Chapter 634: 634
Thomas came to China again to discuss with Feng Yu on when they should introduce the Super VCD players .
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Although they had agreed that Philips will not introduce the ordinary VCD players, but the Super VCD player technologies were ready . Thomas felt that it was a waste of time to continue waiting .
“Mr . Feng, we had agreed that we will introduce the Super VCD players in September, but the VCD player market is on the rise now, and the traditional VHS players are history . Should we bring forward the date for the Super VCD?” Thomas asked .
Feng Yu nodded: “Of course . There are no problems with technologies . We can introduce the first generation this year and the second-generation next year . But I suggest we should have differences in our exterior designs, like the position of the buttons and colors . But the remote control should be the same . ”
“I understand and know that you Chinese likes red color . We will give up on red color and use other colors . We will use silver, grey and black colors mainly and two colors in a design . We can introduce 3 different models with different colors . ” Thomas had already thought of the designs and chose the popular colors usually used for mainstream home appliances .
“Okay . Then we will give up a grey color and will use other colors to match it . We will use the same colors for the amplifier as the Super VCD players? Is it fine with you?”
The amplifier can also be called loudspeakers . It was one of the fundamental components of a sound system . It will amplify the sound to a better effect like a home cinema and karaoke .
The Philips amplifier is called an AV amplifier . There were 4 sound channels and surround sound . When people were watching movies, the surround sound will be more realistic and feels like watching a movie in the cinema . This feature was mainly designed to target consumers who like to watch movies at home .
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AIWA’s amplifier was the HI-FI amplifier . Hi-Fi or High fidelity have only two sound channels and was most suitable to be used for music . This function main customer segment were the KTV, nightclubs, and lounges .
This technology was not complicated . Philips and AIWA had been producing speakers, and both companies had exchanged their technologies and upgraded their technology .
“Then what free gifts should we give out with our Super VCD players? Other than a music disc, should we still give out other things?” Thomas was asking for advice . Wind and Rain Electronics was better than them at promotions .
“Two microphones, a cleaning solution for cleaning the discs and a VCD storage box . ”
“Mr . Feng, I know the microphones are for singing, and the cleaning solution is to clean the disc . Giving all these to our customers are normal . But what’s the use of giving out a VCD storage box?” Thomas was puzzled . It did not make sense to give out the storage box .
Feng Yu smiled and asked: “Mr . Thomas if you have a big TV cabinet at home and there is only a small TV on it . Won’t you feel uncomfortable? Will you want to buy a bigger TV to place in your TV cabinet?”
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Thomas replied: “I will . But a lot of households can only afford smaller TVs . ”
Feng Yu snapped his fingers . “That’s right . They can only afford smaller TVs . Although they wish to buy bigger TVs, they will not bear to spend the money . But the discs are different . A disc cost only 2 to 3 USD, and the more expensive ones cost 5 USD . Don’t you think those who bought the VCD players will not want to buy more discs when they see an empty VCD storage box?”
Thomas’s eyes brightened up and said excitedly . “Mr . Feng, you are a genius! That’s right! Many people might not be willing to spend money to get a new TV, but they can afford to buy discs to fill up the empty storage box . Even kids can afford . If there is only a disc in the storage box, most people will feel uncomfortable and will buy more discs to fill it up . We are two of the biggest supplier of original VCDs in the world . There is a high chance of them buying our discs . ”
In Feng Yu’s previous life, he had experienced this . He bought a VCD player, and a disc storage box came with it as a free gift . He also felt uncomfortable when he saw one disc in the box . He also wants to fill up the box with discs . He can put the box aside, but he felt it was a waste . VCD storage box should be placed next to the VCD player .
The old TV cabinet was really a cabinet, and there were drawers at the bottom . But the newer TV cabinets were designed differently . There were 2 to 3 shelves and were used to place the VCD players or speakers . The drawer is at the bottom under the shelves, and it is for storing the discs or controllers .
Some of the TV cabinets have a plastic tray attached for storing discs . Those who own a VCD player will not get used to seeing the tray being empty . They will buy more discs to fill it up .
This disc storage box was designed for those who did not have a TV cabinet . After one box was filled, most people will buy a second box . This was to entice the consumers to spend more .
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“Mr . Thomas, our biggest competitor in the disc market, is Sony . Our main market is in Asia, and your market is in Europe . We will surround Sony in the US market . ”
“Ok . We must control the VCD market together!” Thomas nodded .
“How much is Philips’s retail price for the Super VCD player?” Feng Yu asked .
“400 USD? Will it be too high?” Thomas asked . The production cost of the Super VCD player was slightly higher than ordinary VCD player . The cost of the Super VCD player was about 100 USD .
The retail prices of VCD players currently were about 300 USD, and Thomas was worried that he had priced the Super VCD players too high .
After he finished, he saw Feng Yu shook his head .
“How can you price it at 400 USD? I think it should be priced at about 500 USD!” Feng Yu replied .
Ah? The price was not too high? Feng Yu felt it was priced too low? Thomas was confused . Why Feng Yu wanted to set the retail price so high? Was it to stimulate the ordinary VCD player sales? But Philips was not selling VCD players .
“Mr . Thomas, are you thinking that 500 USD is too high? Don’t worry . This is because our Super VCD features are much better than the ordinary VCD players . Also, the discs we are going to introduce will all bigger storage discs . Those normal VCD players might not be able to read them . ”
“What I wanted is to create two tiers for VCD players, just like black and white TV and color TV . Color TV is priced more than double black and white TV, but many people still prefer to buy a color TV . The Super VCD player is considered the higher tier product in the VCD players . I will lower the prices of normal VCD players further to show the difference . ” Feng Yu explained .
“You are going to lower the retail prices for the normal VCD players further?”
“The prices of normal VCD players will be lowered to about 200 USD . This way, the other VCD player brands will be beaten by us . They had opened up the market for us, but they are not allowed to take a bite of this cake!” Feng Yu smiled .
“Then when will we introduce the Super VCD player?”
“August 1st . It will be launch everywhere at the same time!”