Jiafeng Electronics' breakthrough in the Thai market has attracted the attention of a series of companies such as Motorola, Panasonic, and Sony. Apart from Toshiba itself being mired in difficulties, everyone has begun to keep an eye on this small company.
Meanwhile, a document detailing Jiafeng Electronics' investments over the past two years is circulating on Wall Street. This document shows that Jiafeng Electronics Group invests as much as 170% of its revenue in research and development each year.
The rapid development of the R&D company was almost unbelievable to them, especially in the R&D of high-end electronics. In just three years, it has firmly established itself as a top-tier domestic enterprise, possessing core technologies that are enough to rival Changhong Electronics, which has been developing for many years.
This speed is terrifying, especially the speed of financing. Lu Feng is like a patriarch, no matter what means he uses, he can always get money from all sorts of places and endlessly feed it into the mouth of the research and development behemoth. Under this crazy feeding, the money-devouring beast naturally becomes as strong as an ox.
Several tech companies in Silicon Valley have reported the matter, and many investment firms on Wall Street have also taken notice of the situation.
Although Silicon Valley is now competing with companies like Motorola, Panasonic, and Sony, Wall Street also has stakes in these companies, resulting in a dynamic of competition and cooperation.
Both sides reached an agreement immediately that this matter must be contained, especially the development towards high-tech and cutting-edge fields, which is absolutely unacceptable.
Inside the office, Lambert looked at the documents in his hand. The percentage in the research and development section was particularly glaring, and this number was not good for them.
The basic strategy of the United States after the 1990s was to abandon low-end manufacturing and focus on finance and high-tech industries. High-tech industries mean industry barriers. As long as you block this point, it is equivalent to hitting the snake's vital point. The financial industry is to hit the vital point and then carry out low-price acquisitions, or simply destroy its financial system.
The phone on the table rang. Lambert answered and listened to the conversation for a while before saying into the phone, "We can't let this continue. Schroder Investment Group has now become the largest shareholder of Jiafeng Electronics. We're not facing China, but Europe!"
"right!"
"Okay! That's what I think."
Lambert listened to the conversation on the phone and continued, "Moreover, I think Lu Feng is very capable. The encirclement and suppression in Thailand has already shown this. Of course, there are reasons for this, such as the use of personnel, but I still suggest that we deliver a fatal blow. This is also a response to Schroder Financial Group."
“We have found that Jiafeng Electronics’ largest overseas export market, besides Thailand, is Africa. Their low-end TVs and home appliances sell very well in Africa, and they have a high market share in South Africa. We are preparing to take action against them.”
"good!"
After hanging up the phone, Lambert leaned back in his chair, basking in the sunlight outside, and muttered, "There's an old Chinese saying, 'Like a mantis trying to stop a chariot!'"
A dozen minutes later, Lambert called Eisen to come over. Eisen knocked on the door and came in, asking, "What can I do for you?"
“Tell the companies in Japan that we are preparing to crack down on Jiafeng Electronics’ African business, and they should cooperate by publicly accusing Jiafeng Electronics of piracy, plagiarism, and infringement of patent rights.” Lambert was all too familiar with these tactics; few companies could withstand this three-pronged approach.
"OK."
Eisen nodded and walked out, immediately calling several Motorola companies, excluding Toshiba, which had been removed from their partnership list in a short period of time.
When an encirclement and suppression operation fails, an even more dangerous strangulation is just beginning.
After several days of meetings, Lu Feng gained some understanding of the situation of the group's various subsidiaries this year. In September, the group's net profit reached 840 million yuan, and it should be no problem for the net profit to exceed 1 billion yuan this year.
The high profit growth is due to the fact that the initial investment period has basically passed and the expenditure is relatively small. Meanwhile, Weipuda TVs have a stable monthly sales volume of around 500,000 units, and it is easy to break one million units during peak periods. Of the 22 million units sold in the national color TV market, Changhong and Weipuda account for half.
In the VCD market, it holds a dominant 60% market share, and in the pager market, it accounts for 30%. Since it started this year, its main competitors are still foreign companies. However, together, Jiaxun and Bird have already occupied more than 50% of the market, and are currently on par with foreign companies.
In addition, the company also made a small profit from various small home appliances and other miscellaneous products. The overseas market has created a significant market share, with the African market growing every month. This year, the company's profits have reached 200 million RMB, a figure that has truly shocked the entire senior management.
Lu Feng did not expect that the African market would become Jiafeng Electronics' largest export destination. At the meeting, Lu Feng asked the overseas business division to continue to consolidate the market position of its products in Africa and to gradually establish its own brand, and to stop making OEM products.
On September 25th, Lu Feng led Liu Cheng and his group onto a plane to Sweden. The trip was planned for three days, mainly to visit the engineers at Ruixin Laboratory to show the group headquarters' attention to them, and also for Lu Feng to learn about the situation there.
Since there are no direct flights from China, I had to transfer in London, which took three days just to get there.
South Africa, the second largest economy in Africa, is known as the Rainbow Nation. Its economy was booming in the 1990s. When the per capita GDP in China was only $800, South Africa's per capita GDP is now $3,500. It is by no means a poor place. However, the distribution of wealth is uneven, and there are many poor people at the bottom.
Once the Wipda TVs arrive at the port, they will be taken over by three local companies, labeled with three different brands, and sold primarily to the South African market, before expanding throughout Africa.
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