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Suning's investment in Xiao Ran is not because they consider themselves morally corrupt.

Besides the fact that this project is indeed quite promising, the most important thing is that I don't have any life-or-death feud with Xiao Ran.

The pursuit of Han Ling was purely a matter of fair competition, and Han Ling's choice of whom is her personal freedom. There's really no need to dwell on this matter; otherwise, it would seem too low-class.

Afu privately asked Su Ning, "Master, did you have any special considerations when you invested in Xiao Ran's soap project?"

Su Ning laughed, "Afu, do you think I'm the kind of person who repays evil with kindness?"

"No. But you were indeed very generous to Xiao Ran this time."

“Generosity? Ah Fu, I only care about profits in business. I invested in Xiao Ran because that project is indeed profitable. Those soaps, repackaged and sold as herbal soaps, are sure to be a hit. It's a sure-fire way to make money.”

"But Master, Xiao Ran has a grudge against you after all..."

"What grudge?" Su Ning interrupted dismissively. "Pursuing the same girl, is that a grudge? That's fair competition. He lost, I won, it's that simple. I didn't steal his wife, and he didn't kill my parents, so where does this life-or-death feud come from?"

Afu was stunned.

"Besides, Xiao Ran is capable and resourceful. Look at him, he became a supervisor in sales in just three months. Now he's come up with this soap project, which shows he has a business mind. It's better to be a partner than an opponent with someone like that. I invest in him, he makes money, and I make money too—a win-win situation. Dwelling on that trivial matter is childish and too low-level."

Afu understood. "Master, you're... recruiting them?"

“Yes, recruit him.” Su Ning nodded. “It’s much more meaningful to make him make money for me than to suppress him. Besides, if he makes money, he’ll owe me a favor, and he’ll have to listen to me even more in the future. That’s a hundred times better than crushing him and making him hate me.”

"Brilliant." Afu sincerely admired him.

"Alright, let's not talk about this anymore." Su Ning waved his hand. "How's the mobile phone business going?"

"I was just about to report to you," Afu said. "The prototype of the Shenzhen-Hong Kong 1 has been developed, and the sample is in the laboratory. Dr. Wang would like to invite you to come and take a look."

"Walk."

……

In the laboratory, there were three cell phones on the table.

This is Shenzhen-Hong Kong Electronics' first mobile phone – Shenzhen-Hong Kong 1.

It is smaller and has smoother lines than Motorola and Nokia phones currently on the market.

The screen is a 3.5-inch color LCD. Although the resolution is not high, it is much better than a black and white screen.

"President Su, please give it a try." Dr. Wang handed over one.

Suning picked up the phone; it felt good in his hand and wasn't heavy.

Press the power button, the screen lights up, the "Shenzhen-Hong Kong Communications" logo appears, followed by a simple menu interface.

It has a phone, text messages, phone book, calendar, calculator... It doesn't have many functions, but it has everything you need.

"How long is the standby time?" Su Ning asked.

“Under normal use, it lasts two days,” Dr. Wang said. “If it’s just on standby, it can last up to four days. That’s twice as long as the standby time of most mobile phones on the market right now.”

Where's the signal?

"We used a new architecture baseband chip, which makes the signal more stable and can be received in elevators and basements."

"Call quality?"

"Clear and with minimal background noise. We've optimized the audio processing algorithm."

Suning tried it out, and it's really good.

Clear calls, smooth operation, and long standby time.

It's slightly ahead of current mobile phones on the market...

But even this small advantage is enormous.

"How much does it cost?" Suning asked.

"For mass production, the cost per unit is around 1,200 yuan," Dr. Wang said. "Currently, similar phones on the market sell for 12,000 yuan for Motorola and 10,000 yuan for Nokia. What should we price it at?"

Suning thought for a moment and said, "The price is 3,999."

"Three thousand nine hundred and ninety-nine?" Dr. Wang was startled. "That's so low? The profit margin is very small."

“Not small,” Suning said. “The cost is 1,200 yuan, and the selling price is 4,000 yuan, resulting in a gross profit of 2,800 yuan. After deducting channel fees and advertising expenses, the net profit is 1,500 yuan. If you make 1,500 yuan per unit, selling 100,000 units would be 100 million yuan.”

"But... if the price is set so low, won't people think it's a low-end product?"

“No,” Suning shook his head. “We’re not low-end; we offer high value for money. If others sell for 10,000 yuan for the same features, and we sell for 4,000 yuan, which will consumers choose? Besides, our quality is just as good, if not better. That’s our advantage.”

Dr. Wang understood. "President Su, you want to use a price war to quickly seize the market?"

“Yes,” Suning said. “Mobile phones are still a luxury item. We need to make them a mass consumer product. Only by lowering the price can we increase sales. Once sales increase, costs can be reduced further, creating a virtuous cycle.”

"But... will foreign brands follow suit?"

“They won’t follow, and they wouldn’t dare to,” Su Ning sneered. “They sell at high prices overseas and are used to making high profits. Lowering prices? They’re unwilling. Besides, their costs are high, so they can’t lower them. Our costs are low, so we have room to lower prices. That’s our opportunity.”

Dr. Wang nodded. "Understood. Then...when will mass production begin?"

"Immediately," Su Ning said. "President Fu, arrange the production line and start mass production. The first batch will consist of 50,000 units."

“Yes,” Afu said. “However, Master, fifty thousand units will require a lot of capital. Raw material procurement, worker wages, production line operation…”

“Money is not a problem,” Suning said. “We’ll transfer it from the company’s account. Also, we’ll contact the suppliers and negotiate payment terms. We’ll delay as long as possible and get the goods produced first.”

"clear."

“And another thing,” Suning said, “is preparing for a press conference. I’m going to hold a grand press conference to announce the launch of the Shenzhen-Hong Kong 1 mobile phone.”

"A press conference?" Afu asked, "Like those product launches abroad?"

“Yes, but it needs to be bigger and more sensational,” Suning said. “The venue is the Shenzhen Stadium, which can hold 5,000 people. We’ll invite the media, distributors, and potential customers. We’ll demonstrate the product features, announce the prices, and accept pre-orders on-site.”

"Pre-order?" Afu didn't quite understand. "Isn't it just sold directly?"

“We won’t sell directly,” Suning said. “We’ll be using a pre-order system. We’ll start accepting pre-orders after the press conference. Pay a 100 RMB deposit to get priority access. We’ll ship the goods gradually as production ramps up.”

"Is this... a form of scarcity marketing?"

“That’s right.” Suning smiled. “Scarcity drives up prices. The harder something is to buy, the more people want it. We’ll release the stock gradually when consumers are eager to buy it. This way, we can control production and maintain the hype.”

Afu's eyes lit up. "Brilliant! Master, I'll arrange it right away!"

“Wait a minute,” Suning added, “The advertising needs to keep up. Newspapers, TV, radio—a full-scale bombardment. I’ve got the slogan in mind—'Shenzhen-Hong Kong mobile phones, making communication easier.' Highlight our advantages: good signal, long standby time, and low price.”

"it is good!"

"Also," Suning thought for a moment, "find a celebrity endorsement. Not from Hong Kong or Taiwan, but from the mainland, someone approachable. The budget is under one million, you decide."

"Understood! I'll contact Sun Yumei."

……

One month later, the Shenzhen-Hong Kong 1 mobile phone began mass production.

The production line operates 24 hours a day, with workers working in three shifts, and can produce 2,000 units per day.

Fifty thousand units can be completed in one month.

Meanwhile, preparations for the press conference are also in full swing.

The Shenzhen Gymnasium has been booked, the stage has been set up, and the lighting and sound systems have been tested.

Media invitations were sent out, and major newspapers, television stations, and magazines across the country received them.

The distributors have also been contacted; over a hundred distributors from more than thirty cities across the country will be attending.

The advertisement has started running.

A full-page newspaper ad proclaimed: "Shenzhen-Hong Kong mobile phones, coming soon to a stunning launch!"

A 15-second TV commercial: "Want to stay connected with your family anytime, anywhere? Want full signal strength all the time? Shenzhen-Hong Kong mobile phones make communication easier!"

The radio was also broadcasting: "Shenzhen-Hong Kong 1 mobile phone, standby time up to four days, signal coverage nationwide. Stay tuned!"

For a time, the whole country was discussing Shenzhen-Hong Kong mobile phones.

"Have Shenzhen and Hong Kong really made a mobile phone? Is it true?"

"I heard the price is very cheap, only four thousand yuan!"

"Four thousand? That can't be right! Motorola costs over ten thousand!"

"They've already advertised it, so it can't be fake."

"If it really costs four thousand, I'll definitely buy one."

Consumers' expectations have been raised.

Distributors are also eager to make a move.

"Mr. Wang, we absolutely must secure the distribution rights for Shenzhen-Hong Kong mobile phones!"

"I heard that the price is competitive, so it will definitely sell well."

"I need to go to the press conference and place an order on the spot."

Suning was very satisfied with the feedback.

This is the effect he wants.

First, bombard them with advertisements to raise their expectations to the maximum.

Then the price was announced at the press conference, igniting the market.

They then employed scarcity marketing tactics, controlling shipment volume to maintain hype.

By the time his competitors realized what was happening, he had already established a firm foothold.

This is the marketing strategy that has been adopted in later generations; Apple and Xiaomi have both done it this way.

Now, Suning is using it more than a decade ahead of schedule.

The effect will definitely be good.

Because nobody does that now.

Everyone is honestly producing and honestly selling.

Nobody knows how to do these tricks.

Therefore, Suning's strategy is to use a "lower dimension" approach.

……

The day before the press conference, Suning inspected the production line.

Fifty thousand mobile phones have been produced and are being packaged.

The workers were working with great enthusiasm.

“Master, everything is ready,” Afu said. “For tomorrow’s press conference, we have more than 300 media outlets, more than 500 distributors, and more than 4,000 ordinary attendees, all of whom are loyal users of Shenzhen-Hong Kong pagers whom we have invited. The stadium has 5,000 seats, and it’s completely full.”

"Okay." Su Ning nodded. "Security must be done well, and there can be no trouble."

"It's all arranged. The security company has sent two hundred people."

"During the product demonstration, we'll hire a few shills," Suning said. "We'll demonstrate how good the signal is and how long the standby time is. It needs to be authentic, but also effective."

"Understood, everything is arranged."

"When announcing the price, there should be suspense," Suning said. "Don't reveal the specific price at first; let the audience guess. Then announce 3,999 at the end—it should have a shocking effect."

"Yes."

"Also," Suning thought for a moment, "after the press conference, the pre-order channels should be opened immediately. There will be a unified national pre-order hotline and pre-order points in major cities. Paying a deposit of one hundred yuan will give you priority in receiving the goods."

"We have already placed reservation advertisements in major newspapers, and the hotline is ready."

"very good."

Suning looked at the busy production line, his heart filled with anticipation.

Tomorrow is the day Shenzhen and Hong Kong mobile phones will be unveiled.

This is also the day that the long-planned project will officially launch.

The mobile phone industry is larger and more profitable than the pager industry.

But it's also more brutal, and the competition is fiercer.

Foreign brands are eyeing the market with covetous intent, while domestic manufacturers are also eager to enter the fray.

Suning needs to fight its way out in this competition.

Use slightly superior technology, significantly lower prices, and innovative marketing strategies.

Shenzhen, a city of innovation.

Tomorrow, we will witness the birth of a new legend.

And he, Su Ning, is the one who created the legend.

……

October 18, 1994, Shenzhen Gymnasium.

By 7 p.m., the area outside the stadium was already packed with people.

Media reporters, carrying video cameras and still cameras, lined up to enter. Distributors, dressed in suits and ties, held invitations and looked excited.

There were also many ordinary viewers, some of whom were fans of Shenzhen-Hong Kong Electronics, and others who were curious to see what domestic mobile phones looked like.

Inside the stadium, all five thousand seats were occupied.

The stage was huge, and the backdrop was a massive LED screen...

This was specially taken out of the space world by Suning; such high-tech things didn't exist in 1994.

The screen displayed the "Shenzhen-Hong Kong Communications" logo and a countdown.

The lights dimmed and music started playing.

Countdown: 10, 9, 8... 3, 2, 1!

The lights suddenly came on!

Suning walked onto the stage wearing a simple black T-shirt and jeans.

The audience burst into applause.

"Good evening, everyone. This is Su Ning." He said into the microphone, his voice resounding throughout the venue through the speakers. "Welcome to the Shenzhen-Hong Kong 1 mobile phone launch event."

Without further ado, let's get straight to the point.

A high-resolution image of the Shenzhen-Hong Kong 1 mobile phone appeared on the large screen.

"This is the product we are launching today – the Shenzhen-Hong Kong 1 mobile phone."

A gasp of surprise rose from the audience.

The phone is beautiful.

It has a silver-gray casing, a streamlined design, and a screen that is larger than most mobile phones on the market today.

“I know many people will ask: Can China make mobile phones?” Suning said. “The answer is: Yes. And we can make them better than foreign brands.”

Then he picked up a real machine and showed it to himself.

"Shenzhen-Hong Kong 1 uses our independently developed baseband chip, resulting in a stronger and more stable signal. You can receive a signal in basements, elevators, and remote mountainous areas."

A test video was played on the large screen: In the Shenzhen Metro, the Shenzhen-Hong Kong 1 mobile phone signal was full and the call was clear.

In the underground parking lot of a building, the Shenzhen-Hong Kong 1 phone can still make calls, but the Motorola phone next to it has no signal.

"Secondly, standby time," Suning said. "We've optimized power management and used high-capacity lithium batteries. Under normal use, it lasts two days on standby. If you're just making and receiving calls, it can last up to four days."

The audience gasped in amazement once again.

Nowadays, it's normal for mobile phones on the market to need to be charged once a day.

Four days of standby time? I can't even imagine it.

"Third, the screen," Suning said. "We used a 3.5-inch color LCD screen. Although the resolution isn't high, it's much clearer than a monochrome screen. And we can see it clearly even in strong light."

The large screen switched to an outdoor test video: Under direct sunlight, the screen of Shenzhen-Hong Kong 1 remained clearly visible.

"Fourth, price." Su Ning paused, looking at the audience.

Everyone held their breath.

“I know that a mobile phone costs more than ten thousand yuan now, which is unaffordable for ordinary people,” Su Ning said. “Our goal is to make mobile phones affordable for everyone. So…”

A number appeared on the big screen: ?

"Guess how much it costs?" Su Ning asked.

Someone in the audience shouted, "Eight thousand?"

"Six thousand?"

"Five thousand?"

Su Ning shook her head. "Neither."

The question mark on the big screen started flashing, then changed to: 3999!

Three thousand nine hundred and ninety-nine!
The entire venue fell silent for a second, then erupted in deafening applause and cheers.

Three thousand nine hundred and ninety-nine! My God!

"So cheap? Really?"

"Its features are even better than foreign brands! How is that possible!"

Media reporters took photos frantically, their flashes creating a continuous barrage.

The dealers whispered excitedly, "At this price, it's bound to be a bestseller!"

"We must obtain the agency rights!"

After a brief pause in the applause, Suning continued, "This price isn't a gimmick; it's genuine. Because we conduct our own research and development and manufacture our own products, we've formed our own industrial chain and have excellent cost control. So, what we're aiming for isn't to make exorbitant profits, but to make mobile phones accessible to more people."

He paused, then said, "Now, we'll start accepting reservations."

"Starting at 8 PM tonight, call this number or go to a Shenzhen-Hong Kong Electronics specialty store in major cities across the country and pay a deposit of 100 yuan to get priority access to the goods. The first batch is only 50,000 units, first come, first served."

As soon as he finished speaking, many people in the audience started taking out their phones...

Of course, it's a pager. Call your family and tell them to order one right away.

"In addition," Suning said, "we are cooperating with CCTV, and tonight's press conference will be broadcast live nationwide."

The large screen switched to the CCTV studio, where the host was explaining: "Viewers, we are now broadcasting live the launch event for the Shenzhen-Hong Kong 1 mobile phone. This is a mobile phone that was completely independently developed and manufactured by Chinese people, and it is priced at only 3,999 yuan..."

The whole country saw it.

Those sitting in front of the television were stunned.

"A domestically produced mobile phone? Really?"

Three thousand nine hundred and ninety-nine? That's so cheap!

Call now to reserve!

Before the press conference even ended, the reservation hotline was already overwhelmed with calls.

The operator was extremely busy: "Hello, this is the Shenzhen-Hong Kong mobile phone reservation hotline... How many phones would you like to reserve? Please leave your name and contact information..."

Long queues formed outside the stores of specialty stores in major cities.

"I want to order two!"

"I'll order one! Here's the deposit!"

"Are there any left? I need three!"

The scene was incredibly lively.

……

The media went wild after the press conference.

The next day, it was the headline on the front page of major newspapers across the country:

Shenzhen Special Zone Daily: "Domestic mobile phone brand emerges out of nowhere, Shenzhen-Hong Kong 1 makes a stunning debut!"

People's Daily: "Chinese companies break foreign monopolies and successfully develop mobile phones independently!"

Economic Daily News: "Shenzhen and Hong Kong electronics markets are sparking a price revolution, and mobile phones may soon be available to ordinary people!"

Beijing Youth Daily: "Three thousand nine hundred and ninety-nine! Domestic mobile phone prices are disrupting the market!"

It's also being broadcast on television news:

"Last night, Shenzhen Shengang Electronics released its first domestically produced mobile phone, the Shengang 1, priced at only 3,999 yuan, triggering a buying frenzy..."

"Experts say that the listing of Shenzhen-Hong Kong Stock Connect marks a new stage for China's electronics industry..."

"Consumers are queuing up to pre-order, and mobile phones are in extremely short supply in Shenzhen and Hong Kong..."

Foreign media also joined in the reporting.

Associated Press: "Chinese companies launch low-cost phones that could impact the global market."

Reuters: "Shenzhen-Hong Kong Electronics challenges Motorola, Nokia and Ericsson with prices at only one-third of the market."

BBC: "Made in China is no longer synonymous with cheap; Shenzhen-Hong Kong 1 showcases technological prowess."

It caused a global sensation.

No one expected that Chinese companies could manufacture mobile phones.

What I didn't expect was that the price was so cheap, yet the performance was still pretty good.

Foreign brands like Motorola and Nokia are getting anxious.

An emergency meeting was held to discuss countermeasures.

"The price of the Shenzhen-Hong Kong 1 is only one-third of ours, but its performance is just as good. What can we do?"

"Lower prices? Our costs are too high, we can't lower them."

"So we just stand by and watch our market share get robbed?"

"Quickly develop new products and reduce costs..."

But it was too late.

The Shenzhen-Hong Kong Stock Connect has already ignited the market.

All 50,000 units pre-ordered were sold out within a day.

There are still many orders that haven't been placed yet, and people are urging us to order.

When will the second batch be available?

"I'll pay more, can you give it to me first?"

"Your output is too low! Produce more!"

Shenzhen-Hong Kong Electronics immediately replied: "Due to limited production capacity, the second batch of goods will take a month to arrive. Please wait patiently."

The harder it is to buy, the more I want to buy it.

This is the effect of scarcity marketing.

……

In the Shenzhen-Hong Kong Electronics office, Suning looked at the sales data and was very satisfied.

Fifty thousand mobile phones were sold at a price of 3,999 yuan each, with total sales approaching 200 million yuan.

After deducting costs, the net profit was 75 million.

This is only the first day.

"Master, reservations are still increasing," Afu reported. "Many people who couldn't get a reservation are still calling, asking us to increase production."

"No rush," Suning said. "Maintain a sense of hunger. The second batch will still be 50,000 units. Release them in a month."

“Yes,” Afu said. “However, Master, foreign brands have started to fight back. Motorola announced a price cut, from 12,000 to 9,800. Nokia also cut its price from 10,000 to 8,800.”

“The price reduction isn’t enough,” Su Ning sneered. “Our price is four thousand, and they’ve lowered it to eight thousand, which is still double ours. Moreover, their costs are higher, so they’ll lose money if they lower the price any further. We still have room to reduce our prices.”

Should we lower the price?

“No price reduction,” Suning said. “The current price is just right. If it’s too low, it will make people think it’s low-end. Four thousand yuan is much cheaper than foreign brands, but not too cheap. The positioning is very accurate.”

"clear."

"In addition," Suning said, "Research and development cannot stop. We need to start preparing for Shenzhen-Hong Kong 2. The screen needs to be bigger, the functions need to be more, and the appearance needs to be more beautiful. We will release Shenzhen-Hong Kong 2 around this time next year."

“It’s already under development,” Afu said. “Dr. Wang said that the chip for Shenzhen-Hong Kong 2 will be more advanced, with a standby time of up to five days and an improved screen resolution.”

“Okay.” Su Ning nodded. “Also, the operating system needs optimization. It’s too simple now; we need to add features, such as games or simple office software.”

"Already doing it."

Suning walked to the window and looked out at Shenzhen.

This city has once again witnessed his success.

Pagers earned him his first pot of gold.

The mobile phone will allow him to reach a higher stage.

But this is not enough.

What he wants to do is not just make phones.

It's the entire electronics industry.

Chip, screen, battery, software...

Everything needs to be done.

We aim to become China's Nokia, China's Apple.

...(End of chapter)