Chapter 1720: The Most Powerful Sales Channel

Thomson thought they had a strong sales channel, so they announced their departure from the alliance this time, and they would not be in a weak position if they turned around to cooperate with anyone. It was even possible for Feng Yu and the others to come to them to form an alliance with them again.

In this way, they can raise higher conditions and let Thomson get the most benefit. Do you want to say that Thomson has not made money in recent years? Earned, and made a lot of money.

But all the money was used for dividends and fell into the pockets of those shareholders.

Now that Thomson is not making any money, they are unwilling to spend money to help Thomson tide over the difficulties, because after weighing it, they feel that it is not worthwhile.

To put it bluntly, it's all about profit. They felt that Thomson should be able to tide over the difficulties without taking out the money.

While they were contacting island country companies and waiting for Fengyu Electronics to come to them, more consumer electronics companies began to contact Thomson, intending to cooperate.

In this way, Thomson is even more convinced that after leaving the alliance of Fengyu Electronics, they can develop well and tide over difficulties easily. So when cooperating with other peers, they also put forward many harsh conditions, because too many companies want to cooperate with us.

However, the return they had been expecting from Fengyu Electronics and others did not happen. They found that Fengyu Electronics had many new partners in Europe.

These are not only the credit of Fu Guangzheng, but Kirilenko also helped some. Of course, as an important ally of Fengyu Electronics, Philips has also made great contributions.

Thomson still believes that this is just a bluff, at least in North America, a region where consumer electronics are very popular, there is no competition with Thomson.

And they have also learned that the main ones here are divided into the island camp, the South Korean camp, the European camp, etc. As for the North American camp? Well, North America's own consumer electronics brands, except for computers and mobile phones, are not ranked at all.

In their view, Fengyu Electronics can also cooperate with these low-end companies. Will the brands of computers and mobile phones cooperate with Fengyu Electronics? Cooperating with small companies is not beneficial to the expansion of Fengfeng Electronics, but will be implicated by these small companies.

At this time, the economic situation in North America is not good, too many companies have gone bankrupt, and such small companies are even less able to resist risks. Once they go bankrupt, they will not be able to pay for sales, and Fengyu Electronics will also suffer huge losses.

But they ignore an emerging sales channel, and it is very popular among young people. Young people are also the main buyers of consumer electronics.

Amazon, the world's largest online shopping mall, has a wide variety of online products, surpassing traditional hypermarkets. At this time, Amazon has 23 categories, and more than one million products are sold online.

Moreover, Amazon has acquired many online shopping mall companies in Europe, South America, and Asia in recent years, and its business has become more diverse.

And at the end of last year, Amazon began to provide outsourced logistics services for third-party sellers, which made them more popular with users, and many people also enjoyed this kind of shopping experience without leaving home.

Yibei is also a super e-commerce company. Although it is not owned by Feng Yu Company, Kirilenko is the major shareholder, and it can also become one of the great sales channels.

There are also many e-commerce companies, these are the sales channels that Feng Yu targets. This kind of sales channel is also a sales channel that has not been paid much attention for the time being.

But this kind of sales channel has a great advantage, that is, it can save the important cost of store rent, and make the profit margin of the product larger.

Then the price of the product can be lowered to attract consumers.

In America, Europe or Asia, e-commerce websites are all developing vigorously. Although many people are aware of the huge potential of this industry in the future, they also find it sad that they seem to be unable to find a breakthrough.

Because the pioneer of the industry has developed into a giant, occupying the vast majority of users,

There is very little room for development for them.

Unless they can find some new selling points to develop, the best result is to be acquired by these top e-commerce network companies.

At the beginning, Amazon and others only did book sales, and then gradually began to dabble in other industries. From books to toys, electronic products, software, to clothing jewelry, beauty supplies, home gardening, sports and outdoor, office supplies and consumables, and now even to the sale of mechanical parts.

Many of these businesses were not started by Amazon itself, but by some other e-commerce companies as a prototype and then acquired by Amazon.

With the help of Amazon's huge customer base and good reputation, these businesses will gradually become bigger. And Amazon's operating income, also in this case, is growing rapidly.

Consumer electronics are made by Amazon itself, and the word-of-mouth in this area has become even better after Amazon's own brand of electronic paper books are sold.

And Feng Yu is very sure that e-commerce will develop faster and faster in the future, which can be seen from Amazon's revenue growth in recent years.

In the past few years, it has grown at an annual growth rate of more than one billion US dollars, but this year's growth in the first half of the year alone can be seen. This year, Amazon's operating income is estimated to reach 15 billion US dollars!

But the net profit may be around one billion U.S. dollars.

First of all, Amazon's online retailing focuses on low-price strategies, and their profits are much lower than those of supermarkets. Moreover, many of Amazon's investments are relatively advanced, such as logistics warehouses and so on. They invested a few years ago to build enough for expansion and use in the next ten years.

At that time, other directors of the company were against it, but Feng Yu asked Ralph to express his support. The benefits are also obvious. So far, Amazon has never worried about logistics warehouses.

Amazon's net cash inflow is huge, but its warehouses are also huge. This also allows any user who places an order to not be unable to buy the product because there is no stock.

But the reason why Amazon's profits are so low is because Bezos invests more of his profits in high-tech product development.

For example, cloud services, a business that many software companies around the world are involved in, Amazon is one of the best.

Therefore, Amazon's technology investment in research and development is extremely high, even exceeding that of Guge Company and Fruit Company. This also allows Amazon to provide customers with the best service, and without relying on other companies, it can get all kinds of data it wants to better capture customers.

So with Amazon and other e-commerce companies, Feng Yu didn't care too much about Thomson's retail channels at all. Some Feng Yu and the others can develop by themselves, some find partners, and the other part has e-commerce to make up for it.

This year's economic situation is so bad, Feng Yu wants to increase the market share, product sales and sales of his consumer electronics brands!

... (To be continued.)

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