Return to 88: Starting from Marrying My Sister-in-law

The pregnant wife took her daughter and mother-in-law to Beijing to visit her traumatized sister-in-law.

Logically speaking.

Lu Yang was completely liberated.

He can just take some time to go to Star City. I believe his good sister Du Lingling is also looking forward to his coming.

Unfortunately, he was tripped up by one thing.

The plane tickets have already been purchased.

However, I had to change my route temporarily and fly to America across the ocean first.

"Can the chip samples provided by Falcon really be used in our little prodigy VCD?"

"Indeed."

"What about the performance? The image quality and playback smoothness? Can it be compared with the CL450 chip provided to us by C-Cube?"

"The performance gap is quite large..."

"How big is it?"

"It may be only 450% of the CL70, but compared with the high price of the CL450, the chip provided by Falianke has a great price advantage. Our senior management has discussed it and unanimously agreed that it is enough to make up for the performance gap with the CL450. Mr. Lu, you may not know that this Taiwanese company not only promised to give us an exclusive supply price of less than 45 US dollars, but also if the supply volume is large, there is still room for negotiation. We sincerely invite you to send a senior executive of the company to conduct an on-site inspection."

Falianke is also Lu Yang’s old partner.

Xiaotiancai, Xiaoshengtong and BBK, the three companies that make game learning machines all get the integrated decoding chips from this company.

In order to get the goods at a low price, they also signed a gambling agreement.

The three companies need to obtain millions of coins in total every year.

Therefore, this Taiwanese electronic chip manufacturer is not only familiar to Lu Yang, but also to Xiao Jun, who succeeded the position of general manager of Little Prodigy.

Originally according to the timeline before Lu Yang's rebirth, Flink should have waited until 1994 to launch the MPEG-based video decoding chip. Before VCD became popular on the mainland market, the mainstream of the market still came from the CL450-CL480 chips provided by C-Cube.

Sun Yansheng, the first one to eat the soup, had a full meal.

But it is obvious that the appearance of Lu Yang, the time-space butterfly, has not only affected the future direction of Wanyan Company.

VCD was born in Wanyan Company because of Jiang Wanli, the "Father of VCD", but Jiang Wanli failed to give a bright future to Wanyan Company, which he founded.

His conservative strategy did not allow the VCD audio-visual player to shine as soon as it was launched.

As a result, many major international chip manufacturers failed to realize the bright prospects of MPEG-based video decoding chips at the first time.

One step slow, every step slow. By the time they reacted and started to plan research and development, the decoding chip market had already been monopolized by Sun Yansheng's C-Cube company, which almost accounted for 95% of the output value of the mainland VCD chip market.

This is unimaginable.

As a result, these latecomers can only rely on cheap chip strategies to open up the market in the mainland.

That was a bloody past.

C-Cube also took itself too seriously, thinking that it was almost impossible to be defeated as it had a monopoly on the mainland VCD chip market. The low-price strategy would only cause it to lose billions of US dollars in chip revenue each year, so it flatly refused to join the chip price war and continued to sell its high-priced, high-quality MPEG chips around the world in a conservative manner.

And I believe many people know the final outcome.

Although C-Cube made a lot of money in the first few years after the VCD player was launched, it eventually lost this red ocean market because of its arrogance.

When I wanted to turn back, it was too late. It had no place in the VCD decoding chip market anymore.

The above is not mentioned here.

Let’s first talk about the impact that Lu Yang, the time-space butterfly, has brought to the world chip market.

This eastern continent has a population of over 10 billion and a vast market purchasing base, and its future market consumption potential is immeasurable.

And all of this is visible to all.

Especially the Xiaotiancai game learning machine launched by Lu Yang last year, and the Xiaoshengtong game learning machine, BBK game learning machine, and Subor game learning machine that followed the Xiaotiancai game learning machine...

However, in just two years, the market has grown from nothing to a size of nearly 10 million units, with a production value of several billion yuan.

Wanwan's Falianke company was also the first to try something new. It signed a chip purchase betting agreement with Lu Yang's Little Prodigy, Little Talent, and BBK, thereby occupying the largest share of the learning machine chip market and making a fortune.

There is a previous example.

Any businessman with a keen eye for the market would never miss out on the untapped blue ocean market of VCD decoding chips.
This is just one of them.

Secondly, Lu Yang, the time-space butterfly, has influenced more than just the market for game learning machines. After Wanyan Company launched the VCD player based on the MPEG video decoding chip, the first company to imitate it, the Little Prodigy, launched its own Little Prodigy VCD based on the MPEG video decoding chip in less than three months.

Later, Duan Yongping followed closely and launched his own BBK VCD, with the factory shipping price being the same as that of the Little Prodigy VCD.

It is also stipulated that the retail price of agents shall not exceed RMB 3200 per unit.

This price is much lower than Wanyan Company's Wanyan brand VCD.

This forced Jiang Wanli to adjust Wanyan Company's VCD pricing strategy.

It’s a pity that it hasn’t been adjusted yet.

This man was too arrogant. Even though he broke several cups and cursed Lu Yang, Xiao Jun, Mou Qizhong, Duan Yongping and others for being shameless during the company's high-level meeting, he still didn't think he was wrong. He still insisted on the strategy of high price and high quality. He went against all odds and priced the new generation of Wanyan brand VCD at 4200 yuan per unit. He said bluntly that this was the price of the genuine machine, and the rest of the imitators on the market were just copycat machines, which would sooner or later be spurned by the people because of their poor quality and poor picture quality.

I don't know where this confidence comes from.

But if things ended here, there would only be two companies, Lu Yang's Little Prodigy and Duan Yongping's BBK, to compete with him.

He may not lose.

It's a very simple math problem. Whether it's Lu Yang or Duan Yongping, they can only earn a maximum of 300 yuan by selling a VCD. If the yield rate is too low, they may not even earn 300 yuan.

Jiang Wanli could earn 1300 yuan by selling just one Wanyan VCD, which meant that the net profit of each unit shipped was more than four times that of Xiaotongshen VCD and BBK VCD.

And so on.

Wanyan Company also has the first-mover advantage and has the reputation of being the first VCD player company in China. Even if the VCDs of Xiao Shentong and BBK are working at full capacity to occupy the market, given the population size and consumption potential of the mainland, it is impossible for them to take over the market. They only need to leave a small gap for Wanyan Company's VCD to gain a foothold in the market sales.

Then the future will definitely belong to Wanyan brand VCDs.

While making money, you can also establish your own high-end VCD brand image because the price is slightly higher than the market price.

but……

But will it really develop in this way?
Can Jiang Wanli's high-end market price and strategy of building a high-end VCD brand really work in China in the 90s? It simply does not work.

After Xiao Shentong Company and BBK Company launched their own popular brand VCDs, the market reaction will leave Jiang Wanli dumbfounded.

In his opinion, the only despicable people are Lu Yang, Xiao Jun, Mou Qizhong, Duan Yongping... and so on, these acquaintances who are imitating him.

These people have no moral principles.

but……

The reality is that the entire mainland business community is not following the rules of business.

Lu Yang is not the only one who imitates him. From Duan Yongping, who had a unique vision, to Xinke Electronics, a local company in Pengcheng.

Xinke Electronics even broke the VCD market retail price set by Lu Yang, causing the market retail price to hit the bottom again and again. At one point, it exceeded the 3000 yuan retail price mark in order to seize the market.

This is almost equivalent to not making any money.

But it was this strategy that made Jiang Wanli feel like he had a thorn in his throat, and he collapsed to the point of wanting to get drunk.

He clearly realized that the high-end VCD brand strategy he insisted on would suffer a severe blow from the market, and the blow did not come from Lu Yang and Lu Yang's companies, whom he had always been wary of.

Although Lu Yang is despicable, he is not so shameless as to seize the market by making a loss of 100 to several hundred yuan for each VCD sold.

And Jiang Wanli's shortcomings are exactly what Lu Yang knows best.

He is short of money.

It is impossible to come up with such a large amount of funds of tens of millions or even hundreds of millions to inject capital into the company.

Once a large-scale price war is launched, the capital chain in the company's account will inevitably be broken. If financing is required, the equity ratio of the company held by him as the founder will inevitably be diluted.

This was something he couldn't accept.

Lu Yang had already helped him once, but now the two had fallen out and Lu Yang was unwilling to help him again.

On this basis, since he could not accept this situation, he had no choice but to continue to stick to his high-end VCD brand strategy.

Even if the road ahead is bumpy, he will grit his teeth.

This is the case of the butt determining the head.

Unless he wants to lose his status as founder and management rights in Wanyan Company.

But now, Xianke Electronics' strategy of killing 1000 enemies and losing 800 of its own still made him shudder, because he had to admit that what Lu Yang said before made sense.

"If there is no me, Lu Yang, there will definitely be someone else. The VCD player is bound to be imitated as soon as it is launched on the market. If not today, it will be tomorrow. We should prepare early instead of waiting for that day to come and then try to save it. By then it will be too late."

really……

Following the affordable strategy of Little Prodigy and BBK.

Following Xinke Electronics’ loss-for-market strategy.

More and more miscellaneous VCD brands soon appeared on the market.

Some of these VCD brands follow the low-price strategy of Xiao Shen Tong and BBK, some follow the loss-making market strategy of Xianke Electronics, and some follow the high-end price strategy of cheating everyone...

The quality of the products also varies.

There are large factories and small factories producing products, there are factories with thousands of people and there are assembly plants with only dozens of people.

Such VCD brands are flooding the market, creating a situation where they are mixed with fakes.

Ordinary people are also overwhelmed by the choice.

But in a word, it was the 90s, and ordinary people were still poor and could not save much to choose a product they liked. So even though they knew that Wanyan's brand VCD was the first company in China to sell VCDs, many people still eliminated it first.

Because its price is really too high, if you have the money, you might as well choose a VCD brand that is famous enough and of relatively good quality from the many fake brands on the market. This will not only save a considerable amount of savings, but also meet your family needs.

From this, it seems reasonable that Wanyan brand VCDs gradually lost sales and lost their market dominance in just a few months.

"In that case, it's better to do business with someone you know. We have a basis for cooperation with Falcon, so why don't we talk to Falcon?"

"Well, you should talk to Fa Lian Ke, but it's not me, it's you."

Lu Yang said to Xiao Jun, "The MPEG-based video decoding chip launched by Falianke is obviously not mature enough. If we use it on a large scale in our products now, if there is a problem, the consequences will be absolutely disastrous. So based on the strategy of insurance, we might as well observe it for a while and let the small companies on the market try it out first. They don't care about brand image and product quality anyway. They are just looking for a temporary profit. We can't learn from them. Although we are not as priced as Mr. Jiang's Wanyan VCD, we must match it in quality. Do you understand?"

Xiao Jun was preparing to personally send him to the airport.

But after hearing what Lu Yang said, I was still a little confused.

"Since you are not planning to cooperate with Telefonica and use their newly developed MPEG decoding chip, why did you ask me to go to Taiwan?"

"Pfft."

Lu Yang smiled and said, "I want to have a good talk with Mr. Sun about the supply of chips for us. In the past, Mr. Sun's company was the exclusive agent for our decoding chips, and we had no choice, so he had to say whatever he said, and we didn't even have room for bargaining."

"He priced us at 30% of our total machine cost, which was over $160, or more than 1000 yuan. We had no choice but to grit our teeth and buy it."

"But look at it now."

"We haven't contacted him yet, but he has already contacted me. He even called me a few days ago and said that in order to help our partners expand their market share in the mainland, he took the initiative to propose a price reduction for our chips. The price was reduced to less than $100, cutting it in half. He said he could provide us with a new generation GL-65 decoding chip for $480 each. This guy is really anxious!"

Lu Yang patted Xiao Jun on the shoulder and said, "Tell me, can I not make this trip?"

Xiao Jun opened his mouth...

Lu Yang continued, “Don’t talk yet. I know you still have doubts, but when you go to Wanwan this time, you must make a big fuss. It’s not important to negotiate a contract with FAW to buy chips.

But it is important that everyone knows about it, and I also believe that our partner company will be happy to cooperate.

Attacking competitors is also a way to win. After all, our current non-cooperation on VCD decoding chips does not mean that we will not cooperate in the future. When their products are more mature, we can still discuss in the future."

As he said this, he laughed a few times and patted Xiao Jun on the shoulder.

At this time, they had already arrived at the airport.

Lu Yang brought his secretary Xu Siqi, and Da Jun and Xiao Jiu carried the luggage. The four of them took their passports and tickets and lined up to walk to the boarding gate.

(End of this chapter)