Individuals living in the tide of the times are constrained by limited and chaotic sources of information mixed with a large amount of useless information, and it is difficult to distinguish what is happening at the moment.

Only those who have experienced it personally in the industry, or who look back on history in the future, will suddenly realize "Oh", and realize that so many interesting things happened at that time.

For example, the sales channel war that occurred in late 09 and early October, which lasted until around the Spring Festival and affected all major manufacturing companies, had a profound impact on the industry landscape for decades to come.

This drama began in early November when Su Ning first attacked JD.com.

In the next two weeks, major manufacturers were forced to stop supplying it with many reasons, including disrupting the normal market price order and being unable to provide normal business services.

For any manufacturer, it is unacceptable to lose traditional distribution channels before e-commerce channels grow.

Therefore, JD.com, whose sales volume is only a few hundred million for the time being and which blatantly cut prices for promotions, became the biggest victim and was forced to terminate its promotional activities.

It is not the first e-commerce platform to be harmed, nor will it be the last. There is no right or wrong in disputes over interests.

The love-hate relationship between traditional retail and e-commerce new retail will continue to be a wonderful drama in the next decade or so.

The matter should have ended here, but Pinxixi, which supported JD.com with 1.5 million home appliances, was completely exposed to traditional channel dealers.

In fact, even if Liu Qiangdong hadn't exposed it on Weibo, Gome would not have compromised easily given its nature. This was actually a collective counterattack by offline companies against e-commerce.

Pinduoduo, which pretends to be an offline channel dealer under the guise of an experience store but relies on an online mall to sell products across the country, is a far greater threat than JD.com.

If Pinxixi is allowed to grow smoothly, it will have convenient logistics and transportation, and its huge scale will reduce costs through centralized procurement without having to bear huge property expenses.

A giant that relies on online channels to expand its business across the country without any regional restrictions will be the nightmare of all channel dealers.

In mid-November, channel representative company Su Ning once again sent a sternly worded business letter to many manufacturers, publicly pointing out the many problems that existed.

This includes but is not limited to Pinxixi’s violation of the sales area protection system and the existence of serious cross-selling problems; it also gives away unlimited shopping vouchers through mall draws, which in turn lowers the actual retail price of products.

It affects the market positioning of manufacturers' first-line brands and causes confusion in consumer perception and product prices.

They hired part-time salesmen who had no professional product knowledge and used unprofessional or even deceptive means to obfuscate sales, resulting in a surge in complaints from consumers who purchased the products.

A series of adverse effects that disrupt normal commodity transactions have seriously damaged the interests of other dealers who strictly abide by the manufacturer's policies.

If this trend of unfair competition in the industry is allowed to spread, channel dealers led by Su Ning will be forced to use all means, including termination of cooperation, to launch a commercial counterattack.

This normal business inquiry letter should have been a confidential document between channel dealers and manufacturers, but it became a hot topic on the Internet from the very beginning.

The number of netizens participating in the discussion once reached millions, and there was even organized malicious smearing. For a time, there was an endless stream of negative information and bad reviews about Pinxixi.

Those competitors who lost in the competition in the takeout, express delivery, and urban group purchasing industries are unwilling to accept defeat and are planning to use this incident to collectively launch a general attack on the Qingyun Group.

The limited positive comments failed to create any waves and disappeared amid the vast amount of negative comments.

Behind this, there are inevitably people with ulterior motives fanning the flames.

Who let Pinxixi play with the construction of sinking markets, trying to bypass capital control by binding the interests of the majority of people and trying to break through in another way?

This is an unacceptable outcome. Capital hopes to control the most resources at the lowest cost.

Earn more profits with the least cost.

Even though capital can spend hundreds of millions or even billions of dollars blindly during the market capture phase, it is because they know that once they achieve a monopoly, they can earn back countless times.

But there is something obviously wrong with the Pinduoduo model, because the bulk of its expenditure is on labor costs. This guy is actually practicing common prosperity.

How does this work?
If the Pinxixi model is successful, how will the advantages of capital be reflected in the future?

Even if capital actively participates in it and achieves market monopoly in the future, what then?

This guy is obviously aiming to become a millionaire, and the salary he offers is far above the industry average.

If the average expenditure per person for these one million people is 100,000 yuan in the next year, 100 billion yuan will be spent on their salaries alone.

Can the leading companies in the e-commerce industry achieve a trillion-dollar sales scale in the future?
Investors have never doubted this point. They even believe that e-commerce can completely replace the traditional retail industry and that it would not be a problem to achieve a trillion-dollar target.

But the right to distribute profits must be in the hands of capital. You can't make 1 trillion and earn 150 billion, and then let all employees share the bulk of it, right?

Then what is the purpose of capital operation?
Why not just divide the shares? Wouldn't it be better to give one share to each person?

Dreaming!
Therefore, general capital has no intention of participating at all, while big capital with a long-term vision tries to join in and slowly influence and change the outcome.

For example, in the future, full-time employees will be changed into temporary workers through labor dispatch, and the five insurances and one fund that were originally required to be paid, as well as all the hidden welfare benefits, will be cut.

For example, the complementary business models of Fengniao and Pinxixi are good. All the links with low continuous input and output are outsourced. Why care about user experience?

It’s okay to spend a little more money to advertise to companies that control public opinion, and let the latter help manipulate public opinion and block unfavorable information.

Individuals whose interests are damaged should never think of fighting against large groups. Just as Li Zehua said in the meeting, what is the point of a company employing a group of legal personnel?
Isn't it just used to deal with those individuals who can't see the situation clearly (the original words are to deal with competitors' malicious slander, breach of contract, and infringement), and the cost savings are shared by everyone, how perfect.

The results reflected in the stock market are more direct. For example, JD.com, which has a sales volume of more than 2000 trillion yuan, should normally have a higher market value than Pinduoduo, which has a market value of more than billion yuan, right?
The result is exactly the opposite. JD.com, with a trillion-dollar revenue, has only a quarter of Pinduoduo's market value, which is exactly the opposite of its revenue.

JD.com's public data shows that it has more than 60 employees, while Pinduoduo has only 1.3. Relying on the huge difference in human resource expenditure costs, Pinduoduo managed to achieve a net profit of 600 billion.

It crushed the former by more than 200 billion in net profit and successfully topped the list of market value in Dongda's e-commerce industry.

This is the most direct thinking mode of capital. I invest money in you, not to ask you to do charity or to improve the welfare of grassroots employees.

It is not about asking you to use this business model to benefit so many families, change the fate of so many people, and make them live a good life.

What does this have to do with capital?

Real capital only cares about whether you can hand over 100% of the money you earn through legal or illegal channels to the capital after you occupy the market.

If they don't need people to do marketing, they would rather not pay anyone's salary and cut costs as much as possible to make more profits.

Once something happens, they immediately bribe people to manipulate public opinion, buy off connections, suppress the heat, and even better, get rid of the person who raised the problem.

If things get out of control, just give a little insignificant benefit and throw out a scapegoat to calm the public anger, and then the drinking and dancing will continue as usual, and everything will be peaceful.

They will never consider the so-called industry sustainability. If an industry fails, they will just switch to another track and continue playing, as long as they can make quick money and excess profits.

They mess up the market environment, and then blame ordinary people for not working hard. They are typically trying to squeeze every last penny and blame the poor for not spending.

Economic crisis, financial crisis and overproduction are basically the evil consequences of this extreme operation of capital. Only a very small number of people benefit, while the vast majority of people bear serious consequences.

The same principle applies to Pinduoduo at this moment. Most of the profits are taken away by the people below. This distribution model is very hateful.

Although it is unlikely that other capital will intervene to compete, the business model has a high probability of success, but what happens after it is successful?
The big capitals that have already joined or are about to join the game are very disgusted with this, while for competitors, it is resentment and despair.

Capital will never take out a single coin from its own pocket to share with others, let alone take the initiative to increase salaries and improve benefits for grassroots employees.

This is a fatal flaw that Taodiandian, Cainiao and the current Taoduoduo face when competing with the Qingyun system.

Without payment, employees will have no motivation, leading to large numbers of them being poached. Business development will not be sustainable, and customers will vote with their feet when there is a comparison of services.

Giving money will add a lot of extra burden. Looking at the dead state of Qingyun system, it is like starving ghosts every day and can never recruit enough people.

There is service when there are people, and there is no service when there are no people. You cannot expect a machine customer service to solve your actual problems.

How much money should be added, how many people should be recruited, and how many billions of funds should be invested to suppress the Qingyun Group?

How many tens of billions will it take to finally seize market share from the Qingyun Group and completely defeat it?
Once the bill was settled, everyone fell silent.

This leads to another mainstream thinking. Since you can't get rid of the Qingyun Group by adding to the companies you invested in, then find a way to take out the money and subtract from it.

Wouldn't it be fine if Qingyun Group could just collapse on its own, or find a way to stigmatize it in the market, making potential consumers hate it or even refuse to accept its services?

It is against this backdrop that the traditional distributors of home appliances collectively defected, in unison with many capitalists, and directly targeted Qingyun Group.

Fortunately, Li Zehua separated Pinxixi e-commerce and Pinxixi group buying in a timely manner. The group buying business relied entirely on capital operation, attracting a large number of top domestic and foreign capitals to join.

This is how they avoided being attacked by everyone. For a while, the Qingyun Public Relations Department, the Legal Affairs Team, and the malicious smearers started a series of head-on confrontations...

Manufacturers are not fools. Both online and offline channels are important. After all, capital cannot make consumers buy their products directly.

If they can really cover the sky with one hand, we should just give up eating and play capital operations every day. Pinxixi's sales channels must be protected.

But traditional channel dealers cannot be completely offended.

The best way is to let both parties take a step back and reach a compromise that is acceptable to both parties.

The interests of manufacturers are inevitably involved in this, but no matter what, business competition follows the natural law that strength is king, which no one can change.

In the specific negotiations, the weaker party is bound to suffer a loss, but how could Pinxixi agree to that?

For example, giving up the priority right to pick up best-selling models, shortening the collection cycle, and reducing the amount of national special subsidies given to Qingyun.

Pinxixi also requires manufacturers to submit a deposit to ensure that cross-regional sales that harm the interests of local dealers are effectively reduced.

That’s not all. There are a few individual manufacturers who even make other more excessive demands, such as guaranteeing exclusive supply of certain models, acquiring shares in Pinxixi at a low price, etc.

Sun Tongyu was already exhausted during the negotiation process with the manufacturers, and he also had to endure the investors such as Goldman Sachs, Citigroup, and Sequoia taking advantage of the opportunity to make things difficult for him.

It is obvious that there is no escape from the malicious interference of capital. They do not want to mess up Pinxixi, but simply want to force the latter to accept a lower valuation so that the capital can make a fortune.

In response, Li Zehua smiled without saying anything, just watching the situation develop coldly. He didn't even have any intention of leaving Yanjing and returning to the Magic City to take charge of the situation.

He leads a very fulfilling life every day. During the day, he meets with relevant leaders of ministries and commissions to express his personal views on the industry and expected future development rules.

Smartphone business, QR code promotion, and a little future outlook on cryptocurrency, the most important of which is smartphones.

Only when the leader asked him occasionally would he briefly mention the competition in the home appliance industry, and his response was fair competition based on ability.

In the evening, I met with the heads of manufacturers from all over the country, especially second- and third-tier manufacturers. These factories did not lose in product manufacturing.

However, they were suffering from the lack of sufficient funds to establish their own publicity, sales and after-sales systems. The emergence of Qingyun Group gave them hope of breaking through.

So they flocked to seek cooperation, including some former first-tier manufacturers who lost their market share for various reasons and now plan to make a comeback with the help of Qingyun.

Li Zehua accepted all of them.

He is not crazy, nor is he arrogant enough to challenge the bottom line of the country's mainstream home appliance manufacturers on his own.

Instead, it wants to use these manufacturers as bargaining chips to let everyone see that Pinxixi's channel sales capabilities are by no means comparable to just a few offline channel merchants.

Empty words are not enough. Only by achieving enough actual results and gaining market share that can be converted into real money can first-tier manufacturers believe in Pinxixi's strength.

To put it bluntly, Qingyun's monthly sales of 60 billion are nothing, not to mention that only a little over 50 billion of it comes from Pinxixi. Excluding the group buying business, the remaining 35 billion belongs to home appliance companies.

It is distributed among more than a dozen large factories, and numerous second-tier, third-tier, and even eighteenth-tier small factories. The larger ones, such as TCL, Midea, and Gree, each only have sales of several hundred million per month.

This is just a drop in the bucket. Compared to the sales of large companies that make tens of billions per year and five or six billion per month, it is less than one-tenth.

Although Pinxixi is very important, it is not irreplaceable. It represents the future, but how can there be a future without today?

Therefore, it is understandable that large manufacturers would show certain inclinations in the face of collective pressure from traditional channel dealers.

Li Zehua also clearly acknowledged this when talking with representatives sent by major manufacturers, but it is impossible to ask Pinxixi to give in because of this.

Especially when it comes to payment cycle negotiations, why should online payments be made a month earlier than offline payments?

Does the money online come from the wind?
Pinxixi, who was waiting to earn interest and loan quota from the money, rejected it without a second thought.

When facing friendly competitors with whom he had good cooperation in the past, Li Zehua did not go too far and just kept raising one point over and over again.

Since manufacturers do not trust Pinduoduo's sales channels, Pinduoduo will use its own capabilities to prove this.

The core of the problem is that people do not believe that e-commerce can replace traditional channel merchants in a short period of time, right?

Then use facts to prove everything!
“Pinxixi is not going to completely break up with its competitors. The basis of cooperation between the two sides will not change. There are just some minor differences temporarily.

Since neither party can accept the conditions proposed by the other party, let's seek common ground while reserving differences. The current terms of cooperation will remain unchanged for the time being!

Pinxixi will demonstrate its irreplaceable importance in its own way without harming the interests of its competitors."

As Li Zehua finished speaking, things happened one after another that shocked the representatives of the manufacturers...

On the 18th, Pinxixi announced that it had reached a preliminary strategic cooperation with Sichuan Changhong Group.

The latter will provide Pinxixi with a variety of combination products, that is, a combination sales model of best-selling products and slow-selling products, to clear Changhong's inventory and free up funds for the development of plasma technology.

Pinxixi has commissioned Changhong Group to manufacture new models exclusively for e-commerce sales (old inventory with new labels). These products will also be added to the group buying platform for promotion.

Taking advantage of these advantageous products, Pinxixi launched a Spring Festival home appliance shopping promotion in major cities across the country.

Any consumer who purchases designated Changhong products during the event will receive a direct subsidy of micropayment binding funds ranging from 100 to 2500 yuan, which can be deducted from consumption of any Qingyun product.

Or any unlimited shopping voucher of equal value on Pinxixi.

On the 19th, JD.com Group announced its joining of this strategic cooperation.

On the afternoon of the 19th, Fengniao Group and Yunyunbang Smart Logistics announced that they had reached a strategic cooperation in the nationwide transportation sector with Changhong, and would provide the latter with more preferential transportation services.

On the 20th, many manufacturers who received the news in advance publicly expressed regret, but did not close the door to negotiations with Pinxixi.

On the 20th, a number of second-tier home appliance, refrigerator, air conditioner and other product manufacturers and Pinxixi reached a nationwide business cooperation.

And authorize Pinxixi Group Buying to conduct group buying business.

On the 21st, offline channel dealers finally announced that they would significantly reduce prices within the next week to clear out the inventory of specific models provided by Changhong Group for Pinxixi.

In the next few days, you can see Pinxixi announcing a nationwide business cooperation with a specific brand almost every day.

In an open letter from the head office to all its employees, the company clearly expressed its determination to fight to the end and Qingyun Group would not accept any form of commercial blackmail.

For traditional channel dealers, there is only one word: war!

At this critical moment, Li Zehua, who was born with a big heart, visited BOE Technology Group as planned, as if nothing had happened.

I mean no other meaning. The trip to Hong Kong made him realize that if he did not master the core technology, he would never be able to make a living by making smart phones.

From the day they came back, Panda and Honor Electronics had only one goal, which was to never rely on foreign technology if they could develop their own technology.

We will never stand idly by and watch as domestic enterprises that can be supported develop.

We will contact domestic companies with whom we can achieve win-win cooperation for negotiations as soon as possible.

As soon as they can, they rush to buy the technologies and foreign companies that can be purchased.

Identify projects that cannot achieve PR breakthroughs and try every possible way to expand them overseas.

Capital can do subtraction to Qingyun Group, and Qingyun can also do subtraction to them through early planning.

The fire that burned the equipment ordered by the petal factory was still relatively small in Ames' history.

In this life, Mr. Li wants to add some fuel to it.

Well, Bitcoin needs to be developed, the dark web needs to be developed, and the geographical and zoological and botanical scientific expedition teams need to be developed. Only then will we be qualified to applaud and cheer.

First add a hundred tons to it and send Ames directly into space.

“I can’t survive, everyone stop playing!

This is the case with chips, smartphones, and the damn home appliance industry!
Home appliance channel war?

It controls the entire rural sales channel, has 300,000 full-time and part-time employees, has the industry's top salary and benefits system, and the most reasonable profit distribution ratio.

After the Chinese New Year, hundreds of millions of migrant workers return to their rural hometowns with their income. Don’t they want to improve the living environment of their family?
This year, beat them to death. Starting with me, no one in the entire Qingyun Group will have a holiday. I will deliver the goods myself on New Year’s Eve, and everyone will be paid triple the salary. Beat them!

With a hand of heavenly cards in hand, let's see who dies first! "

(End of this chapter)