Entertainment mogul: Starting his business with the internet

Chapter 415 Large Group Cooperation

Ms. Liu Shishi, Ms. Jing Tian, ​​and Ms. He Chaolian are not big eaters to begin with. After having a taste of London's special delicacies, they put down their knives and forks and started chatting.

On the other side, Wang Sicong was enjoying his meal, putting a piece of tender and juicy beef into his mouth, and said, "Sister, I've settled the matter with the e-sports club. We can sign the contract and complete the transaction at any time."

Liu Shishi asked curiously, "Didn't Tianci initially say he absolutely refused to sell the 'royal family'?"

Royal Club's predecessor was the "Royal Family" guild created by Tianci, a famous wealthy player in the online game "Zhengtu". With the rise of e-sports in China in the past two years, it has gradually transformed into a professional e-sports club.

"I guess they're running out of funds," Wang Sicong said dismissively, clearly unconvinced by Tianci's earlier insistence.

"Esports clubs require substantial investment. The domestic business model is still immature, making it difficult to monetize clubs and resulting in widespread losses. It's not something ordinary people can afford to play."

"How much is the price?" Liu Shishi asked.

"thirty million."

"I'll go back to China in a couple of days to sign the papers." The woman nodded gently.

She had previously learned that domestic esports clubs are currently struggling to make a profit, and their income mainly relies on corporate sponsorships.

Her purchase of Royal Club was not only a spur-of-the-moment decision, but more importantly, it was to promote popular games such as League of Legends under the Tengda Group.

Wang Sicong immediately replied, "OK! I'll let Tianci know when the time comes. By the way, sis, the club manager wants to see you."

Liu Shishi glared at Wang Dashao. The manager wanted to see her, probably just to get operating funds. She was starting to wonder if she'd been tricked into taking over the club.

"Si Cong, besides sponsorships, does the club have any other stable sources of income?"

Wang Sicong thought for a moment: "The bulk of the revenue comes from corporate sponsorships, but sponsors' investments are linked to tournament results. Only top clubs with good performance can receive the bonuses."

Another model is combining videos with Taobao sales, where contestants or coaches create instructional videos and integrate peripherals, snacks, and other products.

From what I understand, top Dota commentators like Haitao and 09 earn over a million yuan a month from their Taobao stores.

Wang Dashao has a good business sense. Before entering the e-sports and live streaming industry, he conducted thorough market research.

When asked by the top female esports player, she shared all the industry information. Although IG and Royal Never Give Up may become rivals in the future, the esports industry is still in its infancy, and the most urgent task is to expand the market.

As Liu Shishi was pondering the business strategy introduced by Wang Sicong, He Chaolian couldn't help but ask, "Is opening an online store on Taobao really that profitable?"

"Online shopping has become incredibly popular in the last two years. With enough traffic, a Taobao store can easily generate tens of millions in revenue annually." Wang Sicong's lips twitched slightly as he thought of his girlfriend, a model who also ran an online store.

He Chaolian nodded thoughtfully: "I also plan to open an online store and create a trendy clothing brand."

She had just graduated from university and, according to the He family's rules, was entitled to a sum of start-up capital. If the business failed, she would have no choice but to obediently return home and inherit billions of dollars in assets.

She's been under a lot of pressure lately, wanting to achieve results to prove herself, but hesitant to commit everything at once. Investing in one or two online stores to test the waters seems like a good option, as the cost of trial and error is low.

Liu Shishi chimed in: "Now is the time when e-commerce is booming and trendy culture is also very popular. Opening a Taobao trendy clothing store is indeed a good idea."

"Sis, how about we go into this together?"

Seeing that the top sister also agreed with her idea, He Chaolian became even more interested. With the other party's popularity, she could just wear a piece of clothing from the store, take a photo as a sample, and the product would probably sell out in no time.

"No thanks. Taobao belongs to Alibaba Group!" Liu Shishi politely declined with a smile. As the wife of Asia's richest man, it would be too beneath her to open a Taobao store.

"Fine!" He Chaolian said sullenly, then asked, "Sister, the e-commerce industry is so booming, and Tengda Group is so big, why don't you get involved in e-commerce?"

Before Liu Shishi could speak, Wang Sicong chimed in: "Tengda has already taken over the three major sectors of portals, social networking, and games. It can't really monopolize the entire internet industry, can it?"

“That’s right!” He Chaolian had a sudden inspiration and her gaze fell on Jing Tian, ​​who had been quiet all along: “Tian Tian, ​​how about we team up?”

She knew that traffic was key to the success of her online store, and that getting a celebrity to invest would greatly benefit the brand's promotion.

"Can I?" Jing Tian was taken aback, then a hint of interest appeared on her face. Having grown up only knowing how to spend money, investing and making money was a first for her, and it was certainly a novel experience.

“Of course! We’ll find someone to manage the shop, and you can help with the promotion.” He Chaolian said confidently. “I’ve already thought of a strategy: we’ll target students and urban youth with our products first.”

The products target students and feature high-quality, affordable streetwear style, priced between 80 and 200 yuan, emphasizing design and limited-edition concepts.

Urban youth focus on the trend of accessible luxury, priced between 300 and 600 yuan, emphasizing fabric craftsmanship and co-branded attributes.

By putting more thought into the design and avoiding mainstream styles, you should be able to create a best-selling product.

Upon hearing this, Wang Sicong gave a thumbs up and praised repeatedly, "No wonder you are a top student from Royal Holloway, University of London. Your business acumen is amazing."

He explained the business strategy clearly in just a few words. In my opinion, running an online store is a waste of his talent. How about we start a business together?

"You're going to start your own business too?" Miss He looked surprised, her eyes wide. "Are you kidding me? You're the only son in your family, and no one is going to compete with you for the family fortune. Instead of obediently waiting to inherit billions of dollars, you're going to make your own way?"

"I'm not interested in buying land and building houses. I'm just asking you one question: do you want to work with me?"

Which industry are you planning to work in?

"Internet live stream!" Wang Sicong felt a little uncomfortable under He Chaolian's direct gaze. "Why are you looking at me like that?"

He Chaolian's expression turned serious: "Are you serious?"

"Of course it's true, my live streaming company is already in the planning stages!"

"You're really daring!" He Chaolian exclaimed in amazement. "You actually dare to go head-to-head with Tengda Group!"

You don't seem like a clueless newbie who doesn't do market research. Don't you know that Tenda currently dominates the live streaming industry?
In the live entertainment sector, Tenda's TT Live holds an 80% market share. In the game live streaming segment, Tenda recently established Huya Live. What do you have to compete with them on?

"While Tenda is undoubtedly powerful, it is not invincible in every field! Online payment, food delivery, group buying, video websites..."

Tenda's operations are too sprawling, so the support allocated to live streaming is inevitably limited. I've made a detailed business plan; it's not that there's no opportunity.

Young Master Wang's gaze was firm, and his voice resonated with conviction, "Just like Dickens said in 'A Tale of Two Cities,' 'It was the best of times, it was the worst of times!' Opportunity always lies hidden in challenges." Seeing that Wang Sicong was not acting on impulse, He Chaolian hesitated for a moment, then gritted her teeth after a long pause: "Let's do it! At worst, I'll lose everything and go home to inherit the family fortune."

However, although we are friends, investing in the internet industry is no small matter. From a business perspective, due diligence and business plans are essential steps that cannot be omitted!

"Don't worry, I know the rules!"

The two top-tier rich second-generation heirs chatted about starting a business, one after the other, which made Liu Shishi smile.

If the idea that a failed business means going home to inherit billions of dollars in assets got out, it would probably infuriate other struggling entrepreneurs.

Jing Tian timidly interrupted the two who were having a lively conversation: "Well, if I may ask, Chao Lian, are you planning to start a live streaming company with Si Cong? Are you still planning to open an online store?"

Miss He blurted out, "Of course we'll open one. Opening an online store doesn't cost much, and there are professionals to manage it, so we don't need to worry about it too much. We can discuss the specific details after we get back to China."

Before they knew it, night had fallen, and the four of them parted ways after a good time.

Time flies, and several days have passed in the blink of an eye. Soon it will be August 7th, the beginning of autumn.

In the Tengda Technology Building office, Song Ci was having a WeChat video call with Liu Shishi: "Are you going back to China tomorrow? Why not stay in London for a few more days, watch the closing ceremony, and then come back?"

On the screen, Liu Shishi shook her head: "No, my mother and mother-in-law are tired of staying here, and we're not used to the food in England."

"It's good that you're back. I'll pick you up from the airport."

The couple poured out their hearts to each other before reluctantly ending the call.

Song Ci turned on the speakerphone on the landline on her desk, dialed a short number, and the call was quickly connected.

"Chairman Song!"

"Liu Yan, suppress all the trending topics about Shishi on Weibo." Song Ci instructed her subordinate while looking at a trending photo on the computer screen.

In the picture, Liu Shishi stands up and applauds, her profile reflecting the boiling crowd and waving national flags in the Olympic stadium. The beauty of the East and the spirit of sports resonate in unison, creating a stunning picture.

The reporter's candid shots did capture the wife in a picturesque way, but everything in excess is harmful.

Shishi has been trending on social media frequently lately, even overshadowing the Olympic athletes who have brought glory to the country, which inevitably raises suspicions of her overshadowing the main focus.

Liu Yan quickly replied, "Okay, Chairman Song, I'll suppress the heat surrounding Madam right away."

At that moment, there was a knock on the door. After receiving permission, Wu Yi, the president of WeChat, pushed open the door and entered the office.

"Chairman Song, this is the cooperation plan with the State Grid. Please review it."

"Please sit down." Song Ci took the materials. Next week, he would personally lead a team to visit the senior management of the State Grid Corporation to discuss the integration of WeChat Pay into the State Grid for residential electricity bill payments.

Song Ci looked down at the materials, while Wu Yi explained the strategy: "Chairman Song, if you want to persuade the State Grid to use WeChat Pay, you must directly address their core demands and pain points."

Wu Yi spoke eloquently, clearly having done his homework: "Currently, State Grid's physical business halls and cooperative collection points are facing enormous pressure from the flow of people, especially during the peak payment period at the end of the month, when queuing is severe and management costs are high."

If the power grid uses WeChat Pay, it can achieve 24-hour unmanned payment, diverting offline traffic to online and relieving the burden on the grid.

Furthermore, our investigation revealed that the State Grid's cost of SMS bill reminders is not low. Taking Jiangsu Province's power grid as an example, it spends 400 million yuan annually on electricity bill SMS reminder services. If 50% of this business were transferred to WeChat, half of the expense could be saved.

Song Ci paused briefly and said, "WeChat now has 4.3 million users, and everyone has a strong demand for 'fingertip services'."

However, water and electricity are fundamental to people's lives and cannot be taken lightly. Even if WeChat Pay is incredibly convenient, I doubt that the top management of the power grid company would dare to easily allow WeChat to be integrated into the power grid system.

My idea is to first persuade the power grid to conduct a pilot program in a certain province for a period of time, and if the operation goes smoothly, then gradually roll it out nationwide.

Wu Yi followed up, saying, "You've thought things through very well. Let's start with a pilot program in one province so we can make adjustments as needed if any problems arise."

Which province do you think would be most suitable for a pilot program?

"I suggest Jiangsu, Zhejiang and Shandong provinces! Preliminary research found that these three provinces have developed economies, extremely high smartphone penetration rates, and a high acceptance of WeChat online payment among the public."

“Okay! When we meet next week, I will try my best to persuade General Manager Liu of the power grid to choose one of the three provinces as the pilot area.” Song Ci nodded, then emphasized the issue he was most concerned about.

"When integrating with the power grid marketing system, there is absolutely no room for error in terms of security and compatibility. Only by making a good start with cooperation with the power grid company can we then negotiate cooperation with other companies such as water utilities, petrochemical companies, mobile companies, and telecommunications companies one by one."

Wu Yi's expression was solemn: "Don't worry, we have adopted multiple verification mechanisms in the security system, and established a bank-level payment security system in the background."

Furthermore, the company has communicated with PICC Property and Casualty Insurance Company Limited, and in the event of transaction risks such as theft or accidental operation, the insurance company will cover the losses, eliminating State Grid's concerns about the security of funds.

"That's good, that's very thoughtful," Song Ci praised.

"Everything is difficult at the beginning. Once we establish a cooperative relationship with the State Grid, the subsequent cooperation with central and state-owned enterprises will be much easier to resolve, and the WeChat smart city plan can be gradually implemented."

"Chairman Song, is there a subsidy for electricity bill payments?"

Song Ci frowned: "To quickly cultivate users' payment habits, subsidies are necessary. Has your department calculated how much funding would be needed if subsidies were implemented?"

"Electricity bills are a high-frequency, essential service, with over 400 million households and businesses nationwide paying their bills once a month. If the subsidy is only 1 yuan per bill, it would require nearly 5 billion yuan over a year."

Considering all factors, subsidies for Song Dynasty poetry are definitely necessary.

We must quickly seize the energy payment scenario before Alipay takes action. If we are unwilling to spend money now, the cost of acquiring users will only be higher once Alipay is connected to the power grid.

After careful consideration, he slowly said, "We will randomly subsidize each user with 1 to 3 yuan for three months to see the effect. You submit a report, and the group will allocate 3 billion yuan."

"Understood." Wu Yi breathed a sigh of relief, fearing that the chairman would be reluctant to part with the billions in subsidies.

Song Ci handed the proposal back: "There are no major problems, but one point needs to be added. I want to emphasize that Tengda is only the provider of payment technology and will absolutely not touch any sensitive information related to electricity usage."

(End of this chapter)