Chapter 759 – How did you get your money from?
Feng Yu noticed when Steve asked him this question, Bill Gates sat up straight. Seems like he was also interested in this question.
“Consumer electronics, including some home appliances. This is my primary investment. That multi-function Superfan over there is invented by my company. Currently, it is selling very well all over the world.” Feng Yu smiled.
“So, this Wind and Rain brand’s Superfan belongs to you?” Steve asked seriously.
“I have the controlling shares.”
Steve took a mental note of this and continued asking. “What do you mean by consumer electronics? Just this Wind and Rain brand?”
“That’s right. Look. That Super VCD is also Wind and Rain Brand. My company has the most advanced technologies in the VCD industry. Do you all know about VCD?”
Feng Yu had reorganized his office and added lots of Wind and Rain, and Aiwa products in it. He hopes that everyone who enters his office would notice these products. He was also used to using his own products.
VCD? That belongs to Feng Yu too?
Steve thought it was the Chinese government who invented this VCD. Didn’t they say all the profitable businesses were all state-owned companies in China?
Was there some sort of misunderstanding?
“VCD, is also Wind and Rain brand? That means the brand value of Wind and Rain is very high. Can you share how much is this brand worth?”
Steve had heard that the Chinese do not know much about brand value. Was this question too difficult for Feng to answer? But Forbes magazine had published some embarrassing moments of tycoons before. It’s fine as long as it was the truth.
“It should be about 10 billion.” Feng Yu replied casually.
“Feng, I’m talking about USD.” Chinese loves to use their currency. Don’t they know that USD is the most common currency in the world?
“I am talking about USD.” Feng Yu gave Steve a weird look.
Steve was frustrated. Seems like this Feng does not know what brand value means. 10 Billion USD? You think your company is Disney?
“Feng, maybe we have some miscommunication. The brand value does not mean the value of the products and assets. It is how much the brand is worth.” Steve explained. He felt that even if Feng Yu include all the company’s products and assets, this Wind and Rain will also not reach 1 billion USD.
“Of course, I know that. Have you heard of Wind and Rain brand?”
Steve frowned and nodded. “Yes. I have bought the humidifier.”
“What about you, Bill?” Feng Yu turned and look at Bill Gates.
“I had used the humidifier before and also bought the bladeless fan. But at that time, there is only this brand.”
“You all have also heard of my brand, but will the two of you take note of normal brands? This shows that Wind and Rain brand has already entered the lives of people. Even tycoons like you two are using my products. Our humidifier, bladeless fans, VCD players, etc. are the best in the world. I also own all the related patents.”
“Although this Wind and Rain is not established for a long time, the brand awareness is high. Wind and Rain products can be considered the best in certain fields, and we are still growing. Most importantly, it is the most famous brand in China. Any products if labeled under Wind and Rain brand will be the top seller in China. Why do you thinks a brand which controls a market of over 1 billion consumers, and is the top company in its industry, cannot be worth 10 billion USD? This amount will increase in as time passes!”
Any products would sell well in China if it were under Wind and Rain brand? If this were the case, then this brand would be more influential than big brands like Sony or IBM?
But was Feng Yu exaggerating? How can a brand be so influential?
Feng Yu did not exaggerate his brand value. No other home appliances or electronics brands were as well managed as Wind and Rain. What’s the sub-brand of Wind and Rain? Aiwa!
Steve thought for a while and did not retort what Feng Yu said. He decided to ask the next question. But what Feng Yu said can be used as a header. A boss who claims to own a 10 billion brand! This will attract a lot of readers!
“Is there anything else? Other than electronics and home appliances, did you invest in other industries?”
“Yes. Computer-related companies. I own some shares in China’s biggest PC manufacturer and the world’s top software company.” Feng Yu replied with a smile.
Steve was not satisfied with this answer. Feng Yu had been avoiding answering his questions. Until now, he still does not know where Feng Yu got the money to buy so many Microsoft shares.
“Feng, what was your first business? You should be able to reveal that, right?”
“Humidifiers and bladeless fans. My products had monopolized the market and were sued in several states in the US for anti-trust. But monopolizing the market should not be considered illegal, right? Microsoft’s products are also sued in some areas for monopolizing the market, but Microsoft was not penalized. That only proves that our products are the best in the world. Later, one Chinese company introduce another brand of humidifiers into US, and those lawsuits against us were dropped.”
When saying all these, Feng Yu purposely show a proud look. He was still in his twenties. If he behaved too calm and mature, it would be weird. Young men should behave arrogantly when they have some success.
After Feng Yu said that, Steve showed some despised, and Bill Gates nodded. He agreed with Feng Yu. That’s right. So what if Microsoft had created a monopoly and had signed an agreement with the authorities? Microsoft is a software company and is the leader of the industry. The products are the best in the world!
“Pardon me for asking. Are the profits from humidifiers and bladeless fans very high?” Steve asked.
This was a difficult question to answer. If Feng Yu says the profits are not high, then Steve will continue questioning where Feng Yu got his money from. If Feng Yu said his earnings are very high, then he will be seen as someone who profited from monopolizing the market. This will not be good for the brand image and will affect its sales.
“The R&D cost for my products is very high too. You know how much we spent to develop the bladeless fans? Also, we had to make sure we have the most advanced products. We had invested a lot into the development of our products. Do you know how much does a top engineer and researcher cost? You can just look at Microsoft. How much do you think is the cost of developing Microsoft’s operating system? But how much is Microsoft selling its operating system? You think it is costly? Technology and creativity are priceless!”
Feng Yu made used for Microsoft as his shield. Microsoft’s profits this year is several billion. But how much is its cost? The technologies and creativity behind its products cannot be measured with money.
Bill Gates agreed with Feng Yu’s reply, and Steve could not find anything to retort. However, after so long, Steve still does not know where Feng Yu got his money from?!