Reborn since 1993

Chapter 473: The record can be checked
Wanyan's revenue this year is still acceptable, and it is still one of the world's largest VCD manufacturers, but if you ask Jiang Wanmeng if he is happy, he probably won't be able to smile at all.

If we ask about the domestic technology industry, the first company to suffer heavy losses due to patent issues would be Wan Yan.

Everyone knows that VCD was invented by Wan Yan. Wan Yan's revenue last year reached US$6 million. Together with a number of domestic VCD brands such as Aido and BBK, Wan Yan occupies 95% of the global VCD market share.

However, although it seems that Wan Yan has made a lot of money, because it has not applied for VCD patents worldwide, various VCD brands have almost become rampant in China and even overseas.

On the other hand, VCD patents were seized by manufacturers such as Nippon Benz, including VCD decoding chips and processing chips, which were controlled by four companies: Esstar, Skobo, Philips, and Sony.

This resulted in Wanyan, which seemed to be in a prosperous position, being caught in a brutal price war in the domestic VCD industry. Various VCD manufacturers fought hard to compete internally, and their profits were already frighteningly low. Overseas, VCD profits were snatched away by manufacturers such as Sony and Philips.

Moreover, Toshiba has already launched the first generation of DVDs, and its intention to replace VCDs is almost obvious. Japanese manufacturers such as Toshiba and Sony have stronger control over DVDs than the VCD industry.

Once DVDs become popular, it is only a matter of time before VCDs are eliminated. Even Wanyan may go bankrupt. In fact, Wanyan's revenue this year has dropped by half compared to last year because of the fierce competition from VCDs and the emergence of DVDs!
Jiang Wanmeng heard that some domestic manufacturers had already started contacting Toshiba, hoping to obtain patent authorization from Toshiba, but the price they quoted was more than twenty US dollars for one patent!
More than 2,000 DVD patent fees, plus core components such as decoding chips, are all in the hands of Nippon Benz. It is not clear how much a domestic company can sell a DVD for, but it is certain that it is basically working for Nippon Benz for free.

In fact, in the past, a number of domestic DVD manufacturers were good at internal competition but poor at external competition. They paid more than 230 billion RMB in patent fees to Japanese manufacturers such as Toshiba, and made only RMB for exporting a DVD. They made money entirely by applying for export subsidies, otherwise they would have lost everything.

As the inventor of VCD, Jiang Wanmeng could not bring himself to bow to Japanese manufacturers such as Toshiba and pay patent fees to them.

Now seeing the exclusive interview with Li Dongling on CCTV, Jiang Wanmeng only regretted that he did not apply for the VCD patent back then. Otherwise, the entire VCD industry would not have been corrupted to its current state. The technology industry established by the Chinese was actually snatched away by the Japanese. How could Jiang Wanmeng not hate it!
……

Hailing City, which is also the headquarters of Chunlan Group, is now at the peak of Chunlan Group's development, with annual revenue exceeding 106 billion yuan. Chunlan air conditioners occupy 30% of the air conditioner market share.

The Chunlan Tiger and Chunlan Leopard motorcycles, both priced at over 6 yuan, are high-end products in the motorcycle industry. 10 units were sold in half a year, generating revenue of over billion yuan!
Chunlan is a big name in the air-conditioning and motorcycle industries. It was listed two years ago and now has a share price of over 64 yuan per share, making it one of the three major A-share companies along with Haier and Changhong. Chunlan has thus become the signature brand of Hailing City.

As for the man who turned the tide when Chunlan was on the verge of collapse and led Chunlan's revenue to increase 509 times, Tao Jianxing is undoubtedly the most powerful person in Chunlan now. He even has a huge influence in Hailing City. Chunlan is now the king of air conditioners. Even the founder of Gree is a die-hard fan of Tao Jianxing!

Gree, Haier, Midea and other companies in the air-conditioning industry can only look up to Chunlan and dare not say that they can keep pace with Chunlan. The founder of Gree even said that Gree is just feeling its way across the river with Chunlan.

Like Pingyang, young people in Hailing City are also proud to work for Chunlan. They are reluctant to take off their Chunlan work clothes after get off work. When they go on blind dates or visit relatives, they wear Chunlan work clothes, which greatly increases their blind date success rate. When they visit relatives' homes, they are always flattered and there will never be any blind people to find fault with them, because relatives also hope to use their connections to get a job at Chunlan.

"Mr. Tao, the founder of Dongling Hi-Tech said that domestic motorcycles will fail miserably overseas. What do you think?"

Chunlan is naturally also paying attention to the interview with Li Dongling reported by the central media. Although it is not a competitor, who in the domestic home appliance and electronics industry dares to underestimate Dongling Hi-Tech?

The person who asked Tao Jianxing this question was the person in charge of Chunlan Motorcycle. A person's reputation is like the shadow of a tree. If someone else said this, it would be fine, but if it was said by the founder of Dongling Hi-Tech, the meaning is different and it can't help but make people think about it.

It would be fine if it was just an exaggeration, but if it came true, it would be hard to say what the future of domestic motorcycles would be, including Chunlan motorcycles, which might be in trouble.

At present, domestic motorcycle brands are indeed in full swing, not only in China, where they are competing on par with Japanese and Korean motorcycles, but have also entered Siam, Jiaozhi, Malaysia, Pakistan and even India.

There are dozens or even hundreds of motorcycle manufacturers, large and small, including Loncin, Zongshen, Jialing, Kymco, Yellow River, Shancheng Motorcycle, Shanghai Motorcycle, and Chunlan.

The person in charge of Chunlan Motorcycles was somewhat worried about Li Dongling's "prediction". From what he knew, domestic motorcycles were indeed going crazy in Southeast Asia and other places. They were not only ruthless to Japanese motorcycle brands such as Suzuki, Honda, Yamaha, and Dalin, but also to their own brands, and the price war was fierce.

For example, a Japanese brand motorcycle costs more than US$2100 in Southeast Asia, and a Korean brand motorcycle costs more than US$1500. However, a domestically produced motorcycle only costs US$800, or even US$700 or US$500 in Southeast Asia, and the prices are still being cut desperately.

The person in charge of Chunlan Motorcycle heard that some domestic motorcycles are preparing to lower their prices to below three hundred or even two hundred US dollars in order to enter the Southeast Asian market and earn foreign exchange!

Of course, this fierce price war has caused the market share of domestic motorcycles in Southeast Asia to soar to over 80%, and is almost driving the former motorcycle king Suzuki out of Southeast Asia.

But the person in charge of Chunlan Motorcycle doesn’t know that in this kind of price war, how the hell can a domestically produced motorcycle worth only $200 make money after deducting production costs, tariffs, and promotion expenses?

Being in the industry, the person in charge of Chunlan Motorcycle understands that if they cannot make money by selling motorcycles normally, they can only start from other aspects, such as reducing the price of motorcycle accessories and using low-priced parts to reduce costs. This will inevitably lead to problems such as poor motorcycle experience, high fuel consumption, and easy breakdown.

But the problem is that only a few domestic motorcycle companies have established after-sales systems in Southeast Asia. If this continues, domestic motorcycles will be labeled as "poor quality" in Southeast Asia.

If Siam, Jiaozhi, Malaysia and other places were to be terrified at the mention of domestic motorcycles and would rather buy expensive Japanese-Benz motorcycles than cheap domestic products, then the scene "predicted" by Li Dongling would occur.

After all, this kind of thing is not without warning. Thanks to those profiteers, domestic products have become synonymous with "garbage" in the Russians and other Eastern European countries. If people in Eastern Europe do not have money, they really don't want to buy domestic products.

This influence lasted for more than several decades. Even after thirty or forty years, when one or two generations have passed, people in Eastern Europe still have prejudices against domestic products. This shows how profound the impact is. It is easy to destroy the reputation, but it is not something that can be repaired in a short period of time. The key is that there are still competitors in Western Europe, America, and Japan who are desperately trying to discredit domestic products, which makes it even more difficult.

Tao Jianxing looked at the pictures on TV and sighed for a long time. Why did he want to enter the motorcycle industry? It was because the air-conditioning business was too popular and the profits of Chunlan Air-conditioning began to decrease, so he entered the motorcycle industry.

"No matter what other motorcycle manufacturers do, Chunlan Motorcycles must guarantee quality. Chunlan Motorcycles only makes high-end motorcycles!"

Tao Jianxing said in a deep voice that he could do nothing about the market situation of the motorcycle industry. Motorcycles are now the lifeblood of many local municipal governments. They just rely on local companies to sell more motorcycles, collect taxes, provide jobs, etc. How can they stop the internal competition? If you dare to reduce production, the motorcycle factories in the neighboring city will immediately increase production capacity and steal your job!
After hearing what Tao Jianxing said, the person in charge of Chunlan Motorcycle still had doubts in his heart. Facing the motorcycle industry that was about to be tangled up, could Chunlan really stay out of it? !
"Okay, head of the acquisition team, please tell us about the attitude of Jinling Automobile Factory and whether they are willing to sell Jinling Automobile Factory to Chunlan..."

Tao Jianxing is no longer interested in motorcycles. The great success of air conditioners and motorcycles has made him no longer satisfied with these two industries. Like Mr. Li from Dongling Hi-Tech, he has also set his sights on the automotive industry!

Men's obsession with cars and guns is engraved in their blood and bones, just like women's love for bags and cosmetics. For the founders of companies in various industries in China today, when they feel that their life has reached a certain stage, the next thing they focus on is cars!

However, Mr. Li from Dongling Hi-Tech is just talking about it. When it comes to the automobile planning, he is also considering failure before success. He plans to start with industries such as electric bicycles, and then slowly enter the automobile industry after making money.

Tao Jianxing was different. As soon as he took office, he planned to do something big. He directly acquired a car factory, then rolled up his sleeves and got to work.

……

"At present, most well-known USB flash drive manufacturers in China have basically stopped production. The Ministry of Justice is now suing SanDisk's domestic front company Xingzhidao, demanding compensation for Shenzhou Storage's loss of 20 million yuan!"

At the Dongling Hi-Tech headquarters, Gao Zhiyuan, general manager of the legal department, told Li Dongling about the legal department’s achievements.

(End of this chapter)