Chapter 515 The Cornerstone of Taobao

The major MP3 brands set up an anti-Mango alliance, which not only issued a severe warning to the two companies that manufacture for Mango, but also issued an ultimatum to other foundries in the industry. The purpose is one: Whoever cooperates with Mango is everyone's public enemy. , will be resisted by the entire industry.

The companies that did not cooperate with Mango are secretly grateful. At the same time, they hold an emergency meeting internally, requesting that they not cooperate with any companies related to Mango and EasyTing. Now the entire MP3 industry is divided into three camps, one is high-end The import camp from Japan and South Korea, they sell the best quality and brands themselves, so they don't care too much about the price war; one is that the middle ones are grabbing food from Japanese and South Korean enterprises by cost performance, and now they are huge domestic MP3s that Mango uses cost performance to slag in seconds. Camp, they account for more than 70% of the entire industry; the last camp is the Mango that has just emerged.

The war between the latter two may be imminent, so for the foundries, the time has come to stand in line.

There is no doubt that everyone is trying to make money, and no one dares to take risks and oppose the entire industry. Therefore, before Mango can be officially released, it has been isolated by the industry.

The only two remaining "comrades-in-arms" around him were the OEM partners who were tied up by Li Mu with more than 20 million in cash.

The two foundries have been constantly receiving threats and warnings from other partners, asking them to immediately stop their cooperation with Mango, but for them, it is now beyond their control.

In order not to make themselves the target of public criticism of the entire industry, these two companies have called and faxed back to their partners, telling them that they are also being forced to do so. I have come to invest in a new production line. If I break the contract now, I will have to pay more than 100 million yuan. As a foundry, how much is the annual profit?

The major MP3 brands received the replies from these two companies, and while scolding Mango for being shameless, they continued to threaten the two companies. Their attitude was very simple: We don't care what kind of contract you signed with Mango, we only look at the results. If you continue to If you make products for Mango and help Mango suppress other brands in disguise, then everyone will immediately terminate the cooperation agreement and will never have any OEM cooperation with these two companies in the future.

OEM contracts are mostly signed once a month, or once a quarter. Since the brand owner is Party A, the responsibilities for their breach of contract are also very lightly divided in the contract. The big deal is to pay tens of thousands or hundreds of thousands to be able to immediately pay. Stop cooperating with the foundry. At this time, in order to kill the chickens and show the monkeys, they must be willing to bear the cost of this breach of contract.

The two foundry companies almost went crazy. More than 80% of their production capacity was given to these brands. If they really stopped cooperation, what would they eat in the future.

But,

If more than one million units of goods are not produced by Mango according to the contract, the compensation they will face at that time will be even more frightening.

After several times of measurement, the two foundry companies chose to talk to Mango's interface person, vaguely revealing their intention of not being able to cooperate due to pressure. As a result, Mango's business interface person directly said: "Concrete cooperation If you want to communicate with me about matters involving legal issues, don’t communicate with me, go and communicate with our legal counsel, our legal counsel’s phone number is…”

Mango has no room for relaxation at all. In order to completely isolate Mango, other MP3 brands have already begun to prepare letters of termination. They want to completely terminate the contracts with these two companies, which makes the two companies fall into despair in an instant.

When the front-end business of Muye Technology got the news and immediately reported the news to Li Mu, Li Mu was having a meeting with Liu Qidong's team on Taobao.com.

After Li Mu heard about these things on the phone, he was in a good mood and explained to the other party: "Pay close attention to the situation here, if those MP3 companies really terminate their contracts, you will immediately follow up on behalf of Mango and empty them all. All the production capacity has been taken down, but don’t talk about it now, wait for them to despair before going to talk to them.”

The front-end business immediately understood: "Don't worry, Mr. Li, I understand."

After hanging up the phone, Li Mu smiled and said to everyone at the meeting: "Our Mango brand and YiTing.com are now on the MP3 industry blacklist."

Everyone looked at Li Mu curiously, waiting for a more detailed follow-up.

Li Mu continued: "The current situation is that the vast majority of MP3 brands have formed an alliance specifically for Mango and YiTing.com, collectively putting pressure on all foundries, asking them not to cooperate with us and not for We OEM products, and now most MP3 OEM companies have also expressed their stance that they will not cooperate with us in any form."

Hearing this sentence, some people below looked surprised, while others were quite worried, but Liu Rongdong smiled especially brightly.

Of course, Li Mu also smiled brightly.

Liu Rongdong said: "Haven't we signed more than 2 million OEM contracts from the two companies? We also paid the deposit in advance. If they do not deliver the product to us, they will be charged ten times the liquidated damages. Bar?"

Li Mu nodded and said with a smile: "To be precise, 2.65 million units, of which the company in Shenzhen signed 1.6 million units, and the company in Taiwan signed 1.05 million units."

Liu Rongdong said: "2.65 million units are enough to provide a strong impetus to Taobao, and products of this order of magnitude are enough to bring a great impact on the industry."

Li Mu looked at him and asked with a smile, "Mr. Liu, you laughed so happily just now. It's definitely not because of this. Why don't you tell everyone what you're laughing at?"

Liu Rongdong said: "I see that you are laughing more than I am, why don't you talk first."

Li Mu waved his hand and said, "Tell me about it, I believe in your business sense."

Liu Rongdong said with a smile, "Since President Li holds me so much, then I will take the liberty to say a few words."

After that, Liu Yingdong cleared his throat and said, "I feel happy because we have not only attracted the attention of the entire MP3 player industry, but have even made them fearful, which also proves that our influence has now become Very powerful, they simply want to contain us through production capacity, but if they know that we still have more than 2 million units shipped this year, I am afraid they will be nervous and can't sleep, and they will also realize that, They don't have any way to curb our development, they can only do their best to cut costs and lower their prices."

Having said this, Liu Yingdong paused deliberately, looked at everyone with a smile on his face, and said, "Our Mango cost price is basically the same as other brands, but we win in product design and sales channels. If we personally This proves the sales capability of Taobao, an online channel. In order to save costs and increase sales, these brands will definitely choose Taobao as their new channel. I believe it will not be long before half of the national MP3 sales will be concentrated on Taobao. online."

After Liu Yingdong finished speaking, he looked at Li Mu, Li Mu smiled slightly and took the lead in applauding: "Mr. Liu is very good, why do we want to do Mango, and why do we sell Mango-ME for no profit, the reason is not MP3 players There is much room for development in the market, but the demand for electronic products of the people is constantly rising. The market space for PC complete machines, Zanji accessories, notebook computers, MP3, digital cameras and other products will continue to increase, and the cost of traditional sales channels is too high. High, but the cost of online sales is much lower. The lower the cost, the lower the price. When people feel that the same thing is much cheaper online than in stores, they will naturally tend to buy online. ."

"For manufacturers, online sales channels do not require them to distribute profits to dealers, nor do they need to build stores, run the market, and become channels. They only need to open an official flagship store on Taobao.com to sell their products nationwide; For those ordinary sellers, if he has an offline store, his goods can only be digested locally, but if he adds an online store, he can sell the products all over the country without adding any cost. Why not do it? If he There is no offline store, but if he has a certain source of goods, it is more suitable. He does not need to spend a penny to invest in the storefront. He only needs to register a seller account on Taobao.com, and then he can open a nationwide store on Taobao. Online shop, why not do it?"

"For us, Mango-ME does not make money, but it can cultivate users' habit of online shopping, let users know about online shopping, understand online shopping, and use online shopping. As long as users take this step, it is equivalent to providing our Taobao.com In order to get the best development impetus, some students may say that our Mango-ME is not enough, so many users who pay attention to booking, maybe only 1% of people can buy Mango-ME in the end, but this is not what we need to care about We did not plan to sell Mango-ME to all users. Our goal is to make all potential users pay attention to Mango-ME, and then pay attention to Taobao. As long as they start paying attention to Taobao, we have succeeded! "

After saying this, Li Mu paused and said: "I received a call from Mango's front-end business just now, and the two companies that contracted Mango to us were isolated by other MP3 brands. These brands threatened them if they didn't stop talking to us. All other brands that cooperate with them will stop cooperating with them, but fortunately we have made a plan in advance. Even if these two companies offend all MP3 brands, they will never offend us, because they can’t afford to pay. , now those MP3 brands are so stupid that they use this method to force them to stand in line. Once they cancel the contract and release their production capacity, we will take all the amount released! Every time a Mango-ME is sold from Taobao, it is Taobao. The cornerstone of the development of the Internet!"

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