Who would still start a business seriously after being reborn?

Chapter 630 I'm Not One to Hold Grudges (Third Update!)
At this time, Wu Jun, chairman of Shenzhou, locked himself in his office. In just half a month, he seemed to have aged more than ten years.

too frightening.

This kind of offensive is truly impossible to resist.

On Wu Jun's desk was a thick stack of reports and emergency reports. The top one clearly showed that sales had plummeted by more than 70% in the past week, inventory backlog had reached a record high, and cash flow warnings had flashed a glaring red light.

Just then, the office door was flung open, and the sales director practically stormed in, his voice trembling as he said, "Chairman, the general agent for the East China region just called, saying that more than a dozen of their distributors have banded together and are demanding that all our inventory be returned, or they'll file a joint lawsuit..."

Wu Jun suddenly raised his head, his lips trembling, wanting to say something, but unable to make a sound.

Distributor returns surge...

No company can withstand such a run on the company.

Small businesses that want to grow rapidly need to adopt the agent model, while large groups like Lianxiang adopt the distributor model. Distributors need to sign sales contracts in their own name, bear civil legal responsibility independently, and can even set their own prices. Their business activities are not restricted by manufacturers. However, distributor qualifications are reviewed every year, and they will only be granted distributor qualifications for the following year if their sales volume meets the target.

The agent model is much simpler. It involves signing a contract in the name of the manufacturer, with the manufacturer bearing the legal consequences and the agent only having limited liability. This model allows small brands to quickly attract countless agents because of its low investment, quick returns, and clear division of responsibilities.

Originally, distributors only act as agents for products and do not need to stock inventory.

However, 99% of domestic distributors eventually become hoarders.

They pay a sum of money to take a batch of goods, and then sell them slowly. After they're sold out, the unsold goods are returned to the manufacturer.

This distorted agency model has also enabled many brands to quickly accumulate initial capital.

But it is also very dangerous.

Either the manufacturer runs away, leaving the distributor with nothing.

Either the distributors will stage a run on the company, causing it to collapse.

Right now, this agent system has become the last straw that broke the camel's back for Shenzhou.

Shenzhou has always relied on its vast network of agents. If this network turns against it, demanding collective returns and collection of payments, Shenzhou's already precarious cash flow will collapse instantly.

Soon, the purchasing manager rushed in with a long face and said, "Mr. Wu, the upstream suppliers are also urging us to pay. They say that Lianxiang has placed a huge order with extremely high cash flow requirements. They demand that we pay on time, otherwise they will stop supplying key components."

There is a wolf in front and a tiger behind.

Wu Jun felt a wave of dizziness and almost slid off his chair.

He gripped the edge of the table tightly with both hands, his knuckles turning white from the force.

Shenzhou, the brand to which he devoted half his life, once stirred up the PC market with its price-cutting tactics, enabling countless ordinary families to use affordable computers, is it really going to fall in this capital strangulation war initiated by Lianxiang?
All the self-help methods he could think of seemed pale and powerless in the face of Lianxiang's indiscriminate and almost insane price reductions.

Competing on price? You can't win.

Competing on brand? We're way behind.

Competing on funding? That's pure fantasy.

The only ones who can rival Lianxiang are probably...

A name quickly flashed through his chaotic mind.

Momo Group!

Perhaps only Momo Group has the ability and willingness to help them fight against Lianxiang.

This thought was like a ray of light in the darkness, illuminating Wu Jun's heart.

At that moment, he believed in the light.

As if grasping at a last straw, he suddenly stood up, took out his phone, and dialed Ma Huateng of Tencent.

He and Ma Huateng were both vice presidents of the Shenxia City General Chamber of Commerce. They saw each other all the time, and Ma was the only important person in the Momo Group that he could think of to contact.

Momo Technology Industrial Park, Jingzhou City.

The atmosphere here doesn't seem to have been affected by the Microsoft battle; it remains busy yet orderly.

At 10:00 a.m., Cheng Yi received a haggard-looking Wu Jun in his office.

Cheng Yi had to give face to Ma Huateng, who personally made the introduction.

At this moment, Wu Jun adopted a very humble posture and appeared very reserved when facing Cheng Yi.

"Mr. Wu, I've heard so much about you. Hasee Computers was the first computer for many young people." Cheng Yi was very friendly, personally brewing Wu Jun a cup of tea, his tone calm, as if he were receiving a senior figure in the industry.

Wu Jun had no time for pleasantries. He didn't care about politeness anymore and eagerly laid out the desperate situation facing China.

How did Lianxiang suddenly launch its attack? How did prices plummet? How did distributors turn against them? How did the supply chain demand payment?

He spoke quickly and urgently, beads of sweat forming on his forehead, his hands gesturing incessantly with excitement, as if he wanted to pour out all his anxiety to Cheng Yi as soon as possible.

He was indeed panicked.

This is not Wu Jun's fault. No founder of any internet company in China could have performed better than Wu Jun when facing a behemoth like Lianxiang Group.

“President Cheng, Lianxiang isn’t competing, they’re trying to drive us companies to our deaths. They just want to monopolize the market.” Wu Jun said with red eyes, “We, we really can’t hold on any longer. President Cheng, you’re also competing with Lianxiang. Could you please help us out, considering we’re both national enterprises? Otherwise, we’re really finished.”

He was practically begging. A once-powerful businessman was now placing all his dignity and hope on the man in front of him, who was much younger than him.

Cheng Yi listened quietly, his eyes revealing little emotion.

He was indeed somewhat surprised that Lianxiang suddenly extended its battle to the national PC market, even going so far as to spend heavily to eliminate its competitors.

Yang Yuanqing's move may seem crazy, but its goal is actually very clear.

He wanted to quickly regain his original market share, then rapidly boost the stock price, recoup funds, and alleviate his own pressure.

It is also an attempt to completely purge the rear, integrate the domestic PC market, and may even be a way to demonstrate its control over the PC field to IBM and Microsoft.

This has gone beyond a competition between universities; it has become a reshuffling battle concerning the entire PC market landscape in China.

Looking at Wu Jun, who was on the verge of collapse, Cheng Yi pondered for a moment.

While Hasee Computer may not be a top-tier brand or in terms of technology, its extensive offline distribution channels and influence in the low-to-mid-end market, particularly in third- and fourth-tier cities and rural towns, are something Momo Group currently lacks. There's no way to completely salvage the situation; after all, competitors are rivals.

When Momo Group was promoting the Momo system, Hasee Computer sided with Microsoft. Now that they've been beaten by Lianxiang, they're only now resorting to last-minute scrambling.
Is it so easy to cling to Buddha's feet?

However, incorporating Hasee computers into the Momo ecosystem would be a good option.

Although Honor computers have developed rapidly, production volume has always been a major problem.

In addition, Honor computers also need to supply the Asian market simultaneously, which has strained their production capacity.

"Mr. Wu, please don't be anxious." Cheng Yi smiled, his voice carrying a hint of composure, and said, "Lianxiang's actions are indeed barbaric acts that violate industry rules. We are all Chinese enterprises, and we should compete healthily and develop together, instead of killing each other like this and making ourselves a laughing stock in front of outsiders."

“Yes, that makes sense,” Wu Jun quickly agreed.

Cheng Yi said slowly, "I can't sit idly by in this matter. I will contact the National Information Industry Association immediately and ask Lianxiang Group to stop this self-destructive behavior. You go back and stabilize the situation, appease the employees and suppliers, and give me some time. If the National Information Industry Association's mediation fails, I will teach Lianxiang Group a lesson."

"Okay." Hearing Cheng Yi's clear promise, Wu Jun could hardly believe his ears. Overwhelmed with joy, he stood up abruptly, grasped Cheng Yi's hand tightly, and said incoherently, "Thank you, thank you so much, President Cheng, thank you so much."

Wu Jun said with a look of shame, "Alas, I thought you would hold a grudge against me for refusing your system back then. Now that I think about it, I was really judging you by my own petty standards."

Cheng Yi smiled kindly and said, "I'm not one to hold grudges."

"I feel it." Wu Jun grasped Cheng Yi's hand and said excitedly, "From now on, if President Cheng needs me anywhere, I will do my duty without hesitation."

Wu Jun thanked him again before getting up and leaving.

When Li Weiwei heard Cheng Yi say he didn't hold grudges, the corners of her sexy lips twitched involuntarily.

Ha ha……

This guy is even more vengeful than the abbot in "The God of Cookery," okay?
Cheng Yi watched Wu Jun leave, then quickly took out his phone, dialed Liu Guiwu's number, and said with a smile, "Hello, Chairman Liu."

"So you still know to call me? You came all the way to Yanjing, and instead of coming to see me, you didn't even call me? Are you afraid I'll freeload off you?" Liu Guiwu launched into a tirade.

"I was just worried about the negative impact. You're a deputy leader now, after all." Cheng Yi deliberately emphasized the word "deputy," which made Liu Guiwu fall silent in anger.

"Speak your mind, or shut up," Liu Guiwu said irritably.

Cheng Yi stopped wasting words and immediately said, "Uncle Liu, you should know about the price war that Lianxiang Group is waging in the national PC industry, right?"

"Hmm." Liu Guiwu's tone was much lower as he said, "This is utter nonsense! We've met with them twice, and they're deliberately stalling. They probably have reasons they have to do it."

"So, we're just going to let this go?" Cheng Yi asked again.

Liu Guiwu said, "We can only offer advice and hold talks regarding this kind of normal business competition."

"Isn't this considered unfair low-price competition?" Cheng Yi couldn't help but ask.

"As long as their products exceed the cost price, even if the profit is only 5%, it does not constitute unfair low-price competition. On the contrary, the mess you and Lianxiang made at the university, that is unfair low-price competition. If it weren't for the fact that your two companies are large enough and have controlled the scope, we would probably have already summoned you for a talk with the price control department."

After Liu Guiwu finished speaking, he paused and advised, "Take it easy. Earning money isn't easy, so don't be so reckless."

Cheng Yi ignored the latter part of Liu Guiwu's words and said, "I understand. In other words, Lianxiang Group's dumping behavior is normal."

“Dumping only happens between countries. Do you even know the law?” Liu Guiwu said.

"I was just giving an example, why are you taking it so seriously?" Cheng Yi laughed. "Alright, I'll hang up now. I'll personally come to Yanjing to invite you to dinner another day."

"When is that other day?"

"I've already scheduled to text you, Uncle Liu. I'll hang up now, I'm very busy here."

Cheng Yi hung up the phone quickly.

After hanging up the phone, the amiable look on his face slowly faded, replaced by a coldness tinged with excitement.

He glanced at Li Weiwei and said, "Have Li Xiang come to my office immediately."

"it is good."

More than half an hour later, Li Xiang strode into the office.

Li Xiang now has a large number of talented people under his command, including more than a thousand recent graduates from prestigious universities. He no longer needs to stay in various industrial parks; he can simply coordinate operations from headquarters.

Li Xiang has grown extremely rapidly in the past few years.

The childishness of yesteryear has long since disappeared; now, his every move exudes the air of a powerful figure.

As soon as Li Xiang walked in, he could clearly feel the tense atmosphere in the room.

He quickly said, "Brother, you were looking for me?"

Cheng Yi asked, "What is the current situation regarding the inventory and production capacity of our V1 desktop PCs in overseas markets?"

Li Xiang was taken aback, clearly not expecting his boss to ask this question. He thought about it carefully and replied, "Including the goods in the overseas warehouses, the current inventory is about 700,000 units. If the production line is operating at full capacity, the monthly production capacity can reach 150,000 units."

"Immediately cease all overseas supply and new order acceptance for the V1 desktop computer." Cheng Yi said emphatically.

Li Xiang was startled upon hearing this, almost thinking he had misheard.

Overseas markets are one of Honor's important channels; they now have four industrial parks producing computers.

The Honor V1 desktop computer is one of the main models among them.

Li Xiang hurriedly asked, "Brother, what, why is this happening? What about the existing orders?"

"We'll complete the delivery of existing orders by working overtime, and then completely suspend overseas channels." Cheng Yi said in a deep voice, "Send all the remaining Honor V1 desktops in stock, as well as all the V1 complete machines produced in the next month, back to China. Replace all the chassis produced afterward with your newly designed futuristic chassis."

Li Xiang's mind raced, and he quickly asked, "Brother, are you planning to use the V1 desktop computer to break into the domestic market?"

Cheng Yi nodded slowly and said, "That's right. Lianxiang is stirring up trouble in the domestic market by relying on its brand and capital. This is an excellent opportunity for us to enter the market. This time, we will take care of all these domestic brands at once, all in the name of justice."

"From now on, Honor is officially entering the domestic desktop PC market. With our strongest cost control capabilities and cost-effectiveness, we will show Yang Yuanqing who really calls the shots in the PC market."

(End of this chapter)