Chapter 536: Competition Begins
"Mr. Ke, the Japanese have found that the first trick has no effect on us, and now the second trick is coming soon! JVC has just announced that the ex-factory prices of all models of video recorders they supply to the Asian market will be reduced by 10 percent! Panasonic and Sanyo have also announced that they will cut their prices by 8 percent and 12 percent respectively!" A middle-aged man with a smile on his face walked into Ko Lilun's office and said.
"Hehe, since the other party has made a move, we will also act according to the original plan!" Ke Lilun raised his head and replied lightly.
Japanese electronics companies are very good at group operations, as long as one company makes a breakthrough in a certain field, other companies can quickly follow up collectively, and the reason for this is actually very interesting!
Because Japan's economic lifeline is actually controlled by a few zaibatos. For example, JVC was already controlled by Panasonic as early as 1952, and Panasonic was one of the backbone enterprises of the Sumitomo Foundation. The other core enterprise of the Sumitomo Foundation in the electronics industry is Sanyo Electric, so it is not surprising that these three companies are advancing and retreating together!
In another time and space, the dispute between Sony and Toshiba in the 90s over the DVD format was questioned by many as a public showmanship. Because the two companies belong to the Mitsui Foundation, and within the Mitsui Foundation, there is a meeting of senior managers called the Tsukiyokai to coordinate internal interests.
In this case, how could Sony and Toshiba really fight to the point of life and death. The so-called competition between them is more for the purpose of showing other people.
If all Japanese companies are in harmony, then it will be time for European and American companies to stay awake at night. It is much more controllable for them to stage a fake fight in their own nest than for European and American companies to convince their respective governments to use real knives against Japanese companies!
To get back to the point, after the sudden VCD of the Eastern Group, the most important thing is JVC. Because the largest part of JVC's profits. It comes from its video recorder products.
Therefore, after the Eastern Group began to prepare for the construction of VCD distribution channels, JVC quickly counterattacked. It joined forces with Japanese companies such as Panasonic, Sanyo, Toshiba, and Sony to issue warnings to their respective distributors. Any distributor who acts as an agent for VCD players will be banned by Japanese companies.
This trick is naturally very effective, for example, after the completion of the VCD product promotion conference in South Korea, many distributors have signed regional agency agreements with Oriental Trading. These distributors are carefully selected partners of Oriental Commercial Company. Most of them are strong and have rich experience in the industry.
The blocking orders of JVC and other companies have also forced many dealers to choose to terminate their contracts with Oriental Commercial Company. Because these dealers basically have agency contracts for Japanese brand video recorders. Instead of risking all their lives to accompany the VCD with an uncertain future, it is better to maintain the current interests step by step!
However, the sudden attack of Japanese video recorder manufacturers did not disrupt the pace of Oriental Trading. Because long before the Oriental Commercial Company opened the marketing curtain of VCD, it had already considered in advance various counterattack plans that the enemy might implement.
Therefore, although JVC deliberately made a time difference, it chose to force the agents to withdraw after the Oriental Commercial Company signed contracts with most of the agents, wanting to completely disrupt the plans of Oriental Trading. But at the same time that some dealers chose to withdraw. Oriental Commercial immediately added a group of alternative agents to come in.
"The Japanese guy's last trick didn't work, and this time he started to make real money and make profits!" the middle-aged man snorted lightly, but he, like Co Lilun, who was sitting behind the desk, didn't have any panicked expression.
"The previous actions of the Japanese cannot be said to be completely ineffective, at least half of our current distributors have been converted from the distributors of computers, game consoles, and other products! Although these agents are our hardcore products, their original business has nothing to do with video recorders after all!
Therefore, in the next distribution process, we must give more support to the agent! The original terms of cash delivery can be temporarily suspended. To support distributors to sell VCDs on credit to retail stores for test marketing!" "Chrillan was very clear-headed, and he knew that the war between VCDs and VCRs had just begun. It's far from the point where the winner is decided.
For the price reduction policy thrown out by Japanese companies such as JVC, Oriental Commercial Company also has a complete plan. The listing concession policy of VCD has long been written in the distribution contracts of various agents, so Oriental Commercial Company will never adjust the price of VCD again at this time because of the price reduction of competitors.
Because VCD is a new product, if it comes up, it will go back on its word and reduce the price again. It will only cause a serious blow to the credibility of the distribution contract that has just been signed.
What's more, even if the price of various brands of video recorders in Japan is generally reduced by 10%-15%, their prices are still higher than the price of VCDs. Oriental Commercial Company calculated the production cost of VCD and VHS recorders in great detail when setting the price. If the price of video recorders falls to the same level as VCDs, then the video recorder manufacturers will inevitably fall into the red.
However, Oriental Commercial Company did not follow the price reduction. This time, the Asian market, which VCD first attacked, is much smaller than the three major markets of North America, Europe and Japan.
VCD has not entered the European and American markets for the time being, so video recorder manufacturers will naturally not take action in these markets. For example, JVC's price reduction action is only aimed at the Asian market, and this gives Oriental Commercial Company room to muddy the waters.
US newspapers will soon report that the price of Japanese brand video recorders has been greatly reduced abroad, and only in the US market they are still holding high prices, and they continue to slaughter the stupid Americans! You must know that since the signing of the Plaza Accord, the yen has begun to appreciate rapidly, and this has also led to a large increase in Japan's capital exports.
In recent years, the Japanese have left the impression on the United States that they are bold and not bad for money. And if Japan's wealth is portrayed as being based on the exploitation of Americans at a high price, then an anti-Japanese wave could easily sweep across the United States.
Japanese companies have almost oppressed their American counterparts over the years, so as long as the Eastern Bloc quietly lights the flames, countless people will surely join in!
"Mr. Ke, Director Kim In-chung of Samsung Electronics will arrive in Hong Kong tomorrow. What should we arrange?" the middle-aged man did not leave Currylen's office immediately, but continued to report on the next matter.
"Samsung Electronics is here to negotiate with the Oriental Research Institute this time, and we are only responsible for setting up a line for it, and it is none of our business whether we can negotiate a satisfactory result for the Koreans!
But we must give enough courtesy in terms of reception, and I will personally set up a banquet for this director Jin tomorrow night!" said Ke Lilun after a moment's thought.
In the previous action of Japanese manufacturers to block VCD. Although the Samsung brand is not yet very well-known in the world, it is already the leading domestic brand in South Korea.
Samsung's video recorders also have an unknown share of the Korean market, not to mention that it is still a local snake. If Samsung acts in concert with Japanese companies, it will be much more difficult to promote VCDs in the Korean market, at least.
As a result, Samsung Electronics did not choose to stand on the side of the traditional video recorder companies, but directly expressed to the Oriental Commercial Company that it hoped to join the VCD camp! Since Samsung did not directly choose confrontation, Ko Lilun naturally would not push it in the direction of the enemy.
Even if the Oriental Research Institute is not ready to license VCD-related patents to Samsung, it will not refuse now, but will negotiate slowly. Buy as much time as possible for VCDs to gain a foothold in the Korean market.
And Ke Lilun's attitude towards his boss Li Xuan is also very clear, he has no intention of transferring all his interests into his own bowl. On the contrary, only by uniting more allies and promoting the VCD market as widely as possible can the interests of the Eastern Bloc be truly maximized.
Among all the technologies of VCD, the decoder is undoubtedly the most core part. And the Eastern Bloc has achieved a technological monopoly in this field, and even if other companies immediately start the research and development of decoder products, it will be two or three years before they want to produce results at the earliest! And such a long time is enough for the Eastern Bloc to pick out all its opponents.
Let more other manufacturers join in. to make the VCD market grow rapidly. Doing so would damage RCA's monopoly on VCD production. But more VCD sales also means more decoder sales.
RCA in order to quickly promote VCD. When it was previously determined that the product left the factory, a high profit margin was not retained. In contrast, decoders that have achieved a technological monopoly are much more profitable. Therefore, using a small part of the losses of RCA in exchange for a more lucrative profit of the Oriental Research Institute is definitely a cost-effective deal for the entire Oriental Group.
However, Clair is also very clear that even if the Oriental Research Institute agrees to continue to license VCD technology. Nor will the floodgates be opened right now. The technical level of Samsung Electronics is significantly higher than that of Lu's Electronics and Hutchison Electronics.
The Eastern Bloc must give these two weak little brothers some time to grow. Oriental Group supports these two Hong Kong companies, and is not afraid that the other party will get out of its control after it grows bigger. Samsung Electronics is different, Li Xuan's control has not been able to extend to South Korea.
So for the purpose of the Eastern Group to control the entire VCD industry. As for how to negotiate with Director Kim, so as to delay the negotiations without breaking down the negotiations between the two sides, that is a headache for the Oriental Research Institute, and it has nothing to do with Curry and Oriental Trading.
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"Uncle Wen, has the tape of "True Colors of Heroes 2" come out?" A boy with a board and a school uniform walked into a video rental shop on the corner.
"Ah Kuan, your Uncle Wen and I are not deaf, so you don't need to shout so loudly! The second part of "The True Color of Heroes" has arrived, but you can't watch it this time!" Uncle Wen in the young man's mouth, about fifty years old, was wearing a pair of reading glasses to keep accounts on the counter, and he didn't raise his head when he spoke.
"Why?" asked Kuan, a little confused.
"Oh! This is the disc of "True Colors of Heroes 2", your VCR can only play videotapes, this kind of film only needs to be played with a special VCD player!" Uncle Wen finally raised his head, pointed to a new container shelf in a conspicuous position at the entrance with the tip of his pen.
Ah Kuan noticed that the layout of this video rental shop had been slightly adjusted compared with the previous times. On the shelves of this new extra cabinet, a row of square plastic boxes is densely arranged. Each box had a different movie poster printed on it, and he soon found the disc box for True Colors of Heroes 2.
"Don't mess with it, kid, my discs are all unopened! If you remove the plastic packaging on the outside, I won't be able to sell it in the future!" Uncle Wen immediately admonished.
Ah Kuan looked left and right at the plastic box, and soon saw the appearance of the disc inside from the side, it was round, and it seemed to be only a few pages thick! But he quickly lost interest in this new thing that he couldn't see, put him back on the shelf, turned his head and asked Uncle Wen, "When will the tape come out?"
"I don't think there will be, unless it's pirated goods!" Uncle Wen shook his head and said, "All the movies of Asia Film Company in the future will be changed to release this kind of VCD disc!" So you still have to find a way to convince your old bean to eliminate that VCD player, or ask your classmates who bought that new VCD player!"
"How can this be!" Ah Kuan left the video rental shop with some displeasure.
He would save some pocket money every month, come to Uncle Wen's shop on the weekend after school to rent a video tape or two, and then call a few good classmates to watch it together! This made him gain a lot of prestige in the class, and many of his classmates were willing to play with him!
And when "True Colors of Heroes 2" was released before, he deliberately boasted about Haikou, asking everyone not to spend money to buy tickets, and wait for the video to come out and watch it together at his house! Compared with a movie ticket that has risen to 20 yuan a piece, renting a videotape costs only 5 yuan a day, which is undoubtedly a lot more cost-effective!
As a result, now Ah Kuan was suddenly told that "True Colors of Heroes 2" was no longer available on tape, and he didn't know how to explain it to his classmates. Just when Ah Kuan was very distressed, the listing and sales of VCDs finally began in full swing.
On TV, newspapers, and on the body of buses, various VCD advertisements are overwhelming all at once, and they continue to appear in everyone's eyes. At the same time as large-scale advertising, the distribution of VCD is also in place.
For example, in Uncle Wen's video rental shop, the first batch of VCD discs on the shelves were sold on credit. If no one comes to rent the disc, the owner needs to make sure that the packaging of the disc is not damaged, and he can return it to the superior dealer in full!
But if the outer packaging of the disc is opened, it means that someone is renting the VCD, and then the store will naturally have to pay the agent! )