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Chapter 256 - Chapter 256: Cracking Down on Scalpers, Investing in Goertek!

When "Beiai" is released next month, its ratings will skyrocket, becoming a dark horse and definitely sparking a drama-watching craze.

Xingyi Video, holding the exclusive online broadcast rights, will also completely explode in popularity, with a surge in paid members!

For no other reason, "Beiai" will be exclusively broadcast online on the Xingyi Video APP; no other platform will have it.

Viewers who want to watch "Beiai" can only download the Xingyi Video APP and become members.

The sign-in for free membership event will be gone in January, so membership can only be purchased.

At that time, we will continue to launch first-time user promotions, offering four months of VIP with an annual membership, further incentivizing a guaranteed surge in member numbers!

Coupled with the high quality of "Xia Lan" in December, which earned a good reputation, and the strength shown by many exclusive dramas, many users will likely be unable to resist getting an annual membership!

As for how many new members "Beiai" can bring?

Wang Yi also wasn't sure.

In his previous life, one drama, "The Knockout," added 17 million new members to iQIYI.

Currently, there aren't as many netizens, and "Beiai" isn't as popular as "The Knockout."

But it's equally brainwashing, especially for young people, with full destructive power.

Even at its worst, achieving one-tenth of "The Knockout"'s success, adding 1.7 million new members, would still be no problem.

Plus, next month, millions of members will come from buying Xingyi phones, as well as the anime members brought by "Xia Lan."

Then, the number of Xingyi Video members reaching several million would mean establishing a firm foothold in the video industry!

However, there are two prerequisites.

First, the Symbian version of Xingyi Video can be postponed, but the iOS, PC, and TV versions of the Xingyi Video APP must be launched as soon as possible.

To achieve comprehensive network coverage and attract more users, a single Android platform is not enough.

Second, robust anti-piracy measures!

If piracy runs rampant, then the number of Xingyi Video members will not be optimistic.

Of course, the H.265 version of "Beiai," with its higher definition picture quality, lower bandwidth, and smoother buffering speed, can also attract many members.

Wang Yi had a plan in mind and replied to General Manager Wang of Xinli Media:

"No problem, I'll go sign the contract tomorrow."

"Then I await Chairman Wang's arrival."

"Certainly."

Hanging up the phone, Wang Yi put his arm around Song Sining's slender waist:

"It's done, 'Beiai' is ours."

Song Sining was very intelligent:

"You're so optimistic about this drama; it seems to have a lot of potential. You even think highly of Chen Cheng, who directed and starred in it!"

"I wouldn't say it's exceptionally good, but it's worth investing in."

Currently, Xingyi Media has several capable big directors for TV dramas.

Director Zheng, Director Kong, Director Li, they are all good.

But film directors, they are lacking!

They are terribly lacking.

As a reborn person, Wang Yi was well aware that the film industry would undergo tremendous changes in the next decade or so.

The ones who could truly carry the box office weren't those veteran big directors, but rather new talents like Chen Cheng.

It was just that magical; the box office earnings of a few films by those new directors surpassed the lifetime box office of Director Chen and Director Feng...

There's no reasoning with it.

Leaving aside other aspects of Chen Cheng, his vision is good, and his directing skills are also decent.

"Beiai" was his first drama as a director, considered his debut.

Wang Yi planned to sign him directly to Xingyi Media and nurture him.

Then poach the lead actors of "Detective Chinatown" and "Beiai" and sign them.

Once Chen Cheng is capable enough, he can direct both the movie version of "Beiai" and "Detective Chinatown"!

Xingyi Media has been established, so it can't just make TV dramas and no movies.

Those few promising young directors are currently small potatoes or ordinary actors.

Wang Yi making a move early, signing them, training them, and then investing in them to produce the hit dramas of his previous life, would be no problem.

Other reborn individuals put in great effort, becoming writers to write books daily, or directors to shoot films daily.

Wang Yi was too lazy for that; he'd go straight for capital play, direct investment, letting the original directors film and the original cast act!

As for scripts, with Meiyou Novels, Yu Wanwan, and other elite writers, it would be even easier!

For Xingyi Video to grow bigger and stronger, in addition to exclusive TV dramas and animations, it must also have exclusive variety shows and movies.

Exclusive movie rights aren't cheap; instead of spending millions to buy exclusive rights to a movie, it's better to invest ten to twenty million to film one.

In 2011, for an ordinary movie, 10-20 million yuan was enough.

Even for a blockbuster with high special effects, fifty million was pretty much it.

As for a drama costing several hundred million, these days it's mostly "yin-yang contracts" (dual contracts for tax evasion)...

Even ten years later, ten million could produce a good movie.

For example, "The Pig, The Snake and The Pigeon" had good box office and high reputation, but its cost was only ten million!

The lead actor's salary was only one million.

This price was already similar to the market rate in mainland China in 2011.

It's simply incredible.

In 2011, for an S-tier major production TV series, a first-tier lead actor earned 300,000 per episode.

A first-tier movie star's salary was around one million.

It was still a relatively conscientious era.

"The day passed so quickly!"

Song Sining was a bit reluctant; she had to return to Jizhou in the afternoon.

"After a while, I'll go to Jizhou to accompany you!"

Wang Yi embraced Song Sining.

"Alright!"

Song Sining smiled sweetly, holding Wang Yi tightly.

After a long time, they finally separated:

"It's time to go to the station."

"I'll see you off!"

Wang Yi picked up the suitcase.

"Okay!"

Song Sining was in a great mood, and the two went out together.

She had to return to Jizhou in the afternoon no matter what.

At the accessories factory, she needed to personally supervise and rush production.

There was no other way; all accessories sold out beyond expectations, and Song Sining had to personally oversee them.

Especially the x buds Bluetooth earphones, the number of full-payment pre-orders was more terrifying than xphone 1!

In just over a day, even if xphone 1 sold a million units in stock, the current number of full-payment pre-orders has exceeded one million!

Xingyi Phone factory currently has a daily capacity of 60,000 units, and even with a slight increase later, it would still take two weeks to complete.

But in two weeks, the number of full-payment pre-orders wouldn't be one million, but three million, or even more!

Fortunately, with BYD as an OEM, the five million order can start mass production and batch delivery in about a week.

With BYD joining, it's estimated that the capacity crisis can gradually ease in about half a month!

There's hope for a complete resolution by the end of the month.

However, spot sales will be a matter for next month.

The sales of a groundbreaking phone like xphone 1 had already completely spiraled out of control.

The originally planned five million units were far from enough; at least ten million were needed.

And the sales of x buds were even more terrifying!

The 200,000 units in stock were long sold out, and the current number of full-payment pre-orders has exceeded 1.5 million units!

For no other reason, x buds come standard with a charging case, and their HIFI sound quality is excellent.

In 2011, they were equally groundbreaking Bluetooth earphones!

Not only Xingyi phone users wanted to buy them, but even Apple, Samsung, and Nokia users all placed orders and made full-payment pre-orders.

Hot selling, too hot selling!

Even foreigners were asking on Meiyou Square why Meiyou International Mall didn't have xphone 1 and x buds.

They wanted to buy them too!

Wang Yi was also helpless about this.

Selling xphone 1 overseas was difficult.

Currently, Xingyi Technology had acquired some patents, but it wasn't enough to fend off patent lawsuits.

Like HTC, even though it had some patents, it repeatedly lost in court and faced continuous sales bans.

Therefore, xphone 1 was basically not planned for overseas sales.

Unless the domestic market became saturated later, they might find a capable distributor in Africa and India to sell a portion.

Of course, it would be payment upfront, then delivery.

Wang Yi didn't want the Indians to earn money and spend it themselves, not a single cent going back home.

However, x buds Bluetooth earphones didn't have as many issues and could be directly sold in overseas markets.

But the embarrassing thing was that current demand was so terrifying that there weren't enough to sell domestically, let alone abroad.

"Sining, x buds have completely exploded; I estimate sales will be even more terrifying than xphone 1."

Wang Yi said with a smile:

"And they can also be sold overseas, so we need to acquire several more earphone factories to rapidly mass-produce!"

"Okay, no problem!"

Song Sining also smelled a business opportunity:

"x buds have no patent restrictions; if they're sold globally, the revenue might be a terrifying figure!"

"Indeed!"

Wang Yi nodded, this was truly possible.

Don't look at the x buds' price being only 999 yuan, which is only a quarter to a third of xphone 1's price.

But if x buds are sold globally and fully supplied, sales might well exceed those of xphone 1, which can only be sold domestically.

Moreover, the price of x buds abroad would not be 999 yuan, but 229 US dollars, over 1500 RMB!

If asked, just say overseas shipping is expensive, and taxes are high...

In short, it would be half more expensive than in China.

Sales channels are also easy to arrange; all Meiyou and Zhenyou overseas flagship stores and exclusive stores can sell them.

And Meiyou International Mall.

Meiyou has now established bonded warehouses, flagship stores, and exclusive stores in many countries around the world.

x buds can also be sent directly to Meiyou's bonded warehouses in various countries worldwide, just like Meiyou's other products.

Overseas users placing orders on Meiyou International Mall can receive direct shipments from nearby local bonded warehouses, ensuring fast delivery.

One could say everything is ready, only lacking production capacity!

"Acquire a few more factories and produce as quickly as possible!"

Wang Yi made up his mind.

It would be inexcusable not to seize such a profitable business opportunity.

"Okay!"

Song Sining agreed:

"I'll handle this when I get back."

Wang Yi, however, suddenly recalled two major giants: Luxshare Precision and Goertek!

In his previous life, AirPods were initially OEM produced by Inventec, and later by Luxshare Precision and Goertek.

It was precisely by becoming suppliers to Apple's supply chain and OEM for AirPods that the two giants' performance surged, were favored by capital, and saw their market value skyrocket.

Especially Luxshare Precision, after acquiring the Flextronics mobile phone OEM factory, achieved dual OEM for AirPods and iPhones, reaching a peak market value of 400 billion, which later halved to 200 billion.

Goertek's peak market value also reached 200 billion, later falling to 60 billion.

Wang Yi didn't know their current market values, but both were at low points.

If he invested now, it would definitely be a good opportunity.

This way, not only would the x buds' production capacity issue be resolved, quickly achieving global supply.

He could also seize the opportunity to buy low into the two giants!

More importantly, with such a leading product like x buds, competitors would likely want to copy it soon.

But they couldn't make it themselves; they'd have to find professional earphone ODM manufacturers.

And the most professional and capable ones were Goertek and Luxshare!

The two giants started by researching, producing, and OEMing earphones, and were quite strong in this area.

In his previous life, many brands of Bluetooth earphones were OEM produced by Goertek, or even white-labeled!

If Wang Yi didn't invest in the two giants, it was likely that they would soon be able to produce similar products and then OEM for other brands.

But Wang Yi invested in the two giants, becoming one of their major shareholders.

The two giants, making a fortune by OEMing x buds, would then not try to copy x buds themselves, nor would they dare to OEM similar products for other brands!

The dual identity of major shareholder and major customer would be both their opportunity for rise and their shackles.

Once offended, not only would they lose the large x buds order, but if Wang Yi were to further reduce his holdings of their shares, causing their stock prices to plummet and market value to halve, it would be a net loss.

With this thought, Wang Yi looked at Song Sining:

"Sining, if we want to supply globally, small factories won't be very meaningful; their capacity is too small. We should directly approach top OEM giants in the Bluetooth earphone field, such as Luxshare Precision and Goertek!"

Song Sining nodded:

"That makes sense. Their production capacity is terrifying, like the Foxconn of the earphone industry. Apple's wired earphones and data cables are all OEM produced by Luxshare. Goertek also OEMed Apple's acoustic components, wired earphones, etc."

"But will our x buds have such terrifying sales? Do they need OEM from such top giants?"

When Wang Yi previously asked Song Sining to acquire Bluetooth earphone factories, Song Sining had already looked into Luxshare and Goertek.

But at present, these two major OEM factories are giants in the earphone industry, with vast enterprises, so Song Sining hadn't even considered them.

After all, Xingyi earphones were just starting; who would have thought they would sell so well?

Even now, Song Sining felt that such hot pre-orders were only temporary and would exhaust all potential in a couple of days.

Wang Yi, however, was full of confidence:

"Of course it will; the Bluetooth earphone market is huge. Globally, annual sales of tens to hundreds of billions are no problem. Reaching hundreds of billions in a few years won't be a challenge either."

How glorious AirPods were in his previous life, Song Sining didn't know, but Wang Yi was well aware.

The first generation AirPods were released in September 2016, pre-orders only started in December, and 2.4 million units were sold in one month!

In 2017, AirPods sold 14 million units!

In 2018, 35 million units were sold!

In 2019, it even reached 60 million units!

Now Wang Yi released it five years earlier, making it even more explosive than in 2016.

After all, there were many high-quality Bluetooth earphones in 2016.

While AirPods were good, they weren't unique, and many people even complained about and disparaged them.

But in 2011, the entire Bluetooth earphone market was very backward, very traditional, with no formidable opponents.

x buds once released, were a groundbreaking existence, directly establishing an invincible position.

At a price of 999, and with no competitors, selling out completely would be no problem.

How much can be sold this month depends entirely on how much can be produced.

And sales of tens of millions for the next year are entirely possible.

One unit at 999 domestically, 1500 internationally, ten million units would mean 10 to 15 billion in revenue!

As for profit, over 60%.

It's perfectly viable to invest in Goertek and Luxshare, and then assign each a major order of five million units!

Completely feasible.

As for the two accessory factories Wang Yi acquired, they can produce other accessories.

After all, xphone 1 sold out, and its bundled wired earphones, charging cables, and chargers all need a significant increase in production.

And other sold-out accessories like tempered glass protectors also need increased production.

As for the funds to invest in Goertek and Luxshare, that's even less of a problem.

Not to mention the million phones + other products sold yesterday alone, which amounted to 5 billion in revenue.

The current full-payment pre-orders for xphone 1 exceeding one million units also represent another four billion in revenue.

Pre-ordered x buds exceeding 1.5 million units represent another 1.5 billion+.

With tens of billions of funds lying in the account, there's no worry, absolutely no worry.

Wang Yi checked Luxshare Precision's market value; it was only 9 billion!

Goertek's current market value, on the other hand, was 18 billion.

Goertek was actually slightly stronger than Luxshare at the moment, only to be surpassed, crushed, and even utterly defeated by Luxshare many years later...

For no other reason, Goertek's shareholders were flawed, and its core executives frequently reduced their holdings.

If even the core executives weren't optimistic about Goertek and were constantly reducing their holdings to depress the stock, how could retail investors and institutions be optimistic?

Luxshare, on the other hand, was different; its founder came from Foxconn and was very familiar with the OEM model.

It not only took on many orders from Foxconn but also developed very stably.

With tens of billions of funds lying in Xingyi Technology's account, acquiring Luxshare Precision outright would be no problem.

But there's no need for that.

Being a major shareholder would suffice.

"Sining, don't go back to Jizhou first. Go directly to Weifang to find Goertek and discuss investment and OEM cooperation."

"Understood, Chairman."

As for Luxshare, Wang Yi planned to talk to them in person.

After all, Luxshare's current market value was lower, making it easier to gain control.

Arriving at the high-speed rail station, Song Sining changed her ticket and headed straight for Weifang.

Conveniently, the several large factories originally planned for investment in Jizhou were not only being sought after by Qingdao but also coveted by several other cities.

Once he invested in Goertek and provided a large order for x buds Bluetooth earphones, it would be equivalent to having an investment in Weifang, in addition to Jizhou and Qingdao, thus spreading the benefits.

Wang Yi admired himself for becoming a master of balancing things...

As for Luxshare at present, it was just a small OEM factory, taking on overflow orders from Foxconn, far inferior to Goertek.

Goertek, on the other hand, started with acoustics and was a leader in the Bluetooth earphone field.

Wang Yi had even studied Goertek's market value fluctuations.

After its listing, Goertek soared all the way, from its current market value of 18 billion to a peak of over 60 billion in 2013, then quickly fell back to over 40 billion.

Wang Yi didn't know what exactly happened.

But he could first take out a few billion, acquire some shares, become a major shareholder, and enjoy this wave of growth.

As for whether to reduce his holdings later, it would all depend on whether Goertek's executives would listen to advice and if the company had a future.

If they listened to advice and had a future, Wang Yi could hold on for the long term.

If Goertek didn't listen to advice, just messed around, and its executives themselves aggressively reduced their holdings, then Wang Yi would also cash out at a high point.

Luxshare's decision-makers, on the contrary, were wiser.

Although its growth rate was not as fast as Goertek's in recent years, it grew steadily without major ups and downs, only experiencing an unavoidable halving after reaching its 400 billion peak.

After all, during that wave, domestic internet giants all saw their market value halve, or even drop by 30%, so it was normal for Luxshare to also halve.

After seeing off Song Sining, Wang Yi returned to Xingyi Technology Industrial Park.

Jian Ziyan immediately approached:

"Chairman, there's a problem. Many people are now pre-ordering x buds with full payment, but some seem to be scalpers!"

"Scalpers? They appeared so quickly!"

Wang Yi smiled.

The scalpers' speed was much earlier than he had imagined; one could only say these people had a keen sense of smell.

"Yes, as soon as we launched full-payment pre-orders yesterday, they immediately placed orders, and many units. Some placed orders for 20 units with a single ID. Others split orders across several accounts, with five units per account. How should these orders be handled?"

Jian Ziyan was a bit troubled:

"If we ship according to payment order, they are all at the front and should be prioritized for shipping. But only 30,000 x buds just rolled off the production line yesterday. If all are given to these scalpers, other users won't get any!"

There was no other way; x buds Bluetooth earphones cost 999, but on the secondary market, some people were buying them for 1499!

With such high profits, scalpers were all tempted.

"What about xphone 1? Is there a similar situation?" Wang Yi asked.

Jian Ziyan nodded:

"Yes, but the situation with phones is much better. After all, xphone 1 has already sold a million units, and with BYD handling OEM later, the capacity crisis will likely be resolved soon. Plus, the phone's cost is high, three to four thousand per unit, so scalpers are also wary of tying up too much capital."

Wang Yi nodded, already having a counter-strategy:

"This is easy to resolve. Issue a statement: for fairness and to benefit more users, for multiple orders placed under the same ID, a maximum of two units will be shipped first, thus cracking down on scalpers at the source!"

"Okay, I'll arrange it right away!"

Jian Ziyan said quickly.

Wang Yi still had a conscience; scalpers had to be suppressed.

Scalpers selling at inflated prices was even more unacceptable.

As for the official side having no stock, dumping the supply to scalpers and letting them sell at inflated prices, Wang Yi would never do such an unethical thing.

Too shameless!

Soon, a statement appeared on the Xingyi Phone official website and the Meiyou APP:

[Due to the immense popularity of xphone 1 and x buds among users, resulting in terrifying order volumes, and to benefit more users and crack down on scalper activities, Xingyi Technology will strictly adhere to payment time for shipping, and for the same address and same account, a maximum of two units will be shipped first! Our original intention is to comprehensively crack down on scalpers and safeguard the core rights and interests of our vast user base. Additionally, production capacity issues will be resolved soon; please await patiently.]

This statement instantly caused a huge stir and quickly became a trending topic:

"Cracking down on scalpers, well done, Xingyi Technology!"

"Yes, this is exactly what should be done. If users can't buy officially and scalpers have plenty with inflated prices, that would really hurt users' feelings."

"Actually, sending two units to one user first is already too much; it should be real-name system, one order per person, no more."

"I support one order per person. Now it's two orders, what do I do? No shipping date yet."

"Mine's shipped, will arrive in seven days."

"Mine's five days."

"Mine's ten days later!"

"I've already got it! SF Express delivered it today. I have to say, the xphone 1 is really beautiful, so powerful, it's just awesome!"

"How's the system? Is it smooth?"

"Extremely smooth, after all, it's the latest Android 4.0, much stronger than 2.3!"

"How about the camera? Is it good?"

"Don't even mention it, the photos are so good, my girlfriend almost snatched it away! I defended it with my life!"

"Uh, if you save the xphone 1 like that, aren't you afraid of losing your girlfriend?"

"If I lose her, I lose her; the next one will be even better. With a cool phone like xphone 1, do I need to worry about not finding a girlfriend?"

"Well done, brother, that's how it should be!"

"'Xia Lan' will be released tomorrow, I'm looking forward to it."

"xphone 1 has arrived, x buds have also arrived, just waiting for 'Xia Lan' to be released."

...

Wang Yi and Jian Ziyan came to the Xingyi Video department.

"Chairman, you're here."

Ye Changpeng greeted him.

"I came to check, how are the preparations for 'Xia Lan'?"

"The first three episodes are all ready, all in H.265+ encrypted format. Watermarks have also been added, but they are just ordinary watermarks; we haven't achieved one code per device yet. Anti-screen recording will also take some time."

Wang Yi had set eight layers of anti-piracy, but currently, only half could be implemented.

Time was too tight!

"It's fine, just get the eight layers of anti-piracy done this month," Wang Yi said:

"'Xia Lan' will release two episodes at its premiere, and VIP members can unlock one episode in advance, which means watching three episodes at once. Later, only one episode will be aired per week, so even if the first seven episodes are leaked, it's fine. Consider it promotion for 'Xia Lan' to increase its visibility."

"Okay!"

Ye Changpeng breathed a sigh of relief.

"However, everything must be ready within a month. When 'Beiai' airs next month, it will be broadcast continuously, and if it's pirated, the loss will be huge. The eight layers of anti-piracy must be implemented by then!"

"No problem, Chairman Wang, rest assured!"

Ye Changpeng promised:

"Oh, right, Chairman, Xingyi Video has talked to some advertisers who are willing to place ads on our platform. However, the fees aren't particularly high..."

Wang Yi waved his hand:

"It's alright, we're just starting. They think we don't have as much traffic as iQiyi, Youku, Tencent Video, LeTV, or Sohu, and are afraid of spending too much money with no effect and losing money. It's all normal."

"Here's how: don't set fixed advertising fees. For in-drama ads, calculate based on CPM impressions. They pay based on how many impressions there are. More impressions, more payment. If there are fewer impressions, they won't waste money."

"As for page ads, use the CPC pay-per-click method: users are only charged if they click to view the ad; if they don't click and only see the display, there's no charge."

"This model is the best. Advertisers won't worry, paying based on actual impressions and clicks,"

Ye Changpeng's face lit up:

"But Chairman, 'Xia Lan' is about to air, and there are no sponsors yet. Several companies have made offers, but the prices are too low..."

"If it's too low, forget it. This kind of thing is better to have nothing than to have something inferior."

Wang Yi said indifferently:

"Since there are no major advertisers for the first few episodes, it doesn't matter; Xingyi Technology will do it itself."

"Let Meiyou, Zhenyou down jackets, fur, and Meiyou beauty products sponsor the first few episodes of 'Xia Lan'. Once 'Xia Lan' becomes popular after airing, other advertisers will be willing to pay big money to sponsor it."

Wang Yi originally planned to have xphone 1 and x buds sponsor "Xia Lan".

But then he thought, what xphone 1 and x buds lacked now wasn't traffic or orders, but production capacity!

They were already in short supply, with no stock, so advertising would be meaningless.

It would be better to give the traffic to down jackets, fur, and beauty products instead.

These three categories all had sufficient stock; the more they sold, the more they earned.

"Understood, Chairman, I'll contact Meiyou right away."

Ye Changpeng replied.

Wang Yi nodded:

"How is the development progress for Xingyi Video APPs on other platforms?"

"The Xingyi Video TV and mobile versions are both Android, so development is going most smoothly, expected to launch next week. The iOS and PC versions will be available in half a month, and as for the Nokia version, probably by the end of the month."

"Good, hurry up! If there aren't enough staff, reallocate or hire more."

"Yes!"

"Xingyi Music also needs to speed up."

"Okay!"

That night, a news story once again topped the trending searches:

[Xingyi Video's self-produced animation "Xia Lan," the pinnacle of Chinese animation, launches tomorrow!]

This news once again caused a huge stir.

"'Xia Lan' is coming, I'm looking forward to it! Extremely looking forward to it!"

"Looking forward to what? It's just an exaggeration."

"The pinnacle of Chinese animation? Aren't you afraid of biting your tongue!"

"Ruosen? Never heard of it."

"What a load of crap, 'Xia Lan'. If it's one-third as good as 'The Legend of Qin', that would be decent."

"Chinese animations are all trash; you have to watch Japanese anime, that's where the gods are."

"Bah! Spineless! Watch the 'Xia Lan' trailer first and then talk."

"Trailers are all packaging, they don't count. You have to see the actual content."

My biological clock is a bit off, updates have been late these two days, will adjust as soon as possible!

(End of Chapter)

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