"What's going on?!"
"I have never seen a company that is so bad at making money!"
Seeing him groaning in front of his computer desk, his roommate couldn't help but come over. There, on Amazon's massive screen, was a small notification:
Dear customers, starting today, we are implementing a purchase limit policy for iPods. Each Amazon account can only purchase a maximum of two iPods.
For a detailed explanation, please visit the Longteng Electronics official website.
Like many netizens who were subject to purchase restrictions, Chris went to the Longteng Electronics official website.
The official iPod website explains that due to scalpers and middlemen hoarding products through improper means, the iPod brand has decided to implement a purchase limit policy.
Chris just didn't understand. It doesn't matter who you sell an iPod to. Don't scalpers pay for iPods?
Even scalpers haven't figured this out. After observing the purchase restriction policy, they quietly left many negative reviews on online communities.
Asia Travel Capital.
At a senior management meeting held in Kuala Lumpur, Southeast Asia, Asia Travel Capital headquarters praised iPod for its long-term vision and for not being misled by short-term sales figures.
They wisely used purchase restrictions to eliminate any space for scalpers to operate.
In contrast, even without purchase restrictions, Sony's products remain stagnant.
The total sales over the past two months are less than the sales of an iPod in a single day.
Sony previously purchased a lot of cheap raw materials in Southeast Asia and Africa.
These resources were originally intended to be fully invested in the production line to expand the production scale of the brand's MP3 players.
However, just ten days later, Longteng Electronics made a complete turnaround in the European and American markets. Not only did it return to the European and American markets without spending a penny, but on Amazon's e-commerce platform, iPod has become the number one brand in the electronics field.
As the investment director of Asia Travel Capital, Xiang Feng personally met with Chen Dong and also obtained the latest sales data of Longteng iPod from Lin Zhiyuan.
Asia Travel Capital's risk assessment of Longteng Electronics is now in its final stage. Once the high-level meeting is approved, Asia Travel Capital will officially invest in Longteng Electronics.
When the time comes, this powerful alliance will surely revitalize the Southeast Asian market.
Of course, this is just Xiang Feng's personal idea.
"As far as I know, Longteng Electronics has implemented a purchase restriction policy for its products." The senior management questioned Xiang Feng's decision.
Does Longteng Electronics have the production capacity? Does it have the capacity for sustainable development?
“Mr. Steven, please take a look,” Xiang Feng distributed his prepared proposal to the senior executives, and then introduced, “The purchase restriction policy only targets scalpers and overseas purchasing agents.”
“These people are not agents of Longteng Electronics, but they have a large number of Longteng Electronics products in their hands, some even more than the overseas distributors that Longteng Electronics has joined.”
"The inability to control the flow of products and the inability to predict product usage is fatal for an electronics technology company."
Xiang Feng wanted to explain to the higher-ups that Longteng Electronics had no choice but to take such a step.
He himself really wanted to invest in Longteng Electronics, but the company wasn't entirely under his control.
"We need more data to prove that Longteng Electronics' products are credible." The senior management ultimately did not agree.
After the meeting ended, Xiang Feng sat dejectedly in a small corner.
At this moment, the senior executive who had just refuted him came over and comforted him, saying, "I have always been very optimistic about your investment projects in the China region."
"However, sometimes, the hotter a project is, the less you should be too reckless."
Do you understand this principle?
Xiang Feng frowned. "I understand. I just don't want to miss such a good project during my trip to Asia."
The Deputy General Manager of Asia Investment and the Business Director of Southeast Asia walked over together and greeted him, "Teacher."
The executive nodded slightly, then said to Xiang Feng, "We have other matters to attend to, so we'll be leaving now."
"Don't forget what I said, data!"
Xiang Feng remained silent for a while, then quietly turned on his computer.
Due to Longteng Electronics' purchase restriction policy, although the price on Amazon's online store remains at $399, the price of the iPod on the black market has skyrocketed.
The North American market consumed most of the iPod products, and by the time it reached Europe, there wasn't a drop left.
Overseas resellers are taking advantage of information asymmetry to make a fortune. A small number of MP3 players, including iPods, have been smuggled into Europe through grey market channels and are now being sold at prices as high as 998 euros.
"We must be clear about whether our Asian capital wants to invest in a factory or a brand." The teacher's admonition still echoed in my ears.
Whether it's Sony or Longteng Electronics, as long as they want to become a brand and have brand appeal, they will inevitably strive to make their products reach every customer.
Only when a product serves only one customer can its brand value be maximized for that customer.
On the surface, purchase restrictions appear to be a form of scarcity marketing, but the deeper reason lies in the brand's dedication to each and every consumer.
Brand appeal is not determined by the number of products sold; it is necessarily linked to the brand's philosophy and humanistic spirit.
Xiang Feng noticed that the iPod online community was discussing the significance of purchase restrictions, and he saw many meaningful comments on it.
Three days later, the senior executives of Asia Travel Capital will decide, through a vote, whether to invest their funds in Sony or Longteng Electronics.
During this period, Xiang Feng made numerous trips and obtained a lot of detailed data, which convinced the higher-ups to vote for Longteng Electronics.
The results are in: Asia Venture Capital has agreed to invest in Longteng Electronics.
Asia Travel Capital will buy 1,000 shares of Longteng Electronics at a price of $23 per share, representing 5% of the company's stock.
iPod sales in Europe and America are becoming increasingly stable, and Southeast Asia is gradually becoming a distribution center for iPods. In addition, after Asia Travel Capital announced its investment in Longteng Electronics, Longteng Electronics' stock price has been rising steadily.
In contrast, Sony's investors...
They placed their bets on Sony, believing that Sony's MP3 players could defeat Longteng Electronics.
After all, Sony is a long-established electronics technology company with patented technology, talent, resources, and distribution channels. Its marketing models, both online and offline, are already very mature.
Their investment in Sony was primarily driven by a desire for stability.
However, they never expected that Longteng Electronics would rise so strongly, knocking Sony out of Amazon's top ten sales rankings in one fell swoop.
The battle between the iPod and Sony MP3 players was so fierce that even a blind man could see who would win.
Investors' money went down the drain when they poured it into Sony; products couldn't be sold and production lines stopped operating.
Goods are piling up in the warehouse, and workers are receiving wages but have no work. Skilled workers who were originally hired to the factory at high salaries are now being laid off in large numbers.
Sony lost a lot of money and suffered a humiliating defeat.
......
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