Chapter 371 The Fastest Money-Making Project "Please Support with Monthly Tickets"
After Yan Company was acquired by Fan Wubing, it received a huge amount of funds and continued to expand. At this time, it has reached a monthly production scale of more than 500,000 units, and it is still growing.
The original leaders of the company never expected that under Fan Wubing's operation, the sales of DD DVD players would be so good. All the CCTV advertisements were Wanyan Company's DD advertisements, and other brands were simply unable to compete with them. Originally Companies that planned to enter Project D lost interest after seeing Wanyan Company's crazy expansion and merciless price reductions.
Everyone engages in projects to make money, but with the way Wanyan Company is doing it now, how much profit margin is there? After all, other manufacturers are not like Wanyan Company, which has mastered core technologies in all aspects of software and hardware, and has formed its own strong R&D capabilities to continuously design and develop new generation products.
If you just follow the trend, the profit margin will indeed be very small, and another very important point is that the advertising campaign of Fan Investment Group is really powerful. Their advertisements are overwhelming and dizzying. In addition to knowing I don’t know if there are any other brands of DVD players besides the Wanyan Company brand.
Therefore, under this situation, although some companies have launched their own D video players, the results are very poor. Except for some sales in some remote areas, in central cities they can only sell them at a reduced price at a loss. There is no market left.
Earlier research institutions and the media were very conservative in estimating the sales of D video disc players. They believed that the market capacity of about one million units a year was the most optimistic estimate. It is very likely that this kind of thing will not be available at all. It cannot reach this level. After all, it takes a certain amount of time to recognize a new thing.
However, the response from the market was beyond everyone's expectations. Although Wanyan Company's production capacity has reached 500,000 units per month, the market seems to have become a bottomless pit. No matter how many products come out, they can be digested immediately. This The company's sales staff felt a little crazy. It seemed that only by constantly urging the factory to work overtime to produce could they prevent themselves from running out of stock.
Experts and scholars at home and abroad have also conducted a lot of discussions on this wonderful phenomenon of Wanyan DVD players. The conclusion is that China's economy is in a period of rapid development, so the purchasing power of the people has been greatly improved. The improvement should be attributed to the huge purchasing power contained in the private sector.
It can be deduced from this that the bosses of the home appliance industry are a little excited, believing that the retaliatory growth of the home appliance industry will soon appear. The country wants to set off another round of home appliance sales frenzy. Upgrading will become the current sales trend of the home appliance industry. Landlord tone.
As for the actual situation, only Fan Wubing knew it best. This was all due to pirated DVDs!
Fan Wubing had previously discussed with Qiu Baohua about the production of pirated video discs. Moreover, Wang Shihan also participated in the cooperation with Qiu Baohua.
Two people each provide technology. One conducts underground production. These cheap pirated discs were sold throughout the country through Qiu Baohua's underground sales channels. A large number of pirated DVDs have paved the way for the promotion of DVD players.
With enough bullets. The sale of guns will naturally not be a problem. The bottleneck restricting the sales of DVD players was easily solved by Fan Wubing.
But Fan Wubing also warned Qiu Baohua to pay attention. Just don’t sell pirated DVDs to Hong Kong. Don't do it even if the profit is very high.
to this end. Qiu Baohua was a little confused. I also specifically asked Fan Wubing the reason for this.
Fan Wubing explained to him. The current source of pirated video content. Mainly two parts. One is from the original American blockbuster. The other one is from Hong Kong movies. These two parts of film sources form the basis for the existence of pirated video discs.
The market for large tracts of land in the United States is huge. And its global sales revenue is extremely lucrative. Domestic piracy has little impact on them. So you can piracy with confidence and boldness. But not so in Hong Kong.
The population of Hong Kong is only five million. If pirated DVDs are imported into Hong Kong without restrictions, the balance on which their various theater chains depend for their survival will be broken, and the basis for the survival of film companies will no longer exist. , in such a situation where there is no reward, naturally no one is willing to make movies anymore.
When Qiu Baohua heard Fan Wubing's eloquent speech, he was quite impressed. He felt that doing business with Fan Wubing was really cost-effective. It was easy to make money, and he could also learn a lot.
Now Wanyan Company's net profit is more than 100 million yuan a month, after tax. Fan Wubing's investment has been recovered long ago, and now it is just a money-making machine. But Fan Wubing was not stupid enough to blindly expand production. He set his sights on DD that was more suitable for Chinese users, that is,
Improve the machine's error tolerance and correction capabilities to a large extent and eliminate the use of pirated discs
Under this situation, Qiu Baohua also made a lot of money. His circulation of pirated discs was calculated as ten times the circulation of DVD players. It was at least five million copies a month, and one copy was four A profit of RMB 20 million is an income of 20 million yuan. Although there are some risks, for him who is used to doing risky business, this risk is simply not worth mentioning.
In fact, his job is really simple. He just needs to take over the master disc from Wang Shihan and then go back to his own production line to process it in large quantities. The plastic sheet that costs only a few cents becomes real RMB after being pressed. This feeling really makes Qiu Baohua feel a little self-inflated.
Fan Wubing's ideal is of course much greater than Qiu Baohua's. He is now planning to develop a DVD player development plan.
The initial specifications of DVDD were proposed in 1994. It is a new generation of standard storage technology recognized by the entertainment industry. Moreover, the computer industry has also responded very positively to it.
In the early 1990s, the American Film Industry Advisory Committee drafted a wish list representing the seven major Hollywood film production companies. One of the items was to record a standard length video program on a CDD, and to require higher image and sound quality than LD. It should be noted that the image resolution of D is very low, and the video performance alone cannot meet the above requirements. In view of the influence of Hollywood film and television groups in the world entertainment industry, hardware manufacturers have started new efforts.
At the same time, the MPEG-2 compression coding scheme was developed by the MPEG-2 working group in 1991. Under the same resolution, it has much higher compression quality than MPEG-1, with an average compression ratio of about one forty. However, if high resolution is used, the storage medium must have a larger capacity and a higher data rate, with a maximum of nearly 100b per second, while DD has only 100b.
The introduction of 10D was to take care of the usability of existing equipment and CD-D discs, and adopted the MPEG-2 standard. If the MPEG-2 standard is to be adopted, it is necessary to develop a larger capacity disc and a new reading and burning device, so the development of a large-capacity disc system has become the top priority.
Starting in December 1994, the camp led by Philips and Sony and the two major camps led by Toshiba and Time Warner began a battle over DVD-D specifications, and no winner has been decided until now.
However, Fan Wubing also knew that under the strong urging of American film and computer companies, it was only a matter of time before they reached a unified specification. At the last moment, Sony will make a major concession, giving up its own disc structure and agreeing to adopt Toshiba's double-disc docking structure, while Toshiba will compromise with Sony, which has rich C production and development experience, in some technologies such as data signal modulation and processing.
Seeing that the DVDD development standard is about to be formed, how could Fan Wubing not take a share of it? Although domestic companies are a bit weak, their own technical team still has advantages in developing DVD players. With the precedent of Wanyan's technical team developing D players, it is natural to enter the development of DVD players at this time. What they are waiting for is their standards to be released.
Regarding this issue, Fan Wubing had to ask Kevin to take action again. After all, it is very difficult to go deep into these companies to obtain technical information, so they can only hope for this hand of God.
However, on the surface, Fan Wubing still extended an olive branch to several large companies through foreign branches, using the monopoly position of the domestic and foreign disc player market as a threat, and demanded to participate in the work of formulating the DVD standard.
However, it seems that except for Philips expressing its interest in Fan Investment Group, other Japanese companies are gritting their teeth at Fan Investment Group. After all, Fan Wubing's sudden appearance has greatly affected their investment plans in the Chinese market.
If Fan Wubing had not appeared, Japanese companies could have gained many advantages in China, including the home appliance industry and the sensitive rare earth industry, as well as some other industries, but now, these industries can only make them drool.
Fan Wubing didn't care about these. He strengthened his cooperation with Philips and has partially participated in the DVD standard formulation plan. The market contained in it is huge. He has no reason to miss this opportunity. When the time comes, he will engage in piracy in China and cultivate his own DVD player industry chain.
As for helping foreigners sell patents, he has no interest in that.
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