Chapter 561 Development of the Electronics Industry in Hong Kong

Wang Zhiqun replied: "If you calculate it this way, it can probably be reduced to around two or three hundred."

"That's still too expensive for Hong Kong people." Yang Wendong frowned;
In the past decade, Hong Kong's economy has developed rapidly, including industry, real estate, finance, shipping, etc. The wages of ordinary people have also started to rise, and many workers have earned hundreds of yuan a month.
But an electronic watch that costs two or three hundred yuan is too luxurious for them and completely unnecessary, especially when they already have cheaper mechanical watches.

Wang Zhiqun said: "Yes, let alone Hong Kong, even in Japan's economy, not many people would be willing to spend this money to buy an electronic watch that they have never seen before, whose accuracy may not be better than that of a mechanical watch, and the battery needs to be replaced;

The best customers are the United States, where people are more receptive to new things, especially Silicon Valley, and where there is money and a greater ability to bear. "

"Yes, for this kind of special electronic product, the first launch target is indeed only suitable for the United States." Yang Wendong nodded and said.

New electronic products are expensive, and if they are not disruptive, they are indeed for the rich to play with. Even personal computers a few years later were said to be for every family, but in the early days they were basically for the rich to play with.

In the future, I will rely on my creativity to enter some industries that have not yet been invented. In the early stages, I can only rely on the American market. Otherwise, it is unrealistic to sell a computer made for tens of thousands of Hong Kong dollars in Hong Kong or Japan.

Wang Zhiqun added: "Best Buy in Los Angeles has already opened. Once I have completed the testing here, I can send some of the products over there for them to test the waters."

"Okay, let's wait and see the results." Yang Wendong didn't really care.

Electronic watches will definitely be popular in the future. Even if I fail, it will not affect this development. Electronics will gradually replace mechanical ones at many levels.

As long as we have a good grasp of technology, production, industrial chain, channels, etc., we will definitely be able to get a share of the pie when the market explodes. On the contrary, there is no rush to deal with the early sales.

Bai Yushan picked up a watch, put it on her wrist, and asked, "Mr. Wang, aren't these watches too plain? Do you want to consider making them in different colors and shapes, or even with some cartoon characters? This way, many girls and children might be attracted to them."

"That's a good idea." Yang Wendong praised, "Men's products are generally simple, while women's products are the opposite. Making them look good is also a strong plus point. Watches themselves are a kind of display product."

The characteristics of a product are not only its quality and technology, but also its appearance, especially if it is something that is meant to be seen or represents status.

Take cars for example. Even if their performance is not that good and their quality and technology are average, if they look very good, they may have a very good market.

Since its birth, watches have become a symbol of status, but electronic watches are not very good in this regard. Although they have defeated mechanical watches in history, they are not up to par in terms of status.

However, it shouldn't be a problem to make it look better and attract some female consumers.

Wang Zhiqun agreed and said, "Okay, I will redesign some other colors."

"Okay, that's it. How long will these tests take?" Yang Wendong didn't ask any more questions.

He is also full of confidence in the future of electronic watches, but he does not expect to make a lot of money from it. Once this industry becomes popular, anyone can do it and there is almost no unique advantage. Originally, the electronic watch industry belonged to Japan, but in just a few years, it was snatched away by Hong Kong, Taiwan, Singapore and other countries.

However, for Yang Wendong, controlling the liquid crystal and transistors at the front end would also be a good method.

Wang Zhiqun said: "It is estimated that it will take another month. The main purpose is to measure data in winter, summer, humid weather and other environments. There must be no problems in different environments. The risk is very high;
If there are no problems, it can be sent to the United States.”

"Make some more and send them to the middle and senior management of Changxing Group so that they can experience it for themselves and share any ideas or suggestions they have." Yang Wendong said. "No problem." Wang Zhiqun agreed;
The few of them then left the test room and came to the eighth floor, the highest floor above. Looking ahead, they saw a large number of factory buildings, among which the three letters RCA were very obvious.

Yang Wendong asked: "What is the current monthly production capacity of the RCA factory?"

Wang Zhiqun replied: "We produced almost 7000 color TVs last month, but they are all 30 inches or larger, and are very valuable, much more than our 6 black-and-white TVs."

"That's normal. They have channels in Europe and the United States. We can't compare with them." Yang Wendong said with a smile.

Wang Zhiqun also said: "Yes, but the channel is one aspect, the most important thing is brand awareness. RCA TV sets are basically easy to sell in the United States. If they are put in the Commonwealth, as long as the salesperson introduces them, customers will seriously consider them. We are far from comparable in this regard."

"Just take your time." Yang Wendong shook his head and said, "It often takes ten years to operate a brand. Even Japanese brands take a long time to succeed in the United States today."

"Yes." Wang Zhiqun also said.

Yang Wendong asked again: "Didn't we talk about cooperating with Whirlpool to build a joint venture factory for air conditioners and refrigerators in Hong Kong? How is the negotiation going?"

If you want to build your own brand, the core is to have your own technology and industrial chain, so that you can succeed. If you want to achieve this quickly, using foreign investment in Hong Kong is the best model;
Similar to the reform and opening up of the mainland in the past, after foreign companies came, they would gradually localize the industrial chain, and only after the industrial chain was established did they have their own national terminal brands;
Even the industrial chain is more important than the terminal brand.

Wang Zhiqun said: "In principle, there is no big problem. The cooperative capital investment is 2500 million US dollars to build a production line with an annual output of 10 air conditioners and 30 refrigerators. The two parties will share 64% of the shares.

But Whirlpool wanted to invest in technology and quality management in order to save $300 million in investment costs, which I could not accept, and the two sides were stuck here. "

"These foreigners are really vicious. I have already allowed them to use old equipment as new equipment, but they still want to save this money." Yang Wendong shook his head and said.

When two parties form a joint venture, they don't just contribute money. Someone will always contribute connections, resources, equipment, technology, etc. These things often need to be converted, and this is where there is room for tricks. Whoever has the ability can make money from this cooperation.

We are all doing business, so naturally we will do whatever it takes. Foreign-funded factories have production lines, so they will naturally estimate the price high. A common practice is to refresh old equipment and then calculate the price of new equipment. Many times, the other party has no choice but to accept it even if they know it, because it’s your fault that you don’t have the technology.
Of course, all crows are black, and we have our own ways, such as land discounts, labor conversions, etc. Everyone is the same, but relatively speaking, the party with technology will definitely have more advantages.

Wang Zhiqun smiled and said, "Yes, this kind of thing is also very common in international cooperation. Generally, we just talk about it and it will be almost done. As long as the factory is settled in Hong Kong, we can control the supply chain in the future and control them."

After all, it is their own territory. When the early projects are not implemented, the foreign parties are strong, but once the factory is built, the advantage belongs to the local forces.

Of course, Honor Electronics is also sincere in cooperating with overseas companies and will not cheat people too much. At least it has some brains. From the perspective of long-term profitability, mutual benefit and win-win are still needed.

"Okay, then we'll continue to talk to them. We won't agree to some outrageous requests, but the rest will be fine. The most important thing for us is to establish an industrial chain in Hong Kong." Yang Wendong added, "North Point will become the electronics industry center of Hong Kong in the future, and we urgently need several large foreign-funded factories."

Although my future plans will involve computers, arcade machines and other high-tech products, it is estimated that these will not be able to be put into scale until nearly 10 years later;

Hong Kong's current electronics industry still needs to rely on the traditional home appliance industry, and this industry is also what Yang Wendong is eyeing. It has a scale of hundreds of billions. After his success in Hong Kong, he will be able to obtain a huge market and a huge production base after the reform and opening up of the mainland, and then counterattack European and American brands.

However, the prerequisite is to obtain some basic skills and quality, otherwise it will not work if it is too bad;
The current layout of the North Point Industrial Zone in Hong Kong is for this purpose.

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(End of this chapter)

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