Extraordinary GeniusChapter 639 – Mutual benefits
Thomas raised a gla.s.s of champagne and gave Feng Yu a toast.
The Super VCD player was launched on August 1st,and it was only sold at Tai Hua Supermarket. It was a new supermarket, andThomas was worried.
But after one week, Thomas saw the results.
Tai Hua Supermarket Corporation had too many talents. Fromthe locations of the supermarkets to the goods displayed on the shelves, eventhe smallest details were well taken care of.
The arrangement of goods was different from all othershopping malls.
Of course, Thomas did not know that it was Feng Yu, whoinsisted on displaying the goods this way. Feng Yu had lived more than 20 yearsahead and saw the various types of products presentation in shopping malls. Heknows the best way to attract customers.
The Super VCD player was not displayed by itself. It was presentedas part of a home theatre system. There was a huge TV, and the Super VCD playerwas connected to it. Customers who saw the display wanted to buy the whole set.
“Mr. Feng, your supermarket is the best supermarket I hadseen in Europe and the US. Our products are selling better in your supermarketsthan the dealers. I am impressed.”
Philips had entered the Chinese market for more than 2years. They had more than a dozen joint ventured factories and companies inChina. More than 100 retail stores were selling their products in China, b.u.t.tai Hua Supermarkets managed to sell more of their products than all theirretail stores.
Every Tai Hua Supermarket has an electronics section, andPhilips was allowed to send 2 promoters to promote the Super VCD players andtheir other products like shavers, TV, etc.
Philips’s home theatre system had sold better than Wind andRain and Aiwa brand. It was because of Philips include a 21 inch TV as part oftheir system. Wind and Rain and Aiwa used another brand of TV.
Although Wind and Rain Electronics had gotten the TVtechnologies from Philips, they needed time to understand the technologies andto build factories before they could start production.
This was why Feng Yu chose to work with China’s populardomestic TV brand, Changhong. When customers wanted to buy Aiwa or Wind andRain Super VCD players, and the home theatre system, the TV in the package was Changhong21 inch TV/
This was also helping Changhong to market their products.But Changhong was already China’s top brand of TV and does not need Aiwa orWind and Rain help to raise their brand awareness.
Feng Yu had still wanted Changhong to help manufacture abatch of the TV for Wind and Rain or Aiwa. But Changhong’s charges were toohigh, and the other smaller factories lack the expertise. If Feng Yu engagedthose smaller factories to manufacture TVs for him, the quality might not begood and will affect the reputation of the Super VCD players.
The sales of the 3 brands of Super VCD players were aboutthe same. Wind and Rain brands sales were slightly higher, but when it comes tohome theatre systems, Philips had the best results. As a latecomer into the VCDplayer market, Philips managed to get 40% of the Super VCD player market.Although it was not more than Wind and Rain and Aiwa combined, but Philips wa.s.satisfied with this result.
Furthermore, Philips and Wind and Rain Electronics hadexchanged other technologies, and there will be other new products launchedinto the market. They will be able to increase their market share and profits!
This was why Thomas was feeling proud. We might be usingyour technologies, but our branding is better than yours. Our company is biggerand more repeatable. We are the winners in the cooperation!
“Mr. Thomas, now you believe that despite the high pricetags of the Super VCD players, the sales will still be good? This is only theChina market. A developing country. I suppose Philips sales will be higher inEurope?” Feng Yu laughed and asked.
“Our sales still cannot be compared to AIWA and Wind andRain. But I got to admit that the sales volume is higher than expected. Thosenormal VCD players’ sales are slowly declining, and the market will be takenover by our Super VCD players. I think in another one or two years, there willbe no more normal VCD players in the market.”
Thomas was saying that Philips sales cannot be compared tothe other two brands combined. But if they were to compare specific brands,Philips sales was the same and might even be higher than Wind and RainElectronics.
As the Super VCD players were only sold at Tai HuaSupermarkets first, it attracted lots of crowds. Many people visited thesupermarket to buy the Super VCD players, but when they saw other productsselling at lower prices, they also bought those too.
The Super VCD player was not the only product launched atthe Supermarket. Songjiang Motors’ third generation of motorcycles, Songjiang –Light, a 50cc scooter was also launched and sold at retail stores in Tai HuaSupermarket first. It also attracted some crowd and had good sales.
Some of the shoppers went there to buy the scooters and thenused the bikes to carry their groceries back.
There was also the newest Aiwa Pagers and Aiwa Stock pagers.There was a counter in the supermarkets reserved for these pagers. The pagersales were also going well.
In Aiwa Pager counters, Wind and Rain batteries were alsosold. These batteries were manufactured by a battery factory owned by Feng Yuand Bing City’s Aviation Company. It was an advanced and long-lasting battery.
These batteries lasted longer than average, but the priceswere also higher. Because of its high retail prices, the sales were low in thepast.
But now, the batteries were placed together with Aiwa Pagers,and the sales improved. Those who could afford a pager which cost a fewthousand RMB will not mind spending 10 RMB for a battery.
Lehaha’s newest products, the Refreshing series carbonateddrinks, and tea beverages were also selling well in Tai Hua Supermarkets.
Although these drinks were sold in the supermarkets and theprofits were lower, but the sales volume increased a lot. Also, this was goodfor their branding. Not everyone visits the supermarket frequently. But whenthey saw Lehaha’s amazing display of their drinks, the shoppers will feelcurious and want to try how the drinks taste. Once they feel the drinks tastegood, they will buy it again.
Tian Peng Pork, Tai Hua Ham and other processed foodproducts have their own counters in Tai Hua Supermarkets. They were also wellreceived by the shoppers.
Tai Hua Supermarket and these brands were working togetherfor mutual benefits. Tai Hua Supermarkets pulls in the crowd and increase thesales of these products. Those who wanted to buy these products will also go toTai Hua Supermarkets. Most of the time, these people will also buy other thingsin the supermarket.
Feng Yu knew this would happen, but he did not expect it tobe so effective. Bing City’s products, which were the first to enter Tai HuaSupermarket, were selling well too.
Bing City enterprises trusted Feng Yu because of hisrelationship with Zhang Ruiqiang. The Bing City businessmen believed theirMayor, and because of this trust, they were able to get high returns.
One week was over, and the supermarkets were still ascrowded. People were seen walking in and out of the supermarkets since the momentthe doors opened until it closes at night. No one steps out of the supermarketsempty-handed.
Feng Yu chatted with Thomas for a while and decided on theSuper VCD player marketing plans for the next phase. It’s time to make theother brands cry……
Translator"s notes:
Sichuan Changhong Electric Co., Ltd.
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