Reborn in 08, Public Enemy of Competitors

That morning, all 5000 Meizu M8 units listed on YiTaoGO were sold out again.

Shen Mo glanced at the backend data, picked up the phone, and dialed a number.

"Mr. Huang, all 20,000 units you allocated to us have been sold out."

"I wonder if you have any stock left? Could you spare a little more?"

"I'm sorry, Mr. Shen, we're already sold out offline as well."

Huang Zhang said helplessly, "Distributors all over the country are calling to urge me. My phone hasn't stopped ringing since this morning."

"Yes, Mr. Shen, we really cannot guarantee the supply in the short term."

Bai Yongxiang's voice came through the speakerphone. "Our original goal was to sell 100,000 units in three months, which would have been a great achievement. But in just a few days, we've already sold over 50,000 units online and offline combined."

Shen Mo paused for a moment: "Given Meizu's current production capacity, when will supply be restored?"

"Mr. Shen, as you know, Meizu is just a small factory and can't compare with established brands like Gionee and Tianyu."

Huang Zhang's tone was uncertain, "We are currently planning to expand the production line, but equipment debugging and worker training will take time."

Bai Yongxiang added, "However, providing four to five thousand units to YiTao GO each month should not be a problem."

"Is that so..."

Shen Mo tapped the table lightly twice. "I have a plan that might help Meizu M8 sales take another step forward."

"Please go ahead, Mr. Shen."

"In the middle of each month, Meizu collaborates with YiTao GO to hold a limited-time, limited-quantity pre-sale event, just like this time."

"this……"

"This is called scarcity marketing. By limiting the number of units available for purchase, the Meizu M8 generates buzz and stimulates consumers' desire to buy."

Shen Mo gave a concise explanation.

"Wow, Mr. Shen's move was brilliant! Absolutely brilliant!"

Bai Yongxiang gasped.

Huang Xian hesitated slightly. "Mr. Shen, is this really necessary? Our Meizu M8 can win over consumers with its performance and technology alone. There's no need to continue with purchase limits and quantity restrictions, is there?"

"Mr. Huang, sometimes being out of stock is a bad thing, but it can also be a good thing."

"Scarcity can be a deadly sales weapon."

"Those who manage to snag a bargain will feel as lucky as if they've won the lottery, while those who don't will feel a sense of regret, like they've missed out on a century. This fear of loss is more likely to drive impulsive spending than the desire to gain."

Shen Mo curled his lip. No wonder Meizu got worse and worse under Huang Zhang's management in his previous life.

"Mr. Shen is right."

"Meizu is still a new brand in the mobile phone industry. If it wants to break through among a group of established manufacturers, it really can't take the conventional path."

Bai Yongxiang agreed and persuaded Huang Zhang.

Huang Zhang's attitude softened somewhat: "President Shen, how exactly does your plan work?"

Shen Mo's lips curled slightly: "In the middle of each month, YiTaoGO will release the news three days in advance. In the following 3 to 5 days, there will be a limited number of 5000 units available on a first-come, first-served basis. Once they are sold out, there will be no additional orders or restocking. This will be done for three consecutive months to ensure that the popularity of the Meizu M8 will not drop."

"But Mr. Shen, if users keep failing to purchase them, won't they switch to buying other brands?"

Huang Zhang then raised another practical question.

"Some people will switch to other brands, but many more will become even more persistent because they can't get their hands on them."

Shen Mo said, "There's a saying that goes, 'What you can't have always seems more desirable,' and besides, there's no comparable product to the Meizu M8 in China."

"Then let's do as Mr. Shen says."

Huang Zhang remained silent for a moment before finally speaking up: "But isn't a limit of 5000 units per month too few?"

"No more, only less."

Shen Mo said calmly, "The core of scarcity marketing is 'hunger.' If you feed them too much, they won't be hungry anymore."

Bai Yongxiang couldn't help but admire, "President Shen, who did you learn all this from?"

Shen Mo smiled without saying a word, "Of course it's your old nemesis, Jun'er!"

Back in the day, Xiaomi phones were often sold out instantly during pre-orders, making them impossible for everyone to get their hands on. In reality, the phones that were already in stock were resold to scalpers.

While it appears that the authorities didn't make much money, or even lost money to gain publicity, scalpers actually drove prices sky-high.

Riding on this wave of popularity and public opinion, pre-orders for the phone have been soaring, allowing Xiaomi to use this to negotiate with the OEM manufacturer.

Unfortunately, this approach backfired when it came to car manufacturing. 20 cars in 3 minutes! These are cars, not cell phones!

………………

The Meizu M8's product strength, coupled with traffic from YiTaoGO and the scarcity marketing strategy of using the same product as Xiaomi, led to a steady increase in sales.

Soon it reached the point where the phone was in short supply and online sales were suspended. Many offline stores even went so far as to only have a Meizu M8 promotional poster on their counters, without even having the actual phone, yet pre-orders had already reached double digits.

When Xu Xin relayed this matter to Liu Qiangdong, her tone carried a hint of heartfelt emotion.

"Shen Mo is indeed a bright guy."

"The Meizu M8's only online platform nationwide has undoubtedly brought a huge amount of traffic and users to YiTao GO."

"I've already had someone contact Meizu."

Liu Qiangdong rubbed his eyes. "Let's see if we can open an online channel on Jingdong as well."

"That's not enough."

Xu Xin's tone became more serious, "Jingdong's POP open platform should be put on the agenda."

"Isn't it a bit early? The majority of the Series B funding will be invested in logistics and warehousing."

Liu Qiangdong frowned slightly: "If Jingdong expands its product categories and opens its POP platform now, it's tantamount to going head-to-head with Newegg, Ouku, and Taobao Mall. And in terms of funding..."

"The question now is not 'whether you want to fight,' but 'can you wait?'"

Xu Xin cautioned, "If you don't take the initiative, Ouku, Newegg, and Taobao Mall will slowly grow. Once they've established themselves, it will take you several times more money, time, and effort to compete with them."

Liu Qiangdong nodded slowly: "You're right. Rather than waiting for them to grow up before we fight them, we should strike first before they've established themselves."

"You don't need to worry too much about the money."

Xu Xin said, "If that's really not enough, I can continue to provide you with bridge loans."

"Thank you, Sister Xu."

Liu Qiangdong's expression was more relaxed than before.

"Fortunately, your appliance trade-in program with YiTaoGO is an exclusive partnership, which OuKu doesn't have."

Xu Xin smiled and said, "Judging from the results of the Meizu M8 promotion, Jingdong's performance shouldn't be too bad."

"If the home appliance trade-in program really achieves the expected results, I plan to continue doing it, at least until June 18th."

Liu Qiangdong nodded: "By then, Jingdong must organize a shopping festival that is no less grand than YiTao GO's Double Eleven."

………………

In just one month, Meizu M8 sales exceeded 10 units, and the media reported on it extensively.

"A Chinese miracle! The Meizu M8 ushers in the era of domestically produced smartphones!"

"China's own iPhone sells 100,000 units in a month!"

"EasyGO supports Meizu M8, continuing to set new records for domestic brands!"

"..."

As Huang Zheng read through the news articles, he felt increasingly numb.

My gaze shifted to the sales report from Ouku.com on the table, which showed that sales of feature phones from brands like BBK and OPPO had declined by nearly 2% month-on-month.

Although the magnitude is not large, the overall trend is already very clear.

Smartphones are moving up, while feature phones are moving down.

Ouku.com is deeply integrated with feature phone manufacturers like BBK and OPPO.

"If we don't quickly secure the online sales channels for the Meizu M8, Ouku.com will run into problems sooner or later."

Huang Zheng muttered a few words to himself, and Shen Mo's words came to mind.

The era of feature phones is coming to an end, and smartphones like those from Apple are the beginning of the next decade.

I didn't pay much attention to it at the time, but looking back now, it's terrifying to think about.

The sound of knocking on the door brought me back to reality.

The secretary quickly approached and reported the bad news, "Mr. Huang, Meizu has given their reply."

"So, did Meizu agree?"

"No, Meizu replied that current production capacity is limited. According to the agreement, priority must be given to YiTaoGO's channels. Further cooperation will be considered after the production line is expanded."

"Damn it!"

Huang Zheng looked dejected as he gazed up at the gray sky.

During the Double Eleven and Double Twelve shopping festivals, Ouku.com was making great strides. How did it suddenly fall into trouble?

Did Shen Mo foresee that Ouku.com would end up like this when he invited him to collaborate on the "new project"?

I don't know!