Chapter 1343 – Changing mindsets
“Manager Feng, can we make money this time?”
“Don’t worry. Thewyers I hired are the best in the world. Although I can’t say they can twist the facts, they can change everything to benefit with any slight opening! Theirwyer fees are not a small amount. I told them they would be getting half of thepensation as their fees. If you don’t agree, I can pay them from my pocket.”
“No need. How can I ask you to pay for us? Furthermore, it will be deducted from thepensation.” Station Chief Jia is smart, and he knows thewyers will do their best to get the highestpensation from thosepanies.
Also, they have no reason to ask Feng Yu to pay thewyer fees, as CCTV will gain from this.
“Chief Jia, CCTV has sold thosepanies’ advertising slots to others to prevent rumors. But you all must give us discounted price next year.” Feng Yu looks at Station Chief Jia.
“Hahaha... no problem. Other than the primetime slots, you can pick any slots you want. I will give you a 5% discount!”
Feng Yu smacked his lips. Is 5% a lot?! How can you make it sound like it’s so generous? But he also knows the money will not go to Chief Jia, and that’s the most he can offer within his authority. Anything more, he will be investigated.
“Oh, you all should put in more effort when inspecting advertisements. You all should not be looking at how much the other party offers. You should be thinking of protecting our domestic brands’ interests. Our domestic brands can only venture overseas after they secure a good footing here.”
For example, the local chemical products are suppressed by overseas brands. It’s fine for foreignpanies to advertise in China. Still, Feng Yu does not like those brands portraying themselves as superior to the local brands.
This is a serious issue if people are caught in this mindset. In Feng Yu’s previous life, more than 60% of China’s chemical product market share are own by foreignpanies.
It can be considered a monopoly, and Feng Yu does not want to see it happening again in this life. Those products are daily necessities and must be own by localpanies.
Chief Jia also understands this, and the higher-ups have started to support China’s local brands andpanies. Although they had not announced they would be boycotting overseas brands, it is very obvious.
Stopping these overseaspanies from advertising their products on CCTV will lower their exposure and increases the localpanies’petitiveness.
“Chief Jia, all the advertising expenses will be paid by the consumers at the end. The money CCTV earned from the advertisers is from our people. A bottle of shampoo might cost 15 RMB. But after advertising, it bes 24 RMB. Advertising will increase the profits and cover the advertising cost.”
Chief Jia realized that he had been helping foreignpanies make money from their people.
Chief Jia also doesn’t know that advertising on CCTV can increase the value of a product by so much.
Thosepanies will introduce a new ‘form,’ repackage an old brand with nicer packaging and sell their products at higher prices. The new ‘form’ only increases the foam and scent and is not much different from its previous version.
Many people buy products that are advertised because they think the products from big brands are better. How can the products that are advertised on TV have problems? In fact, many smaller brands’ products have better quality, but they just cannot afford to market them.
If the foreignpanies are restricted from advertising, the local brands will have an opportunity to seed.
When people started to realize domestic products are better, they will change the mindset of foreign brands.
“I will tell my staff to check thepany when selling advertising slots. Although we cannot stop thosepanies from advertising, we can secretly stop them from winning the bids for the slots.”
Chief Jia looks at Feng Yu. He had learned this trick from Feng Yu.
Look at those two C giants, Tong Yi, Kang Shifu, etc. They were doing well initially, but their development slowed down drastically after losing the most important marketing channel. Although their sales are still rising steadily, they have lost the opportunity to be the market leaders. They are currently not even in the top fivepanies of their industry.
Lehaha alone can crush them. Kang Shifu and Tong Yi, one of the earliest instant noodle brands in China, are surpassed by Lehaha. An instant noodlepany took over the No. 2 spots under Beidacang Group. The third spot went to another Chinese state-ownedpany. The fourth and fifth spots went to two privatepanies focusing on low-cost strategies. Their instant noodles only cost 1 RMB.
Thesepanies were market leaders in China in Feng Yu’s previous life, but in this life, they are suppressed. These fewpanies’ values keep dropping.
The brand value of a market leader is several times more than a brand in the seventh spot. Although their sales are increasing, the rate is getting slower. Other brands can overtake them easily, and their brand value is falling.
Once a brand’s value falls, the profits will also drop.
“Chief Jia, you all are critical to our domestic brands. A brand can be sessful if they have good products and marketing. CCTV will y a major role in this.”
“This is nothingpared to you. Tai Hua Supermarkets is badly affected after removing thosepanies’ products from the shelf, right?” Chief Jia asked.
“There is some impact, but it is also an opportunity. We can establish our supermarkets’ value. We are also going to seekpensation for their false advertising. Our Tai Hua Supermarket Group is huge, and the amount we are seeking will be very high. Tai Hua Supermarket Group will sue them after the intepanies.”
Forcefully removing those brands’ products from the shelves had made many people angry. But the public opinion on the inte is all on China’s side. Anyone who speaks up for those foreigners is called a traitor!
Tai Hua Supermarket Group had earned praises from the people for removing these products. News of Tai Hua Supermarket Group rejecting thosepanies’ offer of high payments to sell their products had spread.
Three dayster, the hearing for this case started.