Reborn in 08, a heretical cultivator starting a business

Chapter 129: Seizing the opportunity during the financial crisis and hijacking League of Legends!
Riot Games was founded in 2006 and does not yet have a finished game, so its valuation is at its lowest point.

In addition, with the outbreak of the financial crisis, not much capital was willing to invest in a free game that was very expensive but had no future.

Therefore, Riot Games is currently valued at only $3580 million, less than 2.5 million RMB.

That's right, it's that cheap.

This is absolutely the best opportunity to buy at the bottom.

When League of Legends goes into open beta next year, its valuation will soar to 8 million RMB. In 2011 it was 30 billion RMB, in 2015 it was 550 billion+ RMB, and then it will be 1000 billion and 1400 billion RMB.

With a current valuation of only 2.5 million, it's a steal.

Don't miss it!
Wang Junshan made up his mind to intercept Tencent and buy up Fenlius companies at rock-bottom prices, which was his first move during the financial crisis!
As for Tencent waiting until after the financial crisis to buy Vipshop at a low price...

That's just a dream.

Even during the financial crisis, Vipshop and U-Tuan Technology were able to achieve growth against the trend!

Especially with the acquisition of Wanwang at the end of the year, which will bring 20 small and medium-sized enterprises to Vipshop and Youtuan.com to become brand customers and suppliers, Vipshop and Youtuan.com will inevitably experience a major boom!
It won't be a matter of 10 billion anymore.

Even 20 billion is not negotiable!
Wang Junshan is well aware that many of today's small and medium-sized enterprises will become major brands in the future.

You can make precise selections and invest in the best options!
For those with average potential, we will develop them into YouTuan Factory Stores and launch them directly on YouTuan Group Buying.

Those with outstanding potential will receive angel round investment and strong support to be developed into Vipshop brand stores!

Or they could operate their own brands, similar to Sam's Club's own brands or JD.com's own brands!
But the most important thing is to invest in Riot Games, the parent company of League of Legends!
A return of hundreds of times, a value of hundreds of billions—there's no room for ambiguity!
“Huaijin, don’t worry about the financial crisis. Let your dad scale back his business and take a break. We can entrust some of the testing facilities to your family when we start building them later,” Wang Junshan said.

"Thank you, boss, thank you so much." Shen Huaijin was extremely grateful.

When a financial crisis breaks out, it's definitely difficult to get projects, and even if you do get them, it's hard to do them well, and you can't get paid even if you do.

This is a disaster for the Shen family.

But with Wang Junshan's reassurance, that was no longer a problem.

Putting everything else aside, just building a few testing facilities is a huge project!

That's enough for the Shen family to weather the economic crisis.

"Also, send out a notice to convene a high-level meeting."

"Yes!"

Soon, everyone arrived at the conference room.

The financial crisis broke out, and everything changed.

Basically, all major companies held emergency meetings to discuss countermeasures.

However, everyone's expressions were somewhat solemn, and the atmosphere in the meeting room was rather oppressive.

Wang Junshan laughed and said, "A loss may turn out to be a blessing in disguise."

"The outbreak of a financial crisis is both a bad thing and a good thing. It is a crisis, but also an opportunity!"

"Those who have nothing to lose are not afraid of those who have something to lose."

"During the financial crisis, the most severely affected are the giants, the BAT (Baidu, Alibaba, Tencent) companies. We, on the other hand, are the least affected, so there's nothing to worry about."

Upon hearing this, everyone relaxed considerably.

"Moreover, our business has actually grown even more despite the financial crisis."

Don't you think so?

"This..." Everyone fell silent, finding it unbelievable.

Wang Junshan laughed and said, "The financial crisis means that people are pessimistic about the future, which will lead to lower incomes and a downgrade in consumption, right?"

"Yes."

"While some people are experiencing a downgrade in consumption, they don't want to lower their quality of life. So, Vipshop's brand discounts allow them to wear designer brands for less money and maintain their quality of life. Isn't that the best option?"

"???" Upon hearing this, everyone was taken aback at first, but then their faces lit up with joy:

"That's right. You can't afford the big brands that were originally priced at full price now, but you can come to Vipshop and buy them at 30% or 50% off."

"So, the more people downgrade their consumption, the more advantageous Vipshop becomes?"

"That's right. Many people are used to wearing designer brands, and they can't accept wearing no-name brands. But with the financial crisis, they can't afford to spend a lot, so they can only buy brand discounts on Vipshop!"

Wang Junshan laughed and said, "This is our opportunity at Vipshop. We focus on brand discounts, allowing you to wear designer brands for less money!"

"As for YouTuan International, the impact is limited. Maternal and infant products are a necessity. Even if Sanniu goes bankrupt, people will still buy as usual. We are the largest platform, offering group-buying discounts at the lowest prices, which is also the most advantageous."

“YouTuan’s campus group buying is also an opportunity.”

"With the outbreak of the financial crisis, parents will find it harder to earn money, and students' living expenses will also be reduced."

“In the past, some students didn’t care that things were a little more expensive in supermarkets.”

“But now, we have to compare prices. Even if we have to wait until tomorrow to use it, we have to buy it through group buying. It’s cheaper here.”

"Under these circumstances, U-Tuan Group Buying has been able to maintain its revenue, and even achieve growth against the trend!"

"Whether it's the high quality and low price of YouTuan Group Buying, the brand discounts of Vipshop, or the group-buying special offers of YouTuan International, the core is 'high quality and low price,' which perfectly matches the consumption downgrade under the background of the financial crisis."

This is the biggest opportunity ever!

"Everyone should be optimistic and think about how to promote WeChat to the greatest extent possible, so that Vipshop, Ugroup, and Ugroup International can have more users and more revenue!"

Upon hearing this, everyone suddenly understood.

Yes, with the trend of consumption downgrading, Vipshop and Ugroup are the best choices.

Get big results with little money!
perfect.

And WeChat is the core of everything.

All of these are available on the WeChat client!

"Chairman, we can increase our marketing investment and directly hire a spokesperson for WeChat to run advertisements!"

“Hmm, that’s a good idea.” Wang Junshan agreed: “When the economic crisis broke out, celebrity endorsement fees also plummeted by 30%, or even 50%.”

More importantly, endorsement fees are incredibly cheap these days!
For example, Zhang Ziyi's endorsement fee was 1400 million last year, but with the outbreak of the financial crisis, 800 million is not a problem.

Jay Chou's salary was 1200 million last year, but it's negotiable for 700 million now.

Andy Lau earned 1000 million last year, and now he earns 600 million.

The two ice creams, last year they earned 800 million, now 500 million is no problem.

Xun Ge, 700 million last year, now 430 million.

Liu Tianxian earned 600 million last year and 400 million now.

Hu Xiaoyao earned 300 million last year and 200 million this year.

The three beauties from the Legend of Sword and Fairy series cost 150-200 million last year, and are now worth 80-150 million.

They can cut the price again by the end of the year.

But Wang Junshan is in a hurry to use a spokesperson, and he can't wait until the end of the year.

"Who do you all think is suitable to be the spokesperson for our WeChat?" Wang Junshan asked.

After a brief moment of thought, everyone spoke up:
“Andy Lau is a good fit. He has a strong international influence, and his endorsement fee has dropped recently.”

"Jay Chou is also good; he has a lot of influence among young people."

"Shuangbing is a better deal. With the financial crisis, 1000 million can get you a two-year contract!"

"Our Vipshop has a large number of female consumers, who are the main consumers, making male idols a good fit. Hu Xiaoyao is a good example; you can sign him for two years for 400 million!"

……

Everyone chimed in with their own opinions, and Wang Junshan fell into deep thought.

We need to find someone who won't fail, has a high cost-performance ratio, and has potential for future development. Hu Xiaoyao would be a good example.

Currently, endorsement fees are dirt cheap, and once "Chinese Paladin 3" airs next year, it will become an instant hit.

The Shushan communicator from Chinese Paladin 3 could easily be integrated into WeChat.

Once the show airs, the accompanying WeChat ads will definitely make it a huge hit!

Of course, the three beauties from the Legend of Sword and Fairy series are also good, but even combined they are not as expensive as Hu Xiaoyao alone.

There's no way around it, the three beauties of Chinese Paladin 3 became famous because of Chinese Paladin 3!

One WeChat account, one Vipshop account, and one YouTuan account – perfect!

"Let's all think about it again, discuss it, and then submit it."

Wang Junshan then changed the subject: "With the outbreak of the financial crisis, Tencent will be unable to invest for the time being."

"But we have plenty of cash in our accounts and a very good cash flow. We make tens of millions in profit every day, so there's nothing to worry about."

"You could say that the financial crisis is a crisis for others, but for us it's an opportunity!"

"Future technologies are designed to thrive even during financial crises!"

"Wow!"

Applause resounded throughout the venue, putting everyone at ease.

After this period of development, Wang Junshan's repeated outrageous actions have led everyone to regard him as a god!

If Wang Junshan says there's no problem, then there's definitely no problem.

Wang Junshan said that if we can break out against the wind, then future technology will definitely be able to grow against the trend!

"Everyone should do their job. Those who need to connect with brands should do so, and those who need to expand the market should continue to do so. We should just proceed step by step!"

"The meeting is dismissed!"

After everyone left, I breathed a sigh of relief, comforted the department staff, conveyed Wang Junshan's spirit, and everyone went about their duties to continue moving forward.

Wang Junshan then looked at the CFO, Lu Yuyao: "How much money is in the account now?"

"We've set aside 3 million for land acquisition for the ten major warehouses, and we still have 4 million left!"

In the past ten days, Future Technology has earned another 3.5 million!
“Great, there’s no rush to acquire land for warehousing. We can use the 7 million yuan for investment first.”

Wang Junshan laughed and said, "Let's establish a Future Technology Investment Department immediately. We need to take advantage of the financial crisis, when all assets have shrunk significantly, to buy up quality assets and invest in excellent companies!"

"What about acquiring the land?" Lu Yuyao asked with some concern.

Wang Junshan laughed: "The financial crisis has already broken out, and we're going to invest in building a large logistics warehouse. They still have the nerve to ask for money to buy land?"

"???"

Lu Yuyao was speechless.

Wang Junshan smiled faintly:
"There's no need to rush into building large warehouses. We'll wait until the end of October or November, when the economic crisis will have the most severe impact, before we make our move."

"We don't need to limit ourselves to those ten cities. We can just hold open bidding and choose whichever city offers land and the best policies to settle down there!"

"This can work?" Lu Yuyao asked in shock.

"It wasn't possible before, but it's negotiable now. In two months, when the global economy reaches its darkest point, there won't even be a need for further discussion. Large projects and land giveaways will be standard practice!"

Wang Junshan laughed and said, "When the time comes, we'll just say that Future Technology will invest 20 billion yuan to build 10 large warehouses of 10 square meters each across the country."

“If you exaggerate a bit, the local areas will get excited, and there will be a scramble between cities. The different districts within a city will also be scrambling to compete.”

"They'll offer tax breaks, land, and interest-free loans to get us to settle in their jurisdiction!"

"I see." Lu Yuyao nodded, feeling enlightened.

In the past, doing business required companies to pay homage to influential figures and make connections at all levels.

Wang Junshan, on the other hand, did the opposite, waiting for local competition to see who could offer the most preferential treatment.

That was a really cool move!
However, given the backdrop of the financial crisis, it is indeed possible!

All I can say is that the current global financial crisis has changed everything!

"President Tang, continue to push forward with the negotiations with those four people. With the economic crisis, their situation won't improve much. Layoffs are unlikely, but salary reductions are inevitable. However, we won't reduce salaries; we'll offer them high pay and better career development!"

"it is good!"

"The investment department was quickly established, and someone was assigned to contact key companies to see if they needed money and what their valuation was."

Wang Junshan recalls that Riot Games was always short of money.

Especially after the financial crisis broke out, it was impossible to attract investment.

A new company with no other works is making a free game and it's asking for a valuation of over 200 million RMB!
Even without a financial crisis, not many people would be willing to invest.

Moreover, with the financial crisis, even fewer people are investing.

Tencent wasn't a complete idiot in its previous life. It waited until the closed beta of League of Legends ended at the end of September and conducted internal evaluations, deeming it promising, before investing $8 million on October 16th!
Why didn't you vote before?
The closed beta test hasn't ended, so we can't see the results, the future prospects, or even guarantee whether it will be introduced to China. We don't dare to invest!

This was Wang Junshan's opportunity.

We don't need to wait until the closed beta ends at the end of the month to determine whether it has potential.

Wang Junshan could intercept Tencent's bid now and invest ahead of time!
At the same time, securing the domestic distribution rights for "League of Legends" would be perfect!

By the time the Chinese version was launched in 2011, Future Tech had already grown significantly, and WeChat had a large user base—perfect!
Is Tencent strategically scaling back and not investing in Vipshop?

Then don't invest in Riot Games either.

I voted for you!

And you have to be quick, you have to throw it now!

Even if it costs more money, it doesn't matter.

Once League of Legends and WeChat are strategically linked, WeChat's user base will be guaranteed!

Headquarters of the campus network.

"Chairman, good news! The financial crisis has broken out. Alibaba arrived at Vipshop's door, but turned back before even going in."

"Tencent went even further, without even leaving the airport, they flew back to Shenzhen."

"Hahaha!"

Sun Yizhou laughed too: "Very good, let Wang Junshan show off. He valued it at 300 billion, now look what happened! With the financial crisis, no one can even invest 150 billion!"

Dai Hede strongly agreed: "Not only that, their businesses will shrink drastically in the future. I estimate that the transaction volume and profits of YouTuan.com and Vipshop will be halved. Wang Junshan's good days are over!"

"That's right. If it were too easy for him to reach maturity, it would be a bad thing."

Sun Yizhou laughed and said, "Vipshop is really something. It was only established for two days when the financial crisis broke out. I can only say it's just bad luck, hahaha."

Dai Hede wholeheartedly agreed: "I originally planned to send someone to Vipshop's headquarters to pour water on their money trees. But before I could even do that, they were ruined!"

"Hahaha." Everyone in the room laughed.

"Let's develop 'Campus Farm' as soon as possible, and also campus e-commerce, we have to do both."

"Once we've got this sorted out, Vipshop might be finished, which will be the perfect opportunity for us to make a big splash."

“Okay!” Dai Hede said, his expression extremely complicated.

"School Farm"?
Reverse engineering?

It would be good if it could be launched by the end of the year.

The urge to find a new job is growing stronger.

But with the financial crisis already underway, finding a job isn't so easy.
Sigh, what a worry!
(End of this chapter)