Chapter 371 The project with the fastest money, "Pray for Monthly Pass Support"
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After being acquired by Fan Wubing, Yan Company received a huge amount of capital to expand, and at this time it had reached a monthly output of more than 500,000 units, and it was still growing.
The company's former leaders did not expect that under Fan Wubing's operation, the sales of vcdd DVD players were so good. CCTV was full of vcdd advertisements from Wanyan Company, and other brands were unable to compete with it. The companies that originally planned to take vcd projects were lacking interest after seeing Wanyan Company's crazy expansion and unruly price reduction.
Everyone works on projects to make money, but like Wanyan Company’s current approach, how much profit margin is there? After all, other manufacturers are not like Wanyan Company, who have mastered the core technologies in all aspects of software and hardware, and have formed their own powerful R&D capabilities to continuously design and develop a new generation of products.
If you just follow the trend, the profit margin is really small, and there is another important point, that is, Fan's investment group's advertising offensive is really amazing, and their advertisements are overwhelming, which makes people dizzy. In addition to knowing that there is a brand of Wanyan Company, there are other brands of DVD players, and that is unknown.
Therefore, under this situation, although some companies have launched their own vcd DVD players, the effect is very poor. In addition to some remote areas, there is no market for selling in central cities, even if they lose prices, they will lose money.
Earlier research institutions and media estimates that the sales of vcd DVD players were very conservative, believing that the market capacity of about one million units a year is the most optimistic estimate. It is very likely that this kind of thing can not reach this level at all. After all, it takes a certain amount of time to understand a new thing.
However, the reaction given by the market was beyond everyone's expectations. Although Wanyan Company's production capacity has reached 500,000 units per month, the market seems to have become a bottomless pit, and many products can be digested immediately. This makes the company's sales staff feel a little crazy. It seems that only by constantly urging the factory to work overtime to produce, can they not be sold out of stock.
Experts and scholars at home and abroad have also discussed this wonderful Wanyan DVD player phenomenon. The conclusion is that China's economy is in a period of rapid development, so the purchasing power of the people has been greatly improved. We should see the huge purchasing power contained in the people.
From this, the bosses of the home appliance industry are a little excited, believing that the retaliatory growth of the home appliance industry is about to emerge soon. If China wants to set off another round of home appliance sales frenzy, the update will become the tone of the sales landlords of the home appliance industry today.
As for the actual situation, only Fan Wubing knew the most. This was all due to the pirated video disc!
Fan Wubing had discussed with Qiu Baohua about the production location of pirated video discs. Wang Shihan also participated in cooperation with Qiu Baohua. One of them provided technology and the other carried out underground production. These cheap pirated video discs were sold across the country through the underground sales channel of Qiu Baohua. A large number of pirated video discs were promoted to the local promotion of video discs.
With sufficient bullets, gun sales will naturally be no problem. The bottleneck restricting the sales of DVD players is easily solved by Fan Wubing.
But Fan Wubing also warned Qiu Baohua to pay attention to one thing: never sell pirated videos to Hong Kong. Even if the profit is very high, don’t do this.
Qiu Baohua was a little puzzled for this and also specifically asked Fan Wubing the reason.
Fan Wubing explained to him that the content of pirated movies is mainly two parts. One is from the original American blockbuster and the other is from Hong Kong movies. These two parts of the films form the basis for the existence of pirated movies.
The market for large areas of the United States is very large. Its sales revenue worldwide is extremely rich. Pirates in mainland China have little impact on them. Therefore, you can be confident and bold in pirated. But it is not the case in Hong Kong.
The population of Hong Kong is only five million. If pirated movies are imported into Hong Kong without restrictions, the balance on which their various theaters rely on will be broken, and the basis for the survival of the film companies will no longer exist. In this situation where there is no return, naturally no one is willing to make movies again.
Qiu Baohua was quite amazed when he heard Fan Wubing’s high-profile comments. He thought it was really a good deal to do business with Fan Wubing. Making money is easy to be one aspect, and he can also learn a lot.
Now Wanyan Company's net profit is more than 100 million yuan a month, and it is still after tax. Fan Wubing's investment has long been recovered, and now it is just a money-making machine. But Fan Wubing is not so stupid that he blindly expands production. His eyes have been invested in svcdd, which is more suitable for Chinese users, and that's just that.
Improve the machine's fault tolerance and error correction ability, and clear the application of pirated discs
In this case, Qiu Baohua also made a lot of fun. His pirated disc circulation was calculated based on ten times the distribution of the DVD player. It was at least five million copies a month. Even if a profit of four yuan was a profit of 20 million, it would be an income of 20 million. Although it was a bit risky, for him who was used to risk business, this risk was simply not worth mentioning.
In fact, his job is really simple. He just takes over the master plate from Wang Shihan and then returns to his own production line to process it in large quantities. After the plastic film, which costs only a few cents, becomes a real RMB after being suppressed. This feeling really makes Qiu Baohua feel a little self-inflated.
Of course, Fan Wubing's ideal is much greater than Qiu Baohuayuan. He is now planning to develop a major plan for the development of DVD DVD player.
The preliminary specifications of dvdd were proposed in 1994, and are a new generation standard storage technology recognized by the entertainment industry. Moreover, the computer industry responded very positively to it.
In the early 1990s, the American Film Production Industry Advisory Committee drafted a wish book representing the seven major Hollywood film production companies. One of them was to record a video program of standard length in a CDD and require image and sound quality higher than LD. It is necessary to know that the image resolution of VCCD is very low, and video performance alone cannot meet the above requirements. Given the influence of Hollywood Film and Television Group in the world's entertainment industry, hardware manufacturers have begun new efforts.
At the same time, the mpegg working group developed the mpeg-2 compression coding scheme in 1991. At the same resolution, it has much higher compression quality than mpeg-11, with an average compression ratio of about one forty. However, if high resolution is used, the capacity of the storage medium must be larger and the data rate is higher, with a maximum of nearly 1b per second, while vcdd only has 1b.
The launch of vcd is to take into account the usability of existing equipment and CDD discs, and the mpeg-1 standard is adopted. If mpeg--2 is to be used, it is necessary to develop a larger capacity CD and a brand new reading and burning device. Therefore, the development of a large-capacity CD system has become the top priority.
Starting from December 1994, the camp led by Philips and Sony began a battle for the specifications of the DVDD with the two camps led by Toshiba and Time Warner. Until now, no winner has been decided.
However, Fan Wubing also knew that it was only a matter of time before they reached a unified specification under the strong urging of American movies and computer manufacturers. At the last moment, Sony will make a major concession, abandon its own disc structure, and agree to adopt Toshiba's dual-disk docking structure, while Toshiba will compromise with Sony, which has rich experience in C production and development in some technologies such as modulation and processing of data signals.
Seeing that the DVDD development standard is about to be formed, how could Fan Wubing not get a piece of the pie? Although the domestic companies are a bit weak, their technical team still has advantages in developing DVD DVD drives. With the previous precedent of Wanyan's technical team developing VCD drives, it was natural to enter the development of DVD drives at this time, and what they were waiting for was their standards.
Regarding this issue, Fan Wubing had to ask Kevin to take action. After all, it was really difficult to go deep into these companies to obtain technical information, so he could only rely on this hand of God.
However, on the surface, Fan Wubing still extended olive branches to several large enterprises through foreign branches, threatening to use the monopoly position of the domestic and foreign DVD player market as a threat to participate in the formulation of this DVD standard.
However, it seems that except for Philips who expressed interest in Fan's Investment Group, other Japanese companies can be said to be gritting their teeth at Fan's Investment Group. After all, Fan Wubing's sudden appearance has greatly affected their investment plans in the Chinese market.
Without Fan Wubing's emergence, Japanese companies could gain many advantages in China, including the home appliance industry and the sensitive rare earth industry, as well as some other industries, but now, these industries can only let them drool in the dry eyes.
Fan Wubing ignored these things. He strengthened his cooperation with Philips and had already partially participated in the DVD standard formulation plan. The market contained in it is very large. He has no reason to miss this opportunity. When he is engaged in piracy in China, he still has to cultivate his own DVD DVD player industry chain.
As for helping foreigners sell patents, he is not as interested.
Chapter completed!