Rebirth in 1989: Building a Chinese Technological Empire

"Mr. Robertson, I think our products can go two routes. The first is the high-end route, which is the products you saw in the exhibition hall just now. These products are the best in terms of design and technology, and are epoch-making. We can use these products to go the high-end route, such as a price of more than $5,000, to make money from rich people..."

"For low-end products, we can purchase products from other brands in China. If the technology is not enough, our Huasheng Group can inject some technology into them to make their product quality reach the quality of Japanese products or slightly better. Then we will quickly occupy the market with a price far lower than that of Japanese products and defeat the Japanese brand first..."

In the room, Xu Huasheng's suggestion made Robertson nod. He also thought this method was good. High-end products need to make more profits and make money from rich people. Although this kind of high-end product has a small sales volume, it has a high profit. In summary, it may make more money.

As for low-end products, the profit is low, but this kind of product can be sold in large quantities. Selling at a lower price can help Walmart attract more customers and help Walmart expand.

Xu Huasheng has a clear positioning for the new company, a high-end route, using Huasheng's products to make more profits. This means not only to make more money for Walmart and new brands, but also to make more money for Huasheng brands. The wholesale price will be very expensive at that time, ensuring that Huasheng Group has sufficient profits.

For low-end products, other domestic brands will be used. Huasheng Group will inject some technology or core components into them at that time to make their product competitiveness reach the competitiveness of Japanese products, and then use low prices to kill Xiaorizi's home appliance industry first.

In the original time and space, Xiaorizi's home appliance brand will eventually be killed by Huaxia products in the low-end market. But Xiaorizi has retained high-end products with high profits.

Now, with Huasheng, high-end brands are also killed by him.

The home appliance industry is also an important industry for Xiaorizi. I don't know what industry Xiaorizi will gamble on after killing this industry?

No matter what they gamble on, Xu Huasheng will kill them. Facing this country that knows small etiquette but no great righteousness, Xu Huasheng will not be soft-hearted.

Home appliances, automobiles, semiconductors, wait until I kill all these industries of Xiaorizi, wait until the economy of Xiaorizi completely collapses, and then see if they will still be jumping all day long.

"Xu, can I ask you a question?"

After some discussion, Robertson looked at Xu Huasheng and asked with a smile, and Xu Huasheng nodded.

"Why don't you cooperate with Best Buy? After all, they specialize in selling home appliances..."

Robertson asked with a smile, and this question made Xu Huasheng laugh.

"Mr. Robertson, first of all, we have a better basis for cooperation. Secondly, we are more optimistic about the future of Walmart. Finally, and most importantly, we think that Mr. Sam is a very great person because he allows more poor people to buy better things."

Xu Huasheng said with a smile, which made Robertson laugh.

"Thank you..."

Robertson said with a smile.

"You're welcome, Mr. Robertson, please say hello to Mr. Sam for me..."

Xu Huasheng said with a smile, and Robertson nodded.

Looking at Xu Huasheng, Robertson's eyes were full of admiration. This young Chinese man who was just in his early twenties was not simple.

The negotiation did not delay the time too much. It took only two days for the entire cooperation to reach a letter of intent.

Walmart Group and Yunling Investment controlled by Xu Huasheng established a company in the United States. The company invested 2 billion US dollars. Walmart Group held 51% of the shares and Yunling Investment held 49% of the shares. The two companies contributed corresponding funds according to the shares and obtained corresponding voice.

Under the strong recommendation of Xu Huasheng, Robertson said that he would recommend Sam to the board of directors to become the first CEO of the company when he returned to the United States.

The current letter of intent is just a framework. How to register and operate the company specifically needs to return to the United States. The next step will be taken after the approval of the Walmart board of directors.

"Xu, thank you..."

At the airport, Sam gave Xu Huasheng a warm hug, his eyes full of gratitude.

"Sam, we are friends, aren't we? Friends should help each other."

Xu Huasheng whispered, which made Sam laugh.

"Yes, we are friends, Xu, next time you come to the United States, I will let you experience what America is like..."

Sam said with a smile. He was very happy. Xu Huasheng recommended himself to Robert as the CEO of the new company.

Although Robertson only said that he would recommend it to the board of directors, Sam knew that Robertson's wordsThis matter is basically a done deal.

Robertson now has a lot of say in the board of directors. As long as his opinions are not excessive, the board will agree. After all, everyone knows that old Sam's health is getting worse and worse, and he may leave at any time. After old Sam leaves, Robertson is the most likely candidate to become the head.

For Sam, changing from a purchasing manager to the CEO of a new company is a new life upgrade. If the new company develops well in the future and is successfully listed, Sam will also become a new legend in the American business world.

Wealth, status, everything, may change because of this.

How can Sam not be grateful for such an opportunity.

After seeing off Robertson and his group, Xu Huasheng drove back to the company.

There is no need to worry about the joint venture for the time being, and the VCD industry alliance has also been progressing rapidly in the past few days.

These days, everyone is busy.

Xu Dabao has also been drinking and eating with some people from the top brands every day these days, and he is very busy.

"Mr. Xu, this is the quotation of parts sent by major factories..."

In Xu Huasheng's office, a staff member knocked on the door and walked in, handing Xu Huasheng a document.

Xu Huasheng took the document and read it carefully. It marked the quotation of each part and the manufacturer and their production capacity, and the data was very detailed.

From the smallest screw to the shell of the DVD player, etc.

Even the prices of the parts on the decoder and the movement are available. The decoder and the movement are also composed of many parts. There are also manufacturers that can produce these parts. There are only a few core things that cannot be produced, such as the decoder chip on the decoder, the laser on the movement, etc.

And the things they cannot produce are the most core things, and these things can only be produced by Huasheng Group at present, and can only be produced by Huasheng Group.

Of course, the decoder chip is not to be mentioned. Now Huasheng Group already has a chip production line.

As for the laser on the decoder, it was not a difficult thing for Huasheng Group. Huaguang Electronics could even solve the light source used in the photolithography machine. With a small laser and the information provided by Xu Huasheng, Huaguang Electronics took only a few days to produce the finished product.

Looking at the cost, Xu Huasheng laughed.

The most expensive part of the VCD player is the decoder and the movement, but the price he gave was only 300 yuan and 150 yuan.

This price is quite cheap. In the original time and space, when the Chinese VCD industry was booming, those foreigners dared to quote hundreds of dollars for a decoder, which shows how black-hearted they were.

In fact, the cost of these two things is not so high. Now the cost of Huasheng Group's production is even lower. Take the decoder for example. The cost price of this thing is only 60 yuan. And the cost price of the movement is only 30 yuan.

A set of decoding chips plus movement has a cost price of 90 yuan, and Huasheng Group sells it for 450 yuan. This is already a huge profit, a 900% profit.

From this, we can see how much money those foreign companies made with these core components when the Chinese VCD industry was booming. It seems that VCD is a carnival for Chinese companies, but in the end all the money was earned by foreign companies, and those Chinese companies ended up with nothing.

Whether it is Wanyan, Aido or other brands, they all disappeared in the long river of history. This is the sadness of not mastering core technology.

The cost price of a VCD player is only 720 yuan.

And this price is still the current cost price. With the increasing sales of VCD players, the cost price will become lower and lower.

However, although the cost price is only 720 yuan, it does not mean that the cost price of the authorized brand is this price.

Because Huasheng Group also has to collect a patent licensing fee, the price of this patent licensing fee is also very simple, charging 200 yuan for each VCD player.

This licensing fee is very expensive. You must know that this is 200 yuan in 1991. It is equivalent to an ordinary person's monthly salary.

In other words, the cost price of the VCD player obtained by the authorized brand is about 920 yuan. As for the selling price, it depends on the pricing of the major brands themselves.

Huasheng Group will not restrict the selling price of their products. Huasheng Group only makes the money it should make. For a VCD player, the decoding chip and movement make 360 ​​yuan, and the licensing fee makes 200 yuan. For a VCD player, no matter how much the brand makes, Huasheng Group will make 560 yuan without doing anything.

No need to sell products by yourself, no need to be responsible for after-sales service by yourself, just sell core products and licensing fees, earn 560 yuan per unit, if you can make money this way, why do you have to work hard to sell products to earn hard money. And there is no risk in making this money, pay first, then get the goods, how stable.

In fact, brands like Changhong also want to make money this way, but they don’t have core technology and can’t make this money.

Earning 560 yuan per unit, selling 1 million units, Huasheng Group can make a net profit of 560 million. And the entire market is more than 1 million units, just the Chinese market alone, I’m afraid it will take millions or even tens of millions of units to make a base. Add in the foreign market, this money, Huasheng Group made crazy.