this man is not calm

Chapter 362 Set it up

It took a long time to make this music player, and it is the MP3 that Jin Shang has been waiting for for a long time.

The technological gloss is just superficial. The real core technology inside is the embedded DSP chip (digital signal processor). Its advantages and disadvantages are so obvious compared with general chips.

Being used in MP3 player manufacturing is only one of its main functions. Even though it has disadvantages such as high cost and relatively high power consumption, with the advantages of large-scale integration, excellent stability, programmability, embeddability, and convenient interface, coupled with Jinxi Culture's complete USB-related patents, it is currently one of the company's best breakthrough directions.

In the opinion of Jin Shang, a semi-amateur singer who is more professional than many professional musicians, the sound quality it provides is just good enough for listening. But to a large number of amateur fans, it is already a very good portable player.

The prototype in my hand can store about 3 songs in MP format. It is equipped with a USB interface and related data cable, a simple charger, and can be held in one hand. It is three-quarters lighter than the ultra-light CD player currently produced by Planet Intelligence.

Theoretically, it can work continuously for ten hours when on battery, which is not much better than the low-power Walkman, but it still has a slight advantage.

The disadvantage is that the sound quality is slightly poor, which is extremely difficult to improve in a short period of time. We can only work hard in other aspects to make up for it.

After trying for four or five minutes, Jin Shang put down the machine with a gloomy face and muttered to himself:

“For trendy consumer goods, we don’t need high quality, as long as they are fashionable and exciting.”

Liu Yanqing, who led the product development, asked a little nervously:

"Mr. Jin means... it's okay?"

"It's okay. Under the current conditions, we can't ask for too much."

With a sigh, Jin Shang asked naturally,
"You have done a great job just by piling up materials. Have you estimated the cost price? How much is it?"

"About three thousand five..."

"How many?"

Upon hearing this, Jin Shang couldn't help but raise his voice.

The development of consumer electronic products must follow the trend of the times. If you are late, you will not be able to catch up; if you are too early, the prices will be shockingly expensive.

The same chip may cost only half as much next year as it does this year, so it is not uncommon to see a drop in price within a year or two.

The DSP chip is a processor with a wide range of uses in multiple fields. The latest models on the market are very expensive. Several years after the millennium in the past life, China was still unable to produce products with a certain degree of competitiveness, and even a far-reaching counterfeiting scandal broke out.

The situation in this life is slightly better. The chips for basic applications are barely sufficient, but they are not very competitive in the field of top-level processors.

Even so, in early 3, when the technical theory was relatively mature, it still cost more than yuan to make an MP, which was simply outrageous.

It's more expensive than the basic model of Mercury 2 mobile phone. Only a fool would buy such an expensive and low-quality thing.

Liu Yanqing responded somewhat nervously:
"This does not include the cost of headphones. The equipment cost 3,500 yuan, and the peripherals and headphones cost nearly 900 yuan. In order to ensure the audition effect, I chose a relatively good one. As for why it is so expensive, it is purely hand-made, and there is nothing I can do about it. If it is mass-produced, it should be able to be reduced by half. Within three years, the cost will be reduced to one-fifth, and within five years, it may be one-tenth."

"More than 1,700 yuan is still very expensive. This is just the cost. If we put it on the market, it will probably cost more than 2,000 yuan. At this price, the risk is too great."

Yin Feiyang interrupted without losing any time and said:

"How about strengthening publicity and linking it with the fashion trends of young people? Compared with traditional walkmans, MP3 players still have great advantages. At the same price, they are more cost-effective."

"You guys... have made a mistake."

Jin Shang shook his head and rejected his subordinate's opinion, and explained,
"According to this promotion model, it is bound to go the luxury route and become a 'pendant' for a relatively small number of wealthy and idle urban youth. But this road is very difficult. Upgrading product positioning is not just about increasing prices and improving cost performance. This is often a misunderstanding of many marketers, which leads to incorrect product positioning and loss of market favor."

After a pause, Jin Shang spread his hands:
"For example, I am about to turn 20 years old. My family is wealthy and I have everything I need. I can buy anything I want. What do you think my consumption concept is?"

Several subordinates looked at each other, and it was Liu Yanqing who responded:
"Frugal and cost-effective? We know that Mr. Jin is rich, but he rarely shows it. He hardly flaunts his wealth and is very low-key."

"No, no, no, you are wrong. High-end, classy, ​​low-key, luxurious and meaningful? These are all outsiders' perceptions. I have basically never thought about this aspect. If you have to give a definition, it is 'price-insensitive consumers'. The vast majority of ordinary people are 'price-sensitive consumers'."

"this?"

These two coined words may make people confused, but if you think about them carefully, they seem to make some sense.

If young people in general are not sensitive to MP3 players priced below yuan, Jin Shang feels nothing real about those priced below yuan. This range will change with the wealth one possesses.

Seeing that the three capable employees were somewhat confused, Jin Shang continued to explain:
"Many products, when moving towards high value-added luxury goods, that is, when building brand value, mistakenly believe that by improving cost-effectiveness or raising prices to make consumers feel proud, they can win the favor of 'price-insensitive consumers' like me. This is too naive."

Raising a finger, Jin Shang spoke eloquently.

"I don't flaunt my wealth, I'm low-key, I don't wear gold and silver, and I don't wear branded clothes, because I don't need these things to decorate my appearance. What I buy is not only the use value of the product itself, but also the psychological satisfaction it gives me, that is, emotional value. Do you think it is necessary for me to show off my wealth and prominent family background to strangers? In daily work, everyone is in a superior-subordinate relationship, so I don't need to rely on external things to show my authority; in daily family life, there are relatives and friends, so there is no need for luxury goods. As long as it is within the 'insensitive' range that I recognize, I don't care about the price at all. As long as I feel comfortable, there is no difference between clothes from a roadside stall worth a few dollars and branded clothes worth tens of thousands of yuan. As for why it turns out that most of the time I wear inconspicuous branded clothes that cost thousands or tens of thousands of yuan, it is because they happen to be in the 'insensitive' price range, echo my aesthetics, are more comfortable, and I pay for it and get satisfaction."

In terms of cost-effectiveness, the use value of a brand-name product may have doubled, and the actual price may have increased ten or a hundred times. Ordinary people will not pay for this difference, but the rich don't care.

After explaining intermittently for a while, Yin Feiyang, who was younger and faster, seemed to have realized something:

"Mr. Jin, what you mean is that the main target customers of MP3 players are not the rich kids who have too much money to spend, but the young people who have a little money and are willing to spend it and show the new youth style?"

"That's right! MP3 players are definitely not luxury goods. Rich kids have money, but they are not stupid. Don't think that anything can be accepted. We need to focus on those who pursue fashion, have a little money, or whose parents are relatively well-off. Around 3 yuan is just stuck in a very awkward range where you can buy it or not. There are definitely some prodigals who buy it blindly, but they are not many. Fashionable young people who are willing to support it are reluctant to spend so much money on an MP player that has not been tested in the market."

Two thousand yuan for a little thing the size of a palm is still too expensive nowadays.

Liu Yanqing stroked his slightly stubbled chin and nodded slightly.
"Indeed, if it's less than one thousand yuan, it might be acceptable. But a price in the four figures... is indeed too high."

Reducing configuration and cutting costs are the general trend. Jinxi Culture has worked hard to design an MP3 player, but it is not for the very few rich and powerful people who do not value money.

This thing is not just a portable music player, it is also closely related to music of the day and night, digital albums, music rankings, personal uploads, circle social networking, etc.

The increasingly popular SP (wireless value-added services) also needs the boost of MP3 digital music. This thing is not only related to mobile phone newspapers, weather forecasts, ringtones, MMS, etc. The company's increasingly large music copyright library also needs corresponding channels to realize its value.

The MP3 player is a magical weapon that has completely disrupted the traditional pop music circle.

"We had originally hoped to release it before the end of the year, but it's almost Spring Festival and we haven't finalized it yet, and we can't even count on it to be released during the Spring Festival."

Disappointment is certain, but to create an MP3 music player from scratch and make it look presentable, Liu Yanqing, Yang Qi and others must have put in a lot of effort and thought.

"I'll make some more changes and try to get it on the market before the Dragon Boat Festival."

Gritting his teeth, Liu Yanqing promised,

"There will be no mistakes this time."

The delivery has been delayed twice. Product design is not something that can be achieved overnight, and having strong technical skills does not guarantee a product that will be recognized by the market.

The few of them discussed for a while and finalized many details before ending the meeting.

Half an hour later, when I returned to the general manager's office, Wei Shuangping and Qi Zhaoyun were discussing something.

"Awaited!"

The two men stood up to respond. The assistant came in to pour tea and then went out, closing the door behind him.

The three of them sat on stools in front of a small table, calmly discussing the recent setbacks in financing negotiations at Jinxi Mall.

Wei Shuangping is very capable and Qi Zhaoyun is experienced. After discussing for a while, they reported the current situation to Jin Shang.

After a long while, Jin Shang, who had almost grasped the general idea, asked:

"We can't give what powerful investors want, and we don't like those without strength. Is that what you mean?"

Jin Shang had already noticed something from the correspondence.

Since finalizing its first round of financing in the second half of the previous year, Jinxi Mall has come into contact with many powerful business entities. However, as the e-commerce platform has grown, small and medium-sized investors can no longer meet the requirements of partners.

Tens of millions or hundreds of millions of dollars in financing are of no use at all. With the current size of Jinxi Mall, it requires tens of billions or even hundreds of billions of funds, so its valuation will naturally rise.

To the outside world, Jinxi Mall has announced a valuation of 12 billion yuan, which should be a bit high.

Some people in the market agree that it is possible to talk, and even a higher price is not beyond negotiation.

However, commercial entities, industrial capital or strategic investors with such strength would not take out billions just to take advantage of the situation, cash out or sell on the stock market. Instead, they must have a certain degree of initiative and are not pure venture capital or financial investors.

The stronger the strength, the bigger the appetite.

Things like board seats, financial supervision, designated accounting firms, dispatched senior executives, tug-of-war, bet agreements, ratchet clauses, exit commitments, etc. are not uncommon.

If the strategic investment of Ice River Trade led by my second uncle Zhang Hua was to control a sales channel, then the jackals and tigers in the capital market not only wanted to eat meat, but also wanted to swallow up Jinxi Mall in one gulp.

"Our e-commerce platform has expanded too fast. Before many small and medium-sized investors could react, it had already grown into a giant with great influence. Although its driving effect is not as good as that of super-large chain stores, its transaction volume is already considerable. This is also one of the important reasons for the backlash from offline entities. The model of shipping in large quantities at a price that guarantees cost-effectiveness and a small profit, relying on door-to-door installation, parts sales and after-sales service as the main means of profit, is bound to defeat offline stores with opaque prices."

Wei Shuangping calmly analyzed,
"But then came the problem. The debate over the valuation method was secondary. The value of Jinxi Mall became more and more prominent, and naturally there were many people who were jealous. Given the strength of the parent company and Mr. Jin's background, most of the industrial capital could not control it, so naturally, their enthusiasm declined."

If you have money, it doesn't matter where you invest it.
There are many industries that can make money.

Yes, capital is a monster and is profit-oriented. However, profit is not just the cash flow brought by price difference or dividends, but also the inexplicable but real control power.

Capital cannot be said to have a clear human nature, but capitalists are definitely living people.

"In other words, I... and the company I founded are too powerful. Those with bigger appetites feel that their chances of winning are slim, and they can't kick me out and take over the entire platform, so they simply don't make a move. They would rather invest in similar competing products than Jinxi Mall, which offers a significantly better price. Those with less strength want to 'get on board', but they can't afford to pay too much. This... is a troublesome matter..."

"There are several medium-sized funds that want to form a partnership to acquire shares, but introducing too many shareholders is inconsistent with the overall strategic direction."

Not everyone can be an investor in Jinxi Mall. If a group is formed to raise funds, it is better to implement an employee stock ownership plan, disguised fixed-financing and self-financing, and then sign a proxy agreement, which is much more reliable than introducing inexplicable funds.

"If you're too eager to get the ball rolling, it's not a good deal. If it's hard to negotiate, just put it aside for now. Good things don't have to worry about no one recognizing their value, and they don't have to worry about not being able to sell them. It's not difficult to find a strategic investor, but the conditions are harsh and I don't want to cause any trouble."

If there really is a need to open a door, Huang Zhengkuo must be willing to do so, and Sun Daqi's Ministry of Foreign Trade and Economic Cooperation will not miss the opportunity. Hao Qilian's restructured postal service has also hinted that cooperation can be strengthened.

Given the reputation of Jinxi Mall, sovereign funds might even be willing to invest.

There are still some options, but the company is not strong enough at the moment. It will take further steps before it can take the initiative.

"Let's do a good job on the year-end promotion first. For now... the parent company doesn't need to make any big moves. Just develop step by step. If you need money, you can borrow from sister companies..."

Money is no longer the most important hurdle; cooperative resources are the key.

(End of this chapter)