My Age of Investment

   Chapter 1226 Sub-brand strategy

   "The performance of the mobile phone is similar to our FX2 in all aspects, but the price is less than 4,000 yuan?"

   Lin Bing looked at Xia Jingxing with a surprised expression, he couldn't digest the shocking news brought back by the boss for a while.

   The other Fuxing mobile phone executives in the conference room were also surprised, and they thought quickly in their minds.

   "I judge that this Meizu M8 phone may seriously impact the domestic market sales of Fuxing FX2, especially those users who are sensitive to price may abandon us and turn to Meizu."

  Xia Jingxing glanced at Zhu Zhaojiang and motioned him to continue.

   "It's been 30 years since the reform was opened. In fact, some people in our country have become rich first, and there are still a lot of people, but they do not account for a large proportion of the total population, only a small number.

   The price of a high-end smartphone like Fuxing mobile phone is worth two or even three months’ wages for ordinary people.

  If there is a new smartphone that can surf the Internet, play games, and experience the convenience of various mobile Internet technologies, and the price is only a month’s salary for ordinary people, then I believe that the vast majority of Chinese people will choose this phone.

   There is not much performance gap between Meizu M8 and Fuxing FX2, but the price difference is 1,000 yuan or more. The common people are not stupid, they know how to choose. "

  Zhu Zhaojiang stalled his hands, "If we let it go, it is very likely that the sales of Fuxing mobile phones will drop sharply, but Meizu M8 will take this opportunity to win the favor of more consumers and become famous in one fell swoop!"

  Xia Jingxing smiled and nodded, it seemed that not only did he see the crux of the problem at a glance, but also Zhu Zhaojiang.

   There is no such thing as "outside the Fifth Ring Road" and "sinking market", but the objective fact exists.

  Rejuvenation mobile phone, as a high-end smartphone, the proportion of domestic sales in global sales has dropped from 50% in the earliest to less than 20% today, which is proof.

These days, Chinese people are not rich as a whole. Most of the ordinary people are more restrained and rational when it comes to the pursuit of high-end mobile phones. .

  Fuxing Mobile has done surveys and customer portraits. Most of the users who buy FX1 and FX2 are from urban wealthy people and young people working in big cities.

   The former group is really rich and doesn't care about the price.

The latter group does not have much money, but because they work in big cities, they pay attention to decency and live a more refined life, and because of the interaction design, Internet level, technology content of smartphones, etc., they seem to be far more than old-fashioned function machines. This is precisely what attracts young people the most.

  Young people, their consumption habits are different from those of the older generation. They don’t pay attention to pragmatism. When they see something they like, they buy it on impulse, even if they pay the price of eating pickled buns for a few months afterwards.

   These two groups cannot represent all of China, the real China, so it can be quickly concluded that the penetration rate of Fuxing mobile phones in the Chinese market is far from enough.

   Lin Bing said at this time: "In the past, only Fuxing mobile phones were available on the market for consumers to choose from, and there will be another choice soon, and consumers will naturally make comparisons.

   There are only two paths in front of us, one is to reduce prices to ensure sales, and the other is to focus on developing new mobile phones without reducing prices.

   Although the price cut has kept sales, it is likely to cause dissatisfaction among consumers who bought mobile phones before, and then affect the brand reputation and style.

   When a new model is released in the future, it will be difficult to raise the price again.

  Because Chinese people always like to buy up and not down, the high-end brand image that we spent several years building with great difficulty was suddenly shattered, and the loss was too great to estimate.

   I suggest that the price of the new model FX2 should not be reduced, and the price of the old model FX1 should be reduced again to compete with the Meizu M8. "

  Xia Jingxing shook his head gently, "After the release of FX2 half a year ago, the price of FX1 has already been reduced once. If the price continues to be reduced, it will be reduced to less than 3,000 yuan, which will also give consumers an illusion that the value is not preserved.

   And FX1 does not have an app store, which alone is no match for Meizu M8.

   Now the sales of FX1 have dropped sharply, and the 3G network license is about to be issued. FX1 itself does not support 3G network. Strictly speaking, it is already an outdated product.

   After this year, let it be completely discontinued.

   However, you are right about one thing, that is, you can't just cut the price.

  FX2 has been on the market for less than half a year. Taking the initiative to cut prices gives people a feeling of unconfidence and damages the brand reputation.

   But the brand style is not only supported by high prices.

  The price is expensive, is it a high-end brand? It's just a joke.

   We should focus on technology in brand building. Only continuous innovation and the launch of more competitive models are the keys to truly gain a firm foothold in the high-end mobile phone market.

  Leave the Meizu M8 alone for the time being. Huang Zhang clearly wants to take advantage of the low-price strategy to eat up part of the market, making Meizu's brand an instant hit.

  When sales come up, their supply chain will gradually mature.

   And the low price does not mean that there is no profit. Meizu can still make good profits by means of small profits but quick turnover. This money can be used to expand the R&D team and gradually turn a small factory transformed from MP3 into a mobile phone factory. "

   Zhou Guangping commented: "It seems that this sassafras is quite intelligent. He used this trick to make us feel a little uncomfortable, and there is no way to stop him."

   "Stop him?"

  Xia Jingxing smiled and said, "Why stop him? China's mobile phone market is so big, and there are so many mobile phone manufacturers, it is impossible to stop him.

   Instead of staring at the opponent, it is better to improve your mobile phone technology. "

   Zhou Guangping was at a loss for words, didn't you say that you want us to discuss how to deal with the challenges brought by Meizu M8? Don't care about people anymore.

  Xia Jingling changed the topic: "Meizu is just a small factory now, even if the M8 will impact the sales of the FX2, the impact will be limited and acceptable.

   But when Meizu becomes a big factory, it is hard to say whether they will move from the low-end mobile phone market to the high-end mobile phone market. "

"definitely will!"

  Zhu Zhaojiang looked at Xia Jingxing with certainty, "Meizu M8 chooses to price below 4,000 yuan, it seems to be avoiding our edge, but isn't it a kind of hide-and-seek?

  When Meizu's factory becomes bigger and its brand is established, will they not be envious of the profits of the high-end mobile phone market?

   On the contrary, it is us. If the sales volume of the high-end mobile phone market cannot continue to expand, the revenue volume and profit may be overtaken by Meizu.

   In terms of the chosen market direction, we are like choosing Luxembourg. Although it has money, it has a small area and the upper limit is placed there;

   And Meizu chose Africa. Although it is poor, it is vast. Once developed, the upper limit is very high.

  If Fuxing Mobile sells 5 million mobile phones every year and earns 2,000 yuan from each mobile phone, a total of 10 billion yuan in profit.

   And the Meizu M8 sells 50 million units a year, and each mobile phone only earns 500 yuan, a total profit of 25 billion yuan.

   In the mobile phone industry, whoever has the largest shipment volume will have a greater say in the face of supply chain manufacturers.

   Whoever has more profits will be able to support larger-scale technology research and development.

  The choice of sassafras is like encircling the city in the countryside, consolidating the foundation of Meizu by eating the middle and low-end market, and then seeking greater development.

   He has done MP3 before, I guess he should have studied the domestic market in depth.

  China has hundreds of millions of mobile phone users, all of whom are potential users of smartphones.

   However, the price of smartphones is usually four or five thousand yuan, and the price is too high, which limits the sales volume, resulting in only four or five million units sold a year.

   But what if the smartphone is priced at 3,000 yuan? Maybe 10 to 20 million copies a year.

  What if the price is 2,000 yuan, or even 1,000 yuan? It may be possible to convert all the hundreds of millions of traditional feature phone users in China into smartphone users. "

   As soon as these words came out, everyone was shocked!

   Liu De shook his head again and again, "I'm in charge of supply chain management, how can I still not know the cost of smartphones?

   When we produced Fuxing FX1 before, the hardware cost of a mobile phone could account for half of the mobile phone’s price, which was almost $250, or about 2,000 yuan at that time.

  With the increase in sales, we have a lot more bargaining power in the face of supply chain manufacturers, and at the same time catch up with the appreciation of the RMB.

   Even so, the hardware cost of the revival FX2 is still as high as 1500 yuan.

   If the cost of marketing, administrative manpower, research and development, etc. is included, if the price of the mobile phone is less than 2,000 yuan, it is equivalent to selling one phone and losing one. "

  Zhu Zhaojiang smiled, "Technology is always going to improve! I believe that with the popularity of smartphones and the continuous increase in sales, the entire supply chain manufacturer system will become more and more mature, and the cost will definitely continue to decrease.

   At the same time, when choosing components, you can save if you can. You don’t pursue such high performance, just use it.

  After the cost is controlled to the extreme, I believe that there will be smartphones priced at 2,000 yuan or even 1,000 yuan in the future!

   And it's not selling mobile phones at a loss, but the profit may be very thin, but it can't hold up its large sales!

  If the annual sales volume is 100 million and each mobile phone earns 100 yuan, that is also a profit of 10 billion. "

   Zhou Guangping frowned slightly and said, "The current annual sales of Fuxing mobile phones is 14 million units, and one earns more than 1000 yuan, which is also a net profit of 10 to 20 billion."

  Zhu Zhaojiang immediately shook his head and laughed: "Now that the Meizu M8 has begun to impact our market position, it is obviously impossible to revive the mobile phone and make money from lying down like before.

   I also think like President Lin that there are only two paths in front of us, one is up and the other is down.

   Continue to make high-end mobile phones upwards, maintain high R&D investment, hold high, and ensure the leading technology and brand.

   But there is a premise that it is necessary to maintain a certain market share overseas. The current economic situation in China obviously cannot support a high-end mobile phone manufacturer.

   Even if we can barely feed ourselves, we will be surrounded by Meizu or other mid-to-low-end mobile phone manufacturers in the future, constantly eroding our market share.

   As for the downward direction, we are taking into account the low-end mobile phone market and continue to expand our mobile phone sales, so as not to be taken down by others. "

  Liu De questioned: "Doing the low-end market? How to maintain the brand style of the revival mobile phone? This will affect consumers' perception of our high-end brand image. You are a typical person who lost a watermelon and picked up sesame seeds."

   Xia Jingxing did not interrupt, and smiled as he watched the executives have a heated debate.

   It seems that without his guidance, this group of people is about to discuss the correct response plan.

   He took a deep look at Zhu Zhaojiang, he was indeed the king of Africa, and it seemed that he read the red treasure book a lot on weekdays.

  Lin Bing suddenly interrupted everyone's discussion: "Make a new brand! A sub-brand! Make it a supplement to the revival mobile phone brand, focusing on the mid-to-low-end mobile phone market, so that consumers will not confuse the brand image.

  Mr. Xia, you mean the same thing, right? "

   Hearing this, the others also turned their attention to Xia Jingxing.

"bingo!"

  Xia Jingxing smiled slightly, and finally someone guessed his true thoughts.

   He threw out the relevant information of Meizu M8 for everyone to discuss, the purpose is to attract everyone's attention to the low-end mobile phone market.

   This year is the year that Fuxing Mobile is fully profitable, and it is also a year of lying and winning.

   But from next year onwards, life will not be so good.

  Meizu is the first mobile phone manufacturer to stand out and embrace the new era since Fuxing Mobile and Zhiguo released smartphones.

  Wait until next year, there will definitely be more smartphone manufacturers springing up like mushrooms after a rain.

   There is no doubt that the world of competition in the mobile phone industry has come!

  Whether it is to gain strategic initiative, or to maximize the benefits of the mobile phone industry, or to popularize smartphones as soon as possible to lay the foundation for the official launch of WeChat, he has to start a sub-brand strategy.

   He has been waiting for years for this day.

   There is another person who also waited for several years.

  Xia Jingxing looked at Zhu Zhaojiang, and suddenly asked, "Zhaojiang, how is your English study?"

   It seems that three or four chapters have been released, and there is still a little more in stock.

   (end of this chapter)