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Major MP3 brands have formed an anti-Lychee alliance, which not only warned the two Lychee OEM manufacturers, but also issued an ultimatum to other OEM manufacturers in the industry: whoever cooperates with Lychee will be the public enemy of the industry and will be boycotted by the entire industry.

Manufacturers who did not cooperate with Lychee were secretly glad, and at the same time held an emergency meeting internally, demanding that they should not cooperate with any company related to Lychee and Wangwa.com. Now the entire MP3 industry is divided into three camps. One is the high-end Japanese and Korean imports, they sell the style and brand, so they don't pay attention to price wars; one is the huge domestic MP3 camp in the middle, which relies on cost-effectiveness to grab a living from Japanese and Korean brands, and now is crushed by Lychee's cost-effectiveness. They account for more than % of the market share; the last camp is the newly emerged Lychee.

The war between the latter two is likely to break out at any moment, so it is time for OEM manufacturers to take sides.

There is no doubt that everyone is trying to make money, and no one dares to be an enemy of the entire industry. Therefore, Lychee has been isolated by the entire industry before it was officially released.

The two remaining "comrades-in-arms" around him were the OEM manufacturers who were tied to him by Zhou Hao with a deposit of more than 20 million yuan.

The two OEM manufacturers continue to receive threats and warnings from other partners, asking them to immediately stop cooperating with Lychee, but they have no choice.

In order to avoid becoming the target of public criticism in the entire industry, the two manufacturers called their partners back and told them that they were forced into a desperate situation. Each of them had received a deposit of more than 10 million yuan from Haobo Technology, which they had used to invest in new production lines. If they breached the contract now, they would have to pay more than 100 million yuan in compensation. As a foundry, how much profit could they make in a year? If they really had to pay 100 million yuan for no reason, at least two or three years of work would have been in vain.

After receiving replies from these two companies, the major MP3 brands cursed Lychee for being shameless and continued to threaten the two manufacturers. Their demands were simple: We don’t care what contract you signed with Lychee, we only look at the results. If you continue to manufacture for Lychee, you are helping Lychee suppress other brands in disguise, and we will terminate our cooperation and never cooperate with these two manufacturers again.

OEM contracts are usually signed on a monthly or quarterly basis. Since the brand is Party A, the responsibilities for their breach of contract are very light in the contract. At most, they can immediately stop cooperating with the OEM manufacturer by paying tens of thousands or hundreds of thousands of yuan. Now, in order to make an example of someone, they are willing to bear this penalty.

The two OEM manufacturers were almost going crazy. 80% of their production capacity was given to these brands. If they really stopped the cooperation, how would they survive in the future?

But if they fail to comply with the contract and give Lychee the production of more than one million MP3s, they will face even greater compensation.

After weighing the options, the two OEM manufacturers simultaneously chose to sound out Lychee's contact person, hinting that they might not be able to cooperate due to pressure. As a result, Lychee's business contact person directly said: "You can communicate with me about the specific cooperation. If it involves legal aspects, don't communicate with me, communicate with our legal department..."

Lychee refused to give in, and other MP3 brands, in order to completely isolate Lychee, had already begun preparing termination letters to terminate the contracts with these two manufacturers, instantly plunging the two manufacturers into despair.

When the front-end business of Haobo Technology received the news, they immediately fed back to Zhou Hao, who was busy meeting with Liu Qiangdong's team on Taobao.

After hearing this, Zhou Hao was in a good mood and told the other party: "Pay close attention to this situation. If those MP3 brands really terminate their contracts with them, you will immediately follow up on behalf of Lychee and take over all their vacant production capacity. But don't say this now. Wait until they are desperate before talking to them."

The front-end business understood: "Don't worry, Mr. Zhou, I understand!"

After hanging up the phone, Zhou Hao smiled and said to everyone at the meeting: "Our Lychee brand and Wangwa.com have now become the public enemy of the MP3 industry."

Everyone looked at Zhou Hao curiously, waiting for his detailed explanation.

Zhou Hao continued, "Now the MP3 brands have spontaneously formed an alliance specifically targeting Lychee and Wangwa.com, putting pressure on all OEM manufacturers, asking them not to cooperate with us or to produce for us. Now the vast majority of MP3 OEM manufacturers have also stated that they will not cooperate with us in any way."

Hearing this, everyone was surprised, and some were a little worried, but Liu Qiangdong smiled particularly brightly.

Of course, Zhou Hao also smiled brightly.

Liu Qiangdong said: "Haven't we already signed OEM contracts for more than two million units with two manufacturers? We have also paid a deposit in advance. If they don't do the OEM for us, they will have to pay ten times the penalty, right?"

Zhou Hao nodded and said with a smile: "To be exact, it is 275 million units. The one in Shenzhen signed a contract for 160 million units, and the one in Taiwan signed a contract for 115 million units."

Liu Qiangdong said: "275 million units are enough to provide a strong impetus for Taobao.com, and this number of products is enough to bring a great impact to the industry."

Zhou Hao looked at him and asked with a smile: "Mr. Liu, you were laughing so happily just now, it must not be because of this. Why don't you tell everyone what you were laughing at."

Liu Qiangdong said: "I see you are much happier than me, why don't you speak first."

Zhou Hao waved his hand, "Tell me about it, I believe in your business acumen."

Liu Qiangdong smiled and said, "Since Mr. Zhou praises me so much, I will say a few words."

Liu Qiangdong cleared his throat and said, "I think we have not only attracted the attention of the entire MP3 industry, but also made them panic. This also proves that our influence is already very large. They want to curb us by curbing production capacity, but if they knew that we still have more than two million units shipped this year, I'm afraid they would be scared and unable to sleep. By then, they will also realize that they can't curb us, and can only do their best to reduce costs and lower prices."

At this point, Liu Qiangdong paused and looked at everyone with a smile on his face. "Our Lychee cost is basically the same as other brands, but we win in product design and sales channels. If we can personally prove the sales capability of Taobao as an online channel, then these brands will definitely choose Taobao as their new channel in order to save costs and increase sales. I believe that it won't be long before half of the country's MP3 sales will be concentrated on Taobao."

Liu Qiangdong looked at Zhou Hao after he finished speaking. Zhou Hao smiled and led the applause, saying, "Mr. Liu, what you said is very good. Why do we make lychee? Why do we sell lychee without making any money? It's not because the MP3 market has much room for development, but because the public's demand for electronic products is constantly increasing. The market space for PCs, computer components, laptops, MP3s, digital cameras and other products will continue to increase. The cost of traditional sales channels is too high, but the cost of online sales is much lower. With lower costs, prices will naturally drop. People think that the same things are cheaper online than in stores, so they will naturally tend to buy them online."

"For manufacturers, online sales channels do not require them to share profits with dealers, nor do they need to build stores, run markets, or build channels. They only need to open an official flagship store on Taobao to sell their products nationwide. For ordinary sellers, if they have offline stores, their products can only be sold locally, but if they add an online store, they can sell their products nationwide without any additional costs. Why not? If they don't have offline stores, but they have sources of goods, then it's even more suitable. They don't need to invest a penny, they just need to register a seller account on Taobao, and they can open an online store on Taobao that faces the whole country. Why not?"

"For us, although Lychee doesn't make money, it can cultivate users' online shopping habits, let users know about online shopping, understand online shopping, and use online shopping. As long as users take this step, it is equivalent to providing the best development momentum for our Taobao. Some colleagues may say that our Lychee supply is insufficient. With so many pre-booked buyers, only 1% of them may be able to buy Lychee in the end. This is not what we need to worry about. We are not planning to sell Lychee to all buyers. Our goal is to let all potential buyers pay attention to Lychee and then to Taobao. As long as they start to pay attention to Taobao, we will succeed!"

Zhou Hao then continued, "I just received a call from the front-end business of Lychee. The two manufacturers who produce Lychee for us have been isolated by other MP3 brands. These brands threatened them that if they don't stop cooperating with us, all other brands cooperating with them will stop cooperating with them. Fortunately, we made a plan in advance. Even if these two manufacturers offend all MP3 brands, they will never dare to offend us because they can't afford to pay. Now those MP3 brands are stupid enough to force them to stand in line in this way. Once they terminate the contract and release the production capacity, we will take all the orders! Every Lychee sold from Taobao is the foundation for Taobao's take-off!"