Who would still start a business seriously after being reborn?

Chapter 631 This is not taking advantage of someone's misfortune (Fourth update)
Li Xiang had long wanted to enter the domestic market, but Cheng Yi, citing the principle that "to secure the domestic market, one must first secure the foreign market," prioritized establishing Honor's foothold in the Asian market.

Li Xiang chuckled and said, "Understood, I'll get on it right away."

"Remember, keep the profit margin at 5%," Cheng Yi added.

When Wu Jun left Jingzhou City, his steps were light, his heart filled with the relief of surviving a disaster and boundless gratitude for Cheng Yi's righteous help.

He could almost imagine the National Information Industry Association intervening, forcing Lianxiang to back down, and giving Shenzhou Computer a chance to breathe.

He rushed back to Shenxia City overnight and sent a morale-boosting email to all employees, claiming that dawn had broken and reinforcements were on their way.

A week later, while Lianxiang Zhufeng series computers were still frantically reaping market share in major computer malls across the country, and the wave of returns from Shenzhou Computer's distributors was intensifying, a press conference led by Momo Group was held in Jingzhou Momo Technology Industrial Park.

The number of media present far exceeded expectations, with cameras and microphones aimed at the podium.

Everyone sensed something unusual. While Lianxiang and Shenzhou were locked in a fierce battle, Momo's Honor computer, which had always focused on overseas and internet cafe markets, suddenly held a press conference. The intention was self-evident.

Under the spotlight, Li Xiang, General Manager of Honor Computer Co., Ltd., walked onto the stage with a confident smile and a sharp suit.

He didn't waste time with small talk and went straight to the point.

"Recently, some regrettable irrational competitive behaviors have emerged in the domestic PC market, which have seriously damaged the industry ecosystem and harmed the long-term interests of channel partners." Li Xiang's voice resounded throughout the venue through the microphone, saying firmly, "Some giants, relying on their capital advantages, are attempting to clean up the market and achieve a monopoly by dumping products at low prices. Honor Computer will never condone such behavior and will never sit idly by."

The reporters in the audience were instantly excited when they heard Li Xiang's sharp words, and their flashbulbs went off everywhere.

This is an all-out war, with the spearhead aimed directly at Lianxiang.

“Many people may have forgotten, or may not even know,” Li Xiang said loudly. “Honor computers were born in the computer cases of Momo Internet Cafe. The five words ‘extreme cost-effectiveness’ are engraved in our genes! Our initial goal was to enable every young Chinese person to enjoy the best computer experience at the lowest cost.”

“Previously, we focused solely on overseas markets and our own distribution channels because our president was kind-hearted and didn't want to compete with domestic rivals. But today, we see that our domestic competitors are being plagued by unfair market practices. Therefore, the Group's Strategy Committee has decided…”

Li Xiang paused, his gaze sweeping across the room, and announced, word by word, "Honor Computers is officially entering the domestic consumer desktop computer market! We will use our own methods to end this chaos and restore order to the market!"

The projector suddenly lit up, displaying a rotating rendering of a black computer case with a minimalist yet futuristic design.

"This is our Honor V1 series desktop PC." Li Xiang said excitedly, holding a laser pointer. "It is equipped with the M2 self-developed processor, which is capable of running large games such as World of Warcraft at full frame rate. It also features a motherboard, memory, hard drive, and 'Enze Light' discrete graphics card, which is fully adapted to the Moc-os system and has performance comparable to NVIDIA's mid-range products."

The reporters held their breath, waiting for that crucial number.

With such a configuration, comparable to Lianxiang's Zhufeng and Shenzhou's Zhanlong, the price will likely be high.

Li Xiang didn't keep them waiting long. He took a deep breath and shouted out the earth-shattering price with all his might:
"A high-performance, high-quality V1 computer like this, which comes with three years of on-site service, is priced at $400 overseas, equivalent to 3200 yuan, but the unified retail price in China is..."

The whole place was so quiet that you could hear a pin drop.

"1999 yuan!"

"Wow!!!"

The entire press conference erupted in chaos!

Exclamations, gasps of shock, and incredulous skepticism instantly drowned out everything!
1999?

What kind of international joke are you kidding?
Lianxiang's Zhufeng series is still hovering around 2800 yuan, while Shenzhou's Zhanlong has gritted its teeth and lowered its ex-factory price to 2699 yuan in order to survive.

This is a high-performance desktop computer, two to three times faster than the Lianxiang Whisper laptop and the Honor S1 laptop.

1999 yuan?
This isn't just a matter of cutting it in half; it's like flipping the table over.

"Mr. Li, is this price accurate? Are there any additional fees?"

"Mr. Li, how do you guarantee profits at this price? Is there any cutting corners?"

Does Honor's move also constitute dumping?

The reporters practically rushed onto the stage, bombarding the audience with questions.

Li Xiang seemed to have anticipated this. He gestured for everyone to be quiet and said, "Please be quiet, reporters. I guarantee with the reputation of Honor Computer and Momo Group that 1999 yuan is the final price. There are no tricks or hidden charges."

"As for profits?" Li Xiang smiled and said, "Honor is backed by Momo Group's global supply chain integration capabilities, as well as our self-developed core components. Our cost control capabilities far exceed your imagination. We disdain cutting corners. We are simply using our own methods to show everyone what a true national price is. We only earn a meager 5% profit on this computer."

"Our actions are not intended to cause trouble, but to end the chaos! Because only magic can defeat magic."

"Starting today, the first batch of 700,000 units will be available for purchase through a lottery system via channels under the Momo Internet Cafe Alliance, the Honor Computer official website, and the soon-to-be-launched nationwide direct sales hotline!"

crazy!

Totally crazy!

This was the only thought on the minds of all the attendees and those who saw the news via live media broadcast.

At Lianxiang headquarters, Yang Yuanqing, who had been watching the live broadcast of the press conference, dropped her coffee cup with a clatter, splashing brown liquid all over the floor.

He stared at the press conference screen and murmured, "1999? How dare he?"

He originally thought that as the procurement between Momo Group and Microsoft escalated, Momo Group would at most step in to mediate or exert pressure in other ways. However, he never expected that the other party would use such a direct and barbaric method to directly intervene in the battle, and that they would use a trump card right from the start.

This is no longer competition, this is slaughter.

Meanwhile, Wu Jun, chairman of Shenzhou Computer, who had just calmed down a bit, was stunned when he saw the news in his office. Then, a chill ran from the soles of his feet straight to the top of his head.

His phone slipped from his hand and fell to the ground, the screen shattering, just like his mood at that moment.

“1999…” He slumped dejectedly into his office chair, staring blankly at the ceiling, and murmured, “It’s over…”

He asked Cheng Yi to intervene, hoping that Cheng Yi could stop Lianxiang from lowering its prices.

Judging from the current situation, Lianxiang Group has definitely refused, which is why Momo Group, in a fit of anger, chose to use magic to defeat magic.

However, Wu Jun wasn't too annoyed.

Their defeat was inevitable, and bankruptcy was certain. But if he could see Lianxiang Group fall with him, the satisfaction he felt would outweigh his frustration.

Although Lianxiang's price reduction only dealt him a heavy blow, Glory's price of 1999 was the death blow.

But he doesn't hate Momo Group at all.

It's all fate; you have to accept it when you encounter it.

With the release of the Honor V1 computer at a price of 1999 yuan, its impact far exceeded everyone's expectations.

The first to be affected was naturally Hasee Computer, which was already on its last legs.

The day after the press conference, the phone lines at Hasee's headquarters were inundated with calls.

Instead of payment reminders, there were a deluge of return orders and agency cancellation letters.

"Mr. Wu, the East China region is finished. All the distributors have jointly sent a letter demanding the termination of cooperation and immediate return of the goods!"

“Mr. Wu, the same goes for South China…” “The bank just called, demanding that we immediately repay the next loan due. They’ve already doubted our ability to pay.”

……

The bad news came one after another.

The mountains of inventory piled up in the warehouse instantly transformed from an asset into a huge burden.

The agent network, once a magic weapon that enabled China's rapid rise, has now become a deadly noose, with every thread tightening.

The cash flow has completely dried up.

They didn't even have the last bit of strength to struggle.

With Lianxiang lowering its prices, Shenzhou might be able to hold on a little longer thanks to its brand recognition and channel relationships built up over the years, hoping that the other party will give out first.

But Honor's 1999 is a game-changer.

Faced with an absolute price advantage, brand, distribution channels, and emotional appeal all become pale and powerless.

In the computer mall, customers who were queuing at the Lianxiang store yesterday are now flocking to Momo Internet Cafe to grab coupons online.

The stores of Hasee Computer are now completely deserted.

The distributors stopped asking for price reductions and instead demanded returns and refunds, because they knew that Hasee wouldn't stay at 1999, and keeping the stock was tantamount to waiting to die.

In just three days, the Shenzhou Computer empire collapsed at a speed visible to the naked eye.

In Shenxia City, in front of the headquarters building of Shenzhou Computer, some suppliers and angry small agents who had rushed over after hearing the news even gathered, holding banners demanding "Give us back our hard-earned money".

Wu Jun stood in front of the floor-to-ceiling window in his office, looking at the chaotic scene below, his face ashen.

In just over ten days, he went from an ambitious entrepreneur to the head of a bankrupt company.

He knew that China was doomed.

The only way to maintain some semblance of dignity now is to find someone to take over the debt, pay it off as much as possible, and preserve the last bit of reputation.

At the same time, Lianxiang Group also fell into great chaos.

Glory's sudden entry into the battle disrupted all of Yang Yuanqing's plans.

"Mr. Yang! Our daily sales have plummeted by 27%."

"Several distributors have requested to suspend deliveries and have asked us whether we should follow suit with price reductions."

"The capital market reacted violently, and our stock price hit the daily limit down at the opening."

Pressure came crashing down from all directions.

Should we follow suit and lower the price?

Drop to 1999?

Lianxiang's massive system, high brand costs, and R&D investment simply do not allow it to engage in such reckless behavior.

Even with the support of Microsoft and IBM, they couldn't afford to burn that much money.

With the backing of Momo Group's entire ecosystem and overseas profits, Honor is clearly prepared for a long-term battle.

Not lowering prices would mean handing over the low-to-mid-range market, and even most of the mainstream market, to Honor.

The image of Lianxiang National Computer will plummet.

Yang Yuanqing found herself in a dilemma.

He originally intended to use a price war to clear the market, but instead attracted an even more ruthless competitor.

Inside the president's office of Momo Group, at the eye of the storm, Cheng Yi listened to Li Xiang's report on market feedback without any change in expression.

"President Cheng, Wu Jun has come again, could you please take a look?" Li Weiwei asked softly from the side.

Cheng Yi picked up his teacup, blew on it gently, and said calmly, "Tell President Wu that Momo Group can take over this mess. Out of social responsibility, we will assume all of Shenzhou's debts and properly resettle the employees. As for the acquisition price..."

He paused, then said, "Let him come to Jingzhou to talk."

"Yes, I'll arrange it right away."

The atmosphere in the conference room at the headquarters of Momo Group in Jingzhou was somewhat somber.

Unlike when Wu Jun came a week ago, this time it was a very serious business negotiation.

Wu Jun, accompanied by two lawyers and the financial director, sat on one side of the conference table. He looked haggard, with sunken eyes, as if he hadn't slept for days and nights.

Opposite them was the Momo team, led by Cheng Yi and composed of Li Xiang, Huang Wenrong, and the group's legal elites.

Cheng Yi's expression was calm, even with a hint of just the right amount of regret, as he said, "President Wu, I deeply regret the current situation of Shenzhou."

Wu Jun gave a bitter smile and said, "President Cheng, I won't stand on ceremony with you. Your team should have already investigated the current situation of Shenzhou. For this acquisition, I only hope that Momo Group can offer relatively fair terms so that Shenzhou can have a decent ending and that the employees and suppliers who have been with us for so many years can receive some compensation."

Cheng Yi nodded and glanced at Huang Wenrong.

Huang Wenrong adjusted his gold-rimmed glasses, took out a pre-prepared plan, and said in a calm tone, "President Wu, after our preliminary due diligence and evaluation, this is the acquisition plan for Momo Group. Let me read it to you."

"First, Momo Group's Glory Computer Co., Ltd. acquired all ownership rights, patents, and trademarks of the Shenzhou Computer brand for a symbolic price of 1 RMB."

"Second, regarding the existing debts of Shenzhou Computer, after verification, Momo Group is willing to assume all debts."

"Third, we are willing to accept all existing employees of Shenzhou Computer, and in principle, we will not reduce their salaries."

The conditions seem extremely harsh, but just the debt alone is worth hundreds of millions.

Just as his lawyer was about to speak in his defense, Wu Jun stopped him with a look.

Wu Jun took a deep breath and said, "President Cheng, President Huang, I accept this condition."

Struggling now is pointless.

Compared to complete bankruptcy liquidation, this would leave employees homeless and suppliers with nothing.

This result, at least, preserved something.

The brand survived, most employees found new jobs, and most suppliers were able to recover most of their money.

This is the best possible outcome he can find for China at present.

(End of this chapter)