Chapter 1354: Market importance

"Right, Feng Zong, there is one more thing, I always wanted to ask. %Le%%%し Before you are sure, those companies will not withdraw their money, they will definitely accept the compensation. Why is this?" Road.
Feng Yu simply explained: "Because of the market. Whether a company can make money, the simplest way to judge is whether there are more products sold, that is, how much sales are sold."
"As for the other, it is also very important, such as cost, etc., but in the end, the company makes money by relying on product sales. This product can be visible, such as a car. It can also be invisible, such as design concepts. These must be sold before they can be exchanged for money."
"How much money to make, not only to see the sales of the product, but also to see the profit margin. For example, the rainy mobile phone now pushes a 399 yuan rb mobile phone, the sales volume is very high, one month's sales, worthy of a previous product Annual sales, but the profit margin is very low, and the overall profit is not necessarily too high."
"While the sales of the products are determined, there are prices, quality, popularity, sales channels, etc., and the price is the most important one. The quality, popularity and sales channels of the products are more important. Slightly weaker."
"We know the popularity, it is very understandable, that is, how many people know the brand, how many people think that this brand is trustworthy, is a brand-name product. And the sales channel mainly reflects the market."
"We always say the market economy, which has already highlighted the importance of the market. The market is a place for trading. But today's companies always count a data called market share. The so-called market share Rate, which is the proportion of a product in the market for similar products."

We will find that those companies that occupy a high market share have very good incomes. When they become the number one market share, the brand’s popularity will be greatly enhanced, and with more profits, Better publicize products and better improve product quality, thus forming a virtuous circle."

In the end, this market share is about the sales of products. But a market is likely to be saturated. For example, if the city has only 300,000 people, then you will ship 500,000 bicycles, even if the price falls below the cost. It is also difficult to sell out, because few people will buy two cars, not to mention that many families have small cars, do not need bicycles at all, and some families choose public transport or bicycles.

So what if most of the 500,000 bicycles can’t be sold? You need to develop new markets, such as neighboring cities, such as other surrounding areas. A brand that has developed for many years will inevitably touch the saturated edge of the market. Saying that the market is completely saturated, there is always a new generation, but sales growth can no longer meet the increase in production, then it is necessary to open up new markets."
"Africa, in the impression of many people, is a poor region. But the world's top car companies such as Mercedes-Benz and Volkswagen are all focusing on developing the African market. Because there is a market that is almost blank, once occupied, the future African economy. When they develop, they will be able to reap a steady stream of profits."
"For example, when the mobile phone just entered the Chinese market, although the economic situation in China is still not very good, the rich are very few, but some of them are already rich. Through their driving, people have noticed the mobile phone. At that time, it should be called Big Brother. While others have money, they will also think about buying big brothers, and the most likely is to buy them the same."
Feng Yu heard a joke in the past, saying that a coal boss went to Beijing and offered a Jaguar sports car, but in a few days, he bought another Mercedes. why? Because no one knows Jaguar, Mercedes-Benz is considered a luxury car, which is the brand occupying the market.
"And Ericsson, Motorola Lola, etc., which originally occupied the Chinese market, earned a lot of profits from them. At that time, their development was also very good. Later, with our stormy mobile phones and Aihua mobile phones, their products sold. As the festivals decline, profits naturally decline. Now, Ericsson has to cooperate with monks and nuns to maintain the mobile phone business."

Why are some island companies that have been taken away from the Chinese market, why have they always wanted to re-enter the Chinese market? Because our market is big and more advantageous than Africa. Our economy is developing fast, then the spending power will be fast. With the improvement, the market potential will become bigger and bigger. How many mobile phones can be sold in a year, and now the sales volume in one month is much more than that at that time."

When you occupy a higher proportion of the market, you can get the most benefits and get the most profit when the market breaks out. The market share increases, not only increases these cash income, but also includes intangible assets, such as brand value. Etc. For example, listed companies, even if the income is not high at this time, but the market share is the highest, then the stock price will soar, because investors believe that companies that control the market will certainly make more money."
"The island countries that used to be economically collapsed more than a decade ago, they began to vigorously develop our Chinese market. During that time, did we find that the relationship between the island countries and us has eased a lot~EbookFREE.me~ would also like to give us Investment, and willing to help us improve some technologies, and even provide us with some assistance, but correspondingly, we need to provide some convenience for the import of their products."
"At that time, our electrical appliances, machinery, etc., many of them were products of the island countries. Even at that time, people thought that the products of the island countries were the best. If the domestic enterprises were not developed, the market would be snatched back, then our country would The market will be flooded with various island products, which will seriously inhibit the development of our domestic enterprises. The longer the time, the harder we will develop."
"They are in our market, and relying on the rise of our Chinese market, the island economy has been alleviated. This has also made countries see how high the potential market is, and how great the potential is. Enter us. Huaxia market does not necessarily make money, but if you don’t enter, you will never earn this money."
"Any company can't say to give up our high-quality potential market in China. See how many people we have here. How fast the economy has grown these years, you know how huge the potential is."
"So if they don't want to give up our market, then they will not divest and don't dare to withdraw. And how can normal enterprises give up our market? Even if they become a joint venture from sole proprietorship, they still have Sales channels allow their products to enter the Chinese market."

So when we talk to foreign investors in the future, we should be harder because we control one of the best markets in the world!

When he heard Feng Yu’s words, Bao’s eyes were getting brighter and brighter, and he made some kind of decision in his heart.
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