The Industrial Giant Reborn.

Chapter 336 Large-Scale Marketing Budget
"We made this monitor ourselves, right?" Chen Zhiwen looked at the monitor with a big butt in front of him and asked.

"Yes, although the monitors we manufacture in our factory in Hong Kong are not the best in the world, and there is still a gap compared with Sony, Sharp, RCA and other companies, but it is enough for personal computers, because the monitors of computers are far from the user. It is relatively close, and the definition is sufficient, and there is no need to pursue the same pixels as the TV." Lei Shengli replied.

"Well, that's true. If you can produce it yourself, the cost will always be lower." Chen Zhiwen nodded and said.

"The components in this personal computer, except for the chips, are the entire circuit boards that we did not make ourselves. The precision of our Midea motherboard factory in Hong Kong cannot meet the requirements, unless we buy another high-precision production line." Lei Shengli said.

"Are you going to America to buy?" Chen Zhiwen asked.

"No, there is one in Japan. The quality of semiconductor equipment in Japan is no worse than that in the United States, and the price is much cheaper." Lei Shengli said.

"Okay, let's inquire about the price first. We still have to buy it. Our original production line is actually not enough." Chen Zhiwen nodded and said, "However, we must be cautious when we buy it and use our own motherboard. , make sure there is no problem, and then start switching."

The original motherboard factory was mainly for home appliance services. With the success of Chen Zhiwen's terminal sales in the United States, the quality of Midea's electrical appliances is also very cost-effective, and the sales volume is also increasing. The production capacity of the motherboard factory is a bit insufficient.

This production line is relatively low-level. Not to mention computer motherboards, even arcade or game console motherboards can’t be made. Nowadays, Midea’s red and white machines are selling well in the United States, and they have won 250 million sales in the week of Christmas. , surpassed Atari, the former home console giant, and reached the top of the industry.

And personal computers are about to start. Although Chen Zhiwen also knows that it is impossible to have the ability to monopolize this market, this market is too big, and if a small part is won, there will be a very large order volume and a long-term growth advantage.

In this case, the motherboard still needs to be able to do it well by itself, which can control the quality and reduce the cost, but there is no way to do it with the chip. Both the red and white machine and the Midea-1 use Intel's latest 8086 chip. All designs are also run according to other people's underlying logic, and can only be purchased, but fortunately, Intel has not monopolized the entire market, and the price of the 8086 chip is not too outrageous before it is time to cut leeks.

"Okay, I understand the importance of quality, and I am also planning to hire engineers from the Japanese factory where our OEM is now. With them, the risk will be much smaller." Lei Shengli said.

"Okay, we have to gradually increase our production capacity, otherwise, all the core components will depend on outsiders, and the risk is too great." Chen Zhiwen said.

In the past, Midea took a rapid development route and devoted all its efforts to research and development. First, it was games. After earning capital from games, it developed game consoles, and then developed personal computers. Now that the company is large enough, it should expand downwards. Master more production capacity, especially in areas with a bit of technical content.

It is not necessary to produce completely by yourself, but at least you must have this ability. In this way, you will have the cost of lowering the price when negotiating with some skilled suppliers. Rely on Japanese factories, and these Japanese factories are very likely to be united.

Of course, in computers, there are many subdivisions that are unlikely to be produced by ourselves, but one is missing. Others can also recover part of their rights through capital. For example, Intel, which is absolutely dependent, can buy other companies by itself. Part of the shares can get some economic returns, but not now. In the past few years, Intel has been beaten by Japanese chips, and the stock price has been falling. Only after the alliance between Weiruan and Intel and the United States began to sanction Japanese chips, it ushered in development. dawn.

"Understood, I have already started to prepare to select our best suppliers through investment, and then concentrate on cultivating and expanding the scale. This will maximize our profits and reduce risks, but it is only suitable for Hong Kong's suppliers. Enterprises, suppliers in the United States or Japan, we are somewhat dependent on them." Lei Shengli said.

"Overseas suppliers with technical content, I will solve this problem, and you will be in charge of the Hong Kong side." Chen Zhiwen continued: "The sales of game products are getting higher and higher, and there will be computers next. Then other The production capacity with low profit should be transferred out earlier, either in the mainland or in the Gulf.”

Midea can be said to be a high-tech company, especially after the personal computer was launched, but the production of electronic products is always labor-intensive, and at best it is better than the textile industry.

Labor-intensive industries require a lot of land and a lot of labor. Hong Kong met the requirements seven years ago, but it is no longer possible. In the past few years, housing prices in Hong Kong have increased by five or six times, and wages have also increased by four or five times. In a few years, it will increase several times. By that time, labor-intensive industries will die if they don’t leave.

"This should be no problem. Many suppliers have followed us to Shekou. Some of our orders have also been given to Wanwan OEM, and the home appliance factory in Yanjing. The mainland means to cultivate local suppliers in Yanjing." Lei Shengli replied.

"The domestic side can also cooperate in the form of equity investment, giving them foreign exchange and allowing them to buy overseas equipment, which can be regarded as killing two birds with one stone." Chen Zhiwen said with a smile.This is a gift for him. Except for the high-pollution factories in Yanjing City, most of them are located in the urban area, and the second is also in the suburbs. If you can buy some of the factories in these locations, it must be It is cost-effective, and if Yanjing's home appliance factory develops, these component suppliers will also expand, which is a win-win situation.

"That's no problem. I'll talk to the person in charge of the Yanjing project." Lei Shengli said.

"Okay, if there are no problems with these computer tests, then we are going to hold a press conference in the United States, but with our reputation, it is estimated that not many people will come back. Afterwards, we will distribute all computers to Costco and Best Buy, Wal-Mart, etc. I will inform you later, it should be okay to go to the counter, and then I will advertise on American TV stations, the initial budget is 1000 million US dollars." Chen Zhiwen said.

"1000 million US dollars?" Lei Shengli was a little surprised. Midea's brand products basically didn't advertise much, but the boss's other company advertised overwhelmingly.

"It's just too much, Lao Lei, this personal computer is definitely the main product of our Midea in the future, and we must do it well." Chen Zhiwen said.

The previous Midea products, home appliances, actually spent a little money on marketing, but the amount was not large. After all, except for fans, the technology of other brands was too different from that of big brands. In the early stage, I was short of funds, so it was a waste of money to spend on them. up.

And the follow-up game industry does not need publicity at all, because this is an absolute leading position. People’s word of mouth before the publicity can make the demand for arcade machines or Families and handhelds exceed Midea’s production capacity. There is no need for advertising, just like Apple in 2010-2016, and Tesla before 2022, it will never advertise, not because of the bullshit culture that does not need advertising because of a good product, but because of insufficient production capacity and demand It's too big, and it's in short supply.

But computers are different. There are already many players in this market, and Midea does not have an advantage in technology, and its future development is very strong. In addition, Midea has no shortage of money, so naturally it needs a lot of advertising.

"Okay, then I'll arrange someone to contact the American TV station first, so the timing is just right. It will be listed after the American press conference in a month." Lei Shengli nodded and said.

(End of this chapter)