Chapter 206: Cheap is the last word
At the end of March 1983, 10,000 VCDs were put into operation in Hong Kong, but they quickly ran out of stock. Pen @ fun @ pavilion wWw. ļ½ļ½ļ½Uļ½Eć ļ½ļ½ļ½ļ½
The main reason why it sells so well is that it's cheap!
Cheapness is the last word, and this is a golden word in any era.
Later, China's white goods gradually replaced Japanese home appliance brands in the global market, not because they surpassed Japanese brands in terms of quality, but because they were cheap.
In terms of air conditioners with similar performance, Japan's 3 horsepower large cabinet air conditioners sell for 20,000 or 30,000 yuan, and China's products of the same specification sell for 5,000 yuan.
When the market is occupied, there will be more funds to upgrade the technology, and then the technology and quality will naturally be surpassed in an all-round way.
Lin Qi is convinced that the easiest strategy to form a monopoly advantage is to first occupy the market and form a monopoly advantage!
Later, the international community became more and more anti-dumping, and once it protected its local industry, it was because the dumping tactics were too awesome. As long as your local industry is crushed, there is no substitute for the product, and after that, the price is not up to me?
The way VCD plays is low price, low price, low price!
Even in the original history, VCD was listed in 92~93 years, and it quickly eliminated video recorders in most of the Asian markets by relying on low prices. However, at that time, Chinese manufacturers were only clever and saw the opportunity to start. In fact, the core components of VCD cannot be produced independently, so at the beginning, the listing of VCD was as high as four or five thousand yuan. With the rapid growth of the market, many parts can find cheap domestic goods, the price has further plummeted, reduced to two or three thousand yuan, and even fell below one thousand in a few years!
The localization rate of Xinfei Electric's products is even better than that of the early 90s in history. Even for components such as laser heads, it takes only about a year to produce them in-house. It is precisely for this reason that the supply price of Philips' laser head has also dropped rapidly, and at present, a set of laser head construction is only 150 US dollars, which is 50% lower than a year ago!
On the one hand, because there is a huge demand for laser heads for CD and CD-ROM, after mass production, Philips is production cost is reduced. In addition, Philips knows that the new venture electronics company has the ability and will to produce laser heads independently, so it has to stabilize the position of suppliers through continuous price reductions.
Of course, the low price of VCD is compared with the video recorder, because there is no lower price of similar products on the market, so, each VCD to the sales channel at the same time, manufacturers can still earn a profit of 300 yuan per VCD!
The reason why VCD wants to make money is because the Pangu host burns too much money, and it can't make a new money-burning machine in the short term! Instead, it needs to make profits to make up for the deficit of the Pangu host......
Because, VCD products are out of stock when they are listed.
Major distribution outlets in Hong Kong quickly increase orders. Although Japan's video recorder and videotape industry alliance has a huge influence, its influence in Hong Kong against the new venture electronics is not enough.
After all, the new venture electronics company has more distribution outlets in Hong Kong, and the top shopping malls in Hong Kong have opened product counters for the new venture electronics company.
In Hong Kong's local market alone, the sales of new start-up electronics companies far exceed the sales of local video recorders.
In addition to the stores that only sell video recorders and video tapes, the Japanese video recorder industry alliance forces comprehensive dealers to choose one of the two, and the dealers are of course choosing the products of Xinchuang Electronics, rather than video recorders!
Less than 20,000 VCRs are sold annually in Hong Kong, and the start-up electronics company has far more handhelds, arcades, CDs, and consoles than VCRs. What's more, the software sold in addition to the hardware sales of the new start-up department definitely has a larger market share than the video tape!
This is the same as the original dispute between Panasonic and Sony's video recorder technology standards, Sony's technology is obviously more advanced, but in the end Panasonic won. Because, Panasonic used its market position at that time to force the industrial chain and distribution channels to choose one of the two, and in the end, with its commercial influence won the battle for standards. Since then, Sony has also become a vassal of Panasonic in the video recorder market.
Lin Qi values the VCD industry so much because it can take advantage of the video tape market. At present, the market size of the world's video tape industry is as high as 5 billion US dollars a year!
This market is much larger than the current game console market. Although, in the future, the game console market will surpass the video and video disc market.
Compared with those companies that produce film and television dramas, this kind of use of technical standards to rewrite the industry pattern and forcibly cut a piece of the giant's cake is what the strong do!
""Huo Yuanjia", "Chen Zhen", "Silkworm Transformation" and other TV series have been made into VCDs!" Huang Xizhao excitedly reported to Lin Qi and said, "Many viewers still have a good desire to buy these classic TV series! These TV series sell a few hundred sets at least, and at most sell two or three thousand sets! Now, the sales of these VCD discs every day can bring two or three hundred thousand yuan in income!"
VCD TV series sales are currently charged by episodes, a VCD disc is an episode, and an episode of TV series VCD costs 10 yuan. A TV series with more than 20 episodes costs more than 200 yuan.
As for the production cost of VCD, it is very low. The new start-up electronics company makes a video disc for outsiders, and it costs at least 5 yuan for a video. However, Xingchen TV is its own family after all, and it only charges 2 yuan for recording VCD discs. In fact, the price of a CD is only a few cents, and the price of a CD does not exceed 1 yuan to burn CDs and VCDs in large quantities. 2 yuan a piece can also ensure that the foundry can make a reasonable profit.
As for the cost of film and television production - these old TV series, the cost has long been recovered, and now they are made into VCDs and sold for 10 yuan per episode, and each copy sold is a pure profit, and it is impossible to lose money!
Even if it is a new work that is invested in production now, the production cost of each episode of the TV series is 50,000 yuan. Regardless of the revenue from TV broadcasts, only in terms of VCD sales business, it is estimated that only 60,000 VCDs need to be sold to definitely recover the cost.
And if it is a videotape, some cheap film and television videotapes on the market now are more than 100 yuan per box. Even though a box of videotapes can top two discs, it still costs more than 1,000 yuan to buy a full set of TV series.
It is precisely for this reason that the current video tapes all over the world are mainly rented, and the direct purchase of video tapes is a very luxurious behavior.
VCD discs, because of their low cost, have inspired many viewers to buy the idea of collecting DVDs directly.
Many TV series, the audience either because of feelings, or did not watch all on TV, or heard that the reputation is good but did not watch it, in this way, you can directly buy VCD discs and watch them in one go!