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Just as Zhou Hao and Senior Brother Liu were making final preparations for the launch of Taobao, MP3 manufacturers had a heated discussion about Wangwa.com and Lychee. It was obvious that Lychee was here to steal everyone's jobs, and this kind of troublemaker was the least welcomed in the industry. On the contrary, its appearance made the major manufacturers that were originally fighting each other form an alliance. Everyone firmly believed that no matter how they competed before, they must now unite and come up with an effective strategy to curb the development of Lychee.

The MP3 brands in Beijing held an industry meeting. Early in the morning, the heads of more than a dozen MP3 brands met in the conference center of a hotel in Beijing. As soon as the participants arrived, everyone started a heated discussion. First of all, everyone wanted to know which company this newly emerging Lychee brand belonged to.

Lychee had just started its online promotion, and no one in the MP3 industry knew where this brand came from. Several industry leaders with close connections asked people around to find out, but they were unable to find out anything. However, Wangwa.com did know that this company, which was jointly owned by Haobo Technology and Baidu, could be said to be the mother of the entire MP3 industry.

Before Wangwa.com exposed Lychee, the entire MP3 industry regarded Wangwa.com as the promoter of the industry. If it were not for Wangwa.com, it would probably take a long time for MP3 to become popular. Everyone has been secretly thankful that there is such a dominant MP3 trial listening and downloading website, which has allowed more users to access digital music and gradually abandon traditional playback devices such as cassette players, Walkmans, and CD players. Digital devices are extremely destructive to traditional devices. Once users are exposed to digitalization, they will soon be attracted by the convenience of digitalization, and digital devices will become more and more popular.

But I didn't expect that Wangwa.com, the industry promoter, would turn into our biggest competitor right now, and come up with a product that looks almost perfect, even the price is so perfect.

At the meeting, the entire MP3 industry was wondering how Lychee was priced at 388 yuan?

The boss of an MP3 brand that sells more than 64 units a month said, "At present, the cost of customizing 3MB MP300s from OEM factories is more than 500 yuan, and the selling price is definitely more than 500 yuan. In order to ensure that the channel dealers have profits, our selling price will never be lower than 388 yuan. If it is lower than this price, either we will lose money, or the channel and dealers will lose money. But how did Lychee manage to sell it at yuan?"

The person in charge of Patriot was also puzzled: "In order to compete with Korean brands, we have lowered the profits of each link and barely reduced the price of 64MB to less than 600. Lychee is even more fierce than us in competing with Korean brands. Its price is probably only or yuan higher than the cost price. If the cost and tax of each link are taken into account, they will lose at least yuan for each unit sold. The question is who would do this? Isn't this crazy?"

"We need to figure out whether the price of 388 was set by Lychee or Wangwa. If it was set by Lychee, then they are indeed crazy. But if it was set by Wangwa, then doesn't it mean that Wangwa only customizes products from Lychee, and Wangwa handles other links by itself? Lychee is only responsible for shipping, and all channel costs are borne by Wangwa."

"Where did Wangwa.com get such a large sales channel?" said the brand manager of Great Wall. "Everyone here is a veteran in the industry. You all know how difficult it is to build a nationwide sales channel. We are better off, at least in the PC field we already have a complete sales channel. But for a brand that specializes in MP3, it is very difficult and costly to build a sales channel."

Someone else said, "I don't understand. We have been asking around for the past two days, but we haven't heard anything so far. Lychee will be released in a few days, but there is no movement in their sales channels. Our distributors are spread all over the country, and we have counters in almost every electronics mall, but so far, we haven't seen a single billboard related to Lychee."

The person in charge of innovation said: "It is meaningless for us to study what channels they use to sell products. The current focus is on how we deal with Wangwa.com and Lychee. Our sales have continued to decline in the past two days. As soon as the Lychee advertisement came out, our sales dropped by 60%. This has a huge impact on us."

Although there was competition in the original market, everyone followed the market rules and competed in a fair and friendly manner. However, the emergence of Wangwa.com and Lychee was simply aimed at killing others. If Lychee was really sold at this price, other brands would have no chance of survival.

"Our MP3 sales have dropped by 388% in the past two days!" said the person in charge of Great Wall. "Whether it's the price of 3 or the appearance, Lychee has attracted the attention of all potential MP3 buyers. This can be seen from the number of reservations. Before coming here today, I took a special look and found that the number of reservations has exceeded 6 million. It should be that all potential MP buyers in the country are paying attention to Lychee and are hoping to buy it on the th. Fortunately, the first batch of Lychee only has units. Once these units are absorbed by the market, other buyers will have to settle for our products."

The head of Dihao suddenly had his eyes brightened. "Does anyone know what Lychee's production model is? Do they have their own production line? If not, which OEM manufacturer did they look for? Currently, OEM manufacturers in China, Taiwan, and even South Korea are cooperating with everyone, especially the OEM production lines in China and Taiwan. 80% of the production capacity is given to everyone present. If we can find Lychee's OEM factory and unite to put pressure on the manufacturer, we will definitely be able to strangle its production."

A word to wake up the dreamer.

The words of the person in charge of Dihao made everyone realize the turning point. As long as the production of Lychee is curbed, it doesn't matter how much it sells for, because the market demand is there, and the demand is getting bigger and bigger. No matter how advantageous the price of Lychee is, if its production capacity is insufficient, most buyers will still buy other brands of MP3.

The head of Dihao continued, "According to the current situation, Lychee probably doesn't have its own production capacity yet. As long as we find their OEMs and put collective pressure on them, we will completely cut off their supply, and they won't have a chance to get started. If they turn to prepare their own production lines, it will probably be next year or the year after next before their products are on the market."

Everyone suddenly became excited. Everyone had been thrown off balance by the recent publicity for Lychee, thinking that they and the entire industry were facing a fierce invader. But now after sitting together to discuss, everyone realized that even though Lychee had such a low price and such strong competitiveness, it still had major shortcomings. Once its production capacity could not keep up, it would be powerless and would not be afraid of threats.

At the same time, the two manufacturers in mainland China and Taiwan that are lychee OEMs are also quite anxious.

When they signed the contract, they were only responsible for on-demand production and were unaware of the client's sales strategy. After the Lychee advertisement was posted on Wangwa.com, the manufacturers realized that the company they were cooperating with actually had ambitions to subvert the industry. Lychee's pricing would undoubtedly become the public enemy of the entire industry, and most of their orders and profits came from these brands. They also realized that if Lychee was launched on the market, the sales of other brands would definitely be greatly affected. If they knew that they were Lychee's OEM factory, they would probably cause trouble.

Unexpectedly, this idea soon became a reality.

Dozens of MP3 manufacturers worked together to search for clues. In just one morning, the two manufacturers in mainland China and Taiwan that were OEMs for Lychee were dug out. Subsequently, all the companies that had cooperated with them sent letters accusing the two manufacturers of aiding and abetting, and also gave a tough solution: if they did not immediately stop OEMing for Lychee, they would jointly terminate their cooperation with them.

The two OEMs also felt very depressed. What did Lychee's price war have to do with them? Why did so many manufacturers unite to put pressure on them?

Not only these big OEM customers questioned themselves, but even their peers who were also engaged in MP3 OEM also questioned them, asking why they would cooperate with a troublemaker like Lychee. If Lychee really destroyed the industry or lowered the profit margin of the industry to an extremely low level, it would not only be the MP3 brands that would be harmed, but also the OEM manufacturers like them.

The two OEM manufacturers then realized that when the industry knew that they were OEM for Lychee, they became public enemies of the industry.

They can ignore the clamor of their peers, but these united manufacturers basically account for all their orders except lychee. If they really terminate the cooperation, they will be in trouble. At this time, the two OEM manufacturers have only one idea, which is to sever ties with lychee as soon as possible. No one wants to become the public enemy of the industry because of lychee.

Being an OEM for Lychee does not make more money than being an OEM for other brands, and they are also besieged by other brands. The two OEM manufacturers have no way to express their grievances. They feel like they have been cheated by Lychee. The best solution for them is to stop cooperating with Lychee after this batch of goods is completed. However, they just realized that they still have an OEM contract for more than one million Lychees from Haobo Technology.

Lu Yatong had set up a trap for the two OEM manufacturers in order to prevent them from going back on their word. Haobo Technology had paid a deposit of more than 20 million yuan at a price of 10 yuan per unit. If the two companies went back on their word, they would have to pay ten times the penalty, which would add up to nearly 300 million yuan. They couldn't afford it even if they were beaten to death...