Zhou Shuo is no stranger to Jiang Wanmeng. He is the inventor of the world's first VCD and can be said to be an amazing inventor. This article was first published by...

Since 1993, Wanyan Company, established by Jiang Wanmeng, has been committed to the promotion of VCD. After three years, the VCD market has completed a gorgeous turn from scratch.

1996 was the eve of the blowout of the VCD market. It should be the time when Wanyan Company reaped the fruits of its beautiful labor. Unfortunately, not all efforts in this world have gained fruits.

The creation and pioneers of the vcd market are about to face bankruptcy on the eve of this market maturity.

The reason is very simple. Jiang Wanmeng does not have a VCD invention patent. When the market is about to mature, many large companies have entered this field, compressing Wan Yan's market share to a trivial level. However, Wan Yan's efforts he has insisted on over the years not only have not received any returns, but also have to compete with these large companies with strong capital, which will soon be difficult to maintain.

It has to be said that this is a tragedy in the Chinese technology industry. In the 1990s, China rarely had excellent products in high-tech, and VCD can be said to be a highlight of scientific and technological innovation.

But the experience of the founder of this highlight of technological innovation has hit everyone who is determined to do so.

Later generations said that Jiang Wanmeng was stupid and did not know how to register a patent in advance. However, at this moment, how many patents have played their due role in China's national conditions?

China in 1996 was a veritable copycat country, and its economic development relied on imitation of foreign technologies. Under such an economic foundation, it was naturally unlucky to regulate patents.

Even if Wan Yan registered a VCD patent, he could not receive a patent fee under the background at that time. If the lawsuit was useful, a foreign company would have already fought in China.

The patent was like a beautiful poison to the domestic economy at that time. It looked good, but it would be a death if eaten.

From a certain perspective, China in this era can be said to be a completely free capital market. Capital does not need to be afraid of patents, and this is the root of Jiang Wanmeng's tragedy.

Even if he really registered a patent, he might just end up being rich and honored by one person, and Wan Yan's fate would not change much.

For the fate of Wanyan Company, it can be said that it is the eternal regret in the heart of everyone who hopes to make a fortune by relying on technology.

Zhou Shuo frowned and couldn't help asking: "Mr. Fang means that Jiang Wanmeng hopes to introduce your investment?"

"That's right, but it's not mine. It's Huajing's investment." Fang Jiange smacked his lips and sighed: "The Wanyan brand is still very valuable. If you lack funds, you may not be able to get it from other places. However, Jiang Wanmeng is interested in Huajing's current design and production capacity. Currently, China is our Huajing company, which has no other branch."

When it comes to the investments he has made in this life, Fang Jiange can't even count them. But the one he is most satisfied with is probably Hua Jing.

It is also taking the technical route, let’s see what Jiang Wanmeng is in the VCD, and then see what Huajing’s position is in China’s electronics industry? Wan Yan’s mistake is that he has not mastered the core technology in his own hands. For VCD, what is the core technology? It is undoubtedly the decoding chip.

With the only chip design capability in China, Huajing does not need to risk any pirated and patent infringement. The serious inventor will ask it to share the profits of the market.

Technology is really a paradise of thoughts, a hell of thoughts! Without core technology, capital will even feel troublesome even when you look at you. With core technology, even if you lie at home, you can make money. Comparison. Hua Jing’s advantages are really endless for three days and three nights.

"VCD decoding chip!" Zhou Shuo nodded and said deeply: "Jiang Wanmeng still has vision. He knows where Wan Yan's only way out is. He can't compete with capital, and he can't compete with Aidou and BBK. His core technology is in the hands of Scooper, and he can't hold back their supply. Only by introducing Huajing can we achieve new breakthroughs in cost and technology."

"As long as Huajing's investment is introduced, there is naturally no need to worry about the embarrassment of not having core technology."

This is obvious. Since Wan Yan cannot take advantage of the patents on VCD, why can SGB be used? SGB is the pioneer of the first generation of VCD decoding technology, but Wan Yan is the creator of the VCD market. Aido and BBK companies produce VCD chips, just because SGB has this decoding technology.

In Jiang Wanmeng's abacus, as long as Huajing can reverse engineer the decoding chip and start the mold to produce the decoding chip by itself, the cost will inevitably be as far away as Scober. If Wan Yan can use such a cheap decoding chip, he will not have to worry about not being able to compete with other well-capitalized VCD manufacturers in the market.

"So, Mr. Zhou is optimistic about this business?" Fang Jiange asked excitedly.

"Of course, the future market prospects of vcd are extremely broad, and it is a good time to enter now. In terms of multimedia decoding, we have mp3 technology to base it, so we don't have to worry about not being able to do it..."

The so-called mp3 actually means mpeg-1audiolayer3. The compression technology used for vcd decoding is mpeg-1, which means that the audio decoding Fanhan Group has its own ready-made technology. As long as the screen compression technology is solved, the decoding chip will be completed. Don’t forget that Zhou Shuo acquired the Japanese DB Software Company early, and it has ready-made video compression technology in its own hand.

Zhou Shuo nodded and thoughtfully said: "It's just a little bit. The current VCD market is very chaotic, and the key technologies are all in the hands of foreign companies. If we rashly support Wan Yan to fight back, it may lead to a price war. In this way, we will not make money at most, but this market may be ruined."

The early price of VCD is not cheap, and a VCD machine is less than two or three thousand yuan. Half of it is spent on decoding chips and laser heads. But it may not be necessary to say how much these two costs really are. If Wan Yan regroups and fights back, Scobo will be able to support the two companies Aido and BBK to fight a price war.

Looking at the frequent home appliance price wars in the Chinese market, it seems that domestic brands win on the surface - but in fact, foreign manufacturers always get benefits.

Not to mention other companies, just talk about the big-head color TVs in the home appliance market. By 1997, China's color TV production capacity reached 30 million units, which was the world's number one production. But isn't China's TV industry very strong? Unfortunately, it can only be said to be a hollow giant.

The whole of China was facing such a problem at that time, that is, the industry was huge but lacked core technology.

At the beginning, everyone took the banner of national industries and fought price wars with foreign brands in the market. Well, the Chinese worked together to drive out foreign brands that were not deeply localized.

But what is very sad next is that our color TV industry did not continue to make breakthroughs in core technologies, but was completely trapped in the quagmire of price wars. After fighting foreigners, our own people were still killed in the dark.

Since 1996, the famous large-scale price cuts in the domestic color TV industry have been 6 times. Later, industry insiders also discovered the problem, but were unable to change it at all. In this market, there are always people who will take the lead in price cuts, hoping to endure others to death and dominate the entire market themselves.

As a result, China's color TV industry collapsed overall at the end of the century. Everyone became porters, without core technology, and all the key accessories were imported from abroad. However, they had to take out at a cost price or even at a loss. They not only had to bear the transportation costs themselves, but also had to take out and lose money...

Finally, at the juncture of technological upgrading, the color TV industry, which once raised the banner of national industries, was collectively silent. Foreign brands not only returned, but also completed deep localization, occupying 30% of the domestic market share in one fell swoop. As for the new century, the new technologies such as plasma and LCD have been completely eliminated. If BOE had not emerged, the entire Chinese color TV industry would be a big joke that makes people "hehe".

And such a price war is not an isolated case. Later, there were refrigerator wars, washing machine wars, air conditioning wars, etc.

These price wars have contributed to capital's voice in the domestic market, but have completely driven away the position of technology in the industry. The impact of this on China's mastery of core technologies in various industries can be imagined by people with IQs.

China has not dared to say that it has completed the manufacturing powers in twenty years. It can even be said that it has just embarked on the road to a manufacturing power.

The price war can be said to be something that Zhou Shuo never wants to touch.

"Then, what does Mr. Zhou mean?" Fang Jiange asked in confusion.

Zhou Shuo gently clicked on the desktop, pondered for a moment and said, "Please tell Mr. Jiang Wanmeng that Huajing can invest in Wanyan, but we don't want to compete with people in the ordinary VCD market. As the creator of the VCD market, Wanyan should be the leader of technology and standards. What we should do is to lead the direction of market development. If Wanyan wants to make a difference in the market, I suggest that we should withdraw from production and exist as a technology company again..."

"Ah!" Fang Jiange said in surprise: "Wan Yan currently accounts for at least 6% of the VCD market, which is a little income. He gave up like this. I don't know if Jiang Wanmeng would agree."
Chapter completed!