In July 2000, Bird shares landed in the capital market, and its performance was very bright. The 200 1 annual report shows that the company's revenue is 2.6 billion yuan, a year-on-year increase of 18 1%. The annual sales volume of mobile phones is 2.43 million units, contributing more than 95% to revenue, and the net profit is 681300,000 yuan, up 168% year-on-year.
According to a data released by the former Ministry of Information Industry, in the first ten months of 200 1, Bird mobile phone ranked first among domestic brands and fifth among all domestic brands.
With the step-by-step growth of mobile phone sales, Bird ushered in its heyday in 2003. Mobile phone sales exceeded100000 units this year. According to official data, Bird mobile phone has surpassed all foreign-funded enterprises and become the first in the whole industry. In the first ten months, the market share jumped from 6.4% two years ago to 14.2%. The annual report shows that Bird's revenue in 2003 reached 654.38+008 billion, and its net profit was 245 million, more than three times that of two years ago.
Behind Bird's "summit" is the collective rise of domestic mobile phone brands. In 2003, Bird, TCL and Konka accounted for nearly 30% of the domestic mobile phone market. Driven by these three brands, the market share of domestic mobile phone brands has also soared from 5% in 1999 to 54.7%.
For Byrd, overwhelming publicity is also a magic weapon to win in the competition. CoCo Lee, a star player, was invited as a contemporary guest speaker and named Liaoning Football Team "Bird Team". Advertisements can be seen everywhere. The classic slogan "fighter in mobile phone" even inspired Zhao Benshan's sketch in the Spring Festival Evening.
In 2003, the advertising cost of Bird reached 258 million yuan, an increase of 60 million yuan over the previous year. In contrast, Bird began to reduce its investment in scientific research, and its expenditure on scientific research decreased from 88.89 million yuan in the previous year to 58.5 million yuan.
This strategy of frantically spending money on publicity and reducing investment in scientific research has laid the groundwork for the future decline of Bird, and the continuous losses have been "capped".
The crisis appeared in 2004. Although the sales volume of Bird mobile phone was the first for five consecutive years, its performance began to decline. In 2004, the company's revenue was 654.38+002 billion yuan, a year-on-year decrease of 5.49%; The net profit was 200 million yuan, down 15.33% year-on-year.
After several years of barbaric growth, the domestic mobile phone market gradually recovered its rationality, and consumers began to pursue more personalized functions such as MP3 and photography. In this context, domestic brands without core technology are in an embarrassing situation, and foreign brands headed by Nokia begin to recover lost ground.
In the face of market changes, Bird's response is still to invest a lot of financial resources in publicity. In 2004, Bird spent a total of 46.5438 million yuan on advertising and promotion, while the expenditure on scientific research was the same as the previous year, less than 60 million yuan.