"By the way, Mr. Feng, there is one more thing I have always wanted to ask. Before you www.biquge.info sure, those companies will not withdraw their capital, and they will definitely admit losses, why is this? Commissioner Bao asked curiously.

Feng Yu explained simply: "Because of the market. The easiest way to judge whether a company can make money is whether it sells more products, that is, to see how many sales are sold. ”

"As for other things, it is also important, such as cost and so on, but at the end of the day, the company makes money by selling its products. This product can be a visible physical object, such as a car. It can also be invisible, such as design ideas and so on. These have to be sold before they can be exchanged for money. ”

"And how much money you make depends not only on the sales of the product, but also on the profit margin. For example, the main mobile phone of Fengyu mobile phone is now a 399 yuan RMBRMB mobile phone, the sales volume is very high, and the sales volume of one month is worth the sales of the previous product for a year, but the profit margin is very low, and the overall profit is not necessarily too high. ”

"And what determines product sales is price, quality, popularity, sales channels, etc., and in fact, price is the most secondary one. The quality, popularity and sales channels of the product are more important, and the quality is slightly weaker. ”

"When we say popularity, it is easy to understand, that is, how many people know the brand, how many people think that the brand is trustworthy and a brand-name product. The sales channel mainly reflects the market. ”

"We always talk about a market economy, which actually highlights the importance of the market. The market, to put it bluntly, is a place for trading. But nowadays, companies always count a kind of data called market share. The so-called market share is the proportion of a product's share in the sales of similar products in the market. ”

"We will find that companies that have a high market share are generating very good revenues. When they become the first in market share, the brand's popularity will also be greatly improved, with more profits, they can better promote the product, better improve the quality of the product, thus forming a virtuous circle. ”

"In the final analysis, this market share is still examined by the sales volume of the product. But a market can be saturated. For example, if the city has a population of only 300,000, then if you transport 500,000 bicycles, even if the price is reduced below the cost, it will be difficult to sell them out, because few people will buy two, not to mention that many families have a car and do not need a bicycle at all, and some families choose public transportation and do not ride a bicycle. ”

"So what if most of the half a million bikes don't sell? It is necessary to develop new markets, such as neighboring cities, such as other surrounding areas. A brand development for many years, will inevitably touch the saturation of the market edge, can not say that the market is completely saturated, there is always a replacement or something, but sales growth has been unable to meet the increase in production, then we must open up new markets. ”

"Africa, in many people's minds, is a poor region. However, the world's top car companies such as Mercedes-Benz and Volkswagen are focusing on the development of the African market. Because it is a near-blank market, once occupied, the African economy will develop in the future, and they will be able to reap a steady stream of profits. ”

"For example, when this mobile phone first entered the Chinese market, although the economic situation in China is not very good, and there are very few rich people, there are still some who have become rich. Through their drive, people paid attention to the mobile phone, which should have been called Big Brother at that time. And when other people have money, they will also want to buy Big Brother, and most likely, they will buy the same as them. ”

Feng Yu had heard a joke in his previous life, saying that a coal boss went to the capital and brought up a Jaguar sports car, but a few days later, he came to buy a Mercedes-Benz. Why? Because no one knows Jaguar, Mercedes-Benz is considered a luxury car, which is the brand to occupy the market.

"And Erissin, Motorola, etc., which initially occupied the Chinese market, made a lot of profits from it, and their development was also very good at that time. Later, after having our wind and rain mobile phones and Aihua mobile phones, their product sales have been declining, and profits have naturally been declining. ”

"Besides, why do some island companies that have been driven away from the Chinese market want to re-enter the Chinese market? Because we have a big market and we have more advantages than Africa. If our economy is developing rapidly, then the consumption power will be rapidly improved, and the market potential will be greater and greater. At the beginning, mobile phones could only be sold in a year, and now the sales in a month are much more than then. ”

"And occupy a higher proportion of the market, you can get the greatest benefits and profits when the market breaks out. The increase in market share not only increases these cash incomes, but also includes intangible assets, such as brand value. For example, if the income of a listed company is not high at this time, but the market share is the highest, then the stock price will soar, because investors believe that the company that controls the market will definitely be able to make more money. ”

"The former island countries in more than ten years ago, the economy collapsed, they began to vigorously develop our Chinese market, that period of time, did you find that the relationship between the island countries and us has eased a lot, but also willing to invest in us, but also willing to help us improve some technology, and even provide us with some assistance and the like, but correspondingly, we want to provide some convenience for the import of their products."

"At that time, many of our electrical appliances and machinery were products of island countries, and even at that time, people thought that the products of island countries were the best. If it were not for the development of domestic enterprises and the snatching back of the market, then our country's market would be flooded with all kinds of island products, thus seriously inhibiting the development of our own enterprises. The longer it takes, the harder it is for us to develop. ”

"They are for our market, and it is also because of the rise of our Chinese market that the economy of the island country has been eased. This also makes all countries see how high-quality the Chinese market is, how great the potential is. Entering our Huaxia market may not be able to make money, but if you don't enter, you will never be able to make this piece of money. ”

"It is impossible for any company to say that it is impossible to give up our high-quality potential market in Huaxia, and look at how many people we have here and how fast the economy has grown over the years, so that we can know how huge the potential is."

"So if they don't want to give up on our market, then they won't withdraw their investment, and they won't dare to withdraw their investment. And how can normal enterprises give up our market? Even though they have changed from a sole proprietorship to a joint venture, they still have sales channels that allow their products to enter the Chinese market. ”

"So when we negotiate with foreign investors in the future, we should be tougher, because we control one of the best markets in the world!"

Hearing Feng Yu's words, Commissioner Bao's eyes became brighter and brighter, and he also made some kind of decision in his heart.

……

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