Volume 4 Crazy Growth 2017 Chapter 820
Zhou Dongsheng's words were basically completely contrary to Nie Yunchen's business philosophy. No matter how convinced Nie Yunchen was about Zhou Dongsheng, he couldn't help but feel a little resistance in his heart.
Seeing the unnatural look on Nie Yunchen's face, Zhou Dongsheng was not surprised. After all, Nie Yunchen was a young man who had started from scratch.
In just five years, he was able to take the Royal Tea brand out of the small city and create a milk tea brand that countless people imitated. He also made a perfect comeback with the help of the "Heytea" brand...
Being able to achieve such an achievement is enough to make Nie Yunchen look down upon his peers. In the process, Nie Yunchen's opinions and persistence were naturally shaped, such as insisting on operating his own store and never opening it to franchise.
These persistences have made Heytea a fresh breath among tea brands and have helped it to achieve its unrivalled position as an industry leader, but at the same time, they have also indirectly led to Heytea's complacency.
Then, when the trend of the times changed, they misjudged the direction and lost the market in vain, which slowed down their own development. Finally, in the face of facts, they had no choice but to let go of franchising...
However, it was too late. The track was already extremely crowded with countless latecomers. The huge flock of sheep rushed forward and easily drowned out the leading company, Heytea.
However, when the brand tone is continuously diluted and consumers return to rationality, the focus will eventually fall on cost-effectiveness. After all, isn’t this just a cup of milk tea?
"In the fiercely competitive and open market of milk tea, Mr. Nie undoubtedly relies on innovation. With his original cheese milk cap and other innovative categories, he has made a big splash in the industry and has been recognized and praised by many consumers..."
Zhou Dongsheng spoke slowly and leisurely, expounding his own views.
"At the same time, it was also imitated and learned from by many peers! However, due to the lack of brand awareness, Mr. Nie also missed the opportunity to occupy the market, which led to the proliferation of the Royal Tea brand..."
At the beginning, Nie Yunchen showed a hint of pride on his face. After all, such an achievement of innovation is still the foundation of HEYTEA today, and it is also a major motivation for Nie Yunchen to persist in research and development.
Having succeeded because of innovation and having tasted the sweetness that innovation brings, people will naturally stick to this path, thus forming a simple power loop.
As for the latter part, Nie Yunchen couldn't help showing a trace of indignation on his face. It was precisely because there were so many imitators and their varying qualities had a significant impact on Royal Tea that he, the original creator, was forced to leave and start a new business...
"Although Mr. Nie woke up in time and fought a great turnaround with 'Heytea', the reason why it was so successful, in addition to the credit of you and me, is that the industry is not yet mature and there are no high barriers!"
"However, such opportunities are hard to come by. If you can seize them once, it doesn't mean you can seize them again. Mr. Nie's idea of relying solely on innovation to form a brand barrier is a bit too idealistic..."
"After all, the results of Royal Tea have proved one thing: the high cost of innovation will eventually become unsustainable, while the imitation cost of latecomers is very low. As a result, the lower cost advantage is enough for them to quickly occupy the market..."
"Compared with the unstable approach of relying on innovation to form barriers, the competitive means of forming price barriers by making full use of the first-mover advantage, taking the initiative, and firmly grasping the pricing power through various measures such as the supply chain is undoubtedly more stable."
"If Heytea takes the initiative to lower its prices and enter the low-price market first, relying on its first-mover advantage in the minds of consumers, it will be enough to raise the entry threshold for latecomers and squeeze their price space..."
"It is always better to take the initiative in a price war than to be passive."
Zhou Dongsheng looked like he was in control of everything, and the confidence in his tone was particularly convincing. After all, in Nie Yunchen's mind, Zhou Dongsheng's image also had a preconceived effect .
"But, Jay Chou... rashly lowering prices may indeed be effective in attracting new customers, but... it will also hurt old customers and may even backfire on the brand. Wouldn't that mean you won't be able to please both sides?"
But even so, Nie Yunchen did not blindly worship. Instead, he raised objections from his own perspective. Although the two were on the same boat of interests, they were in different positions and naturally saw different scenery.
The view on the deck is indeed wide, but when it comes to understanding the route, it is obviously only the one at the helm who knows it well. The issue that Nie Yunchen is considering is undoubtedly more practical.
Price itself is the anchor of brand value. Once the price anchor is lost, it is very likely to lead to the collapse of brand tone. This is why many luxury goods will never actively reduce prices to cater to the market even if sales are not good.
After all, although price cuts can achieve strong promotional effects in the short term, they are a waste of resources in the long run...
For this reason, the brand can only take a roundabout way to save the situation, using methods such as matching goods to carry out promotions and minimize the impact on the brand.
Or they cut prices in the name of giving back to new and old customers, or they use the platform’s big promotion to eliminate inventory by giving profits...
Therefore, Nie Yunchen naturally believed that although Zhou Dongsheng had made great achievements in the capital market, it did not mean that he was familiar with corporate operations. It was reasonable that he had knowledge blind spots in this area, wasn't it?
After all, no one is perfect.
Zhou Dongsheng was not surprised at all. He said with an unchanged expression: "Of course, but there are many ways to engage in price wars. We don't have to take direct price cuts. We can also take more subtle measures..."
"As long as consumers can get real discounts in the end, it's enough. Our prices can remain unchanged on the surface, but we can indirectly reduce prices through coupons, activities, etc...."
Speaking of this, Zhou Dongsheng couldn't help but sigh, although this trick is simple, it is the simplest way, and using it to the extreme will undoubtedly produce miraculous effects.
Nie Yunchen's idea was not wrong. Zhou Dongsheng had never eaten pork, but he had seen too many pigs. In particular, there was a newcomer in the milk tea industry who had to be mentioned. He used this trick to the extreme...
That is the famous Luckin Coffee!
Although it is under the banner of "coffee", the essence of this thing is no different from milk tea, except that tea is replaced with coffee, and the way it is made is also to use the idea of milk tea to make coffee...
However, at that time, there was already a strong competitor in the domestic coffee market that had been operating in this field for more than 20 years, and the number of its stores nationwide reached thousands.
Therefore, in the eyes of many people, Luckin Coffee is undoubtedly going to the toilet with a lantern - looking for shit!
However, the slogan of creating a "world-class coffee brand originating from China" not only failed to gain recognition from the general public, but was also laughed at.
However, the market is often so anti-human. The less favored a project is, the more likely it is to occupy a place in the milk tea field under the name of "coffee" by taking a different approach!
It even nearly delisted after a major debt crisis that was nearly devastating, but it made a comeback through a series of operations and achieved "unprecedented" profits, which surprised the entire market...
Such a legendary experience once became a hot topic that people talked about with relish. Its "conscientious behavior" of fleecing capital and subsidizing domestic consumers was praised and recognized by many consumers.
Of course, everything has its pros and cons. Its actions have also had a profound impact on the market to a certain extent, which we will not discuss here.
However, from the perspective of consumers, they naturally hope that there will be more such "conscientious enterprises". Although Zhou Dongsheng is not very fond of coffee, he is attracted by its almost free price...
Anyone who has ever gotten something for free would have to exclaim: It smells so good!
With such a "good example" in front of him, Zhou Dongsheng also had some understanding of it . After a rough estimate of the time, he thought that the Luckin Coffee project would soon be on the stage of history, right?
Zhou Dongsheng's thoughts raced in his mind, but it happened in a flash. After hearing Zhou Dongsheng's casual words, Nie Yunchen's train of thought also opened up, and his eyes lit up.
"This marketing method really kills two birds with one stone. It not only resolves conflicts, but also attracts new customers..."
"I take back what I said before. Jay Chou is still Jay Chou. Even if we are in different fields, it cannot stop Jay Chou's foresight. I raise a glass to Jay Chou to apologize!"
Nie Yunchen said this very openly, then picked up the wine glass and drank it all in one gulp.
Zhou Dongsheng waved his hand indifferently. "Hey, Mr. Nie, you are too polite. In terms of experience in the tea beverage industry, I am indeed a layman in front of Mr. Nie, but when it comes to marketing and other means, that is also my specialty..."
"So, we should learn from each other's strengths and make up for each other's weaknesses, so that HEYTEA can become bigger and bigger, right?"
"Finally, I would like to say a few words to Mr. Nie. Mr. Nie spent five years to expand beyond the small town and make HEYTEA flourish in big cities. But I also hope that Mr. Nie will not forget his original intention and bring HEYTEA back to the small town."
"Ultimately, we will return to where we came from," Zhou Dongsheng said meaningfully.
These words made Nie Yunchen think deeply, but why did they sound familiar?
Isn’t this just a replica of “come from the masses and go to the masses”?
"I have learned a lot from Mr. Jay. One word from you is worth ten years of reading. My future plans for Heytea have become clear. I was too persistent before..." Nie Yunchen sighed.
"Persistence is a good thing, but only by letting go of it at the right time can we make further progress. I believe in Mr. Nie's ability, and I will continue to lend a helping hand to him!"
Zhou Dongsheng said cheerfully, then raised the teacup in his hand to indicate that tea was used instead of wine, and everything was self-explanatory.
…
The next day, after the matter in Pengcheng came to an end, Zhou Dongsheng naturally came to Yangcheng, which was just across the border.
Zhou Dongsheng couldn't help but feel at home when he returned to his real base.
Whether it was the initial Little People Media, the later established PlayerUnknown's Battlegrounds company, or the initial prototype of Dongsheng Investment, the starting point of all this was undoubtedly in Yangcheng.
Now that time has passed and things have changed dramatically, Zhou Dongsheng has naturally heard a little about this...
When Zhou Dongsheng and others walked out of the high-speed railway station, Xu Kaidao, with a smile on his face, had been waiting there for a long time and came forward to greet them immediately.
"Hello, Chairman. Welcome to our office to give us guidance..."
After receiving the news that Zhou Dongsheng and others were about to arrive in Yangcheng, Xu Kaidao naturally took on the task of welcoming them.
Seeing this loyal follower who had followed him from the beginning, Zhou Dongsheng couldn't help but smile brightly. He patted his shoulder and said with a smile: "Old Xu, how are you?"
After a few pleasantries, the group came outside. Xu Kaidao walked to a black Mercedes-Benz S-Class and opened the door. "Chairman, please!"
Obviously, as one of the most senior veterans of the group, Xu Kaidao has naturally upgraded his equipment. The dividends from equity incentives alone are enough to achieve financial freedom.
Zhou Dongsheng nodded and got into the car without hesitation. Li Jiana, his personal assistant, naturally sat beside him, and the two bodyguards were not left behind. Xu Kaili, who was always meticulous in his work, naturally prepared two cars.
Two cars drove towards the company, one in front and one behind.
On the way, Xu Kaidao also took the opportunity to introduce Zhou Dongsheng to the company's recent situation. Although the establishment of Dongsheng Group merged the two major media into Dongsheng Media Department, it did not prevent the two from maintaining independent operation.
After all, the purpose of a merger is to maximize synergy, rather than going through the trouble of moving two companies together.
The two companies have different business focuses. After completing the integration of resources, each will perform its respective duties and will be able to focus more on developing their own businesses.
Among them, Xiaorenwu Media is still in charge of the live broadcast business, while businesses such as internet celebrity operations are handed over to Yinian Media.
The entire Dongsheng Media department is now coordinated by Xu Kaidao, with Xu Ruoan as his deputy, also in charge of film and television investments.
As for Xiaorenwu Media, thanks to the solid talent pool laid by Zhou Dongsheng, it still maintains a leading position in the industry.
Just taking advantage of the industry dividends is enough to make a lot of money. At the same time, in order to meet the needs of development, the territory is constantly expanded...
"Boss, do you still remember the original industrial park? It is no longer able to meet the development needs of our group, especially since we have our gaming business next door..."
"However, it is worth mentioning that with the support of our two star companies, the value of this industrial park has also risen, and it is now well-known throughout Guangzhou!"
"In order to keep us here, the rent has not increased but decreased, which actually saved us some expenses..."
Zhou Dongsheng couldn't help but feel moved when he heard this, and a vague idea was about to come out of his mind.
It seems... I can take this opportunity to build a live broadcast industrial park?
