Chapter 445: CG Store
Compared with the petty fights of the stalls on the street, the owners of their own stores are undoubtedly much stronger. In the past few years, the most shops on Apliu Street were selling electrical appliances, with televisions, radios, stereos, etc. Some shops sell small local and Taiwanese and Korean brands, some represent well-known Japanese brands, and some simply sell old second-hand goods.
In recent years, there have been a number of shops selling computers on Yaliao Street. None of these stores sell branded computers, but are individually assembled according to the user's needs.
Most of the company's computer foundry business is subcontracted to a few cooperative factories in Hong Kong. This quickly turned Hong Kong into one of the world's largest computer manufacturing bases and a battleground for all computer parts suppliers.
In Hong Kong, you can easily assemble all the components you need to assemble a machine with just a few phone calls. And also because Aikang company vigorously promotes its own ABC technical standard, so that all accessories manufacturers who accept this technical standard can achieve generalization of their respective products, making it easy for personal PC building.
Nearly a quarter of the personal computers sold in Hong Kong each year are not branded machines, but are hand-assembled by the owners of these small shops on Apliu Street.
In fact, this situation is not only in the corner of Hong Kong, with the implementation of the standardization of the computer industry, various DIY models (DoItYourself, do it yourself) around the world are rapidly emerging, and are becoming an important part of the entire computer industry that cannot be ignored.
Aikang seems to be suspected of shooting itself in the foot, because it is its efforts to implement its own ABC technical standards, making the computer industry the most open and transparent field of technical standards in the entire field of consumer electronic screens.
This has directly led to the lowering of the threshold for entering the entire industry, so that people with a little hands-on ability can go to the market to buy all the accessories. Assemble a personal computer by hand. In recent years, countless companies have begun to pour into the computer industry, making the competition in this field very fierce, and Aikang's own market share has also been eroded a lot.
But in fact, Aikang has begun a quiet technological transformation, from the initial sale of products. Gradually turn to selling technology and standards. For example, the ABC-5 standard, which has been successfully promoted, has been successfully promoted, and almost all parts suppliers have paid various royalties to Aikang to obtain various technical licenses for the ABC-5 standard.
It is important to know that the ABC-5 standard is not completely free and open like the previous ABC-3 technical standard. However, the current Aikang company's technical reserves are not strong enough, and it is far from being able to develop to the point where it can dominate an industry with its own patents like Qualcomm in another time and space.
However, Aikang has already begun to work in that direction. And make the entire computer industry more competitive and chaotic. For Aikang, the advantages actually outweigh the disadvantages.
If there is no new disruptor in the industry to disrupt the layout of IBM, HP, Deyi and other electronic giants in the computer industry, when any of them develop to the point where they can compete with Aikang, they will immediately overthrow the rule of Aikang like bloody fangs.
It is by no means a very difficult thing for these companies with strong accumulation to come up with a new set of their own standards to replace Aikang's ABC technical standards. Their patent pool is much stronger than that of Aikang's small business. For example, the bus technology for data transmission of various components in the computer, IBM's related technology is better than the existing technology of Aikang.
But for those newly rising computer manufacturers. Their technological accumulation is weaker than that of Aikang, and it is easier for them to be controlled by Aikang. Although more and more manufacturers are joining. It is inevitable to try to lose a part of the market share that originally belonged to Aikang.
However, these new competitors will also effectively contain most of the energy of IBM, Deyi, Hewlett-Packard and other opponents who really pose a threat to Aikang, so that Aikang can control the entire industry more calmly.
"Sir, are you here to buy electrical appliances in Apliu Street? South Korea's new brand Samsung is doing activities to let you enjoy the best quality service at the lowest price!" A young and beautiful girl wearing a pink short skirt stepped forward and smiled sweetly at Li Xuan. Then a flyer was handed over.
Li Xuan took the flyer and glanced at it, convinced that this Samsung was the Samsung in his memory. It's just that Samsung in 1985 has just reached the point of fame in South Korea, and it is far from the world-famous electronic brand 30 years later.
The little beauty who handed out the flyer saw Li Xuan take a serious look at the flyer he handed over, and thought that he was really ready to buy electrical appliances. So he immediately became more enthusiastic: "This gentleman, the Samsung brand is holding activities in the CG Hong Kong flagship store in front.
CG company is a world-renowned chain home appliance hypermarket, with a rich range of home appliance brands and affordable prices, so that customers can shop around, far more worry-free than other small shops in Apliu Street!"
Li Xuan nodded warmly at her, and then took He Qing's white and tender little hand and walked towards the place not far away, where the two huge English letter signs of "CG" were hung. The English name of the computer garden company is "TheComputerGarden". However, in the past two years, the computer park company has gradually transformed from a single computer sales to a chain hypermarket that sells all kinds of household appliances and consumer electronics.
In order to prevent consumers from simply defining the company as a place that only sells computers, the company has gradually diluted the name "Computer Park" since two years ago and used the new brand name "CG".
CG's previous focus in Asia has been on Japan, the world's second-largest economy. However, with the improvement of the layout in the Japanese market, CG began to gradually shift its attention to other regions in the Asia-Pacific region.
CG actually laid out two stores in Hong Kong early on, one on Hong Kong Island and the other in Kowloon. However, the original two stores were only computer stores, so there was no need for a large business area. After CG began to transform into a comprehensive home appliance store, the original business area was far from meeting the new positioning.
Therefore, CG relocated last year and opened the addresses of two new stores. They are located in Causeway Bay, the most famous shopping area on Hong Kong Island, and Apliu Street, a well-known electronic street.
The 50,000-square-foot (5,000-square-meter) CG flagship store on Apliu Street was originally a high-rise residential building with the lowest frontage and basement for commercial operations, but is now leased by CG as a whole.
The CG flagship store is located at the northernmost end of Apliu Street, compared to the small shops on the street, which are often only a few hundred feet long. It naturally looks very imposing. Li Xuan walked into the door of the CG flagship store with He Qing in his arms, and immediately saw a small promotional booth of Samsung in a conspicuous position.
CG's business model is a buyout system, in which the store buys all the goods at a low price from the manufacturer through large-scale procurement, and then sells them at a higher price to earn the difference. All the salespeople in the store are hired by CG and have no relationship with the manufacturer of the product.
In later generations, China's domestic home appliance chain stores such as Suning and Gome adopted another model. The store groups its sales area to different vendors, and then collects rent from it and takes a percentage of the sales of the product as a profit.
But this model is actually very popular only in China. Because its user experience is actually rather poor. In this model, all the promoters in the store are recruited by the respective manufacturers. In order to compete for customers, they often do everything they can. As a result, we can often see in the newspaper that the salesmen of Midea Company have a big fight with the salesmen of Joyoung every once in a while.
In CG's buyout model, the salesman's commission bonus is paid by the store. Therefore, what salespeople need to do is to consider from the perspective of maximizing the interests of customers, so that customers can take advantage of it. Satisfied.
The display of products in CG stores is based on function, not brand. For example, the TV area. On the entire cabinet shelf, according to the different sizes, more than a dozen brands are displayed. There are not only Japanese products such as Sony, Panasonic and Sanyo that are most well-known to Hong Kong people, but also local brands such as Lu's and Carey, as well as European and American brands such as RCA, Siemens and Philips.
And setting up a special exhibition area for a certain brand in a prominent position like today is definitely not an official action carried out by the store. Instead, the manufacturer should take the initiative to come to the store for special brand promotion at their own expense.
Before CG entered Hong Kong, many department stores in Hong Kong had in-house counters, but this is definitely the first time for Hong Kong citizens to experience a one-stop shopping experience like CG Home Appliance Hypermarket. The 80s were an era of rapid transformation of the global retail industry to hypermarketization, and CG Company keenly seized this opportunity and successfully completed its own transformation.
Today is not a weekend or a weekend. However, the customer flow in the CG store is still very good. And judging from the stores in Hong Kong, this transformation is clearly successful. Because Samsung is doing promotions, there are many people gathered around the kiosk.
Many promoters, who wore T-shirts with Samsung's logo on them, were introducing customers to the various advantages of Samsung's latest 38-inch color TV. Color TV is the most important business of Samsung Electronics, and it is also the only business that has now gone global.
It's just that Samsung's TVs only occupy a place in the low-end market of the entire industry. And Samsung is obviously not willing to accept the current situation, and has an ambition to spread its wings in a wider market. The 38-inch large color TV is obviously its attempt at the high-end market.
In order to better promote their own products, even if the company subsidizes all the marketing expenses, Samsung is willing to come to the CG store to do brand promotion. Perhaps it is this perseverance and ambition that has allowed Samsung, which is still an inconspicuous small character in the field of home appliances, to grow into one of the world's top electronics giants more than 30 years later.
Li Xuan was not interested in Samsung's television, and Li Xuan's gaze swept over the left side of the booth, the personal computer with a price tag of 3,899 Hong Kong dollars. This should be one of the cheapest branded computers in Hong Kong, which translates to less than $500 in US dollars.
A promoter keenly noticed Li Xuan's gaze, so he immediately stepped forward with a smile and said: "Hello sir, this is a compatible machine for the ABC-1 computer just launched by South Korea's Samsung company, it uses a 6502 processor, is equipped with a floppy drive, and a 14-inch black and white monitor!"
Samsung is one of the most well-known electrical appliance manufacturers in South Korea, and in order to let more Hong Kong citizens know our brand, Samsung is now cooperating with CG Store to launch the craziest promotion and discount ever! The lowest price of other brands in the store is generally above 4,500 Hong Kong dollars!"
Li Xuan smiled and shook his head, holding He Qing's hand and preparing to leave. South Korea's Samsung is also one of the new computer manufacturers supported by Aikang, otherwise it would not have entered the computer industry so quickly. As for whether it will grow into one of the most important electronic giants in the world like another time and space, Li Xuan is really not afraid of this kind of competition.
With the blessing of his rebirth halo, Oriental Group has made a large number of layouts in many fields such as semiconductors, processors, computer software and hardware, liquid crystals, and mobile communications in advance. If this can't compete with Samsung, then Li Xuan really has nothing to say.
However, the big black eyes of the beautiful woman next to Li Xuan were still nostalgic for the big color TV in the center of the booth. Only then did Li Xuan think of the dormitory that He Qing and Carina Lau shared seemed to have only a small color TV of more than ten inches.
"Let's go, there are more good things in it that make you dazzled, let's go directly to the TV area later, there is a bigger TV than this one!" Li Xuan gently rubbed He Qing's forehead with his forehead, and said affectionately.
He Qing was a little embarrassed: "The price of this kind of big TV is so expensive, I can't afford it! I just saw a 24-inch color TV next to it, and this brand is now on sale, and it only sells for 4,199 Hong Kong dollars." I want to buy one and send it back to my mother!"
Only then did Li Xuan know that Xiao Nizi was not thinking about herself, but wanted to buy a color TV for her mother. Filial girls are always more pitiful, Li Xuan reached out and gently scraped the bridge of her upright little nose.
Then he whispered in He Qing's ear: "There is a mobile vault standing next to you, now you just need to think about what you want to buy today, there are not many opportunities for such unlimited shopping!" (To be continued......)