All the major MP3 brands formed an anti-Mango alliance. Not only did they give a stern warning to the two companies that were working with Mango, but they also gave an ultimatum to the other OEMs in the industry. There was only one principle: Whoever cooperated with Mango would be everyone's enemy and would be boycotted by the entire industry.
The companies that did not cooperate with Mango were secretly relieved. At the same time, they held an emergency meeting and requested not to cooperate with any other companies that were related to Mango and Easy Listening. Now, the entire MP3 industry was divided into three camps. One was the high-end Japanese and Korean import camp. They were selling their products for their brand, so they did not care too much about the price war. The other camp was in the middle, which relied on the price-performance ratio to snatch jobs from the Japanese and Korean companies. Now, they were defeated by Mango with their price-performance ratio. They occupied more than 70% of the market share in the entire industry. The last camp was the newly emerged Mango.
The war between the latter two camps was imminent. Therefore, it was time for the OEMs to pick a side.
Without a doubt, everyone was trying to make money. No one dared to go against the entire industry. Therefore, Mango was isolated by the industry even before it was officially released.
The only two "comrades-in-arms" left by his side were the OEM partners whom Li Mu had tied to his side with more than 20 million in cash.
These two OEMs kept receiving threats and warnings from their other partners, asking them to stop working with Mango immediately. However, they had no choice but to do so.
To prevent themselves from becoming the target of the entire industry, these two companies called and sent messages back to their partners, telling them that they were forced to do so. Each of them had taken more than 10 million from Makino Technology, and the money was used to invest in new production lines. If they were to break the contract now, they would have to pay more than 100 million. As OEMs, their annual profits were not that much. If they were to lose 100 million for no reason, they would lose at least two to three years of net profit.
When the major MP3 brands received the replies from these two companies, they scolded Mango for being shameless and continued to threaten these two companies. Their attitude was simple. We don't care what kind of contract you signed with Mango. We only care about the results. If you continue to manufacture products for Mango and help Mango suppress other brands, we will immediately terminate the contract and never work with these two companies again.
Most OEMs were signed once a month or once a quarter. Since the brands were the first party, their liability for breach of contract was very light. At most, they would have to pay tens of thousands or hundreds of thousands of yuan to immediately stop working with the OEMs. At this time, they would definitely be willing to bear the cost of breaching the contract.
The two OEMs almost went crazy. More than 80% of their production was given to these brands. If they really stopped working with them, what would they earn in the future?
However, if they didn't follow the contract and manufacture more than a million units for Mango, the compensation they would have to pay would be even higher.
After weighing the pros and cons, the two OEMs decided to ask Mango's representative at the same time. They vaguely hinted that they might not be able to work with Mango due to the pressure. In the end, Mango's representative said, "You can talk to me about the details of the cooperation. If it involves legal issues, don't talk to me. Talk to our legal department. Our legal department's phone number is …"
Mango didn't have the slightest leeway. In order to completely isolate Mango, the other MP3 brands had already started to prepare contract termination letters. They wanted to completely terminate their contracts with these two companies. Instantly, these two companies fell into despair.
When the front-end commercial department of Makino Technology received this news and immediately reported it to Li Mu, Li Mu was in a meeting with Liu Xiaodong's team on Taobao.
Li Mu was in a good mood when he heard about this over the phone. He instructed the other party, "Pay close attention to the situation here. If those MP3 companies really terminate their contracts, you will immediately follow up with them on behalf of Mango and take over all their spare production capacity. However, don't say this now. Wait until they are desperate before talking to them."
The front-end commercial department immediately understood. "Don't worry, Li Zong, I understand."
After hanging up the phone, Li Mu smiled and said to everyone in the meeting, "Our Mango brand and Easy Hearing are now on the blacklist of the MP3 industry."
Everyone looked at Li Mu curiously, waiting for more details.
Li Mu continued, "The current situation is that most of the MP3 brands have formed an alliance to specifically target Mango and Easy Hearing. They are collectively pressuring all the OEMs not to cooperate with us and manufacture products for us. Now, most of the MP3 OEMs have also expressed that they will not cooperate with us in any form."
Hearing this, some people were surprised, and some were quite worried. However, Liu Xiaodong was smiling exceptionally brightly.
Of course, Li Mu's smile was also very bright.
Liu Xiaodong said, "Didn't we already sign more than two million OEMs with these two companies? We also paid the deposit in advance. If they don't deliver the products to us, we will be asked to pay ten times the penalty, right? "
Li Mu nodded and smiled. "To be precise, it's 2.65 million units. The company in Shenzhen signed 1.6 million units, and the company in Taiwan signed 1.05 million units."
Liu Xiaodong said, "2.65 million units is enough to provide a strong impetus to Taobao. Moreover, this amount of products is enough to have a huge impact on this industry."
Li Mu looked at him and asked with a smile, "Boss Liu, you were smiling so happily just now. It's definitely not because of this. Why don't you tell us what you're smiling about?"
Liu Xiaodong said, "I see that you're smiling much more happily than me. Why don't you go first?"
Li Mu waved his hand and said, "Go ahead. I believe in your business sense."
Liu Xiaodong smiled and said, "Since Li Zong is praising me so much, I'll take the liberty to say a few words."
Then, Liu Xiaodong cleared his throat and said, "I'm happy because not only have we attracted the attention of the entire MP3 player industry, but we've even scared them. This also proves that our influence is very strong now. They just want to limit our production capacity, but if they know that we will ship more than two million units this year, I'm afraid they will be so nervous that they won't be able to sleep. By then, they will also realize that they have no way to stop our development. They can only try their best to reduce their prices."
Speaking up to this point, Liu Xiaodong deliberately paused, looked at everyone with a smile on his face, and said, "The cost of our Mango is basically the same as other brands, but we've won in product design and sales channels. If we can prove the sales ability of Taobao, these brands will definitely choose Taobao as their new sales channel in order to reduce costs and increase sales. I believe that it won't be long before half of the country's MP3 sales will be concentrated on Taobao."
After Liu Xiaodong finished speaking, he looked at Li Mu. Li Mu smiled and took the lead to applaud. "Well said, Mr. Liu. Why do we want to make Mango, and why do we want to sell Mango-ME without making a single cent? The reason is not because the MP3 player market has a lot of room for development, but because the demand for electronic products is constantly increasing. The market for PC, PC accessories, laptops, MP3 players, digital cameras, and other products will continue to increase. The cost of traditional sales channels is too high, but the cost of online sales is much lower. With the lower cost, the price will naturally fall. People will naturally feel that the same thing is much cheaper online, and naturally, they will be more inclined to buy it online.
"For manufacturers, they don't need to share their profits with distributors, and they don't need to build stores, run markets, and build channels. They only need to open an official flagship store on Taobao, and they can sell their products to the whole country. For ordinary sellers, if they have offline stores, they can only sell their products locally. However, if they open an online store, they don't need to spend any money, and they can sell their products to the whole country. Why not? If they don't have an offline store, but they have a certain source of goods, that's even more suitable. They don't need to spend a single cent to invest in a store. All they need to do is register a seller account on Taobao, and they can open an online store on Taobao. Why not?
"To us, although Mango-ME isn't profitable, it can cultivate users' online shopping habits. It will let users know about online shopping, understand online shopping, and use online shopping. As long as users take this step, it will be equivalent to providing the best driving force for Taobao's development. Some students might say that our Mango-ME stock is insufficient. With so many users paying attention to reservations, perhaps only 1% of them will be able to buy Mango-ME. However, this is not a problem we need to worry about. We didn't intend to sell Mango-ME to all users. Our goal is to let all potential users pay attention to Mango-ME, and then Taobao. As long as they start paying attention to Taobao, we have already succeeded!"
Li Mu paused for a while and said, "Just now, I received a call from Mango's front-end business department. The two companies that manufacture Mango have been isolated by other MP3 brands. These brands are threatening them. If they don't stop working with us, all the other brands will stop working with them. Fortunately, we have prepared a plan in advance. These two companies will not dare to offend us, even if they offend all the MP3 brands. They can't afford to offend us. Now, those MP3 brands are stupid enough to use this method to force them to choose a side. Once they terminate their contracts and release their production, we will buy all of them! Every Mango-ME sold from Taobao is the cornerstone of Taobao's development! "
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