Chapter 360: The Value of Super VCDs
What are you discussing," Xie Wanqing pushed the door in and saw the black-faced projector on the conference table, "This is the new prototype recently developed by the technology center?" ”
"Yes, I was listening to Lao Ding's introduction to the functions of the new prototype, I was not proficient in technical things, and Lao Ding had a hard time introducing it. Pen & Fun & Pavilion www.biquge.info Why did you come here so early? Zhang Ke wanted to discuss the matter of spinning off the technology research center and setting up another company, so he asked Xie Wanqing to have dinner with Zhou You and them in the evening, but he didn't expect Xie Wanqing to come over in a blink of an eye.
"I received your call, I was about to go back to the city, so I came over," Xie Wanqing pulled out a chair, "New model, Lao Ding is waiting for you to come back and offer treasures, Lao Ding has been hiding for a while, and others want to appreciate it in advance, so they asked him to call back under the pretext of technical secrecy, after reading it, how do you feel?" ”
Ding Huai said dejectedly: "After spending so much energy and money, there is still a big gap between what I have developed and what I don't expect......"
"Who said that?" Zhang Ke said with a smile, "My expectation period is not so high, I was quite surprised to see the research department do this, but I didn't show it with a very exaggerated expression." ”
"You said it was impossible to replace DVDs?" Ding Huai said suspiciously.
"There is still a gap between technology and DVD," Zhang Ke nodded and said, "To be precise, it should be the transition technology between VCD and DVD......"
"The DVD format standard was proposed by Toshiba, Sony and other companies at the end of last year, and there will be mature models as soon as the middle of next year. Moreover, the life cycle of the transition technology is so short, it should not be of much value. Ding Huai said.
"From a technical point of view, I can't judge how much it's worth; When it comes to the potential commercial value, it's still considerable," Mr. Zhang said with a smile. "Although there will be a mature DVD player next year, the promotion of DVD involves the large-scale application of DVD digital discs, even if it is jointly promoted by the current international giants, it will be 98 years at the earliest. will be promoted. According to the past practice, these international giants must first get back the huge amount of research funds invested in the early stage, and the price of DVDs in the early stage will not be too low, and the focus in the early stage should be on the European and American markets......"
“…… What will the situation be like in China during this time? Zhang Ke continued, "From my personal point of view, the influx of many machine manufacturers. The rapid expansion of production capacity will eventually make the domestic video player market disorderly and chaotic, and this point in time should be around the middle of 97. The whole machine manufacturers all produce homogeneous VCD, and there is a lack of obvious technology gap between them, and there is no possibility of relying on technical competition in a disorderly and chaotic market. In order to survive longer, there is only one way to go, and that is the way to quench the thirst of the donkey......"
"Price drop?" Xie Wanqing asked.
"Yes. Price reduction, knowing that the price reduction is to quench thirst, but it cannot be avoided, and dying immediately is not better than living two more days and then dying," Zhang Ke said. "Why do miscellaneous DVD players survive in the market? It is because those miscellaneous disc players are cheaper than brand disc players. At present, the market for brand disc machines is not completely saturated, so it can maintain a high land price. Now, in order to establish the AIDA brand, we have invested almost at any cost in marketing in the early stage, and we are fortunate to have achieved some success. It is certain that our success will greatly encourage later, the market means are convenient for reference, I believe that it will not be long before more disc machine brands will emerge, the brand disc machine market is saturated, secondary brands to survive, or major brands to compete for market share, are likely to take the initiative to reduce prices. This is a dead cycle, because of the homogenization of products, a price reduction, other manufacturers have to follow the price reduction, we are no exception, price convergence will soon induce the second round of price reduction, can not effectively control the cost of the whole machine manufacturers will be the first to drive out of the market, can survive the whole machine manufacturers can only maintain meager profits...... The process was very fast, and the time point was around the beginning of '98. At this time, in order to pursue more profits and greater living space, large-scale machine manufacturers will actively seek to reduce the price of upstream components, the price of the movement will continue to fall, and the monopoly of decoder technology is likely to be broken, which will lead to the continuous decline in the price of VCD disc players... Let's analyze these time points, the DVD player was promoted in the overseas market until the middle or end of the 98 year, and at a relatively high price; Before that, VCD in the domestic market, because of the price war, the price dropped to a relatively low position, the price gap between the two, so that the DVD in the domestic market to eliminate the VCD process will be relatively slow, VCD still has a long life cycle, not only the domestic market, the situation in the exhibition countries is also the same. Of course, the survival of VCD drives does not mean that vbsp; Go down, get involved in the production and sales of DVDs, and share a more suitable path for disc player manufacturers who share the high power of DVD in the early stage, but in terms of time, it will be delayed until the middle of 98 years at the earliest, before they can get involved in the production of DVDs, and it may not be until the end of 98 or even later to bring products to the market, because the cultivation of the peripheral disc market is needed. Since the middle of '97, VCD's profit margin has been very narrow, but it will not be until the middle of '98 or even later to find a new profit point, but the profit scale will not be too optimistic at first. In the past year and a half, as long as the timing is right, the commercial value of the VCD can be fully explored......"
"It's so ......," Ding Huai sighed, "It's not in vain!" ”
"Even from the perspective of technology accumulation, any technological breakthrough has great value," Su Jindong said, "according to Ke Shao's analysis, this year's research center will come up with mature models, and it will start slowly at the beginning of next year, and when the VCD price war starts, all VCD manufacturers will inevitably be dragged into the quagmire, we will focus on promoting new disc players at that time, taking the grade VCD as our new profit point, and then actively waiting for the arrival of the DVD era......"
Zhang Ke nodded and said: "There may be errors at the specific time point, the market trend is very different, I am looking forward to the VCD market full of gunsmoke, in order not to let other disc machine manufacturers have concerns about us, before the VCD is launched on the market, we must do a good job of confidentiality...... Also, the video disc production technology should also mature at the same time, there is a disc player, no disc, or no market! Piracy has the benefit of piracy, and it is several times faster than the European and American markets to push a new standard disc player in China......"
On the original historical trajectory, the emergence of VCD can only be regarded as chicken ribs, and it has not brought much profit to the disc machine manufacturers, the main reason is the problem of time, Xinke, Aiduo, BBK and other disc machine giants, for the problem of standards, the dispute was not until the middle of 98 years before the Ministry of Information Industry formulated a unified standard, although this standard later became a global unified standard, but there is no place to be proud of at all, at that time it was really eliminated technology. VCD and DVD are launched at the same time, and even VCD-level discs are rare on the market, so how valuable is it? In the end, it can only be sold at the price of VCD disk players, and it is impossible to compete with DVD in the high-end market.
Zhang Ke also did not expect that the research department could come up with a prototype of the VCD two years in advance, and in half a year, it was completely able to come up with a mature model, which had enough time to operate.
As for the issue of standards, Aida Electronics currently occupies 40% of the market share of disc machines, and the technical specifications of Aida Electronics represent at least a sub-standard form, not to mention that Shao Zhigang and Sheng Qing directly control the huge pirated disc development, production, and sales network.
When Zhou You, Cai Yujuan and others came over, they did not mention this topic again, but discussed the separation of the technology center.
Authority is not formed in a day, Zhang Ke has enough prestige in this small *** at this time, which is proved by the miraculous achievements in the past two years, Zhang Ke said what he planned in his heart, although he could not clearly say that the Asian financial storm that was about to break out in the autumn of 97 years, Xie Wanqing, Su Jindong, Ding Huai and others still quite supported his plan.
The technology research center was spun off to set up a special technology company, and the research and development of the DVD player will also be entrusted by the technology company.
In addition, the shares of the research institute jointly established by AIDA Electronics with TI to specialize in the research and development of DVD movements will also be placed under the name of the technology company.
Zhang Ke, Xie Wanqing, Su Jindong, Ding Huai, Zhou You and others have maintained their shareholding in technology companies.
After eating, the matter was also discussed, Zhang Ke and Wanqing went back in the same car, in the car, Zhang said to Wanqing: "The price war of the disc machine seems to be inevitable." My original plan, even if it can't be avoided, but also to delay the time as much as possible, after all, the feeling of enjoying high profits is also quite good, even if Chint and Jincheng joint venture Kewang Electronics will make money from it, that is no way to do things, after all, in business, you can't hurt yourself for hurting others. I didn't expect Lao Ding to be able to drum up the level VCD out, it's really surprising, I can't reveal this crooked mind in front of Su Jindong and Ding Huai, now it seems that the sooner the VCD price war is more and more tragic, the more it can suddenly level the value of VCD. It's really exciting, and now I'm worried that Chint and Jincheng won't invest enough here......"