Chapter 66 , Negotiation
"Many foreign electronic giants have a high evaluation of VCD: the beginning of a huge market change." Wu Jingxiu remembered Smith and told her about the conclusions drawn by C-Cube Company in the market research.
"They predict that 1995 will be a year for VCD technology to mature and produce huge changes." Wu Jingxiu looked at Lin Yi who looked down and added: "According to their statistics and evaluation, the domestic VCD market will usher in a blowout in 1995. It is conservatively estimated that the sales volume of 200,000 units will exceed 500,000 units."
Lin Yi was not surprised by this. If he hadn't been optimistic about the domestic VCD market, foreign electronic giants such as Japan and South Korea would have chosen to enter the country in 1995.
Only Lin Yi knows some things: 95 is not only a year of explosion, but also a year of explosion.
This year alone, the domestic market capacity of 600,000 units will explode. In 1996, it reached an astonishing 6 million units, while in 1997, this number expanded to an incredible 10 million units.
However, in the historical trajectory, there was no domestic player in the market in 1995, and 94% of the market share was taken away by foreigners.
Although the domestic market was occupied by newly emerging companies such as Aido, Panda, and Xinke in 1996. However, the price of VCD has been reduced by more than half compared with that in 1995. The price war started in 1997, even a price of 1,000 yuan or less appeared.
It only took only two short years to make a huge profit to a small profit.
Lin Yi was working at Bubugao in his previous life, and he had read some historical information. May to August of 1995 were called the "Golden March" of the VCD market.
This "Golden March" is not only reflected in the super high unit price of 4,000 yuan to 5,000 yuan on the VCD machine, but also in the popular market of VCD discs.
It is said that as long as you experience the crazy profits in these three months, most startups can complete their original accumulation. Unfortunately, domestic VCD manufacturers have not taken the bus.
Maybe things from the 1990s have the characteristics of the 1990s. The VCD market is just like the health care product market, and its glory is only a few short years.
However, the outcomes of the two are different. One is living in the cold and the other is reborn in small profits. Since 1997, the VCD market has completely matured and driven the rapid development of the electronics industry. Whether it is technical accumulation or talent cultivation, there is a bright future.
This is also one of the reasons why Lin Yi wants to self-produce VCD, which is that he hopes to go further on this technology road.
Wu Jingxiu's information is very detailed and inspiring. Lin Yi believes that if other domestic electronic companies see this information, it will be no less than a mountain of gold.
For example: the maturity report of vcd technology, including listing and distribution of hardware and software; prospect forecasting, etc.
What surprised Lin Yi even more was Wu Jingxiu's forward-looking idea: VCD will become the center of home theaters in the future, and the transformation of partnering with traditional CD machines and combined audio will become a breakthrough in entering the home market. When other competitors do not react, an aircraft carrier will be formed.
"Is this your idea?" Lin Yi, who felt a little picking up his treasure in his heart, quietly raised his head and joked: "In your constructive report, I also hope that the company will produce a combination of audio and CDs, but our VCD market has not yet made a profit."
"I think when you form BBK Electronics, you should have imagined the VCD market, otherwise there would be no courage." Wu Jingxiu continued to suck the clouds and spit out the mist, raised a lady to cross her legs, and looked at Lin Yi leisurely and said:
"So, the idea of home theater has great potential, and you will definitely see its huge superiority."
"You really look down on me." Lin Yi smiled and vaguely, assuming that he was accused, but he also spread his hands: "My wealth is not enough."
"If everything is enough, there is no need to start a business." Wu Jingxiu was really rude as always, and then transferred the topic to the CD.
She suggested that the company immediately launch the disc production line because according to a week's survey, the disc price in the SAR is between 90 and 120 yuan, while the cost is only 15 yuan.
"Do you know, it's hard to buy goods at such a high price." Wu Jingxiu felt that this was a big treasury, with low investment, short cycle, high output, and fast capital recovery. It was enough to solve the problem of capital shortage mentioned by Lin Yi.
If it were later generations, people would definitely sneer at this price. But Lin Yi knew that it was so exaggerated, primitive, absurd and unimaginable now.
Just like the few thousand yuan it took to install a seat phone in the 1980s, it was too outrageous to those who had never experienced it.
But this is the charm of high technology in the times.
And more than that, there are more than a hundred discs in Guangzhou. In Beijing, some in Shanghai markets are as high as two hundred, and the unit price is generally more than one hundred and five.
However, the price of pig killing can only be maintained for two or three months, and then it was cut off by influx of companies and pirated merchants, and the price collapsed in a cliff-like manner. The genuine version is generally 20 or 30 yuan, not to mention pirated versions.
"It is normal to not be able to buy the goods. Now those who start making CDs are basically those who have changed their careers in the past, and outsiders have basically not entered it yet." Lin Yi thought about it and hesitated before asking her: "It's not impossible to do it, but the time is too hasty, and I'm afraid of missing the best opportunity."
The best time Lin Yi mentioned refers to "Golden March". If you miss these three months, there is no need to do it.
"Look at this report." Wu Jingxiu handed a few more pieces of paper to Lin Yi: "This is our preliminary understanding of the SAR market in one week."
The report not only records the market prices of vcd and optical discs, but also the existing manufacturers and distributed regions, but also many records are secretly stumbled against technical workers.
When Lin Yi saw it, he knew that these people had spent a lot of effort these days.
"Are you really so sure?" Lin Yi asked Wu Jingxiu with anticipation after reading it.
"Of course," Wu Jingxiu nodded, then put the cigarette aside and said seriously: "If the boss can trust me, I will hand over this project to me. Within two months, I will definitely hand over the report card."
Although Wu Jingxiu is unique, she knows her own family affairs. If she doesn't make any achievements, she will definitely be worn by this young man in the future. Then such a free life will never be returned.
Moreover, she is very eager to do her own career, realize her own value, and gain recognition from others.
"How much money is needed?" Lin Yi, who was already planning to do it, still thought about it before asking.
"200,000." Seeing Lin Yi agreeing happily, Wu Jingxiu was also stunned. Then she felt a little excited and then pulled out another document: "This is my planning book, and there is also a list of production lines to be purchased."
"Haha, you have a lot of documents today." Lin Yi took the papers, looked at the stack pressing under the woman's elbow, and smiled: "Give it all to me, there is really no money behind it."
"Hehe, you'll finish reading the ones in your hands first, and you'll have to pay for the rest of the troubles." Wu Jingxiu was also amused and naturally lit another cigarette.
After spending ten minutes, Lin Yi quickly finished reading the information, "I need to go for a walk in the front line before making a decision. Although I believe in you, 200,000 is not a small amount."
Lin Yi actually believes in the CD market, but he is not sure whether the technology can be mature within two months and then mass-produced.
Speaking of which, I was negligent in the past and didn’t notice this. After all, this thing is like a flash in the pan and its glory period is too short.
Many manufacturers in later generations just entered the market and were defeated by pirated merchants before they could react, so Lin Yi really didn't remember it.
However, now he has some new ideas. After the glorious period of the disc, Lin Yi plans to use a semi-gift method to promote the VCD machine, which will definitely be of great help to improve market competitiveness.
Moreover, if you produce it yourself, you are not afraid of others following the example and selling it in a side manner. After all, the cost is much lower than buying it for large-scale production. This is what we call cost advantage and competitive advantage.
"Okay," Wu Jingxiu felt that Lin Yi was not in a hurry to talk about funds. Instead, this serious attitude made her happier.
The two of them discussed a lot later, not only discussing technology, but also discussing the focus of the meeting to be held tomorrow.
It was not until the early morning that Lin Yi, who couldn't stand it, drove her away. When he yawned, he said, "You don't have any eyesight to see me, I'm so sleepy."
"Hehe, why don't you smoke a cigarette?" Wu Jingxiu, who stepped outside the door, didn't care. Instead, she signaled the cigarette box in her left hand.
"Okay, you can suck less." With a slam, Lin Yi closed the door in his sleepy tone.
Chapter completed!