Reinventing the Millennium

Fang Zhuo considers himself and Ni Runfeng to be friends.

Fang Zhuo thinks that he and Mr. Ni have the same pursuit.

But Lao Ni himself didn't think so, so Fang Zhuo paid more attention to the way he communicated with the head of Changhong, trying to make the other party accept it smoothly.

Although Changhong's overseas channels are controlled by Yi Ke, and even though some of Lao Ni's actions are known to him, but now Lao Ni is talking about being a teenager and trying to lead Changhong out of the predicament. Maybe, he may really be because of this company. Having been in charge of a company for decades, he suddenly became desperate.

You must know that this person is also in his sixties, so you have to consider this point.

It would be really difficult for him to retire intentionally or unintentionally.

Therefore, you must pay attention to methods when doing things.

Changhong is now fully switching from plasma to LCD TV. This is not just a matter of technical route. The management represented by Ni Runfeng has undertaken the tasks of abandoning its long-term color tube partners, intervening at the hard-top administrative level, ignoring the opinions of the original technical personnel in the company, etc. and other pressures.

Fang Zhuo can actually understand Lao Ni's current situation, and he can understand the concern for Changhong LCD products behind his words.

Everyone came here like this, as if they had been surrounded by investors and forced to marry, and Lao Ni might have been called into the office by the administrative leaders to reprimand him face to face.

It’s not easy to understand or understand.

But, then again, it’s not easy for you anyway, so it doesn’t matter if you have more, right?

Anyway, you are already at this age, so it doesn't matter if you are a little bit crazy, right?

Embracing the ice core is a long-term success.

"Lao Ni, I will invest US$1 billion in e-commerce next year, and this is one of them."

"The final investment in this e-commerce is far more than US$1 billion, and this is the second one."

"The main category of e-commerce is home appliances and digital products. I know that Changhong still has a lot of inventory to digest. This is the third one."

Fang Zhuo bought new tea for himself and Lao Ni, and slowly talked about the e-commerce plan. The investment figure was a bit exaggerated to boost Lao Ni's confidence.

The road must be walked step by step, and the meal must be eaten one bite at a time.

The initial investment plan is around US$100 million, which will allow the B2C model to have a proper foundation before it can continue to increase its efforts.

But this does fit in well with Changhong. Changhong’s strategic mistakes two years ago resulted in a large number of products piled in the warehouse. Changhong could just rely on the massive publicity of its B2C e-commerce start-up to destock.

Even if there is a slight cost loss in this destocking process, it is still worth it. Otherwise, the products in the warehouse will become increasingly outdated and less valuable.

It can not only make Changhong suffer less long-term pain than short-term pain, but also give the website a reputation for discounts.

It's an obvious win-win.

As expected, Ni Runfeng was shocked when he heard the investment figures, and asked in surprise: "Isn't that the second ice core?"

He knew that Bingxin’s actual investment was claimed to be tens of billions of Chinese dollars, but he didn’t think that the richest man in the mainland could not spend 1 billion US dollars to engage in e-commerce.

If so, such a figure is not only the amount of investment, but also symbolizes Mr. Fang’s determination to do e-commerce.

Once someone like Mr. Fang makes up his mind to do something, it makes people feel powerful.

Ni Runfeng truly felt part of the power. He pondered for a moment and continued to ask: "Is the e-commerce market worth investing so much in?"

"What do you think the Internet era is like?" Fang Zhuo said with a smile, "Embracing the Internet, how can traditional home appliance companies embrace the Internet? This is my opportunity to give Changhong an opportunity to embrace the Internet."

"Next year, domestic C2C should be settled, but the B2C market has not been developed well enough. This is a good time to enter."

"Lao Ni, then you will be able to witness what the real Internet wave is."

"Next year, the number of Internet users in our country will definitely exceed 100 million. Do you know what this concept is?"

Ni Runfeng mused that for traditional home appliance companies like Changhong, it is true that the country and the media are shouting "the Internet is coming" and so on, but there is no real experience at home.

E-commerce, e-commerce, supplement of channels?

He had such a vague concept in his mind.

"Mr. Fang, how much more goods do you think this e-commerce website you built can help companies sell?" Ni Runfeng thought slowly and asked slowly, "I don't quite understand. Although TVs are also divided into high, high and low-end , but even low-end products cost a lot of money. If you look at the pictures on the website and can’t touch them, how can consumers believe them?”

Fang Zhuo said simply: "Changhong has not done well in the past two years, but it is still a well-known brand. Consumers know this. Besides, I am also the richest man in the mainland. As for the price of a TV set for consumers? Short The credibility within a short period of time comes from the brand and my reputation. After a little time, the reputation of the website will naturally increase."

He asked again: "How many TV sets did Changhong sell this year? Not counting overseas ones."

Ni Runfeng gave an estimate of annual sales: "This year it will be about 7 million units."

"Your destocking action has already been taken into account, right?" Fang Zhuo guessed.

Ni Runfeng nodded. The effect of destocking is average, because dealers cannot make profits and have little motivation. Changhong's current decline does not have as strong a constraint on dealers as before.

"Let's use numbers to understand. E-commerce is a channel that can sell 10 million TV sets a year." Fang Zhuo gave a number so that Lao Ni could understand it.

Ni Runfeng smiled.

He really laughed from the bottom of his heart.

"Mr. Fang, that's not necessary. You don't need to exaggerate this number to scare me. Do you want to use the Internet to create a Changhong or TCL?"

Fang Zhuo replied: "Lao Ni, don't believe it. It won't work in a short time. Moreover, the Internet is just a platform, and the quality and price of the product are important factors. But the Internet definitely has this channel capability."

"If there is such a channel, then don't you sanction TCL if you want to sanction TCL? Sanction Skyworth if you want to sanction Skyworth?" Ni Runfeng thought that this would be difficult to achieve. He smiled and said, "Mr. Fang, okay, even if what you say is true, If it doesn’t work in a short time, it will take a long time, and then I won’t be able to see that day.”

Fang Zhuo also smiled: "Old Ni, you can definitely see that day. Remember when you saw the news, you called me to apologize as soon as possible."

Ni Runfeng didn't want to joke with Mr. Fang anymore.

He took two sips of tea and returned to the topic: "Let's talk about this e-commerce, Mr. Fang is willing to give us Changhong a chance. Changhong is definitely willing to give it a try. Even if I don't believe in the Internet, I still believe in Mr. Fang."

"You don't have to believe me, then I'll find Konka. They have a production base in Anhui Province." Fang Zhuo said that he planned to make a strong push for a B2C brand that could open up the business and take both price and after-sales into account.

This involves docking with enterprises, and B2C after-sales reputation is a very important component.

Ni Runfeng thought for a few seconds, and then told Mr. Fang what he was concerned about: "Mr. Fang, the ice cores are not produced yet. That will have to happen next year. The first batch of our LCD products will be rolled off the production line by the end of the year."

"From now until the ice core production capacity is available, this is the time we can coordinate with Philips."

"I believe that other TV chip manufacturers will definitely launch more suitable solutions during this time, which will give us more choices."

Fang Zhuo agreed with this, but he still had to take precautions in advance: "Old Ni, I am determined. I am holding the hope that if foreign manufacturers like Philips are too arrogant to do so, they would rather find domestic IC design companies or small companies. Brand companies design their own solutions.”

As he said this, he looked at Ni Runfeng with a keen eye.

Ni Runfeng was silent for a while and gave a clear statement: "There is no problem with the first batch of LCDs and the inventory can be digested well. Then I am determined to accompany Mr. Fang to reduce Changhong's cost of purchasing chips."

Not because Mr. Fang wants to fill the ice core production capacity, but to drive down chip prices!

This is something beneficial to Changhong.

This is something that the head of Changhong can do openly.

This is something that Chinese TV companies would rather sacrifice short-term interests but pay attention to long-term development.