Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 107, Section 106: Wealth Rolls In
In late January 1997, as the Lunar New Year of the Ox approached, the atmosphere of bidding farewell to the old year and welcoming the new permeated the land of China.

However, for the newly established "Film Studio and Television Series Production Collaboration Guidance Group" and the alliance of 31 film studios behind it, this year-end signifies an intense sprint for business planning.

With Wang Sheng's suggestion and Han Sanping's strong promotion, a plan aimed at integrating the advantages of the alliance channels and expanding the VCD audio-visual market was quickly implemented.

Leveraging the connections and venue resources of various film studios in their respective provincial capitals, municipalities, and major prefecture-level cities, dozens of audio-visual product specialty stores named "Movie World" sprang up like mushrooms after rain within just half a month.

These "Movie World" stores are mostly located in bustling commercial streets or near emerging home appliance markets. The stores all use eye-catching signs with red backgrounds and white lettering, and the interior decoration is simple and bright. The shelves are neatly stacked with genuine VCD discs published and distributed by Beijing Film Studio Audio-Visual Company.

The film sources mainly come from domestic films, classic TV series, classic Hong Kong films, and the first TV movie, "Family Harmony Brings Prosperity," which were stockpiled by Beijing Film Studio over the past three months.

All discs have a unified national retail price with clearly marked prices, aiming to establish a legitimate image and avoid vicious internal competition.

To standardize management, under the leadership of Han Sanping, 31 film studios jointly invested in and registered "Film World Audio-Visual Chain Co., Ltd."

Equity was allocated according to the investment ratio and resources contributed by each studio. Beijing Film Studio, as the initiator and main content provider, occupied a relatively large share, but the articles of association clearly stipulated the principle of sharing benefits and risks.

In the early stages of the alliance, when everyone was of one mind, this plan was widely recognized by the factory managers.

Han Sanping successfully completed this complex task of coordinating interests by virtue of his prestige and skillful balancing.

The establishment of "Movie World" marks the successful opening of a second front for the alliance, directly facing consumers, in addition to television distribution channels.

Just as "Movie World" stores were opening one after another and initially attracting a group of VCD users seeking high-quality film sources, an unexpected customer came to the door.

The visitor was none other than Hu Zhibiao, the owner of Aido VCD, which is currently enjoying great success in the VCD market.

Through an acquaintance in the advertising department of CCTV, Hu Zhibiao eventually made contact with the Beijing Film Studio's office.

When he learned that the Beijing Film Studio, which held the formal VCD publishing and distribution rights to a large number of film and television works, had quietly created a nationwide "Movie World" chain network, his keen business sense immediately made him realize that this was an excellent opportunity for cooperation.

He immediately decided to travel north to Beijing to personally meet with the head of the Beijing Film Studio.

……

The meeting place was set at the Kunlun Hotel, a long-established high-end hotel in Beijing.

This hotel, located on the banks of the Liangma River, has been an important venue for receiving foreign guests and hosting important business events in Beijing since it opened in 1988, and it is exceptionally grand.

Inside the private room, the atmosphere was warm and inviting, filled with the aroma of tea.

Han Sanping was dressed in a dark Zhongshan suit, exuding composure and gravitas; Wang Sheng, on the other hand, wore a well-fitting dark gray suit, appearing young and sharp.

When Hu Zhibiao entered the private room under the guidance of the middleman, the two sized each other up, and the air was instantly filled with a subtle clash of auras.

Hu Zhibiao was in his early thirties. He was not tall, but he was full of energy, and his eyes held the shrewdness and drive of a rough-and-tumble hero.

He wore a fashionable leather jacket at the time, and his demeanor combined the enthusiasm of a businessman with a touch of江湖气 (a kind of江湖江湖气 is a Chinese term referring to the world of martial arts and chivalry).

He had long heard of Wang Sheng, a young talent at the Beijing Film Studio, who was a key figure in stirring up the film and television industry. Seeing him in person, so young, he was surprised and secretly ashamed. He felt that he had built the Aido business from scratch and was already a gifted individual. He never expected that this young man had already managed to create such a large-scale situation both inside and outside the system. There are always people more capable than you.

"Director Han, I've long admired your name! President Wang, you truly are a young hero!"

Hu Zhibiao greeted them with a cupped-fist salute, his Mandarin, thick with a Cantonese accent, brimming with enthusiasm. "Mr. Hu, you're too kind. Please have a seat," Han Sanping returned the greeting with a smile, exuding an air of authority.

Wang Sheng nodded in acknowledgment, calmly observing this trendsetter in the VCD market.

After a round of pleasantries and toasts, the conversation naturally turned to business.

Hu Zhibiao put down his teacup and got straight to the point: "Director Han, General Manager Wang, I've taken the liberty of visiting you today because I'm interested in your 'Movie World' platform. Your factory has content and distribution channels, while I, Hu Zhibiao, have products and a market. I would like to ask 'Movie World' to help sell our Aido brand VCD players while selling VCD discs."

Han Sanping did not immediately express his opinion, but instead turned his gaze to Wang Sheng.

Wang Sheng understood, pondered for a moment, and asked, "Mr. Hu, do you mean that you hope 'Movie World' will only sell Aido VCD players, or can it also sell other brands?"

Hu Zhibiao answered without hesitation: "Of course, we'll only sell to Aido! Mr. Wang, I understand the rules. I'm willing to pay each 'Movie World' store an exclusive display fee as a way of giving back to the stores for their support."

In addition, for every Aido VCD player sold, besides giving the store a discounted purchase price below market value, we also pay an extra sales commission.

After a moment's thought, he quoted a figure: "50 yuan commission per unit, what do you think?"

In early 1997, the price of a branded VCD player fluctuated between 1500 and 2500 yuan. The commission of 50 yuan per unit was a considerable amount of extra income for the store.

Wang Sheng didn't rush to comment on the condition, but instead asked, "Mr. Hu, if I may be frank, with Aido's current market momentum and your renowned ground sales team, distribution channels shouldn't be a problem. Why do you place such importance on our fledgling 'Movie World'?"

Upon hearing this, Hu Zhibiao smiled slightly, leaned forward a little, and his eyes gleamed with the unique light of a marketing strategist: "President Wang has hit the nail on the head. What I value is not only the sales ability of 'Movie World,' but also its 'image'!"

He explained, "'Movie World' sells genuine discs, representing authority and quality. Our Aido VCD players are sold in 'Movie World,' displayed alongside genuine discs, conveying the message to consumers—'Aido VCD is the best choice for playing genuine discs!'"
This is the most ingenious form of advertising, far more persuasive than simple advertising bombardment. I want consumers to develop a conditioned reflex: to buy genuine discs, go to Movie World; to play genuine discs, use Aido VCD!

The heroes of the world are indeed as numerous as carp crossing a river.

A hint of admiration flashed in Wang Sheng's eyes: "President Hu is truly a master strategist. This 'Genuine Alliance' move is indeed brilliant."

He thought to himself that Hu Zhibiao's rapid rise to prominence was no accident; his grasp of brand image and consumer psychology far surpassed that of many businessmen of his time.

Hu Zhibiao, emboldened by the recognition, spoke with a touch of pride: "To be honest, I have a ground sales team of several thousand people and a planning team of several hundred. They're not just sitting around doing nothing. We need to expand our market, but we also need to establish a solid and reputable brand!"

Han Sanping and Wang Sheng exchanged a glance, both seeing the affirmation in each other's eyes.

This collaboration will not only bring "Movie World" substantial exclusive display fees and sales commissions, but also leverage Aido's market influence to rapidly increase "Movie World's" brand awareness and customer traffic, while reinforcing its positioning as a "genuine audio-visual base," making it a win-win situation.

"Mr. Hu, it's a pleasure to cooperate." Han Sanping finally made the decision and raised his glass.

Wang Sheng also raised his glass and added, "We will contact the heads of the various film studios within the alliance as soon as possible and ask them to come to Beijing soon to discuss and sign a tripartite cooperation agreement. At that time, we will also need Mr. Hu's guidance."

Hu Zhibiao was overjoyed and quickly raised his glass in welcome: "Absolutely! Factory Director Han and General Manager Wang, rest assured, with all the factory directors here, I, Hu Zhibiao, will arrange everything. I will definitely provide you with a warm welcome and ensure that you all leave satisfied!"

Three wine glasses clinked gently in the air, producing a crisp sound.

Inside the private room, the guests and hosts were enjoying themselves immensely.

(End of this chapter)