Chapter 1225 They are destroying the market
Just yesterday, I was still at the place, so I was quite familiar with the situation in the place.
Take Hangzhou City where I am for example. In just three months, Hangzhou has opened 18 new Internet cafes, with a total of nearly 2,000 new computers added.
This is just the situation in Hangzhou. The number of new Internet cafes in cities such as Magic City, Magic City, and Imperial City will be much more than Hangzhou.
According to my estimate, in 1997, there will be at least 10,000 new Internet cafes in the country. Assuming that each Internet cafe purchases 100 computers, this is a huge market for 1 million computers.
By the end of 2000, the number of Internet cafes across the country will reach about 100,000, which is the market size of 10 million computers!
Yang Yuanqing stood in front of all the executives and talked freely.
The market size of 10 million computers completely shocked all executives.
You should know that from the 1980s to the present, the total number of computers sold by Lenovo is less than 5 million. These Internet cafes are equivalent to the number of two Lenovo. Is this possible?
"Don't doubt my statement. I believe everyone has paid attention to the WCG game recently!" Yang Yuanqing said lightly. When he heard WCG, many senior executives present secretly looked at Yang Yuanqing's expression.
All Lenovo people know that Yang Yuanqing and Daqian have deep hatred, and WCG is a competition event promoted by Daqian, when Yang Yuanqing mentioned Daqian, there will definitely be emotional changes.
But to their disappointment, Yang Yuanqing did not change his expression, but said calmly, "WCG was held very hot, with millions of viewers across the country."
"This shows that the computer game market in China is very huge. We have 200 million teenagers under the age of 20 in China. As far as I know, 80% of teenagers cannot resist the temptation of computer games."
"So it can be said that there are 160 million teenagers across the country who are very eager to get in touch with computers, especially those who play computer games!"
"But the current economic level of China also determines that the personal computer market based on families cannot be fully developed for the time being. Simply put, it is because there is no money. The economy of an ordinary family is not enough to support the cost of computer purchases!"
"Then obviously, the Internet cafe has become the only place where these 160 million teenagers can access computers, and it will also become the favorite place for all teenagers!"
"In the past month, I have visited 6 cities across the country and visited more than 100 Internet cafes for inspection. These Internet cafes are large and small, with the minimum size of 20 computers and the maximum of 500 computers. However, no matter whether they are large or small, these Internet cafes are all full."
"If you can't get to the Internet cafe before 6:00 in the morning, then you're likely to spend a day wandering around the Internet cafe, waiting for those empty seats to get off the plane!"
"After all, I have to thank Daqian. Now half of the people in the Internet cafe are playing Diablo OL, and half of them are playing stand-alone games such as Red Alert and StarCraft."
"In short, the computer game market has unimaginable huge potential, and the Internet cafe industry also has unimaginable huge potential. However, the faster the Internet cafe develops, the more demand for computers will be. Therefore, this will be a huge market that far exceeds the ZF market and personal computer users. Whoever can seize the Internet cafe will be able to capture the entire future industry of China's computers!"
Yang Yuanqing finally finished speaking, but it also made all the executives at the scene fall into deep thought.
Although they did not welcome Yang Yuanqing, Yang Yuanqing's words made them unable to ignore them. Yang Yuanqing is an ambitious person, so at this critical moment of his re-emergence, he will never lose his chains and tell lies.
Moreover, executives are not completely unaware of Internet cafes. Many people have witnessed the super prosperous market of Internet cafes, so they basically believe Yang Yuanqing's words.
At most, I feel that by the millennium, there will be no sales of 10 million computers. This is the result of Yang Yuanqing's exaggeration, but there is still a market of 5 million.
A 5 million market is equivalent to Lenovo's sales for more than ten years. This market must not be lost. If it is lost, it is Lenovo's sinner.
The executives are still a little motivated and fighting spirit.
"So, how did Xiaomi snatch 100,000 computers from this market?" Some executives couldn't help but ask, "Don't they understand that the largest brand in China now is our Lenovo computer? How could they buy a computer from an unknown small brand?"
"Because they are cheap!" Yang Yuanqing smiled and said, "The main reasons why Xiaomi can easily win an order of 100,000 are nothing more than two!"
"One is that we, Lenovo, ignore this market, or do not know this market at all, and do nothing to do with this market!"
"As far as I know, when the first few Internet cafes opened, we found Lenovo to order computers. As a result, our customer service staff spoke very stiffly and had a very unfriendly attitude, which made the owners of these Internet cafes very angry and were extremely dissatisfied with Lenovo computers. Finally, they chose to buy Xiaomi computers!"
"Secondly, it's the price issue. Internet cafes and individual users are different from ZF. Individual users and ZF will care about the computer brand and will recognize the brand to buy computers."
"But the Internet cafe owners don't, because the Internet cafe owners also have to buy at least double-digit computers at one time, and the purchase value is more than 100,000 yuan. So for them, cost-effectiveness is the most important thing. They don't care about the brand at all. They only care about which computer is cheaper under the same configuration, so they buy which one!"
"What's more, the price of Xiaomi computers is too low, so low that all Internet cafe owners cannot refuse!" Yang Yuanqing said.
"How low are they?" someone couldn't help asking.
"Take the best model LX21 sold by Lenovo as an example, our unified external retail price is RMB 9,980 per unit, but if the computer with the same configuration of Xiaomi does not include a monitor, the price is RMB 2,499. If the monitor is included, the price is RMB 3,499."
"What, this is impossible, how can they sell the price so low? They are destroying the market!!" The executives present immediately roared.
Just kidding, how much they had lost their energy to create a PC market with a net profit of more than 300%. As a result, Xiaomi eliminated all their profits in a few seconds. This was no longer a destruction of the market, it was just a stab at itself!
"This one is probably the LX21. Our internal production cost is about 2,400 yuan without the display, but they only sell for 2,499 yuan. How do they make money at this price?"
"Are their dealers all good people and won't charge fees?" asked an executive in confusion.
Although the unified retail price of Lenovo's LX21 is RMB 9,980 per unit, the price given to dealers is RMB 8,500 per unit, which is equivalent to the dealer's profit of RMB 1,500.
Chapter completed!