Chapter 1409 Even Thinking About Life Is Not Easy

Liu Chuanzhi has been very busy with his work recently, mainly because Lianxiang’s computers have resisted product challenges from island countries, South Korea, Europe and the United States, or with the help of the country, but at this time, computer brands in Baodao began to enter the Chinese market on a large scale.

At this time, the relationship between Huaxia and Baodao was eased, and the market was opened to Baodao. The original plan was to communicate with each other, realize economic integration, and assimilate Baodao.

But I forgot that where Huaxia is strong, Baodao is also very strong. On the contrary, because Baodao has some advantages in importing, it is more competitive than Huaxia products in many products.

Among them, computers, especially laptops, have been hit the hardest.

The representatives of this are three brands, ASUS, Acer and Mingqi. Acer and Mingqi are still the founders, or it means that Asus was a subsidiary of Acer, and it was separated later.

Among them, ASUS is the world's top motherboard supplier, accounting for more than a quarter of the world's motherboard share. Since the beginning of the computer, the sales of notebooks have continued to rise, and the momentum has been very rapid.

Acer and Ming Qi are slightly worse, but they are also doing well, at least not worse than the manufacturers in island countries and South Korea. The production and sales of notebooks also rank among the top in the world.

As for China, there is another relatively large computer brand called Shenzhou. This company mainly produces notebook computers, but the price is very low. The price of the computer with the same configuration is lower than even thought.

Lianxiang itself is one of the best in the world by virtue of its huge production and sales volume, and constantly reducing costs, but I did not expect that the cost of this Shenzhou is even lower.

After Liu Chuanzhi researched, he finally understood why the cost of Shenzhou was so low.

First of all, China is not completely assembled. Piecing and assembling belong to the most downstream, that is, the bottom of the food chain, with the lowest profit, and it is not easy for brands to do it.

For example, Intel and Chaowei belong to the upstream, and they have a strong grasp of research and development, design and production, but the sales of their own brand computers are also very general.

There are also mid-stream manufacturers, such as Dongzhi and Sixing, which produce main accessories, and then some of them are researched and developed, and some of them are purchased and assembled.

There are also top hardware manufacturers such as Eagle Weida, who gave up the opportunity to make their own PCs and concentrated on making their superior products, which can also be said to be the main accessories of computers.

Among them, ASUS belongs to the upstream manufacturers. They are one of the leaders of the world's motherboard manufacturers. Their cost can be similar to Lianxiang, which is not too surprising to Liu Chuanzhi.

But in China, the technology should be much worse. Even if you want to be a medium, you can independently develop some of the main accessories, and then rely on the advantages to produce computers. They also need to have superior products.

Shenzhou has no advantage in any major computer accessories, and there are no products that can be handed out. As for patents, there are some patents, but those patents are not worth coveting, let alone compare with Lianxiang.

So how does China control costs? One is that workers in their factories are paid less, which reduces production costs.

Furthermore, they do not have direct-operated stores, they are all franchises, and during the expansion period, the franchise fee is also very low, allowing their franchised stores to expand rapidly.

And the boss of Shenzhou drew a big cake for all the employees, and used the Lianxiang Group as a template to draw a cake for the employees, telling them that the current hard times will soon pass, and in the future, everyone will have original shares and the company will go public. After that, everyone was at least a millionaire, so now their employees' wages are very low, and their benefits are far from being on a par with Lianxiang Group.

As for the listing, Liu Chuanzhi believes that it is impossible for China to succeed in an IPO in a short period of time, because their books do not meet the listing requirements. Furthermore, the review of IT companies in China is relatively strict, and almost no investors think that China will be able to Stand firm, may be short-lived, and will soon be acquired by other manufacturers.

The last point, which Liu Chuanzhi finds very interesting, is that Shenzhou relies on its geographical advantages and is close to the port.

So they often import some leftovers.

What is tailgating, that is, some factories have produced products, but due to some reasons, orders have been cancelled, resulting in a backlog of products. Or some factories produced products that did not reach their expected sales, resulting in a backlog of products. There are also some reserved "losses", which are reasonable theoretical losses, but not so big in practice.

There are many reasons for the unloaded goods, but it is undeniable that the factory will be eager to dispose of the unloaded goods. On the one hand, it can clean up the inventory, prevent the warehouse from being occupied, and prevent the waste of these materials. On the other hand, the realization of the tail goods is also an income. Although this income is very low, it is unplanned.

And now, China not only buys some spare parts to assemble into its own notebooks, but also has a way to import the spare electronic components, and then produce its own accessories to assemble the computer. This is what China calls independent research and development. , they barely squeezed into the second echelon.

In the final product, the product quality cannot be effectively controlled, so Shenzhou's computers often break down, and even the repair rate is very high, but the cost can really be 40% lower than that of its peers!

What is the concept of 40%? Now the profit of notebooks is only 10%, and the profit of desktop computers is not more than 8%, and the profit is gradually declining, because more and more manufacturers, More and more companies are starting to lower their prices, and the costs of publicity, production, and sales are still increasing rapidly.

The most common notebook in China, the cost is also 20% lower than that of Lianxiang, so it has such a great price competitiveness. What others are mainly pushing now is a selling point, cheap!

You sell a laptop for 10,000 yuan, but I only sell it for 8,000, or even 7,000. Everyone's performance parameters are still the same. How will consumers choose?

Even if my after-sales service is not good, how much does it cost to repair a computer? What's more, although the quality is slightly worse, the repair rate is high, not too high. This high is only relative to other brands of notebooks, not even higher than the repair rate of some home appliances.

They also captured the psychology of many users who like cheap products. After all, this is still a notebook, not a desktop, and it looks high-end.

As a result, domestic notebooks have entered the mode of competition for hegemony by foreign powers. Lianxiang ignores other brands because it mainly targets manufacturers in Europe, America, island countries and South Korea, allowing them to quickly expand and steal a lot of Lianxiang Group’s share.

In the desktop computer market, there are more and more assembled machines, especially those merchants in the computer city.

The means they use is to tie-in some goods. Anyway, the customer can't see it, and if there is a problem, they can guarantee it.

The notebook and desktop markets are challenged at the same time, which makes Lianxiang Group quite passive. They are actively expanding to Europe and the United States, but they haven't won there yet, and the base camp has been broken by others.

Just in time, when Feng Yu proposed a tablet computer, he reminded him, why not make a laptop with slightly simpler functions? The price is even cheaper, coupled with Lianxiang's brand and certain publicity, it is bound to sell well.

It's just that he and Feng Yu have different opinions on how to market it.

...

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