I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 551 407-408: Xiaoling APP New Strategy! (4000 words)
Now, if Hillhouse Capital ranks according to its 2017 performance, it will be ranked 39th in the Fortune Global , ahead of China Ping An Insurance.

This means that Hillhouse Capital already has the strength of a large state-owned enterprise at the ministerial level in China.

You should know that banks with sales ranked in this range are already at the level of the Big Five.

Even the lower-level China Communications Bank does not have that much turnover.

It can even rank around third or fourth among the top five banks.

So now Hillhouse has proposed to launch the Hillhouse chip into the market and obtain some profitable orders to maintain the team's turnover. There is no need to obtain more profits, but just rely on such external orders to support part of the high salaries in the team.

In addition to some well-known central state-owned enterprises, Hillhouse Chip is now launching chips in some fields that Hillhouse Group has not involved.

For example, NB-IoT chips suitable for IoT devices, video surveillance chips launched in the video surveillance field, WIFI chips suitable for various wireless devices, etc.

The most important of these is the video surveillance chip launched in the video surveillance field.

The government is now vigorously promoting the Skynet project.

In the past few years, Hillhouse Derivatives launched camera products, but they were basically small-scale products for residential use.

It was only recently that it was considered to be deeply involved.

But even so, this market is too big, coupled with great local differences and complex stakeholders, there is no need for Hillhouse to get too deeply involved.

Therefore, Hillhouse’s focus now is still on relying on its advantages in chip research and development to provide services to camera companies such as HiVision in order to increase sales.

Since Hillhouse's chips are embedded with the underlying algorithms of some large models, they have their own unique product advantages in camera tracking and analysis. Therefore, they are greatly advantaged by these leading camera companies. Empowered by Hillhouse chips, their product strength improvement speed can be said to be amazing.

More importantly, cameras are large in size and do not require high-end chips, which can be produced by Hillhouse's own chip factory. Naturally, Gao Huaijun will strongly support the export of chips that are not the core business.

"There are many areas that we will not get involved in principle."

"Or for some areas that we are involved in but not in a leading position in, you can boldly propose solutions."

“Things are made up by people!”

"As long as you can develop external projects, you can get a share of the product sales!"

"Go and come up with a plan, discuss it with President Ning, and then report it to me."

After Gao Huaijun nodded, he looked at Ning Yuan and said with a smile.

Li Zongli, who was standing by, showed a hint of excitement in his eyes and nodded in agreement.

Now, Hillhouse Chip’s sales will be under pressure in the next few months, and it will soon face the issue of team choices.

In fact, it’s not going to happen in the next few months, but we have already started making corresponding adjustments to the team now.

First, some projects that were at the bottom of the list were eliminated. Originally, this was supposed to happen every six months, but now it happens once every three months. Basically, the entire Hillhouse chip team has been streamlined by 10%.

The second is to strengthen the adaptation of external projects. However, Hillhouse has not had a corresponding policy for this internally, and Hillhouse is accustomed to taking orders internally for chips, and there is no decent marketing department, so it is also at a loss in this regard.

Gao Huaijun would not let him do anything wrong, after all, Hillhouse Capital was not short of that money a few years ago.

If some partners use Hillhouse's products in low-end products, it will do more harm than good and damage Hillhouse's brand value.

Now that Gao Huaijun can provide policies, Hillhouse Chip may also be able to bear its own expenses.

Moreover, only if there is a proper marketing department and interfaces with some merchants will there be people. Otherwise, it would be impossible for him, the executive president of Hillhouse Chip, to go out and do business every day.

"Now that we have talked about the Hillhouse chip, let's study the Xiaoling APP. I feel that the recent live broadcast preview of the Xiaoling APP that you gave is a bit inappropriate." Gao Huaijun turned and looked at Tong Ling, the head of Hillhouse Culture.

Tong Ling couldn't help but be startled, and then she felt scared again.

Now that Xiaoling APP has been able to develop to its current scale, it is naturally inseparable from the hard work of Tong Ling and his team.

Hillhouse has a policy that is very different from other companies. That is, basically no parachutes will be sent to Hillhouse's middle level. Only expert-level senior managers, like Liang Mengsong, are qualified to work at Hillhouse, and they need Gao Huaijun's signature and approval.

What we are afraid of is that foreign corporate culture will destroy the engineering culture that Hillhouse has worked so hard to establish.

For the sake of blood purity, if you cannot get in as a fresh graduate, you cannot get in as a general low-level employee, and you cannot get in through social recruitment either.

Tong Ling started working at Hillhouse Technology right after graduating from university. When others were not optimistic about Xiaoling APP, she switched from the popular mate group to the team. With her keen vision for the Internet, she rose rapidly in the past two years and became the executive director of Xiaoling APP. Then, she became the executive president of Hillhouse Culture.

It has only been less than five years to get to this point!

This shocked the internal staff of Hillhouse Capital!
Everyone was amazed at Gao Huaijun's boldness in employing people.

And when she was told by such a celebrity that her plan had problems and was being questioned, she naturally felt a lot of pressure.

"Your plan should involve more internal value underlying logic determination."

"According to the set of rules you have set now."

"The higher the sales volume, the greater the traffic support will be."

"If I were a merchant, would I wonder if there is no minimum price, but only a lower price?"

“As long as my price is low enough, my product will sell well enough, and I can get enough traffic and positive feedback.”

Gao Huaijun said in a cold voice.

Now it is because of the self-commitment that Hillhouse has released the powerful weapon Xiaoling Live.

He also knows that in the future, the establishment of the live broadcast platform will be a phenomenal model.

In fact, the logic that Tong Ling is thinking of now is very similar to that of Tik Tok in later generations.

When we buy Yiwu's cheap small commodities online and sell them all over the country, it seems that the efficiency of commodity circulation has improved, but in fact, the physical industrial chain has been seriously violated.

The whole country has become a unified hypermarket, and it is very easy for consumers to compare prices, which results in only the lowest-priced products being competitive.

From Taobao to Pinxixi, the lowest price wins. This is a very rogue business logic. In order to create lower prices, many merchants imitate and make inferior products, which seriously disrupts the market's price system. This is the bad money driving out the good money, and it is also forcing good people to do prostitution. It forces many merchants to give up their adherence to quality.

We can only save costs in every possible way and cannot invest in R&D to build high-end brands. Therefore, over the years, we have been stuck in a cycle where the lowest price wins and knockoffs are rampant. There is no way. If you enter the cycle of low-value involution, you will not make any money at all!
That is why the Pang Donglai model became so popular in later generations.

Some people actually still hope to buy quality products.

Pang Donglai conducts random inspections on all vegetables and other foods and has its own laboratory. Because all indicators of fish exceeded the standard, Pang Donglai had no choice but to buy all the freshwater fish and raise them in its own fish ponds with clean water for a week. Only when the drug residues in the fish are below a certain value will they be put on the market for sale.

All clothes of Pang Donglai are marked with the purchase price. The company supports and allows all suppliers to "fight against counterfeiting" and never allows the sales department to mark false purchase prices.

Pang Donglai’s pharmacy strictly controls profit margins, and many of its medicines are affordable drugs priced below 9.9 yuan, which is lower than other places.

This kind of quality is so rare in this era.

Many people said that this was too fake, and it was definitely exaggerated by the locals, or it was made up by Pang Donglai’s public relations to build up their image, unless he could open a branch near my home to verify its authenticity.

For no other reason than to see whether the supervision is really as good as it is said to be.

Why do consumers have such a strong obsession with Pang Donglai?

It’s not that he sells cheaply, but that he sells genuine products.

Gao Huaijun does not want his live broadcast model to become a 19 version of Douyin live broadcast.

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Everything serves the purpose of sales and KPI.

Although Hillhouse Culture made money by doing this, the impact on the entire Hillhouse brand is very bad.

Gao Huaijun saw Tong Ling's confusion, and he did not play it safe. He directly told Tong Ling some of the things about Pang Donglai's product selection standards.

And let Tong Ling go deep into the front line of Pangdonglai to conduct detailed project research and investigation.

Tong Ling and the executives nearby were confused at first, not knowing what this Fat Donglai was.

When they heard Gao Huaijun say that it was in a supermarket in Xuchang, they couldn't help but open their eyes wide with an expression of disbelief on their faces.

After all, Hillhouse is an industry benchmark and a company with sales of hundreds of billions.

Now let them learn from a supermarket in Xuchang?
However, when they heard about Pang Donglai's methods of product control, they couldn't help but look in admiration.

In this era, anyone who can strictly control product quality is worthy of admiration.

"For merchants selling goods on the Xiaoling APP, they must not sell low-quality, three-no products. If you want to control this, you need to make a set of strict rules. I would rather lose some sales than allow fakes to be sold on my platform! This is a matter of principle!"

"There is also the issue of traffic allocation. We cannot simply allocate product sales volume, but rather we need to classify and filter traffic according to the specific categories and push traffic to different users based on algorithms."

"To truly be able to have a thousand faces for a thousand people."

"You can discuss this with Andrew Ng, CEO of Hillhouse AI, to see how to update the underlying rules of the algorithm. Give me the latest solution."

"Finally, you have been working on Xiaoling APP for such a long time. Now Xiaoling APP is the benchmark in the industry, and its user base is the largest in the world."

"So you should support some cultural anchors in a targeted manner. This is our social responsibility and significance."

When Gao Huaijun said this, he thought of Dong Yuhui and Li Ziqi from later generations.

Although the profits generated by this type of popular cultural anchor may not be the highest, the corresponding status they create has the highest premium.

Tong Ling nodded.

Xiaoling Live Broadcast is a key point for Xiaoling APP to turn losses into profits.

Now Xiaoling APP has started the advertising mode, but this is far from enough.

After all, how much is your splash screen ad worth?

Do you want the merchant to give you 100 million just for turning on the screen for one day?

Therefore, their focus is still on the live broadcast platform.

After all, with live streaming, there is a demand for traffic. With the demand for traffic, can’t you charge traffic fees like Ali?

And now Xiaoling has a greater advantage than Ahri.

Ali is a traditional e-commerce company, while Xiaoling is an interest-based e-commerce company.

Gao Huaijun hopes that the initial model may be better with factory direct sales. By changing from wholesale to direct sales and eliminating the middlemen, it means that in addition to making products, sales must also be done.

In this way, consumers can save the cost of intermediary circulation.

The middlemen and second-hand dealers who went bankrupt will take less profits, so the prices of products will naturally become cheaper.

In this way, the production space and situation of the products can be displayed in the factory, giving full play to the advantages of Xiaoling's interest e-commerce, and it is also possible not to make the price higher than Ali's Taobao like Douyin in later generations.

Gao Huaijun hopes that by building his own model and system, some beneficiaries will be able to start to go deeper into the supply chain. This continuous investment in product research and development can return to the essence of business and make advantageous or differentiated products. Coupled with the platform's intelligent promotion tools, the focus will be on the product era, not operations.

Aren’t you familiar with which consumers the product is being pushed to?
Let me help you conduct big data analysis and measurement for thousands of people!
Even if you have a very expensive product but of high enough quality, I can still accurately push it to a small niche customer group.

This is the core value of Xiaoling APP, an interest-based e-commerce platform!
After this system is established, whether you can collect traffic depends on whether the product has advantages. Secondly, the relatively low-profit Pingxixi model will gradually be abandoned by merchants with product strength, and eventually return to the era where quality is king.

Building this system is very hard and tiring.

However, after the customers settle down, the profits are very lucrative.

The consumer market also follows the Rule of 28.

The sales volume of lower-level consumers may seem large, but in reality their purchasing power is seriously insufficient.

This is what is called having sales but no profit!

However, the reason why Ping Xixi became so popular in later generations was because of its low-price strategy and its unfair tendencies towards consumers.

But Gao Huaijun was not afraid of this at all!
What Tik Tok cannot do in the future, Hillhouse Capital can do!
With huge traffic that can crush everything, Hillhouse does not have as much profit pressure as TikTok.

With Hillhouse Technology and Hillhouse Vehicles as two powerful weapons, are you still worried about not making profits?
As long as you can withstand the pressure, you can tear off a big piece of flesh from Jingdong and Taobao!
(End of this chapter)