Just yesterday, I was still at the same place, so I still have a good understanding of the situation there.
Take Hangzhou, where I was, for example. In just three months, 18 new Internet cafes opened in Hangzhou, and a total of 2000 computers were added.
This is only the situation in Hangzhou. Shanghai, Yaodu, and Didu will have far more new Internet cafes than Hangzhou.
According to my estimate, in the whole of 1997, there will be at least 10000 new Internet cafes in the country. Assuming that each Internet cafe will buy 100 computers, this will be a huge market of 1 million computers.
And by the end of 2000, the number of Internet cafes in the country will reach about 100,000. This will be a market of 10 million computers!
Yang Yuanqing stood in front of all the executives and spoke frankly.
The scale of the 10 million computers market had completely stunned all the executives.
One must know that from the 1980s until now, the total number of computers sold by Lenovo is less than 5 million. These Internet cafes are equivalent to two Lenovo. Is this possible?
"Everyone, don't doubt my words. I believe that everyone has been paying attention to the WCG competition recently!" Yang Yuanqing said faintly. When they heard WCG, many executives present secretly looked at Yang Yuanqing's expression.
Everyone in Lenovo knows that Yang Yuanqing and the Daqian have a deep hatred, and WCG is a competition promoted by the Daqian. When Yang Yuanqing mentions the Daqian, his feelings will definitely change.
But to their disappointment, Yang Yuanqing's expression didn't change at all. He still said calmly, "WCG is very popular, and the audience in the country has exceeded millions."
"This shows that the computer game market of Hua Xia is very large. There are 200 million teenagers under the age of 20 in Hua Xia, and as far as I know, 80% of them can't resist the temptation of computer games."
"So it can be said that there are 160 million teenagers in the country who are very eager to come in contact with computers, especially to play computer games!"
"But the current economic level of Hua Xia has determined that the personal computer market based on the family unit can't be fully developed for the time being. Simply put, there is no money. The economy of an ordinary family is not enough to support the cost of buying a computer!"
"Obviously, internet cafes will be the only place where these 160 million youths can come into contact with computers. It will also become the favorite place of all youths!"
"In the past month, I've visited six cities across the country and visited more than 100 internet cafes. These internet cafes are of different sizes. The smallest has 20 computers and the largest has 500 computers. But regardless of the size, these internet cafes are all full."
"If you can't get to the internet café before 6: 00 in the morning, then you might have to spend the whole day loitering around the internet café, waiting for those empty seats!"
"It's all thanks to the Daqian. Half of the people in the internet cafe are playing Diablo OL, and the other half are playing standalone games like Red Alert and StarCraft."
"All in all, the computer game market has unimaginable potential. The internet cafes also have unimaginable potential. But the faster the internet cafes develop, the more computers there will be. So this will be a huge market that will far surpass the ZF market and the personal computer market. Whoever can capture the internet cafes will be able to capture the entire future of Hua Xia's computer industry!"
Yang Yuanqing finally finished his words, but it also made all the executives present fall into deep thought.
Although they didn't welcome Yang Yuanqing, they couldn't ignore his words. Yang Yuanqing was an ambitious person. Therefore, at this critical moment when he was about to rise again, he would never drop the ball or tell a lie.
Moreover, the executives weren't completely ignorant of internet cafes. Many of them had witnessed the super prosperous market of internet cafes, so they basically believed Yang Yuanqing's words.
At most, they felt that it was impossible to sell 10 million computers by the year 2000. This was the result of Yang Yuanqing's exaggeration. But they estimated that there was still a market of 5 million computers.
A market of 5 million was equivalent to Lenovo's sales for more than ten years. They couldn't lose this market. If they lost it, they would be the sinner of Lenovo.
At the very least, the executives still had some spirit and fighting spirit.
"Then, this Xiaomi, how did it snatch 100,000 computers from this market?" One of the executives couldn't help but ask, "Don't they understand that the biggest brand in Hua Xia is our Lenovo computer? Why would they buy a computer from an unknown small brand? "
"Because it's cheap!" Yang Yuanqing chuckled and said, "There are two main reasons why Little Mi could easily obtain an order worth 100,000 yuan!"
"First, Lenovo neglected this market. Or rather, we didn't even know about this market. We didn't do anything about this market!"
"From what I know, when the first few internet cafes opened, they came to Lenovo to order computers. In the end, our customer service staff's tone was very stiff and unfriendly. This made the owners of these internet cafes very angry. They were also very dissatisfied with Lenovo computers. In the end, they chose to buy Xiaomi computers!"
"Second, it's the problem of price. Internet cafes are different from individual users and ZF. Individual users and ZF will care about the brand of the computer. They will identify the brand and buy the computer. "
"But the internet cafes' owners won't. This is because the internet cafes' owners will buy at least two digits worth of computers at one go. The purchase price will be more than 100,000 RMB. So, to them, the price-performance ratio is the most important. They don't care about the brand. They only care about which computer is cheaper under the same specs. They will buy that computer! "
"Moreover, the price of Xiaomi computers is too low. It's so low that the internet cafes' owners can't reject it!" Yang Yuanqing said.
"How low are their prices?" Someone couldn't help but ask.
"Let's take our best model, the LX21, for example. Our retail price is 9,980 RMB for one computer. But Xiaomi's computer with the same specs, excluding the monitor, is 2,499 RMB. And if the monitor is included, the price is 3,499 RMB. "
"What? That's impossible. How can they sell their computers at such a low price? They are destroying the market!" The executives in the room roared.
What a joke. They had spent so much effort to create a PC market with a net profit of more than 300%. In the end, Xiaomi had taken away all their profits. This was not considered destroying the market. It was more like stabbing themselves with a knife!
"Maybe this LX21. Our internal production cost, excluding the monitor, is about 2,400 RMB. But they are selling it at 2,499 RMB. How can they make money at this price? "
"Could it be that their distributors are all charitable people and won't collect any fees from them?" One of the executives asked.
Although Lenovo's LX21 retail price is 9,980 RMB for one computer, the distributors are selling it at 8,500 RMB for one computer. That's equivalent to 1,500 RMB of profit for the distributors.
This is also the reason why all the distributors are doing business with Lenovo. They can earn two months of an ordinary worker's salary from selling one computer. Of course, they will do their best to sell Lenovo computers.
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