The world begins with Hong Kong movies

Chapter 317 Startup
Soon, VCD players appeared in major shopping malls in Shenzhen and Guangzhou.

It was placed next to the counter where the video recorder was displayed, and connected to a large color TV to play high-quality movies that had just finished their run in Hong Kong.

Hong Kong films are currently very popular in mainland China!

In fact, the main force in the mainland videotape market is Hong Kong films.

However, the dominance of pirated videotapes was unavoidable; the profits weren't enough for the authorities to take it seriously.

These were mostly organized by triads on Hong Kong Island; Wu Feng was not involved.

Most of the films produced by Fengrui Films are able to be released normally in mainland China, and the videotapes are mainly genuine, handled by a mainland company.

Coincidentally, due to the publication of magazines and the rental and sale of novels, the large bookstores established in the central areas of major provincial capitals also became rental and sales outlets for legitimate videotapes.

This has made Fengrui Film & Television quite famous in mainland China!
"What movie is this? Is it a new release from Hong Kong?"

Soon, a customer was drawn to the exciting story playing on the large color TV and, after watching for a while, couldn't help but ask a question loudly.

"Of course!"

The salesperson spoke with a hint of superiority, pointing to the exquisite DVD box next to him: "This box has a detailed introduction. It's the latest romantic comedy from a top Hong Kong director, a really good movie!"

"What is this? Isn't it a videotape?"

The customer was quite puzzled. While muttering to himself, he picked up the exquisite disc box and subconsciously examined it. He was soon drawn to the beautiful poster on the outside of the box.

"This is a newly developed VCD player. It doesn't need videotapes; all you need is a storage disc in a box!"

The salesperson demonstrated how to operate the DVD player to the customers present, eliciting gasps of surprise.

Crucially, the DVD player's buttons are labeled in Chinese, which is quite user-friendly for mainland customers.

Moreover, the DVD player is quite beautiful and stylish.

How much does one of these DVD players cost?

One customer couldn't wait and asked, "Do you have enough movie discs? We can't do without them!"

"Five thousand per unit!"

The salesperson spoke loudly, and all the customers present could hear him clearly: "Not only is it easy to operate and can be connected to TVs on the market, but most importantly, these storage discs are quite cheap, only five yuan for a movie!"

"As you've all seen, as long as the surface of the CD isn't deliberately damaged, it can be used indefinitely, which is much more convenient than videotapes!"

"Besides, a movie with two discs, plus a nice box and a small poster, is definitely great value for money!"

"Unlike videotapes, which are basically demagnetized and unusable after being played dozens of times, CDs can be used indefinitely if they are well protected!"

"The mall currently only has about 10,000 movie DVDs, all of which are great movies from Hong Kong!"

"Of course, just like videotapes, CDs can store more than just movies; they also contain songs, operas, and all sorts of audio-visual programs!"

"Currently, it mainly focuses on TV programs from Hong Kong Island, but of course, it also includes some programs from mainland China!"

"Then give me one to try!"

After listening to the salesperson's explanation, a customer immediately placed an order: "How do I connect this DVD player to the TV?"

"There's a detailed instruction manual!"

The salesperson smiled brightly and explained, "If you find that too much trouble, you can also have a technician come and install it!"

She couldn't contain her excitement; this one sale would net her fifty yuan commission, and if she sold a few more, it would be more than her salary. No wonder there are so many wealthy people in the Shenzhen Special Economic Zone.

Once someone started, customers immediately followed suit.

Five thousand yuan is definitely a lot of money for salaried workers.

But for wealthy people who have already made a fortune, it's just an ordinary home appliance purchase.

Of course, if the DVD player had been developed and produced in mainland China, they wouldn't be so enthusiastic about it; products from Hong Kong are still very popular.

And so, without any major advertising, DVD player sales began to pick up.

The key point is that this thing looks more stylish and high-tech than a video recorder.

In addition, the price of discs is indeed cheap, compared to videotapes which often cost over eighty yuan, it's incredibly cheap.

Cough cough, I don't know what to say.

Despite the fact that the mainland videotape market is dominated by pirated copies, they are selling for the highest prices possible for genuine copies. It's just too surreal.

Of course, this amount of money is nothing to wealthy people.

Crucially, videotapes are also quite bulky.

If you have dozens or hundreds of trays, you'll need specially made large boxes and shelves to store them, which is quite inconvenient.

In comparison, CDs and DVDs are much more user-friendly.

In later generations, there were many decorative boxes that were both beautiful and practical, and taking them out now would definitely be enough to attract attention.

This is a huge profit from the wealthy!
Originally, the manufacturers that had switched from military to civilian production planned to sell each DVD player for tens of thousands of yuan, but Wu Feng directly suppressed that price.

It's not that you can't do it!

The key is to keep up with the marketing efforts. Promoting the DVD player as a luxury technology consumer product requires a considerable amount of effort and financial resources.

Wu Feng opposed this approach because he wanted to promote DVD players on a large scale in mainland China, and a price that was too high was not appropriate.

His plan is simple: to lower prices every year.

By 1995 or 1996, ordinary working-class families could afford one if they gritted their teeth. This is the right way to sell home appliances.

Besides, the initial high price of DVD players was designed to attract powerful electronics factories to join the production line, wasn't it?
The profits are too huge; it's estimated that even the military won't be able to suppress it, and Wu Feng's original intentions will be completely ruined.

At that point, won't they have to engage in a price war to boost sales?

Coupled with the suppression and smear campaign by foreign competitors, the boom period for DVD players may be compressed by several years, which involves profits in the tens of billions.

Of course, this is the worst-case scenario and is unlikely to happen.

Most importantly, Wu Feng directly controlled the film sources in Hong Kong, which was an absolutely formidable weapon at the time.

With the cooperation of Hung Hing, they could completely control the source of legitimate DVDs on Hong Kong Island for a certain period of time, which is one of the most important advantages.

At least before CD production technology became widespread, Wu Feng's companies were able to monopolize the supply.

This is just the beginning. Hong Kong Island is not far behind, having also started selling DVD players and acquiring the copyrights of classic Hong Kong films.

This quickly caused quite a stir in the Hong Kong film industry!
(End of this chapter)