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Zhong Qingxian said and felt new products should have newer technologies. But their new product is getting worse. Although the new video camera is the smallest among all video cameras globally, its features are lousier.

“Don’t be anxious. This product is only an experimental product.”

Zhong Qingxian is relieved. This means they are only trying to clear some older components.

“We will be going to introduce cheaper DVs in the future, and we will sell it for less than 400 USD.”

“What? Did I hear it correctly? You are going to make it cheaper?! Manager Feng, will this tarnish our brand? We claimed to be ‘Often imitated, but NEVER exceeded!’ and this will let others think we can only make low-end products.” Zhong Qingxian is getting anxious.

Aiwa Electronics and Wind and Rain Electronics had poured so many resources into developing their technologies. But instead of improving their products, they are starting to go into low-end products.

“No. Didn’t you hear what Xu Lihua said during the product launch? Our target is to let every family own an affordable handheld DV! We don’t need to worry about the high-end market as we will continue to introduce professional video cameras.”

“Every family to own an affordable DV?! Will there be so many people buying it?”

“Old Zhong, you don’t know how ordinary families feel. They also want to go on vacations and take videos as keepsakes. It is like taking photographs when I was young during festivals. At that time, not many families can afford cameras. But now, our mobile phones can take pictures, and they can take pictures any time they want for printing. Which do you think is better? Videos or photographs?”

“This... should be videos as it has moving pictures and sound.”

“That’s right. The audio is very important, and the people in the videos are alive... Err... are moving. Another reason for introducing this cheap video camera is to dominate the market.”

“Many people, who buy this video camera, are not looking for clear footage because their TV at home is not HD. Our LED TV does not have high resolution and cannot even reach Standard-definition. Why do we need to take HD videos? The videos will be about the same on most TVs. Unless we increase the screen size, there will be no difference. How many people will watch the videos on large screens? HD standard is for the professional video cameras.”

“If the video quality of a 500 USD video camera is about the same as a 1,000 USD video camera, which do you think the consumer will pick? When they buy our product, Sony’s sales will slow down, and after we dominated the market, they will not get any market share.”

“After a few years, when this entry-level digital video camera is obsolete, our consumer-level digital video camera can replace it. A few more years later, the market for consumer digital video cameras will shrink, and the ones who will buy digital video cameras will buy professional cameras.”

“The consumer will switch to professional cameras? Professional video cameras cost around 3,000 to 4,000 USD. Will people buy a digital video camera that costs more than a Songjiang Genie?”

“Three years ago, how many people can afford to buy a mobile phone? How many people are using mobile phones now? Who says professional video cameras’ prices will not fall? Furthermore, most families’ income is increasing, and who says they will not buy it?”

The market for entry-level video cameras will get smaller in the future because mobile phones will have video features. Many mobile phones will have more than 10 million pixels with good focus, stabilization, red eyes reduction, etc. With these functions, who will buy those entry-level video cameras?

The consumer-level video camera market will also be reduced in the future. But its footages are not clear, and it’s not cheap. People who like to take videos will prefer to get the cheaper professional-level video cameras, and others will stick to their mobile phones.

Zhong Qingxian is overwhelmed and replied in a daze. “I think you are right. But who knows what will happen in the future?”

“I know.” Feng Yu replied confidently.

Are you kidding me?! I am rebirth, and if I don’t even remember the trend, I will be wasting my second chance.

Zhong Qingxian: “......”

“Oh, during Christmas, Wind and Rain Mobile will be introducing a cheap phone. The slogan will be similar. We will let everyone afford a mobile phone. Small profit through quick turnover can also be applied to electronic products.”

The impression most people have of electronic products is high-end and expensive. But Feng Yu is going to change this mindset by introducing products with basic functions.

“Is this the reason why you ask them to acquire those almost obsolete electronic components? Is this mobile phone the strategic flagship product you mentioned?” Zhong Qingxian suddenly remembered it.

Feng Yu snapped his finger. “That’s right. This mobile phone will be recorded in history, and it will be the best-selling mobile phone in the world. In the future, whenever people mention mobile phones, they will remember Wind and Rain. This might be easier to remember than launching the first camera phone and first MP3 phone.”

“Really? If we can become the World’s first, it will benefit our brand greatly. Are you thinking of having the best sales in the world when you got them to introduce this cheap DV?”

“That’s right. It doesn’t matter what features a product has or which tier it is targeting. The best product is the product that can meet the market demand. They are targeting professionals, and we are targeting ordinary families. But everything will be different if we have the highest sales volume in the industry.”

Wind and Rain brand cannot compete in the professional video camera tier currently, and they will focus on making it big in the mass market segment. The Japanese companies are not interested in the mass market and gave Feng Yu an opportunity.

Feng Yu believes that these cheap electronic products will shock many people!