Chapter 187: 600 Billion Indiscriminate Sweeping
Xie Jingxing and Ji Gang are not judges, so they don’t care about past grudges or hatreds, but they can use this to confirm that Huang Zhang is extremely obsessed with equity.

Even Lei Jun, an entrepreneur with a top resume who retired from Kingsoft, could not change him, and he still has emotions to this day.

The difficulty of dealing with Huang Zhang is obvious, and it also indirectly proves how serious the difficulties Meizu is facing now.

Xie Jingxing and Ji Gang exchanged glances and reached a tacit understanding silently.

"We certainly believe that Meizu has core competitiveness, but Mr. Bai also mentioned that the market performance of the products released last year was not as good as expected. Is this due to macro market factors, or is it because the products failed to fully demonstrate their own competitiveness?"

He asked in a slow and formal manner.

There is no project that must be invested in, only whether it is worth it. In fact, investors are very good at saying "no".

"We had two main models on sale last year, the Meizu MX2 and the Meizu MX3, and the market feedback on the products was quite good."

Bai Yongxiang answered sincerely before Huang Zhang: "We concluded that the problem lies in the insensitive brand positioning."

"From 2012 to now, the entire mobile phone industry has entered a substantial red ocean market, and competitors are trying their best to reduce sales prices... To put it bluntly, we reacted too slowly!"

In fact, this problem appeared long before 2012. In 07, the country abolished the "mobile phone production license", and everyone, rich or poor, could make mobile phones.

In the same year, MediaTek, a chip manufacturer from Taiwan, released the cheap chip 'MTK'. By putting on a phone case, installing a battery and a screen, it becomes a smartphone.

Since then, copycat smartphones have swept across China and Southeast Asia, taking off at a five-year compound growth rate of 11%. Guangdong has taken advantage of its geographical advantages to surpass many mainland cities and has become the region with the largest production capacity in the mobile phone manufacturing industry.

But after all, the quality of copycat phones is not good, and all genuine mobile phone manufacturers, including Meizu, did not take it seriously. They just took advantage of the cost reduction dividend of a complete industrial chain.

In 2011, the situation suddenly changed. 3G mobile network was launched on the market. Within one year, the three major operators gave 600 billion subsidies to four domestic mobile phone manufacturers, namely ZTE, Lenovo, Huawei and Coolpad, in order to compete for 3G users.

Domestic smartphones are engaged in an indiscriminate price war in the thousand-yuan price range, and all mobile phone manufacturers except Samsung and Apple have suffered. There was even a time when three Chinese brands appeared in the top ten global mobile phone brands in terms of market share.

This directly led to Nokia selling its mobile phone business last year, creating the classic saying - we did nothing wrong, but we still lost.

Since then, all international mobile phone brands have been crushed and have withdrawn from the domestic market.

They can run to domestic mobile phone manufacturers but have nowhere to run. Seeing the four deeply bound operators of "China Cool Alliance" killing all the other parties, their peers began to struggle to save themselves.

Xiaomi is not falling behind by relying on its supply chain and marketing, while OV are quietly tinkering with the sinking market and relying on their strong financial strength to compete.

Second- and third-tier players such as Gionee and TCL are relying on their old products and pushing out new products to stay afloat. Meizu is in this group.

Huang Zhang, who launched two successful products, Meizu M8 and M9, and then publicly criticized Lei Jun after he founded Xiaomi, but received no response and chose to retire from the industry, sitting firmly behind the scenes.

Just tell Bai Yongxiang that we don’t do marketing or engage in price wars. As long as we make good products, users will buy them.

Facts have proved that this doesn't work. The market feedback for Meizu MX2 is indeed good, but it just can't be sold.

The Meizu MX3 is even worse. As soon as it was launched, it collided head-on with the first Redmi model. It can be said that it was very unlucky.

Last year, Xiaomi's annual shipments reached 1800 million units, while Meizu's shipments were only a pitiful 300 million units. Mr. Huang finally couldn't sit still and re-entered the market.

In front of outsiders, Bai Yongxiang was trying to save face for his boss, but that was how things were and that was the situation.

In the early stage, it took advantage of the opportunity but failed to sort out the manufacturing supply chain by taking advantage of the industrial chain transfer. In the mid-term, it did not have the resources to deeply bind the three major operators. Now, it does not have the old foundation of Jinli and TCL to rely on, and it does not understand the sales end.

After listening to Bai Yongxiang's most tactful explanation, he looked at Huang Zhang who was smoking with his head hung down, and then looked at the information recorded on the computer.

Ji Gang took his hands off the keyboard and didn't know how to write it down for a moment. Based on his experience, the founder who got up early and caught up late judged that the future of Meizu was worrying.

Mr. Huang always has the firm belief in his mind that "as long as a successful product is made", all problems will be solved. The success of Meizu M8 has caused endless harm, and path dependence has always been like this.

“So your direct competitor now is Xiaomi?”

The atmosphere fell into silence for some reason, and no one had anything to say. Xie Jingxing thought for a moment and broke the depression.

Huang Zhang put out his cigarette, then lit up another one: "There is also Huawei Honor, which has the same product positioning as ours."

"I tried your MX3 model and the experience was pretty good. The operating system and appearance design are better than those of Xiaomi and Honor." Xie Jingxing said in a nice way.

The market positioning of the three brands, Meizu, Xiaomi, and Huawei Honor, is male consumers aged 22 to 35 in first- and second-tier cities.

The other three companies in the "China Cool Alliance" group are automatically ignored. They are too deeply tied to the three major operators, and their thousand-yuan packages for poor people in the mobile phone industry have no market positioning at all.

High-end mobile phones are firmly dominated by Samsung and Apple, while brands such as OV are shining in third- and fourth-tier cities.

So, as a direct competitor, what will Meizu use to compete with Xiaomi's supply chain and Huawei's technological reserves?
"Our product design has always been one of the best among domestic manufacturers. The next generation of flagship phones we are developing will have disruptive features. We are also developing cost-effective products that follow the market trend."

Bai Yongxiang understood that Meizu's greatest core competitiveness is product design, but the market has proved that product design does not work, so they have to emphasize cost-effective products.

Meizu’s biggest problem now is the lack of money internally and the huge competitive pressure externally. Problems such as product and management can be solved.

To continue in-depth communication, a preliminary due diligence agreement needs to be signed. Before that, there is still strategic concepts to discuss.

"The concept of smart wearable devices is quite popular in the market now. Can our mobile phone industry have some cross-business?"

Ji Gang perked up and asked, "For example, Xiaomi has recently been trying to develop a smart home ecosystem."

"Gree came to us a few days ago, and we have also considered doing it. The basic technology is not mature now, so it is considered a long-term strategic direction."

Huang Zhang finally spoke, and when he mentioned Xiaomi again, Xie Jingxing couldn't help but observe him carefully.

"This is Alibaba's strategic plan. We just invested in Haier at the end of last year."

Ji Gang said calmly: "If we work together, we can build a closed loop of the 'Internet of Things' of smart home + mobile terminal + Alibaba Cloud computing. Our cloud service can also support your exclusive operating system."

Alibaba values ​​Haier's "white goods" logistics and distribution business, and combines it with the recently popular wearable smart devices, and insists that smart home is just a bonus.

What they want most is to connect to Alibaba Cloud services, penetrate into the underlying architecture of mobile phone systems, control the entrance to mobile terminals, and take over everything from software to hardware.

Xiaomi is also doing something similar. This year, Lei Jun announced Kingsoft's "cloud storage" business while building Xiaomi's intelligent software system.

In this regard, Alibaba and Meizu are complementary. As they chatted casually, Bai Yongxiang went to the cafeteria to get some boxed lunches.

After lunch, Ji Gang finally asked, "How much money do you need to solve your financial difficulties now?"

"We estimate that 1 billion yuan is enough to provide equity incentives to employees, product research and development, production preparation, and subsequent sales channels."

Huang Zhang calculated each item carefully: "As long as we release the next product, all problems will be solved."

“…Let’s do a preliminary due diligence and then discuss the financing details.”

The flame of optimism that Ji Gang had finally ignited was extinguished by those cold words.

The Meizu project looked good for now, at least it was worth a try, but the founder was stubborn. "I'll go back and report the situation to my leader, within three days at the earliest and a week at the latest. I'll bring the team here, and we'll keep in touch if there's any situation during this period."

Ji Gang said politely: "Boss Xie, are you this way?"

"Let's set up a WeChat group chat. I may not have time to come for the due diligence, so everyone please cooperate." Xie Jingxing said indifferently.

Huang Zhang resisted the urge to ask how many shares they wanted, and he and Bai Yongxiang sent them to the entrance of the building.

Xie Jingxing returned to Shanghai, Ji Gang returned to Hangzhou, and the two of them went to the airport together.

"Mr. Xie, I'll send you a copy of the meeting record. When is a convenient time for you to have a video conference with Mr. Cai?"

Ji Gang was not in a good mood on the way. He was the general manager of Alibaba's strategic investment, but today he was doing the work of an intern.

Xie Jingxing thought for a moment: "Tomorrow, I still have work to do in the afternoon."

"Okay, after this communication, what do you think of this project?" he asked tentatively again.

Xie Jingxing frowned slightly: "It's okay. Meizu is one of the earliest smartphone players in China, so it has some foundation."

Ji Gang laughed secretly, thinking that the talented investor who had never lost a single game since his debut was really proud. Even though Huang Zhang's performance today was hard to describe, he still insisted on giving him a good review.

I don’t know how he talked to the big boss, but Mr. Cai not only asked him to cooperate with Taihe in investing in Meizu, but also asked him to try his best to obtain the lead investment rights.

Strategic investment, Ji Gang gestured with his fingers on his thigh to form the English abbreviations, thinking about the compatibility between Alibaba and Meizu, and what Meizu should do to get out of the quagmire and rise again.

How can we use Huang Zhang, this double-edged sword, to make the benefits outweigh the disadvantages? In order to win the right to lead the investment, we may have to find a way to get this guy to do it.

He rushed to the airport with a heavy heart. While waiting for the flight, he simply revised the conversation record: "Mr. Xie, I have sent you the conversation record. I'll leave first, see you later."

"Thank you for your hard work. Be careful on the road." Xie Jingxing patted his shoulder.

Ji Gang replied with a smile, saying "It's okay", and left the waiting room, putting away his smile, and took out his phone to send a message to Huang Zhang: [Mr. Huang, if you have any additional ideas, please send them to me, so that I can communicate with Mr. Xie.]

After receiving the two-word reply of 'OK', he raised the corners of his mouth in satisfaction and glanced back at the departure lounge.

He walked towards the boarding gate leisurely with his hands in his trouser pockets. Suddenly, he felt a little uncomfortable in his wrist and twisted his arm. The stud cufflinks were uncomfortable.

…………

"Mr. Xie, you are about to board the plane."

A gentle call came from his ear, Xie Jingxing opened his eyes and raised his wrist to check the time.

Half an hour later, Ji Gang is now in the sky.

"I see you seem to have forgotten to bring your cufflinks, right? I happen to have a pair here that you can use first." The waiter squatted beside the chair and said carefully.

Xie Jing Xing sat up straight and smoothed the wrinkles on the hem of his shirt: "No need, I have something urgent to do and won't be flying."

"Is there anything I can do for you?"

"Please inform the crew not to wait for me. Thank you very much for your service today. I will write a thank you letter to your airline."

"Thank you so much, here is my contact information, please write the thank you letter, take a photo and send it to me."

After writing a thank-you letter on the spot and taking a photo with the slightly regretful stewardess, Xie Jingxing stuffed the ticket into the trash can and left the airport gracefully.

…………

In the second-floor office of the Meizu headquarters building, the windows were open and the air conditioner was blowing cold air, but the thick smell of smoke still could not be dispelled.

Huang Zhang stared down at the teacup. A piece of cigarette ash swirled into the cup, tainting the entire cup of tea.

Bai Yongxiang stood by the window looking outside, occasionally turning his head to look at the desk. A pair of mutton-fat jade stud cufflinks reflected a warm and delicate light in the sun.

"It's not easy to get money from Ali." He made small talk.

Huang Zhang said in a deep voice: "Do you think he is reminding us?"

"He has a closer relationship with Tencent. Recently, there are rumors in the circle that he gets along well with Mr. Ma. It may be because of us."

Bai Yongxiang didn't know how Xie Jingxing and Ali came together, but he intuitively judged that the relationship between the two parties was definitely not as simple as it appeared.

For Ji Gang, a player who could be promoted at Alibaba at a rocket-like speed, it seems like a daydream for him to go on a business trip to discuss a project without bringing any entourage with him and personally assist his colleagues from outside.

Not to mention Xie Jingxing, even Shen Nanpeng couldn't order him around like that.

The choice between Tencent and Alibaba is not limited to the Internet industry, but is gradually spreading to the mobile phone industry which is closely related to it.

Some time ago, there was a rumor in the circle that Coolpad founder Guo Deying and 360's Zhou Hongyi were having dinner together.

Immediately afterwards, an executive from Alibaba's Taobao division got drunk at a semi-public drinking party and said that we strongly support Coolpad's online sales channels and that Xiao Chen would treat us to a drink at the end of the year.

Tencent was also not quiet. Executives of the PCG business group, which integrates all of its social products, publicly and highly praised the in-depth cooperation between QQ Space and Coolpad phones.

At the same time, Tencent is also developing its own mobile phone business, and it is said that the brand name has been decided, called "Big Q".

The intentions of these two companies are self-evident. Coolpad had better have some idea of ​​the situation. If you dare to take sides blindly, we will deal with you.

Chen Jiajun swallowed his anger and did not leave the office for half a month. Zhou Hongyi publicly expressed his determination several times to use the mobile phone business as a new growth point to revive 360's glory.

It’s hard to get Ali’s money, and it’s hard to stand in the team.

"Wow."

Huang Zhang picked up the teacup and poured it out. The tea and cigarette ashes flowed down the tea table and disappeared.

"Can I take Xie Jingxing's money?"

He asked a rather naive question. Bai Yongxiang sighed and patiently replied, "It depends on what he thinks. Since he has left a clue, he will contact us sooner or later."

"Boom bang bang."

There was a knock on the door, the door opened, and a young man appeared in the field of vision. His shirt sleeves were loosely rolled up, making him look particularly casual.

He nodded slightly, squinted his eyes to avoid the direct sunlight, and said with a relaxed smile on his lips: "I think I left something behind."

A pair of cufflinks lay quietly on the desk, with a warm luster that flashed a hint of clarity.

(End of this chapter)