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Chapter 55 Channel is King

Author: Dr. Yingman

In this regard, Lin Chen said that he had nothing to do. Before the release of Sugon Mobile, Sugon Mobile actually made an announcement about holding a dealer conference.

But after the news came out, other large provincial dealers and local small city-level dealers did not come.

Because they simply looked down on Sugon Mobile. Although Sugon Mobile gained some fame by suing Jinli Mobile, it was not enough to move them.

Only the local mobile phone stores in Pengcheng knew the origin of Sugon Mobile and the strength of Lin Chen.

Therefore, after the dealer conference announcement was issued, there was a feeling of loneliness, and only local mobile phone stores agreed to come.

Faced with this situation, Lin Chen agreed for the purpose of a certain sales strategy.

After that, the Sugon A1 mobile phone was released. When those dealers saw how powerful the Sugon A1 mobile phone was.

When they felt as if their faces were being slapped, they all changed their decisions and thought about jumping in line to attend this dealer conference.

Naturally, Lin Chen would not refuse this, so in the end, local mobile phone stores competed with those large provincial dealers.

At this time, the reason why there were so many large provincial dealers and small dealers from other cities who could arrive in half a day was actually very simple.

At present, the estimated annual production and sales of domestic mobile phones nationwide is 20 million, of which Pengcheng’s production and sales account for 7 million units!

And why the annual production and sales volume of domestic mobile phones nationwide is expected to be 20 million, Pengcheng has produced 7 million units.

The reason for this is that there are a total of 17 mobile phone brands with licenses in the country, of which 5 are in Pengcheng!

These five companies are Kejian, Konka, Guowei, Tianshida, and ZTE. Each of them can sell hundreds of thousands or even millions of mobile phones!

And this does not include refurbished mobile phone factories, fake fake mobile phone factories, and regular mobile phone factories like Jinli Mobile Phones that do not have a license but rent licenses to sell mobile phones!

Therefore, Pengcheng's mobile phone industry is really strong in this era. Under such circumstances, mobile phone dealers across the country naturally like to gather here in Pengcheng.

It can be said that Pengcheng won the world. Although it is a bit exaggerated, it is also true that it won 40% of the world.

At this moment, looking at the hundreds of people in front of him, Lin Chen had a solemn look in his eyes.

Mobile phones can be divided into the feature phone era and the smartphone era. The biggest difference in marketing between the two is that in the feature phone era, channel is king.

In the smartphone era, due to the rise of online shopping, consumers can buy mobile phones directly from manufacturers, and they can also learn to compare the performance of mobile phones.

In this case, the slogan that channels are king has been somewhat shaken, and it only has a certain influence in rural areas. But even so, physical channels are still important.

In the era of smart phones that have become popular in 2010, many old brands of feature phones.

Rutianyu Mobile can still make a living by relying on the township channels it has built over the years, but its profits have declined and it is not as profitable as before.

Moreover, in the era of smartphones, the blue factory vivo and the green factory Oppo, two brands, have relied on the truth that channel is king to rise.

Because in the early days, their mobile phones were not dominant. Instead, they were criticized for being high-priced and low-performance. However, they had extensive sales channels in towns and counties.

Although the Internet is full of criticism, because the channels in towns, counties and cities are well established, the sales volume is lower than that of many smartphones whose price/performance ratio is far higher than theirs!

Later, after the collapse of Huawei Mobile Phones, they leapt beyond Sanxing, Meizu, OnePlus, Coolpad... and other mobile phone brands and became the second and third brothers.

Therefore, although the concept of channel is king is not as important in the smartphone era as it is in the feature phone era, channel is king is still a wise saying in the smartphone era.

At this time, Lin Chen undoubtedly wanted to compete with these local store owners and large provincial dealers or small city-level dealers.

Both parties will compete for their own profits here. At this time, either the manufacturer will earn more, or the dealer will earn more.

Although mobile phone manufacturers are apparently in a strong position, in reality many mobile phone manufacturers may not be able to earn as much profit from a single mobile phone as channel dealers!

Currently, a mobile phone manufacturer that sells 1,000 yuan has to earn at least 100 yuan, and usually earns 150 yuan or even 200 yuan.

The reason why you can only earn about 100 to 200 yuan for 1,000 yuan is because there are huge costs in making mobile phones.

Manufacturers need to purchase chips, find people to manufacture mobile phone motherboards, purchase displays, batteries, and other components. After that, they need to assemble and produce mobile phones, pay labor, and pay taxes...

If you rent a license, you will have to pay an additional 50 yuan for each mobile phone. In this case, the cost of producing mobile phones is actually quite high.

Therefore, in this era, it is normal for a mobile phone selling for 1,000 yuan to cost 400 yuan or even 500 yuan. After this, you will definitely not be able to sell a 1,000 yuan mobile phone to a channel dealer for the original price of 1,000 yuan.

You have to lose at least 250 or even 400 yuan, so you can only earn about 100 to 200 yuan from a mobile phone.

As for how much you can earn, it depends on whether your mobile phone has a hot selling point, or whether it is a well-known and hot-selling mobile phone.

If your mobile phone sells well, the dealer only needs to put it in the store and people will flock to buy it. This will keep the dealer’s inventory pressure low and make money.

Naturally, mobile phone manufacturers have stronger bargaining power, and it is not impossible to reach 300 yuan per unit.

If your mobile phone is an unknown brand mobile phone, your mobile phone has no selling point and it will be difficult to sell it.

In this case, the dealer will definitely not give you too much profit, and you can laugh if they give you a profit of 50 or 100 yuan per unit.

If you dislike the low profit offered by the dealer, then fine, we won’t sell your mobile phone, what can you do and sell it yourself?

If you can’t make ends meet and can’t sell, then just go bankrupt!

This is where channels are king!

Therefore, mobile phone manufacturers seem to be in a strong position, but they are actually in a weak position.

At least before the era of online shopping officially entered, and consumers learned to understand the performance of mobile phones and learn to compare brands and models, channel dealers usually held a strong position.

Taking a deep breath and looking at the more than 500 people in front of him, Lin Chen said with a smile:

"I believe everyone already knows who I am, Lin Chen Shuangmulin, Chen Guang Chen.

I’m glad that everyone is attending this dealer conference, let’s get right into the topic.”

"Pah, pah, pah, pah, pah, pah..."

After hearing Lin Chen's words, people applauded very proudly.

For a long time, after more than ten seconds, the applause stopped, and a PPT screen appeared on a small projection screen behind Lin Chen.

At the same time, Lin Chen also explained:

"We currently have two sales models for Sugon mobile phones. One is the Sugon Electronics direct-operated store model. This Sugon Electronics direct-operated store model offers the greatest discounts.
Chapter completed!
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