章節 318: Considerations
Shin looked at the car pictures on the computer. They included cars like Land Rover, Jaguar, Porsche, and so on.
To be honest, acquiring at least one motor company from this list of car manufacturers would cost several billion dollars.
Shin then recalled that Ford acquired Land Rover for less than 3 billion dollars in the year 2000.
In 1995, Land Rover was still in a relatively good financial and strategic position, despite facing some challenges.
The same could be said for other luxurious car companies.
Land Rover and Jaguar Cars were later acquired by an Indian company, Tata Motors, for 2.3 billion dollars from Ford in 2008.
During that time, the global financial crisis peaked, affecting many companies, including Ford. This led Ford to focus on its core brands. Land Rover and Jaguar cars, while iconic, were considered non-core, and their profitability fluctuated, making them more vulnerable to divestment.
Thinking about it, Shin considered Tesla, which Elon Musk bought for about 6 million dollars.
"Well, I should consider this more," Shin thoughtfully said as he stroked his chin.
Maybe Shin could wait until the 2000s and then acquire Tesla, as well as brands like Land Rover and Jaguar Cars in 2008.
Meanwhile, KiShin was about to finish the Gameboy Advance. Its design was a flip and kind of the same as the SP version in Shin's previous life.
While the design resembled the SP version, it was still notably inferior to Shin's previous life. However, considering that the Gameboy Advance SP in Shin's previous life began research around the year 2000 and was released in 2003, it was understandable.
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As time passed, in the year 1996, around January, Pokémon Green became available for Gameboy in Japan.
It quickly became a sensation in Japan upon its initial release.
Pokémon and Gameboy fans had been eagerly awaiting another Pokémon video game for some time. They didn't mind if the gameplay and storyline resembled previous Pokémon games; their main concern was the introduction of new Pokémon to catch.
Some foreign Pokémon fans in Japan were surprised to see that Pokémon video games had different versions in various colors, unlike the USA and Europe versions where Pokémon Red and Blue were on the same cartridge.
Beyond the Pokémon video games was the Pokémon Trading Card.
With KiShin Merchandise, millions of Pokémon were manufactured and released worldwide. In fact, after its success in Asia in 1993 alone, the Pokémon Trading Card earned around 278 million dollars in the USA in its first year.
In certain parts of Asia, including Hong Kong, Taiwan, Singapore, Japan, South Korea, and various countries in Southeast Asia, the Pokémon Trading Card company, a subsidiary of KiShin, in collaboration with Nintengu and distributed through KiShin Merchandise stores, earned approximately 310 million dollars in its first year, which was 1994.
Around 1994, the KiShin and Pokémon series also began exerting their influence directly in South Asia. This included several countries in the Indian Subcontinent such as Pakistan, Bangladesh, Sri Lanka, and notably, India. While KiShin products had been distributed in these countries through local retailers, KiShin didn't have a strong presence there compared to the USA and some parts of Asia. The weak presence, limited local representation, communication channels, and engagement in South Asia created a distance between KiShin and its potential audience. This lack of visibility hindered brand recognition and trust. However, KiShin is gradually establishing its presence, entering these countries by establishing branch companies, communities, and even licensing Pokémon anime rights to certain TV channels at a favorable price.
The South Asian market has become a significant target for KiShin due to its vast, large, and growing potential. Compared to established markets like North America and Europe, South Asia remains relatively untapped in terms of video game consumption. The young population and increasing disposable income in South Asia provide an untapped audience for KiShin's games. Early entry into this market could lead to long-term brand loyalty and a solid customer base.
From an economic standpoint, South Asia offers a talented and cost-effective workforce for game development and localization. This potential allows KiShin to reduce production costs and reach a broader audience at a lower price point. Moreover, in the year 1994, South Asia already had a developing IT sector with skilled programmers. KiShin could explore opportunities to establish development studios or partnerships in the region for cost-effective production and a better understanding of the local culture.
However, since 1994, KiShin foresaw challenges upon entering the South Asian market directly. The region is diverse, featuring multiple languages, cultures, and economic disparities. KiShin recognized the need to tailor its strategy and offerings to specific sub-regions and markets.
Moreover, during the 1994 period, video game piracy was rampant in South Asia. Nevertheless, this wasn't a significant issue due to KiShin's robust anti-piracy measures and its provision of affordable pricing for the SKES and video games, effectively combating this problem.
As KiShin gradually entered the South Asian market, the Pokémon franchise had already gained substantial recognition. Consequently, the Pokémon Trading Card alone generated approximately 300 million dollars in profits in that region by the end of 1995.
The Pokémon franchise, whether in video games or beyond, experienced significant profits in South Asia, a trend that extended to Lego as well.
Lego gained popularity in South Asia, particularly in India, becoming a favorite among kids. However, the imported price made it less affordable for the masses. Anticipating this, Shin invested substantially in establishing factories and a workforce for KiShin Merchandise toys, including Lego, aiming to reduce import duties and material sourcing. Sourcing raw materials within India further lowered production costs compared to relying on imports.
KiShin executives supported the idea, considering the benefits of lower labor costs and an improved distribution network. Establishing factories in India not only reduced costs but also facilitated a more efficient distribution network, reaching smaller towns and villages beyond major cities, thereby expanding the market and boosting sales.
While this was in progress, factories for KiShin game consoles and video games were planned for the future. Board games, toys, and cards became a major focus, emerging as one of KiShin's most profitable ventures alongside video games.
Interestingly, KiShin's profits in the video game sector wouldn't match those from toys and cards if not for the introduction of the SKES and KS1 consoles. Opening the platform for these consoles allowed KiShin to profit from collected royalty fees, with the addition of VG Engine royalty fees further enhancing profits in the video game sector.
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NewComer714
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If the readers are fine, I can atleast post two chapters per day here in Webnovel...
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