"Welcome to Star Technology."
Lin Chen stood up and shook hands with Huang Zheng.
"I'll acquire Ouku.com for 15 million. You can come to Xingchen Technology as the director of the e-commerce department, and then you can bring your original team to reform Ouku.com according to the model we discussed before. What do you think?"
"No problem. It seems Mr. Lin knows Ouku.com quite well. I had someone evaluate it before, and Ouku.com is only worth about 2 million US dollars, which is about the same as the price you gave. However, Mr. Lin, that's not important. Let's continue with our previous topic."
"Haha, okay. Mr. Huang, do you know about the product life cycle?"
"Huh?" Huang Zheng looked bewildered.
Lin Chen stopped keeping him in suspense and continued, "The product life cycle is divided into four stages: introduction, growth, saturation, and decline. For example, when a pair of sneakers is first launched, it is called the introduction stage. This is the period when the quantity is the smallest and the price is the most expensive. You may even need to pay extra to buy it, and it may only be available in department stores in big cities."
"Once manufacturers have fully stocked the market and specialty stores in most cities have it available, prices will naturally fall, which means the market will enter a growth phase."
"Next, all the specialty stores, including online shopping platforms, will start to put this sneaker on the shelves. That means it will enter the saturation period, and this sneaker will often have discounts."
"In the end, most of the people who wanted to buy this sneaker had already bought it, so the manufacturer stopped producing it. Sizes may also be incomplete, so it entered the final clearance sale stage, when the price was at its lowest. This is the so-called decline period, until the sneaker was discontinued."
"This is the life cycle of a product."
Huang Zheng was still completely bewildered: "President Lin, I understand what you're saying, but what does this have to do with the group buying + e-commerce model?"
"You just said that the pricing of goods is controlled by suppliers. Now think about it, what if we mainly sell goods that are in a saturated or even declining phase? Would the merchants still insist on controlling the prices?"
Huang Zheng suddenly realized: "That's right! If we mainly sell products that are in the saturation stage or even the decline stage, then we are actually helping merchants clear their inventory. Merchants still care about the price, and it's good enough if we can sell them at a break-even point."
In fact, that's how e-commerce platforms operate now. Some people don't understand why, in addition to its own Taobao app, Taobao Special Edition, and other similar platforms like YiTao and DianTao, Taobao has also launched them.
Actually, this is also based on the product life cycle. Each life cycle corresponds to a different customer group. There is a high-end customer group, the kind who don't mind spending money, an economy customer group, the kind who like to buy discounted good products, and a value-oriented customer group, the kind who like to buy practical and cheap products.
In short, as shopping platforms develop, they will create different shopping methods for different customer groups.
At this moment, Huang Zheng looked at Lin Chen with shining eyes. President Lin is really amazing. This theory is, without exaggeration, at least five years ahead of the entire industry.
Lin Chen got goosebumps from his gaze, coughed twice, and stood up.
"Come on, Mr. Huang, let me introduce you to the company's colleagues."
As Lin Chen walked out of his office, he called out to An Rou's office, "An Rou, inform all department directors and deputy directors to come to the conference room for a meeting."
Ten minutes later, everyone had arrived.
"Hey, isn't this Ye Qian, our Deputy Director of Legal Department? It's been a long time since we last met."
"Ahem, Mr. Lin, I had some things to take care of, so I was a few days late. I'm sorry."
"Hey, it's alright. Even if we disregard Uncle Shen's feelings, or even your advisor's, it's no big deal."
"You know my advisor?"
"An outlaw, I've heard a lot about him."
"ah?"
"Let's not talk about that for now. Since everyone is here, I'd like to announce something. Starting today, the original Website Department will be renamed the Business Department. The director will still be Vice President Zhang Yiming. The Business Department will include the Huasuan.com Department, the Mobile Application Development Department, the Beauty Technology Department, and the Panda Live Department. In addition, we have added an E-commerce Department. This is the director of the E-commerce Department, Huang Zheng. Please welcome him."
"Clap clap clap..."
After everyone applauded, Lin Chen introduced everyone present to Huang Zheng one by one.
Huang Zheng then realized that Xingchen Technology was so huge. In addition to the behemoth Huasuan.com, it also had mobile games, mobile applications, and live streaming. It seems that our CEO Lin has a very big business vision.
After the meeting, Lin Chen kept Zhang Yiming and Huang Zheng behind.
"Mr. Huang, go back and reorganize Ouku.com according to the group buying + e-commerce model we discussed before. Then, contact Mr. Zhang to add it to MiXin so that it can be directly shared with MiXin friends, who can then click the link to participate in group buying."
Zhang Yiming said, "That's good, President Lin. After Mixin gained some popularity last time with the 'People Nearby' feature, it's almost dead again. Social + group buying + e-commerce, this concept is really ahead of its time. Our Huasuan.com's user advantage is e-commerce, we should have done this a long time ago."
"Social + group buying + e-commerce?" Huang Zheng chewed on these words, his eyes growing brighter and brighter. "I understand, President Lin. Social is the new direction for e-commerce to break through! A person can go a day without shopping, but a person will definitely socialize every day. Driving shopping while socializing can definitely increase sales."
Lin Chen nodded. "Of course! You came up with this yourself in your past life, and you even became the richest man because of it. I'm just helping you come up with it now. Cough cough, I hope you don't mind."
Huang Zheng continued, "President Lin, I think the name Ouku.com is outdated. Our e-commerce platform should be renamed, or how about 'Group Buying'?"
"How about calling it Pinduoduo? What do you think?"
“Great, Pinduoduo is a better name, it’s catchy, hahaha, Mr. Lin is indeed a marketing genius.”
"Hehe, keep it low-key, keep it low-key. I'm a little embarrassed by your praise."
In the following week, the major e-commerce platforms breathed a sigh of relief when they saw that Huasuan.com had not made any moves and had not removed the "You May Like" channel. They thought to themselves, "So Lin Chen is nothing special after all. In the end, Huasuan.com is just a middleman and should be under our control. Why are you acting like the enemy?"
After returning to Hangzhou, Huang Zheng stayed up for two consecutive nights to create a Pinduoduo operations manual, writing down his thoughts on the social + group buying + e-commerce model.
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