Usually when new products are sold, very eye-catching advertisements are needed so that they can sell well.

For example, a mobile phone from later generations, overwhelming advertisements can always make them sell well, at least in the initial stage.

But advertising is not just about simply trying to sell goods, there is also an element of product competitiveness.

For example, Coca-Cola, Apple, Google, Nike, Mercedes-Benz, etc., have gone from simply selling products to building a brand culture, allowing people to shift their attention from their products to themselves, thus greatly improving the brand value.

The launch of Transformers Toys is naturally an advertisement, and for the first reason, it is advertised to sell better.

If you want to create brand culture, you can't get over it now. All the above companies have developed to the extreme of the industry before they slowly transformed into the second type of advertising.

Although there are two best advertisements, comic books and cartoons, this does not mean that there is no need for advertisements.

The three commonly known media, TV media, print media and paper media, all need to place advertisements.

And the more prosperous the place, the more intense the advertising will be.

In this regard, Yin Jun and Le Yiling have no experience, so they can only hand over these tasks to the most experienced people and famous advertising companies.

Any advertising company that can do well must have its own media resources.

What's even better is that it can even guarantee you which TV station you can place the advertisements on, which newspaper and which time period and page.

Although such a guaranteed company is a little more expensive, the effect is the best.

At least it can achieve the kind of advertising effect you want.

But whether advertising can eventually be converted into purchasing power is another matter.

During the period before Yin Jun went to the mainland, Le Yiling had been discussing this matter.

Yin Jun discussed with her that the food should be eaten one bite at a time and the road should be taken step by step.

With the current strength of Kirin Group, it is no problem to sell goods to the world in one go. It is amazing where the economy is underdeveloped, just sell less goods.

However, Kirin Group does not have the ability to sell advertising all over the world, especially the ability to continue to burn money in global marketing.

Advertising is a very expensive thing.

You see Nike appearing in various media all day long, it's very lively, right?

As a result, more than 60% of the expenses are all on various endorsements and advertising, and the annual endorsement costs of 100 billion US dollars, which really makes money by relying on brands, rather than by real materials.

The same is Nong Platinum, which is even more crazy in spending ratio, and it is estimated that 80% of them will have to be crazy about broadcasting advertisements.

Yin Jun wants the advertisement of Transformers toys to be effective, not to mention billions a year, but it is normal for at least one billion US dollars.

Just count it, there are dozens of countries in Europe, dozens of countries in the Americas, Japan, South Korea, Thailand, Australia, New Zealand, etc., and there are at least 50 countries worth advertising.

TV media, paper media, print media, and every city is piled up, and at least 1,000 cities are all in the scale of the city.

If you calculate this, do you still think that $1 billion is a lot?

There are definitely not many!

Yin Jun’s total net worth is not 1 billion US dollars now.

Not to mention that Yin Jun has no money, even if Yin Jun is rich, Sister Le cannot agree to such a crazy marketing plan.

She was stingy and finally decided to launch advertisements in ten most developed countries including the United States, Britain, France, West Germany, Japan, etc. The funds endured the heartache and took out 100 million US dollars, which was considered a start.

The average advertising fee of US$10 million in a country is indeed not much.

However, such advertising fees are not less.

Especially considering the current influence of "Transformers" around the world and more advertising orders in the future, after receiving the news, many first-class advertising companies have sent personnel to discuss with Leyiling.

Finally, on the day Wei Xiaofan got married, five advertising companies were finally finalized to represent the Transformers toy advertising business, including advertising production and advertising placement.

However, the 100 million US dollars of advertising fee this time is not enough to support a year, and it is only enough for half a year. Moreover, this is because the five advertising companies gave a big discount.

According to normal prices, even if you hire third-tier stars, the advertising fee will be more than so small, not to mention that what they give, at least they will also be commercialized by famous celebrities across the country.

Businessmen are naturally profit-seeking.

Given such a high discount, their requirement is that if Transformers toys are still advertised in these countries in the future, they will enjoy priority.

Leyiling agreed to this point.

As long as the toys are sold well, she will be willing to give up the advertising fee.

It takes a lot of time to produce an advertisement, not just TV media advertisements, but also print media advertisements and paper media advertisements.

The more will take one or two months, and the less will take ten days and half a month.

While waiting for the advertisement to be produced and broadcast, Leyiling also sent batches of toys to the warehouses of dealers.

Yin Jun wanted to learn from Tao Ganma, whom he admired, and I'll get what you pay for. I'll sell you things and only get the goods if you give them money. In this way, I can make money with peace of mind and not worry about being afraid.

But as soon as this idea came out, Le Yiling was immediately scolded to death.

I have endured it before when you did this on a construction site, because Xiangjiang is our home court, and you actively pay the payment for the goods. This is understandable when we have sufficient funds.

But now you are asking foreign dealers to help us sell things. The Transformers toys have not been tested by the market. You dare to ask others to give them money and pick up the goods. Are you crazy?

Get out of here, don't join in here.

After such a big scolding, Le Yiling shipped the goods to the dealer who signed the contract.

Dealers who have been in contact with them have already paid a 20% advance payment according to the contract regulations. When the goods arrive at them, they will then send 30% of the money. The remaining 50% will be settled every three months after selling the toys.

This is an internationally accepted method of cooperation and the most popular method of ordinary cooperation.

In Yin Jun's opinion, this is purely a dealer squeezing Kirin Toys Company, but as Sister Le said, no matter how prosperous you are in the comics and animation industries, you have never had any successful precedents in the toys industry. Why do they give you some favorable conditions?

no way.

When you are not strong, you can only endure.

Just wait until Transformers Toys sell well around the world, and then discuss a new contract.

Fortunately, Kirin Toys Company has controlled the cost of Transformers toys very well.

For example, the Transformers made of directly made of plastic material do not have to pay Hasbro a patent fee because they do not have a physical joint structure. The smallest one is priced at USD 1, but the actual cost is only 0.5 Hong Kong dollars. The transportation fee is only 13% of the cost, and the gross profit margin is as high as 87%, which is very, very high!

But this is not the highest. For example, the Optimus Prime large aluminum alloy variable robot that is limited to 1,000 pieces is now made. It is about 100 cm high, with a cost price of US$120, but the price is as high as US$6,000. Except for other expenses such as transportation and warehousing, the gross profit margin is still as high as 97%!!

The production cost of Transformers produced from Kirin Toy Factory is not higher than 15% of the selling price.

Even if there are advertising, taxes, transportation, dealer discounts, etc., the total profit margin will not be less than 30%.

Don't think that a 30% gross profit margin is not high.

Do you know what Walmart's gross profit margin is?

3%-5%!

With such a small profit margin, they have become the world's largest supermarket and retail group. The family of five has become the top 20 super rich people in the world!

This profit margin is actually much higher than that of Apple, which will be popular in the future. However, the unit price of things sold by Apple is too high, and the audience is much wider than Transformers toys, so they can become the world's largest company with market value, but Kirin Toys Company must not.

However, Yin Jun never underestimated himself.

The profit of toys has always been one of the most profitable products among all commodities, and is a dog-maker type.

If you can compare profits with it and don’t worry about being as popular as Nokia and Motorola for more than ten years, the only thing left is the cosmetics industry.

As long as there are people, toys can be sold and cosmetics can be sold. This is almost a necessity for daily life like food, clothing and accommodation.

Men may be reluctant to spend money on themselves, and even women may not be willing to buy cosmetics, but they are absolutely willing to buy all kinds of toys for their children. If you don’t buy them, grandparents, parents-in-law, uncles and aunts will still buy them.

To be able to hold the super big IP of "Transformers" tightly, toys can provide Yin Jun with 100 million to 200 million US dollars in net profit every year. Putting this money into the entertainment industry is a huge supplement.

Then, after A-tech, 3D technology, computer capture technology, special effects computer production technology, etc., have developed strongly in all aspects, after the live-action version of "Transformers" is released, not only will the box office be hit directly, but the toys will also usher in a peak again.

A brand can bring itself more than 10 billion US dollars in net profit, which is comparable to a first-class company. What else can Yin Jun not satisfy?
Chapter completed!