Chen Xiao was not surprised at all when he received a call from Zhou Linghua.
MP3 is inherently a fast-moving consumer product, and the technical difficulty is not high. It won’t be long before products costing one to two hundred yuan each will be available.
Lingyue's products are indeed better than Lanco's in terms of appearance and quality.
But in the face of cheapness, none of this matters.
Chen Xiao said: "Where are you? I'm coming to find you."
Zhou Linghua said without saying a word, "Why don't you give me your address and I'll come and pick you up."
Zhou Linghua took Chen Xiao around the various markets in Jiangzhou City.
Linghua was complaining all the way last week, "I don't know why, but Netac's MP3 Life appeared overnight."
The two walked into Jiangzhou Department Store.
Perhaps stimulated by Yuedong MP3, Jiangzhou Department Store has made great efforts to adopt a large number of MP3 players.
There are high-end brands such as Sony and low-end brands such as Netac.
Moreover, Langkeda's advertisement is very eye-catching - Langkeda MP3, Sony technology!
The word "Sony" is very big, I'm afraid others can't see it.
Chen Xiao frowned, which showed that Netac and Sony had already cooperated.
Sony may have shared its MP3 decoding technology and battery technology with Netac.
At the same time, Netac itself has an absolute advantage in flash memory.
The strong alliance between the two parties can not only maximize their technical advantages, but also save costs to the maximum extent.
At the same time, Sony and Netac also took the path of high-low brands.
Those with better financial conditions and who care more about brands may choose Sony MP3.
But for those who pay attention to cost-effectiveness, the cheap Netac uses Sony's technology after all, which sounds relatively high-end.
Chen Xiao took a look at the sales price of Netac. The MP3 with 128 MB of memory was sold for just 400 yuan.
Some sellers even mark the price to about 390 yuan.
You can buy an MP3 player for three to four hundred yuan, which is a good thing that you couldn't even think of in the past.
Even though this kind of MP3 player feels very cheap, as long as it can listen to music, it is enough for many consumers.
From this point of view, Netac has really reduced costs after cooperating with Sony.
Well now, Lingyue MP3 wants to be famous but not famous, and wants a brand but not a brand, but Lingyue MP3 is very passive.
Unless you are a consumer who particularly likes the appearance of Lingyue MP3, you can spend less money to buy Netac, or spend more money to buy Sony, which has a stronger brand appeal.
Moreover, Sony has just launched a new MP3, priced at 1,199 yuan. Its appearance is very similar to that of Lingyue, and it is also very thin and light.
If you say Sony copied Lingyue, it's not exactly the same.
This is very troublesome.
Zhou Linghua broke into a cold sweat when he looked at such a fiercely competitive market environment.
As the prices of overseas CNC machine tools decrease, the living space of domestic CNC machine tool factories is getting smaller and smaller.
In addition, the profits from CNC machine tools were not very large, so Zhou Linghua almost put all his wealth and life on Ling Yue.
I didn’t expect that in just over a month, so many competitors would appear on the market.
Chen Xiao and Zhou Linghua just stood there in Jiangzhou Department Store.
Manager Zhang from Jiangzhou Department Store saw Netac's sales representative off.
The two parties have just concluded a business deal. If Netac's sales are good, Jiangzhou Department Store will get the goods at a lower price.
This means that the profits of department stores will be even greater.
Manager Zhang also saw Chen Xiao and Zhou Linghua. He smiled at them without saying hello.
This smile was very proud, and it seemed to tell Chen Xiao and Zhou Linghua that it didn't matter that you didn't choose to sell the product in Jiangzhou Department Store. There are many similar products in the market.
Looking at Manager Zhang's eyes, Zhou Linghua felt unhappy for a while.
After leaving Jiangzhou Department Store, Zhou Linghua said a little depressed: "It seems that Netac's production capacity is very strong. Now he is probably distributing goods all over the country. There is indeed a big gap between us and him."
Zhou Linghua also suggested: "Do you think it is necessary for us to expand the coverage of our products? Can the products be distributed including Jiangzhou Department Store?"
Chen Xiao waved his hand and said: "The core competitiveness of the product is not strong. Even if you put our products on the same counter as Netac, the other party will still choose Netac."
Zhou Linghua said speechlessly: "When we asked Sony for lithium batteries, they refused to sell them, which only increased our costs."
"Also, Netac originally produces flash memory, and the cost is much cheaper than what we import from overseas."
"Calculated in this way, their costs are of course cheap, and we are completely uncompetitive."
Zhou Linghua was a little frustrated, "I tried it over and over again, but I still can't defeat others."
Zhou Linghua knew very well that the only way to be competitive was to lower the price of Lingyue.
But to lower the selling price, we must first reduce the cost.
So far, except for MP3 decoding technology and chips, the core technology of lithium battery storage is in the hands of other companies.
The cost of Lingyue remains high.
Zhou Linghua looked at Chen Xiao and found that Chen Xiao was not anxious at all.
Zhou Linghua knew that Chen Xiao had just received 3 million meters of financing and that he owned Yuedong Internet. The sales volume of MP3s did not have much impact on him, so of course he would not be anxious.
Zhou Linghua also had some confusion. A year ago, Chen Xiao was just a senior high school student. When they first cooperated with him, he helped Chen Xiao at first.
I didn’t expect that Chen Xiao would grow so quickly in just one year.
Chen Xiao said: "We have begun to produce lithium batteries. The energy density is much higher than Sony's lithium batteries, and the size will be much smaller. Of course, the capacity will be much larger for the same volume."
"If nothing else happens, lithium batteries will be available next month. This will greatly reduce our costs."
"Really?!" Zhou Linghua was overjoyed.
The cost of lithium batteries accounts for a large part of the cost of Lingyue MP3.
If lithium batteries can be sufficiently produced by themselves, then according to the current sales volume, Lingyue's profits will increase significantly.
Zhou Linghua asked: "Then should we sell at a lower price?"
This point was rejected by Chen Xiao.
Brand power is much more important than profit.
Even if you sacrifice a little profit, you must maintain the brand power of your product.
The MP3 market is so big, it will disappear sooner or later.
Competing with other companies on MP3 is a complete waste of time.
Chen Xiao looked up at Zhou Linghua and said, "Have you ever thought about making our own mobile phone brand?"
Zhou Linghua didn't hear clearly what Chen Xiao was saying for a while, "What brand are you talking about?"