Extraordinary Genius Chapter 872

Extraordinary Genius

Chapter 872 - Impenetrable new market

"Brother Fu, how is the progress?" It'sbeen a week since Feng Yu returned to Seattle, US. During this week, he dropsby Microsoft once and watched 2 NBA matches. Shawn Kemp is really a greatplayer!

It's not that Feng Yu had nothing to do. Hewas waiting for Fu Guangzheng's news of launching Wind and Rain mobile phonesin the US, as he had engaged the services of Fu Guangzheng's trading company tointroduce his mobile phones in the US market.

A mobile phone is an electronic device, but.i.t's different from VCD players. The target customers of mobile phones areindividuals and not families.

The Fu family's sales distribution channelsin the US are the local distributors, and some of them are dealing withtelecommunication devices.

Also, the US is Motorola's home ground, andduring the peak of the mobile phone era, 9 out of 10 mobile phones sold areMotorola phones. Even with the emergence of European and j.a.panese mobile phonebrands, Motorola still holds the position of the number one mobile phone brandin the US.

The local distributors had worked with theFu Family for years, but they still imposed harsh conditions if they were tobring in Wind and Rain Mobile phones.

The distributors felt that there were toomany mobile phone brands in the market, and there's still Motorola at the top.On the other hand, Wind and Rain Mobile phones are still an unknown brand andthere's still no aggressive marketing campaign to bring up brand awareness.Thus, it will not sell well.

Although the distributors felt the exteriordesigns of Wind and Rain phones are attractive, the functions are notoutstanding. Furthermore, Wind and Rain phones are imported products andcoupled with the tax, the phones will have no advantages in the prices.

In the telecommunication sector, there isstill a significant gap between Wind and Rain and Motorola. The functions ofthe phones from both companies were about the same, but Wind and Rain phoneswill lose out when it comes to the pricing.

This product will not sell well in the US,and the distributors had to put in the same effort as the rest of the brands topromote it. Therefore, they had to set harsher conditions.

Fu Guangzheng, who was sitting oppositeFeng Yu, shook his head and sighed. "It's not going well. We are unable tofulfill the conditions set by any of the distributors unless we sell them at aloss. But it's useless too. If Motorola got mad, they might start a price war,and our phones will be left on the shelves!"

Motorola is the world's leadingtelecommunication company, and it's easy for them to attack any new mobilephone brand. Even Europe's top mobile phone company, Nokia, cannot be comparedto Motorola in the US.

This is different from Feng Yu attackingMotorola in China. In China's telecommunication market, Motorola is also theleader, and Feng Yu had to use his connections and economic advantages to sellhis phones at lower prices for the market share. In the US, Wind and Rain donot have these advantages!

"What did the distributors say about ourphones?" Feng Yu asked curiously.

"Lack of varieties, brand awareness,supply, advertising, prices, etc." Fu Guangzheng was feeling helpless. He hadused Wind and Rain phones and knew it is a good phone. Also, the size is small,and the exterior is attractive. But the disadvantages pointed out by thedistributors are facts.

It's not easy to market a new brand, letalone a new product in a new market. Wind and Rain's brand awareness is uselessin this new market.

If Wind and Rain introduce home appliances,it's the brand will play an important role. But consumers will not pick Windand Rain mobile phones and without advertising and marketing, it will not sellwell.

Wind and Rain mobile phone's production islow because they must supply to the Chinese market, and only a small number ofphones are exported to the US. Advertis.e.m.e.nts might increase sales, but in theend, Feng Yu will still suffer losses.

Feng Yu kept quiet and thought hard on whathe should do. He had to think of a solution.

Fu Guangzheng said softly. "If we have afactory in the US, all these problems will be solved. We can make slightchanges to the exterior designs and come up with different models of phones,and our production cost can be lowered. After that, we can increase ourmarketing, and those distributors will not ask for such harsh conditions. Theymight even take the initiative to contact us."

Feng Yu thought to himself. Set up afactory in the US?

Feng Yu had thought of this before but hadhesitations, as the wages in the US is much higher than Russia and China.

Feng Yu had just spoken to Kirilenko andhad spent a lot on setting up 4 factories in East Europe. The mobile phonemarket is still not developed yet. This market will bloom at around the year2000 and mobile phone sales will rise rapidly for the next 10 years, beforegoing into the smartphone era.

Is it too early to set up a factory now?

Fu Guangzheng saw Feng Yu hesitating andwas curious. Setting up a factory in the US or Canada is the best solution.Although the wages are higher, the tax, transportation cost, etc. are lower.Also, this is a significant market, and China's production cannot meet thesupply.

The Chinese factories can only cover theAsia market, and it's more worthwhile to set up factories in the West.

Fu Guangzheng does not believe Feng Yu isshort of funds. Feng Yu can easily get an astronomical amount of loan from thebank with just his Microsoft shares.

Fu Guangzheng is thinking of getting ashare if Feng Yu were to set up a new factory in the West.

"Brother Fu, do you have any connections inBrazil?" Feng Yu asked.

It's more worthwhile to set up factories indeveloping countries because of the low labor cost. Labor cost is a significantfactor in the production cost.

Fu Guangzheng shook his head. "You want toset up the factory in Brazil? I don't suggest this. Although the labor cost inBrazil is lower, Brazilian workers are not efficient and the public securitythere is too poor. Without the help of an authoritative figure there, you willsuffer ma.s.sive losses. You can also forget about making use of China's diplomaticrelationships. China and Brazil are not on good terms."

That means I need to pick a place wherepublic security is good and can influence the US market. Then I can only set upthe factory in the US? Wait… I can also set up a factory in Canada. Superman Liand his family have a significant influence on Canada.

"Brother Fu, wait a while. I will callBrother Kai now. He should have connections in Canada."

Feng Yu had decided to set up a factory inNorth America. One or two factories have no impact on his funds, and moreimportantly, this will let Wind and Rain Mobile phones penetrate the US market.

In China, Feng Yu is not afraid of anyworld-renowned companies. Even in the US, Feng Yu was determined to be numberone!

Fu Guangzheng was disappointed. If Feng Yuwere to cooperate with Li Zekai, he would be out of the picture.

Translator's notes:

Shawn Kemp

https://en.wikipedia.org/wiki/Shawn_Kemp