Chapter 864 – Aiwa is here again
With Director Fang’s help, two Network Access Licenses are granted to Aiwa and Wind and Rain.
The mobile phone’s distribution channels are the same as pagers. The channels include small retailers, exclusive stores, Tai Hua Supermarkets, and Post Offices.
The most reliable sales channel is still the Post Office. The Post Office had set up a subsidiary, Post Office Pu Tai, to sell telecommunication devices and had achieved excellent results.
Feng Yu had reached an agreement with Post Office Pu Tai to let them sell Aiwa and Wind, and Rain brands of mobile phones and the distribution fee is 8%.
With such high distribution fees, Post Office Pu Tai’s staff will recommend these two brands of mobile phones to their customers first.
Last year, Aiwa pagers’ sales were comparable with Motorola and had become the market leader for the Chinese characters pagers. Their profits had exceeded Motorola and own more than 40% market share in China.
Aiwa introducing their own mobile phones can be easily accepted by the consumers. Just like Motorola, when consumers hear the brand, their impression of their mobile phones will be of good quality as it is a big brand.
Although Wind and Rain had introduced pagers, Wind and Rain brand is more well-known for their home appliances and electronic devices. Now, they are introducing mobile phones, their loyal customers will also buy them.
Aiwa Electronics also helped AIWA to produce smaller batches of mobile phone to be exported to Japan. Aiwa will not ship their mobile phones to the overseas market as those markets will be using the Wind and Rain brand.
One month later, the first batch of Aiwa mobile phones and Wind and Rain mobile phones was officially launched in China!
Feng Yu called CCTV, and Station Chief Jia immediately help him change the TV commercials. In China, only Feng Yu gets to enjoy this special treatment. Others can’t change their ads as and when they like!
This is because Feng Yu bought the most advertising slots and paid the most to CCTV. He also did not reject CCTV’s requests whenever they need help. Also, Station Chief Jia had already treat Feng Yu as his good friend.
“Aiwa Mobile Phones, the mobile phone for Chinese! Aiwa Electronics, I love China!”
It is the same classic brand message, and the commercial only shows a mobile phone and a person’s hand.
“Wind and Rain Mobile Phones, been through Wind and Rain. Aiwa Electronics, Master of Core Technologies!”
When these two commercials appeared on CCTV 1, many Chinese viewers noticed it immediately. Most of the viewers could already memorize the slogans of these two companies.
The people who wanted to buy mobile phones have new choices now. All of them want to see the quality of these domestic produced phones.
If these are other Chinese brands of phones, most consumers will doubt its quality. But Aiwa and Wind and Rain had been China’s top brand. Their products are considered branded products.
When the consumers went to Post Office Pu Tai, they noticed that mobile phones are about the same as those imported brands and are much cheaper. They also heard rumors that the government leaders were using mobile phones from these two brands and were almost sold out the moment it was placed on the shelves.
Feng Yu had taken advantage of the Government’s policy on procurement. Since Feng Yu suggested to Director Fang on protectionism, the Central Government issued an internal order on the government agencies’ purchase. They must consider China’s domestic brands before others.
Although the order from the Central is for the various local governments and agencies to consider local brands, it is not a must to use local brands. But the leaders on the ground obediently choose domestic brands over overseas brands. Many of the leaders’ mobile phones were bought last year and the quality is too poor. After one year, problems like batteries cannot last, they can’t hear the other party clearly, the buttons are not sensitive enough and the phone cannot receive signal well, start appearing.
The repair cost of these mobile phones is a few hundred, but how many leaders are willing to use a repaired phone? They will replace their whole office furniture when a bit of paint is peeled from their office cabinet, let alone an old phone.
In the past, China only has one domestic phone manufacturer, Panda, and its production output is too low. Many people cannot buy them and the quality is inferior. But now, Aiwa and Wind and Rain phones are launched, and this is a good excuse for people to change phones.
We got to use Aiwa or Wind and Rain phones because of the Central Government’s instructions. What about our old phones? We can give them to our subordinates or family members. There will be no wastage!
Feng Yu did not expect the protectionist measures he suggested to Director Fang in the past had helped him.
The mobile phone sales spiked once it was launched. After the New Year, the sales will increase further. Also, the ones who bought the phone now will spread the words of their phones and more people will buy it.
……
“Mr. Schnepp, Mr. Schnepp, That Aiwa is here to snatch our market share again!”
Motorola’s China’s President Schnepp is in his office reading the previous month’s sales report. Their sales had increased slightly last month, but their pager sales had dropped. However, the profits from mobile phones are higher, and it is the company’s focus on the future.
Schnepp had a smile on his face when his assistant barged into his office without knocking. How rude?!
Wait, what did he say?
“What did you say? Who is snatching our market share again?” Schnepp thought his mandarin is not good enough and heard wrongly.
“That Aiwa brand, our main competitor in China’s pager market! They just launched their mobile phones!”
“What?! Aiwa is producing mobile phones? Where did you hear this from?”
“They had already advertised on TV! Wind and Rain also introduced their brand of mobile phones. Should we have some counter-measures against these two brands?” The assistant asked.
“Of course! Every additional competitor means we will have a smaller slice of the pie. Get someone to buy all their phones model and check their phone’s specs.” Schnepp ordered.
Schnepp was not very worried as mobile phones are different from pagers. The technologies involved are more sophisticated and the operating system is complicated. Aiwa pagers might be selling well in China and Wind and Rain pagers had been exported to Russia, but those are pagers. Only 10% of the pager companies worldwide manufactures mobile phone concurrently. This is the difference between pager and mobile phone technologies!
Furthermore, Schnepp is from Motorola. The leader in mobile devices. No matter pagers or mobile phones, they own most of the market share. In a protectionist country like Japan, their sales might not be good, but in China, they still have not met any formidable competitors. Motorola still holds the most significant market share, over 60%, in China!
So what if these two brands introduce mobile phones? There’s nothing to be alarmed off.