Liu Qiangdong never dreamed that he was destined to be unable to escape the clutches of Tengda in his lifetime.

Historically, on the eve of JD.com's listing, Tengda did not care about its manners and pushed its own b2c e-commerce platform, spending money frantically on subsidies to snatch JD.com's customer traffic, forcing the latter to pay more fees to deal with it.

Everyone knows that Tenda is trying to disgust JD.com at a critical moment in order to force the latter to accept Tenda as its major shareholder and become a vital part of Tenda's ecological business circle.

Liu Qiangdong had no choice. If he didn't accept it, investors would question his market competitiveness. After all, being targeted by Tenda would be hard even for Ali. If he didn't win, wouldn't his investment be wasted?
So after a big fight, JD.com was forced to accept Tenda under the joint pressure of all shareholders. Well, after merging with a competitor, there shouldn't be any need to mention risks, right?
Now, a more serious butterfly effect is coming.

Ali is preparing to reorganize Taotao Mall, changing its previous self-operated model that was mainly a brand image display store. It also intends to introduce Tengda's traffic and resources for joint development.

Tengda has many advertising resources in manufacturing, home appliances, clothing, and cosmetics in eastern Guangdong. Now, if they are combined with Ali's well-known overseas brands, it will be more than enough to become a large agent.

The most crucial point is that Tengda Ali's cash flow is much stronger than that of JD.com. Relying on the product information data accumulated by Taotao, the newly born Taotao Mall has the advantage of funds and connections.

In terms of purchasing volume, cost, promotion, etc., it has advantages over JD.com...

“According to the information we have received so far, almost all the merchants selling popular products on JD.com have received letters from Ali asking for cooperation.

Especially for the company's main products, Ali signed a purchase volume three times that of ours in one go. Except for the exclusive cooperative source of goods, all other products were targeted.

Once Ali successfully seizes competitor resources, there is no doubt that a price war will follow.

Chairman, we must find a way to reverse this unfavorable situation, otherwise the third round of financing is likely to be affected..."

Facing the worried report from the vice president, Liu Qiangdong was not obviously flustered. Instead, he made up his mind, "Let's do joint procurement. It happens that the company's account is short of funds, and we can also use the Pinxixi channel.

Get a more favorable account period, at most give them a portion of the handling fee, and ask Pinxixi to advance the funds for you to get through the financing period first, and then think of other ways after the funds are in place. "

"Joint procurement?"

The vice president was stunned. “Doesn’t that mean we are handing the initiative to Pinxixi? If we are not careful, we might become their vassal in the future.”

"It's not that exaggerated. These are just temporary solutions. The bottom line is that the company is short of funds. The 20 billion yuan we just got through Qingyun Guarantee has somewhere to go."

Liu Qiangdong looked at the latest Pinxixi data. Under the leadership of Sun Tongyu, Pinxixi's e-commerce has shown a leap forward in development this year, with home appliances still the mainstream.

In particular, LCD TVs, refrigerators, air conditioners, washing machines, and smart phones account for nearly half of sales. These five series are also the products with the largest share of centralized procurement.

JD.com has developed to this day, and although its core business is still digital products, it has gradually freed itself from the control of a single series and developed into an omni-channel sales network. It is a bit weak, but fortunately it is on the right track.

"It's a good opportunity to lower the unit price of other series. After joint procurement with Qingyun, we can also use its channels to include products that we didn't cooperate with before into JD's operation scope."

Liu Qiangdong has a long-term vision. "It goes without saying that Qingyun will know the details of the group's purchases in the future. In fact, everyone knows that Mr. Li is a major shareholder of JD.com and knows the specific business details of each period.

As usual, a copy will be sent to him. Hiding it or not is like taking off your pants to fart. It's unnecessary!"

Under normal circumstances, a company's procurement information, including the final cost, is top secret. Once it is fully mastered by competitors, the company will be in an absolutely passive position.

But Qingyun is not an enemy, or JD.com cannot afford to provoke such a powerful enemy for the time being. The two parties have jointly purchased from home appliance companies as early as the beginning of Pinxixi's launch.

At present, the scope is just being expanded to cover all areas.

"It's decided. If shareholders have any questions, Mr. Li and I will explain them, and you are responsible for the execution."

Liu Qiangdong ended the topic with one sentence, "For reasons that are well known to all, Ali will inevitably trigger a price war in the e-commerce industry in an attempt to force the group to compromise.

The company cannot sit still and wait for death. I have exchanged views with many senior CEOs in the industry, and they believe that even if Ali has the backing of Tenda Resources, it will not be able to complete internal adjustments within two or three months.

So I plan to take advantage of this opportunity to deal with several competing companies such as Dangdang, and take the lead in defeating competitors in the fields of books, beauty products, and high-end clothing to consolidate the basic market..."

JD.com had fought with Dangdang once before, and the outcome was of course that JD.com won a small victory, but it did not involve Dangdang’s core business because the latter has exclusive resources for education and training.

But now it is completely different. Because of its long-term good cooperative relationship with the education system, Qingyun has also obtained some resources in disguise. It can take this opportunity to go deeper into the industry segments and seize the initiative.

“According to ancient military tactics, it is right to dispatch troops to eliminate hidden dangers before every decisive battle, but Dangdang and other e-commerce companies in niche areas are quite powerful. What if we fail to take them down in a short period of time?
Wouldn't that bring more trouble to the group?"

The executives are not fools. After fighting with Dangdang for so long, it is easy to gain competitive advantage, but it is difficult to completely defeat the opponent.

Liu Qiangdong also had a plan in mind, "So if I don't move this time, I'll do it with a force as powerful as thunder and lightning, and defeat Dangdang in an instant.

I have decided to launch the JD Book Month event, targeting all types of books on Dangdang, regardless of whether they involve exclusive resources, as long as they can be purchased through legal channels.

We will reduce the price of the Dangdang display page by half, and be ready to deal with Dangdang's counterattack at any time. Whether it follows or not, the price of our company's products will always be one yuan lower than its price..."

The subordinates were all terrified, “The problem is, there is not enough funds in the company account!

How about investing the funds in logistics and image stores first and withdrawing some of them?"

Dong Ge shook his head and said, "Don't worry about the funds. I will borrow money from friendly companies in the name of the company. Just go ahead and execute it."

After he finished the meeting, the unlucky Li Zehua successfully received his call.

"No, can you find someone else to get the wool from? I just got you 20 billion from the bank through a credit guarantee, and you want another 10 billion?"

Liu Qiangdong chuckled and said, "Using the shares of industrial investment as collateral, it will take at most half a year. There is a project in the third round of financing that is specifically used to repay the accumulated debts.

Don't worry, as long as we can defeat Dangdang successfully in this round, we can focus on dealing with Tengda Ahri later."

"Don't be ridiculous. You still need money for the investment share of the industrial fund. Besides, this is a second mortgage, which is illegal."

Li Zehua shook his head wildly, "Instead of launching a blitzkrieg, it is better to build a solid foundation and become the national general agent of a big brand, using the JD platform, without increasing the number of sales staff or spending too much money, and making use of the manufacturer's resources.

By establishing JD.com’s own procurement and distribution channels, on the one hand, it can use its status as a general agent to demand payment from manufacturers.

On the one hand, they can collect payment in advance from the distributors below, and sell tens of thousands of products at will, thus holding tens or even hundreds of billions of working capital in their hands.

While having endless funds, we can also bind more manufacturers and make them inseparable from the JD system."

Li Zehua did this all for JD.com's sake. He wanted to do it himself, but Pinxixi's business was not compatible with the general agent model.

JD.com is more like an online grocery store that sells everything, and it is the merchant itself.

Pinxixi is similar to a distribution market, renting out shops and charging commissions. The merchants can be individuals, factories, or agents. Regardless of how sales are made, commission income is the main source of income.

It is not impossible to adopt the general agent model, but when you do the math, you will have to add related departments for unified management, and the experience stores below will also have to increase their business, which is not cost-effective.

Moreover, the biggest advantage of the general agent model is that it optimizes the capital chain. By taking advantage of the time difference, a large amount of accounts payable can be controlled at any time. JD.com has the demand, but it is useless to Pinxixi.

Not only is it useless, it is also harmful. It will cause merchants who have opened online stores on Pinduoduo to become disloyal, thinking that Pinduoduo is trying to steal their business.

Liu Qiangdong naturally understood the whole story and was happy to accept the identity of general agent. For example, Lenovo and some Qingyun OEM and OEM manufacturing products were all represented by JD.com.

Its products are shipped across the country through its channels, and even a portion of Roewe Electronics' offline channels are allocated to JD.com, aiming to strengthen the relationship between the two companies.

However, he still insisted that the general agent model is a long-term process. Without ten years of hard work, it would not be possible to build the foundation for JD.com's trillion-dollar sales. "The most important thing now is to seize the niche market before Ali takes action. At least we need to get exclusive resources in three or four major industries. At present, we only have one digital product, which is purely domestically produced.

I’m worried.”

Li Zehua was in a lot of trouble. "Last time, Lian wanted to provoke Gome and Suning to start a price war offline, and Dangdang also got involved. You tried, but didn't win, right?
Are you sure this time?"

"It was a different time. At that time, JD.com could still get a share of Tenda's traffic promotion. Now, the traffic-driving effect of WeChat is more than twice that of Tenda QQ."

Liu Qiangdong said without hesitation: "Without traffic support, if JD wants to go further, it needs hot products that naturally bring traffic to attract consumers, and books involve students and parents.

It is a natural and excellent product that attracts a lot of traffic, especially because of your special relationship with universities, and you can provide online distribution channel support for a variety of authoritative books. This is your biggest advantage.

Various professional books, extracurricular tutoring materials, book illustrations, enlightenment education, catching the children is equivalent to catching the parents, what is there not to worry about?
Don’t forget that you are a major shareholder of JD.com. If we win this battle and the valuation goes up, you will be the biggest beneficiary.”

"These advantages can only give you an advantage, but they are not enough to win the competition. What if Dangdang suddenly becomes desperate and goes to Tengda Ali for cooperation? Wouldn't that be a disguised way of giving resources to Ali?"

Li Zehua felt that what he said made sense, but it was obviously not something that could be relied upon to win in a short period of time.

Liu Qiangdong said mysteriously, "Just wait and see, those two are not the same kind of people. If you want to blame someone, blame you for creating Pinduoduo, which is so infuriating. Anyway, I see it clearly.

Li Zhongqiu and Yu Yu have obvious conflicts in their views on the future development of the company..."

Well, this is another company that was led astray by the sudden emergence of Qingyun. The original Shikong Dangdang was listed in early December 2010.

But now, not only has the company not been listed, the couple has also had a premature divorce. In the final analysis, it is because they have a principled conflict over the future development direction of the company.

Li Zhongqiu wants to take root in China, base himself on the book business, and develop into refined and segmented fields. At the very least, he can become an industry leader in the future.

Yu Yu comes from Wall Street and has her own ideas about how to value large companies. When it comes to pleasing capital, even Li Zhongqiu can't match her.

Because Qingyun gradually gained control of educational resources and began to get involved in publishing business, Yu Yu became very alert. He repeatedly asked for the company to expand and complete its business at the board meeting and cited the success story of Amazon.

However, Li Zhongqiu turned a deaf ear to them, and the conflict between the couple became more and more serious. They even brought the opposing emotions into their daily lives and began to confront each other.

It is based on this premise that Liu Qiangdong appears so confident. If he can make one of the couple explode at a critical moment, the remaining one will have no chance of controlling the company safely.

Li Zehua is not a person who follows the rules. When he heard that there was a chance, he immediately made a move, "Are you sure?"

Who doesn’t like winning and getting to eat melons at the same time?

Just like half a month ago, Youku successfully went public in the United States, while Tudou, a leading company in the industry, was delayed due to the issue of property division after the couple’s divorce.

As the saying goes, one step slow means all steps are slow. Tudou lost its initiative and eventually had to sell itself to Youku. This is the importance of first-mover advantage.

This also fully illustrates a problem: investment is really a metaphysical issue. Even if you have all the advantages, huge profits may be lost in the end due to the personal family factors of the founder.

It is said that since then, every founder who has been invested in has to sign a similar agreement to ensure the stability of their relationship and marriage, such as Dangdang?
That is a complete capital desert. Is there any business that is more difficult to control than a couple jointly holding shares and running the business?

If it weren't for the sunk costs in the previous venture capital, once the Tudou incident broke out, everyone would have wished their parents had two fewer legs because they run so slowly!
"Ninety-nine percent, Li Zhongqiu can't beat Yu Yu anyway. After all, she controls all the venture capital financing channels. How can she run an e-commerce business without money?

In addition, I sent people to lobby venture capital firms, using Tudou and other similar companies as examples. Even if I couldn't stop venture capital firms from continuing to invest money, I could at least hinder their response.

Don’t forget that JD.com’s third round of financing is about to begin. If several venture capitalists are willing to take the initiative to assume responsibility and help JD.com win the competition.

Maybe we can even allocate some shares to them as welfare."

You can't tell, but Dong Ge, this guy with thick eyebrows and big eyes, is no worse than others when it comes to using tricks.

Li Zehua agreed, "Then go for it. By the way, send me a copy of the information that couple found out, and I will take it to the board of directors to convince others."

"No problem. I'll use the shares of the industrial investment fund as collateral and give it to you at the same interest rate as the bank."

……

With the money, Dong Ge straightened his back instantly. With Qingyun's resources in the field of education, he personally visited almost all large and medium-sized publishing houses in Yanjing.

He did not mention starting a price war, but simply signed supplementary agreements with various companies in advance, stating that books will be promoted as the main product in the coming year and that he is confident that sales will increase fivefold.

Everyone was very happy when the contract was signed, but before New Year’s Day, they were scared to death by JD.com’s big move!
"What a fucking psychopath, right? Here comes another lunatic who refuses to make money!"

What awaits major publishing houses is that JD.com will launch a book month across the board on Christmas Day in the West, offering a free reading promotion.

Wow, they cut the book prices in half in one go, and as if that wasn’t enough, the homepage has a banner with a huge price comparison across the entire network and amazing discounts.

When you click in, you will see a plethora of coupons, but most of them are coupons for discounts on other product series when you buy books, as if they are meant to attract customers.

Originally, a hardcover edition of one of the Four Great Classical Novels would cost at least three or five hundred thousand yuan. Now that it’s discounted, guess how much it costs?
Hey, it’s only 9.9 yuan with free shipping. I just want to ask you if you are afraid.

What makes law students and engineering students ecstatic is that JD’s book channel offers even boring professional books at an absolutely cheap price.

The brick-shaped book that originally cost one or two hundred yuan per copy can now be taken home for only 29.9 yuan, and other fairy tale books are being sold at a discount.

In short, in an instant, Dangdang and companies in the field of educational books were stunned.

Yu Yu was asking around to find out what was going on and why Jingdong was attacking Dangdang's vital point just because of a disagreement!

"Are you trying to stop Dangdang from going public?"

Yu Yu couldn't figure it out. "But that's not right. Dangdang's dispute with Li Zhongqiu is unresolved, and the performance bet this year was not ideal, so the attempt to go public was unsuccessful.

A large and comprehensive business requires a huge amount of capital, and investors also have concerns. They want to learn from Pinxixi and enter the rural market, but they are also worried about over-investment and too great risks.

Several rounds of communication have yielded no results, so what exactly does JD.com want to do? "

She doesn't understand, and the offline book agents and bookstores don't understand even more.

How can you do things this way?
Are you going to destroy everyone's jobs because of a disagreement?

But no matter how the industry accuses them, Liu Qiangdong and JD.com remain silent. They do not respond, and the media can only speculate.

Jack Ma, on the other hand, understood a little and couldn't help but give a thumbs up, "He is a ruthless person. For the sake of market share and effective traffic, he has the courage to cut his own back.

But this method is useless to Ahri."

In fact, Pinxixi did not take away much of Taotao's volume, because most of its new markets are in rural areas, which are additional growth and snatch revenue from physical stores.

On the contrary, the JD model has a greater impact on Taotao.

When communicating with investors, Jack Ma explicitly mentioned that if JD.com is to be attacked, Qingyun will have too many members and the investors behind it will have complaints.

If he doesn't help, then I'll take the opportunity to defeat Liu Qiangdong and make him the first to be eliminated. (End of this chapter)