Tech startup: I really do make mobile phones!

Chapter 178 Changes in the Marketing Department
Summer sunlight streamed through the huge floor-to-ceiling windows, casting bright spots of light on Chen Mo's tidy desk.

He was staring intently at the computer screen, a playful smile playing on his lips.

The screen is playing a fresh, in-depth review of the "Orange 2" by Wang Gehu, a tech reviewer on the Youku platform.

The opening scene shows Wang Gehu wearing his signature white anti-static gloves, holding the Orange 2 steadily as if it were a work of art, under the cold laboratory lights.

The camera zooms in on the phone's sharp, angular frame. (Time for a subtle advertisement from the sponsor)

"The most sincere technological innovation for everyone in 2011!" His deep, magnetic voice rang out: "Today, we're going to use 200 rigorous tests to uncover the secrets behind its 699 yuan price tag!"

With the camera switched, the high-precision laser goniometer steadily aligned with the "MYT-2.0 gyroscope" marked on the internal structure icon of the phone.

"0.001° accuracy promised? Actual measured deviation is only 0.0007°!"

Wang Gehu's voice rose, tinged with barely perceptible astonishment: "30% higher than promised at the official press conference!"

The scene instantly switches to the perspective of a high-speed camera: a shiny metal ball is undergoing a horizontal vibration balance test on the screen of the Orange 2, rolling steadily on the screen surface without any sign of falling.

Next up is the ultimate battery challenge, a heart-stopping battery puncture test scenario.

Wang Gehu calmly attached the temperature sensor probe, and the reading was displayed in real time beside him.

"After the puncture, the temperature of the gaseous lithium battery casing was only 38°C, which is basically the same temperature as a woman's bath water!"

He pushed up his glasses, and the camera captured his sharp gaze behind the lenses: "This is a full 61°C lower than mainstream competitors, safe! It's not a gimmick, it's a real engineering marvel."

Next came the complex oscilloscope circuitry, connected to the disassembled "MTW-1 micro motor" assembly.

"0.08-second feedback delay."

The waveform is jumping wildly on the screen!
"Nearly 12 times faster than a traditional rotor motor!"

He paused suddenly, thoughtfully adjusting his glasses: "To control costs to this extent, when we disassembled it, we found that they used a unique finned heat dissipation structure."

The camera gives a close-up of the intricate internal heat dissipation copper fin structure.

The final conclusion is that a giant beaker effect appears in the center of the screen, with 699 coins clattering down and piling up into a small mountain.

"While our competitors are still piling up cold, hard specs!" Wang Gehu's voice was full of power: "The Orange 2 redefines the standard for budget smartphones with its hardcore technology where every penny of the cost is visible!"

"Heh," Chen Mo chuckled softly, leaning back in his leather chair.

This seemingly professional and objective assessment, which was clearly biased, was exactly what he wanted.

As expected of Chengzi's team, Wang Gehu contacted the core testing laboratory.

This endorsement carries significant weight for the target user group, those "tech guys" who value cost-effectiveness and practical technology.

Click the mouse, and the screen will redirect to Bilibili.

Another content creator with a completely different style, [Zhongchenjiang], has video titles that exude a silly vibe: "Buy a phone for 699 and get a cyber therapist free? Orange 2 modified!"

Zhong Chenjiang mainly focuses on cyber-electronic antics.

With her signature messy, unkempt hair, Zhong Chen suddenly leaped into the frame, brimming with energy: "Family! Major invention! I've transformed the 699 Orange 2 into a top-of-the-line fascia gun worth 6999!!!"

The camera cuts to a picture of an Orange 2 phone bound tightly to his arm with strong tape, vibrating wildly and constantly switching frequencies, making a buzzing sound.

A silly developer's diary: a rudimentary code interface flashes quickly across the screen, with a line of crude logic standing out: if(gyroscope tilt){vibration motor power++}.

Accompanied by flashy bullet comments: "A medical miracle: Electronic acupuncture! Unblocking the Ren and Du meridians is no longer a dream!"

Next comes the confusing usage scenarios.

Zhong Chenjiang was sitting on the sofa with a look of "enjoyment" on her face, her legs propped up on the coffee table and her phone resting on her calves.

He opened a modified version of the game "Orange Run," and his phone vibrated wildly as the character jumped and rolled in the game.

"Ouch~ This force!" He contorted his face exaggeratedly, making a sound that could be mistaken for a real massage: "It's even more powerful than the blind masseur downstairs!"

Before the words were finished, the screen suddenly went black, and several large words popped up in the center: "Half an hour later."

When it lit up again, only a cruel message remained on the phone screen: "Battery dead!"

Just then, the doorbell rang.

The deliveryman handed over a beautifully packaged genuine massage device.

Zhong Chenjiang, clutching her completely drained Orange 2 phone, let out a bloodcurdling wail at the camera: "No! This isn't the massage device I wanted! My cyber therapist, revive me!!!"

When the miniB plug is inserted into the charging port, a prominent charging countdown pops up at the bottom of the screen: [Resurrection Countdown: 3029]

"Pfft!" Chen Mo almost spat out the mouthful of water he had just drunk. He blinked, his expression a little subtle.

This content creator's approach is really wild!

Although the video was incredibly well-received, with a barrage of "hahaha" and "genius" comments, and its viewership visibly surpassed Wang Gehu's professional review, Chen Mo's premonition that "something was not right" grew even stronger.

This drastically modified "Orange Treasure Coolpad" has become "Orange Treasure Massage." And they're ignoring safety warnings?

If users use gyroscopes and micromotors like this, the Orange 2's lifespan won't even last the designed three years!

What decent person would leave their phone's gyroscope and vibration motor running for over half an hour just for a massage?

But forget it. Considering the terrifying amount of traffic, everyone probably won't follow Zhong Chenjiang's example and use Orange 2 to create some kind of mess. Chen Mo shook his head and temporarily suppressed this worry.

In contrast, the reports from traditional and online media were much more "normal," focusing uniformly on keywords such as "price cutter," "lower-tier market," "squeezing out counterfeit space," and "technology for all," with an overall positive and uplifting atmosphere.

Well! To put it simply, the current ecosystem of Orange phones is somewhat similar to that of the later-emerging "Red Wheat phones." Lei Jun's current Wheat phones are still focused on mid-range cost-effectiveness, similar to the Meizu M9, rather than being price killers in the lower-tier market.

"Knock knock!" There was a knock on the office door, and the secretary, Zhou Yumeng, poked her head in, her voice crisp and clear: "President Chen, President Zhao has arrived!"

“Okay, let him in!” Chen Mo replied.

Zhou Yumeng stepped aside, and Zhao Tiezhu's increasingly robust figure burst in, carrying a thick folder under his arm.

Chen Mo waved his hand, indicating that Zhou Yumeng could leave.

Zhao Tiezhu didn't stand on ceremony. He plopped down into the large reception sofa, casually tossed the documents onto the coffee table, and then very naturally picked up the expensive celadon cup on the coffee table and gulped it down, his Adam's apple bobbing violently.

Chen Mo chuckled at the sight, got up and walked over, picked up another small celadon cup, and slowly began to brew tea.

"Hey Tiezhu, are you trying to mooch water from me because you think the water in your office isn't sweet enough?"

Zhao Tiezhu put down his cup, wiped his mouth, chuckled, revealing two rows of big white teeth: "Hehe! Brother Chen, isn't that strange?"
Even though you had Sister Gong replace the water in my office with the same high-end stuff as yours, I still feel that the water from Brother Chen's place tastes much better!

"Haha! You're acting innocent after getting the benefits, aren't you!" Chen Mo laughed, took a sip of the warm tea he had just brewed, and then put it down: "Hurry up and tell me about Orange 2's performance this week!"

Having been cooped up in the office all day, Chen Mo reflected on his hiking experiences this year and realized that he had only climbed the Great Wall once in April when he went to Beijing with Wei Ge. After that, he had been staying in the office almost every day and had not gone out since.

He was getting really bored if he didn't hear some good news soon.

Chen Mo gradually began to understand why Ali Ma said that earning 20,000 to 30,000 yuan in China might be the happiest time for you.

"Alright!" Zhao Tiezhu's smile faded, and he became serious, flipping open the report that Lin Xiaoxia had meticulously prepared: "Brother Chen, the first week sales of Orange 2 have exploded!"

Orange 2 Mobile Phone First Week Sales Channel Analysis Report:
Sales Overview
First week sales: 68.2 units!

When Zhao Tiezhu read out the number, his voice was filled with excitement. Last year, the Orange 1's first-week sales were only 52 units, so this was already a significant improvement.

It's worth noting that other mobile phone manufacturers are already doing well if they can maintain their original rapid growth momentum, but Orange not only didn't slow down, but it was able to go even further.

This is undoubtedly a pleasant surprise that exceeded industry expectations, and it is also the best reward for the company's dedication to refining its products over the past six months.

Channel distribution:

Strong distribution network in North China: 31.9 units (46.8% of total sales)
"Our established distribution channels are rock solid!"

尼采体系渠道：13万台（19.2%）=直营店9.6万台（14.1%）+电视购物3.4万台（5.1%）

"This Nietzsche TV shopping channel is getting worse and worse!" Internet channels (17.8%): 12.1 units
"The online press conference started strong, but then it fizzled out!"

Southwest Orange Direct Stores (16.4%): 11.2 units
"Brother Chen! The 50 directly operated stores in Southwest China under Manager Chen's jurisdiction are really impressive. Each store sells an average of 320 units per day, while the industry average is only 150 units per day. Our competitors must be green with envy!"

After reporting on the channel situation, Zhao Tiezhu began to report on the marketing department's strategic recommendations.

Strengthen offline advantages: Pilot a hybrid model of "distribution + direct operation and franchising" in North China to enhance terminal price control capabilities.

Optimize Nietzsche channels: Reduce investment in inefficient TV shopping and shift to short video live streaming e-commerce.

Accelerating through internet channels: Partnering with Jingdong to offer limited-time subsidies and create blockbuster SKUs.

Regional expansion: Centered on the southwest, we will radiate to the west and northwest, opening new Orange direct-sale stores, specifically targeting densely populated second- and third-tier central cities!

Chen Mo picked up his small teacup, took a sip of tea, and listened to Zhao Tiezhu's report while his mind raced.

This regional expansion is worth considering, as it aligns with Orange's strategic plan to first establish itself in lower-tier markets, but it also involves acquiring strong distributors in North China.
Chen Mo shook his head, put down his teacup, and laughed, "Tiezhu, these suggestions... were they written by Lin Xiaxia? The ideas are quite ambitious, but isn't it a bit too much to just start targeting distributors now?"

"Brother Chen is brilliant! I also think that taking action against the strong distributors in North China right now is a bit of a hot potato!"

Zhao Tiezhu chuckled and earnestly offered his advice.

"However, if we could acquire one or two major distributors under the North China Strong, it would definitely be of great benefit to our control over terminal prices and the enhancement of our brand image!"

“The logic is sound,” Chen Mo tapped the sofa armrest lightly with his finger, “but it’s not the right time yet!”

"Nearly half of our goods are still relying on Huaqiang's strong distribution network to go out. Now we're going to talk to them about 'acquiring' them?"
The cost is too high. If we can't reach an agreement, we'll easily be held hostage and have the other party raise the price on the spot.

"When our own oranges' directly operated stores in second- and third-tier cities, plus Nietzsche's rural stores, combined, can support half the business, and we have enough leverage, then it will be the right time to talk about 'acquiring' them!"

Zhao Tiezhu picked up his pen and deftly crossed out the suggestion: "Understood! This plan to acquire the strong distributors in North China will be shelved for now!"

The marketing department's second suggestion was to optimize Nietzsche's TV shopping channel.

“Speaking of Nietzsche!” Zhao Tiezhu turned to the relevant page of the report: “Lu Laowu has sent word that he has found a ‘financial backer’ willing to take over the 32.63% of the shares to be disposed of. He’s just waiting for you, Brother Chen, to take some time to go to Yingtian for a shareholders’ meeting and sign the papers!”

"Great!" Chen Mo nodded. "Perfect timing. I'll go there myself and give our CEO Lu a good 'advice': while the TV shopping business is still profitable, we should quickly find a new buyer!"

TV shopping will be phased out sooner or later, but Nietzsche can keep those teams that do live-streaming e-commerce.

Zhao Tiezhu was amused.

"Brother Chen, with you in charge, would Lu Laowu dare to disobey? Nietzsche's research and development is in the hands of our Orange Technology Department, and we also handle the manufacturing. He benefits from following us, so he naturally knows which side to stand on!"

Chen Mo smiled and gave him a subtle nudge: "Stop saying things that could affect unity. Orange and Nietzsche are strategic allies, it's mutually beneficial. He makes money with us, so naturally he's willing to cooperate!"

Zhao Tiezhu couldn't help but smile, then paused, his eyes becoming serious.

"But Brother Chen, there's something else you can do for me when you go to Nietzsche this time!"

"At Nietzsche's OEM factory in Futian, after our collaboration with Nietzsche on orders, the yield rate has stabilized at around 96%, which is quite good. We at Orange need such a stable and reliable in-house assembly plant to ensure consistent quality."

Chen Mo immediately understood: "You mean to 'get' Futian's factory under Orange's name?"

"Hmm!" A glint flashed in Zhao Tiezhu's eyes. "I've already asked Sister Gong. Before the new shareholders come in, let Nietzsche distribute some of the 'idle money' in the account as dividends."

"The money we've received should be enough for us to buy Futian's factory!"

Chen Mo couldn't help but chuckle: "You've been planning this for a long time, haven't you!"

Zhao Tiezhu clapped his hands with the report and chuckled.

"Brother Chen! This is like us buying Nietzsche (shares) first, letting it go out and make money to redeem itself (dividends), and then it even provides us with 'living expenses' (contract manufacturing)! This is a great deal!"

Chen Mo was amused by his analogy: "Your analogy is rough, but it makes sense. But don't use that analogy next time!"

The marketing department's third targeted suggestion was to accelerate the development of online channels.

Chen Mo looked at the data on the report: "Online viewership in the first week: 10 (first day) + 2.1 (last six days)" and shook his head with a smile.

"It seems like we really can't rely on online sales anymore. After the initial surge, we're completely done for!"

Zhao Tiezhu sighed helplessly, "That's right. I originally wanted to just cross this suggestion out, since you, Brother Chen, have said before that our Orange doesn't have an internet gene, but Xia's analysis report is right here!"

He pointed to the report appendix: "She said that e-commerce and social media marketing are the future trends. Whether we should make a move in advance to secure a spot is up to you, Brother Chen!"

Chen Mo fell into deep thought.

The future sales model will indeed see an increasing proportion of online sales, after all, it's not just mobile phones that can be bought online, even cars can be bought online now.

But a key statistic flashed into his mind: in the smartphone industry, the sales ratio of online to offline has remained stable at around 3:7 for a long time!

Without the internet DNA and ecosystem support of wheat, oranges are forcibly using limited resources to fight online, which is too inefficient and yields half the results with twice the effort.

In contrast, in the past, OPPO and Vivo cultivated the offline market for many years and lived a very comfortable life. Even Lei Jun's Wheat, after reaching its online peak, frantically expanded its offline "Wheat Home" stores to seek stability.
His thoughts became clear instantly.

"Our path for Orange is offline, through Orange's directly operated stores!" Chen Mo said firmly. "We can maintain the status quo for internet channels; there's no need to force it. We should focus all our resources on expanding our directly operated stores!"

His gaze swept over the first supplementary recommendation in the report (regional expansion), and he added directly.

"I agree with the direction of opening new stores in the west and northwest!"

"and"

He looked at Zhao Tiezhu with a playful smile in his eyes.

"Since this regional expansion plan was strongly promoted by Lin Xiaxia, let her choose a region (west or northwest) to be responsible for the preliminary market research, site selection and team building. Give her a chance to learn!"

Zhao Tiezhu was taken aback, and the scar on his right eyebrow twitched habitually.

"Brother Chen? Are you planning to promote Lin Xiaxia? Send her out to take charge on her own?"

Chen Mo looked at him with a half-smile: "What? Afraid she'll come back and take your position as head of the marketing department? Or worried that your trusted 'Millionaire Brother's' promotion path will be blocked?"

"Hey, Brother Chen! Look at what you're saying! If you tell me to go east, I'll never go west; if you tell me to chase a dog, I'll never catch a chicken!" Zhao Tiezhu quickly waved his hand and said with a sheepish smile, "Brother Chen, just say the word, and I'll be your driver!"

"I'm mainly happy for Lin Xiaxia! She's the top of our marketing department's 'Four War Gods,' a top student from Fudan University, quick-witted, and her reports are absolutely brilliant!"
The ideas and execution of Orange Waves 1.0 and 2.0 are also top-notch!
I admire her for taking the lead!

"Hmm!" Chen Mo nodded in satisfaction: "Let her go out and explore, and put those beautiful words written in the reports into practice in the real market."

Even top students must understand that not everything theoretically perfect can take root and flourish amidst complex interpersonal relationships and real-world obstacles.

“When she comes back with real-world experience, she’ll move up, and you…” Chen Mo looked at Zhao Tiezhu meaningfully, “it’s time for you to move up too!”

Zhao Tiezhu's heart skipped a beat, and his eyes instantly flashed with a burning light.

Before he could express his opinion excitedly, Chen Mo casually threw out a remark that seemed to carry a hint of sarcasm.

"Didn't you notice? Our office originally had 240 workstations plus 60 reserved ones. Sister Gong has already sent administrative staff to quietly set up those 60 new workstations!"

As soon as Zhao Tiezhu stepped out of Chen Mo's office, he noticed that in the reserved area behind the logistics team's workstations, the administrative staff were already busy setting up new workstations in preparation for welcoming the new employees.

Last year, Orange 1 sold 680 million units. Despite being surrounded by giants and facing unfavorable public opinion, it still managed to carve out a path to success, transforming from a small workshop into a boutique factory.

The Orange 2 achieved an astonishing sales volume of 68.2 units in its first week this year!
With this momentum, he seemed to see Orange Technology gradually taking shape, accelerating towards a wider sea.

When Zhao Tiezhu returned to his office, Chen Mo's words, "You should move up a bit," were like a shot in the arm, filling him with energy.

Inside the general manager's office, Chen Mo walked to the floor-to-ceiling window and looked out at the Shenzhen skyline, where rows of city buildings stood side by side.

68.2 units
This is just the beginning.

He felt that the orange company's development path this year needed to be more prudent.

As long as Orange can weather the current "Warring States Period" of the domestic smartphone market, it will definitely have a place in the future of the domestic smartphone industry.

(End of this chapter)