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Chapter 465 Business Strategy

Deep Blue Technology, in the conference room, Li Mu glanced at everyone: "Mr. Liu, please tell me first!"

Liu Tianming, the head of Deep Blue Technology who was hired by Li Mu through a headhunting company with a high salary, said: "Chairman, based on your request, we have screened out the popular new products in the consumer field. In addition to some large items, there are also many suitable ones.

electronic products.”

"For example, smart bracelets, smart speakers, projectors, automatic sweeping robots, balancing cars, drones..."

Li Muchao: "The most important thing for the company's first product is to promote the brand and build awareness. The product should be novel but not too complicated, and the price of a single product should not be too high, so that more consumers can be exposed to our products...

"

Liu Tianming said: "I think the smart bracelet is quite good. It is novel and technological, the product is not complicated, and the unit price of the product is not high. Moreover, it can be used by users personally, making it easier for consumers to remember our brand and make it popular."

Reputation."

Li Mu nodded: "This field is indeed good. It does not require high technical requirements, but it is a fashionable and cutting-edge technology product. The market is also large enough, so it is suitable as our first product..."

After deciding on the product, everyone started discussing how to build the product.

Liu Tianming said: "Chairman, how to position the product? Start with low-end, mid-range, or high-end..."

Li Muchao: "High-end, we must build the Deep Blue brand into a high-end brand from the beginning."

"Moreover, we are different from other high-end brands. We need to learn from Xiaomi in this regard and maintain a very low profit margin on our products, with high quality and low prices, which will make it easier to build our brand."

Liu Tianming: "Is it to learn from Xiaomi and make products with the ultimate cost-effectiveness?"

Li Mudao: "There is no need to ask for the ultimate cost-effectiveness. The ultimate cost-effectiveness is the lowest price achieved on the basis of the same product performance. It does not mean that the quality of the product must be good enough. It just means that it is the most cost-effective among products of the same grade.

This is a proportional relationship between performance and price, not quality."

"For our first bracelet, regardless of the cost-effectiveness issue, we use the highest quality materials and build it according to the highest standards. The sales price will be determined based on the cost."

Liu Tianming said: "I understand."

Li Muchao: "Where's the foundry? Do you think it's suitable? The quality must be guaranteed."

Liu Tianming said: "The domestic OEMs with the best quality are Foxconn, Luxshare Precision, BYD, Flextronics, Pegatron...these large OEMs, Apple, Dell, HP...these large foreign technology brands, generally these are

Purchasing from the factory, the quality is guaranteed.”

"However, compared to some small and medium-sized foundries, the foundry prices of these large foundries may be higher. In addition, the foundry orders must also reach a certain scale. If the order is small, it is not worth opening a production line, and they may not be accepted.

"

Li Muchao: "It's okay if the OEM price is high, as long as the quality is guaranteed. There's no problem with the order. The R&D and design departments must also speed up the progress and strive to make a fashionable and technological bracelet."

"As long as the product is designed, the order will not be small. The first batch of orders should be 200,000 to 300,000 bracelets."

Liu Tianming's eyes lit up and he said: "With this scale, all the major domestic OEMs will not refuse."

Li Mu warned: "Mr. Liu, you have to keep an eye on the R&D and design side. This is our company's first product, and the quality must be the best. In addition, the electronic products that young people buy now have performance.

Appearance is also important, just like Apple."

"So, while ensuring quality, the bracelet must have high appearance. Don't be afraid of high costs, as long as the product is beautiful. You don't have to regard it as a bracelet, treat it as a work of art."

Liu Tianming nodded and said, "Chairman, I understand."

Li Mu smiled and said: "Don't be pressured. For high-end talents in R&D and design, don't stop recruiting. As long as you have the ability, salary is not a problem."

"Okay, I'll stop here. If you have any problems, report them to me in time. You can continue the meeting..."



After leaving Deep Blue Technology, Li Mu returned to the newly established Shangpin Clothing.

When the person in charge, Tao Xingzhi, saw Li Mu coming, he quickly led someone to greet him: "Chairman."

Li Mu nodded: "Old Tao, call the two vice presidents and several department directors, let's have a meeting."

Tao Xingzhi smiled and said: "Okay, Chairman, you go to the conference room first, and I will make arrangements right away."

Entering the conference room and just sitting down, seven or eight senior executives who had just joined Shangpin Clothing filed in and started working.

"Chairman!"

"Hello, Chairman!"



Li Mu smiled at them and nodded, and after another two minutes, he said: "Everyone is here, and you are all elite soldiers and generals that I personally checked and recruited. Next, we need to work together to make Shangpin Clothing."

.”

Then he looked at Tao Xingzhi: "Old Tao, how is the construction of the design department? Do you have any clues about the costume designers you contacted?"

Tao Xing knew: "We already have something in mind. The recent economic situation is not very good, and all walks of life are laying off employees. Our sincerity is enough, and the salary is high enough. Although those designers are good, there is no reason to refuse.

"

Li Mu nodded. This is the truth. The recent economic situation is not very good. The unemployment wave is coming, and a large number of talents have flowed into the market, which is very difficult. This is also the reason why Li Mu has been able to recruit a large number of talents in such a short period of time.

"That's good. I'll tell you about the future development direction and positioning of Shangpin Clothing, and let's have a good communication."

"Shangpin Clothing's future positioning will be mid-to-high-end and high-end brands, and it will not be low-end or mid-to-low-end. Everyone must keep this in mind. It is not easy to cultivate a brand. I hope everyone will work together."

Everyone nodded silently, and some even took out a small notebook and started to remember it.

Tao Xing knew: "Chairman, the domestic high-end brand market is currently occupied by foreign brands. The domestic products are all low-end, mid-to-low-end, and the best ones are mid-range."

"The company has just started. Will it be difficult to directly launch mid-to-high-end or even high-end brands..."

Li Muchao: "Of course there will be difficulties. However, for brands, positioning is very important. If the initial positioning is a mid-to-low-end brand, there is a high probability that it will not be able to compete with high-end brands in the future, and it can only be in the mid-to-low-end market."

"This aspect is what we need to avoid. Directly building a mid-to-high-end brand will naturally be very difficult, but this is the path with the greatest potential. If we can get started and stick to it, the future returns will be beyond imagination."

"Nowadays, in the Internet field and technology field, there are national brands of their own, and they occupy the high-end market of the entire ecological chain; on the other hand, the clothing industry, although it is so big, there are so many domestic brands, but there is a lack of a national brand

, to compete with well-known foreign brands.”

"We, Shangpin Clothing, take this as our goal and strive to build a national brand."

Tao Xingzhi nodded: "What the chairman said makes sense. If you want to run a high-end brand, the initial positioning must be high-end. If you position it at the mid- to low-end from the beginning, there is no possibility of rising to the high-end."

"The positioning of a brand has always been easy to move down, but difficult to move up."

"However, brand building is also a big problem. Especially in China, it is too difficult to build a high-end brand."

Li Muchao: "Then we need to take a different approach and not directly attack the high-end market occupied by foreign brands, but work hard on price and quality?"

Tao Xingzhi was stunned for a moment: "Price and quality?"

Li Muchao: "Yes, price and quality!"

"Compared with other traditional industries, there is a huge difference between the cost and sales price of clothing, and the same is true for higher-end brands."

"It just so happens that we are the world's factory. Those well-known foreign brands that sell well in China are actually manufactured by domestic OEMs. Strictly speaking, domestic clothing brands can fully achieve the quality of foreign first-tier brands."

"This is our confidence and our opportunity?"

Tao Xingzhi said thoughtfully: "What does the chairman mean?"

Li Mu said: "Learn from the original Xiaomi?"

"Before the emergence of Xiaomi mobile phones, the domestic mobile phone market was extremely chaotic. The high-end market was occupied by foreign brands, leaving only some mid- to low-end markets, which were divided up by domestic mobile phone brands."

"Not only that, more than half of the mobile phones in the domestic market at that time were knock-off phones. It's not that people like to buy knock-off phones, it's that knock-off phones are affordable and affordable."

"Especially after the emergence of smart phones, the few smart phone brands in China are quite expensive, so most people will continue to buy copycat phones."

"Until Xiaomi appeared and shouted the slogan of providing the ultimate cost-effectiveness, the hardware was fully stocked, the price was the lowest, and the profit was very little. Relying on this strategy, Xiaomi conquered cities and territories all the way, and several domestic brands were beaten and retreated. It was helpless.

We can only learn from Xiaomi and sell at reduced prices.”

"Even the counterfeit phones, which account for half of the country's market, were helpless. They retreated overnight and soon disappeared."

"In fact, Xiaomi's products are more affordable than knock-off phones, leaving no profit margin for these knock-off phones, so naturally no one makes them."

Tao Xingzhi said in surprise: "Chairman, can we learn from Xiaomi and introduce the spirit of creating the ultimate cost-effectiveness into the clothing industry?"

Li Muchao: "It can't be said completely. What we learned from him is his model, this low-profit model, and we are not learning the ultimate cost-effectiveness."

"We don't need cost-effectiveness. Products that generally emphasize cost-effectiveness are not high-end. Because in order to improve cost-effectiveness and make items look more affordable, some quality and quality will be sacrificed."

"For truly high-end products, no one considers the cost. The higher the quality, the more expensive the product, but it is becoming more and more popular in the high-end market."

Tao Xing knew: "Chairman, what you mean is that our Shangpin Clothing... takes the high-end and affordable route, builds clothes according to the quality of high-end brands, and sells them at extremely favorable prices."

Li Mu nodded: "That's what I mean."

"When the design plan for the clothes comes out, in terms of OEM factories, we will choose those factories that OEM for international first-line brands. Expensive raw materials are not a problem, and high OEM fees are not a problem. As long as the quality and quality are high enough, we will be able to provide products to international brands."

It’s enough to be on par with the big names.”

Tao Xingzhi nodded: "I understand."

Li Muchao: "In terms of selling price, everyone knows that the clothing industry has high profits, and the difference between cost and sales is sometimes several times higher."

"Of course, most of these profits are made by major agents and terminal sellers, so the ex-factory price will not be so high."

"The brands we will launch next must achieve the ultimate in quality, use the highest quality materials and workmanship to create products, and completely match the quality and quality of international first-tier brands. The price must also be the lowest."

"We don't need franchisees or agents. For a period of time in the future, our products will only be sold online, and we will also establish direct-operated stores directly under the company in the future."

"Without the profit sharing by agents and franchisees at all levels, with the same materials, quality and quality, the price of Shangpin can be half or even one-third that of other brands."

"If there was this brand in China, with top-notch workmanship and quality, the price would be only one-half to one-third of other brands, or even lower. Maybe many people who only recognize the brand would still not buy it, but there would be some.

A large number of people who value workmanship and quality more have the desire to buy because of the more favorable prices."

"We will target this group of users next."

Tao Xingzhi's eyes lit up. Although he didn't know what the probability of success would be, this was indeed a way to break into the mid-to-high-end market and let quality speak for itself.



The meeting ended quickly. Under Li Mu's remote control, both companies have been developing rapidly recently, especially the R&D and design departments. Samples have even been released.

On this day, Li Mu was checking his cell phone when a text message suddenly came in. He looked at it and saw that it was Sun Xiaoli: "Li Mu, I'm about to lose my job."

The two often chatted online, and Li Mu said: "Aren't you doing a good job? Why are you going to lose your job?"

Sun Xiaoli said: "The company's economic situation is not good. They said they were going to lay off employees, but there were not many layoffs! I was unlucky enough to be selected."

Li Mu smiled and said: "Then you are very lucky. There are so few layoffs and you can still lay them off. If you don't hurry up and buy a few lottery tickets, you might win the jackpot."

Sun Xiaoli said unhappily: "You are lucky! If I were lucky, I wouldn't be laid off. I'm so angry."

Li Muchao: "Would you like to introduce you to a job?"

Sun Xiaoli said: "Okay, Boss Li, you have opened a company, I want to give you a hug."

Li Mu smiled and said, "Okay! You should know that Sister Man also works here now. You can contact her later and ask her to make arrangements for you."

Sun Xiaoli said: "That's true, thank you, Boss Li, okay!"



After the chat ended, Li Mu called Su Man again.

"Sister Man, have you heard that your old company is going to lay off employees?"

Su Man said: "I've heard people say that it seems to be ineffective. What's wrong?"

Li Mu said: "Sun Xiaoli will probably be unemployed this time. You also know her ability. Although she cannot support big scenes, she is still very practical in her work. She is more than enough to be a grassroots leader."

Su Man said: "Boss, what do you mean..."

Li Mu said: "After all, we are colleagues and have a good relationship. You can arrange to go to Muwu Group or Shangpin Clothing and become a grassroots leader. Choose one of the two and let her choose one."

Su Man said: "Okay, I will contact Sun Xiaoli later. Thank you boss for remembering the old friendship."


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