The person who came to UFO Records was Peng Guohua. To be precise, he had been in Hong Kong several times and had been talking to Deng Yimin and Ye Zipei before. Now Kang Jianfei has to come forward to make an idea in person.
Fengxing Records Company.
Ye Zipei took the tray from the female secretary's hand and put the tea in front of Kang Jianfei and Deng Yimin.
Deng Yimin took the teacup, nodded to Ye Zipei and said, "Thank you!"
Kang Jianfei used the tea cup lid to tick the tea leaves floating on the water and asked, "You mean, Warner Records want to buy UFO, and UFO is here to ask for help? Warner Records is an international big company, and Peng Guohua really respects me."
Deng Yimin said: "The main markets of Chinese-language records are Hong Kong, Macao, Taiwan, Nanyang, and the newly emerging mainland market. The Hong Kong, Macao, Taiwan and Nanyang markets have been divided up. Although the mainland market is born, it contains unlimited potential. If it grows bigger, it can even exceed the total of other regions. Boss, you and Ms. Ye have gone very early. Xiongfei Records were founded in the mainland a few years ago. The sales channels of provincial cities across the country are already very mature, and the second-level distribution network is also being improved. This is far better than Warner Records, which has just entered the mainland business."
After detailed explanations by Deng Yimin and Ye Zipei, Kang Jianfei had previously known Peng Guohua's purpose.
Kang Jianfei knew that UFO Records would acquire part of its equity by Warner Records next year and would be swallowed up step by step in the following years. But he took it for granted that UFO Records was merged by Warner Records because of Taiwan's economic recession and the recession of the record industry.
But the fact is just the opposite. Taiwan’s record industry is in its most prosperous era. UFO Records is a forced acquisition by Warner in the future.
This matter starts from the 1980s.
Many things in Taiwan are based on the "resolution" in 1987 as the turning point. Political, economic, and social are all the same. The record industry based on music culture is also based on this, which is very different around 1987.
Before the lifting of the strict discipline, Taiwan's record industry was strictly controlled by the authorities, just like the mainland. Overseas companies were unable to conduct business directly on the island, and their products needed to be manufactured, distributed and sold by Taiwanese companies. This is the so-called "agent system".
For example, Kang Jianfei’s Fengxing Records Company was originally an agent of Haishan Records to release records to Taiwan. Later, the agency was replaced by UFO Records.
Because of the existence of the "agent system", many powerful international record companies cannot directly enter the Taiwan market, and Taiwan local companies that have obtained the agency rights of international record companies have grown rapidly. Feidian is one of them, which has the agency rights of large companies such as Warner Records in Taiwan, and also has the agency rights of small and medium-sized companies such as Fengxing Records.
But after the lifting of the strictness in 1987, everything changed - the Taiwan authorities gave up the control of the record industry.
At this time, the international record industry has basically completed group integration. Five large record groups dominated the global record industry. They have abundant funds and are invincible for a while. Under such circumstances, international record manufacturers have advanced to the Taiwan record industry stage.
The five major companies established their own Taiwan branches by acquisition, merger, and reclaiming agency rights to directly operate their business. A typical example of this is that in 1989, Polykin directly reorganized Qifei, merged into related businesses of Colin and other companies to establish Polykin Taiwan branch, and Baida and BMG took back the agency rights of Rolling Stone to establish their respective Taiwan branches, etc.
As the two most original record companies in Taiwan, Rolling Stone and UFO are suddenly facing the pressure of five major international record companies. They only have two choices: lie down and obey, or fight hard.
Rolling Stone Records showed its domineering spirit. It chose the most direct and violent way of fighting. In just a few years, it opened branches in countries and regions such as Singapore, Malaysia, Thailand, Japan, South Korea, Indonesia and Hong Kong, and expanded its overseas territory frantically, fighting head-on with international record companies where all Chinese records can be sold.
Rolling Stone Records' way of fighting was too bloody and seemed to be glorious, but with insufficient funds, it was so big that it was already dying by the end of the 1990s and became a weak giant. If it weren't for the successful entry of the mainland market to make money after 2002, Rolling Stone Records would have died of excessive bleeding.
The managers of UFO Records are more conservative. They do not have the momentum of rushing forward like Rolling Stones, so in another time and space, it took Warner Records nearly 10 years to eat it.
The problem facing UFO Records now is that a large part of the company's profit comes from Warner Records' agency business. At the same time, the distribution of UFO Records in Nanyang also depends on Warner Records' channels.
Now Warner Records is threatening to take back the agency rights and terminate cooperation, and demands to invest in UFO Records. If UFO does not agree, the company's profit points will be cut off by more than half in an instant.
If it is a small company or other partner, it is absolutely fine to agree to invest, but the large-scale expansion of the five major record companies around the world has allowed all musicians to see their faces clearly. Once Warner is promised to invest in the UFO, then in the next few years, the UFO will be eaten up by it step by step, which is also the ending of another time and space UFO record.
"The differences within the UFO are very serious. Although everyone knows that accepting Warner's shareholding is a poison to quench thirst, they are reluctant to throw away the huge profits in their hands," said Deng Yimin. "Peng Guohua advocates termination of cooperation with Warner. The previous few times he came to seek comprehensive cooperation between UFO and Fengxing Records in Hong Kong and Nanyang. However, if you want to recover the huge losses of breaking up with Warner, you must develop your mainland business."
Kang Jianfei thought for a moment and asked, "Then why did he meet me? Just talk to you and Zi Pei in this way."
Ye Zipei smiled and said, "He hopes you can invest in Warner."
"I suffered huge losses and refused to invest in Warner. I took the initiative to ask me to invest in the shares. What are the shareholders of the UFO?" Kang Jianfei said with a funny look, "Are they not afraid that I will swallow the UFO record in the end?"
Deng Yimin said: "You don't have the strength to eat them, at least not now. Compared with the world's five major record companies such as Warner Records, Fengxing Records is like a child, and UFO Records is also a child. The current situation is that two children have to join forces to fight with the strong man. This is a win-win situation for us. To be honest, Fengxing Records is also under increasing pressure. The five major record companies are developing too fast in Asia. If this continues, Fengxing Records will survive in Nanyang more and more difficult."
Kang Jianfei asked: "Their internal opinions are unified?"
Deng Yimin said: "It has not been completely unified yet. Although they both agreed to cooperate with us, there is another voice. I hope that Fengxing Records and UFO Records can exchange shares."
Kang Jianfei asked directly: "Which company is more profitable, are we and them?"
Deng Yimin said: "The UFO Records are now much more profitable than ours, but once the cooperation with Warner is terminated, they will be greatly damaged."
Kang Jianfei asked, "What do you think?"
Deng Yimin said affirmatively: "Agree to exchange shares, we can even suffer a little."
Kang Jianfei nodded: "Okay, just operate as you want. After the plan to exchange shares is completed, just show it to me."
Ye Zipei said: "After Fengxing Records and UFOs reach their intentions, Xiongfei Records can follow up."
Kang Jianfei thought for a while and said, "There is also the case in South Korea, where Rolling Stone Records has already opened a branch there. After the UFO cooperates with us, South Korea's record business should also be launched. From now on, the mainland, Hong Kong, Taiwan markets will be the Iron Triangle base, the Korean market is our back garden, and the Nanyang region and the Japanese market are battlefields. After all, the five major record companies are international companies. When necessary, we can cooperate with Fang Yihua's Huaxing Records, and they also need allies in the Nanyang market."
The words Kang Jianfei just said are considered to be the development program of Fengxing Records, UFO Records and Xiong Fei Records in the future. He only needs to establish a general direction, and the specific operation depends on Deng Yimin, Ye Zipei, and Taiwan's Peng Guohua, Wu Chuchu and others.
After the three reached an agreement, Kang Jianfei came out to meet Peng Guohua and served in Liyuan with wine.
Peng Guohua has long hair, and his first impression is that he is an art-oriented person and has the style of a literary youth. If he doesn’t know the details, he can’t guess that he is the boss of a record company.
When Peng Guohua learned that Kang Jianfei had agreed to exchange shares of the two companies, he was overjoyed. This condition was enough to make him go back and convince other shareholders of the company.
In fact, the main reason why Peng Guohua chose Kang Jianfei to cooperate rather than to find Huaxing Records was that he was attracted by Kang Jianfei's relationship and sales channels in the mainland. In addition, the influence of Oriental Culture and Entertainment Group in South Korea is also a reason.
"What does Mr. Kang think about the prospects of the mainland record market?" Peng Guohua asked.
Kang Jianfei said: "In the past few years, a group of singers born and raised in mainland China have produced a group of singers, which are very popular among the public. The sales of the best ones are in the millions. In the past two years, new changes have been made. Even the Northeast and Northwest like to listen to Hong Kong and Taiwan songs, which is the perfect period we have entered."
Peng Guohua clapped his hands and said, "I think so too. I will rely more on Mr. Kang and Miss Ye in this regard in the future."
After Peng Guohua said that, he raised his glass and respected Kang Jianfei and Ye Zipei's wine.
The courtesy of the mainland market to Hong Kong and Taiwan singers in the 1990s was so servile that a third-rate Hong Kong and Taiwan singer went to the mainland to sing two songs casually, and the appearance fee was at least 50,000 or 100,000. The round-trip air tickets were reimbursed - most workers in mainland China only had a monthly salary of a few hundred yuan.
When Hong Kong and Taiwan celebrities go to the mainland, they don’t sing, but go to grab money. The microphone is a machine gun.
Of course, piracy is still the biggest problem, and this thing cannot be solved at all.
Christmas is coming soon, and Kang Jianfei's energy will inevitably be transferred to the movies. However, after the Lunar New Year, the three-party cooperation between UFO Records and Fengxing Records and Xiong Fei Records will basically be launched, and he will have to go to the mainland and Taiwan.
Isn’t it just the five major international record companies? When I go to the Chinese-speaking areas, I will ride it with the dragon and I will lie down with the tiger. There are some classic Chinese songs in Kang Jianfei’s pocket.
The Little Tigers are now popular in the Chinese band. Although the girls team has been formed, they have no reaction. Perhaps they can create a shooting combination in advance and pick a few beautiful girls to move that way. It is definitely a killer weapon for the young people today. The Happy Girls Group created by Kang Jianfei was once very popular, and the Taiwanese market was gradually silent because of the ban by the Taiwan authorities.
When Peng Guohua left, Kang Jianfei deliberately took care of him and asked him to find a few more beautiful girls for him to spare, and he could always choose three suitable ones. (To be continued, please search Piaotianwen, the novel is better and faster!
ps: This chapter is a wedding gift for Tianyi, please check it out.
Chapter completed!