Chapter 2690 Brand Value

"Brand Value?"

"Yes, because of the OEM phone."

"Um……"

Zhou Buqi basically guessed Zheng Zaihao's negotiation strategy.

The Hynix mentioned before is actually a bait, using priority and exclusive rights to attract Asda. I hope that Hyundai Mobile Phones can continue to cooperate with Asda in the long term.

It seems that the previous judgment was wrong.

Hyundai Mobile hopes to switch the flash memory chips of OEM machines to Hynix. This is not causing trouble for Asda, but giving Asda an opportunity to reorganize and upgrade the supply chain system.

This is a bait.

Except for modern mobile phones, no mobile phone manufacturer can obtain customized services from a semiconductor giant like Hynix.

Now, Asda has the opportunity to take over such a clause from modern mobile phones.

How can you not be moved?

The real purpose of Hyundai is actually the "brand value" that Zheng Zaihao will talk about next.

Not to mention, Zheng Zaihao's level is quite high.

Zhou Buqi even wondered if he was a member of the modern Zheng family. It was probably just Zheng. The Zheng family's genes have been passed down for two or three generations, so they may not be able to produce such outstanding offspring.

Zheng Zaihao sighed and said worriedly: "In the past, the sales volume and market share were relatively low, so that's it. But now the sales volume has increased, second only to Samsung mobile phones in the market, it will inevitably attract the attention of all walks of life. ."

Zhou Buqi narrowed his eyes, "Attention?"

Zheng Zaihao said: "Actually, it's mainly Samsung. They have regarded modern mobile phones as their main competitor. The Korean market...the market here is quite special, and national sentiments have a heavy weight. Many people have said on social media It’s said that the modern mobile phone he bought in South Korea is exactly the same as the Asda mobile phone he bought abroad!”

"Well……"

Zhou Buqi twitched the corner of his mouth.

Zheng Zaihao continued: "There were even professional technology media who dismantled our modern mobile phones. They also bought a few Asda mobile phones and disassembled them. Then they discovered that the two mobile phones were not only identical in appearance. , even the internal structure is exactly the same.”

Zhou Buqi was helpless.

He can understand the worries and dilemmas on the modern side.

This is indeed a problem that must be solved!

Even more important than making money!

If all Koreans discovered the truth, it turns out that modern mobile phones are just foreign mobile phones with a cover, wouldn’t this be an insult to the country? Not only will this OEM mobile phone business be finished, it will even affect the brand value and brand image of "Modern"!

Use yourself to save others.

Zhou Buqi felt that it was very reasonable that the other party would make some demands this time. If this kind of thing happened to him, he would definitely take action more decisively, and his attitude would not be as humble as the Koreans.

The previous person in charge of the mobile phone business was dismissed, most likely because of this responsibility.

There is a strategic deviation in the OEM business, which will affect the "modern" brand!

Zhou Buqi asked: "Can we continue to cooperate with OEM machines?"

"No, no..." Zheng Zaihao explained quickly, "We still hope to continue to cooperate with Asda. Now in the Korean mobile phone market, Samsung has become the dominant player, and it is no longer difficult for other local companies to compete with Samsung. In addition to the people behind it, I don’t think anyone else can compete with Samsung’s Asda, which you control. Not even Hyundai!”

Zhou Buqi smiled and was in a good mood. He felt that this man had a calmer and clearer mind. "What kind of adjustments do you think should be made to the cooperation between the two parties?"

Zheng Zaihao said: "I have two options here. The first is to continue the previous cooperation model with OEM machines. However, the mobile phones supplied to Hyundai must be different from other Asda mobile phones in terms of style and configuration. The distinction should be exclusive supply. Asda will produce several modern mobile phone models specifically for the Korean market."

The current OEM machines are so embarrassing for Hyundai.

Many people disassembled the phone and took a look, Huh?

Something doesn't feel right!

How come this modern mobile phone is exactly the same as an Asda mobile phone?

This can easily lead to criticism.

The dignified Hyundai Group cannot afford to lose this person. But I want to make money from the OEM business, what should I do?

This requires Asda to develop some new models of mobile phones, affix them with Hyundai trademarks, and sell them in the Korean market under the name of Hyundai mobile phones.

Modern mobile phones are different from Asda mobile phones, which can end many disputes in the market.

It's not impossible to do it this way.

Generally speaking, for each new mobile phone, there may be dozens of models and alternatives during the design and development stages. After layers of screening and iteration, 3-5 plans were left and submitted to the CEO.

Then the CEO decides and finalizes a final plan.

The entire team will then focus on this final plan to complete a series of development, testing, assembly, and production processes.

If among these 3-5 plans, we take the best one and develop it as Asda's new flagship phone, and then we take an alternative plan and develop it into a modern mobile phone flagship phone.

The two plans are not the same.

But almost.

The overall cost will be more economical than developing two models specifically.

Of course, the cost is definitely higher than the previous strategy of selling one model all over the world. At least in the manufacturing and production process, two molds need to be created and different production lines are required.

As long as modern mobile phones and Asda mobile phones have different models and configurations, it will be difficult for them to be discovered by the outside world when they are sold as OEM.

Zhou Buqi thinks this is a relatively feasible plan.

Zheng Zaihao continued: "Another option is for Asda and Hyundai to set up a joint venture, with both parties holding 50% of the shares. Then, in the name of this subsidiary, they will develop Hyundai mobile phones. When profits are generated, both parties will make equal contributions every year. Dividends.”

Zhou Buqi nodded.

There is no rush in making decisions.

This second option has obvious shortcomings. It will increase the complexity of management, and the management costs, labor costs, development costs, design costs, and tax costs will all increase greatly.

Especially since both parties each hold 50% of the shares, once there is a disagreement, who should listen to it? You are responsible for production and I am responsible for sales, which can easily lead to factional fighting within the company.

However, the advantages are also obvious.

Establishing a joint venture as a subsidiary can firmly tie both parties together. Zhou Shaoning is very worried that Hyundai Mobile will increasingly interfere in the design and supply chain selection of OEM machines, until eventually Hyundai Mobile gives up cooperating with Asda and goes it alone.

As a result, Asda completely lost the Korean market.

Today's OEM machines are very competitive in the Korean market because this is the early stage of the industry and Samsung mobile phones have not yet monopolized the Korean mobile phone market. In the minds of Korean consumers, the concept of "mobile phones = Samsung" has not yet been formed.

Once modern mobile phones are launched, they will definitely not be able to beat Samsung.

The final result will inevitably be Samsung's monopoly on the Korean mobile phone industry.

When modern mobile phones react, and then cry for father and mother and want to cooperate with Aisda, Aisda can only be determined to kill the thief, but there is no way to save it.

Once a monopoly is formed, it is difficult to break.

This is what Korean mobile phone manufacturers will do in the future. First, I did it myself, but found that it was no match for Samsung, and I was beaten to pieces.

Later, I was surprised to find that Chinese smartphones are very powerful!

No worse than a Samsung phone!

Then, several companies in South Korea came to seek help from domestic mobile phone manufacturers, asking them to help produce OEM machines, including Kakao, which has become a new generation of technology plutocrats.

But it was already too late by then. South Korea’s mobile phone market had become the back garden of Samsung mobile phones, and it was already difficult for outsiders to enter the market.

What Zhou Buqi and Zhou Shaoning are most worried about is that the people in the Hyundai Group are confused. They really thought that they were good enough to compete with Samsung, and then gave up the cooperation with Asda...

That's bad.

Not only will Hyundai completely lose its mobile phone business, Asda will also lose a business that can generate hundreds of millions of dollars in net profits every year.

If the two parties establish a joint venture, this hidden danger can be fundamentally eliminated.

Two options, how to choose?

Zhou Buqi prefers the first option.

Establishing a joint venture is really troublesome. It would be strange if two families are forced to live together without fighting. It is better for you to live your life, and for me to live mine, and we can cooperate through contracts and negotiations when something is produced.

However, it was not easy for him to decide on this matter without authorization.

It will have to be discussed by the CEO of Asda.

Overall, Zhou Buqi is quite satisfied with the attitude shown by Hyundai. The model of cooperation needs to be changed, but it should not be random interference without reason.