Entertainment mogul: Starting his business with the internet

Chapter 449 Which is superior and which is inferior?
As dusk fell, the lights inside the CCTV headquarters building gradually came on.

In the VIP lounge behind the "Economic Person of the Year" awards ceremony, Song Ci stood with his hands clasped together.

He bowed deeply to an elderly man with white hair, his voice filled with undisguised respect: "Teacher!"

Jiang Tao, standing beside him, paused slightly, a look of surprise flashing in his eyes: "Chairman Song knows Dean Li?"

This elderly gentleman is none other than Li Yining, a renowned economist with a distinguished reputation both domestically and internationally, and the dean of Peking University's Guanghua School of Management.

Song Ci nodded, his words tinged with nostalgia, and began to recount their shared history: "Your teacher was my economics mentor in college."

“Song Ci, it’s been a long time.” Li Yining looked at the young, handsome, and spirited business leader in front of him, his eyes filled with emotion.

"Seeing you get to where you are today step by step, we old folks are all very happy for you."

He greatly admired the spirit and insight of Song poetry back then, and once hoped that Song poetry could stay at the university so that they could work together to delve into academic research.

Unexpectedly, after graduation, this student plunged headlong into the internet wave and, in just a few years, single-handedly created a world-class business giant.

Although I failed to retain this promising talent in academia, it also proved my judgment from another perspective: Song poetry is indeed a rough gem that can shine no matter where it is.

"I really failed my teacher's expectations back then." A hint of apology flashed across Song Ci's face. "Compared to pure academic research, I still prefer the practice and adventure in the business world."

After a pause, she changed the subject, "What brings you to CCTV today?"

Jiang Tao, standing nearby, explained at the opportune moment: "The 'disequilibrium theory' proposed by Mr. Li is of great significance for promoting the shareholding reform of state-owned enterprises and the development of the private economy, and has also profoundly influenced the country's economic transformation."

This time, he's here to receive the Lifetime Achievement Award at the annual economic gala.

Song Ci immediately cupped his hands in congratulations: "Congratulations, teacher! You deserve this award, it is truly what everyone expected."

"It's just the organization's recognition of my small contributions to the economic field over the years."

Li Yining waved his hand, his tone indifferent. He was already eighty-three years old and had long since become indifferent to such empty fame and fortune.

Song Ci inquired a few more questions about the teacher's health before turning and heading to the adjacent lounge.

Those seated inside were all award nominees and presenters, all renowned business tycoons.

As soon as Song Ci stepped in, he saw Lei Jun sitting next to Dong Mingzhu, the chairman of Gree Group, speaking with great enthusiasm: "Sister Dong, five years from now, Xiaomi's revenue will definitely surpass Gree's."

Dong Mingzhu, a businesswoman known for her pragmatism and competence, glanced at Lei Jun and thought his words were a bit far-fetched, so she didn't respond, her expression showing a hint of disapproval.

Several CEOs watched the two "confrontation" with great interest, their faces beaming with amusement.

Wang Jianlin, the CEO of Wanda Group, caught a glimpse of Song Ci walking in out of the corner of his eye and quickly stood up to greet him: "Chairman Song is here."

Upon hearing this, everyone dared not be negligent and stood up to greet them.

Although everyone here is older than Song Ci, he is Asia's richest man and a figure who can reach the ears of the emperor. He can be called a leader in the current business world, and this weight is enough to make everyone treat him with great respect.

"Chairman Song!" "Mr. Song!"

Upon seeing this, Song Ci quickly stepped forward and shook hands with Wang Jianlin: "Chairman Wang!"

Wang Jianlin, beaming, stepped aside to introduce him: "Chairman Song, let me introduce you:"

These are Ms. Dong Mingzhu, Chairwoman of Gree Group; Mr. Lin Zuoming, Chairman of China Aviation Industry Corporation; and Mr. Lu Yimin, General Manager of China Unicom. Mr. Lei Jun of Xiaomi is an old friend of yours.

"President Dong, President Lin." Song Ci shook hands with Dong Mingzhu and Lin Zuoming to greet them. It was their first meeting, and their expressions were polite and solemn.

He then looked at Lu Yimin, the CEO of China Unicom, and said with a hint of a joke, "Mr. Lu, you look radiant today. It seems you'll definitely be able to take home a golden cup."

Lu Yimin laughed heartily, beaming with joy: "Thank you for your kind words, Chairman Song! It's only been a few days since I last saw you, and you look even more handsome than before. It's true that good things always make people feel refreshed."

Just a few days ago, Tenda Technology Group and China Unicom signed a strategic cooperation agreement on opening a WeChat call bill payment channel. The two companies are "acquaintances" who have just dealt with each other.

After exchanging a few jokes, Song Ci shook hands with Lei Jun again.

The two are old friends who met just last night, and everything was understood without words.

After exchanging pleasantries for a while, everyone sat down again. Song Ci asked with a smile, "Just now, it seemed like President Lei and President Dong were debating something. Were they having a great time?"

Lu Yimin explained from the side: "Just now, Chairman Lei and Chairman Dong were arguing about the business models of Xiaomi and Gree, and which one is better."

Wang Jianlin chimed in, "We were just waiting to hear your insightful comments when Chairman Song arrived. As a leading figure in the internet industry, you'd be perfect to offer your perspectives and insights."

Song Ci smiled faintly: "No rush, it would be less interesting to discuss it now. The business models of Xiaomi and Gree will definitely be mentioned on stage later, so we can talk about them then."

According to the new rules for the "Economic Person of the Year" selection, Lei Jun and Dong Mingzhu have both been selected.

The two companies represent completely different business paths, and when accepting awards, the host will often ask which one is better.

“Yes, we can debate it on stage later.” “Chairman Song is absolutely right.”

As everyone chatted and laughed, Song Ci suddenly remembered something, turned slightly to Wang Jianlin, and whispered, "Mr. Wang, there's something I want to discuss with you."

"Director Song, please speak."

"Mr. Wang, I'd like to buy some shops in Wanda Plaza. They need to be on the first floor of shopping malls in various locations, in a medium to high-end location, with an area of ​​60 to 80 square meters."

"Buy shops?" Wang Jianlin was taken aback, looking puzzled. He didn't believe Song Ci was doing this as an investment.

Purchasing a large number of shops on the first floor of a shopping mall is clearly for some kind of business plan, but Tengda Group is an internet company, so why would it buy shops?
"Mr. Wang, would you be willing to part with it?" Song Ci's move was actually paving the way for the future launch and sales of Dewen's new energy vehicles.

Shopping malls are among the most densely populated places in a city, especially the first floor of high-end shopping centers like Wanda Plaza, which has an extremely high daily customer flow.

Showcasing and selling new energy vehicles here naturally provides brands with high-quality "advertising space".

Consumers can conveniently look at and test drive cars while shopping at the mall, without having to go to a 4S store, which is quick and hassle-free.

Furthermore, the ground floor of shopping malls is usually a gathering place for luxury, technology, or trendy brands. After Devon New Energy Vehicles moves in, it can leverage this prime location to convey a high-end and technological brand image.

"Mr. Song, you flatter me," Wang Jianlin replied politely. "They're just a few shops. I'll give you a discount later."

The plan was successfully completed, and Song Ci's smile deepened: "Thank you, Mr. Wang."

After a few more casual words, the "Economic Person of the Year" awards ceremony was approaching, and everyone headed to the studio.

In the main hall, crystal chandeliers cast warm, golden beams of light onto the red carpet, creating a vibrant and enthusiastic atmosphere. At this moment, eight of the ten "Economic Figures of the Year" have been announced.

The host, Chen Weihong, stood in the center of the stage and announced in a clear and resonant voice: "Please welcome the last group of award presenters with applause: Mr. Wang Jianlin, Chairman of Wanda Group, and Mr. Song Ci, Chairman of Tengda Technology Group."

Song Ci, composed and measured, took the stage with Wang Jianlin.

After a brief interaction guided by the host, the two drew the list of winners from an envelope and read aloud: "The winners of the 'Economic Person of the Year' award are Lei Jun and Dong Mingzhu. Congratulations to the two of you."

The two walked onto the stage with beaming smiles and high spirits, and the electronic screen in the venue played the reasons for their award.

Lei Jun: Chairman and CEO of Xiaomi Corporation, who pioneered the innovative model of internet hardware and increased Xiaomi's monthly mobile phone sales from 1 to 300 million units.

Dong Mingzhu: Chairwoman of Gree Group, who led Gree to become a leading global air conditioning technology company.

After the awards ceremony, Song Ci and Wang Jianlin stepped aside, giving the spotlight to the two winners.

Lei Jun, dressed in a dark gray suit and a bright red bow tie, smiled broadly. Dong Mingzhu, in a deep purple suit, looked radiant.

Host Chen Weihong asked with a smile, "Mr. Song, Mr. Wang, if you had to describe Ms. Dong Mingzhu's business model in one word, which one would you choose?"

After several rounds of polite refusals, Wang Jianlin spoke first: "Physical entities."

“The real economy and industry.” Chen Weihong nodded in agreement, then turned to Song Ci, “How would you describe Mr. Lei Jun’s model?”

Song Dynasty poetry is unhurried: "light assets".

Upon hearing this, Wang Jianlin felt a sense of sudden enlightenment and firmly remembered the concept of "asset-light".

Chen Weihong, seemingly wanting to add some excitement, continued: "The differences between Xiaomi and Gree are actually quite distinct: in terms of the number of factories, Xiaomi has 0 and Gree has 9."
员工数量，小米为0、格力超7万；专卖店、小米是0、格力是3万多家。而营业总收入，小米300亿、格力1000亿。”

This comparison left everyone speechless: Xiaomi is a "three-no" company with no factories, no exclusive stores, and even very few employees.

Thanks to the internet-based business model pioneered by Lei Jun, the company quickly achieved a third of the revenue of established home appliance companies like Gree, which is truly astonishing.

The host smiled slightly and looked at Song Ci: "Mr. Song, Lei Jun's achievement of 0 billion yuan in revenue from scratch seems to me like an innovation of 'virtual plus virtual'."

As the head of a world-class internet company, do you agree with this statement?

"Don't jump to conclusions if you don't understand." Song Ci's expression was calm, and his tone was indifferent.

He had already noticed the subtle difference between the host's way of addressing "General Manager Dong" and "Lei Jun," and thought to himself: Ten years from now, let's see if you still dare to speak to Lei Jun in this manner.

Upon hearing this, the host paused instantly, a hint of unease flashing across his face.

Holding the microphone, Song Ci spoke eloquently: "Xiaomi's model focuses on the Internet's asset-light ecosystem. Although it has no factories or channels, it relies on the world's top supply chain and e-commerce direct sales model."

Significantly reducing intermediate costs enabled rapid expansion and explosive revenue growth. Moreover, Xiaomi doesn't rely solely on virtual operations; its technical team and R&D achievements are undeniable.

The host seized the opportunity and quickly followed up with, "So, you have a better view of the Xiaomi model?"

Before Song Ci could continue the conversation, he changed the subject: "The Gree model is a prime example of technology-driven, asset-heavy manufacturing."

Gree controls the entire industry chain and, leveraging its technological barriers, holds a leading global position in high-end markets such as central air conditioning. Coupled with its extensive distribution network, its profitability and brand trust are both top-notch.

"Chairman Song hit the nail on the head!" Dong Mingzhu couldn't help but exclaim in admiration.

She had assumed that Song Ci, as an internet giant, would favor Lei Jun, but she never expected that the other party could so accurately extract Gree's core advantages.

The host, not daring to challenge Song Ci, turned the conversation to Lei Jun instead: "Lei Jun, do you have confidence?"

Years later, all the previous items will still be 000, but the last item's revenue will double.

Lei Jun remained calm and composed, replying, "I think it's entirely possible. As Chairman Song said, the core advantage of Xiaomi's model lies in its explosive revenue growth."

The host pressed on: "Where does this confidence come from?"

Faced with hidden doubts and difficulties, Lei Jun was fearless and responded directly and humbly: "Xiaomi does not have its own factories, but it can integrate the world's top manufacturing resources."

Without physical channels and retail stores, they can achieve higher operational efficiency by selling directly through e-commerce, saving on channel, store and sales costs.

We focus on product development and user communication. By the way, to clarify, Xiaomi is not a "virtual entity"; we have 2500 employees dedicated to user service and a 1400-person R&D team deeply involved in technology.

"Mr. Lei Jun has just elaborated on his confidence in his own model..." The host was about to interject when Dong Mingzhu interrupted him.

"How many people here are using Xiaomi phones?" Dong Mingzhu's gaze swept across the audience, attempting to refute the Xiaomi myth with facts. "Two? Three? Anyone else?"

Three fingers, sparse and forlorn, were raised alone at the table.

Lei Jun smiled and retorted: "This just shows that our market potential is huge, and there are still 99% of users waiting for us to serve them."

Song Ci secretly admired: No wonder he is called "Lei Jun" (Lei Jobs). With just one sentence, he cleverly turned the tide of the battle, and the offensive and defensive positions were instantly reversed.

Dong Mingzhu scoffed: "In the mobile phone industry, who is the real boss?"

The host quickly interjected, "Are you implying that Xiaomi certainly can't be considered the industry leader?"

“At least not now.” Dong Mingzhu said firmly, taking a half-step closer. “I’m asking you, Lei Jun, if all the factories in the world shut down, where will your cell phone come from?”

Without physical manufacturing, the internet business model is nothing but a castle in the air! Therefore, when discussing achievements, we must not forget the supporters behind them.

Lei Jun responded passionately: "I think Mr. Dong's point of view is slightly biased. As I just said, Xiaomi is able to integrate the world's best factories and supply chain resources."

"What if the factory doesn't manufacture for you?" Dong Mingzhu pressed.

“Then I will look for other factories,” Lei Jun said calmly. “Xiaomi’s current partners are Foxconn and Inventec…”

"I mean, what will you do if all the factories refuse to work for you?" Dong Mingzhu pressed on relentlessly.

Lei Jun continued to explain: "Commercial manufacturing has evolved to the point where it emphasizes specialization..."

Song Ci shook his head almost imperceptibly, sighed softly, and Dong Mingzhu became anxious!

Business competition is not child's play. If there's no Foxconn, there's Inventec; if there's no Inventec, there's ASUS. As long as there's market demand, there will always be contract manufacturers willing to cooperate.

(End of this chapter)