Chapter 639 – Mutual benefits
Thomas raised a glass of champagne and gave Feng Yu a toast.
The Super VCD player was launched on August 1st, and it was only sold at Tai Hua Supermarket. It was a new supermarket, and Thomas was worried.
But after one week, Thomas saw the results.
Tai Hua Supermarket Corporation had too many talents. From the locations of the supermarkets to the goods displayed on the shelves, even the smallest details were well taken care of.
The arrangement of goods was different from all other shopping malls.
Of course, Thomas did not know that it was Feng Yu, who insisted on displaying the goods this way. Feng Yu had lived more than 20 years ahead and saw the various types of products presentation in shopping malls. He knows the best way to attract customers.
The Super VCD player was not displayed by itself. It was presented as part of a home theatre system. There was a huge TV, and the Super VCD player was connected to it. Customers who saw the display wanted to buy the whole set.
“Mr. Feng, your supermarket is the best supermarket I had seen in Europe and the US. Our products are selling better in your supermarkets than the dealers. I am impressed.”
Philips had entered the Chinese market for more than 2 years. They had more than a dozen joint ventured factories and companies in China. More than 100 retail stores were selling their products in China, but Tai Hua Supermarkets managed to sell more of their products than all their retail stores.
Every Tai Hua Supermarket has an electronics section, and Philips was allowed to send 2 promoters to promote the Super VCD players and their other products like shavers, TV, etc.
Philips’s home theatre system had sold better than Wind and Rain and Aiwa brand. It was because of Philips include a 21 inch TV as part of their system. Wind and Rain and Aiwa used another brand of TV.
Although Wind and Rain Electronics had gotten the TV technologies from Philips, they needed time to understand the technologies and to build factories before they could start production.
This was why Feng Yu chose to work with China’s popular domestic TV brand, Changhong. When customers wanted to buy Aiwa or Wind and Rain Super VCD players, and the home theatre system, the TV in the package was Changhong 21 inch TV/
This was also helping Changhong to market their products. But Changhong was already China’s top brand of TV and does not need Aiwa or Wind and Rain help to raise their brand awareness.
Feng Yu had still wanted Changhong to help manufacture a batch of the TV for Wind and Rain or Aiwa. But Changhong’s charges were too high, and the other smaller factories lack the expertise. If Feng Yu engaged those smaller factories to manufacture TVs for him, the quality might not be good and will affect the reputation of the Super VCD players.
The sales of the 3 brands of Super VCD players were about the same. Wind and Rain brands sales were slightly higher, but when it comes to home theatre systems, Philips had the best results. As a latecomer into the VCD player market, Philips managed to get 40% of the Super VCD player market. Although it was not more than Wind and Rain and Aiwa combined, but Philips was satisfied with this result.
Furthermore, Philips and Wind and Rain Electronics had exchanged other technologies, and there will be other new products launched into the market. They will be able to increase their market share and profits!
This was why Thomas was feeling proud. We might be using your technologies, but our branding is better than yours. Our company is bigger and more repeatable. We are the winners in the cooperation!
“Mr. Thomas, now you believe that despite the high price tags of the Super VCD players, the sales will still be good? This is only the China market. A developing country. I suppose Philips sales will be higher in Europe?” Feng Yu laughed and asked.
“Our sales still cannot be compared to AIWA and Wind and Rain. But I got to admit that the sales volume is higher than expected. Those normal VCD players’ sales are slowly declining, and the market will be taken over by our Super VCD players. I think in another one or two years, there will be no more normal VCD players in the market.”
Thomas was saying that Philips sales cannot be compared to the other two brands combined. But if they were to compare specific brands, Philips sales was the same and might even be higher than Wind and Rain Electronics.
As the Super VCD players were only sold at Tai Hua Supermarkets first, it attracted lots of crowds. Many people visited the supermarket to buy the Super VCD players, but when they saw other products selling at lower prices, they also bought those too.
The Super VCD player was not the only product launched at the Supermarket. Songjiang Motors’ third generation of motorcycles, Songjiang – Light, a 50cc scooter was also launched and sold at retail stores in Tai Hua Supermarket first. It also attracted some crowd and had good sales.
Some of the shoppers went there to buy the scooters and then used the bikes to carry their groceries back.
There was also the newest Aiwa Pagers and Aiwa Stock pagers. There was a counter in the supermarkets reserved for these pagers. The pager sales were also going well.
In Aiwa Pager counters, Wind and Rain batteries were also sold. These batteries were manufactured by a battery factory owned by Feng Yu and Bing City’s Aviation Company. It was an advanced and long-lasting battery.
These batteries lasted longer than average, but the prices were also higher. Because of its high retail prices, the sales were low in the past.
But now, the batteries were placed together with Aiwa Pagers, and the sales improved. Those who could afford a pager which cost a few thousand RMB will not mind spending 10 RMB for a battery.
Lehaha’s newest products, the Refreshing series carbonated drinks, and tea beverages were also selling well in Tai Hua Supermarkets.
Although these drinks were sold in the supermarkets and the profits were lower, but the sales volume increased a lot. Also, this was good for their branding. Not everyone visits the supermarket frequently. But when they saw Lehaha’s amazing display of their drinks, the shoppers will feel curious and want to try how the drinks taste. Once they feel the drinks taste good, they will buy it again.
Tian Peng Pork, Tai Hua Ham and other processed food products have their own counters in Tai Hua Supermarkets. They were also well received by the shoppers.
Tai Hua Supermarket and these brands were working together for mutual benefits. Tai Hua Supermarkets pulls in the crowd and increase the sales of these products. Those who wanted to buy these products will also go to Tai Hua Supermarkets. Most of the time, these people will also buy other things in the supermarket.
Feng Yu knew this would happen, but he did not expect it to be so effective. Bing City’s products, which were the first to enter Tai Hua Supermarket, were selling well too.
Bing City enterprises trusted Feng Yu because of his relationship with Zhang Ruiqiang. The Bing City businessmen believed their Mayor, and because of this trust, they were able to get high returns.
One week was over, and the supermarkets were still as crowded. People were seen walking in and out of the supermarkets since the moment the doors opened until it closes at night. No one steps out of the supermarkets empty-handed.
Feng Yu chatted with Thomas for a while and decided on the Super VCD player marketing plans for the next phase. It’s time to make the other brands cry……