The MP3 brand's offensive and defensive alliance was amazingly efficient at critical times. Termination letters poured in like snowflakes. The two OEMs had been isolated by the industry before Mango-ME was even listed. The industry's request was simple and clear. They wanted the two OEMs to immediately stop working with Mango.
As for the contract between the two companies and Mango, the suggestion given by the MP3 companies was to delay it. They would first apply to the court to invalidate the contract and freeze it in the court. Then, they would slowly wrangle over the contract. While the court was still in session, they would first stop Mango's production. As long as their production could not keep up with the demand, they would not have to worry about Mango causing any trouble.
However, there was a huge loophole in this suggestion. The contract itself was signed in black and white, and it was impossible for the court to uphold the invalidation of the contract. Even if the court accepted the OEM companies' request, their request would definitely be rejected. If the OEM companies stopped working before the court gave a clear ruling, Mango would sue the OEM companies according to the contract. The OEM companies would definitely lose the lawsuit. By then, the OEM companies would have to pay a huge sum of money. If they could not pay up, Mango could ask the court to enforce the contract. By then, the OEM companies would be finished.
However, if they continued to produce for Mango, the OEM companies would be in an awkward situation. They would lose most of their orders in a month, and their lives would be on the line.
Other than imposing severe sanctions on Mango's OEM companies, the MP3 industry also had their own opinions on Mango. They had been in the industry for many years, and they knew the cost of MP3 products very well. Mango-ME's price of 368 RMB was definitely not going to make a profit. Including the distribution fees, not only would they not make a profit, but they would also lose a lot of money.
According to their estimations, the OEM cost for each unit of Mango-ME should be around 320 yuan. The remaining 48 yuan, including the tax, was basically nothing. If they were to sell it at that price, the average loss for each unit would be around 100 yuan. Even if Mango had the support of Easy Listening, it was impossible for them to do something so stupid.
In their eyes, no one would be stupid enough to do something that would lose money. There was only one reason why Mango did this. They wanted to rely on Easy Listening's huge influence among music lovers and use this kind of low price marketing to stand out. The biggest possibility was that Mango would only sell a small number of MP3 players at a loss. They would then raise the price and officially sell the MP3 players at a loss.
Based on their understanding, Mango's first batch of MP3 players would not exceed 100,000 units. Although Mango announced that they would sell 100,000 MP3 players at the price of 368 yuan, the industry predicted that Mango would not sell 100,000 units at the price of 368 yuan. It would be impressive if they could sell 20,000 units at that price. The rest of the MP3 players would definitely be sold at a price of more than 468 yuan or even 500 yuan. That would be in line with the market rules.
No matter how Mango tried to attract attention in the beginning, the MP3 industry believed that Mango's ultimate goal was to make money. As long as they wanted to make money, they would definitely raise the price of their products. By that time, their only competitive advantage over other brands would be Mango-ME's outstanding design. Design was nothing. Even if they had the patent, they could still find a way to avoid it and copy it safely.
Therefore, other than putting a lot of pressure on Mango from the OEM level, everyone had come up with a strategy to deal with it.
First, all the brands had to come up with a discount campaign. However, this campaign would only be launched after Mango-ME was launched. The reason was simple. Mango-ME had such a huge publicity campaign, and it was impossible for them to sell 100,000 units at a loss. Therefore, the 368 RMB units would definitely be in short supply. No matter what price Mango would set in the future, once Mango started to raise the price, other brands would immediately launch their own discount campaigns. This would attract the users who could not buy Mango-ME, and the users that Mango could not sell would be digested by other brands.
Secondly, based on Mango-ME's design, they would quickly imitate a few similar products to increase the competitiveness of their own products. At the same time, they would also distract Mango-ME from the market.
However, they did not expect to make such a huge mistake in the first step. From the beginning, Li Mu did not plan to let Mango-ME earn a single cent. Moreover, he did not have the channel costs that other people in the industry thought. 368 RMB was a price that he would not make a loss or a profit. In order to accelerate the development of Taobao, to promote the popularity of MP3 terminals, and to promote the rapid development of the MP3 industry and Easy Listening, he could continue to do it at this price.
Just when all the brands in the MP3 industry thought that they had established the industry's prestige through this method, Mango's front-end business received an order from Li Mu personally. They rushed to the two OEM companies and brought them a piece of life-saving news.
Mango was willing to increase the order based on the contract signed between Mango-ME and the two OEM companies. No matter how much spare capacity the two OEM companies had, Mango would buy it all.
In other words, Mango would sign the contract based on how they signed the first batch of 100,000 units. Mango would not take advantage of the two OEM companies' difficulties to lower the price or raise the requirements. Moreover, the two OEM companies would not have to worry about other companies terminating their contracts. Mango would take over all of their production capacity. Even if the two OEM companies gave all of their production capacity to Mango, Mango would still be able to take it all.
To the two OEM companies, this news was not a lifesaver. It was a lifesaver. It had completely saved them from the predicament they were facing.
At this moment, they did not feel that Mango had set them up. Instead, they felt that the other MP3 companies were too despicable. In order to achieve their goals, they actually used such a method to threaten them. It was as if they were trying to kill them. Previously, they had threatened to stop working with them. Now that they had signed all of their production capacity to Mango, they had no choice but to stop working with them.
Therefore, the legal department of the two OEM companies started to respond to the termination letters with unusual enthusiasm. All the termination letters were immediately signed and stamped, which became legally effective. Then, the signed and stamped contracts were sent back to all the partners who proposed to terminate the contract.
This time, it was the cooperating companies' turn to be dumbfounded. The real purpose of sending the contract termination letters was to force them to take a side. However, they did not expect the two OEM companies to agree so readily. Moreover, they were afraid that they would go back on their word. So, they immediately changed the unilateral contract termination letters into a fully legal document that both parties had agreed to.
Panicking, the major MP3 brands asked around and finally found out that Mango had found the two companies and signed all the MP3 production capacity that they had released after the termination of their contracts.
The major brands in the MP3 industry immediately held an emergency meeting. This time, they wanted to discuss how to defeat Mango in the official market.
Until now, they still believed that Mango would definitely raise the price of the ME. The price of 368 yuan was the price of self-harm. None of the companies present, including Mango, could afford it. They would not participate in the battle of 368 yuan. When Mango had lost enough money and wanted to start making money, they would lose some money together to kill him. If Mango raised the price to around 500 yuan in the end, these companies would work together to lower the price of their competing products to 450 yuan. After Mango had lost all its money, they would work together to kill Mango.
…
Su Yuehua was a little troubled recently.
There was a colleague in her unit who had been competing with her for several years, and they had always been at loggerheads. Both of them were surprisingly similar in many aspects. For example, both of them were graduates from famous universities, both of them were foreigners, and both of them were civil servants in Yanjing. Both of them had a daughter who was about to go to university, and both of them were even talented students. The only difference was that Wang Xinran went to the Film Academy, while her daughter was good at tennis, and this year, she went to the Yanjing Sports University with special admission because she was good at tennis.
Because their situations were too similar and they were in the same department, they had always competed fiercely. The worst thing was that Su Yuehua's image and temperament were a notch higher than the other party's, so the other party had always been angry. He thought that she had many advantages because of her beauty, so he regarded Su Yuehua as his biggest competitor. After years of competition, the two had begun to extend the competition from work to all aspects outside of work.
For example, if Su Yuehua bought a branded dress, she would definitely buy one within three days, and it would definitely be better than Su Yuehua's. If Su Yuehua got a new phone, she would definitely get a better one.
Putting aside the usual competition over food and clothing, what made Su Yuehua's heart the most was that her daughter had failed the art exam, while her daughter had been specially enrolled by the Yanjing Sports University. During that time, she had constantly mocked and ridiculed her at work. She felt that she had finally won against her in a certain aspect and was overjoyed. Later on, her daughter's art exam results were changed back because of Li Mu. This allowed Su Yuehua to finally be able to hold her head high. In the end, she didn't expect her daughter to argue with her about buying a house.
The Yanjing Film Academy and the Yanjing Sports University were separated by a road. Both of them had the intention to buy a house nearby in advance so that it would be convenient for their children to go to school in the future. When Su Yuehua and her husband were looking at real estate, the other party had been paying attention. As long as she heard that Su Yuehua had gone to look at a residential area, she would definitely go and look for a better one. Su Yuehua didn't like anything along the way, so the other party guessed that her current purchasing power was a bit low, so she had been making all kinds of sarcastic remarks around her, mocking Su Yuehua's behavior of looking at houses everywhere but delaying to buy one.
This afternoon, when Wang Shaohua had just picked up Su Yuehua, he found that she was a little depressed. He couldn't help asking her, "What's going on today? Did something unpleasant happen? "
Su Yuehua said angrily, "It's that Zhang Shuqin!"
As soon as Wang Shaohua heard Zhang Shuqin's name, he knew that this woman had been competing with his wife openly and secretly for several years. Usually, she often made trouble for his wife, so he immediately asked her, "What is Zhang Shuqin doing this time?"
"She's showing off. In the past few years, no matter what the fart is, she has to show off. When she buys a bracelet, she has to show off that she asked someone to buy it from the province of Hetian jade; when she buys a bag, she has to say that it was specially bought from Hong Kong. Her daughter was specially recruited by the Ministry of Education, and during the time when our family happily failed the exam, she often made sarcastic remarks about me at work. Recently, she has been mocking us every day about buying a house. Today, she went even further. In public, she said that the buildings around the Film Academy were about to collapse, but we didn't really buy them. She said that the sales lady of the nearby buildings couldn't wait to avoid us."
Wang Shaohua frowned and said with a little anger, "Isn't this person too talkative? What does it have to do with her whether we buy a house or not? "
Su Yuehua's expression was quite gloomy. She said, "She just bought a 130 square meter large three-bedroom apartment with her husband at Hua Fu Mansion on the weekend, and she's already so smug that she doesn't even know what her surname is. After so many years of competition, she finally has something that she can completely beat me in. Isn't she going to use it to make a big fuss?"
After saying this, Su Yuehua was angry. She asked Wang Shaohua with red eyes, "You say, isn't it just buying a house? What's so great about it? Yes, we can't afford a house that costs more than a million yuan, but she didn't have to say those disgusting words in front of so many people at the same time, right? She kept saying how good Hua Fu Mansion was, and deliberately told me, Yuehua, you and your husband haven't been to Hua Fu Mansion to see a house, right? The house there is really good, the environment is good, and the layout is good. She said that there is a small house of 100 square meters. I don't know if there are any left now, so she asked us to hurry up and take a look. It's best if we buy one and we can be neighbors in the future. She also said that if we don't have enough money, we should ask her. We have been colleagues for so many years, so we should help her. You don't know how hateful her face was at that time … "
"She's such a bully!" When Wang Shaohua heard his wife describe these words, he couldn't bear the anger in his heart. He could imagine how bad his wife's mood would be when she was bullied in front of her at work.
Wang Shaohua, who was extremely angry, asked, "Where is she? I'm going to argue with her! "
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