“We firmly oppose Canada’s 25% tariff on domestic products sold to our company. This is a discriminatory trade protectionism. It hinders the free market policy it has been promoting and is not conducive to technological products. development, we believe this is a step backwards.
Secondly, the additional 25% tariff will not have much impact on our company. Instead, this part of the cost will be borne by its domestic consumers. This is unfair to them. They should enjoy the convenience brought by advanced technological products.
Finally, we will continue to work on technology research and development in the field of intelligent AR and invite more technology companies to join it. We are willing to provide relevant technical support and related services to these enterprises to help them develop excellent products and serve the majority of users. "
This was Wu Hao's response. Although the words were not sharp enough, it also expressed their determination to strongly oppose.
And the response made it very clear that the 25% increase will not stop them, nor will it have any impact on them. Instead, this part of the cost will be passed on to their domestic consumers.
At this stage, there are no other mature AR devices that can match Wu Hao’s products. In other words, even if the 25% tariff is imposed, their market position will still not be shaken.
After this statement was released, the prices of related products they sold to Canada showed a 25% increase.
This naturally made Canadian consumers dissatisfied. Some Canadian consumers began to leave messages on foreign social software to oppose this price increase. Many people even went to Haoyu Technology's official website and social accounts to leave messages. protest.
In fact, nearly two hundred users of Haoyu Technology actually raised flags in front of the Canadian Parliament to protest.
In the end, Parliament had to respond, saying that the move was aimed at safeguarding the market rights of Canada's domestic technology companies and electronic products, and accusing Haoyu Technology of using electronic equipment to destroy Canada's innovative research and development capabilities in the field of related smart electronic equipment. etc.
Okay, this is the usual routine of these politicians, and they have poured sewage on them again.
Wu Hao was not polite about this and responded directly on his Weibo.
"No matter how much you try to beautify it, you can't hide your greedy face. Ridiculous accusations and stupid slanders. There are too many advanced technologies and products in the world. Is this a form of suppression? Is it persecutory paranoia? It is recommended to see a psychiatrist.
For users and consumers in Canada, I am really sorry. We really did not intend to increase prices. This 25% is completely imposed on us and on you. We have no other choice. Method.
However, in view of our apology to you, we have decided to give you certain discounts on paid value-added services in these products.
Any new consumer who purchases our related products can enjoy three months of free use of any paid value-added service included in their product. "
Of course, this is not because of Wu Hao's apology. This is not their fault in the first place, so where does the apology come from. He is not a bad person, let alone a saint.
The reason why the three-month usage fee of any paid value-added service is waived is actually to attract more consumers. This sudden 25% price increase will definitely cause dissatisfaction among many consumers and reduce market sales, so they will use this method for marketing.
The cost of these three months of free value-added services is only a dozen dollars, which may not seem like much, but when added up, it becomes a very objective figure. Of course, compared to the 25% increase in sales price, it is certainly not worth mentioning.
Because this is a virtual service product, the cost is very low, and with the consumers brought by the promotion, they actually have no actual losses.
In addition to Canada, Wu Hao and the others have also carried out a wide range of promotional activities in Europe, Asia, including South America, and China. Although the price of the product has not increased much, the discounts on the corresponding content products have increased a lot.
Some places even offer paid value-added service packages that are free for up to one year in order to attract more consumers.
Of course, in addition to attracting consumers and increasing sales, this marketing strategy is also intended to revitalize their entire ecological application market. After this preferential activity, it is bound to attract a large number of related application developers to join, thereby further expanding their system application ecosystem and increasing their own strength.
G Song also responded quickly and announced that it would spend one billion US dollars to encourage Xiangguan application developers to develop related applications suitable for the Android AR system.
It has to be said that G Song’s brand is still very loud. After this news was announced, it still won the welcome of many developers.
In this regard, Wu Hao and the others did not follow suit. If this was the case, the two sides would inevitably engage in direct confrontation. In this way, both parties will lose in the final battle, and it is these application developers who will benefit.
And they are now trying their best to avoid a head-on confrontation with G Song, and they will delay it as long as they can. On the one hand, it is to buy yourself time to carry out global layout and prepare for the challenge.
On the other hand, if a head-on confrontation really begins, they will inevitably suffer a more severe blow from the United States, which is very detrimental to them.
So they adopt another approach, which is to lower related service fees, thereby attracting these developers to stay for a long time.
For example, Wu Hao and others have formulated a set of tiered dividend policies for long-term cooperation. The longer the application is on the market, the higher the share ratio will be for these application developers, and the lower the service fees for Wu Hao and his platform will be.
It is adjusted every year, and these application developers can get up to 80% of the commission, but this will have to wait until five years later.
The survival time of current applications is actually very short, and the survival time of most applications is actually only a few months. There are very few that can last more than one year, and very few that can last more than three years.
Those that are more than five years old are basically only applications from large enterprises, such as Taobao, Weibo, etc. Working with them, charging a 20% service fee is already very good. Even for a mall like Moubao, the service fee will be lower, only 10% or even lower.
Although the service fee is lower, the turnover rate of these software is high, so the profit will naturally be greater.
For these application developers, low service fees are naturally very beneficial to them, especially some shopping or paid service applications, and these applications are the foundation that supports the entire ecosystem.
