King of Capital

"If everyone has no questions, let's leave it like this for now and get busy."

Xie Jingxing announced the end of the meeting, and several executives left one after another. Liu Jiangfeng looked back at the office with a reluctant look on his face. Li Nan and Liang Jun sat in their seats without moving a muscle.

His observations were once again proven to be true; offline direct-operated stores are not only sales channels, but also have strategic significance in building a product ecosystem on the supply side.

This is the same as Wang Xing's theoretical conception of Internet ecology. If "Meizu Lezhi+" is regarded as the Meituan APP, then Gree air conditioners, Kaadas smart locks and the like are merchants that have settled on the platform.

Whether consumers want to eat Longjiang pork trotter rice or Indian parathas, watch a movie after get off work on Friday, or ride a shared bicycle to enjoy a reclining ear cleaning for 600 yuan, all their needs can be met by opening an app.

Similarly, when a user uses a Meizu mobile phone to control a Meizu new energy vehicle, Lezhi TV, or Lezhi audio system, when he buys a smart door lock, he will most likely choose a brand product that can be controlled by a Meizu mobile phone.

On the contrary, the more Meizu Lezhi+ shipments there are, the easier it will be to attract external smart terminal brands to join the ecosystem, and the two complement each other.

It is called an offline direct sales store system, but in fact it is a 'smart terminal device control system'.

Huang Zhang had just been kicked out together with Ali, which had forced him to develop the mobile phone system, and Xie Jingxing picked it up again and decided to do something bigger.

An open operating system ecological platform covering all smart terminals, he wants to build highways and collect infrastructure taxes from the next era of artificial intelligence.

Just as Microsoft system is to computers in the PC era, Android system is to mobile phones in the mobile era...

In fact, this is not only the same as Wang Xing’s philosophy, but also the essence of human commercial development over thousands of years has remained the same: lending and collecting taxes will always be the most profitable businesses.

Ten years later, Lei Jun created the so-called Mi Chain based on Xiaomi Home, as well as the pure-blooded Hongmeng OS and Huawei Smart Selection, which made both Huawei fans and anti-fans excited. No matter how mobile phone operating systems define bloodlines, they all show their magical powers and work tirelessly towards the ultimate goal.

Even if the movements and postures are extremely ugly, as long as the cricket pupa reaches the end, it will no longer be a poor laborer who makes hard-earned money by performing tricks on the street. When it enters the house and taxes the world, all those who laugh at the joke will cry out loud.

However, venture capitalists are well versed in various business models and are good at applying proven successful methodologies to companies, but it may not work if they are asked to do it.

Xie Jingxing was no exception. Now he needed to personally lead a group of people to realize what was in his mind.

This job has never been done before, and the halo on the young commander's head has disappeared, replaced by the title of a rookie in the hard technology manufacturing industry. He still needs to keep his feet on the ground and move forward step by step.

"Putting aside long-term strategic planning and looking at the present moment, an obvious problem lies before us - the domestic mobile phone industry has entered the stock market."

Xie Jingxing pondered and said, "I remember that Meizu launched its first mobile phone product in 2009, and has experienced the development process of the entire industry until now."

"If the front touch fingerprint unlocking function two years ago is a generational watershed, the second-generation smartphones are basically popular among the first- and second-tier cities, and the third- and fourth-tier cities and even the poorest rural mountainous areas are willing to spend a few hundred yuan to buy a first-generation smartphone. Those who should buy have already bought it."

He stood up from his desk, walked to the window, opened it for ventilation and said, "In seven years, dozens of manufacturers have fought over the entire industry, burning hundreds of billions of dollars, and the supermarket market for more than a billion people has been completely developed. This is a miracle."

"What should we do next? We can only snatch meat from our competitors. Xiaomi's sales have fallen sharply this year, which is obviously far more than just a supply chain problem."

The rolling heat waves penetrated into the office through the windows to offset the cold air from the air conditioner. Liang Jun and Li Nan couldn't help but sit up straight and stroke the hairs on their arms.

OPPO has been planning to develop overseas markets through its sub-brand 'OnePlus' early on. Huawei gradually cut its low-end contract phones with the three major telecom operators two or three years ago, and its sub-brand Honor transformed and entered the online sales market. The two companies have joined forces with vivo to dominate the offline sales channels.

Which is more difficult: getting provincial general distributors or increasing the number of followers on the brand’s WeChat public account?
Yu Chengdong has proved with practical actions that although he cannot do the kind of clever and ruthless things like Lei Jun one after another, he can still achieve the effect of online marketing hype by just barking with a big mouth.

But Junzi's attempt to challenge Huawei's offline dealer system, which has been built brick by brick over the past 20 years, with his internet entrepreneur style is somewhat wishful thinking.

Apart from anything else, the number of years that relatives of good friends have been registered in the branch company and receiving salaries is longer than the number of years since Xiaomi was founded; Xiaomi bought a courtyard house as a leisure and entertainment venue for good friends, and only when good friends had almost finished using their sewing machines did Xiaomi think of building an offline dealer system.

To quote the famous gangster Liu Huaqiang: Do you have what it takes to compete with me?

These are secondary. The main problem is the same as that faced by Meizu. Both companies started out with online sales channels, and the prices of their products are highly transparent and unified across the network. They are completely unable to launch 800 product lines like Huawei and VO, blinding consumers and making it impossible for them to distinguish the price differences of models.

Offline dealers make dozens of yuan from selling a mobile phone from the first two brands, and hundreds of yuan from selling a mobile phone from the last three brands.

The result is that Xiaomi opened its first offline sales store in Beijing last fall, and it took more than half a year to expand the number of stores to more than 20.

The market has entered the red ocean stage of existing stock, and the online and offline sales channels are doubly strangling it. Coupled with the product supply chain crisis, big troubles have come one after another, crushing Xiaomi's market share this year.

Meizu's current situation is not any better than that of its competitor. Apart from the different crises caused by internal human factors, the external market environment is exactly the same.

"In the final analysis, Xiaomi has demonstrated to us that it is urgent to follow Mr. Lei's strategy of crossing the river with offline direct stores."

Xie Jing Xing was silent for a moment, closed the window, turned around, smiled and said jokingly: "Don't worry about your future ambitions, let's take a look at everyone's year-end bonus this year."

"'Meizu Lezhi+' is positioned as an independent joint venture digital new retail brand. Can both parties retain their original online sales channels?" Li Nan tried his best to persuade.

"It's impossible for leading brands like Gree to put their products in our offline stores, and we don't know if it will be compatible with smart operating systems for several years."

Xie Jingxing said carefully: "In the short term, we can only strive for the start-up smart terminal brands invested by Taihe Xiyou to enter the online and offline sales channels, so your official website mall and e-commerce channels must maintain their respective operations unchanged."

"LeTV has certain offline dealer resources that can be integrated into the 'Meizu Lezhi+' brand." Liang Jun has a positive attitude.

Li Nan nodded in a friendly manner and said, "That is the direct-operated store + franchisee system. The direct-operated stores focus on brand experience, while the franchisees are responsible for selling the goods. This is equivalent to our two products not making money to attract customers, while the products of external cooperative manufacturers open up channel premium space and pass on the profits to franchisees."

"The online official store of 'Meizu Lezhi+' is included in the factory installed software of Meizu mobile phones. Your respective official website stores can also sell products of 'Meizu Lezhi+' partner manufacturers. For many start-up brands, giving a product recommendation position on your official website can help them save hundreds of thousands of marketing costs." Xie Jingxing added along the way.

Considering the present and the future, there are reasons why offline stores must be opened. Liang Jun and Li Nan can only consider their own interests on this basis.

Meizu and LeTV are somewhat similar, with idealistic founders and sentimental user groups, both in the same fashionable and petty-bourgeois tone range.

One has the advantage of universal mobile terminals, while the other has tens of millions of Internet user traffic that can be converted. If the two are allowed to negotiate alone, it will be difficult to come up with cooperation terms that both parties consider acceptable.

However, regarding the long-term vision of "intelligent terminal system", it is difficult to just pick someone on the street to make a choice, and it is even more difficult to entrust this important task to LeTV to lead the research and development.

Xie Jingxing immediately made the decision to establish a joint venture, with Meizu holding 40.8% of the shares and LeTV holding 39.2%. Grapefruit Capital made a strategic investment of 30% at a valuation of 20 billion yuan and provided 6 million yuan in start-up capital.

Bai Yongxiang concurrently serves as the chairman of "Meizu Lezhi+", Li Nan, who has a marketing background, concurrently serves as the CEO, and LeTV and several senior executives are dispatched to carry out specific business promotion. People from Xiyou will go to Zhuhai tomorrow to help coordinate the introduction of external cooperative brands. The general framework of money, resources, and personnel arrangements has been roughly formed. This year, 20 directly-operated stores + 100 dealer stores are the guaranteed performance of the management team.

Bai Yongxiang also serves as deputy director of the "Meizu New Energy Vehicle Preparatory Committee". He has a heavy responsibility and needs to work hard. If he does a good job, it will be natural for him to resign from the position of president and devote himself to new business to expand the company's territory.

I can't do it well. I'm too old and my abilities are limited to be qualified to be the president. In view of his hard work and contributions, he should be transferred to a horizontal position to enjoy his retirement.

"Liu Jiangfeng is doing well at work. Find him something to do in the new company."

Xie Jingxing and the other two communicated efficiently for a long time. Chen Xi walked into the office and indicated that it was time. He said one last sentence.

Li Nan thought for a moment and suggested, "He seems to have a deep understanding of the platform ecosystem. How about letting him connect with external partners?"

"Okay, you two can chat first, and then we can have dinner together when I come back in the evening."

"My name is Yang Yanlai? The operating system is very complicated, so you have to be mentally prepared."

"I have an appointment with him." Xie Jingxing picked up his suit jacket and left in a hurry.

Based on the Meizu Flyme system, it can interconnect over 100 million smart terminal devices from hundreds of brands.

It's like tying up a hundred people around the world with a piece of wool, pulling the thread to control them as if they were arms, and asking them to keep their daily lives going smoothly.

It sounds counterintuitive.

One hundred employees working on the Foxconn factory assembly line were asked to fill out forms for their home addresses. Some asked whether they should fill out the address on their ID card or their current address. Some asked me how to fill out the form if I lived in a factory dormitory. Some said that the farmhouse I rented in the urban village had no house number.

Each manufacturer's operating system is different. Every instruction that users use to control these smart terminals through the Meizu Flyme system is equivalent to allowing them to instantly fill in their home address in a unified format with different information.

Before today's meeting, Xie Jingxing asked Yang Yan privately and got the advice to build three systems first.

Meizu Flyme is an in-depth self-developed mobile phone OS, and it has developed another set for smart device terminals and another set for new energy vehicles. After accumulating technical experience for two years, it will find ways to gradually achieve compatibility.

After listening to this, Xie Jingxing began to doubt what he had learned in his undergraduate elective programming course.

Yang Yan held his head and pondered for a long time before coming to a conclusion. He would try to lead a R&D team of 2000 people to do it in three years.

Xie Jingxing immediately realized that it was only right to prepare for the expected situation and take it step by step.

…………

"how did you do that?"

In a coffee shop near the Meizu headquarters, Xie Jingxing waved across the floor-to-ceiling glass facing the street. Liu Qing walked out quickly with two cups of coffee and asked straight away.

He shrugged speechlessly, not understanding what he meant.

"You predicted that war is a continuation of politics and that a high-intensity confrontation will occur this year."

Liu Qing repeated with a serious expression, these were his exact words during a private meeting between the two parties after Didi acquired Uber China a few months ago.

Xie Jingxing said lightly: "I didn't miss it."

"I am talking to you seriously about this matter. How did you do it...so how can you be sure that international relations will not ease in the future?" Liu Qing couldn't help but lower his voice.

Xie Jing Xing shook his head and laughed: "Come on, there's no need to dwell on boring things."

"I want to push Didi to go public as soon as possible!" Liu Qing simply threw out the point.

Xie Jingxing was stunned for a moment, took a cup of coffee from her hand, and walked forward along the road.

Liu Qing took a deep breath and took a step forward to catch up. The two of them walked a long way, one in front of the other, and stood side by side on the river bank.

"Jean, you can't only be willing to listen to me patiently when you need help. The Didi project is over for me. I squeezed out time to meet you today because I treat you as a friend." Xie Jingxing was helpless.

Liu Qing raised her hand to tuck the strands of hair stuck to her lips behind her ears: "Grapefruit Capital is still the second largest shareholder of Didi today. This is related to the return on investment of billions of dollars. You have to support me."

"We have signed a repurchase agreement. When Didi goes public will not affect Xiyou's exit." Xie Jingxing spread his hands and stated.

“The return rate from exiting through IPO is definitely higher than that from repurchase!”

Liu Qing said firmly: "We have been together for three years. You have always insisted on your own things. You have done your best to be responsible for the project and seek the greatest value, and be responsible to the LP."

"Show the correctness of my prediction to Didi's shareholders meeting and convince them to agree to go public as soon as possible? Vote in favor of you? Help you clear the obstacles in the implementation of your plan for listing in the United States? What does it mean to do my best? I don't know." Xie Jingxing's words were heart-wrenching.

After the merger and acquisition was completed, Uber's major shareholder SoftBank immediately led Didi's US$40 billion financing round, becoming Didi's largest shareholder. In addition, China Ping An provided US$20 billion in bond financing.

With a total cash flow of 60 billion US dollars in hand, Xie Jingxing tied all of Didi's shareholders and management to the rooftop. These people would rather line up to be kicked down and die miserably, and absolutely no one would agree to go public as soon as possible.

He had already given everything he had and could not give more.

"sorry."

Liu Qing lowered his eyebrows and pursed his lips, like a ashamed and stubborn child, silently persisting.

Xie Jing Xing suddenly smiled: "Why don't you come work for me and we can build cars together."

"..."

Liu Qing was stunned and speechless. (End of this chapter)