When did smartphone manufacturers make money solely from selling hardware?
The supporting software services are the real money-making ones, and if you can form a strategic partnership with a software company, you will make a lot of money.
It’s because the market has not yet been standardized and mainstream manufacturers on the market do not have a clear understanding of the smartphone business.
For example, Baidu rushed to build a 13G network in 14/4. This was certainly because 3G did not conform to the core interests of Baidu (Qualcomm has too many patents, and Baidu only started to develop with 4G).
Restrictions are imposed on the development of many core businesses such as operating licenses, base station construction, and network coverage to prevent the telecommunications business from being completely controlled by the United States and the West.
Compared with foreign countries, China's telecommunications business went from the 2G era to the 4G era after a slight transition, so many Internet companies in the PC era do not have this sensitivity.
Mr. Li, who returned to this era using a cheating device, doesn't mind seizing this window of opportunity to leave his opponents behind. So what's wrong with 2g?
It is impossible to play short videos, but chatting on WeChat is still no problem. Within the signal coverage range, micro-payments can be done.
In particular, buying a mobile phone and getting a wifi router for free can meet the current Internet needs of most people, and is also in line with the development status of the three major operators.
There is strong pressure from above not to allow the transition to 3G marketization, to prevent core industries from being tied up by foreign capital, and to control the lifeline of the industry, and to require more use of 4G networks that have core intellectual property rights.
But such an investment needs to recover the cost. With a traffic card costing 18 to 38 yuan a month, tens of millions of users can contribute to billion yuan in revenue every year, plus there are many business office needs.
Every penny earned counts. Based on Qingyun Group's strength and credit endorsement, the three major operators finally softened their stance and agreed to purchase hundreds of thousands of Panda and Honor phones.
Based on a three-year contract, the company does not make money from hardware costs, but earns interest and data package fees for the next 36-60 months.
Roewe mainly makes money from the basic guaranteed traffic income in the rural market that did not exist originally. It is better to use wifi than not having a mobile phone and not making a penny.
The target customer groups in He Li's plan are mostly in rural areas, mainly farmers who have business dealings with Qingyun Group, plus the market of college students.
Wu Yibin and Xiao Chengdong looked at each other, feeling both pain and happiness. The user scale is of course useful. They believe that based on Qingyun Agriculture and the food delivery e-commerce platform, they can let these people use WeChat.
Using micropayment is not a problem. The key is that they only want high-quality customers such as college students. They don't pay much attention to rural customers, so they are naturally hesitant to pay and bargain.
"Confused! Short-sighted!"
Li Zehua is very tired. He has said more than once that he needs to compete with the migrant worker market and the college student market. Who has the most people in the country?
Elderly parents, migrant workers, and left-behind children in rural areas!
But no matter how many times he emphasized it, these people just didn't get the point. They only focused on the young people who were most likely to achieve results, without thinking too much.
After ten years of hard work, QQ has become the Chinese civilian software in the minds of countless young people. Is it possible to defeat it through head-on competition?
“I will emphasize once again, anyone who still holds on to the delusion that the Group is so powerful and has the resources to defeat Tengda head-on, get the hell out of here!
I have said it many times that we should cultivate the use of WeChat and micropayments among middle-aged and elderly people in rural areas through hands-on education, and influence young people by seizing the first wave of mobile Internet users.
We are promoting WeChat technology little by little by enabling people to make money, support their families, and deepen communication with their families. We are using the numerical advantage in rural areas to in turn force young people to accept WeChat.
This is the core of WeChat Technology's success. Instead of worrying about how much you have to pay for each pre-installed software, you might as well think about it carefully once you succeed.
How much will WeChat Technology’s market value be in the future! ”
Wu Yibin was not afraid of his boss who was firing on all cylinders. "Boss, let's talk business. You appointed me as the president of WeChat Technology, so I have to be responsible for the company's business.
You only talk about the joy of success, but ignore the risks of failure. According to your approach, you should focus on rural areas, complete the layout in two to three years, and then take advantage of the opportunity to soar into the sky.
But in this process, getting 100 million users would conservatively require an investment of 10 to 20 billion yuan. Will the state-owned shareholders you have attracted agree to such a huge investment?
What if there are no high-quality young urban users who do not recognize the value of WeChat? What if Tenda seizes the young urban consumer market on a large scale at this stage?
How should we deal with the situation where we have to use young people to tie up our families and take the lead in completing the industry layout?
For the market, young people with purchasing power, even if their scale is slightly smaller, have more promising economic and advertising value than WeChat, which has a large rural population.
Once capital reaches a consensus, how much money will the group have to spend to reverse the unfavorable situation?
Finally, I have to say something unpleasant. In this world, we have only heard of parents who make endless compromises with their children, but we have never heard of children who change their choices to suit their parents' wishes.
Maybe young people will think WeChat is outdated and not cool at all, and they are ashamed to use the same app as their rural parents."
What to do? Let's cook it cold.
This is the biggest difference between time travelers and outstanding talents who develop step by step. Is Wu Yibin wrong?
That’s right. 20 billion is invested in making a software, and it is invested in rural areas with extremely low output-return ratio. The investors will run away first. What’s the point of doing it without money?
The question is, Li Zehua knows that the highest market value in the history of Tencent is 7 trillion Hong Kong dollars. If you don’t believe me, go ask Jack Ma and let him travel back 10 years to see if he is willing to spend billion to sell everything he has to create WeChat?
The answer is yes. He will try his best to raise the money to make money by just eating and drinking in the traffic pool, let alone double the money.
This is even more obvious with Li Zehua. There are more than 10,000 Pinxixi experience stores covering rural areas, and this number is increasing every day, approaching two million full-time and part-time employees.
If you ask him to give up working on WeChat Technology, wouldn't that be asking for his life?
According to his idea, other businesses can be stopped as long as Roewe mobile phones can be sold successfully in rural areas and all customers developed with the help of Qingyun Agriculture can be mobilized.
Buy a mobile phone and use WeChat and micropayment to better create production value. As long as this concept is promoted, it can affect tens of millions of rural users.
On the other hand, we can grab a part of the college student market, and through these two groups, we can bind them with life services and convenient services (takeout, express delivery, and online shopping), and bring everything that Qingyun can bring.
Once Roewe sells 10 million units in the city, it will immediately launch shared power banks and shared cars, which will then trigger another wave of sales. During this period, the group will also influence its friendly logistics and manufacturing companies.
It can also provide a consumer market of millions of people using WeChat micropayments. When the time is right, it can fully promote offline payment plans and completely establish its leading position in micropayments.
During the development of mobile Internet, the various businesses under Qingyun Group have been able to establish industry barriers by seizing first-mover advantages and leaving their competitors far behind.
By the time companies like Tengda and Ali came to their senses and wanted to use their connections with the upper echelons to conduct antitrust investigations, Qingyun had already developed into a super giant enterprise.
The higher-ups want to split up, and Qingyun cannot stop it, but it can delay it, as long as it delays until 15 when foreign capital starts to reap the profits and forces the country to fulfill its WTO commitments and engage in open confrontation.
Qingyun's opportunity has come. He must be the first to resist and harvest, lead domestic enterprises to go overseas on a large scale to expand Dongda's economic influence, and become the vanguard in fighting against Youtai Capital worldwide.
At this time, the country will not cut off the source of the problem, right?
I always want Qingyun to take the blame, at the very least gain forgiveness, mobilize public opinion to gain general support, and delay the time of splitting up.
Different views on business operation models will naturally lead to conflicts. Wu Yibin also discusses issues based on facts and tries his best to express his own views before a resolution is reached.
He also has quite a lot of support.
"I don't know if you are still saying that you are ignorant and fearless, or if you are really that awesome. Is Tengda, with a market value of HK$3000 billion, that easy to deal with?"
Li Zehua couldn't help but smile bitterly when he said this. Historically, Tenda was worth 2500 billion at that time, because a bunch of Internet companies he created were desperately sending advertising orders to Tenda.
Coupled with the huge demand for traffic, the market's expectations for Tenda's future commercial value have been raised in disguise, making Tenda's market value higher and more difficult to deal with.
As for Ali, it is better not to mention it. Its food delivery and express delivery businesses have failed one after another, and the equity dispute over payment and insurance has not been settled, dragging down Ali International's share price from 850 billion Hong Kong dollars to more than 600 billion.
There are rumors now that Ali is planning to delist from Hong Kong.
"Who can guarantee that we can defeat Tengda in a head-on competition with the support of 70-90 million people?"
Xiao Chengdong pursed his lips, "Everything depends on human effort. Nowadays, the number of active customers of Weifuzhi is no less than that of Alipay. They just have a first-mover advantage. In another two years, we will definitely be the first."
“How can it be the same? Two Pinxixi plus an entire logistics and express delivery business, and the bonus of the food delivery industry can barely catch up with the number of active users of Alipay.
Even so, the total user scale is less than 40% of others, and there is still a long way to go." Li Zehua said unhappily, and then fired at Wu Yibin, "The investigation has been done, and you have also read the hundreds of thousands of questionnaire reports. Enterprise WeChat can't even beat Microsoft's email in China.
How can you guarantee that you can beat Tengda through competition in urban areas? "
Wu Yibin was not completely unprepared. He simply promoted the Internet cafe, traditional news media channels, and friendly business channels.
He even took advantage of the advertising space affected by the TV screen control chip. In addition, WeChat for Business connected to WeChat software provided built-in traffic. He said with full confidence:
"As long as we can connect corporate WeChat and personal WeChat, it will be equivalent to having a user base of nearly 500 million, and then we can add companies such as Fengniao, Chime, Pinxixi, and Yunyunbang.
The docking window between corporate WeChat and users has been transferred to personal WeChat. We use our special influence in the university town and various friendly companies to bind through mandatory promotion.
By joining forces with the three major operators and using the mobile phone address book to copy and add contacts immediately, we can have 30 to 40 million users in less than a year..."
I have to say, the idea is very good.
Only the three major operators disagreed, especially China Mobile. They planned to use Fetion to acquire 80% of WeChat's shares. They said, "We have 5 million users. If we merge, you will get a big advantage."
Li Zehua would have to be crazy to agree to this. Fetion's customers have no loyalty at all and they would be snatched away in minutes as soon as WeChat takes off. Let alone 80% of the shares, he would not even give 0.8%.
Wu Yibin was also troubled by this problem. "How about I continue the negotiation and try to buy Fetion at a suitable price, and then use China Mobile's resources to smoothly import the address book?"
"Come on, China Mobile is now talking about competing with QQ, saying that Tenda, which started out with QQ, has a market value of 3000 billion yuan, and Fetion must be at least half of that, which is 1500 billion yuan.
Look at how much I can get for my body. If you don't mind, just sell it for money."
Li Zehua declined the offer, "Another thing is that the group's one-card system is verified through the ID card number, and this is also the way to get a unique QR code account.
Bypass the mobile phone number to receive the verification code..."
In this life, Li Zehua wants to try to bypass the three major operators through technical means, or at least use this bargaining chip to force later operators to compromise.
It’s just a mobile phone address book. If you don’t want to give it to me, then don’t give it to me. At most, the group will use more than 100,000 marketing personnel to create a complete market little by little.
Wu Yibin was at a loss and was back to square one. He still had to do it step by step on his own. Without the approval of the operators, it would be difficult for WeChat to complete the business loop in the first place.
This leaves enough room for Tengda QQ to survive. In urban areas, the opponent has an inherent overwhelming advantage, and it is difficult for WeChat to break through smoothly. It can only take the route of breaking through in towns and villages.
In desperation, he could only go to He Li to discuss the specific price.
"These are not important. What is important is how to motivate grassroots employees to promote sales, especially Pinxixi. We need to add more people, and each experience store needs to add at least two software promotion positions.
We must complete the cultivation of consumers in rural areas as quickly as possible, especially rural customers with purchasing and sales transactions.
We must notify them immediately and convince them that WeChat micropayment is not just a simple communication and payment tool, but an essential tool for their production and life.
Let them make money through these two software.
Zhou Anquan and Feng Mingcheng, thank you both for your hard work. Over the next year, the Technical R&D Department must step up its efforts and do everything possible to integrate all the business of the group.
They are all installed on my mobile phone, including but not limited to information exchange for monitoring and security, video and voice for WeChat, convenient payment for micropayment, not to mention other services.
Also, Lao Zhou, please pay special attention to the read but not replied function in corporate WeChat. Please stop it. The privacy of users must be guaranteed in personal WeChat.
As for the chat function of personal WeChat and corporate WeChat, most of them are used by salesmen, food delivery, and customer service to connect with consumers. How to display it specifically helps you collect more feedback.
In short, don't let ordinary consumers feel that their every move is being monitored. I don't know much about technology, so you can figure it out for yourself."
After saying this, he turned to Sun Tongyu and said: "No matter how much money Roewe negotiates with you for each active customer, in a word, within three years, all of Roewe's research and development expenses will be covered.
All of them are borne by Qingyun Investment, and all profits are used for team building and sales and after-sales channel construction. To put it simply, half of the net profit is given to Pinxixi and other companies.
Just promote it as much as you can. My personal estimate is that at least 100 yuan will be charged for each unit, which is 50 yuan in half, equivalent to more than 6% of marketing expenses.
Let's set a ratio, 20/20/10. We'll get a 20 yuan commission for selling a mobile phone, and a 20 yuan reward for teaching consumers how to use it and making them active users of the group's software. The group will take 10 yuan for operating costs.
As for the 50 left by Roewe, the advertising fee will definitely account for the majority, and the rest will be used to pay salaries.”
He Li certainly had no objection. The bulk of the expenses were on scientific research. After agreeing with his boss to increase R&D expenses based on sales volume, he was able to sit back and relax.
“Later, each subsidiary involved in the rural market, college student market, and friendly competitor market will claim sales. Those who complete the sales will be rewarded handsomely, and those who fail will be transferred to other positions. There is no room for negotiation.
In short, the first phase of 30 million units must be sold out in one year and six months. Even if I have to give them away, I have to send them to the target customers!"
Seeing that the voices of opposition were gradually dying down, Li Zehua made the final decision immediately.
Then he went on to say the second thing, "The promotion of WeChat technology and micropayment in China is also based on the adoption system. Within 18 months, the user base must reach 30 million, which is the bottom line!
Before January 2012, 1, the marketing expenses that Qingyun Investment prepared for the two companies were capped at 1 billion/25 billion, which did not include personnel expenses, equipment investment, and technology research and development investment.
After 2012, the minimum investment in marketing expenses will be 50 billion yuan per year, with no upper limit..."
"Hiss~"×n.
For a moment, the entire venue was stunned.
"Are you kidding me? The minimum investment is 50 billion, is there any upper limit?"
Wu Yibin was stunned by this generous expenditure. How could he spend so much money?
“I don’t know if you have noticed that Alipay has always had a gift package for new customers, but at this stage, the user scale of the computer side is limited and it has not become a trend.
Before I talk about this, let me ask you all, you are also senior users who have been using mobile Internet for more than half a year. Are you very happy with the unlimited data package of 1688 yuan per month? "
Li Zehua glanced at the venue and continued, "The only result of using data as you please is convenience. Most of the time, you use smartphones for work.
But when 3g and 4g networks begin to be promoted on a large scale, Internet traffic charges will inevitably drop significantly, and then every ordinary person will be able to afford it.
As for them, they neither have the work demands of everyone here nor the strong self-control. I am afraid there is no need to say more about what will happen as a result.
For things like impulse buying, comparison, meaningless spending, and face-saving spending, we only need simple guidance, coupled with the upcoming micropayment feature, Huabei, and payment insurance.
Everyone can see the commercial value contained therein.
So theoretically, once this market starts to become popular and it is connected to the over 10 billion online payment consumers across the country who use it every day, any investment is possible!
Considering the offline application scenarios of scanning the QR code, I even doubt whether 50 billion can last for 100 days. As long as this battle starts, it is destined to be a fight to the death.
In this winner-takes-all era, if you don’t want to die, you can only grit your teeth and keep going until the winner is decided…” (End of this chapter)