In Dongguan in April 2008, the air was already a little sticky with early summer.
But in a brand-new office building on Zhen'an Road, Chang'an Town, the headquarters of Xingchen Technology is a scene of coolness and heat.
In the open office area with bright windows and clean windows, the sound of keyboard tapping, phone conversations and the sound of printers merged into a busy symphony.
Li Yan stood in front of the floor-to-ceiling window of his office, overlooking the busy traffic downstairs.
This office is fifty square meters in size, and its style is the minimalist modern style he specially requested.
Huge solid wood desk, leather boss chair, and a whole wall of bookcases on one side, although I haven’t had time to read most of the books.
An abstract geometric painting hangs on the other side.
There is no longer the smell of factory oil here, replaced by the cool breeze from the air conditioner and a faint aroma of coffee.
His eyes swept across the desk. In addition to the prototype of the wealthy Jinxingchen S2, there were several other low-quality copycat phones on it.
The most eye-catching one is the thick financial statement in March.
Although he had been mentally prepared, the numbers above still made him a little happy.
January: Sales volume is about 100,000 units, profit per unit is 150 yuan, total profit is 15 million.
February: Sales volume was 150,000 units, profit was 22.5 million.
March: Sales volume was 260,000 units, profit was 39 million.
Subtotal gross profit: 76.5 million yuan.
Main expenditure deductions:
Salaries and benefits for the 200 employees in the factory: average monthly salary of 2,000 yuan, totaling about 1.2 million yuan in March.
Salary and benefits for the 65 employees in the office: average monthly salary of 5,000 yuan, totaling about 975,000 yuan in March.
GG marketing expenses: January (1.5 million) + February (8 million) + March (2 million) = 11.5 million yuan.
Other expenses such as water, electricity, taxes, public relations expenses, etc.: It is estimated that the total amount in March will be about 3 million yuan.
Based on a rough estimate, the total net profit from January to March is about 59.82 million yuan!
There are so many things that can be done with this money, and the profits made in these three months far exceed the wealth that I only had in my previous life when I was in my thirties.
This astonishing profit is the fuel for all his ambitions.
These fuels are enough to support Li Yan in the next major market changes to capture a satisfactory market share and position!
...
Although Xingchen S2 has not been officially released, its overwhelming GG pre-heating and channel release have already caused huge waves in the market.
The most keen ones are the agents everywhere.
They have tasted the benefits of S1 and are well aware of Li Yan’s product strength and marketing capabilities.
S2's more fashionable design, higher-end materials, and unprecedented "rich gold" color matching that directly hits the aesthetic G point of the sinking market allow them to see greater business opportunities.
“Mr. Li, when will the S2 be shipped? I have collected a deposit of almost 500 units!” A big agent in Zhejiang can make three phone calls a day to urge Sister Li.
"Stop taking orders! Can I finish the production of my 5,000-unit deposit order first?" Another Henan agent was almost begging.
Although Li Yan set the wholesale price of S2 at 558 yuan and the agent's profit per unit dropped from 200 yuan for S1 to 130 yuan, no one complained.
Because they know that Xingchen Mobile now guarantees traffic.
As long as you can get the goods, you don’t have to worry about selling.
With deposits and orders prepaid through channels, Xingchen S2 has not yet been officially mass-produced, and the order volume has exceeded 300,000 units.
The factory's production schedule has been extended to two months later.
This “star storm” coming from the rural market has also begun to attract the attention of mainstream mobile phone brands.
· When a regional manager of Tianyu was asked about Xingchen in an internal meeting, he dismissed it: "A nouveau riche who relied on GG and copycat designs is still following the low-end route we played, and it will not become popular."
· But privately, he had already asked his subordinates to buy several S1s and all available S2 promotional materials for research.
After all, you need to stabilize the hearts of the people below, and you have to show your confidence in your own brand, otherwise it will be difficult to do your job.
A report by Gionee's marketing department mentioned Xingchen Electronics for the first time, listing it as a "potential competitor worthy of attention in the third- and fourth-tier markets" and deeming its marketing model "worthy of study."
ZTE and Lenovo are still focusing on the operator customized market and first- and second-tier cities, and have not yet regarded Xingchen as a competitor in the same dimension.
But this kind of neglect gave Li Yan precious time.
The reaction of copycat workshops is the most direct - crazy imitation.
The three copycat phones on Li Yan's desk are proof of this.
But no matter how they imitate, rough workmanship, poor quality paint, and stuck systems cannot shake the reputation Xingchen S1/S2 has established for its quality and experience.
On the contrary, he has become the "caregiver" of the stars invisibly.
While Li Yan was thinking about the future, the mobile phone on the table rang, and the caller ID showed a number in Shenzhen - Mr. Liu, the core agent of MTK with whom he had cooperated for a long time.
“Mr. Li! Congratulations on getting rich! I heard that your stars are very popular recently!” Mr. Liu’s voice was enthusiastic.
"Mr. Liu, you're too polite. It's all friends who are helping me." Li Yan said politely.
"Mr. Li, there is good news. Several senior executives from MTK Corporation are coming to South China next week to inspect the market. It took a lot of effort for me to help you make an appointment with a director in charge of product planning, Director Wang. Do you think...do you have time to sit together?"
Li Yan's heart moved. This is the opportunity he has been waiting for for a long time!
Establishing direct contact with MTK headquarters is crucial to getting smartphone solutions as soon as possible in the future.
"Mr. Liu, thank you so much! You must have time! Where do you think it is more convenient? You must arrange the best one!" Li Yan answered without hesitation.
Hang up the phone, he immediately called in the administrative director Xiao Chen.
"Xiao Chen, go and book a place immediately. Book a private room in the Chinese restaurant at the Hyatt Regency Songshan Lake in Dongguan."
The Hyatt Regency Songshan Lake has opened this year and is one of the top business hotels in Dongguan at this time.
"The dishes are arranged according to the highest standards, and the wine must be Moutai and imported red wine. The budget... is first prepared according to the standard of 2,000 yuan per person, and must reflect our sincerity and strength."
Li Yan estimated that the dinner, including dishes and wine, plus possible gifts, will easily exceed 20,000 yuan.
In 2008, this was undoubtedly an extremely luxurious banquet.
But he thinks the investment is well worth the money.
After explaining the banquet, Li Yan walked out of the office and walked around the office area.
The sales department area was bustling with people. Almost all of the more than 20 salesmen were on the phone, speaking very fast.
"I'm sorry, Boss Zhang, the S2 schedule has really reached two months later..."
"Mr. Li, don't worry, we will give priority to your goods!"
The sales performance list hanging on the wall is updated every day.
Li Yan continued to the newly established GG Marketing Department.
8 employees are having a heated discussion. The wall is covered with Star S2’s GG creative and media placement plan, and the table is littered with ratings data from various county TV stations.
Even the Finance and Administration Departments are very busy, processing a swarm of reimbursement forms and employment application forms.
The entire company is like an engine filled with fuel, roaring and running at high speed, sprinting towards the goal set by Li Yan.
He finally walked outside the glass partition of the R&D department, where 10 engineers were immersed in computers and development boards, seemingly in two different worlds from the hustle and bustle outside.
They are the early pioneers of China's smartphone era. At this moment, they are struggling to read English technical documents and debug the early Android system that is full of bugs.