Chapter 612: MP Three Shuffle

With the announcement of MP4's MP4 listing, more manufacturers announced their MP4's listing, this product began to be noticed by more and more consumers, and generated interest.
Correspondingly, the price of MP3 fell again, and the profit margins of all manufacturers have dropped a lot.
Among them, the small manufacturers that bought the patents and produced the most stifled.
Originally, the profit margin of MP3 was very high. They spent a high price to purchase patent licenses, and each production cost more than 100 yuan, but they still have a net profit of more than 100 yuan. Dealers and retailers There are also tens of dollars in profits, no one thinks there is any problem.
But when the price of MP3 dropped by two hundred yuan, these small manufacturers could not bear it. Although the retail price fell, everyone's profits fell, but the retailer had the right to sell.
Your price is not competitive, the brand is not competitive, and the quality is not competitive. Why should I sell your products?
Sell ​​those big brands, sell well, earn more, and don't have so many after-sale troubles, why not?
Small manufacturers have no choice but to continue to cut prices and give retailers and distributors more profits, so their profits will be constantly compressed.
Even many small manufacturers counted them, and they produced an MP3 for sale, leaving only a gross profit of less than fifty yuan. After digging up other costs, there is no profit at all.
At the same price, those large manufacturers with patent rights can still guarantee a gross profit of more than 100 yuan. Even the production cost of the other party may be lower and the profit will be higher.
It didn't take long for MP3 to become popular, and no one expected that the time to reshuffle came so early.
An industry from prosperity to prosperity will eventually usher in a reshuffle. After the big waves have washed the sand, it is the industry elite that remains.
Obviously, those small businesses that rely on buying patented technology from other companies will not be elites.
This is also the sorrow of small and medium-sized enterprises. They do not have the pricing power and the power to set standards, and they can only passively accept the changes of the rules.
If it is okay within their capabilities, once they exceed their capabilities, then the result will be bankruptcy.
...
Looking at the industry survey report in his hand, Zhang Yang is nearing the end of the fourth quarter. Products such as MP4 are emerging. More and more companies are joining, and the quality is also uneven.
In contrast, the number of companies and brands in the MP3 industry has stopped growing, and even decreasing in some regions.
Obviously, some small businesses can't handle it. They will either be converted to MP4, or they will quit, or they can only go bankrupt or be annexed by others.
The gap in technology sets a natural threshold. Wealth can naturally make up for it, but can rich enterprises be small businesses?
"Huh, our old opponent didn't do MP3 or MP4?" Zhang Yang looked at Duan Yongping with some surprise.
"Yes. Now Xiaobawang still makes 8-bit game consoles and computer learning machines, and then it makes home appliances, mainly kitchen appliances."
"This time, Xiaobawang did not purchase our patents, nor did it buy from other companies, nor did it infringe directly on production, I heard that their kitchen appliances sold well."
Duan Yongping is also very satisfied with Xiaobawang’s actions. If Xiaobawang dares to imitate their products, he will take up the weapon of law.
"Yuxing did MP3, but it was sold in general. Jin Yuanyuan didn't do it. He focused on electronic dictionaries and translators. Although his market share is not high, he can make some money."
"However, there are many schools and enterprises in China that have made MP3 and MP4. The quality is relatively general. It can be seen that they are in a hurry, but the price is relatively cheap."
"In fact, many technologies can be bypassed. They also have enough R&D personnel to bypass some of our technology patents. Whether they are the same as those of foreign brands, we don't know."
"Currently in the domestic market, our MP3 market share is about 40%, Wan Yan's about 30%, of the remaining 30%, foreign enterprise brands account for about 10%, and other domestic brands account for 20%."
"In terms of MP4, Wan Yan accounted for 45% of the share, we accounted for 35% of the share, foreign brands accounted for 10%, and other domestic brands accounted for 10%."
"However, many small domestic MP3 manufacturers have low profit margins. Some even because of high production costs and patent fees, they can't persevere for too long. It is estimated that they will withdraw from the industry within a year. "
Zhang Yang took a cup of tea and drank tea: "Are there many companies authorized by Wanyan? Haven't you thought about lowering the licensing fee and giving those companies some living space?"
"I passed with General Manager Jiang, as if they were preparing to re-sign contracts with some key companies to ensure that some MP3 products occupy the low-end market, and even plan to license MP4 patents to those companies."
"Are we going to talk to Mr. Jiang about this, this too early authorization is bad for us."
Zhang Yang waved his hand: "There is no need, you do not authorize, they will also find other companies to buy, or even directly produce, when you sue them, maybe some people have made enough money to run."
"Just arrange people to keep an eye on it, and don't have products that counterfeit our brand. Although our market value has fallen, but the brand value has increased a lot, this must be maintained."
"By the way, we must pay close attention to those foreign brands, and pay attention to that they may find partners in the mainland to produce OEM."
Just like Xiao Shenyou GBA, it avoids the high tariffs of imports and sells its products at the same time, and can obtain some profits. Nintendo's approach is very smart, otherwise it will definitely not get so many sales in the Chinese market.
Although this sales volume ~EbookFREE.me~ is still only a fraction of Zhiduoxing, compared with the Schneider and Sega Bandai, it has already earned enough.
At present, there are many OEM companies in China, including the world's top Fushikang. If foreign brands can circumvent high tariffs and publicize it, many people will still like it.
Before Zhang Yang’s rebirth, there were still many people who were obsessed with foreign brands, thinking that the quality of foreign brands was good, and that the domestic ones were small factories, and the technology was not good.
Even if foreigners like Huaxia's products very much, they also think that it is a low-cost competition, which is completely taken for granted.
In the past two years, the popularity of the products of the island countries has started to decline, but it is impossible to say when they will resurrect. We must let everyone know that all the products produced by Zhiduoxing are the best in the industry, and foreign brands are not comparable to them.
After communicating with Zhang Yang about the new MP4 sales, Duan Yongping finally spoke about topics that interest Zhang Yang.
The Zhiduoxing music phone has passed the test and is ready for promotion and production!