Extraordinary Genius Chapter 1343 - Changing mindsets

Chapter 1343 – Changing mindsets

“Manager Feng, can we make money this time?”

“Don’t worry. The lawyers I hired are the best in the world. Although I can’t say they can twist the facts, they can change everything to benefit with any slight opening! Their lawyer fees are not a small amount. I told them they would be getting half of the compensation as their fees. If you don’t agree, I can pay them from my pocket.”

“No need. How can I ask you to pay for us? Furthermore, it will be deducted from the compensation.” Station Chief Jia is smart, and he knows the lawyers will do their best to get the highest compensation from those companies.

Also, they have no reason to ask Feng Yu to pay the lawyer fees, as CCTV will gain from this.

“Chief Jia, CCTV has sold those companies’ advertising slots to others to prevent rumors. But you all must give us discounted price next year.” Feng Yu looks at Station Chief Jia.

“Hahaha… no problem. Other than the primetime slots, you can pick any slots you want. I will give you a 5% discount!”

Feng Yu smacked his lips. Is 5% a lot?! How can you make it sound like it’s so generous? But he also knows the money will not go to Chief Jia, and that’s the most he can offer within his authority. Anything more, he will be investigated.

“Oh, you all should put in more effort when inspecting advertis.e.m.e.nts. You all should not be looking at how much the other party offers. You should be thinking of protecting our domestic brands’ interests. Our domestic brands can only venture overseas after they secure a good footing here.”

For example, the local chemical products are suppressed by overseas brands. It’s fine for foreign companies to advertise in China. Still, Feng Yu does not like those brands portraying themselves as superior to the local brands.

This is a serious issue if people are caught in this mindset. In Feng Yu’s previous life, more than 60% of China’s chemical product market share are own by foreign companies.

It can be considered a monopoly, and Feng Yu does not want to see it happening again in this life. Those products are daily necessities and must be own by local companies.

Chief Jia also understands this, and the higher-ups have started to support China’s local brands and companies. Although they had not announced they would be boycotting overseas brands, it is very obvious.

Stopping these overseas companies from advertising their products on CCTV will lower their exposure and increases the local companies’ compet.i.tiveness.

“Chief Jia, all the advertising expenses will be paid by the consumers at the end. The money CCTV earned from the advertisers is from our people. A bottle of shampoo might cost 15 RMB. But after advertising, it becomes 24 RMB. Advertising will increase the profits and cover the advertising cost.”

Chief Jia realized that he had been helping foreign companies make money from their people.

Chief Jia also doesn’t know that advertising on CCTV can increase the value of a product by so much.

Those companies will introduce a new ‘formula,’ repackage an old brand with nicer packaging and sell their products at higher prices. The new ‘formula’ only increases the foam and scent and is not much different from its previous version.

Many people buy products that are advertised because they think the products from big brands are better. How can the products that are advertised on TV have problems? In fact, many smaller brands’ products have better quality, but they just cannot afford to market them.

If the foreign companies are restricted from advertising, the local brands will have an opportunity to succeed.

When people started to realize domestic products are better, they will change the mindset of foreign brands.

“I will tell my staff to check the company when selling advertising slots. Although we cannot stop those companies from advertising, we can secretly stop them from winning the bids for the slots.”

Chief Jia looks at Feng Yu. He had learned this trick from Feng Yu.

Look at those two Cola giants, Tong Yi, Kang Shifu, etc. They were doing well initially, but their development slowed down drastically after losing the most important marketing channel. Although their sales are still rising steadily, they have lost the opportunity to become the market leaders. They are currently not even in the top five companies of their industry.

Lehaha alone can crush them. Kang Shifu and Tong Yi, one of the earliest instant noodle brands in China, are surpa.s.sed by Lehaha. An instant noodle company took over the No. 2 spots under Beidacang Group. The third spot went to another Chinese state-owned company. The fourth and fifth spots went to two private companies focusing on low-cost strategies. Their instant noodles only cost 1 RMB.

These companies were market leaders in China in Feng Yu’s previous life, but in this life, they are suppressed. These few companies’ values keep dropping.

The brand value of a market leader is several times more than a brand in the seventh spot. Although their sales are increasing, the rate is getting slower. Other brands can overtake them easily, and their brand value is falling.

Once a brand’s value falls, the profits will also drop.

“Chief Jia, you all are critical to our domestic brands. A brand can be successful if they have good products and marketing. CCTV will play a major role in this.”

“This is nothing compared to you. Tai Hua Supermarkets is badly affected after removing those companies’ products from the shelf, right?” Chief Jia asked.

“There is some impact, but it is also an opportunity. We can establish our supermarkets’ value. We are also going to seek compensation for their false advertising. Our Tai Hua Supermarket Group is huge, and the amount we are seeking will be very high. Tai Hua Supermarket Group will sue them after the internet companies.”

Forcefully removing those brands’ products from the shelves had made many people angry. But the public opinion on the internet is all on China’s side. Anyone who speaks up for those foreigners is called a traitor!

Tai Hua Supermarket Group had earned praises from the people for removing these products. News of Tai Hua Supermarket Group rejecting those companies’ offer of high payments to sell their products had spread.

Three days later, the hearing for this case started.