Super Tycoon

With the announcement of Souni's MP4, more manufacturers announced their MP4 listing, this product began to be noticed by more and more consumers, and they became interested.

Correspondingly, the price of MP3 has dropped again, and the profit margins of all manufacturers have been reduced by a large margin.

Among them, those small manufacturers who purchased patents and produced them are the most aggrieved.

Originally, the profit margin of MP3 was very high. They spent a high price to purchase the patent authorization, and they had to pay more than 100 yuan for each one produced, but they still had a net profit of more than 100 yuan. Dealers, retailers There are also dozens of yuan in profit, and no one thinks there is any problem.

But when the price of MP3 plummeted by 200 yuan, these small manufacturers couldn't afford it. Although the retail price drops, everyone's profits will drop, but the retailer has the right to sell.

Your price is not competitive, your brand is not competitive, and your quality is not competitive. Why should I sell your products?

Selling those big brands is easy to sell and makes a lot of money, without so many after-sales troubles, why not do it?

Small manufacturers have no choice but to continue to cut prices to give retailers and distributors more profits, so their own profits will be continuously compressed.

Even many small manufacturers calculate that they produce an MP3 and sell it, and the gross profit is less than 50 yuan. If you take out other costs, you won't make money at all.

At the same price, those big manufacturers with patent rights can still guarantee a gross profit of more than 100 yuan, and even the production cost of the other party may be lower and the profit will be higher.

Not long after MP3 became popular, no one expected that the time to reshuffle came so early.

From the rise to prosperity of an industry, there will always be a reshuffle in the end. After the big waves wash away the sand, the rest are the industry elites.

Obviously, those small businesses that rely on purchasing other companies' patented technologies will not be elites.

This is also the tragedy of small and small businesses. They have no pricing power, no power to formulate standards, and can only passively accept changes in the rules again and again.

If it is within their ability, it is okay, but once it exceeds their ability, the result is that the company will go bankrupt.

...

Zhang Yang looked at the industry survey report in his hand, the fourth quarter is coming to an end, and products like MP4 are on the rise.

There are more and more companies joining, and the quality is also uneven.

In contrast, the number of companies and brands in the MP3 industry has stopped growing, and even decreased in some areas.

Obviously, some small businesses couldn't bear it, and either transformed into MP4, or withdrew, or had to go bankrupt or be merged by others.

The gap in technology sets up a natural threshold. Money can naturally make up for it, but can a rich company still be a small business?

Hey, our old opponent didn't make MP3 or MP4? Zhang Yang looked at Duan Yongping with some surprise.

Yes. Now Xiaobawang still makes 8-bit game consoles and computer learning machines, and then makes home appliances, mainly kitchen appliances.

This time Xiaobawang didn't buy our patent, nor did it buy from other companies, let alone produce directly without infringing. I heard that their kitchen appliances are selling well.

Duan Yongping is also very satisfied with Xiaobawang's actions. If Xiaobawang dares to imitate their products, he will take up the weapon of law.

Yuxing made MP3 players, but the sales were mediocre. Jin Yuanjian didn't make it. It focused on electronic dictionaries and translation machines. Although the market share is not high, it can still make some money.

However, many schools and enterprises in China have made MP3 and MP4. The quality is relatively average. It can be seen that they are in a hurry, but the price is relatively cheap.

In fact, many technologies can be bypassed. They also have enough R\u0026D personnel to bypass some of our technology patents. We don't know whether they are the same as foreign brands' technology patents.

Currently in the domestic market, our MP3 market share is about 40%, Wanyan's is about 30%, and of the remaining 30%, foreign companies' brands account for about 10%, and other domestic brands account for 20%.

In terms of MP4, Wanyan has a 45% share, we have a 35% share, foreign brands have a 10% share, and other domestic brands have a 10% share.

However, many small MP3 manufacturers in China do not have high profit margins. Some even because of high production costs and patent fees, they can't last long. It is estimated that they will withdraw from this industry within a year.

Zhang Yang picked up his cup and took a sip of tea: Are there many enterprises authorized by Wanyan? Have you ever thought about reducing the authorization fee and giving those enterprises some living space?

I have communicated with Mr. Jiang. It seems that they are going to re-sign contracts with some key companies to ensure that some MP3 products occupy the low-end market, and even plan to license MP4 patents to those companies.

Should we talk to Mr. Jiang, this too early authorization is not good for us.

Zhang Yang waved his hand: No need, if you don't authorize it, they will find other companies to buy it, or even produce it directly. By the time you sue them, some people may have made enough money and run away.

Just arrange people to keep an eye on it so that no counterfeit products of our brand appear. Although our market value has dropped, our brand value has increased a lot. We must maintain this.

By the way, we have to pay close attention to those foreign brands, and pay attention that they may find partners in the mainland for OEM production.

Just like Xiaofuyou GBA, it avoids the high tariffs on imports, and at the same time sells the product, which can make some profits. Nintendo's approach is very smart, otherwise it will definitely not get so many sales in the Chinese market.

Although this sales volume is only a fraction of that of Zhi Duoxing, compared to Sunny and Sega Bandai, it has already earned more than enough.

At present, there are many OEM companies in China, including the world's top Fushikang. If foreign brands can bypass high tariffs and make a lot of publicity, many people will still like them.

Before Zhang Yang was reborn, many people were obsessed with foreign brands, thinking that the quality of foreign brands was good, while domestic ones were all small factories with poor technology.

Even if foreigners like Huaxia's products very much, they also think that it is low-price competition, which is completely taken for granted.

In the past two years, the popularity of products in the island country has begun to decline, but it is uncertain when it will revive. We must let everyone know that all the products produced by Zhiduoxing are the best in the industry, and foreign brands are not as good as them.

After Duan Yongping communicated with Zhang Yang about the new MP4 sales, he finally talked about a topic that interested Zhang Yang.

Zhiduoxing music mobile phone has passed the test and is ready for publicity and production!