Chapter 195: The Spirit of the First Step
"Aida Electronics is extraordinary. I rarely see domestic manufacturers doing such a big deal..." Zhang Yaping smiled gently, and he was always accompanied by Su Jindong.
"Whether Ada Electronics can be extraordinary depends on Mr. Zhang's support!" Zhang Ke's words were not a compliment. I'm afraid that Zhang Yaping has not yet realized how important Philips' movement production base is in China.
Once the decoding board is developed, the production process is quite simple. As long as the market demand is large, C-CUBE can launch a large number of decoding boards, and there is no problem of capacity bottleneck constraints; however, the production process of movement is much more complicated, and there is a problem of capacity bottleneck constraints.
As Zhang Ke knew, eight months later, within four months after the Spring Festival in 1996, the sales of the DVD player market, which should have continued to explode, did not increase significantly. The main reason was that Philips' domestic production base reached a capacity bottleneck and the movement was not supplied. During that time, some companies made a fortune by speculating on Philips' movements.
The production and sales of VCD movements at Philips movement base in June have reached 60,000 sets. Ida Electronics has only accumulated more than 1,000 sets of movement chips, which is really not a big customer. If it weren’t for the deep impression of Zhang Yaping at today’s press conference, it would probably not take long before I could have erased the impression of Ida Electronics to the busy office.
Zhang Yaping smiled and said: "Philips has been committed to finding potential manufacturers to cooperate in China. Today, my delegation will let me see hope in Aida Electronics."
As an upstream component supplier, Philips hopes to support potential downstream manufacturers. If Philips knows that Aida Electronics is developing a movement, it will change to another attitude.
Zhang Ke knew that Zhang Yaping's words were not hypocritical and polite, and said with a smile: "Ada Electronics has a long way to go. Today is just the first step. Next, we will go to Shanghai, Guangzhou, and Beijing to fight the market until the victory flag is inserted all over the country..."
Zhang Yaping just heard Su Jindong introduce Aida Electronics’ analysis and judgment of the market. From Aida Electronics’ first step today, he knew that Zhang Ke is a genius in the market. Not only today’s press conference, he learned from Su Jindong’s introduction that Aida Electronics’ advertisement will be played at the opening of the 8 o’clock TV series on CCTV tonight. This fifteen-second advertising clip is now being put on the snow-white wall through the projector, and a strong advertising offensive is about to begin...
Aida Electronics' courage to do the market has to surprise Zhang Yaping. Even Samsung Group in South Korea does not have such great intensity to advertise its DVD player industry.
So far, there are very few manufacturers who directly adopt second-generation decoding chips. After all, the investment in system control development in the early stage is relatively large and it takes a long time. According to Zhang Yaping, the only capable manufacturers are Xinke, and the two companies BBK directly use second-generation decoding chip technology, but their actions are slower than Aida Electronics.
As early as the beginning of this year, Ida Electronics developed DVD player products directly on the second-generation decoding chip launched by C-CUBE. It took only half a year to launch mature products, which surprised Zhang Yaping. The movement produced by Philips' movement base is more considering matching with SCOBE's second-generation decoding board. For the first-generation decoding board, Philips' movement function is too powerful and a bit wasteful. This has caused many manufacturers such as Samsung to produce DVD players but do not purchase movements from Philips. They choose cheaper but unstable products.
Although Zhang Yaping is not familiar with Aida Electronics, he felt from his first contact that Aida Electronics is leading others' concept in every way. He believes that Aida Electronics is very likely to succeed. He also expects Aida Electronics to succeed, which will promote the application of the second-generation decoding board in DVD players. The movement designed and produced by Philips for the second-generation decoding board will also dominate the entire movement market. Zhang Yaping of course hopes that the earlier this moment will come, the better. Looking at Zhang Ke, he smiled and said: "Aida Electronics is confident that it will be the number one brand of China's DVD players?"
Zhang Ke smiled: "We will purchase 100,000 sets of movements from Philips before the end of the year. By next year, I will ask for 100,000 sets of movements every month..."
Zhang Ke's words really shocked Zhang Yaping. Currently, Samsung in South Korea can only produce 20,000 machines a month. Ida Electronics actually wants to surpass Samsung in one fell swoop. Philips' current production capacity will not expand and will only supply less than two million sets of movements next year. Ida Electronics will have a majority share if it is not for the courage of Ida Electronics today, Zhang Yaping would have to take Zhang Ke's words as a joke.
Zhang Yaping is also a well-educated person. He smiled faintly and said: "This year, Aida Electronics has the ability to digest it. I will naturally provide you with the production and sales plan next year. It's still too early to discuss it..."
Su Jindong didn't know Zhang Ke's plan, and he didn't see that the supply of movements would suddenly be tight after next Spring Festival. Aida Electronics' current production capacity is only 2,000 units per month. In addition to expanding in front of the factory, it is recruiting a large number of skilled workers to implement shift-based production without interruption. It would be good if the production capacity could exceed 10,000 units per month. The new production base is still unknown when it can be started. Zhang Ke asked for 100,000 sets of movements, which really scared Su Jindong. But compared to this, Zhang Ke's requirement of 100,000 sets of movements every month next year made him even more stunned. He didn't expect that Zhang Ke would be so optimistic about the DVD player market!
Zhang Ke smiled. Today is just a product launch conference. This wave of advertising offensive has just begun. Before, only a few shopping malls barely put Aida VCD on the counter for the sake of Shengxin Trade. The sales situation is naturally bleak. If the home appliance managers of these shopping malls heard the conversation just now, they would probably laugh. Unfortunately, the wonders of the market are that people who have never experienced it will never understand!
Chapter completed!