Major MP3 brands established an anti-Mango alliance, which not only issued a stern warning to the two companies that OEM Mango, but also issued an ultimatum to other OEMs in the industry. The purpose is only one: whoever cooperates with Mango will be everyone's public enemy. , will be boycotted by the entire industry.
All companies that have not cooperated with Mango are secretly rejoicing. At the same time, they have held an emergency meeting internally and requested not to cooperate with any company related to Mango and Yiting. Now the entire MP3 industry is divided into three camps, one is high-end. In the Japanese and Korean import camps, they sell high-end products and brands, so they don’t care too much about price wars; one is the huge domestic MP3 players that rely on cost-effectiveness to steal food from Japanese and Korean companies, and now Mango uses the cost-effectiveness to turn it into rubbish. camp, they account for more than 70% of the entire industry; the last camp is the newly emerged Mango.
The war between the latter two is probably about to break out, so for foundries, it’s time to take sides.
There is no doubt that everyone is just trying to make money, and no one dares to risk the world's disapproval and go against the entire industry. Therefore, Mango has been isolated by the industry before it can be officially launched.
The only two "comrades" left around him are the foundry partners who were tied to him by Li Mu with more than 20 million in cash.
These two foundry companies have continuously received threats and warnings from other partners, requiring them to immediately stop cooperation with Mango, but for them, they have no choice but to do so at this moment.
In order to prevent themselves from becoming the target of public criticism in the entire industry, these two companies have called and faxed back their partners, telling them that they are also helpless now. Each of them has received more than 10 million from Makino Technology, and they will use the money as soon as they get it. I have come to invest in a new production line. If I break the contract, I will have to pay more than 100 million yuan. As a foundry, how much profit can I make in a year? If I really have to pay 100 million yuan for no reason, at least two or three years of net profit will be gone.
After receiving replies from these two companies, major MP3 brands scolded Mango for being shameless while continuing to threaten these 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 If they manufacture products for Mango and help Mango suppress other brands in disguise, then everyone will immediately terminate the cooperation agreement and never have any OEM cooperation with these two companies in the future.
Most OEM contracts are signed once a month or once a quarter. Since the brand owner is Party A, the liability for their breach of contract is also very lightly divided in the contract. At most, a compensation of tens of thousands or hundreds of thousands can be paid immediately. Stop cooperating with OEMs. At this time, in order to scare the monkeys, they must be willing to bear the cost of breach of contract.
The two OEM companies almost went crazy because more than 80% of their production capacity was given to these brands. If they really stopped cooperation, what would they do in the future
However, if Mango does not produce more than one million units in accordance with the contract, the compensation it will face will be even more frightening.
After several evaluations, the two OEM companies unanimously chose to chat with Mango's interface person, vaguely revealing their intention that they might not be able to cooperate due to pressure. As a result, Mango's business interface person simply said: "Specific cooperation. Communicate with me about matters involving legal issues, so don’t communicate with me. Go and communicate with our legal department. Our legal department’s phone number is... "
There is no room for relaxation on Mango's part. In order to completely isolate Mango, other MP3 brands have begun to prepare termination letters to completely terminate the contract with these two companies, causing both companies to instantly fall into despair.
When Makino Technology's front-end business got the news and immediately reported it to Li Mu, Li Mu was having a meeting with Liu Edong's team on Taobao.
After Li Mu heard about these things on the phone, he immediately felt good and told the other party: "Pay close attention to the situation here. If those MP3 companies really terminate the contract with them, you will immediately follow up on behalf of Mango and free them up." Take down all the production capacity, but don’t say this now, wait until they are desperate, and then talk to them.”
The front-end business manager 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 more details.
Li Mu continued: "The current situation is that most MP3 brands have established an alliance specifically for Mango and Yiting.com, and collectively put pressure on all OEMs, requiring these OEMs not to cooperate with us or to We OEM products, and now most of the MP3 OEM companies have stated that they will not cooperate in any form with us."
Hearing these words, some people below looked surprised, while others were quite worried, but Liu Haodong smiled particularly brightly.
Of course, Li Mu also smiled brightly.
Liu Edong said: "Have we not signed OEM contracts for more than two million units from two companies? We have also paid deposits in advance. If they do not deliver products to us, they will be charged ten times the penalty as liquidated damages." Bar?"
Li Mu nodded and said with a smile: "To be precise, it is 2.65 million units, of which the Shenzhen company signed a contract for 1.6 million units and the Taiwan company signed a contract for 1.05 million units."
Liu Edong said: "2.65 million units are enough to provide a strong driving force for Taobao, and products of this order of magnitude are enough to have 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 must not be because of this. Why don't you tell everyone what you are laughing at."
Liu Edong said: "I see that you are smiling much more happily than me. Why don't you say it first?"
Li Mu waved his hand and said, "Just tell me, I trust your business sense."
Liu Edong smiled and said: "Since Mr. Li praises me so much, I will take the liberty to say a few words."
After that, Liu Edong 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 feel afraid. This also proves that our influence has now Very powerful. They just want to contain us through production capacity. But if they know that we still have more than two million units shipped this year, I am afraid they will be too nervous to sleep. They will also realize by then, They have no way to curb our development, they can only do their best to reduce costs and lower their prices."
Having said this, Liu Edong paused deliberately, looked at everyone with a smile, and said: "Our Mango cost and price are basically the same as other brands, but our victory lies in product design and sales channels. If we personally It proves the sales ability of Taobao as an online channel. In order to save costs and increase sales, these brands will definitely choose Taobao as their new channel. I believe that it will not be long before half of the national MP3 sales will be concentrated on Taobao. It’s online.”
After Liu Edong finished speaking, he looked at Li Mu. Li Mu smiled slightly and took the lead in applauding: "Mr. Liu said it very well. Why do we make Mango? And why do we sell Mango-ME without making a penny? The reason is not MP3 players. How much room does the market have for development? However, the demand for electronic products among the people is constantly rising. The market space for complete PCs, machine accessories, laptops, MP3s, digital cameras and other products will continue to increase. The cost of traditional sales channels is too high. High, but the cost of online sales is much lower. When the cost is low, the price will naturally come down. Once people feel that the same thing is much cheaper online than in stores, they will naturally tend to buy it online. .”
“For manufacturers, online sales channels do not require them to distribute profits to dealers, nor do they need to build stores, run markets, or build channels. They only need to open an official flagship store on Taobao to sell goods nationwide; For ordinary sellers, if they have offline stores, their goods can only be digested locally, but if they add an online store, they can sell their products nationwide without any additional cost. Why not? If he There is no offline store, but it would be more suitable if he has a certain supply of goods. He does not need to spend a penny to invest in the store. He only needs to register a seller account on Taobao, and then he can open a nationwide store on Taobao. Online store, why not?”
"For us, although Mango-ME does not make money, it can cultivate users' online shopping habits, 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 with In order to provide the best driving force for development, some students may say that our Mango-ME has insufficient supply. With so many users paying attention to reservations, only 1% of people may be able to buy Mango-ME in the end, but this is not what we need to worry about. The problem is that we were not planning to sell Mango-ME to all users. Our goal was to get all potential users to pay attention to Mango-ME and then to Taobao. As long as they start to pay attention to Taobao, we have succeeded! "
After saying this, Li Mu paused and continued: "I just received a call from Mango's front-end business. The two companies that manufacture Mango for us have been isolated by other MP3 brands. These brands threaten them that if they don't stop talking to us, If they cooperate with each other, all other brands that cooperate with them will stop cooperating with them. Fortunately, we have made plans in advance. Even if these two companies offend all MP3 brands, they will never dare to offend us because they cannot afford to pay. , now those MP3 brands are stupid enough to use this method to force them to take sides. Once they terminate the contract and release their production capacity, we will accept all the orders as much as they release! Every time a Mango-ME is sold from Taobao, it is Taobao The cornerstone for the rapid development of the Internet!”
Second update, please continue asking for monthly votes. Don’t be stingy with your monthly votes! There will be a third update later today!
(End of chapter)