Chapter 505: The Helplessness and Slump of International Brands
Yes, in China, the flower growers have now made money without the distributors, and they don't have to be cut by the distributors.
But it's not possible in Africa now. It's not that the flower growers don't have enough money. It doesn't cost much to open a direct store. The flower growers still have this capital.
The reason why they can't open large-scale direct stores is that Africa is too chaotic. It's not just one country that's chaotic, but every country is chaotic. Even in Nigeria, which is relatively less chaotic, armed robbery is a common occurrence.
The Meizu has only been in Africa for a short time, and its strength is not yet in place.
The current Zhongan Security is not capable of protecting the flower growers from opening all their own direct stores.
They can only choose to cooperate with local distributors, because these local distributors basically have their own strength, and basically have dealings with local gangs, which can deter those hooligans, robbers, etc. They are more effective than Zhongan Security.
Chen Changliu believes that when the Meizu brand takes root deeper and deeper in this ancient land of Africa, its influence will become greater and greater, and then more direct stores can be opened.
You should know that the price of a feature phone of the King of Africa in the original time and space is only a few dozen yuan, but its gross profit is as high as 26%.
Thinking of gross profit, Chen Changliu remembered that the highest cost of their current mobile phone is the chip, and Lianfa Ke is also a hurdle that cannot be avoided.
This time, Lianfa Ke must be forced to cut the price severely, otherwise most of the profit of a mobile phone will go to Lianfa Ke.
You should know that when the King of Africa entered Africa in 2008 in the original time and space, the lowest price was less than 100 yuan, and the price in 2008 was not comparable to that in 2006, and the labor cost was not comparable to that in 2006.
But even so, the cost of a single mobile phone of the King of Africa at that time was only 60 yuan, which shows that the current prices of these chip mobile phone manufacturers are too much too high.
Thinking of this, Chen Changliu thought of Spreadtrum Communications again, and Chen Changliu couldn't help but touch his chin and think.
Although other companies cannot get the daily sales of the African branch of the Flower Growers, they can also estimate 1 point, after all, there must be arrangements.
When the news that the Meizu tribe was fully committed to shipping was passed back to the domestic headquarters, major mobile phone manufacturers were not calm, because the current mobile phone penetration rate in Africa is only about 6%, which means that the annual mobile phone shipments are about 50 million units.
However, the Meizu Pangu series sold more than 100,000 units a day without large-scale publicity, which at least reached more than 1/3 of the sales volume in Africa that day. After large-scale publicity, there is no strong challenge, then the slogan shouted by the founder of the Flower Planting Family that one out of every two mobile phones sold in Africa is theirs.
This is not okay, we can't let the Flower Planting Family achieve this. This is the first idea that all mobile phone manufacturers' bosses came up with, because in this way, such influence will be fed back to the domestic mobile phone market, and it will definitely become a fuel. At that time, the Flower Planting Family will also erode their market in the domestic market, which is something they can't bear.
"Follow us, we will also sell it at 188, and we can't let them dominate the market!"
Such orders were all passed to Africa on the same day, and the whole of Africa was bustling all of a sudden.
But sometimes when two people fight, the third party is injured. Now when domestic mobile phones fight in Africa, there are also third parties who are injured, that is, international brands led by Nokia and Samsung.
The general manager of Nokia Africa is now as black as can be. Before last year, they were the only one in this poor land of Africa, with a market share of more than half.
Although the consumption capacity here is low, the annual sales of 20 to 30 million units are still considerable.
But with the rise of the Meizu brand in Africa last year, their market share dropped from more than 50% to 35% in just half a year. It can be said that this drop is a bit too severe.
But this is not over yet. A few months ago, domestic brand mobile phones from the ancient land of the East swarmed into the African market, and then the price war started, from the previous lowest 268 to just over 200.
This time Nokia was cut again, with the market share dropped from 35% to 22%, but they haven't put their ideas into action yet. I don't know what this Meizu mobile phone is crazy about, and it directly reduced the price of mobile phones to 188.
The general manager of Nokia Africa wanted to die. How could they survive at this price? They could not lower the price no matter what, because this was not a single market issue. If the price was lowered to this level, it would affect the global sales strategy.
He could already imagine that after this wave of price war, the only consumers Nokia could retain were those who thought that European and American products were good.
Not to mention, there were many consumers with this kind of thinking not only in China, but also in Africa.
You should know why many people risked their lives to sneak into Europe, because they thought everything was good there.
It would be great if such people could account for 10% to 15%.
Internationally renowned mobile phone brands such as Samsung and Sony Ericsson were the same as Nokia. The only thing they could do now was to give up.
Chen Changliu, who was in the company that day, received another good news, that is, he had been selected for the political association of Yangcheng Huadu District!
Being selected means that Chen Changliu can speak for the industry in Huadu District, find problems for the industry, and raise questions. If he were an ordinary person, he would feel a sense of satisfaction, but Chen Changliu would not feel that, because that is not what he needs. He only needs this identity.
There are also some benefits to joining the association. For example, after the announcement, Chen Changliu himself is equivalent to the best advertisement. Spending less energy to promote Zhonghuajia Technology Co., Ltd. will have better results than spending a lot of money to promote it before.
For example, you can get in touch with a wider range of people, gain more cutting-edge industry knowledge and different insights, and broaden your horizons.
These may not be needed by Chen Changliu now, but when he jumps out of Huadu District and becomes a member of Yangcheng City, or Lingnan Province, or even the whole country? At that time, it will still be of some use at certain critical times.
PS: The typos will be corrected later.