Since we are both reborn, of course I would choose the rich woman!

Chapter 271 Wang Shu: You've Lost Weight (6k views, please subscribe)

Lu Yao did not immediately agree to Lei's request, but pondered it for a while.

With Lü Yao's current connections and influence in Silla, if he helps Lei Jun mediate and takes various actions against Lee Jae-yong later, he can indeed force Lee Jae-yong to back down and resume supplying Xiaomi Group.

Samsung is cutting off the screen panel supply chain for mobile phone brands like Apple and Xiaomi, promoting its curved screen phones to increase Samsung's market value and profits, and sharing the profits with Lee Jae-yong's supporters. On the other hand, it's also because Samsung's flexible screen production capacity is indeed severely insufficient.

However, if it's only a small supply, facing the relentless attacks from Lü Yao and his group, Li Zairong will definitely make concessions in order to gain a breathing space.

The problem is that.

Is it worth it to do this?

Lu Yao sat in a comfortable leather seat, the wine glass in his hand slowly swirling on the armrest.

Seeing that Lü Yao was considering it, Lei Jun said, "Of course, I certainly won't let you help me for nothing. Although we are partners and even have a sub-brand partnership, we should keep clear accounts even between brothers. If you help me this time, I will recommend you to become a partner in Xiaomi Group and give you a portion of Xiaomi's shares."

Xiaomi was not yet listed in 2015. Its goal of targeting high-end models was, in part, to raise funds through an IPO.

As original shares of Xiaomi Group, these shares can be converted into a lot of cash after the company goes public.

This is a tactic that Lei Jun has always used to win over partners.

Lei Jun's view of shares is that they are like an unsigned check without a specific amount written on them, a pie in the sky that can actually be cashed in. In fact, when he is bringing people on board to negotiate terms, he will be particularly disappointed if the other party is not interested in Xiaomi's shares.

While the main reason for Samsung's screen panel supply disruption was not Xiaomi Group, one of Xiaomi Group's partners responsible for the supply chain did make a mistake.

Lei has made up his mind to kick the other party out of the partnership team and buy back the shares held by the other party.

These shares can be given to Lü Yao. As long as Lü Yao can help Xiaomi Group secure Samsung's supply chain and complete Xiaomi's high-end transformation for the next two years, Lei Jun wouldn't mind if these shares were given to Lü Yao for free.

Although Xiaomi's sales of previous generations of phones have been rising steadily, the fragile supply chain and brand image made Lei Jun realize the limitations of the low-end market.

If Xiaomi cannot complete its transformation within the next few years, it will almost certainly not have a place in the future mobile phone market.

It can be said that this is a matter of life and death for Xiaomi.

But Lu Yao's thoughts were different from Lei's, so he waved his hand and said, "Lei, that's not the point."

Mr. Lei was a little stunned. He subconsciously asked, "Then, what's the key?"

Lu Yao countered with, "Then what do you think is the core competitiveness of Xiaomi phones?"

Although he didn't come from a product background, Mr. Lei was from a technical background and was a CEO who understood technology and products very well. So he replied almost without thinking: "Extreme cost-effectiveness, but now extreme cost-effectiveness has become an obstacle to the group's development."

"But this problem is actually easy to solve: we just need to raise the 'cost-effectiveness' threshold, making Xiaomi users feel that our products are worth the price."

This is also why Lei Jun said that Samsung's panel supply is a very critical factor.

The truly valuable parts of a mobile phone are really just a few things—the screen, the camera, and the chip.

Among them, the chip is related to the user experience, the camera is related to the female market, and the screen is the most intuitive visual experience.

Therefore, the screen's priority even surpasses the user experience brought by the chip to some extent.

If Xiaomi wants its fans to accept the price increase, it must offer better quality and more sophisticated accessories so that CEO Lei can confidently and persuasively market the product at the launch event.

But Lü Yao felt that Lei Jun's success was somewhat due to marketing, but also his downfall.

While Lei Jun was speaking eloquently, Lu Yao's mind kept flashing through the marketing scandals that Lei Jun had brought to Xiaomi's development—such as the so-called "black technology" transparent back cover being just a sticker, the laptop being thinner than a one-yuan coin being a coin standing upright, and the austenitic 304 stainless steel...

From a marketing perspective, Lü Yao understood the necessity of these marketing claims.

Even if these marketing methods are a bit ridiculous, or even clownish, you can't deny that this kind of almost comical clownish marketing will go viral on the internet—the embarrassing nature of the marketing naturally attracts traffic.

As the old saying goes, "Good news doesn't travel far, but bad news travels a thousand miles."

Once news about the product spreads quickly, those who learn about it will be impressed by the other attributes of Xiaomi products.

With top-notch materials, exceptional cost-effectiveness, and comprehensive and reliable after-sales service, what are those minor marketing blunders?

Not everyone has a girl who's a "simp" and can just act cute and have a simp come to their door to buy them an iPhone on installment. And not every man is willing to buy himself a phone that costs nearly 10,000 yuan.

A phone with decent performance, low price, and even the ability to keep up with mainstream applications would be a rational choice for many men, so enduring some online teasing isn't particularly difficult.

Those who flaunt their Apple or Samsung phones in social situations generally don't have any overlapping communication scenarios with Xiaomi users.

In the early stages of a company's development, doing this is actually fine.

However, Xiaomi has been following this path since its inception, even its sub-brand Redmi has been around for several years, and it will suffer losses in the future.

Therefore, Lü Yao said, "President Lei, I personally admire your management of the product supply chain and your marketing of the brand. I also strongly agree with your understanding of the company's development philosophy."

"But I think it's fine for Xiaomi to have started as an internet company. But Xiaomi is no longer a small company. It should become an internet technology company that leads the development of technology. At the very least, we should have core technologies that we can control."

Lei opened his mouth, but ultimately remained silent and began to think.

In fact, Lei Jun had considered investing in the R&D of the supply chain for his own brand, but many domestic brands are struggling to take off.

As a CEO who is very familiar with supply chain management, Mr. Lei knows all too well how many pitfalls there are in the supply chain. He is not only afraid that the independent brand will not be able to develop, but also afraid of the existence of supply chain parasites.

Xiaomi, a company that started with cost-effectiveness, has limited profits.

Therefore, Mr. Lei can only spend money where it matters most.

So Mr. Lei nodded and smiled, “Mr. Lü, what you said makes a lot of sense, but the supply chain of independent brands cannot be developed overnight. We still need to solve our current urgent problems.”

Lu Yao smiled and said, "Actually, the research and development of domestic screens has made quite progress. For example, BOE, which is invested by Huawei, has developed for many years. Although BOE's screen panels are not as good as Samsung's screen panels in terms of performance, they already have flexible AMOLED screen panels."

"Moreover, I heard that the 8.5-generation line in Fucheng and the 6th-generation flexible AMOLED production line in Tianfu have also been launched this year, and their production capacity will be fully unleashed this year. I think it is very appropriate to use BOE's products as a transition."

Lei opened his mouth and said, "But—"

Lu Yao raised his hand to interrupt Lei Jun: "I know this is not good for Xiaomi's push into the high-end smartphone market. But Lei Jun, think about it carefully, even with more high-profile features, will Xiaomi's users buy it?"

Mr. Lei opened his mouth, but then hesitated and stopped.

Yes.

Even he couldn't guarantee that users would buy their "high-end phones" made with a lot of high-quality components.

Lei Jun is also gambling.

Lei Jun himself doesn't know what the future holds.

But Lü Yao knew what the future held; Lei Zong had lost his gamble.

As Xiaomi's first flagship phone, the Xiaomi 6, priced at 2999 yuan and to be released in 2017, saw its sales nearly halved compared to the Xiaomi 5, which will be released next year.

It wasn't until Lei Jun reorganized the supply chain and the domestically produced screens he supported finally started to produce good products that the Xiaomi 8, which the group poured its heart and soul into creating, achieved a sales comeback, with sales exceeding 10 million units.

What does this mean?
Domestically produced screens are competitive.

However, domestically produced screens need some time to develop.

Lu Yao continued, "Instead of blindly rushing into the high-end market, we should steadily and cautiously release information about our R&D investments to the outside world. Of course, I know that you, Mr. Lei, have always been a strong supporter of independent brands."

In the early days of Xiaomi's development, because the newly established brand had relatively little say in the supply chain, the screens for the first Xiaomi phones were initially supplied by Sharp and AUO.

However, almost all of the initial releases used screen panels from domestic manufacturer Tianma Electronics, with only a very small number using AUO screen panels.

Because the product did not match the description, Xiaomi was sued in court under the leadership of a well-known anti-counterfeiting activist and with the involvement of competitors. As a result, Xiaomi lost the case. After this incident, all domestic mobile phone manufacturers began to add small print as supplementary explanations to their product launch presentation slides.

But there was a dramatic twist to the story. Later, some rights defenders, for reasons unknown, made a clever move in their lawsuit, not directly asking for compensation, but instead hoping that Xiaomi would produce a Sharp or AUO Redmi Note 2 for them.

These rights defenders were unaware that Xiaomi had actually manufactured some Redmi Note 2 phones with AU Optronics (AUO) screens. They thought they could get more compensation, but little did they know that Xiaomi had directly slapped the AUO phones in their faces. The AUO screens performed even worse than the Tianma screens, while the yellowing issue of the first batch of Tianma screens had already been resolved through an OTA update...

After that, until the advent of full-screen displays, domestic screen manufacturers gradually improved their technology and became the preferred supplier for almost all domestic mobile phones priced below 2000 yuan.

After 2020, almost all major domestic mobile phone manufacturers started using screen panels from domestic brands, and later even Apple started using BOE screens.

So Lü Yao advised, "Since we've done something to support domestic products, let's be open about it and use it as a marketing point to let the outside world and Mi fans know that Xiaomi is not just an assembly and rebranding company, but a genuine internet technology company that supports domestic products and possesses core technologies."

In this respect, Huawei is the one that has done a really good job.

Huawei has always been very bold in using domestically produced components in its flagship products. BOE had a very impressive performance in the early Mate 20. When LGD in the Mate 20 Pro had a green screen issue, BOE did a great job, showing people the strength of domestic screens.

However, BOE's technology iteration was unstable, and the subsequent P30P tarnished its own reputation.

The Mate X was a sensation, with almost every tech enthusiast exclaiming "Wow, that's awesome!" before the P40 Pro flopped spectacularly.

But did this affect Huawei's later status as the leading mobile phone and technology company in China? In fact, many users who bought Huawei products generously said, "Consider it supporting domestic products. I'll contribute to Huawei's R&D budget this year."

That's what makes patriotic marketing so amazing.

Lu Yao does not recommend going too far down the path of patriotic marketing. It is enough to let the outside world and Mi Fans see Xiaomi's attitude. Then, use JDI if you should use JDI, and use LG if you should use LG.

"Before the product is truly mature, there's no need to use Xiaomi's reputation to get Mi Fans to buy it."

Lu Yao said this.

Lei was persuaded by Lü Yao; it was indeed a solution.

But what kind of manufacturer can survive if it invests in R&D for a long time but doesn't make a profit?

Even Tianma Electronics, which Lei Jun has been consistently sourcing from, has only been able to continuously improve the performance of its product line by earning meager profits through low-priced OEM manufacturing.

Lu Yao laughed and said, "I have already established a deep partnership with a domestic screen manufacturer. Don't worry about how to make a profit, Mr. Lei. As long as we don't starve, I will tighten my belt to improve the performance and yield rate."

"Of course, if Mr. Lei is also willing to invest, we would be very happy to do so. Once the performance is improved in the future, we will give priority to supplying it to Xiaomi."

Lei is a bit confused.

"Didn't I come here to ask Mr. Lü for help in mediating matters?"

"How come it's now Mr. Lü asking me for investment?"

But Lü Yao's words did indeed touch upon President Lei's mind.

After pondering for a long time, Mr. Lei asked, "Then... Mr. Lü, do you mean that the Geek Phone will also be released later?"

Lu Yao laughed and said, "Actually, I'm not in a hurry. The Geek Phone is a product I plan to use to shock the world. Good food is worth the wait, and I'm confident that the Geek Phone will be loved by digital enthusiasts as soon as it is launched."

"But it's not appropriate if it's too late."

Lu Yao said earnestly, "Therefore, my suggestion is to increase investment in domestically produced components. Next year, you should maintain Xiaomi's current business strategy to ensure stable cash flow accumulation for Xiaomi. At the same time, you should declare to the outside world that Xiaomi is investing heavily in the research and development of core technologies."

"Then in 2017, we'll see if we can upgrade the Xiaomi number series to flagship status. As for the high-end models we're collaborating on, that will depend on the performance of the domestically produced components at the time."

As he spoke, Lü Yao pondered for a moment, then affirmed, "If possible, I think 2017 will be a very good year, at the latest no later than 2018."

Because Apple will launch the iPhone X with a notch screen in 2017, Apple's design language will be fixed for the next ten years.

By launching his geek phone before Apple's notch-screen phone, Lü Yao was able to ride the wave of Apple X hype.

The iPhone X was controversial from the moment it was released, but with the support of Apple fans and Apple's excellent quality and user experience, the iPhone X quickly swept away all the negative voices with its strength.

Apple's marketing will then be caught in a dilemma.

Because there was a geek phone that was released earlier... it's hard to criticize it or praise it, which is enough to make it uncomfortable.

finally.

Lei was persuaded by Lü Yao: "Then let's go all in on this."

It's all gambling anyway.

Not only was he unable to fully utilize his resources due to supply bottlenecks from overseas, but the several times he was turned away in Silla also greatly displeased Mr. Lei.

Instead of doing that, we might as well gamble on domestically produced components to improve performance.

Because of his long-term purchase of screens from Tianma Electronics, betting on the latter actually gave Lei Jun more confidence.

As for how to market Xiaomi's investment in supporting domestic components and enhance Xiaomi's patriotic image... well, that doesn't need to be taught by Lü Yao. Lei Jun is exceptionally good at marketing; you could even call him a marketing genius.

Even Lü Yao has to learn from President Lei in this regard.

Just listening to Lü Yao's presentation, several marketing plans immediately came to mind for President Lei.

After being persuaded by Lü Yao, President Lei couldn't help but laugh and say, "When I talk to people, they all say I'm too talkative, but after talking with you today, President Lü, I really think you are even more eloquent than me. I think it's necessary for us to further deepen our cooperation."

Then Lei Jun extended an invitation: "I think we can completely bypass the subsidiaries and cooperate. I'll give you 3.4% of Xiaomi Group's shares and invite you to become a new partner of Xiaomi Group! What do you think?"

This is practically money delivered to your door.

However, as everyone knows, although Mr. Lei is generous, his money is not so easy to obtain.

Lu Yao quickly waved his hand and said, "President Lei, please forgive me. I have so many things to do right now, I can't possibly finish them all!"

This was not a refusal by Lü Yao.

Now, every time Lü Yao opens his eyes, it's as if he can hear cash pouring out like water from a burst dam, and at the same time, he has at least twenty matters that require his decision.

Even though professional advisors and staff had already prepared data and relevant opinions for him on these matters, just browsing through them was enough to give Lü Yao a headache.

This business was generated even after Lü Yao had boldly delegated authority.

So he really didn't have the energy to join Lei's partner team anymore.

One Rong Nianqing and one Jian Xiaojie, aren't they enough for him to serve?

But Lei has no intention of giving up on Lü Yao, this high-quality stock.

Although Lei Jun only had two personal meetings with Lü Yao, both of them left a very deep impression on him. In addition, Lü Yao's previous cooperation with Shang, the general manager of Xiaomi Interactive Entertainment, as well as the companies that Lü Yao runs and the companies he consults for, all made Lei Jun feel that this person has a very high level of vision, perspective and cognition.

He is a rare talent.

Faced with such talent, Lei could restrain himself in the past, but when Lü Yao gave more in-depth suggestions on the group's development strategy, he could no longer hold back.

Back when Xiaomi was founded, Lei Jun went to great lengths to gather top talents in the industry, making numerous visits to their homes. So, he persisted, saying, "Mr. Lü, I know you must be very busy. But don't worry, I certainly won't assign you any specific tasks. All I need you to do is attend important meetings during the group's development and offer your ideas and suggestions to help the group grow."

The higher you get to Lei Jun's position, the more you realize how crucial someone is who can provide the right advice on the big picture.

No matter how well you do the details or how thoroughly you implement the work, if the overall direction is wrong... the more you do, the more outrageous the mistake will be.

Therefore, those who can find a clear and correct path from a complex situation and a volatile and ambiguous future are extremely rare talents.

Lü Yao's resume has already proven that he has this ability.

This is why Mr. Lei was so easily persuaded.

If that's all there is to it, then Lü Yao can accept it, so he smiled and said, "You really just want to have a meeting with me to talk about development, huh?"

Mr. Lei smiled and said, "This is already very good."

Xiaomi Group has no shortage of technical backbone in its mobile phone business, but talents like Lü Yao are relatively scarce.

Lü Yao was not afraid of Lei's work requirements.

He has nothing to fear for at least the next ten years.

Because of Lei Jun's visit, Lü Yao stayed in Beijing for almost another week. Only after signing the contract and becoming a formal partner of Xiaomi Group did he bid farewell to Lei Jun's team and leave Beijing.

……

This time when he returned to Shangnan, Lü Yao did not have Rong Nianqing's private plane come to pick him up, nor did he take a first-class flight back.

He chose the business class seat on the high-speed train.

The high-speed train from Beijing to Shangnan only takes a little over four hours. Although it takes longer than flying, it is more comfortable and pleasant. During this period, Lü Yao was busy causing trouble in Silla. After returning to Beijing, he still had to deal with Li Rongzhen and the others. Therefore, Lü Yao was truly exhausted both physically and mentally from this trip.

So on his way back, he wanted to switch to a more comfortable and convenient mode of transportation.

When Lü Yao finally returned to Shangnan, he saw Wang Shu waiting for him as soon as he got off the train.

After landing in Beijing, Jian Xiaojie spent two days with Lü Yao and the others before mysteriously disappearing to do her own thing.

So on this trip back to Shangnan, Lü Yao only had Lin Yongzhen by his side.

When Wang Shu saw Lü Yao and Lin Yongzhen come out of the station exit, he first went to greet Lin Yongzhen, hugged her and exchanged a few pleasantries before coming to Lü Yao.

Today, Wang Shu wore a champagne-colored pencil skirt and a dusty rose-colored fitted knit top. Her thick, black hair was styled in a bun, which complemented the color scheme of the outfit, making her look exceptionally gentle and mature.

This stirred a feeling in Lü Yao's heart, who hadn't seen Wang Shu for a long time.

Wang Shu possesses a captivating, mature, and gentle feminine charm that is easy to fascinate, yet this charm often conceals an extremely reserved and contrasting side.

While Lü Yao was admiring Wang Shu's outfit, Wang Shu was also looking at Lü Yao. She leaned close to Lü Yao, tilted her head back, raised her hand to wipe Lü Yao's face, and said with some concern, "You've lost weight."

(End of this chapter)