Countercurrent 1982

Chapter 1990 Best Buy
The part of giving away the sample DVD machine set off the climax of the whole press conference. Many media reporters who originally wanted to watch Chinese dances had an unexpected harvest at this moment. No matter what, no one could refuse Tianyin Group’s generous offer. A gift, after all, this product looks really good, and no one wants to lose the opportunity to experience a high-tech new product.

So when the bonus DVD came out, the scene seemed a bit chaotic for a while. Many people came to the front desk immediately, and many people extended their hands behind them, completely losing the gentlemanly demeanor they had before.

"I always thought that Americans are well-educated and orderly. Then look at the current situation..." Duan Yun, who was standing under the stage, pointed to the crowded crowd in front of him and said to Li Yun.

"It's normal, as long as people like surprises and gifts, regardless of nationality or race." Li Yun smiled slightly, and then said: "The two hundred DVDs we brought before must not be enough. I asked the staff not to Those who received the gifts have registered, and we still need to send another batch of goods in China."

"It's easy to say. At present, we still have 12000 units in stock in China. We originally planned to put them on the US side first." Duan Yun paused, and then said: "For these American reporters, we have to be more generous. Don't be afraid. Spend money, because this little money is nothing at all, as long as they can promote our company's DVD in the media, the saved advertising costs will be more than this money."

"Yes, but I didn't expect that the first batch of products we brought to the United States were all given to these American journalists as gifts." Li Yun smiled, and then said: "In addition, I also contacted Some well-known columnists in the United States, although they are not experts in the electronics industry, their articles are very popular. They are contributors to some influential magazines in the United States, but the fees are a bit high, and the asking price for each article is 5 US dollars above……"

"This year, I am providing US$3000 million in funding to the US branch. If it is not enough, you can write an application to me." Duan Yun said simply.

"3000 million US dollars is enough!" Hearing what Duan Yun said, Li Yun's eyes lit up.

Everything is difficult at the beginning, especially the cost of opening up the US market is very high. The prices of most things are more than ten times that of domestic products, and the cost of labor can even be as high as hundreds of times.

In the early stage, Duan Yun has invested nearly 700 million US dollars in the US branch, but this amount of money is far from enough to achieve Duan Yun's goal, because from the beginning, Duan Yun never wanted to be a A small player in the US market, his goal is to make Tianyin Group a veritable multinational technology company, so from this point of view, it must have sufficient capital.

3000 million US dollars is not a small amount for today's Tianyin Group, but it is also completely affordable. The investment and income have always been proportional. Those entrepreneurs who fantasize about achieving great commercial success with a small amount of money Or, the probability of success is comparable to winning the lottery. In addition to having enough strength, you also need to have luck against the sky.

Moreover, the reason why Duan Yun invested 3000 million U.S. dollars again was not only for the operation of the company, but also as a bargaining chip for future financing negotiations.

According to Duan Yun's plan, the Tianyin branch in the United States will be separated from the group company in the future and become an independent joint-stock company. Tianyin Group must be firmly in the hands of Duan Yun himself. As for the American branch, Duan Yun It will hold a part of the shares, about 30%~50, and the rest of the shares can be used for financing. After all, to make money from the Americans, a big piece of cake must be allocated.

However, the current U.S. branch of Telling Group is still affiliated with Telling Group, and it is not easy to obtain financing. Only by letting capital see that this branch has the ability to make profits can it be possible to obtain investment , which means that in the early stage, Duan Yun can only rely on his own investment, so that the US branch can achieve a good performance.

After the product launch event, in the next few days, Duan Yun received several American distributors.

Although Chinese companies have always been somewhat unknown and neglected in the American business world, there are still some discerning American distributors who have discovered Tianyin Group, an alternative among Chinese companies, and at this CES exhibition, He became very interested in Tianyin Group's DVD, and also took the initiative to contact Duan Yun.

In the current United States, the top three home appliance chains are Best Buy, Circuit City, and Radio Shack.

These three home appliance chain dealers account for more than 70% of the home appliance sales in the United States, and among them, Best Buy accounts for [-]% of the home appliance sales in the United States, which can be said to be the absolute leader of the home appliance dealers in the United States.

When Sony cooperated with Tianyin Group before, it also introduced Tianyin Group to Best Buy Group, but Best Buy seemed not interested in the products of Tianyin Group. Through negotiation, we hope to establish commercial cooperation with Best Buy.

However, although Best Buy is willing to cooperate with Tianyin Group in principle, it has proposed very unfair cooperation conditions, including requiring Tianyin Group to pay high counter fees, and Tianyin Group’s products can only be sold in the poorest middle of the United States. Cities for sale don't appear in the wealthiest large cities in the east and west of the United States.

In addition, in terms of the cooperative sales model, Best Buy's conditions are also very harsh, the payment can only be settled once a year, and only consignment sales are accepted.

For a long time, the vast majority of product sales have been in three modes, namely direct sales, distribution and consignment sales.

Direct sales means that manufacturers sell their products through their own channels. Distribution means buying goods wholesale and being responsible for their own profits and losses. As for consignment sales, it means that manufacturers put their products on dealers, and when they can sell the products, they can get back the payment. But for those powerful and well-known manufacturers, they will not accept this form of consignment sales. The products wholesaled to distributors must be paid on delivery, and the sales risks are also borne by the distributors.

Therefore, Best Buy only accepts Tianyin Group’s products as consignment sales. In fact, it does not want to take any risks, and transfers all sales risks to Tianyin Group. If the product can be sold, it will share the money together. , then Tianyin Group can only lose money...

(End of this chapter)