Cherreads

Chapter 332 - Chapter 332: Xiaomi's Three Major Strategies, Wang Yi's Cross-Industry Bold Move!

"Going on sale in India next month?"

Old Li was startled; the schedule was too tight.

Opening channels with distributors in India takes time.

Promotional campaigns also take time.

Exporting Xiaomi phones from China to India takes even more time.

"What, is there a problem?"

Leibus's expression turned cold.

Without Xingyi Technology, Xiaomi could still develop slowly; not to mention next month, even the month after next would be fine.

But with Xingyi Technology, Xiaomi really couldn't afford to waste time; their speed in launching new phones was too damn fast!

The xphone 1 was selling hot, and then the xphone 1pro arrived, practically leaving no room to breathe!

If they kept dragging this out, if Xingyi phones even captured the Indian market, it would truly be over.

Seeing Chairman Lei's unquestionable attitude, Old Li's expression sharpened, and he immediately said:

"No problem! Chairman Lei, I'll fly to India tonight to advance the follow-up negotiations!"

"Yes, we'll fly to India tonight!"

Other high-level executives also spoke up one after another.

Leibus nodded:

"Tonight is too rushed, let's make it tomorrow. Bring the marketing department, channel department, legal department, etc., and go together. Finalize immediately once negotiated, and open up all channels; arrange shipment as soon as possible!"

"Yes!"

Everyone nodded in agreement.

Everyone knew that Chairman Lei had been provoked by Xingyi Technology.

He immediately decided: All in India, and stock shelves next month!

However, one vice president couldn't help but ask:

"Chairman Lei, what model should we adopt for our marketing strategy in India? Is it the Xingyi Technology model, directly placing large orders to drive down costs and selling from stock? Or our previous Xiaomi approach of first creating hype with hunger marketing, pre-selling, and then mass shipping when subsequent costs are lower?"

Leibus took a deep breath, didn't answer directly, but instead asked:

"Old Li, in your opinion, what should be done?"

Old Li explained in detail:

"The Xingyi model has the potential to ship quickly and profit quickly, just like Xingyi phones. But the risk is very high! Like the xphone 1, their first batch of components was for five million units. If we do the same, once there's unsold inventory, it would be irrecoverable."

Leibus nodded:

"You're right, this model yields high returns but with even greater risks! Unless it's like Xingyi Technology's xphone 1, which has full confidence it will be a huge hit. But for our Xiaomi 1T... I don't have that kind of absolute certainty it will explode in sales!"

Old Li breathed a sigh of relief; fortunately, Leibus hadn't been overly stimulated by Xingyi Technology to be too aggressive:

"Chairman, then we will continue with hunger marketing in India! I've calculated that for this batch of 500,000 phones, over 50,000 units have been sold domestically. We'll keep 100,000 units for continued sales, and the remaining 350,000 units can all be put up for sale in India."

"This batch, because components were bought early, has relatively higher costs. The comprehensive cost is around 1300, selling at 1799 can earn 500."

"However, once this batch is completely sold out, the price of the next batch of components will decrease. By May, costs can also drop to around 1000. Then selling at 1799, we can earn around 800!"

"We'll use hunger marketing in March and April, slowly shipping out 350,000 units, creating hype, and letting Indians scramble to buy. When costs are low, we'll make large-scale shipments in May, June, and July, earning 800 per unit, and making huge profits!"

"Excellent, let's do it this way!"

Leibus was in a great mood, as if he saw Xiaomi's unlimited future of making huge profits in India:

"We want to be India's Xingyi Technology, replicating the myth of Xingyi phones in India!"

"Yes, it will definitely succeed!"

Old Li said confidently, then asked:

"But should Xiaomi 2nd generation start R&D? Xiaomi 1st generation, strictly speaking, was released last August. Initial costs were high, and we didn't sell much with hunger marketing. Later, costs became lower, but it was critically hit by Xingyi xphone 1, and we still didn't sell much, but it's still last year's phone. It is precisely because of this that the R&D for Xiaomi 2nd generation has been suspended. Now..."

Leibus sighed:

"The R&D for Xiaomi 2nd generation should indeed begin, but it's not a big problem. India is backward and poor; Xiaomi 1st generation is enough. If we develop the 2nd generation, costs will be high, and the selling price will also be high, so sales are estimated not to be good. After all, incomes in India are relatively low. It's better to lower the price a bit and continue selling last year's Xiaomi 1st generation."

Old Li's eyes lit up:

"Chairman Lei is brilliant. I've done research, and what India needs most is not smartphones in the 2000 price range, but phones below 1500. Let's first sell at 1799 for a few months, then drop to 1599, or even 1499. Even without releasing Xiaomi 2, it can sell better."

"Right, just do it this way. As for Xingyi phones? Although the configuration is better, the price is also higher. Indian consumers' purchasing power is limited; they can't afford xphone 1, let alone xphone 1pro. The entire Indian market is still ours, Xiaomi's! Once the Indian market stabilizes and we make money, then we'll start R&D for Xiaomi 2nd generation."

After some discussion, Leibus and a group of high-level executives confirmed three major strategies: the All-in-India strategy, the hunger marketing strategy, and the old model low-price volume strategy!

Barcelona.

After the press conference, Wang Yi had a meal with Old Huang.

"Chairman Wang, congratulations, congratulations, phones and tablets are all selling big!"

Old Huang was extremely excited.

The previous xphone 1's off-the-charts sales made Qualcomm sell tens of millions more dual-core processors, making Old Huang so jealous he couldn't sleep for several nights!

Now, Nvidia's quad-core processors could finally get on the express train of xphone 1pro and Xingyi Tablet X1pro, and also ship furiously.

How could Old Huang not be excited?

Wang Yi smiled slightly:

"Our cooperation is a win-win, but for the supply of Nvidia quad-core processors, you must provide enough; you can't drop the ball at a critical moment!"

"Don't worry, Chairman Wang, I'll immediately cut HTC's orders by half and transfer all of them to your Xingyi Technology!"

"!!!"

Wang Yi's expression was a bit complicated:

"Isn't this not so good?"

Old Huang, however, didn't care at all:

"There's nothing bad about it. After watching the xphone 1pro press conference, I believe HTC One X is finished; estimated sales will be cut in half. I cut their orders by half, which is enough for them. It's even thinking for them!"

"..."

Wang Yi didn't know what to say.

When HTC was selling well before, Old Huang pleaded with HTC to use Nvidia chips.

Now HTC hadn't even released yet and had been critically hit by xphone 1pro, so Old Huang decisively cut orders and transferred them to Xingyi Technology.

All the hustle and bustle in the world is for profit.

One can only say that businessmen are just this realistic and cruel.

But Wang Yi wouldn't say much either; business competition is like this.

If the roles were reversed, and HTC's new phone was a huge hit, and xphone 1pro was critically hit, then Old Huang would also cut xphone 1pro's chip supply and transfer it to HTC.

One can only say that strength determines everything; there's no morality to speak of!

Wang Yi and Old Huang drank and chatted happily, but HTC headquarters was gloomy and desolate.

Until evening, a room full of high-level executives gathered in the hotel.

"Chairman, should we proceed with our new phone press conference tomorrow?"

Someone couldn't help but ask.

Before Wang Hong could speak, someone impatiently said:

"Proceed with what? The world's first quad-core phone has been snatched by Xingyi Technology; what the heck are we going to release?"

"Moreover, compared to Xingyi Technology's xphone 1pro, our HTC One X is completely behind, completely dominated."

"With xphone 1pro as a shining example, our HTC One X being released one day later is a joke; it's just serving as a foil for Xingyi Technology!"

"It highlights xphone 1pro as more excellent, more powerful, and highlights our HTC One X as more backward, more rubbish."

"To put it bluntly, releasing tomorrow is just letting HTC One X be a stepping stone for xphone 1pro, making users even more determined to buy xphone 1pro! Are we out of our minds for this kind of self-damaging and benefitting-others behavior?"

"Exactly, I also oppose continuing the release tomorrow; better to postpone it for half a month. It's too close; it's just serving as a foil for xphone 1pro."

"But invitations have already been sent out, the venue is set, and the news has also been officially announced: tomorrow HTC is releasing the world's first quad-core flagship! If we cancel the press conference at this time, it would be difficult to explain."

"That's right, the media are all ready to come, and fan tickets have been bought. Is it appropriate for us to stand them up at this time?"

"Even if it's not appropriate, we still have to cancel tomorrow's press conference, otherwise our HTC One X will be a joke!"

"Cannot cancel, this isn't a matter of appropriateness; it also concerns HTC's brand image. Even if we cancel the press conference and postpone it for half a month, people won't talk about us? We won't be a foil for xphone 1pro anymore?"

"No, they will still talk, and they'll say even worse things!"

"They'll say that our dignified HTC was afraid of Xingyi Technology, which is why we canceled the press conference!"

"They'll say HTC One X is rubbish, completely inferior to xphone 1pro, that's why we didn't dare to confront it head-on and had to delay the release."

"In this way, we're still a joke, and an even bigger joke!"

"This..."

For a moment, everyone fell silent.

Thinking carefully, that's how it is.

HTC was now in a dilemma.

If they didn't cancel the press conference, the new flagship HTC One X would be completely dominated and crushed by Xingyi Technology's xphone 1pro, serving as a foil for them.

If they canceled the press conference, it would also become a joke, seen as being scared and not daring to confront xphone 1pro head-on.

No matter what, it was difficult!

In a dilemma.

Finally, Chairman Wang Hong sighed and said in a deep voice:

"The press conference will proceed, but we won't just sit idly by. Although everything is inferior to xphone 1pro, we are 500 yuan cheaper, and this is our advantage!"

"And xphone 1pro can only be sold in China, while our HTC One X can be sold globally. Since we can't beat xphone 1pro in China, then let's give the Chinese market to xphone 1pro, and we'll go charge into the overseas market!"

"Chairman is wise!"

Everyone spoke up one after another:

"Overseas consumers who want to experience quad-core phones, who want to buy xphone 1pro but can't, can only buy our HTC One X!"

"That's right, xphone 1pro is not listed overseas, they have no choice."

"Then let's go all out and continue the release tomorrow! Even if the product loses, our momentum cannot be lost!"

Wang Hong said decisively:

"And we also need to speed up production. xphone 1pro will be launched mid-to-late March, so we must launch by April at the latest. All departments must push forward quickly, absolutely cannot drop the ball."

"Yes!"

Everyone responded one after another, also understanding that the emergence of xphone 1pro added many twists and turns to the future of HTC One X.

However, xphone 1pro's inability to launch globally also gave HTC One X hope and opportunity.

After everyone left, Wang Hong, however, had a complex expression:

"Tomorrow's hurdle will be tough to get through, but we have to get through it."

"It's fine, no matter how bad, it will still be better than Apple. At worst, our HTC One X will also bash the iPhone 4s!"

"HTC One X can't beat xphone 1pro, but it might be able to go head-to-head with the iPhone 4s, right?"

Wang Hong's eyes lit up; she found a breakthrough point.

This was an era of 'who's worse'; as long as there was something worse, then it didn't matter, it didn't matter at all.

HTC One X could still fight against iPhone 4s; just critically hit iPhone 4s's shortcomings!

The press conference successfully concluded, and Wang Yi, however, was rarely relaxed.

After dinner, he originally wanted to walk around with Song Sining, but seeing Song Sining's attire today, both pure and alluring,

Wang Yi decisively headed straight for the hotel's presidential suite.

Another round of intimacy.

Regarding this, Song Sining was also helpless; she could only be both painful and happy.

An hour later, the "smoke cleared and rain stopped."

The two snuggled together, looking at the night view outside the window, chatting about everything under the sun.

At this time, Song Sining no longer had the demeanor of a strong career woman she had at work; instead, she was much more gentle:

"Wang Yi, do you know, the houses we bought were frozen last year, and now they are starting to relocate. Those to the north are all in talks, and it will be our turn soon!"

"That's good news. That area is too chaotic now; they are all small houses in the town with no elevators. All will be demolished, and the urban built area of the entire region will be significantly upgraded."

Five years later, it would be Jizhou's financial center!

"Yes, it's good news. Those two who sold to us probably regret it so much their guts have turned green, ha ha ha. They missed out on this wave of immense wealth for nothing."

Wang Yi smiled:

"Serves them right. Who told them to rush to run away abroad? Income abroad is high, and consumption is also high. If they earn money abroad and spend it domestically, that would be very happy. But they earn money domestically and spend it abroad—do they have some kind of serious problem?"

"That's right, these people always feel that the moon is rounder abroad, and now it's useless to regret."

Wang Yi smiled slightly:

"It's not just about regret for them; they've all been scammed by their children. It's hard to say if they are even still alive now."

"That serious?"

Song Sining was startled.

"Staying in China for too long, always feeling that the whole world is as safe as China, this is the biggest illusion. For example, the Empire, 365 days a year, their number of gunfights must be over 400. Great Meilijian, gunfights every day."

Song Sining's expression was complex: "..."

Then she hugged Wang Yi tightly:

"In the future, let's go to the Empire less; it's not safe. What if..."

Wang Yi nodded:

"It's not just life safety, but also political safety. In short, their methods have no bottom line. Book the tickets; we'll go back tomorrow. As for the upcoming Global Mobile Communications Conference, there's nothing more to pay attention to."

"Okay!"

Wang Yi had already made up his mind: he wouldn't go abroad anymore!

If he were targeted by the Empire and detained, that would be big trouble.

China was still better, abundant in resources, with long-term stability.

"Oh, right, those three small office buildings of our Meiyou Building are also frozen and soon to be demolished."

Song Sining remembered this matter:

"I'm just afraid our Meiyou Science Park hasn't been built yet, and the Meiyou Building will be demolished. How to work then will be a big problem."

Wang Yi nodded:

"This is a problem. How is the Meiyou Science Park progressing?"

Wang Yi had been busy with Xingyi Technology's matters and hadn't paid attention to the progress of Meiyou Science Park.

Song Sining explained in detail:

"Starting last year, Meiyou Science Park's Phase 1 and Phase 2 projects progressed simultaneously. Coupled with our strong capital and local support, overall progress is very fast."

"Especially the row of office buildings on the southernmost side of Phase 2, with a total height of 27 stories, are progressing rapidly and are almost topped out. With subsequent construction and decoration, it's expected to be completed by mid-year. After letting the smell dissipate, it can be put into use as early as October."

"The other two rows of Phase 2 are all large high-rise office buildings of thirty to forty stories. Phase 1 consists of ultra-high-rise office buildings from forty to seventy stories, which are slower to build. Completion will be in the second half of the year, or even next year."

The office buildings in Meiyou Science Park decrease successively in height from north to south, ensuring the front rows are not blocked and have better lighting.

Therefore, the further north, the slower they are to build.

Wang Yi had a plan:

"Then let's first build, decorate, and ventilate the frontmost buildings of Phase 2, and move in when it gets cooler in October. Materials must be environmentally friendly, regardless of cost."

"Mhm."

"As for the demolition issue of Meiyou Building, later I'll communicate with Director Hong and try to have our office buildings demolished last, delaying until October if possible. This way we won't have to bother changing office locations midway."

"Okay, you'll have to handle this; your influence works well."

"Haha, what influence or not, it's just mutual benefit. Once Meiyou Technology is delayed, the tax revenue for Jizhou will also decrease. I believe Director Hong will help us coordinate it well."

Wang Yi said with a smile that common interests are the most secure:

"Half a year later, Meiyou Science Park will start operating while still under construction. It can also be considered a brand new start. By then, our Meiyou will also have its own science park!"

Song Sining became interested:

"Yes indeed, another milestone in Meiyou's development history. Next, it will be the 518-meter Meiyou Skyscraper, right?"

Wang Yi nodded:

"Right, but no rush for the skyscraper, let's wait two years. Currently, Xingyi Technology is still in a phase of rapid development; funds must be used in the most appropriate places! Let's first build Meiyou Industrial Park Phase 1, Phase 2, and Phase 3."

"Does Phase 3 also need to be built as soon as possible?"

Song Sining was a bit surprised.

Originally, the plan was to build Phase 1 and 2 first, and Phase 3 could be left until next year.

Wang Yi nodded:

"Let's start construction as soon as possible. Phase 3 has the fewest floors; strive to put it into use in the second half of next year. Xingyi Technology is developing too fast, and business is continuously increasing; one Xingyi Science Park is simply not enough. Even if Xingyi Science Park Phase 2 is completed, it's not enough.

In the future, besides core businesses and high-end R&D centers staying in Didu, other non-core businesses and departments will be diverted to Jizhou's Meiyou Science Park and other cities!"

Like Meiyou Technology, keeping it in Jizhou initially was the most wise decision.

With so many employees, if all were placed in Didu, the cost would be an astronomical figure, at least six or seven times that of Jizhou!

And for the current Xingyi Technology, high-end business units like chip R&D, phone R&D, and tablet R&D can be placed in Didu.

But non-high-end and personnel-intensive departments like testing, marketing, customer service, logistics, and channels can largely be allocated to Jizhou's Meiyou Science Park.

By then, the ultra-high-rise office building cluster of Meiyou Science Park's Phase 1 will be directly designated as Xingyi Technology Jizhou Branch!

And for the gaming department and animation department, with more and more people, there's no need for all of them to stay in Didu.

A Xingyi Gaming Branch and Xingyi Animation Branch can largely be established in Jizhou.

In this way, high-end games and animations will be done in Didu.

Mid-to-low-end casual games and animations will be done by the Jizhou branch.

And for the smart home business, which will involve various products and departments later, there's no need to put all of them in Didu.

They can largely be directly placed in Daocheng, adjacent to Daocheng's smart home factory!

Achieving integrated R&D-production-sales will result in higher efficiency.

And for next year's budget phone R&D department, Wang Yi also doesn't plan to put it in Didu; instead, all of them will be placed in Jizhou.

Including the upstream and downstream industry chains for budget phones, all placed in Jizhou, relying on Jizhou's lower costs, can instead achieve greater development.

As for Didu?

Just rent and labor costs alone can crush most of the upstream and downstream industry chains.

While Jizhou's low costs are instead more friendly to them.

In this way, Meiyou Science Park's Phase 3 project must start construction as soon as possible, and all will be put into use in the second half of next year.

On Daocheng's side, they also need to invest in building a Xingyi Technology branch, and land in Daocheng's core area can also be hoarded.

After all, Xingyi Technology has real estate qualifications and can largely proceed with grand gestures.

Last year, Wang Yi's career just started, and he still relied on demolition to make money.

Now that Wang Yi's business has grown big, he no longer cares about the small amount of money from demolition.

Instead, he wants to acquire and hoard land, catching the years 2016-2018, the last wave of the real estate boom, to make a huge profit!

The simplest example: in 2012, the land price in Jizhou's Dadongjiao was over 3000 per square meter, and housing prices were 6000.

As long as Wang Yi acquires the land, holds onto it until construction starts in 2015, and sells in 2017-2018, one square meter can sell for 30,000!

Profit is incalculable!

Daocheng, as a coastal city, has an even more terrifying premium!

It is entirely feasible to operate.

If possible, Wang Yi even wants to acquire two plots of land in Didu!

After all, if Wang Yi doesn't earn this portion of money, others will.

If Wang Yi earns it, at the very least, it will be used for R&D, developing semiconductors, big data, cloud computing...

These plots of land will also be fully developed, won't be unfinished projects, and will ensure quality and quantity.

But if others earn it, then who knows where it will go; it might even become an unfinished project and cause a financial crisis!

Thinking of this, Wang Yi looked at Song Sining:

"Sining, our real estate qualifications can also be put into use. In Jizhou, we acquired 300 mu of commercial land to build Meiyou Science Park, and Meiyou Skyscraper, as well as 1,000 mu of residential land currently being demolished, to be built into high-end residential communities later. Similarly, we can also acquire land in Daocheng!"

Song Sining's eyes lit up:

"Chairman, are you saying that next, in Daocheng, we also need to push hard in real estate?"

"That's right, build Xingyi Technology Daocheng R&D Center, acquire the surrounding land, and create commercial areas like shopping centers - industrial areas like Xingyi Science Park - and Xingyi Real Estate residential areas!"

Wang Yi said with a smile:

"Our smart TV factory and smart home factory are both invested in Daocheng, which is considered close cooperation with Daocheng. You can hint our investment plans to Daocheng; just tell them if they give us a piece of land, we'll give them a city!"

Other developers acquiring land most likely can only build residential buildings with a few small shops, no industry, no commercial complexes.

But Xingyi Real Estate is different; it can completely build an integrated new city with industry-commerce-residence!

The simplest example: Xingyi Technology branch, R&D center, and industrial belt provide high-end employment opportunities.

Then build commercial complexes and introduce commercial giants.

Build supporting schools and introduce educational groups.

Coupled with high-end communities built by Xingyi Real Estate, it directly achieves industry-commerce-residence-school, a perfect ecosystem!

It is entirely feasible.

Wang Yi has no need to miss out on the last frenzy of real estate!

(End of Chapter)

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