Chapter 0683 - London Life Huaxing Polygram Factory

Continuing from above,

After talking about Li Wenxing's plan to find Li's call to acquire Li's TV station, let's not mention how he integrated Li's TV station for the time being, and continue to talk about it.

Li Wenxing's third plan is to join hands with Philips and Desing to jointly set up a processing plant for the R&D and production of electronic audio-visual equipment with 'Walkman' and 'tape recorder' as its core products.

This third plan was originally an exchange condition for taking a stake in Polygram Records at a flat price a year ago, and it was natural that the factory would be built as planned.

Especially in the case that the Xingpai Walkman has been sold crazy in Ridao and Xiangjiang, and even sold out, and the production capacity of Shengli Company has been seriously insufficient.

Philips and De Sing have attached great importance to this plan, and their execution is even greater and more active than Li Wenxing.

Na, in this context, because there was no one around him, Li Wenxing had to come forward in person and negotiate the details with the representatives of Philips and De Sing.

First of all, the three companies each contributed to the proportion, and the final result of the negotiation, Li Wenxing, Philips, and De Sing respectively invested in patents plus a small amount of cash, production line equipment, and cash, accounting for 43%, 33%, and 24% of the shares.

After several rounds of negotiations, at the insistence of Li Wenxing, Li Wenxing finally settled in Tin Shui Wai in Yuen Long District, Hong Kong, next to Li Wenxing's own Xinglong Industrial Park.

The reason why we chose to build a factory in Xiangjiang is that the production cost required to build a factory in Xiangjiang is the lowest in terms of human resources, investment in safety and transportation.

Choose to build a factory in Xiangjiang, and every time you produce a Walkman, you will save 10-30 Hong Kong dollars compared with the United Kingdom, West Germany and other European countries.

And if the final production is set at 20 million units worldwide, it means that 200 to 600 million Hong Kong dollars can be saved, which is definitely a huge wealth.

Of course, if you choose Southeast Asia, South America and other countries, the production cost will be lower, after all, the labor wage is low, and the local purchase price of some accessories will be very cheap.

However, as far as the investment environment is concerned, these places are not very reassuring for investors, and in this current year, Southeast Asia and South America are in turmoil all the time, and if one is not good, the investment money may be wasted.

In recent years, Xiangjiang's economic development has been relatively stable, and the political environment is also very harmonious, (after all, the prelude to Sino-British negotiations has not yet begun) and Xiangjiang is still Li Wenxing's base camp, and he can save a lot of hard labor by dealing with political uniforms.

However, because of this, since Xiangjiang is Li Wenxing's base camp, it is possible for him to use this geographical convenience to make ghosts, so Li Wenxing must give up the right to operate and manage the new factory and retain the right to supervise.

Li Wenxing didn't care about the condition proposed by Philips and De Sing, and agreed after a little thought.

In fact, even if he was given the right to operate, he didn't have the manpower available, let alone the time and energy to manage it, he didn't even manage Xinglong's factory, how could he have that leisure?

Since horizontal and vertical is something he doesn't care about, there is no need to continue to fight, but he can't give up his rights plainly, but use it as a bargaining chip, in exchange for the benefits he cares about.

As a result, Li Wenxing took the opportunity to put forward the request for the distribution rights of Philips and De Singpai's 'Walkman' and 'tape video recorders' in Asia.

It is worth mentioning that the Walkman factory is established by three companies together, its technology is shared, and the production equipment is universal, which means that the kernel will be exactly the same, only the appearance of the product's fuselage, gift box packaging, will be made in accordance with the design of each family, that is, OEM production.

And Li Wenxing opened his mouth to ask for the Asian distribution rights of the two products of De Sing and Philips, which is equivalent to that he wants to monopolize the entire Asian market alone, so of course these two companies will not agree to such excessive conditions.

This is normal, people are not stupid, these two conditions are not equal at all, okay, one operation and management right has to be exchanged for the distribution rights of two companies, so how much income does it have to be ceded?

You must know that in the combined factory, the profit difference between the cost price and the production price of the three products is divided together according to the proportion of investment income, and the profit difference between the production price and the distribution price is their own income.

If Li Wenxing takes away the Asian agency distribution rights of their two products, they will lose the entire Asian market in the future.

Li Wenxing is destined not to spend a lot of money on their products, and it is possible to do something that will only sell them a few thousand units a year, even if they use contracts to limit shipments, there are too many means to shirk responsibility, and even if it only takes three or five months, their products will lose their competitive advantage, and it will be useless to get back the distribution rights.

So, the negotiations are deadlocked here,

Until the third day, Li Wenxing took the initiative to give up the European market on the grounds of avoiding malicious competition among the three companies.

In this way, Xingpai focuses on the Asian market, Philips and De Sing focus on the European market, and as for other markets, including North and South America, everyone has their own capabilities.

As soon as this plan was proposed, it was immediately strongly approved by Philips and De Sing, and the two companies agreed to it without much consideration.

How many people are there in Europe today, and how many people can afford to use Walkmans and video recorders? And what about Asia? Does this need to be considered?

To be honest, the two companies were already very worried that Li Wenxing's star brand products would compete with them.

Without him, Li Wenxing's marketing methods are really powerful, and the outside world is rumored to be the god of operation and marketing master.

Or Li Wenxing has a low-price sales strategy, so that people all over the world can enjoy cheap high-quality music sales activities,

Then the two of them will be a complete tragedy, and they can't sell it at a high price if they want to, isn't it impossible to get along with money?

Now he is willing to withdraw from the European market in exchange for a one-man monopoly on the Asian market, which is more beneficial to both of them no matter how you look at it.

If they weren't sure that Li Wenxing was not stupid and wanted to laugh at him, why did they suddenly make such a big change? Isn't this just giving them a profit?

However, for Li Wenxing, of course, he is not stupid in doing this, he is digging a hole for the two families,

No one knows better than him how hot the Asian consumer market will be in the future, not to mention the continent that is about to open up, let's say that the Asian tigers will take off soon,

After eliminating the competition between two excellent high-end brands, he can enjoy the pricing power of the entire Asian market alone, and how much similar products sell and how to sell them will be determined by him, which is the most critical part.

To be honest, even if he is given the European and South American markets, even if it is the same movement, his star brand products will never be sold to Philips and De Sing,

There is no such thing as foreign monks chanting scriptures, and Xingpai will only encounter resistance and heavy setbacks in the European market.

In view of this situation, he might as well take the initiative to abandon the European and South American markets of the two products of the Walkman and the video recorder, and focus on the Asian market and the North American market.

At the same time, with this regression, strive for more benefits, such as winning the agency rights of other products of Philips and De Sing, as well as the right to share some outdated technologies in their hands, well, especially radio, color TV technology,

This is the right choice to maximize profits, and it is also the ultimate goal of Li Wenxing's choice to cooperate with the two companies, otherwise just agreeing to his conditions for taking a stake in Polygram will not be enough for him to make profits deal with so much.

In this way, when several issues in the general direction are negotiated, the remaining details and terms no longer need Li Wenxing to worry about, and they can be drawn up by the people below.

In this way, when the Mei Yuzhen sisters, as well as Shi Nansheng and others, were busy with the promotion of the electronic settlement system and the establishment of the Yingxing Department Store convenience store, the three jointly established Huaxing Polygram audio-visual equipment factories had begun to build infrastructure. I want to talk about "Rebirth of Xiangjiang Giants" with more like-minded people, and pay attention to "excellent reading literature" on WeChat, talk about life, and find confidants~