Extraordinary Genius Chapter 864

Extraordinary Genius

Chapter 864 - Aiwa is here again

WithDirector Fang's help, two Network Access Licenses are granted to Aiwa and Windand Rain.

Themobile phone's distribution channels are the same as pagers. The channelsinclude small retailers, exclusive stores, Tai Hua Supermarkets, and PostOffices.

The mostreliable sales channel is still the Post Office. The Post Office had set up asubsidiary, Post Office Pu Tai, to sell telecommunication devices and hadachieved excellent results.

Feng Yuhad reached an agreement with Post Office Pu Tai to let them sell Aiwa and Wind,and Rain brands of mobile phones and the distribution fee is 8%.

With suchhigh distribution fees, Post Office Pu Tai's staff will recommend these twobrands of mobile phones to their customers first.

Lastyear, Aiwa pagers' sales were comparable with Motorola and had become themarket leader for the Chinese characters pagers. Their profits had exceededMotorola and own more than 40% market share in China.

Aiwaintroducing their own mobile phones can be easily accepted by the consumers.Just like Motorola, when consumers hear the brand, their impression of theirmobile phones will be of good quality as it is a big brand.

AlthoughWind and Rain had introduced pagers, Wind and Rain brand is more well-known fortheir home appliances and electronic devices. Now, they are introducing mobilephones, their loyal customers will also buy them.

AiwaElectronics also helped AIWA to produce smaller batches of mobile phone to beexported to j.a.pan. Aiwa will not ship their mobile phones to the overseasmarket as those markets will be using the Wind and Rain brand.

One monthlater, the first batch of Aiwa mobile phones and Wind and Rain mobile phoneswas officially launched in China!

Feng Yucalled CCTV, and Station Chief Jia immediately help him change the TVcommercials. In China, only Feng Yu gets to enjoy this special treatment. Otherscan’t change their ads as and when they like!

This isbecause Feng Yu bought the most advertising slots and paid the most to CCTV. Healso did not reject CCTV's requests whenever they need help. Also, StationChief Jia had already treat Feng Yu as his good friend.

"AiwaMobile Phones, the mobile phone for Chinese! Aiwa Electronics, I love China!"

It is thesame cla.s.sic brand message, and the commercial only shows a mobile phone and aperson's hand.

"Wind andRain Mobile Phones, been through Wind and Rain. Aiwa Electronics, Master ofCore Technologies!"

Whenthese two commercials appeared on CCTV 1, many Chinese viewers noticed itimmediately. Most of the viewers could already memorize the slogans of thesetwo companies.

Thepeople who wanted to buy mobile phones have new choices now. All of them wantto see the quality of these domestic produced phones.

If theseare other Chinese brands of phones, most consumers will doubt its quality. ButAiwa and Wind and Rain had been China's top brand. Their products areconsidered branded products.

When theconsumers went to Post Office Pu Tai, they noticed that mobile phones are aboutthe same as those imported brands and are much cheaper. They also heard rumorsthat the government leaders were using mobile phones from these two brands andwere almost sold out the moment it was placed on the shelves.

Feng Yu hadtaken advantage of the Government's policy on procurement. Since Feng Yusuggested to Director Fang on protectionism, the Central Government issued aninternal order on the government agencies' purchase. They must consider China'sdomestic brands before others.

Althoughthe order from the Central is for the various local governments and agencies toconsider local brands, it is not a must to use local brands. But the leaders onthe ground obediently choose domestic brands over overseas brands. Many of theleaders' mobile phones were bought last year and the quality is too poor. Afterone year, problems like batteries cannot last, they can't hear the other partyclearly, the b.u.t.tons are not sensitive enough and the phone cannot receivesignal well, start appearing.

Therepair cost of these mobile phones is a few hundred, but how many leaders arewilling to use a repaired phone? They will replace their whole office furniturewhen a bit of paint is peeled from their office cabinet, let alone an oldphone.

In thepast, China only has one domestic phone manufacturer, Panda, and its productionoutput is too low. Many people cannot buy them and the quality is inferior. Butnow, Aiwa and Wind and Rain phones are launched, and this is a good excuse forpeople to change phones.

We got touse Aiwa or Wind and Rain phones because of the Central Government'sinstructions. What about our old phones? We can give them to our subordinatesor family members. There will be no wastage!

Feng Yudid not expect the protectionist measures he suggested to Director Fang in thepast had helped him.

Themobile phone sales spiked once it was launched. After the New Year, the saleswill increase further. Also, the ones who bought the phone now will spread the wordsof their phones and more people will buy it.

……

"Mr. Schnepp,Mr. Schnepp, That Aiwa is here to s.n.a.t.c.h our market share again!"

Motorola'sChina's President Schnepp is in his office reading the previous month's salesreport. Their sales had increased slightly last month, but their pager saleshad dropped. However, the profits from mobile phones are higher, and it is thecompany's focus on the future.

Schnepphad a smile on his face when his a.s.sistant barged into his office withoutknocking. How rude?!

Wait,what did he say?

"What didyou say? Who is s.n.a.t.c.hing our market share again?" Schnepp thought his mandarinis not good enough and heard wrongly.

"That Aiwabrand, our main compet.i.tor in China's pager market! They just launched theirmobile phones!"

"What?!Aiwa is producing mobile phones? Where did you hear this from?"

"They hadalready advertised on TV! Wind and Rain also introduced their brand of mobilephones. Should we have some counter-measures against these two brands?" Thea.s.sistant asked.

"Ofcourse! Every additional compet.i.tor means we will have a smaller slice of thepie. Get someone to buy all their phones model and check their phone's specs." Schneppordered.

Schneppwas not very worried as mobile phones are different from pagers. Thetechnologies involved are more sophisticated and the operating system iscomplicated. Aiwa pagers might be selling well in China and Wind and Rainpagers had been exported to Russia, but those are pagers. Only 10% of the pagercompanies worldwide manufactures mobile phone concurrently. This is thedifference between pager and mobile phone technologies!

Furthermore,Schnepp is from Motorola. The leader in mobile devices. No matter pagers ormobile phones, they own most of the market share. In a protectionist countrylike j.a.pan, their sales might not be good, but in China, they still have notmet any formidable compet.i.tors. Motorola still holds the most significantmarket share, over 60%, in China!

So what if these two brands introduce mobile phones? There's nothing to be alarmed off.