Chapter 450 Promoting the development of the Chinese music industry

On September 9, Yang Wendong came to North Point, where a large area was undergoing construction.

Wang Zhiqun led the group and introduced them as they walked: "Mr. Yang, this is our future new Honor factory. We plan to produce all small home appliances except televisions and transistors, including the tape player that will soon be put into production."

"Well, is the area enough?" Yang Wendong asked again.

Wang Zhiqun replied: "For the time being, it is enough. Although some of our small electrical appliances outnumber televisions, they are simple in structure and require very little space when assembled."

"So the best-selling products now are electric fans and electric mosquito swatters?" Yang Wendong asked again.

Wang Zhiqun replied: "Yes, these two products, one relying on low price and the other our unique patent, are currently selling very well. We are also penetrating the front-end supply chain for these two products. The plastic parts on them are all produced by Changxing Industry, the motors of the electric fans are also produced by ourselves, and the same is true for transistors. Only some simple electronic components are purchased."

"Okay, the same goes for other products, which will gradually develop towards the front end." Yang Wendong continued, "In the next few years, I will invest a lot of resources to expand overseas channels for various electronic industrial products. As long as your prices are very cost-effective, you can sell them to more places."

With the development of Moore's Law, the electronics industry will grow faster and faster. In a few years, new products will appear and old products will be gradually updated. This market will become very large. Many electronics companies in Japan have taken off by seizing this opportunity.

Honor Electronics cannot compare with other peers in the field of technology, which is limited by the local industrial environment in Hong Kong. Fortunately, the time traveler can provide the correct research direction, and there is a chance to catch up in the future. But in addition to technology, channels are also very important, even in the 21st century.

Wang Zhiqun said: "I understand. I will also learn from Changxing Industry and open up all the front-end supply chains."

Only people within the Changxing Group know how profitable and convenient it is once the industrial chain is opened up. Take the raw materials of sticky notes, such as glue and paper, for example. Changxing Industry can now produce them by itself and even provide its own transportation. The same goes for plastic products.

Of course, Changxing Industry is not yet able to produce the raw materials of paper, glue and plastic by itself, but these things are also achieved step by step.

"Well," Yang Wendong continued, "OK, when the tape players are produced, send some to me so I can feel them."

"Okay." Wang Zhiqun agreed and said, "At present, the parts still need to be imported. When the raw materials arrive in a few days, we can assemble them, and then gradually localize the parts."

"How many days?" Yang Wendong said, "Okay, let's also arrange to make some tapes, and use music from Hong Kong."

"No problem." Wang Zhiqun agreed.

One week later, Changxing Building:
"Let us snuggle together, our two hearts connected, today is the perfect time of flowers and moon, with infinite sweetness in our hearts"

A Chinese song came from a white device.

Yang Wendong, Bai Yujie, Qin Zhiye, Qi Ruifan, Wang Zhiqun and others were sitting on the sofas around them, listening to the sound being played.

After the song ended, Yang Wendong said, "The sound is similar to the music on the radio."

Wang Zhiqun said with a smile: "Mr. Yang, there are many radio factories in Hong Kong, and there are also some that make speakers."

Yang Wendong went on to say: “But I still think it’s not enough. The radio is mainly used to listen to various news, and listening to music is just a by-product, so it’s okay if the sound system is a little worse;

But music players are used to play music, so they have higher requirements for sound quality, otherwise they still won’t attract people.”

"Then I will arrange for people to go to Europe and the United States to check if there is any suitable technology that can be purchased," Wang Zhiqun replied.

Yang Wendong thought for a moment and said, "Okay, but you should first investigate the famous European and American player manufacturers."

Although he is not a professional musical instrument player, he still knows several famous music player manufacturers in his previous life, especially those that have made achievements in automobiles. Many people who like cars know them, such as Bose, Harman, Pioneer, etc.; there are probably also several companies that were established in recent years or are still relatively small in scale.

Audio is one of the core components of the electronics industry. Small electronic watches, calculators, recorders, mobile phones, medium-sized televisions, computers, game consoles, large cars, etc., are all inseparable from it.

If you can develop and produce it yourself, then do it yourself. If not, you can also invest in these future giant companies. These are also important components that you will need in the future, and they themselves will also be a lucrative return.

"Okay." Wang Zhiqun agreed.

Yang Wendong asked again: "Who sang this song?"

"This is a female singer from Southeast Asia, her name is Fang Yihua." Zhou Wenhuai said, "This woman has a special relationship with Shao Yifu."

"Fang Yihua? That's interesting." Yang Wendong smiled and said, "No matter who sings it, we need to obtain authorization from the other party before recording the song. We need to discuss a profit-sharing model internally and decide how much money to give them for each tape. This way, we can avoid future copyright disputes."

If a small workshop does this kind of business, it will definitely engage in piracy, but Changxing Group cannot do that. Respecting copyrights and patents is also the most important reason why Changxing Group can grow. Besides, there is not much money. If the singers make a profit and create more songs, their own music industry will only make more money.

Qin Zhiye agreed and said, "Okay, no problem, leave this to us."

The entertainment industry is all managed by Changxing Media, but the boss attaches great importance to TV stations and movies, so Qi Ruifan and Zou Wenhuai also have a high status. Now the focus is on developing the music industry, so naturally Changxing Media is still in charge of it.

Yang Wendong continued, "Well, let's test the product and prepare for launch if there are no problems."

"Yes." All relevant people agreed.

Four Seasons Hotel Hong Kong, Maxim's Cafe:
"Hello, Miss Cui Ping, I am Wu Guangren, the marketing manager of Changxing Media." A man came up to a beautiful girl and introduced himself.

Cui Ping also stood up quickly and said politely, "Manager Wu, please sit down."

Although she is a somewhat famous singer in Hong Kong, compared with the huge Changxing Group today, she is insignificant. Therefore, after receiving the invitation from Changxing Media, she immediately agreed to the appointment. Wu Guangren sat down and said, "Ms. Cui, I asked you out today because I want to reach a cooperation with you. My company is going to launch a new music player. It is through..."

Cui Ping listened carefully. After the other party finished speaking, she naturally understood and said, "Then how much will you pay for my song patent?"

Wu Guangren replied: "Ms. Cui, this patent is not a one-time purchase, but a split patent. We will give you a certain amount of money for every music tape we sell about you.

The amount depends on the popularity of your song and the number of copies sold. The more people buy it, the more royalties you can receive."

Without knowing how many copies of the tapes could be sold, Changxing Media naturally could not buy out the music directly. There was too much music involved, and if it bought out all of it, the initial cost would be terribly high, and the company could not afford it.

Profit-sharing is the best model. For your own company, it means zero risk. If all else fails, you can also introduce overseas songs.

Cui Ping thought about it and felt that it made sense, but she still asked, "Manager Wu, this model is good, but how do I know that the sales volume of my records is accurate?"

"I understand Ms. Cui's concerns, but we can't prove the numbers at every moment." Wu Guangren said: "Our Changxing Media and even Changxing Group are also very famous in the industry. Our promise is to guarantee that we will not hide the sales of records."

This kind of thing cannot be self-proven, so there is no need to prove it. A large group will not damage its reputation for a little profit. This is the best proof.

Cui Ping thought for a moment and said, "Okay, then I will trust Changxing Group for now. What price do you offer for my song?"

"We need to negotiate slowly." Wu Guangren said with a smile: "We can set a preliminary price. For a record with about 10 songs, we will give you 1.2 yuan. After we have data on market sales, we can make a new decision in a month. How about that?"

"1.2 yuan?" Cui Ping thought about it and nodded in agreement: "Okay, that's it for the first month."

There is no data at the moment, so it is naturally impossible to determine too many benefits. Once the data comes out, if my songs sell well, I will naturally have the capital to bargain.

The entertainment industry is always in a state of order: the more exciting your content is, the more money you make and the higher your commission will be, unless it is a monopolized market.

Wu Guangren smiled and shook hands and said, "Okay, then it's a pleasure to work with you."

In other parts of Hong Kong, some independent singers or music companies also received invitations from Changxing Media and signed one-month cooperation agreements one by one.

This matter itself is beneficial to them. After all, it is a market developed out of thin air. Only a fool would disagree. Even if the price is lower, it will only take one month. Even if they can earn a few hundred more a month, who would complain that the money is too much?
September 9, Carrefour supermarket electrical appliance area in Changxing Plaza, Hong Kong:
Many silver-white "radios" appeared on the counter, but many people gathered around them because one of them was playing music. Next to it, there were many black square objects the size of a palm.

I saw the salesperson changing the tape skillfully, and the music switched immediately. There was even a button that could quickly go to the next music.

"Everyone, our product is called a cassette player. It is a new technology developed in Europe and the United States in recent years. The cassette can store 16 songs. The buttons on it are play, pause, fast forward, and fast rewind. This is how you change the tape."

Following the salesperson's introduction, customers in the surrounding supermarkets also understood that this thing can be used to listen to any music they want, just like a vinyl record.

"How much does this machine cost?" someone asked soon.

The salesperson smiled and said, "Our cassette player is priced at 328 yuan. As a promotion, we will give away three cassettes of different songs, valued at 3 yuan."

"15 yuan for a tape? So expensive?" Many people were surprised.

The player is fine, but a simple tape costs 15 yuan.

The salesperson explained: "There are more than a dozen songs in this tape, and each song costs only 1 yuan on average. Moreover, the tape is very strong and will not break even if it falls to the ground from a normal height. It is much better than a vinyl record."

After hearing the explanation, many people felt relieved. In comparison, it is indeed much more convenient than vinyl records, except that the sound quality seems a little worse. However, the price is much cheaper. There are many people in Hong Kong who have televisions, but not many families have vinyl records.

The salesperson also continued to smile and answer customers' questions. Many people were very interested in the player. Just being able to listen to any song they wanted was attractive enough. You know, although there was music on TV and radio, it was not something you could control. Now you can do it, the temptation is not small.

The next day, Yang Wendong had just arrived at the office when he saw Wang Zhiqun and Liu Huayu waiting outside. He smiled and asked, "What's up? Was the sales data of the tape player yesterday pretty good?"

Wang Zhiqun smiled and said, "Yes, we sold a total of 168 cassette players yesterday."

"168? That's not bad," Yang Wendong nodded and said, "What about the tapes? If three tapes are given as a gift, how many people will still buy them?"

Wang Zhiqun replied: "We sold 785 tapes yesterday, excluding the free ones, so we sold 281 tapes in total."

"Okay, then we will continue to promote it and try to sell it in some large shopping malls other than Carrefour." Yang Wendong added: "We can also invest in advertising. I want to let citizens in Hong Kong who have financial resources to buy these players as quickly as possible."

Only when there are more players can it stimulate more singers to release wonderful music, which in turn can promote the sales of players.

The same is true for overseas markets.

"Okay, I will place more advertisements on TVB." Wang Zhiqun agreed and said, "Qi Sheng and Qin Sheng will also produce more music tapes, but they may need to negotiate with some celebrity companies."

"Well, as long as there are benefits, they will agree." Yang Wendong nodded and said, "If this market grows, everyone in Hong Kong's music industry will benefit."

Although music players can make money, what he values more is the development of the Chinese music industry. Being able to promote this will also make it easier for him to promote Hong Kong's cultural industry in Asia.

PS: Please give me a monthly ticket
(End of this chapter)

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