Different from the mobile Internet era in later generations, the public now has no concept of consumer electronics and does not have a clear definition.

The same is true for Cao Yongluo, who asked, "What is consumer electronics?"

Is it a mobile phone, a game console, or not? ”

Zhou Xin nodded: "Roughly these, simply put, those involved in the chip industry chain belong to consumer electronics."

I plan to use my personal fame to endorse this brand and create a consumer electronics brand that is influential enough to enjoy a high premium. ”

Cao Yongluo, who has been well-informed since childhood, naturally knows that this is difficult, how many Chinese enterprises want to make brands, and it is very difficult to even establish brand recognition in China, let alone establish popularity on a global scale.

"It's very challenging, it's too difficult, it's really too difficult, it's not that I haven't thought about strengthening our domestic brand, there are a lot of practical dilemmas in the middle.

When it was called the Ministry of Machinery and Electronics Industry before, we did research to build a consumer electronics brand.

First of all, the technology gap, we are too big in technology and foreign countries, it is difficult to produce high-quality products, or the yield rate is insufficient, and the cost cannot be controlled.

Secondly, it is difficult for Huaguo's consumer electronics companies to have visibility and reputation in the international market, not to mention that you still want to be a consumer electronics brand with a high premium. "Cao Yongluo is very sincere.

Zhou Xin smiled, he knew very well that the power of one person is small, and the entire semiconductor industry chain ultimately needs products to support subsequent R&D and technology iterations.

"I also know that it is very difficult, and the recognition of domestic consumer electronics brands by overseas consumers is very low.

However, the consumer electronics brand I founded does not think that overseas consumers think that it is a Chinese enterprise.

I am highly tied to the image of Silicon Valley, and when consumers talk about this brand, they will think of me, NewPay, Quora, Riot, these are all Silicon Valley companies.

Users don't associate them with Huaguo.

Just like when users use Yahoo, will they associate Yang Zhiyuan with Wanwan?

And to build a consumer electronics brand with a high premium, I will not put all the industrial chain in Huaguo, Chinese state-owned enterprises can do it, then I will give Huaguo enterprises the opportunity to let them do this part.

The yield rate does not meet the requirements, even if they lose money, they have to do it.

What I need is to have such a brand that will push back the iterative upgrading of Huaguo's electronic technology.

Even if China joins the WTO in the future, these foreign consumer electronics brands are mainly based on manufacturing bases, and they are manufacturing bases with relatively low technical content.

At the same time, for product research and development, product research and development will gradually be put in Huaguo, but these research and development results belong to foreign consumer electronics giants, they will not let Huaguo enterprises to be responsible for research and development, they are responsible for OEM production.

The only people who will do this are probably Chinese. ”

To put it simply, for example, Samsung is the most downstream of the consumer electronics industry chain, consisting of a series of components from chips, screens, radio frequency, antennas, batteries, memory, etc.

For the high-profit components, Samsung will choose to do it by itself, and the medium-profit ones will be done by Korean enterprises, and the low-profit ones will be the turn of Huaguo enterprises.

Profit also means technical content.

Later, Huaguo wants to engage in industrial upgrading, what is industrial upgrading? It is to go to the link with high profits.

This is something that can only be thought about after the development of industrialized countries to a certain stage, and this kind of good thing is not the turn of foreign consumer electronics giants at all.

Huaguo enterprises do not have this technology, let alone this opportunity.

Only high-premium brands can support the continuous iteration of technology throughout the supply chain.

If you often read research reports, anyone who has read research reports on the mobile phone supply chain will have a very deep impression of the part about key companies.

Until 2019, Huaguo's brand awareness has been fully recognized internationally, but in the mobile phone industry chain, Huaguo enterprises are concentrated in the fields of shells, mechanical parts, PCBs, displays, chip packaging and mobile phone assembly.

These are all areas where profit margins are very low.

Twenty years later, let alone in 1999.

Cao Yongluo was very calm, and was not excited by Zhou Xin's words, the more he came into contact with it, the more he knew how difficult this road was: "Zhou Xin, you may have a net worth of billions of dollars now, but it is not enough to build a global consumer electronics brand."

Not to mention that you still want to support the domestic industrial chain in this way.

We also know that we need a high premium to have enough profit margins to promote technological progress, and then continue to enjoy high premiums.

But the reality factor is here, it just can't be done.

There are too many Chinese enterprises, which technology is broken by Huaguo, the price of related products will drop significantly, they will not think about selling at a high price, and they want to seize the foreign trade market at a low price.

At present, we do not respect patents enough, that is to say, after technological breakthroughs, other companies rush to the top, and the companies that achieve technological breakthroughs first cannot fully enjoy the technological dividends, let alone feed back research and development at high premiums.

You should know that China has been negotiating its accession to the WTO, and after the WTO accession negotiations, we need to pay patent fees to foreign companies.

Taking the DVD industry as an example, China is a big producer of DVDs, and we export a large number of DVDs to the world, and now we don't have to pay patent fees to foreign companies, but after joining the WTO, we have to pay $9 for each DVD.

However, if the technology is a local enterprise in China, then the technology does not need to pay patent fees, and it is almost impossible for domestic enterprises to collect patent fees.

Of course, on the bright side, sooner or later we will pay attention to patent protection, but we are facing practical factors at the moment.

It is very difficult for Yenching's R&D institutions to recover patent fees from export companies in Guangdong Province.

It's really very difficult, and it's even more difficult for Chinese companies to focus on R&D than building a consumer electronics brand.

In fact, after you just said it, I think your idea is really feasible, and there is a chance to do it by starting from some small areas.

However, it is difficult to shift the focus of Chinese companies to technology. ”

Cao Yongluo is talking about reality, in fact, at the moment, many things are systemic problems, not problems in a single field.

In fact, for the problems mentioned by Cao Yongluo, Zhou Xin knows some and some don't know.

But for him, it's impossible not to stop doing it because it's difficult.

If you don't do it because of difficulties, isn't it nice to lie down and be an Internet tycoon in Silicon Valley?

"I don't care which company can provide me with the products I want, I only ask for them.

If Huaguo enterprises can meet our needs, then I will give Huaguo enterprises a chance, or Huaguo enterprises think that as long as we give them time, they can meet their needs.

Then when he meets the demand, I will let them join the chain. ”