The products, which had been purchased at a high price, were immediately sent to the R&D departments of various companies. After the machines were disassembled, all the engineers discovered problems with several circuit lines.
With the arrival of the machine, Li Quanliang basically stayed in the R&D department. Major companies were all speeding up the process of imitating it, but they were unsure about these few circuits and dared not make any changes rashly.
Only General Manager Zheng had seen the original design drafts, so Li Quanliang called him hoping to get more information from him.
"Those few lines? I'm telling you, absolutely no problem. I went there with my chief engineer. These few lines can be reduced a bit more. We've done tests these past two days, and there's absolutely no problem." General Manager Zheng patted his chest to assure him, then reminded him, "General Manager Li, we can't tell other manufacturers about this. Reducing the number of lines can save us more than ten yuan in costs."
"Don't worry, I absolutely won't tell anyone about this," Mr. Li assured him.
All companies are focused on this route. The more secretive large companies keep it and treat it as an absolute trade secret, the more other companies believe that it contains something crucial.
As companies began to gather information from each other and pay for insider tips, in less than half a month, General Manager Zheng successfully led all the companies astray.
Within half a month, VCD production was on track, and the goods were delivered to major distributors and began to be pushed into front-line stores. The retail price at the terminal was set at 3,980.
Major TV stations launched a barrage of advertisements, and billboards appeared on the streets. Lu Feng had a clear vision for VCDs: they were a wedding necessity. He believed that as long as he won over his mother-in-law, everything else would be taken care of.
At the same time, in terms of marketing, they strive to match ordinary prices with high-end lifestyles. On the posters of various stores, Lu Feng put Jiang Wanmeng's photo on them to promote the authority and authenticity of the products.
As soon as the first batch of goods went on the shelves, they sold out in just three hours. Scalpers even started reselling them at inflated prices. By March 25, all channels were fully supplied, and the factory's production capacity was nearing its limit, producing 25,000 units per day.
However, the market remained hot, with many places experiencing stockouts. The highest daily sales reached 30,000 units, breaking the daily sales record for the home appliance industry. The highest daily revenue exceeded 100 million yuan, with a profit margin of 9% per unit. Overall, the company was still operating at a loss.
Such a crazy market shows that the gap is huge. It is impossible for major companies not to be envious. But even to prevent piracy, it is necessary to redesign the appearance, understand the circuit and internal structure, and then conduct short-term tests after manufacturing it themselves.
"One hundred million! One hundred million!" When President Zheng looked at the daily payment data provided by Jiafeng Electronics, his eyes were no longer red, but almost green.
"One hundred million a day, what kind of speed is that? Even if you only invest fifty million initially, with an 8% profit margin, that's close to ten million a day. You'll break even in five days! You can't even rob people this fast!!"
An executive standing nearby said, "The reason sales are so booming is because they're the only company in the market. This kind of sales performance won't last long."
"Do you need to tell me? Of course I know." General Manager Zheng grabbed his hair, and just when he thought Jiafeng Electronics was about to collapse, it suddenly perked up again.
"We must expedite our entry!" General Manager Zheng said with a grim expression.
"Mr. Zheng, the experiment is not yet complete," He Tian reminded him.
"What's the point of testing? By the time you're done testing, Jiafeng Electronics will have become the leader in the domestic electronics industry. We can't wait any longer. Besides, our prices are cheaper than theirs. I feel that other companies are getting restless these days."
After a moment's thought, General Manager Zheng asked in a deep voice, "Is the shell company ready?"
"It was prepared a long time ago."
"Start production today, and go on sale within three days. The price is set at 3,580. Our profit per item is over 200, that's pure profit." General Manager Zheng instructed his subordinates, "We must speed things up, hurry up!"
This scene was playing out simultaneously in various companies. The data that Lu Feng released to the public was simply too exciting. They couldn't wait for such a long period of testing, even though the timeframe was at most ten days to half a month.
The VCD market is actually not very large, and many people are watching and waiting. The problem is that only one company is producing the product, which is equivalent to a monopoly. The daily production of more than 20,000 units is distributed across eight provinces. Each store does not sell many units, but when they are combined, they are like a magnificent river.
Once others enter the market, it will quickly become saturated, and then a fierce price war will ensue.
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