By asking Li Mu to make a request, Li Mu was actually working for the benefit of the entire Hua Xia Internet industry. Regardless of whether he was sincere or not, Department Head Zhen felt that this young man was amazing.
He was amazing because not only did he have achievements that far surpassed his peers, but he also had a vision that far surpassed his peers. Most importantly, he had a perspective that far surpassed most businessmen.
As a result, Department Head Zhen admired Li Mu even more.
Then, Department Head Zhen said to Li Mu, "The Internet is a new product. To be honest, I don't really understand it, but I agree with what you said. We are lagging behind the developed countries in many areas. It's not that we can't do it, but we started late. The developed countries are improving, and so are we, but it's difficult to narrow the gap."
Then, Department Head Zhen asked Li Mu, "What do you think is the biggest gap between us and the Western countries in the Internet industry?"
Li Mu answered without hesitation, "The environment!"
Department Head Zhen asked curiously, "The environment? How do you explain this' environment '? "
Li Mu said, "Steel is made in an electric furnace at 2,000 degrees Celsius, iron is made in a blast furnace at 1,500 degrees Celsius, and slag is made in a clay furnace at 1,000 degrees Celsius. The type of furnace and the temperature determine the environment.
"The requirements for the environment are extremely harsh. If the environment doesn't meet the standards, the products won't meet the standards. There aren't many Internet companies in the country now, and we've just gone through an Internet bubble. Right now, we're in the clay furnace stage. If everyone works together and slowly improves the environment, there will be more Internet companies like Makino Technology, and the industry will naturally become more and more prosperous. However, the capabilities of private enterprises like us are limited. If the country can help the Internet industry, I think it will definitely usher in rapid development!"
Department Head Zhen nodded in agreement with Li Mu's statement. He asked, "How do you think the country should add fuel to the fire in the internet industry?"
Li Mu said seriously, "I hope the country can start with the popularization of home computers and the Internet. The number of computers connected to the Internet is one of the core foundations of the Internet industry. The more computers connected to the Internet, the more netizens there will be, and the stronger the soil, space, and environment for the industry will be."
Department Head Zhen smiled and said, "You answered without hesitation. It looks like you've already thought about it in detail, right?"
Li Mu nodded with a bit of embarrassment and said with a smile, "Replying to Department Head Zhen, I did think about it a bit."
Department Head Zhen nodded. "Since you have an idea, tell me about it."
Li Mu said, "It's like this. The current price of home computers is still a little too high for most households. Although Makino Technology is working with Shenzhou to introduce a low-cost model, Shenzhou's production capacity is limited. Our strength is limited as well. If the country can implement a policy in the future that targets home computers and gives households a certain amount of subsidies, I feel that it will greatly boost the growth of home computers."
As he said that, Li Mu continued, "Furthermore, this is a good opportunity to stimulate domestic demand. A computer costs thousands of dollars, and hardware production also involves a very large industrial chain. If, because of the country's policy, the domestic computer sales increase by another five million units this year, with a unit price of four thousand dollars, the value of the computer industry will increase by as much as twenty billion dollars. Also, if I may be so bold to say, the country doesn't actually need to provide financial subsidies. As long as the manufacturers are given a certain amount of tax incentives, the manufacturers will definitely fully cooperate with the government to implement this policy. I'm even worried that when the time comes, domestic and foreign computer manufacturers will rush to take on this big order!"
Department Head Zhen's interest was immediately piqued. He couldn't help but exclaim, "Your idea is very interesting. Using the government to stimulate the consumption of specific products sounds like it's killing many birds with one stone."
Li Mu said, "It's definitely killing many birds with one stone. If the number of home computers increases, the entire industry chain of hardware production can directly benefit from it. If the number of home computers increases, the number of Internet users will naturally increase as well. The industry chain of the Internet operators will also directly benefit from it. The more home computers that are connected to the Internet, the more netizens there will be.
"If the number of netizens increases greatly, it will give Internet companies more room to develop. For example, if the number of netizens in Taobao increases greatly, the potential customers of Taobao will also increase accordingly. Currently, we are only using Alipay to connect to the wallets of ten to twenty million netizens. If the overall number of netizens increases, the number of netizens connected to Alipay will also increase accordingly. This will drive more netizens to participate in 'impulsive' online consumption. This will further increase the sales of the retail industry … This is a completely positive operating model.
"Continue. Are there any other benefits that I haven't mentioned?" Department Head Zhen nodded approvingly.
Li Mu said, "Actually, this is equivalent to bringing home appliances to the countryside. It's the same as the core purpose of e-commerce to induce consumption. It's to make users who originally didn't have such a strong demand or who didn't have such a strong demand have a strong desire to purchase. This will then transform into a driving force for the economy. If the government can step in, not only will the Internet industry benefit, but the people and enterprises will also benefit. The domestic economic situation will also benefit. The government will also be praised and sought after by netizens and industry insiders for promoting the development of the Internet. At least, it's killing four birds with one stone."
Department Head Zhen nodded thoughtfully. He then raised his head and asked Li Mu, "What do you mean by 'bringing home appliances to the countryside' just now? Can you elaborate?"
When Li Mu saw the puzzled look on Department Head Zhen's face, he realized that the policy of 'bringing home appliances to the countryside' had not been implemented yet. Thinking about it carefully, this policy seemed to be an economic policy that was only implemented in 2008. He had accidentally let it slip.
However, Li Mu's ability to adapt and act cool on the spot was unparalleled. Since this policy would only be implemented a few years later, there was definitely no theory for it yet. Therefore, he boldly said, "Department Head Zhen, 'bringing home appliances to the countryside' is another idea that I came up with to stimulate domestic demand when I had nothing better to do. Hua Xia's rural population base is huge. The 900 million rural population base is even more than the population of the entire Europe. Moreover, the income of rural people is also increasing, but the relative consumption level still needs to be raised.
"Unlike the urban residents, most of the urban residents' consumption area has already begun to break through the 'just need', but the 'just need' of rural residents is still at the 'just need' stage. The most telling example is the household appliances. Let's not talk about other things. Just talking about television and refrigerators, these two kinds of household appliances, urban residents can basically achieve one television and one refrigerator per household. However, rural residents still have a long way to go before they can achieve this ratio.
"At present, be it from the subjective perspective of rural residents or the macro perspective of the country's economy, the consumption of 900 million rural residents urgently needs to be upgraded. However, there has always been a lack of a healthy and powerful means to promote it. If the government can come up with a national policy of 'bringing home appliances to the countryside' for rural residents, then anyone who is a rural resident would be able to purchase two of the most practical household appliances, televisions and refrigerators. In that case, how much purchasing power would the 900 million rural residents have? I'm afraid it would be shockingly huge! "
When Department Head Zhen heard this, he was so excited that even his hands were trembling.
900 million rural residents. It was just a few words, but the weight behind it was beyond imagination!
Li Mu had included 900 million rural residents as soon as he opened his mouth. The scope of coverage was really shocking. However, within such a huge scope, he was able to accurately find the focal point — television and refrigerators!
Television and refrigerators, these two ordinary household appliances, were commonplace for urban residents. However, for rural residents, they were still considered a part of the luxury goods. But to them, did they really not need televisions and refrigerators? They definitely needed them!
Television was the most basic household appliance for living and entertainment. Refrigerators were practical household appliances that could improve the quality and efficiency of life. If it was really as Li Mu said, and the government came forward to carry out a nationwide 'bringing home appliances to the countryside' program and gave government subsidies for these two types of household appliances, what did that mean?
It meant that 900 million rural residents and hundreds of millions of households would be able to sell at least tens of millions of units even if the conversion rate was only 10%!
If it was 20 million, then:
20 million televisions, 30 to 40 billion yuan!
20 million refrigerators, another 30 to 40 billion yuan!
50 million televisions, another 30 to 40 billion yuan!
50 million televisions, another 100 billion yuan!
50 million refrigerators, another 100 billion yuan!
Most importantly, this wasn't just a pipe dream. Everything was too feasible!
If the traditional manufacturing industry could increase sales of 100 billion yuan, it could solve at least hundreds of thousands of jobs, tens of billions of tax revenue, and tens of billions of industrial profits. This was not stimulating domestic demand, but using a rocket to propel domestic demand!
Looking at Li Mu's calm face, Department Head Zhen was about to go crazy. What was wrong with this kid's brain? Why did he always think of problems so simply? Didn't he say that he wanted the government to help promote the popularization of computers? Why did he suddenly think of promoting the popularization of home appliances?
According to his theory of 'bringing home appliances to the countryside', his first suggestion should be 'bringing computers to the city'. However, he had not even finished talking about 'bringing computers to the city'. Why did he suddenly think of 'bringing home appliances to the countryside'?
Did all geniuses think of problems in this way? Could all geniuses be able to draw inferences about other cases from one instance and continuously come up with the constructive ideas of geniuses?
While Department Head Zhen was shocked, he was also quietly calculating the numbers.
If 'bringing computers to the city' could bring in sales of 20 to 30 billion yuan in the computer hardware industry, and if 'bringing home appliances to the countryside' could bring in sales of 100 to 200 billion yuan, then the sum would be too shocking!
Moreover, this kind of economic promotion policy did not have any side effects at all. It would allow consumers to freely choose whether or not to buy based on their own ability. Consumers would not have any objections. For the current manufacturing companies, 200 billion yuan was a huge amount of wealth. For the sake of this wealth, they would definitely do their best to cooperate. The government did not need to invest too much manpower and material resources. Just by relying on the manufacturers and their sales channels, they would be able to push this policy all the way to the end …
A single policy could improve the lives of farmers, promote the economy, stimulate domestic demand, and promote the development of the economy and industry. It could not be any more perfect!
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