Top of the big era

Developed countries and regions around the world basically have a relatively similar environment, ranging from capital, users, policies, systems, cultural openness, etc.

However, there are two countries that are different.

One is Japan and the other is South Korea.

South Korea is even more special, with stronger xenophobic sentiments. Fortunately, Zhou Buqi has already found an agent and indirectly enters South Korea's Internet market through a controlled Korean company.

Japan is relatively easy, and Ziweixing can go straight to the end.

This is very important!

You know, European and American countries such as the United States, Canada, Germany, France, Sweden, Finland, etc. all advocate diversification. Basically, all Internet companies in the world can participate and compete.

Japan is different. The local cultural environment is very special. Although they are learning from Europe and the United States, the traditional Confucian concepts are very strong. This has caused many Silicon Valley giants to encounter acclimatization when they come.

The current core hub of the Internet industry in the Japanese market is Yahoo Japan. This is a Japanese company founded by Masayoshi Son in the early years and borrowed the brand, technology and model of Yahoo in the United States.

The influence is very large and the business is complex, covering almost every aspect of the Internet industry.

If Zhou Buqi really has a chance to get 35% of Yahoo Japan's shares from Yahoo, it will be equivalent to allowing Ziweixing's business in Japan to take root in the local market to the deepest level.

Among the four major markets in the world, the United States, Europe, China and Japan, at this stage, Japan’s market size is even larger than that of China. Especially the advertising market, which is second only to the United States.

Other markets are very competitive.

Only the Japanese market can approach monopoly control.

Ziweixing's main profit model is advertising.

However, the advertising model has a drawback. On the one hand, if the product is good, it also needs the approval of advertisers, who can then place ads.

Just like Yahoo.

The reason why CEO Carol Bartz was fired a few months ago was because during her time at the helm, the number of advertisers had decreased and they no longer came to place ads on Yahoo.

Zhou Buqi answered this, "Several Ziweixing products have performed quite well in the Japanese market, but there is one indicator that is relatively poor, which is the ratio of traffic to placement for advertisers."

This is a saying within Ziweixing. Boss Ma didn’t quite understand, “What does it mean?”

"It's the degree of attraction to advertisers." Zhou Buqi did not hide anything and revealed the secret very frankly, "I haven't seen the data for the past few months. In the first three quarters, Ziweixing's advertising revenue in Japan was US$1.35 billion. …”

Boss Ma was stunned, his voice changed a bit, and he interrupted him abruptly, "How much... how much? 1.35 billion? Is it US dollars or Chinese coins?"

Zhou Buqi said with a smile: "1.35 billion U.S. dollars, what's that? The Japanese market is the most profitable market for Ziweixing. This year, the net profit created by this market will reach 650 million to 700 million U.S. dollars."

Boss Ma said angrily: "Then why are you still interested in Yahoo Japan's shares? This has already taken off!"

Zhou Buqi said: "Don't worry, listen to me. The current total scale of Internet advertising in the Japanese market is about 7.5 billion U.S. dollars. Based on the market estimates in the first three quarters, Yahoo Japan can get 3 billion U.S. dollars." Ziweixing's advertising revenue is only about half of Yahoo Japan's. However, Ziweixing has many products, including browsers, mobile assistants, social tools, photo editing software, etc. The total traffic combined is more than five times that of Yahoo Japan. . But the advertising revenue is only half of theirs. It’s completely disproportionate.”

Boss Ma is an expert and is not easily gullible. "The nature of the product is different, right? The portal form of Yahoo makes it easier to promote advertisements. No matter how good the browser is, what kind of advertisements can there be?"

Zhou Buqi said: "But don't forget, Ziweixing also has YikYak, which is currently the most popular social product in the Japanese market."

Boss Ma said "Yeah", "I know, it's a product like Twitter and Weibo."

Zhou Buqi said: "Yes, if it is the domestic or European and American markets, the product is still in the growth stage, so advertising must be appropriate and not too much. But the Japanese market is special. YikYak has entered a mature stage and can be consumed in large quantities. Advertising orders are in. Based on the advertising traffic and delivery ratio in the United States, YikYak’s advertising revenue in the Japanese market this year should reach US$1.6 billion, while Yahoo Japan’s advertising revenue is only US$2.2 billion.”

After a pause, Zhou Buqi continued: "Just like Yahoo, Yahoo's biggest crisis now is that they have lost the favor of advertisers. The traffic is still very high, but they have been abandoned by the advertising market, and advertisers have gone away. Let’s place ads on Facebook. In fact, at present, the traffic of Yahoo and Facebook is not much different, but Yahoo’s advertising revenue is only one-quarter of Facebook’s. This is based on the premise that Facebook controls the amount of advertising for the sake of product experience. Woolen cloth."

Boss Ma understood what he meant and said in a deep voice: "Ziweixing is not popular with advertisers in Japan?"

Zhou Buqi said with a smile: "It's not just Ziweixing, but also Google. In Japan's search market, Google's share is about half of Yahoo Japan's, but its advertising fee is only a quarter of Yahoo Japan's. Including Amazon, Beijing Taobao's external advertising is far inferior to that of the local Rakuten Market."

Boss Ma suddenly understood and finally understood the main motivation behind this kid's game, "The exclusive nature of the Japanese market!"

Zhou Buqi said: "Yes, exclusivity. Under the same circumstances, advertisers prefer to advertise on local websites. Even if the advertising spaces of Ziweixing, Google, and Amazon seem to be more affordable, advertisers still prefer Willing to buy local advertising space.”

It's like going shopping in a Japanese supermarket.

I found that the price gap between domestically produced and imported products is very large.

A bottle of local soy sauce may retail for 2,000 yen; a bottle of foreign soy sauce may retail for only 200 yen.

In fact, the quality is almost the same, but consumers just like to buy domestic products, and only foreigners living in Japan will buy high-quality and low-price imported products.

It’s similar in South Korea. Korean beef is so expensive because the locals are rushing to buy local beef instead of buying low-priced beef imported from foreign countries.

With the development of the domestic economy, the promotion of traditional culture, and the improvement of national self-confidence, a similar situation will inevitably occur. Despite the huge contradictions and constant conflicts between China, Japan and South Korea, the cultural essence is actually the same, which is Confucianism and square characters that have been passed down for thousands of years.

Boss Ma was very emotional and felt that this guy was really good, "So you have to take advantage of Yahoo Japan's local brand and appeal."

Zhou Buqi said: "Yes, I told Sun Zhengyi before that we would promote the merger of the advertising systems of Yahoo Japan and Ziweixing to create a large middle platform... You know the middle platform, right? It is a model invented by me. ."

"Um."

"I originally wanted to cooperate with both parties to build a large and medium-sized advertising system. Yahoo Japan will provide sales and half of the operations, and Ziweixing will provide the technology and the other half of the operations."

"Do you think people are stupid?"

Boss Ma couldn't help but laugh. He felt that this kid was really whimsical. If he wanted to deceive Son, he would have to use some clever means. This was too straightforward.

If Yahoo Japan and Ziweixing really cooperate to build a large and medium-sized advertising system... they have to be prioritized, right? No matter in terms of technology, operations, or employees' work enthusiasm and work efficiency, there is no doubt that Ziweixing has the upper hand.

The only advantage of Yahoo Japan is this localized brand.

Attract advertisers through this localized brand.

When the time comes, for this kind of cooperative advertising platform, Ziwei Star will be Lizi, and Yahoo Japan will be Mianzi... It will be difficult for Yahoo Japan to take the initiative in this business.

However, if Ziweixing really gets the 35% stake in Yahoo Japan from Yahoo, it will be different. Ziweixing is the second largest shareholder of Yahoo Japan.

The two parties are a family.

In addition, SoftBank is also a minority shareholder of MSI, and the in-depth strategic cooperation between the two parties will naturally deepen and strengthen. For the Japanese market, Ziweixing can use the shell of Yahoo Japan to change from an "outsider" to a "local" and get more advertising orders.

Zhou Buqi said: "So, this time against Yahoo, I want to cooperate with you, not with Masayoshi Son. I don't want Masayoshi Son to take back the 35% of the shares. You take back the shares of Alibaba, I'm going to get shares of Yahoo Japan. Strategic significance is more important than making money."

"It makes sense, it should be like this." Boss Ma was convinced, and then laughed and scolded, "What a smart boy! So you are waiting for me here!"

Zhou Buqi continued: "In fact, not only the Japanese market, but also the American market has this meaning."

"Yahoo?"

Boss Ma raised his eyebrows with a hint of questioning.

The U.S. market is different from the Japanese market. This is a purely capital environment with no national sentiments. The market only looks at the market, and only looks at high quality and low prices.

As long as Ziweixing's products are good and traffic is high, there will be a steady stream of advertisers, and they won't care whether you are an outsider or one of our own. This is a country of immigrants. Without looking at your passport, no one can tell whether you are a foreigner or an American.

Zhou Buqi said: "From a market perspective, there is certainly no such strategic significance. However, from a policy and Silicon Valley perspective, a well-known iconic American Internet company like Yahoo will be more likely to attract people from all walks of life." Resonance. What is Ziweixing's business in the United States? I ask you, you can't tell clearly. But if Ziweixing owns Yahoo, it will have more symbolic meaning in terms of popularity and branding."

Boss Ma was silent for a long time, and then said slowly: "What you said makes sense, and I will try my best to help. However, this matter is too complicated. Please wait while I go to the United States. Let's meet and talk. There is a commotion in Yahoo's board of directors. It’s a mess, and once Yang Zhiyuan really wins the agency dispute, it will be a big trouble!”