Chapter 31 Establishment of Distribution

Today is the last day of the National Electronics Show, and the number of visitors to the show is at its highest. The exhibition areas were overcrowded, and the exhibitors in the venue were also busy, they had to use the last day of the exhibition to attract more business, sell more products, and sign more contracts.

Everyone is very busy, and Li Yixuan is no exception. This is his seventh North American distributor, and unlike his predecessors, this distributor is from Brazil's CMC C. Codillon, which was founded in 1973 and specializes in avionics dealers.

Since Brazil's economic reform began in the 70s, Brazil's economic development has been rapid in recent years, especially in the field of civilian consumer electronics, which has seen rapid growth in recent years.

However, this has encountered another problem, that is, the agency rights of civilian consumer electronics products in Brazil are basically monopolized by trading companies run by local Japanese expatriates in Brazil. There are historical reasons for this.

As early as before World War II, RB had a plan to export immigrants overseas, South America was the focus of RB's immigration program, and after decades of efforts, Chile, Argentina, and Brazil had a large number of RB expatriates. Some RB diasporas have developed to 5 or even 7 generations.

Since the beginning of the 70's, South American countries have continued to reform and open up, attracting a large number of RB electronics companies to settle in, these RB companies and local Japanese overseas Chinese, soon RB electronic products spread all over the streets and alleys of South American countries, such as the new enterprises such as Cimair Codillon company, it is difficult to obtain RB consumer electronics agency, can only find another enterprise to cooperate.

CMC Codilon Company took a fancy to Li Yixuan's company and proposed the exclusive agency right in South America.

For the door-to-door business, of course Li Yixuan will not refuse, but the exclusive agent in South America, or forget it, as far as he knows, the company is famous in later generations, in addition to aviation and civil electronics, and later involved in Brazil's telecommunications and mobile communications business, and even developed to the later cooperation with the south to build air-to-air missiles. But its operations are limited to Brazil and do not reach Chile and Argentina.

CMADILLON is a typical Brazilian central state-owned enterprise, ostensibly it belongs to Embraer, but this company was established under the leadership of Brazil's military bosses, and the purpose of its establishment was to make military avionics for Brazilian military aircraft, with a strong military government background. In the late 70s, the Brazilian military government began to gradually withdraw from the stage of history, and the newly established democratically elected government team, in order to appease the military interest groups, implemented the so-called privatization reform of the military state-owned enterprises that were deeply connected with the military, so those military bigwigs became the majority shareholders of the military industrial state-owned enterprises overnight.

This is a typical pacification measure, which is of the same nature as the pacification measures taken by Zhao Kuangyin, the Taizu of the Song Dynasty in China more than 1,000 years ago, after he released his military power with a cup of wine. Li Yixuan does not care about how harmful such a move will be to Brazil's future. He knew he couldn't go wrong with working with Cimco Cordillon.

At this time, although the company had the title of a central state-owned enterprise in Brazil, it was only the scale of a small and medium-sized enterprise, and it was not yet a behemoth.

Therefore, when the two sides were engaged in trade negotiations, the representatives of CMC Cordillon were not so domineering. The two sides reached a 10-year cooperation agreement in an atmosphere of friendly consultation. DreamWorks' arcade machines and Oranges' computers are sold by Cimco C. Li Yixuan also admitted that after 5 years, he would open the motherboard technology of the Oranges I personal computer to the other party free of charge.

This made the other party very surprised, you must know that the computers in this period are closed, unlike the later generations are open computer era, so the computer motherboard technology is simply the core technology of the computer, any Western company is firmly in the hands, not to mention open technology.

Oranges Inc.'s ability to open up motherboard technology means that in 5 years, they will be able to produce their own personal computers. As a result, the negotiation process was very fast, and the agency contract was signed in only one day.

After the representative of the company left, Liang Ning was a little unwilling, and asked: "Xuan Shao, is the price of your doing this too great, even if you are in a hurry to open up the South American market, there is no need to use the way of drinking to quench your thirst." We can find other agents. I have to report this matter to Mr. Zhang. He thought Li Yixuan was messing around.

"Don't worry, even if my mom knows, she'll only be smart across his son. ”

Liang Ning......

Li Yixuan smiled, unwilling to explain more, "You go down, I know it in my heart." ”

Liang Ning is not a reborn, and it is understandable to look down on the general trend of the future development of computers. However, Zhang Guifang and Li Yixuan are clear that it is an inevitable trend in the future for computer motherboard technology to move from closed to open, and only by taking advantage of this gap to open up the Oranges I motherboard technology can we obtain the greatest benefits. If you wait until IBM opens up the motherboard technology in 82, and then he proposes to open it up, it will not be beneficial at all.

Besides, he is not open immediately, in 5 years, the second generation of personal computers have come out, what is left to do with a obsolete technology, it is better to hold on in 5 years, quickly build around Oranges I various third-party program applications, is the top priority of Oranges.

Five years later, once the various programming applications around Oranges I are built, and then the second generation of 16-bit personal computers are launched, Oranges will be invincible, at least their own 16-bit processors based on the 6502 architecture will not be unmarketable.

Li Yixuan has no plans to open the Oranges I motherboard technology to developed countries in Europe and the United States for the time being, which is completely improvising with the development of semiconductor technology in the United States, which is not beneficial to him at all.

And he also knows that in the next ten years, the competition between Europe and the United States in personal desktop processors will be very fierce, and if Li Yixuan rashly joins in, American desktop processor manufacturers will unite to strangle him.

The best way is to learn from AMD, and come to the countryside to surround the city.

First of all, Intel, IBM, Motorola, DEC, MOS and other predators will not compete for the European and American markets, and first develop the markets of developing countries. After gaining a foothold in developing countries, they will attack the markets of developed countries in turn.

This solution was only implemented by AMD in the mid-90s, when AMD had not yet set foot in the field of desktop processors, so Li Yixuan had enough time to conquer the market in developing countries.

It should be noted that the consumption power of people in these developing countries is limited, therefore, too high-end personal processors are not suitable, and too low-end processors are cheap and too easy to be eliminated, so Li Yixuan aims for his first processor at the mid-range level of Core I5 is the best choice. After gaining a firm foothold in the mid-range CPU, it will attack the high-end CPU field, just like AMD's Relong series.

After the end of CES North America, Li Yixuan established cooperation agreements with a total of 15 distributors, none of whom were first-tier national distributors, but belonged to local third-pole distributors, which were different from first- and second-tier distributors, who had their own retail stores and direct sales staff, and could sell Oranges' personal computers to end users as quickly as possible.

This is what Li Yixuan needs most, he adopts the mature direct + distributor model system in the later generations, the early stage of the company's development, mainly rely on these regional distributors, and mainly rely on direct stores in the later stage. And this model also has an advantage, in the future, you can directly establish a direct sales franchise model on this basis.

In the early days of the development of personal computers, the distribution model of computers was not professional and even more immature. And the target of sales is mainly those small and medium-sized enterprises, as well as computer enthusiasts, looking for those first- and second-level agents, which does not play a big role. Those small and medium-sized regional tertiary distributors are the target of Li Yixuan's attack.

They learned that those users needed personal computers like toys. Tier 1 and Tier 2 distributors don't have this capability.