Chapter 1354: The Importance of the Market

"By the way, Mr. Feng, there is one more thing I've been wanting to ask. Before %Le%Wen%し, you were sure that those companies would not divest their capital and would admit compensation. Why is that?" Commissioner Bao asked curiously. road.

Feng Yu simply explained: "Because of the market. The easiest way to judge whether a company can make money is whether it sells a lot of products, that is, to see how much it sells."

"Others are also very important, such as cost, etc., but in the final analysis, the company makes money by selling products. This product can be a visible object, such as a car, or it can be invisible, such as design concepts and so on. These have to be sold to be exchanged for money.”

"How much money you make depends not only on product sales, but also on profit margins. For example, a 399 RMB mobile phone currently promoted by Fengyu Mobile has a very high sales volume. The sales volume of a month is equivalent to the previous product's one Annual sales, but the profit margin is very low, and the overall profit may not be too much higher."

"However, product sales are determined by price, quality, popularity, sales channels, etc., and price is actually the most important one. Product quality, popularity, and sales channels are more important. Among these, quality is the most important factor. A little weaker."

"The popularity we talk about is easy to understand. It means how many people know about the brand, and how many people think that the brand is trustworthy and a brand-name product. The sales channel mainly reflects the market."

"We always talk about the market economy, which actually highlights the importance of the market. The market, to put it bluntly, is a place for transactions. But now companies always count a kind of data called market share. The so-called market share Rate, that is, the share of a product in the sales of similar products in the market."

"We will find that those companies with a high market share have very good income. When they become the first in the market share, the brand awareness will be greatly improved. With more profits, they can Better publicize products, better improve product quality, thus forming a virtuous circle.”

"In the final analysis, the market share is still measured by product sales. But a market may be saturated. For example, if the city has only 300,000 people, then you ship 500,000 bicycles, even if the price is lower than the cost. , and it is difficult to sell them all, because few people will buy two, not to mention that many families have cars and don’t need bicycles at all, and some families choose public transportation instead of riding bicycles.”

"Then what if most of the 500,000 bicycles cannot be sold? We 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 edge of saturation in the market. It is said that the market is completely saturated, and there will always be replacements, but sales growth can no longer meet the increase in production, so new markets must be explored.”

"Africa, in many people's minds, is a poor region. However, the world's top car companies such as Mercedes-Benz and Volkswagen are focusing on developing the African market. Because there is a nearly blank market, once occupied, the future African economy When they develop, they can reap a steady stream of profits."

"For example, when this mobile phone first entered the Chinese market, although China's economic situation was not so good and there were very few rich people, some of them were already rich. Through their drive, people noticed the mobile phone , At that time, it should be called Big Brother. And when other people have money, they will also want to buy Big Brother, and the most likely thing is to buy the same one as them.”

Feng Yu heard a joke in his previous life that a coal boss went to Beijing and brought a Jaguar sports car, but after a few days, he bought a Mercedes. why? Because no one knows Jaguar, Mercedes-Benz is considered a luxury car. This is the brand occupying the market.

"And Ericsson, Motorola, etc., which initially occupied the Chinese market, made a lot of profits from it, and their development was also very good at that time. Later, with our Fengyu mobile phone and Aihua mobile phone,

The sales of their products have been declining, and their profits have also been declining. Now Ericsson has to cooperate with Sunny to maintain the mobile phone business. "

"Besides, why do some island country companies that we have expelled from the Chinese market always want to re-enter the Chinese market? Because our market is large and has more advantages than Africa. Our economic development is fast, so the consumption capacity will be improved rapidly. The market potential will become bigger and bigger. At the beginning, how many mobile phones could be sold in a year, but now the sales volume in a month is much higher than that at that time.”

"Occupying a higher proportion of the market will allow you to get the greatest benefits and the most profits when the market breaks out. The increase in market share will not only increase these cash incomes, but also include intangible assets, such as brand value, etc. etc. For example, listed companies, even if their income is not high at this time, but they have the highest market share, their stock prices will skyrocket, because investors believe that companies that control the market will definitely be able to make more money.”

"The economy of the former island country collapsed more than ten years ago, and they began to vigorously develop our Chinese market. During that time, did they find that the relationship between the island country and us has eased a lot, and they are willing to invest in us and help us? Improve some technologies, and even provide us with some assistance, but correspondingly, we have to provide some convenience for their product imports.”

"At that time, many of our electrical appliances and machinery were products from island countries. Even at that time, people thought that products from island countries were the best. If domestic enterprises hadn't developed and snatched the market back, our country would have The market in our country will be flooded with products from various island countries, which will seriously inhibit the development of our domestic enterprises. The longer it takes, the harder it will be for us to develop."

"They are for our market, and relying on the rise of our Huaxia market, the island country's economy has been relieved. This has also made all countries see how high-quality the Huaxia market is and how huge the potential is. Enter our You may not be able to make money in the Huaxia market, but if you don’t enter, you will never be able to make this kind of money.”

"It is impossible for any company to give up our high-quality potential market in China. Just look at how many people we have here and how fast the economy has grown over the years, and you will know how huge the potential is."

"So if they don't want to give up our market, they won't withdraw their investment, and they dare not withdraw their investment. How can normal enterprises give up our market? Even if they change from a sole proprietorship to a joint venture, they still have Sales channels can allow their products to enter the Chinese market."

"So when we negotiate with foreign investors in the future, we should be tougher, because we control one of the best markets in the world!"

Hearing Feng Yu's words, Commissioner Bao's eyes became brighter and brighter, and he also made a certain decision in his heart.

...

Book friend group, May 20, 98, 468, welcome to the group (To be continued.)