Rebirth in 1989: Creating the Chinese Technology Empire

"Mr. Robertson, I think our products can take two routes. The first is the high-end route, which is the products you just saw in the showroom. These products are top-notch in terms of design and technology and are epoch-making. . We can use this product to take a high-end route, such as a price of more than 5000 US dollars, to make money from rich people..."

"As for low-end products, we can purchase products from other Chinese brands. If the technology is not enough, our Huasheng Group can inject some technology into them to make their product quality reach the quality of Japanese products or be slightly better. Then we use far low Quickly occupy the market due to the price of Japanese products and defeat Japanese brands first..."

In the room, Robertson nodded at Xu Huasheng's suggestion.He also thinks this method is good. High-end products need to make more profits and make money from rich people.Although this kind of high-end product sells less, it has high profits. Overall, you may make more money.

As for low-end products, profits are low, but these products can sell in volume and are sold at lower prices, which can help Wal-Mart attract more customers and help Wal-Mart expand.

Xu Huasheng has a clear positioning for the new company, a high-end route, using Huasheng's products to make more profits. This makes more money not only for Wal-Mart and the new brand to make more money, but the most important thing is for the Huasheng brand to make more money. If there are many, the wholesale price will be very expensive by then, ensuring that Huasheng Group will have enough profits.

As for low-end products, we will use products from other domestic brands. When the time comes, Huasheng Group will inject some technology or core components into them to make their products as competitive as Japanese products. The home appliance industry was killed.

In the original time and space, the home appliance brands of the future were eventually defeated by Chinese products in the low-end market.But Xiaoli retains high-profit high-end products.

But now, with Huasheng here, high-end brands are also killed by him.

The home appliance industry is also an important industry for Xiaoli. I wonder what industry Xiaoli will be betting on if this industry is killed?

No matter what the bet is, Xu Huasheng will kill them. Facing this country that knows little etiquette but no great righteousness, Xu Huasheng will not show mercy.

Home appliances, automobiles, semiconductors, wait until you kill all these industries in Xiaoli, and wait until Xiaoli's economy completely collapses, and let's see if they can still run around all day long.

"Xu, can I ask you a question?"

After some discussion, Robertson looked at Xu Huasheng and asked with a smile. Xu Huasheng nodded.

"Why don't you cooperate with Best Buy? After all, they specialize in selling home appliances..."

Robertson asked with a smile. This question made Xu Huasheng laugh.

"Mr. Robertson, first of all, we have a better basis for cooperation. Secondly, we are more optimistic about the future of Wal-Mart. Finally, and most importantly, we feel that Mr. Sam is a very great person because he allows more poor people to buy more Good stuff.”

Xu Huasheng said with a smile, which made Robertson laugh.

"thanks……"

Robertson said with a smile.

"You're welcome, Mr. Robertson, please give my regards to Mr. Sam..."

Xu Huasheng said with a smile, Robertson nodded.

Looking at Xu Huasheng, Robertson's eyes were full of admiration. This young Chinese man in his early 20s is not simple.

A negotiation did not waste too much time. It only took two days for the entire cooperation to reach a letter of intent.

Wal-Mart Group and Yunling Investment controlled by Xu Huasheng established a company in the United States. The company invested US$20 billion. Wal-Mart Group held 50.00% of the shares and Yunling Investment held 40.00% of the shares.The two companies will provide corresponding funds according to the shares and obtain corresponding rights to speak.

Under Xu Huasheng's strong recommendation, Robertson said that when he returned to the United States, he would recommend Sam to the board of directors to become the company's first CEO.

The current letter of intent for cooperation is just a framework. The specifics of how to register and operate the company still need to be returned to the United States. The next step will be taken after approval by Walmart's board of directors.

"Xu, thank you..."

At the airport, Sam gave Xu Huasheng a warm hug, his eyes full of gratitude.

"Sam, we are friends, aren't we? Friends should help each other."

Xu Huasheng whispered, which made Sam laugh.

"Yes, we are friends, Xu. Next time you come to the United States, I will let you experience what America is..."

Sam said with a smile.He was very happy, and Xu Huasheng recommended himself to Robert as the CEO of the new company.

Although Robertson only said that he would recommend it to the board of directors, Sam knew very well that Robertson's words were basically a certainty.

Robertson now has a very strong say in the board of directors. As long as his opinions are not excessive, the board of directors will agree. After all, everyone knows that old Sam's health is getting worse and worse and he may leave at any time. After old Sam leaves, Robertson is the most important person. Possible candidates to become the leader.

Going from purchasing director to CEO of a new company is a new life upgrade for Sam.If this new company develops well in the future and is successfully listed, Sam will also become a new legend in the American business community.

Wealth, status, everything may change as a result.

How could Sam not be grateful for such an opportunity.

After seeing off Robertson and his group, Xu Huasheng drove back to the company.

There is no need to be busy with the joint venture for the time being, and the VCD industry alliance has also been progressing rapidly in the past few days.

Everyone is busy these days.

Xu Dabao has been drinking, dining and negotiating with people from some leading brands every day these days, which is very busy.

"Mr. Xu, here are the quotations for parts sent from major factories..."

In Xu Huasheng's office, a staff member knocked on the door and walked in, handing a piece of information to Xu Huasheng.

Xu Huasheng took the information and read it carefully. It marked the quotation of each component, the manufacturer and their production capacity. The data was very detailed.

It can range from the tiniest screw to the casing of a DVD player, etc.

Even the prices of the parts on the decoder and the movement are different. The decoder and the movement are also composed of many parts. There are also manufacturers that can produce these parts. There are only a few core things that cannot be produced, such as decoding. The decoding chip on the machine, the laser on the movement, etc.

The things they cannot produce are the core things, and these things are currently only produced by Huasheng Group, and only by Huasheng Group.

Of course, it goes without saying that decoding chips are already available in Huasheng Group’s chip production line.

As for the laser on the decoder, this thing is not too difficult for Huasheng Group. Huaguang Electronics can even solve the problem of the light source used in lithography machines. With a small laser, plus the information given by Xu Huasheng, It only took Huaguang Electronics a few days to come up with the finished product.

Looking at the cost, Xu Huasheng laughed.

The most expensive part of the VCD player is the decoder and movement, but the price I gave them was only 300 yuan and 150 yuan.

This price is quite cheap. In the original time and space, when China's VCD industry was booming, those foreigners dared to quote hundreds of dollars for a decoder, which shows how evil they are.

In fact, the cost of these two gadgets is not that high. Now the production cost of Huasheng Group is even lower. Taking the decoder as an example, the cost of this gadget is only 60 yuan.The cost price of the movement is only 30 yuan.

A set of decoding chips and movement costs 90 yuan, and Huasheng Group sells it for 450 yuan. This is a huge profit for the show, a [-]% profit.

From this we can see how much money those foreign companies made using these core components when China's VCD industry was booming.It seems that VCD is a carnival for Chinese companies, but in the end all the money was made by foreign companies, and those Chinese companies ended up with nothing.

Whether it is Wanyan, Aido or other brands, they will eventually disappear in the long history. This is the tragedy of not mastering the core technology.

The total cost of a VCD player is only 720 yuan.

And this price is still the current cost price. As the sales volume of VCD players increases, the cost price will get lower and lower.

However, although the cost price is only 720 yuan, it does not mean that the cost price of the authorized brand is this price.

Because Huasheng Group also charges a patent licensing fee, the price of this patent licensing fee is also very simple. Each VCD player charges a patent licensing fee of 200 yuan.

This licensing fee is very expensive. You must know that this was 1991 yuan in 200.It is equivalent to one month’s salary of an ordinary person.

In other words, the cost price of a VCD player obtained by an authorized brand is approximately RMB 920.As for the selling price, it depends on the pricing of each major brand.

Huasheng Group will not limit the selling price of their products. Huasheng Group only makes the money it deserves.A VCD player earns 360 yuan from the decoding chip and movement, and 200 yuan from the licensing fee. No matter how much money the brand makes from a VCD player, Huasheng Group just makes 560 yuan anyway.

You don’t have to sell products yourself, and you don’t have to be responsible for after-sales service. You just sell core products and license fees, and earn 560 yuan per unit. If you can make money like this, why do you have to work so hard to sell products and earn hard-earned money?And there is no risk at all in making this money. Give the money first and get the goods later. How stable it is.

In fact, brands like Changhong also want to make money in this way, but without core technology, they cannot make this money.

If one unit earns 560 yuan and sells 100 million units, Huasheng Group can earn a net profit of 5.6 million yuan.The entire market is more than 100 million units. The Chinese market alone may have several million or even tens of millions of units.Coupled with the foreign market, Huasheng Group has made crazy money with this money.