Chapter 68: On Sale
"That's impossible!"
Hearing Li Dongling's words, Ning Wenkai immediately said, "Ning's Trading Company is responsible for tariffs, warehouses, promotion, publicity, public relations, and other costs. If there is only 20% profit, our final profit will be too low!"
Looking at Ning Wenkai, whose attitude was firm, Li Dongling said to her, "If the two sides reach a cooperation, in the future, Ning's will not only represent the Silver Mink mouse, but the agency rights for Dongling High-Tech's other products in Hong Kong and other places will also be handed over to Ning's Trading Company!"
Establishing direct-operated stores and laying out sales channels was a time-consuming and expensive thing. In the short term, or rather within three to five years, Dongling High-Tech would at most establish some directly managed stores in the country. Overseas, they could only choose the agent model.
Take a most direct example. Why have the seven major Hollywood film companies been prosperous for decades, and they have always been the seven of them? It wasn't that other film manufacturers hadn't risen, but they all had to live by relying on them. The key was the distribution system!
After a film company makes a movie, it's impossible to find cinemas one by one, so they need to find a distributor. A distributor can allow a movie to be released on the same day in hundreds or thousands of cinemas in dozens of regions around the world.
But this is only the first step for a distributor. Just letting a movie be released in cinemas doesn't count for much. Subsequently, the distributor will also make the movie into videotapes, discs, etc., for sale. This step might earn even more than the movie's release.
A movie might lose money during its release, but through the distribution of videotapes and discs, it might earn back the money it lost. After discs, it's sending the movie to pay channels, then to free channels, and earning another sum through advertising shares.
Relying on the production company itself to find cinemas for release might only earn one yuan, but relying on a distribution company, it could earn back fifty yuan, and even subsequent movie peripherals, etc., earning back one hundred yuan was not impossible. Even in the internet era, it's impossible to replace offline distribution channels.
In the future, Dongling High-Tech will definitely establish its own sales channels. Even in the e-commerce era, offline stores are one of the most important stores, not to mention now. If there are powerful publicity and sales channels, even a bad movie can get hundreds of millions of dollars in box office. Even a piece of scrap iron can be sold for a large order.
Ning Wenkai shook her head. She was ready to stand up and leave. If the Silver Mink mouse was a hit product, that would be one thing. A 20% share, even if it finally fell into Ning's Trading Company's hands, with only 10% or even less left, could still earn quite a bit by virtue of huge sales.
But now, the mechanical Silver Mink mouse was not an irreplaceable product. In places like Hong Kong, it was also more famous than it sold. Just representing the Silver Mink mouse, she felt that she really couldn't earn much, and the agency fee might even be lost.
Seeing her expression, Li Dongling looked at Yao Luoying, who took out an exquisitely packaged gift box and placed it in front of Ning Wenkai.
"This is 'one of' Dongling High-Tech's new products. President Ning can make a decision after reading it."
Ning Wenkai, who had already stood up slightly, looked at the gift box in front of her, hesitated slightly, and sat back down.
The factory pre-sale price of the electronic pet machine was 15 US dollars, which required 120 yuan in RMB. With such a high price, the packaging naturally couldn't be simple.
Opening the packaging box, Ning Wenkai saw the electronic pet machine inside. In addition to the manual, there were two spare button batteries.
At first glance, Ning Wenkai couldn't help but pick it up. After reading the manual, setting it up, and entering the page, just like Yao Luoying the other day, when she raised her head, a few dozen minutes had already passed.
Rubbing her sore eyes, the screen of the electronic pet machine was only 1.5 inches in size. Ning's Trading Company was an agent. Ning Wenkai had the most basic judgment on whether a product was good or not!
Whether the thing in her hand could become a hit, Ning Wenkai wasn't sure yet, but she was clear that this thing could definitely be sold, and it might be welcomed by young people!
Ning Wenkai's background allowed her to have much richer material conditions than ordinary girls. Even she, who had used luxury goods and eaten fine food, had fallen into it just now, not to mention others.
"Ning's Trading Company is willing to represent the electronic pet machine. We can accept a 20% profit share. Including the Silver Mink mouse, Ning's Trading Company is willing to pay an agency fee of 9.2 million Hong Kong dollars. This is the maximum agency fee Ning's Trading can give after retaining working capital.
But Ning's Trading Company must get the exclusive agency rights for Dongling High-Tech in Hong Kong, Korea, Japan, and other places for three years!"
Ning Wenkai had a decisive style. After making a decision, she didn't have any hesitation and directly took out the biggest bargaining chip.
"Deal!"
After Li Dongling, Yao Luoying, Hu Zixian, and others discussed in a low voice, he said to Ning Wenkai, "But Ning's Trading must invest enough publicity funds for the electronic pet machine together with Dongling High-Tech!"
Ning Wenkai agreed without hesitation, "I need to take some samples back and send them to the distributors!"
At this time, Ning Wenkai didn't think about vacationing at all, just thinking about returning to Hong Kong immediately, contacting various distributors, and preparing to publicize and stock up for the electronic pet machine.
"Dongling High-Tech must ensure that products can be supplied in time!"
Before leaving, Ning Wenkai didn't forget to explain to Dongling High-Tech. The technical barrier of the electronic pet machine was not high. Once it was promoted and really sold well, there would definitely be pirated and fake goods appearing. They must start large-scale stocking as soon as possible.
When Ning Wenkai left, she was much more hurried than when she came. Before boarding the plane in the provincial capital, she called the Hong Kong trading company and asked them to start contacting various channel merchants.
After reaching a cooperation with Ning's Trading, every department of the entire Dongling High-Tech started to get busy. The Dongling High-Tech electronic industrial park also started to produce electronic pet machines at full power.
When Li Dongling arrived at the electronic industrial park, the industrial park was already bustling with activity. Multiple construction teams were building the office building, dormitory building, and activity center of the electronic industrial park, and in the simple workshop, the production line also started to produce continuously in three shifts.
"What is the daily production capacity now?!" Li Dongling asked Gao Peng, who was temporarily managing the industrial park.
In the future, professional managers would definitely be recruited to manage the industrial park, but now, it could only be temporarily managed by Dongling High-Tech executives. Not only Gao Peng, but Yao Luoying, Hu Zixian, and Zhang Ao would also come over to help from time to time.
"Now the daily production capacity of the electronic pet machine is 7,000 units, and the production line is still increasing. This week, if all are put into production, the daily production capacity is expected to reach about 15,000 units. Over at the warehouse, there is already an inventory of nearly 300,000!"
Gao Peng, with dark circles under his eyes, said to Li Dongling. He had basically been staying in the industrial park during this time, dealing with various problems to ensure the normal operation of the production line.
"Not enough!"
Li Dongling looked at Gao Peng, "The production capacity needs to be increased. Before the electronic pet machine officially goes on sale, the daily production capacity must be increased to at least over 30,000!"
"30,000?!"
Gao Peng was startled. According to such production capacity, in one month, the warehouse would have to pile up millions of electronic pet machines. It sounded scary.
"It might still not be enough!" Li Dongling looked at the busy production line and shook his head.
In Japan, one of the world's largest toy giants, Wan Dai, was holding a conference call. Wan Dai's second-generation president, Yamashina Makoto, was listening to Wan Dai's global executives reporting various "bad news." Yes, not a single piece of good news!
"The Pinpin game console developed in cooperation with Apple currently has a global sales volume of less than 40,000 units, and the inventory piled up in the warehouse exceeds 460,000 units. If it can't be sold, the estimated direct loss will exceed 170 million US dollars!"
The person in charge of Wan Dai's game console business said this in a trembling voice.
Since Yamashina Makoto succeeded his father, Yamashina Naoharu, to become Wan Dai's second-generation president, he was not satisfied with Wan Dai only being in the toy and anime industry. He was ambitious about the game console industry.
This Pinpin game console was developed by Wan Dai in conjunction with the famous Apple. As a result, Yamashina Makoto spent a lot of money, and the result was this pile of stuff. Whether this product would become Apple's dark history is not mentioned, but what gives Yamashina Makoto a headache now is that because of this product, Wan Dai's revenue directly lost 8%, with losses exceeding 15.6 million US dollars, creating Wan Dai's worst performance in history.
Misfortunes never come singly. The toy business, which had always brought stable cash flow to Wan Dai, also started to sell poorly. In America alone, revenue was 200 million US dollars less.
The game console suffered a crushing defeat, and toys couldn't be sold. With Wan Dai's performance lagging, the stock price also plummeted. The voices of dissatisfaction with Yamashina Makoto, asking him to hand over Wan Dai, were also wave after wave. Even Wan Dai's first-generation president, Yamashina Naoharu, expressed his dissatisfaction with him.
Hurriedly ending the conference call, Yamashina Makoto covered his face with his hands, feeling deep exhaustion. If Wan Dai's performance didn't improve, it wouldn't be a question of whether he stepped down or not. Whether the Yamashina family could keep Wan Dai was also a problem!
The Yamashina family's equity in Wan Dai was only 10% left. If Wan Dai's stock price fell further, Yamashina Makoto might really be driven out of the company established by the Yamashina family itself.
"President Yamashina Makoto, this is a trading company in Hong Kong that wants to cooperate with us to sell a new product!"
The office door was pushed open, and an assistant walked in, placing an electronic pet machine in front of Yamashina Makoto.
Looking at the electronic pet machine in front of him, Yamashina Makoto, who had never been interested in toys, just took a look. Seeing the plastic-bodied electronic pet machine and then seeing its simple gameplay, Yamashina Makoto immediately lost interest and just said casually, "Let the marketing department handle it!"
Inside a large shopping mall in Hong Kong, today happened to be Sunday. Many families were dragging their families to the mall, making the mall crowded, but the most lively place was definitely the counter selling toys and snacks. ===== CHAPTER 69 =====
End of Chapter
