Chapter 371: The Project with the Fastest Money
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After Fang Yan Company was acquired by Fan Wuji, it received a huge amount of capital injection, and the production line continued to expand, reaching a scale of more than 500,000 units per month at this time, and it is still growing.
The company's former leaders did not expect that under the operation of Fan Wuxi, the sales of VCDD video players were so good, all of them were VCDD advertisements of Wanyan Company in CCTV, and other brands were simply unable to compete with them.
Everyone is engaged in projects to make money, but like Wanyan Company's current approach, how much profit margin is there? After all, other manufacturers are not like Wanyan Company, which has mastered the core technology of software and hardware, and has formed its own strong R&D capabilities to continuously design and develop a new generation of products.
If you just follow the trend, the profit margin is indeed very small, and there is another important point, that is, the advertising offensive of Fan's Investment Group is too powerful, and it is overwhelming with their advertisements, which is dizzying.
Therefore, in this case, although some companies have also launched their own VCD players, but the effect is very poor, except for some sales in some remote areas, there is no market for selling at a lower price in the central city.
Earlier research institutions, as well as the media, were very conservative in their sales estimates of VCD players, believing that the market capacity of about one million units a year was the most optimistic estimate, and it was very likely that this kind of thing would not reach this level at all, after all, it would take a certain amount of time for the recognition of a new thing.
But the reaction given by the market was beyond everyone's expectations, although Wanyan company's production capacity has reached a monthly output of 500,000 units, but the market seems to have become a bottomless pit, how many products can be digested immediately, which makes the company's sales staff feel a little crazy, it seems that only by constantly urging the factory to work overtime to produce, can they not sell out of stock.
In view of this wonderful phenomenon of Wanyan DVD player, experts and scholars at home and abroad have also conducted a lot of discussions, and the conclusion is that China's economy is in a period of rapid development, so the purchasing power of the people has been greatly improved, and we should see the huge purchasing power contained in the people.
It can be inferred from this that the CEOs of the household appliance industry are a little excited, believing that the retaliatory growth of the household appliance industry will soon appear, and the country wants to set off another round of household appliance sales frenzy, and upgrading will become the keynote of today's home appliance industry sales landlords.
As for the actual situation, only Fan Wuxian knows best in his heart, and this is all the credit of pirated DVDs!
Previously, Fan Wuxi had discussed with Qiu Baohua about the production place of pirated video discs. And Wang Shihan also participated in the cooperation with Qiu Baohuadi. Two people provide technology one by one. One for underground production. Through Qiu Baohua's underground sales channels, these cheap pirated discs were sold all over the country. The promotion of a large number of pirated video discs to video players has paved the way.
In the case of sufficiently bullet ground. Naturally, the sale of guns is not a problem. The bottleneck that restricts the sales of DVD players was easily solved by Fan Wuxi.
But Fan Wuxian also warned Qiu Baohua to pay attention. That is, do not sell pirated DVDs to Hong Kong. Don't do it even if it's very profitable.
For this. Qiu Baohua was a little puzzled. I also specifically asked Fan Wuxian about the local reason.
Fan Wuxian explained to him. The source of the current pirated video discs content. There are mainly two parts. One is from the original American blockbuster. The other is from Hong Kong movies. These two parts of the source form the basis of the existence of pirated video discs.
The U.S. market is huge. And it's selling extremely well worldwide. Domestic piracy has little impact on them. Therefore, you can safely and boldly go to piracy. But this is not the case in Hong Kong.
Hong Kong's population is only 5 million, and if pirated DVDs are imported into Hong Kong without restrictions, the balance on which their various cinema chains depend for survival will be broken, and the basis for the survival of film companies will no longer exist.
Qiu Baohua was quite impressed when he heard Fan Wuxi's high-level argument at that time, and felt that it was really cost-effective to do business with Fan Wuxi, making money was easy to do, and he could learn a lot of things.
Now Wanyan Company's net profit is more than 100 million yuan a month, or after tax, Fan Wuxi's investment has long been recovered, and now it is just a money-making machine. But Fan Wuxian is not stupid enough to blindly expand production, but he has set his sights on SVCDD, which is more suitable for Chinese users, that is, to try to improve the machine's fault tolerance and error correction ability, and clear the way for the application of pirated discs.
Qiu Baohua also made a lot of fun in this situation, his pirated disc circulation can be calculated by ten times the circulation of the DVD player, at least more than five million copies a month, even if one is a profit of four yuan, that is also an income of 20 million, although there are some risks, but for him who is used to doing risky business, this little risk is simply not worth mentioning.
In fact, his job is really simple, that is, to take over the master plate from Wang Shihan, and then return to his own production line to process a large number of them, and the plastic sheets that cost only a few cents have become real RMB after being suppressed, which really makes Qiu Baohua feel a little self-inflated.
Of course, Fan Wuxi's ideals are much farther than Qiu Baohua's, and he is now planning to formulate a plan for the development of DVD players.
The initial specification of DVD was proposed in 1994 and is recognized as a new generation of standard storage technology in the entertainment industry. Moreover, the computer industry has responded positively.
In the early nineties, the U.S. Board of Motion Picture Industry Advisors drafted a letter of desire representing the seven major Hollywood film studios, one of which was to record a standard-length video program on a CDD, with image and sound quality higher than LD. It is important to know that the image resolution of VCCD is very low, and the video performance alone cannot meet the above requirements. In view of the influence of Hollywood Film and Television Group in the world entertainment industry, hardware manufacturers have started a new effort.
At the same time, the MPEG working group developed the MPEG-2 compression coding scheme in 1991, which has a much higher compression quality than MPEG-11 at the same resolution, with an average compression ratio of about one-fortieth, but if high resolution is used, the storage medium must have a larger capacity and a higher data rate, up to nearly 1b per second, while the VCD is only 1b.
The introduction of VCD is to take care of the usability of existing equipment and CDD discs, and adopts the MPEEG-1 standard. The adoption of MPEG-2 requires the development of larger-capacity optical discs and new reading and recording equipment, so the development of high-capacity optical disc systems has become a top priority.
Beginning in December 1994, the camp led by Philips and Sony, and the two camps led by Toshiba and Time Warner, began a battle for DVD specifications, and until now there has been no winner or loser.
However, Fan also knew that under the strong urging of American film and computer companies, it was only a matter of time before they reached a unified specification. At the last minute, Sony will make a major concession and abandon its own optical disc structure and agree to adopt Toshiba's dual-disc docking structure, while Toshiba will compromises with Sony, which has rich experience in C production and development, in some technologies such as modulation and processing of data signals.
Seeing that the DVD development standard is about to be formed, how can Fan Wuxian not get a piece of the pie? Although the domestic company is a little weak, but in the development of DVD players, their own technical team still has an advantage, with the previous Wanyan company technical team to develop VCD player precedent, at this time into the development of DVD player is logical, waiting for their standard to come out.
Regarding this issue, Fan Wuxian had to ask Kevin to help, after all, it was very difficult to go deep into these companies to obtain technical information, and he could only hope for this hand of God.
However, on the bright side, Fan Wuxian still extended an olive branch to several large enterprises through foreign branches, and used the monopoly position of the domestic and foreign video player markets as a threat to participate in the formulation of this DVD standard.
However, it seems that except for Philips that it is more interested in Fan's Investment Group, other Japanese companies can be said to be gnashing their teeth at Fan's Investment Group, after all, the sudden appearance of Fan Wuxian has greatly affected their investment plans in the Chinese market.
Without Fan's success, Japanese companies would have gained an advantage in China in many ways, including home appliances and the sensitive rare earth industry, as well as a number of other industries, but for now, these industries can only be left to drool.
Fan Wuzhi didn't care about these, he strengthened the cooperation with Philips, and has been partially involved in the DVD standard development plan, which contains a large market, and he has no reason to miss this opportunity.
As for helping foreigners sell patents, he doesn't have that interest. There are no pop-ups