al Appliances

Zhang Ke didn't expect that Ye Zufan would take the initiative to talk about the DVD player. He sat down on the stone bench and did not rush to speak. He looked at Ye Jianbin sitting down, and said calmly: "The factory is ready to go into production. I had agreed with Hongbo Advertising Company to produce advertising films. I will stay in the province for a few days this time..."

Ye Jianbin smiled and said, "Young Master Ke personally supervised the production, the commercial will definitely be very exciting..."

Zhang Ke shook and said, "The market entered the early stage. The purpose of advertising is to inform the market. Effective advertising films may not be exciting. Moreover, Ida Electronics does not have so much money to carefully polish a wonderful advertising film." Zhang Ke did not hide the current financial situation of Ida Electronics. "The most important task of Ida Electronics' early marketing promotion is not only to establish a dealer network in China, but also to obtain certain financial support from dealers."

Ye Jianbin smiled and said, "There are more than 100 large and medium-sized cities across the country. Your early workload is really not simple..."

Zhang Ke smiled and said, "It's not simple, and I only gave Aida Electronics three months." If I don't cooperate with Sheng Xin, Aida Electronics' early marketing promotion will only be able to draw people from Kumho, which will undoubtedly increase the pressure on Kumho at the same time.

Ye Zufan was only responsible for causing the topic. He sat there pressing his crutch with his hands, squinted his eyes and looked at the two people who slowly pointed the topic to the point.

Ye Jianbin said in surprise: "In three months, one hundred cities, even if the troops are divided into three groups, it will take three days to conquer one city..."

Zhang Ke smiled and said, "We have been preparing for more than half a year in the early stage. We are just grinding a sword, and we are counting on the sword to break out of the sheath. Three months are barely enough. The main goal is to first-tier cities. We need to find a cooperation between major channel merchants in the electronic products field like Sheng Xin..."

Ye Jianbin smiled and said, "Sheng Xin will naturally support Aida Electronics. Other major channel dealers are afraid that they will not easily open their pockets."

Zhang Ke smiled and knew what Ye Jianbin meant. Aida Electronics had almost no fame in the industry. The stronger the big channel dealer, the more he liked to occupy the funds of the supplier. It was almost impossible for such a wealthy big channel dealer to advance the payment.

Zhang Ke nodded and said, "It's very difficult, but the quality of the dealer network directly determines the quality of the market development, and Aida Electronics' current fundraising channels are very limited..." Aida Electronics factory has no assets to mortgage. Song Peiming's help to solve the loan of 5 million is already the limit. Even if funds are temporarily called from Jinhu, it is a drop in the bucket. Zhang Ke's eyes are staring at the pockets of those channel dealers. For a large channel dealer like Sheng Xin, which one does not have tens of millions of funds in his pocket? Each of them leaks hundreds of thousands of dollars out of their pockets, and that pair of Aida Electronics is also astronomical.

Listening to Zhang Ke not avoiding the problems facing Aida Electronics, Ye Jianbin asked: "Even if funds are raised, how can Aida Electronics quickly expand its production capacity?"

Zhang Ke smiled: "It is very difficult to establish a strict industrial system in a short period of time. The key lies in the early technical accumulation. Those counterfeit factories can launch products in as early as two months.

How long can the production capacity expansion cycle be? What's more, the market cannot be developed at once. There is currently a reserved land on the south side of the factory. As long as there is continuous investment, there will be no problem in the expansion of production capacity to four or five thousand units per month in three months. The key is that the amount of funds occupied by component stocking is large..."

“How much production capacity is currently at Aida Electronics Factory?”

"The production capacity is about 2,000 units per month. Due to the limited capital, if the trial production goes smoothly this month, one thousand units will be released next month." He also knows the truth. Ye Jianbin does not hide his strong interest in the DVD player market, and Zhang Ke does not conceal the current status of Aida Electronics. "Aida Electronics can only insist on requiring channel dealers to withdraw loans in cash. Even if each channel dealer issues a loan three days in advance, as long as the production operation is well raised, it can obtain about one month's production funds, and of course it will also be divided into a portion for marketing promotion..."

"You are so careful in your calculations, it's really enough for Su Jindong to suffer..." Ye Jianbin said with a smile.

Zhang Ke smiled and said, "I really lose in production!" Now Su Jindong must accurately calculate the monthly usage and procurement timing when purchasing screws, so as to avoid excessive purchases at a time that will occupy limited production funds. If it were someone else, Zhang Ke would not calculate the time of market action so finely.

Ye Jianbin envied Zhang Ke for having such a capable assistant. Sheng Xin finally chose to develop physically, and the talents in the business are also extremely eager, but now they are not envious of this time. He said: "Please come this time. I mainly want to discuss what opportunities does Sheng Xin and Aida Electronics have for cooperation?"

The benefits of cooperation with Shengxin are obvious. Everyone knows it well. Shengxin has sufficient research on the DVD player market, and it doesn't even require Zhang Kefei to speak. They have proposed to advance the chips of 10 million yuan, but now they will only increase the investment. Aida Electronics can instantly obtain tens of millions of production funds. Moreover, Shengxin has the advantage of channel resources in the East China region. It can be said that as long as the East China general agent hangs the Shengxin Trade brand, the difficulty of developing secondary distributors in the East China region will be reduced to extremely low. It can be completely left to Shengxin for development of the largest East China market in China to Shengxin for development.

The disadvantage of doing this is that the entire East China market in Aida Electronics will be controlled by Shengxin in the future and will give Shengxin a considerable share of profits in this market. Zhang Ke certainly would not say this concern. He had other considerations and said: "The entry threshold for the DVD player industry is very low. Aida Electronics has only been prepared for six months from scratch. It is still well prepared. The current market is already attractive. No matter how great the potential for the market is to develop, it will be saturated quickly. I predict that DVD players will be saturated by the beginning of 1998. At that time, the most direct competitive method between manufacturers is to lower prices and compete for the market. Manufacturers that have no technical accumulation, no competitiveness, or have too high indirect costs for corporate operations will directly kick out of the market. Manufacturers that can survive can only maintain an extremely low profit margin. At that time, the profit margin is probably not enough to share the third-level distribution system. What choice will Shengxin make?"

Ye Jianbin didn't know what kind of analysis Zhang Ke's accurate judgment was based on, and he didn't doubt it. This was proved from the hot market of Ericsson 398, but no one had such strong confidence as he had before. The stronger Zhang Ke's confidence, the more excited Ye Jianbin said, "So, the golden period of the DVD player market is only 96. In 97, I believe Ke Shao's judgment. Since Ke Shao is worried that the third-level distribution system will appear redundant after 998, Sheng Xin can return the East China dealer network to Aida Electronics for self-maintenance in 998..."

Zhang Ke smiled and said, "It is not limited to DVD players, digital mobile phones, and household appliances. They will face a situation where production capacity is rapidly expanding and profit margins are constantly compressing, has Mr. Ye ever thought about how Sheng Xin dealt with this situation?"

"Cough..." Ye Zufan coughed gently, and he only said the first sentence at this time, "My friend is saying that the living space of channel dealers will become narrower and narrower..."

Zhang Ke said: "From the development model of commercial capital in developed countries, this trend may also exist in China, and we can learn from mature foreign models. This trend changes very rapidly, and it may only take three or four years." Zhang Ke said this, and he could see the development trend of domestic commercial capital forces such as Gome, Suning, Dazhong, Yongle and other domestic in the next ten years. "Just like Ida Electronics, at the beginning of marketing promotion, it relies heavily on the resources of large channel merchants to do the market, but when Ida Electronics develops, it must consider getting rid of these large channel merchants and directly controlling the market. It can be foreseen that the largest part of the market share of household appliances will be concentrated in large shopping malls and super stores. However, with the development and merger of commercial capital, these shopping malls and super stores will replace the voice of large channel merchants in the field of market circulation, and can completely get rid of large channel merchants and directly talking to manufacturers..."

Ye Zufan and Ye Jianbin fell into deep thought. This was no longer just a matter of cooperation with Aida Electronics. Zhang Ke suddenly touched on the core issue on Shengxin's development path. Ye Jianbin asked in a low voice: "That is, Shengxin must also consider the issue of transformation while developing channel resources... But after all, there is a big gap with developed countries in China. We thought about the buffering time of about ten years before there would be a major trend change..."

Zhang Ke said: "Last time I saw an electrical appliance retail store in Beijing. This company called Gome Electrical Appliances adopted a new supply and marketing model in 1990s. Their retail stores have got rid of middlemen and implemented direct supply model with upstream manufacturers. Moreover, this company was the first to publish a mid-square quotation advertisement in the Beijing Evening News in 1991, and has gone beyond the traditional model of store business. I wonder if Mr. Ye has paid attention to this company with a not-so-conspicuous scale..." Zhang Ke has brought out the famous Gome Electrical Appliances today, and Gome's development path is a microcosm of the development of domestic commercial capital and the development of domestic appliances (including mobile phones) market channels!
Chapter completed!