Canada. Don't forget that Superman Li's family is influential in Canada.
"Brother Fu, wait a minute. I will call Brother Kai to ask him. He should have some connections in Canada."
Feng Yu decided to set up a factory in North America. At most, he will use the factory's shares as collateral for loans. If it is only one or two factories, the financial impact will not be significant. Most importantly, Wind and Rain mobile phones can enter the US market earlier.
In Hua Xia, Feng Yu is not afraid of any big companies. But it is Hua Xia, and Feng Yu is not the type to be arrogant. Even in the US, he must be the boss!
Fu Guangzheng was disappointed. Feng Yu is going to cooperate with Li Zekai, and he has nothing to do with this.
… …
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
