Back to the teenage years

Chapter 543 Bargaining
As the sun sets, fiery clouds burn in the sky.

Zhang Yunqi paid for dinner out of his own pocket and treated Yang Jin and Xiao Wu to a meal of Zhenzhen rice dumplings, a favorite of students from the No. 1 Middle School in the city.

Zhenzhen Rice Dumplings is a shabby fly-infested restaurant hidden in a deep alley. The environment is relatively poor, but the food tastes good and the price is very cheap. In later generations, Jiangchuan City took advantage of the favorable conditions of the Southern Hunan Tourism Development Conference and became a popular cultural and tourism city. This shabby rice dumpling restaurant has also become an Internet celebrity check-in shop.

The first time Zhang Yunqi ate Zhenzhen rice dumplings was at the beginning of his freshman year in high school.

Ji Ling brought him here to eat.

After eating the rice dumplings, Zhang Yunqi went straight home. Tired after a long day, he fell asleep immediately.

Early the next morning, the spring scenery was still bright.

Zhang Yunqi sent a text message to Chu Jian, got up and rinsed his mouth, then Liu Ming called.

He was quite excited on the phone and told Zhang Yunqi that Liu Jinshi was still in Jiangchuan, staying at Yunbo International Hotel. Finally, he said, "Boss, Liu Jinshi wants to talk to you again today."

Zhang Yunqi thought that Liu Jinshi should have discussed countermeasures with Philips headquarters yesterday.

In fact, from Philips' perspective, the conditions he proposed yesterday were very harsh. Liu Jinshi had no decision-making power and could only report and ask for instructions from Philips headquarters before taking any action.

Zhang Yunqi said, "I won't go and talk to him. All I want are the three conditions I mentioned yesterday. You can talk to him."

Liu Ming hesitated for a moment and nodded.

Zhang Yunqi hung up the phone.

After breakfast, he returned to his study to write materials amid Zhang Ma's nagging.

Materials about the Digital Industry CD Fund.

In fact, when it came to developing VCD players in China, Zhang Yunqi was always very clear about one thing: Aiwa Electronics must get support from the government. If it operated purely on the market, even if it was not squeezed to death by foreigners' technological monopoly, it would be crushed by vicious competition.

Wan Yan and Aiduo are both bloody examples!
After the outbreak of the Asian financial crisis in 1997, China's VCD player production capacity had actually reached a serious overcapacity situation (annual output exceeded 2000 million units), and core components such as movements and decoding chips were controlled by foreign companies such as Philips and C-Cube. The market and companies were completely crazy, price wars and gift wars were everywhere, and the profit margin of Chinese manufacturers for the whole machine was less than 5%!

Under such extremely bad circumstances, Aido and many other private enterprises broke their capital chains and closed down one after another. Wanyan Group, not to mention, exhausted all its funds in advertising in the early stage of the market. When the market was growing explosively, it withdrew from the market due to the broken capital chain. Therefore, the failure to introduce state-owned capital in time was the second biggest strategic mistake made by the leadership of Wanyan Group. However, Xinke was able to survive safely under such circumstances and became bigger and bigger. The state-owned capital behind it played a decisive role! The government gave a lot of subsidies. In 97, a production line alone received million yuan in fund subsidies.

Although the current Chinese DVD player market is increasingly thriving, these profound lessons have always reminded Zhang Yunqi how to avoid fatal risks in this big game.

Zhang Yunqi also knew that the Ministry of Electronics Industry had already had the initial idea of ​​setting up a digital industry CD fund. In order to prevent direct competitors such as Jiangsu Xinke and Guangdong BBK from getting there first and grabbing the largest share, he had to go to the ministry first to start a fire.

Zhang Yunqi's idea was to have Jiangchuan City report to the province, and the province and city would then jointly propose a Xiangnan digital industry CD model to the Ministry of Electronics Industry (later the Ministry of Information Industry). Finally, the Ministry of Electronics Industry would take the lead in establishing a national special fund with the goal of breaking through the core technology of optical storage.

According to his idea, the areas supported by this national special fund mainly include localization of movements, decoding chip research and development, construction of patent reserve pools, etc. The fund funds come from national fiscal appropriations, local government matching and special loans from state-owned banks (ultra-low interest and ultra-long terms). The implementation mechanism adopts the "three-three system" principle, with enterprises raising 30%, local governments matching 30%, and central funds supporting 40%. It promotes the realization of the leverage effect of "every 1 yuan of fiscal funds invested will drive 5 yuan of output value", promotes the upgrading of the information industry, and supports the research and development of core technologies, such as the localization of key components such as decoding chips and optical heads.

Of course, it's easier said than done, but I lost a lot of hair while writing. Zhang Yunqi worked on the materials until the afternoon, and when he was done writing, Liu Ming called again.

The second round of negotiations between Aiwa Electronics and Philips has just ended, and it seems that there have been quite a lot of gains. On the phone, Liu Ming sounded quite excited.

He briefly described the meeting and then reported the negotiation results to Zhang Yunqi: "In the first round of negotiations, we raised three requirements. Liu Jinshi, on behalf of Philips headquarters, agreed to the first one, which was to exempt us from the patent royalties for MPEG-1 decoding technology. One set costs US$5. We purchased 150 million sets, which is a total of US$750 million. Philips is willing to give up 6200 million RMB!"

Zhang Yunqi nodded: "Since the other party has made a concession, let us also make a concession."

Liu Ming asked: "How?"

Zhang Yunqi said: "We can give them all the 6200 million patent royalties without losing a cent."

Liu Ming was stunned. He really couldn't understand Zhang Yunqi's train of thought: "This duck in hand..." Zhang Yunqi interrupted him and said, "You have to give up to gain. Philips customized the movement for Aiwa Electronics based on the second-generation CDM12 series and opened the underlying protocol of the movement. We must do these two things."

"boss Zhang……"

"Ok?"

"Is your goal the third one, to obtain the underlying protocol of Philips' movement..." Liu Ming already understood Zhang Yunqi's idea. In fact, from Zhang Yunqi's words yesterday, he had figured out Zhang Yunqi's core idea. The boss has a fanatical obsession with the "super error correction" function, and believes that this function will play a decisive role in the subsequent fierce market competition, but Philips is unlikely to agree to provide Aiwa Electronics with customized movements... The cost is too high, the boss should be aware of this, but if you get the underlying protocol of the movement, you can also achieve this goal by developing it yourself!

Among the three conditions that the boss set for Philips, the most demanding one was to let Philips customize the movement, followed by opening the underlying protocol of the movement. Now at the critical moment when Philips agreed to waive patent royalties, he gave up this one. When Liu Jinshi knew about this, he would probably feel like he was hanging on a tree, feeling ecstatic. However, his meaning should be quite obvious.

Zhang Yunqi said, "You ask for a sky-high price, but you don't want to give in."

Although business negotiations do not involve so much intrigue, the trump cards will always be revealed little by little according to the other party's strategy.

Giving up the patent royalties of $15 per set may seem stupid, but Zhang Yunqi has his own ideas. In addition to making concessions to get the benefits he wants, the more important reason is that he knows very well that when the VCD player market explodes, Philips and Sony will jointly increase the patent royalties to $25-5 per set! Now, as long as the agreement is signed, he can get 150 million sets of movements with a patent fee of $. It is estimated that by the time Philips comes to his senses, the opportunity will be gone, and he can only swallow the loss.

Of course, this benefit is mainly due to the development of the DVD player market that Zhang Yunqi is aware of. As for the moment, he can't take advantage of it. The other party has a bunch of highly educated talents from top universities, who are very smart. The two sides are more likely to reach a dynamic balance after testing each other's bottom line based on the actual situation, a result that both sides can barely accept. In essence, this is no different from bargaining in the vegetable market.

Of course, the most important thing here is that you are sure that the other party does not have the courage to turn the table.

In fact, Philips is well aware that it cannot stop Sony from squeezing into the Chinese VCD player movement market, and dominance and monopoly are simply unrealistic. However, Liu Jinshi will certainly do everything possible to block Sony's expansion, especially in the competition for large orders from major manufacturers, and will certainly not give up an inch.

At present, Aiwa Electronics is not only the largest component purchaser of Philips, but also the largest component purchaser in China. Once Aiwa Electronics completely falls into the arms of Sony, the consequences will be serious. Sony will lose nearly half of its movement market share in one fell swoop. What is even more fatal is that in the past six months, as Aiwa Electronics invited Jackie Chan to endorse its advertisements on CCTV, Hu Zhibiao's genius marketing creativity has swept the country using newspaper media and door-to-door promotion. With the support of state-owned capital at the provincial and municipal levels, its reputation has risen and its strength is strong. It is undoubtedly the leading brand in the industry. Manufacturers who want to squeeze into the DVD player assembly industry will undoubtedly give priority to imitating Aiwa Electronics' technical standards.

This means that Philips absolutely does not want to lose Aiwa Electronics and the influence that Aiwa Electronics brings. In this negotiation, Philips will not overturn the table.

Zhang Yunqi hung up the phone.

He reached out and picked up the written materials on the desk, preparing to go to the city to meet Li Hongjie.

Li Hongjie is now in charge of Jiangchuan, and was promoted after Yang Jiarong was transferred. Speaking of it, he is also an old acquaintance, Li Xiaoman's biological father, but Zhang Yunqi does not have much interaction with her father.

Jingle Bell……

At this time, the phone rang again.

Zhang Yunqi picked up the phone and took a look. It was an unfamiliar number. He answered: "Hello?"

"Excuse me, is this Mr. Zhang Yunqi?"

"you are?"

"Thank you."

"Thank you, Hall."

"Are you free tonight to have a quick meal together?"

"Thank you, is there something wrong?"

"One is to express my gratitude, and the other is that one of your friends wants to meet you."

"Li Yufei?"

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(End of this chapter)