Chapter 594: Signing with Fortress
Although Hong Kong's major supermarkets and stores have not taken the initiative to contact Media Asia Electronics, Lin Xiaozhi is not the kind of person who likes to sit and wait for guests to come to the door.
He is well aware of the truth that the aroma of wine is also afraid of deep alleys, and while working hard to mobilize all channels to advertise for Media Asia SVCD, he did not forget to instruct Media Asia Electronics to take the initiative to send people to contact those supermarkets and stores in Hong Kong, and soon sold about 300 units of Media Asia SVCD and some CDs to more than 20 supermarkets and stores with an average of 3,400 Hong Kong dollars per unit and half of the purchase price in advance.
Lin Xiaozhi actually considered setting the sales price of the machine at a lower price at the beginning, and then driving the hot sales of the disc through guò cheapness to make a profit. Because after repeated cuts, the final industrial production price of ESVA has reached the level of about 1,840 Hong Kong dollars per 100,000 units produced, which means that even after deducting the freight, wear and tear of each link channel and advertising costs, it is sold at a price of more than 2,500 Hong Kong dollars, almost all of the profits obtained.
Undoubtedly, before the rise of China's manufacturing industry has been affected by the rise of white goods and the price of a sharp cut, the profits of the electronics manufacturing industry that has mastered the core technology are still very sufficient. For example, Panasonic and Sony, which are now in a global bullish rage and spend a lot of money on mergers and acquisitions, not to mention their annual billions of dollars in profits, the Haier Group, which has recently risen in mainland China, is now relying on sales quality and technology every year to inferiorly foreign household appliances of one and a half generations, and the profits obtained by each unit are exciting and eye-catching.
However, Lin Xiaozhi's idea was simply stopped by his newly poached president of Media Asia Electronics Company, Yang Songguang, who had served as the deputy general manager of Hong Kong's leading electronics sales giant - Fortress Electric for eight years, and told him very clearly that the windfall profits in the early days of Media Asia SVCD could not last long. In particular, the appearance of this product will obviously hit the Japanese video projection equipment manufacturers, once Sony, Panasonic and other Japanese electrical giants, and even Philips, Siemens began to snipe, the two sides will inevitably enter the price war.
At that time, Huanya Electronics, which is already focusing on low-end products, will have a plunge in profits if it wants to fight with the giants of the electronics manufacturing industry, so the current good life will not last for a few days. Once you set the price too low as soon as you debut, you will obviously be in a loss-making situation.
Lin Xiaozhi is not the kind of person who is self-serving, and he knows very well that the gap between his company's business strategy and those professional managers who graduated from business schools is not one or two points. Therefore, in the face of Yang Songguang's persuasion, he completely delegated power without much intervention, and after ending the initial propaganda of Media Asia SVCD, he completely handed over Media Asia Electronics to him.
And Yang Songguang did not disappoint him, continuing Lin Xiaozhi's previous strategy, he also believes that relying only on consumer booking for direct sales of Asia SVCD is bound to lose a lot of consumers, only by actively opening the sales channels of major supermarkets and stores, in order to have a foothold after the electronics giants notice that Media Asia Electronics began to fight back.
He then actively contacted many supermarkets and stores, and even contacted the contacts he left when he worked in Fortress Electric in the past, and contacted Lin Liyu, the president of Fortress Electric, to discuss cooperation!
Fortress Electric Appliance Co., Ltd.
"It's been a long time, Mr. Lin!" Yang Songguang, who took the initiative to visit, shook hands with a middle-aged man with a smile on his face.
"When you told me you were going to quit three months ago, I was still wondering which company could poach you. Recently, I saw that Media Asia Electronics was menacing, Lao Yang, you can't say it if you don't invite me to a drink! This middle-aged man is Lin Liyu, the current president of Fortress Electric, and Yang Songguang's former boss, and the two have a good personal relationship.
Founded in 1975 by the Hong Kong Electric Company, Fortress Electric was originally used as an electricity payment center to promote the use of electricity, and developed rapidly since the early 80s after wading in the sale of basic electrical appliances, and in 1986, when it was acquired by Hutchison Whampoa, a subsidiary of Hong Kong tycoon Li Chaoren, it has more than 20 chain stores in Hong Kong, and is the largest electrical appliance sales chain giant in Hong Kong.
Whether it is Sony, Panasonic, Philips or Siemens' video projection equipment, the most important distributor in Hong Kong is Fortress Electric.
Two years ago, Hutchison Whampoa integrated all of its electrical appliances retail business into Fortress Electric, and now Fortress Electric has nearly 40 contact stores, completely consolidating its position as a giant in Hong Kong's electrical appliances sales. Lin Liyu was taken over by Zhang Lin, the former president of Fortress Electronics, after Yang Songguang resigned in the second half of this year, after he was transferred to Watsons as executive director and general manager. If he hadn't been poached by Lin Xiaozhi's high salary, maybe Yang Songguang might have taken over Lin Liyu's class now and would have been the general manager of Fengze Electric.
Although the recent production of SVCD by Media Asia Electronics has been menacing, not only is it cheaper, but it is also a 'innovation' as advertised by Media Asia to replace the cassette with a cheap portable disc. However, Fortress Electric, as the overlord of Hong Kong electrical appliance sales that the major electronics giants are trying to woo, brought more than 29 million Hong Kong dollars in sales to itself in the first half of this year alone, relying on the sale of several video projection equipment from Panasonic, and the net profit was close to 2.7 million Hong Kong dollars. Anyone would be very reserved if they wanted to add one more product to their sales that would obviously conflict with other video projection equipment.
Therefore, although after the product launch conference of Media Asia Electronics, Media Asia SVCD continued to become a controversial topic in Hong Kong, although some people from Fortress Electric noticed the business opportunities, they still did not take the initiative to send people to contact. On the one hand, it is the self-confidence of being the overlord of Hong Kong's electrical appliance sales, and on the other hand, it is not without watching from the sidelines, waiting for Media Asia Electronics to prescribe more preferential conditions for it.
Now, they finally waited for Yang Songguang, the president of Media Asia Electronics, to come and discuss cooperation with Fortress Electric.
"Mr. Lin, we are all old relations of the Ming people do not say dark words, my intention today is to talk to Fortress about the sales of Media Asia SVCD stationed in your Fortress store, I believe that after this period of publicity and word-of-mouth fermentation, your company should be very clear about the excellent performance and price of our new products of Media Asia Electronics, at present, looking at the whole world, there is no video projection product that can compete with our SVCD!"
Lin Liyu looked at Yang Songguang, who was full of confidence, but just smiled but did not refute. As a leader in Hong Kong's electrical appliance sales industry, he naturally knows that although Yang Songguang is full of words, this is indeed the case at present.
Whether it is Panasonic, Sony, Toshiba, Fujitsu, and Sharp, the five giants of Japanese electrical appliances, which are currently attacking cities and territories all over the world and defeating local electrical appliance manufacturers in Europe and the United States, or Siemens and Philips, which dominate Europe and the United States, sell the cheapest video projection equipment in Hong Kong for more than 6,000 Hong Kong dollars, which is still the old model five or six years ago. There is really no video projection equipment that can compete with the new SVCD launched by Media Asia Electronics.
However, although the publicity of Media Asia SVCD is in place, and the quality and reputation are also good, Lin Liyu will not let go of his mouth for a little personal friendship, after all, he is the current head of Fortress Electric, and he needs to be responsible for the thousands of employees in nearly 40 stores of the entire company.
So after Yang Songguang finished speaking, he groaned a little before he spoke: "Lao Yang, your Huanya Electronics has announced the unified sales price of 3888 yuan in the market, this price I admit that it is very competitive compared to any brand of video projector, but it also forced us sellers to death." If you can't give a satisfactory supply price, we can only wait and see! ”
Yang Songguang's eyes flashed: "Mr. Lin, what do you mean?" ”
Lin Liyu simply stretched out two fingers and shook them in front of him. Yang Songguang frowned slightly, knowing that the other party's asking price was 20% of the gross profit, which was a cut higher than the average gross profit of 12-15% given to Fortress by electronics giants such as Panasonic and Sony, but it was not too big with his bottom line, so he could talk.
Yang Songguang pretended to think about it, and quickly shook his head and said: "The supply price we gave to the first batch of sellers is 3,300 Hong Kong dollars, which is already operating at a loss when it is calculated in the current advertising." Therefore, once the supply channel is laid in the future, the price of our supply to Hong Kong sellers will be uniformly increased by 100-150 Hong Kong dollars. If Mr. Lin is sincere, we will also pick up the goods at the price of 3,250 Hong Kong dollars, and ensure that the price of future supply will be increased by up to 50 Hong Kong dollars to ensure the sales profit of Fortress. At the same time, in the sales of CDs, the price of each disc is set at 33 Hong Kong dollars, which is two dollars cheaper than other supply channels, which is not as good as the genuine videotapes that cannot be sold, I might as well tell Mr. Lin to the bottom, our boss Mr. Lin Xiaozhi is contacting the major film companies in Hong Kong, and has reached a preliminary agreement with Yongsheng, Golden Princess and several others, and all the CDs of Hong Kong film companies in the future will be produced and sold through Guò Huanya Discs! ”
These concession conditions did make Lin Liyu's heart moved, but he still didn't agree immediately, but shook his head and still didn't meet the requirements: "The conditions are so-so, the conditions given to us by Panasonic and Sony are better than your Media Asia Electronics." In this case, I will add one more, and if you can meet the requirements, the contract will be signed today. ”
"On what terms?"
"The exclusive sales rights of Macau and Taiwan are handed over to Fortress, as long as you nod, Fortress will immediately buy 5,000 units of Media Asia SVCD with Media Asia Electronics, pay half in cash, and pay the other half after a month!"
This requirement makes Yang Songguang a little embarrassed, Macau is good to say, the market is not small but not big enough, the boss Lin Xiaozhi to the positioning of Media Asia Electronics is a generation of production and research and development, sales is only second, and even when the two communicated before, he also mentioned that it can be handed over to the agent. As one of the four Asian tigers, Taiwan Province not only has a population of about 20 million, but also has a per capita income slightly lower than that of Hong Kong, and is one of the most important markets for electronics giants in Asia.
But after pondering for a while, he felt that considering that the boss Lin Hsiao-chi and the Taiwan authorities were not in the right way now, it was not impossible to hand over the SVCD sales to Fortress, at least when the Taiwan side was really looking for trouble, Li Chaoren's signboard alone was enough for the Taiwan provincial authorities to weigh.
But the market must not be so light yì to Fortress, he also learned from Lin Liyu at the moment, although he has agreed in his heart, but the conditions have to be laid out: "Macau exclusive sales rights can be given to you, but Taiwan is definitely not good, before I left Fortress in Taiwan Province only six stores, four of which are in Taipei, one in Kaohsiung, one in Keelung, since you Fortress want to use our products to open up the market, but also show sincerity!" ”
"Reserve another 3,000 units, if the inventory of Media Asia Electronics is enough, we can add another 2,000 units, and at the same time, we are responsible for the publicity of Taiwan Province, in exchange for you need to provide a batch of Chinese CDs for Fortress separately!"
At this time, Yang Songguang was completely moved, and Fortress ordered 10,000 SVCD with Media Asia Electronics, which is almost a few percent more than the current orders received by the entire Media Asia Electronics. Should it be said that he is the leader of Hong Kong's electrical appliance sales industry?
Yang Songguang has been in Fortress and knows that it is estimated that it is Fortress's bottom line to order 10,000 units in one go. Because it takes time for Fortress's funds to be withdrawn, and it has to make half of the down payment with Media Asia Electronics, it needs to occupy a lot of liquidity.
At that moment, he no longer hesitated, and was ready to go back, even if the boss Lin Xiaozhi did not agree, he would persuade him to agree, and reached a verbal agreement with Lin Liyu on the spot, and made an appointment to bring legal counsel in the afternoon to sign the contract on the spot.