When one's world is filled with myths of getting rich overnight, no one can sit still. It is a very anxious era, even more so than for young people more than 20 years later, because it gives people the illusion that as long as you take money and rush south, as long as you are bold enough, you can make money.
Under such an impact, not to mention ordinary people, many leaders of government agencies couldn't withstand it and went into business, and their positions were not low. The feeling throughout the 1990s was that the bold got rich and the timid starved.
Now Bird is moving into second-tier cities, gathering a bunch of people to promote its franchise stores. It's free, requires little investment, and if you sell, it's yours; if you don't, it's mine. You're guaranteed to make a profit, at most you'll lose a counter fee.
Everyone knows that investing involves risk, but if one day that risk drops to a very low level and the profit potential becomes very high, then a lot of people will rush in.
For Bird, things have deviated completely from history. They don't have enough time to develop their offline channels, and the current franchise model is at least better than large-scale wholesale.
In a short period of time, Bird's stores sprang up everywhere, each equipped with a large billboard, which is the roadside advertising model.
After discussion, they proposed a three-in-one strategy: combining franchise stores, billboard advertising, and in-store marketing. Franchise stores are free, but purchasing inventory requires investment. In the short term, facing market competition from companies like Jiafeng Electronics and Motorola, they won't be overwhelmed by the first wave of competition.
These franchise stores act as a buffer zone. Their funds are deposited into the company, forming a capital pool. Even if a franchise store goes bankrupt and returns products, there's no fear, because there will always be new franchisees. This creates a capital turnover pool, providing them with at least a year's worth of room to turn things around and launch a counterattack.
The signs for franchise stores must be uniform and large; these signs serve as advertising, saving them a lot of money.
Thirdly, there's store marketing. They offer stores a large profit margin and allow each store to conduct marketing activities independently and flexibly within its region. This way, even if a city's market is dominated by Motorola or Jiafeng Electronics, franchise stores can still run promotions to survive.
In summary, this is a commercial guerrilla war!
After reducing large-scale wholesale to external parties, the number of franchise stores has already exceeded 1,000 in a short period of time. Given a little time, their sales channels will be able to catch up with Jiafeng Electronics.
At the same time, Motorola accelerated the pace of opening offline stores. With the airing of advertisements, market demand was stimulated again. As goods arrived at stores, Motorola pagers doubled from 4,000 units per day before the Lunar New Year.
It's the off-season now, and Bird pagers are sold out. The monthly sales volume is only 50,000 units. This figure is surprising to many people!
On March 7th, Liu Run, the general manager of Motorola's branch, gave an interview to reporters, stating that they would make strategic investments in the mainland market. They would proactively lower prices on International Women's Day, from the original 4,299 yuan to 3,999 yuan, and the price of the mobile phone would be reduced from the original 28,000 yuan to 25,000 yuan.
The evening newspaper headline read: Motorola will sweep the market starting tomorrow; Bird and the troublesome Good News can finally rest!
As soon as the news broke, Xu Lihua immediately called his three brothers to share the news and inquire about the progress of the franchise store.
"The moment of life or death has arrived. Nobody knows whether the franchise stores can withstand this wave of impact. Now we can only hope that the market is not a one-size-fits-all situation, but that prices differentiate users so we can compete with them on price differences. Otherwise, we won't have to wait for Jiafeng Electronics' offensive." Xu Lihua's voice was not very emotional, but there was a sense of sorrow in his heart.
His friends had only set up a small company, and such a high-profile attempt to stifle it was like the fish in the moat suffering when the city gates caught fire. He was well aware that he was not qualified to be targeted like this; Motorola was aiming for Jiafeng Electronics.
In his office, Lu Feng looked at the news. It would be a lie to say he wasn't worried. With such a behemoth pressing down on them, no private company in China could withstand it. All they had to do was slightly increase their efforts in the mainland market within their global strategy.
These companies will be crushed like ants.
"President Lu, they're bullying us a bit. They've sold over 8,000 units in a single day, and they still want to lower the price. It's clearly a case of supply falling short of demand, yet they're doing this. It's a bit..." Du Guoying couldn't continue.
"What's the panic?" Lu Feng stood up and said, "Let's go for a walk. There's a saying: 'No investigation, no right to speak!'"
Continue read on readnovelmtl.com
