Chapter 847 Bad money drives out good money(1/2)
Seeing that Fang Chen's expression suddenly became a little weird, Zhong Daolong thought that Fang Chen didn't believe that he was willing to hand over the technology of the repeater to him so easily, so he quickly said: "Mr. Fang, if you don't believe it, we can sign the contract now
, and it can be known in the contract that the repeater technology will be permanently licensed to Mr. Fang for free for your use."
The reason why he developed the repeater machine was not to become famous, nor to make a lot of money. He just wanted to provide students with a tool for learning English so that students can learn English better.
But this involves a problem. He has already developed the repeater machine. Who will produce it and then promote it to all parts of the country so that as many students as possible can use the repeater machine?
Now that Fang Chen came to him and was willing to talk to him about the repeater, it was like a pillow for him to sleep on, and it suited his wish.
After all, the largest electronic product company in the country is Xiaobawang. It would be great to have Xiaobawang to protect the production and sales of repeaters. Even if he has searched all over the world, I am afraid there is no company more suitable than Xiaobawang.
But who knew that Fang Chen actually waved his hands and said: "Dean Zhong, I naturally believe what you said, but it is not necessarily a good thing for someone like you to be so selfless and arbitrarily license repeater technology to companies."
Hearing this, Zhong Daolong couldn't help but dilated his pupils and was stunned. He even had a vague feeling of discomfort. He gave the technology to Fang Chen for free, but when it came into Fang Chen's mouth, it turned into something different.
What's a good thing?
Fang Chen gave a helpless smile. There are countless people who know about the tragedy of VCD, but not many people know about the hatred of repeaters.
In his opinion, VCDs and repeaters are very similar, so much so that they are almost like twin brothers.
VCDs and repeaters are both electronic products pioneered by Chinese people. Because developers did not pay attention to patents, the market was in chaos. Instead of becoming bigger and stronger, companies fell into a fierce fight early on.
In the end, the golden age of products was tragically lost, and it soon became desolate, allowing some foreign companies to make a lot of money.
Although both of them are indeed unable to register patents all over the world, the main reason why Wanyan's Jiang Wanmeng did not register a patent was because he did not pay attention to it. Otherwise, he and Sun Yansheng would have spent nearly 20 million yuan together.
R&D funds of US$1,000, and even a fraction of it is enough to register a patent.
Even Jiang Wanmeng didn't even register the domestic patent for VCD, otherwise Wan Yan wouldn't have died so tragically.
Zhong Daolong registered a patent in China, but it was out of public interest. It can even be said that it was out of the great love of educators and scientific research experts, in order to enable companies to produce repeaters faster.
Students, and unwilling to increase business costs, voluntarily gave up the patent rights for the repeater.
In his previous life, he once said on CCTV's "Tell the Truth" program: "If we don't give up, the repeater machine will not be transformed into productivity as soon as possible."
His passion for cultivating peaches and plums is beyond words, and his high moral integrity is truly commendable.
But the problem is that Zhong Daolong's kindness was not fully utilized by domestic enterprises. Instead, it caused a lot of bloodshed and a loss of feathers.
In the previous life, repeaters were discovered and put into production by some companies in 1998. Half a million repeaters were produced that year and were quickly sold out.
And in the second year, a wave of favorable policies helped the market for repeaters to quickly open up. It can be said that the good wind sent me to the top with its force.
Since the State Education Commission officially announced in 1999 that in the future, foreign language teaching and examinations for our country's college, middle and primary school students will focus on students' comprehensive oral and listening skills, the repeater market has been rapidly incubated by national policies into a mature market with a capacity of tens of millions of units.
.
Therefore, the sales of repeaters quickly increased from 500,000 units in 1998 to 3 million units in 1999. In the three years of the millennium, 2001 and 2002, they reached 8 million and 1,000 units respectively.
Sales of 10,000 to 12 million units are expected to increase to 15 million units by 2003.
However, the prediction of 15 million units was ultimately just a dream. The idea was beautiful, but the reality was very skinny. The sales volume of repeaters did not reach that level. On the contrary, there was a substantial sales decline in 2003.
In 2002, the repeater industry suddenly emerged, leading many large home appliance companies and IT companies such as Jinzheng, Tsinghua Unigroup, BBK, Jinzheng, and Wanxin to enter the repeater industry.
And before the peak sales season for repeaters came in July 2002, BBK, Jinzheng, Wanxin and other manufacturers took the lead in diving in price by more than 30% in order to compete with other repeater manufacturers to the maximum extent for the peak season market.
At the same time, it invested huge amounts of money to launch advertising and gift wars, trying to clean up the repeater industry and squeeze out weaker competitors.
However, the most important thing is that because the technical content of ordinary repeaters is too low, and Zhong Daolong gave up control of the patent rights of repeaters, many no-name manufacturers have also flooded into the repeater industry, making market competition even more chaotic and chaotic.
sequence.
Because no-name manufacturers did not invest huge amounts in advertising and used low-priced and inferior components, they were extremely competitive in terms of price. In the end, no-name manufacturers actually occupied more than half of the repeater market, causing some repeater brand manufacturers to appear in 2002.
Loss.
According to incomplete statistics, there are more than 200 manufacturers producing nearly 100 brands of repeaters in the national market. In mid-to-late June 2002 alone, more than 10 new repeater brands emerged.
Most of these workshops and factories use low-price competition to enter the market, blindly reducing costs, and bringing many hidden dangers to the market.
The results of random inspections in Jiangnan Province in June showed that only 6 batches of 25 batches of repeater products were qualified. The random inspection by the Sanjin Provincial Quality Supervision Bureau also showed that only 30% of the repeater products were qualified.
Driven by profit, unscrupulous manufacturers use low-quality and low-priced movements, magnetic heads and components to assemble inferior repeaters, resulting in short recording replay time, voice distortion, poor repeatability, and inability to achieve the desired learning effect.
No-name machines are rampant, products are shoddy, competition is too chaotic and disorderly, and manufacturers are mixed. On the one hand, these phenomena have formed a distrust in the entire domestic repeater market in the minds of consumers. On the other hand, they have also led to the decline of various products.
Profit margins dropped significantly.
It can be said that fierce competition and the emergence of no-name machines have caused the price of repeaters to continue to fall, making repeaters a product with only marginal or no profits, and entering a period of product decline prematurely.
At this time, Sony, Panasonic and other Japanese companies not only made a lot of money in the foreign repeater market, but also entered the Chinese repeater market in a big way, quickly occupying a quarter of the Chinese repeater market with high prices and high quality.
Across the country, it crushes domestic repeater companies in terms of profit margin.
Eastern and Japanese companies account for 80% of the profits in the domestic repeater market, while Chinese repeater companies share the remaining 20%.
As for the sales volume of repeaters, it has been hovering around 10 million units all year round. With the advent of computers, electronic dictionaries, point readers and other learning products, the distance from the target of 15 million units set in 2003 is getting closer and closer.
Coming further and further.
This phenomenon is something Fang Chen never wants to see. He doesn't want to see the repeater that could benefit China and even break into the international market end up like this, and he doesn't want the little bully to end up like this in the red sea of repeaters.
Small and medium-sized enterprises are struggling!
To achieve this, in addition to increasing the technical level threshold of the repeater, add new functions, such as adding a screen to the repeater, turning it into a feasible system that organically combines listening, speaking, reading, translation, vocabulary and other language skills training.
Video repeater.
Or you can add functions such as English-Chinese translation and electronic dictionary.
In addition, the most important thing is to block the possibility of random proliferation of repeater technology from the source Zhong Daolong.
That is to say, Zhong Daolong is not allowed to give up the management of the patent ownership of the repeater.
This is the reason why Fang Chen personally approached Zhong Daolong for an interview. If it was just to produce repeaters, according to Zhong Daolong's generous character, he would have asked Duan Yongping or even Jin Zhijiang to talk to Zhong Daolong.
That’s it.
"Mr. Fang, I don't quite understand what you mean? But if you plan to buy out the patent ownership of the repeater, then I advise you not to talk too much. I don't like money very much, and I will do it immediately.
I am about to retire, and the retirement salary paid to me by the state, plus some royalties, is enough for me to live on." Zhong Daolong suddenly said seriously.
There is a majesty in his words that cannot be violated or corroded.
Is Fang Chen powerful? Is he powerful?
It is indeed powerful and powerful enough.
But it has nothing to do with him!
He is an old man who is about to retire. He never steals or robs in this life, and works diligently for the country, the army, and the people. So what if he doesn't agree with Fang Chen?
No matter how capable Fang Chen is, the only thing he can do is to allow him to retire two years early. What else can he do to him?
So, he doesn't care, he really doesn't care about Fang Chen.
The reason why he was willing to accept Fang Chen's invitation, even before it was announced that the 04 machine had passed the verification, and he was willing to meet with Fang Chen when he needed to avoid suspicion, was simply that he felt that Fang Chen was doing well in the switch and high-tech industry, and he could contribute to
Country, do something good for the people.
And Fang Chen's inspiring speech at the meeting today once again made him have a good impression of Fang Chen.
Anyway, it was definitely not because he succumbed to Fang Chen's power, or because he wanted to get some benefits from Fang Chen.
And no matter what Fang Chen will say later, he has already made up his mind that he cannot hand over the patent rights of the repeater to a single company.
Seeing Zhong Daolong's inviolable appearance, Fang Chen gave a helpless smile, "Dean Zhong, you misunderstood me. I never meant to monopolize the repeater market."
"Mr. Fang, what did you mean by what you just said?" Zhong Daolong asked in a deep voice.
Fang Chen said sternly: "It is not a good thing for Little Overlord to monopolize the patented repeater technology, and it is not a good thing to license the repeater technology to companies at will. There is no conflict."
Zhong Daolong felt a little confused. He was really confused now about what Fang Chen meant. Since Fang Chen didn't intend to let Xiao Bawang monopolize the repeater technology, why should he stop him from spreading the repeater technology?
"I believe you also know that the general situation of domestic electronics manufacturers today is basically small workshops that produce products by counterfeiting, plagiarizing, shoddy, and using inferior components. Otherwise, you would have replaced the repeater by a long time ago.
Technology is given to these small and medium-sized electronics companies."
"So I said there is no conflict, and you see, you don't have the repeater technology to spread at will." Fang Chen said with a smile.
Zhong Daolong nodded silently. He admitted that what Fang Chen said was reasonable. Domestic electronic product production is still in a state of chaos. The only ones with strength are Xiaobawang, Sitong, Lenovo, etc., and the others
, he doesn’t think highly of it either.
Each of these companies has its own main business. He finds it difficult to ask these companies to produce repeaters. Moreover, as an educator and communications expert, he does not understand what the market is.
, let alone know how promising the repeater market is, or how much money it will have.
But as soon as the thought came to his mind, he glanced at Fang Chen subconsciously, and suddenly felt a little want to laugh. When he thought about Fang Chen, the plagiarism and counterfeiting king actually said something about plagiarism and counterfeiting in front of him, he always felt a little ridiculous.
However, he had to admit that Xiaobawang's products were indeed very good, and had even reached the point where they were better than their predecessors. They looked more technological than the red and white machines. No wonder they were so popular in China, and they were learning how to use machines.
He also thinks that some small learning software he has written is very good.
Otherwise, I wouldn’t have sold a Xiaobawang learning machine to my grandson last year.
Seeing Zhong Daolong nodded, Fang Chen struck while the iron was hot and pursued the victory: "Once the repeater technology falls into the hands of these small workshops, they will inevitably produce a large number of inferior repeaters to hit the market. I believe you don't want to see students buying them."
To inferior products?"
"Furthermore, these inferior products will have a large impact on the branded repeaters produced by normal enterprises, making it impossible for ordinary enterprises to operate normally, and thus withdraw from the repeater market. By then, the entire country will be flooded with such inferior repeaters, which is the economic
To be continued...