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Lu Hongbo: The Story of Mobile Phone Industry
Lu Hongbo: A story of mobile phone industry. Lu Hongbo, a Sichuanese in his thirties, is a mobile phone manufacturer of Nietzsche. He is also the "coal boss" who owns three coal mines in Shanxi. Entering the mobile phone industry, Lu Hongbo's goal is to integrate the cottage mobile phone industry, and it is known as "loss first 1 100 million". With the three-year vision of "Thousand Cities and Thousand Stores", this new mobile phone army led by Lu Hongbo, a coal boss, has gathered people from TV shopping, health care products dealers and other industries to launch a wild run to the mobile phone industry in China. In China's household appliances, alcohol and health care industries, it is not uncommon for such large-scale advertising to quickly occupy the market, but a large number of enterprises also disappeared after a short success. , the change of two people, Lu Hongbo was born in poverty, and the scars left by playing pig grass when I was a child. He is very experienced. I have worked as a civil servant in Inner Mongolia, Shaanxi, Jiangsu, Shanxi and other places, sold health care products, and opened three coal mines in Shanxi. He doesn't like being called "coal boss", especially after drinking, always staring at others and asking, "Do you think I am rich and heartless?" The idea of entering the mobile phone industry came into being when he got together with his fellow countryman Jiang Decai. Both Jiang Decai and Lu Hongbo studied in Sichuan Institute of Business Administration. Jiang Decai is one year older than Lu Hongbo. They have known each other for more than 20 years. Like Lu, Jiang Decai has also been engaged in the health care products business. Later, he opened a Moneng International Company, and began to do mobile TV shopping in 2007. In the second year, he achieved annual sales of nearly 2 billion yuan. Although the overall sales are still far behind the two listed companies, Acorn International and Qixing Shopping, he is already the industry champion in the mobile phone professional sales industry. Moneng International set a sales target of 5 billion yuan in 2009, but it was trapped by the reputation of the whole TV shopping industry and became an unattainable goal. 20 10, the company even lost money. So when Jiang Decai and Lu Hongbo meet, they often say something like "the mobile phone industry is not good". At that time, Lu Hongbo was studying for an MBA at the Business School of Nanjing Normal University. An example of the "Red Sea Strategy" is the domestic mobile phone. He learned that the current competition in the mobile phone industry is fierce, and there are 3,000 domestic mobile phone manufacturers. "The business school teacher said that as long as it is a fully competitive industry, there will be no more than five entrepreneurs who survive in the end." Lu Hongbo said, "I think the cake in the mobile phone market is very big." He moved his heart to the mobile phone industry, and of course he also wanted to win over Jiang Decai, who is "very clear about mobile phones"-"If I want to trust anyone in my life, it is him." When introducing the relationship between Lu Hongbo and Jiang Decai, he often said that "he is the elder brother and I am the younger brother". Lu Hongbo first suggested that Jiang Decai give up TV shopping and open a direct store: "TV shopping is a liar in China. Without after-sales, many products are completely deceptive. " Now the TV shopping company Moneng International has stopped talking about it. Jiang Decai accepted this model, and personal feelings played a great role. "If someone else, he won't accept it. If it is someone else, I will not mention it. " Lu Hongbo said. Lu Hongbo emphasized that "100% is based on his own products", which depends on the foundation laid by Jiang Decai. In the past, mobile phones sold by Moneng International were all bought out from manufacturers, and similar products would not appear in traditional sales channels. Now Lu Hongbo wants these mobile phone manufacturers to become their foundries. "There are too many idle production lines. We are not looking for them, they are looking for us. " Lu Hongbo said. Konka, Bird and Qixi, the old relatives of Moneng International, reached a cooperation intention with Nietzsche. Lu Hongbo and Jiang Decai each held 50% of the shares and set up a company. They have already invested 1 100 million yuan in the early stage, and Lu Hongbo said that additional investment is needed, "at least 300 million yuan". "Mengpai" marketing technology, now health care products have declined, but dealers who have worked hard all the way have already had strong regional channel control. Lu Hongbo is going to sell mobile phones with his old friends now. Driving on a country road in Guiyang, Shi Xian took Lu Hongbo to eat the local specialty "Spicy Chicken". He handed Lu Hongbo, who was sitting in the co-pilot seat, a newspaper with a full-page advertisement on it. The headline reads "Cordyceps factory stores only earn 1 1 yuan", which is very similar to Nietzsche's mobile phone advertisement. Shixian knocked on the newspaper and said, "Imitate us completely." Shi Xianlai is the manager of Guizhou Special Zone of Hongmao Wine Industry in Inner Mongolia. Now, in response to Lu Hongbo's call, he joined Nietzsche's mobile phone camp and opened three direct stores in Guiyang. This combination is not surprising, because Lu Hongbo and Jiang Decai are both health care products and have traveled in Inner Mongolia and Shaanxi. Although both of them were born in Sichuan, they belong to the "Inner Mongolia Legion" in the marketing circle of medicine and health products. "Inner Mongolia Legion" was once famous for Hongmao medicinal liquor. At that time, Wu Liji and Du Haijun made this common medicinal liquor a myth in the marketing field of China, and the sales of single product reached 1 100 million yuan a year. At the same time, Hongmao Liquor Industry has set a standard for the market operation mode of Inner Mongolia Legion: quickly start the market, quickly occupy the market, quickly win the market and quickly withdraw from the market. Jiang Decai once represented Lizi slimming capsules, while Lu Hongbo represented Jianyi? Diet pills. In 2004, the two men fought fiercely in the marketing of medicine and health care products. According to a practitioner at that time, there were two kinds of weight-loss products that were competitors, both of which were big advertisements, which brought the "Mongolian faction" technique to the extreme. Finally, Jiang Decai won, and Lu Hongbo later moved to Shaanxi and invested in three coal mines. Nowadays, health care products are going downhill, but dealers who have worked hard all the way have strong control over regional channels. Lu Hongbo is going to sell mobile phones with his old friends now. "As long as you admit that you have the resources, we can cooperate." He is not picky about his partner. Before landing in a city, in addition to meeting friends, the director of the local metropolis daily is indispensable on the wine table. It is an important means to negotiate advertisements of local newspapers and TV stations. "No newspaper is not fast, no TV is not big." This is a recognized law in the marketing of "Dream School" health care products, so it is not difficult to understand why Nietzsche wanted to advertise in the national metropolis newspapers, and spent more than 20 million yuan on advertising in June alone. However, "Meng Pai" marketing has been considered immoral for many years, such as emphasizing sales over brands, emphasizing promises over cash, exaggerating curative effect and plundering the market. Now, these accusations have been exposed in Nietzsche. Many people on Sina Weibo accused Nietzsche of using false advertisements to deceive consumers. One of them wrote: "Nietzsche is bragging, and he will die if he waits for one day." But Lu Hongbo was embarrassed: "We are all losing money on the books now." However, he also admitted that now is the publicity period, and if there are more repeat customers, it is expected to be profitable by the end of this year. After opening 10000 stores in three years, he hoped Nietzsche would eventually become a distributor, not a mobile phone manufacturer. Lu Hongbo made his home in Nanjing. When talking about his dream, he always mentions two people around him, one is the "president" Zhang (Zhang is the president of Nanjing Youth Chamber of Commerce and Lu is a member), and the other is a neighbor who lives across the hall. Zhang, the chairman of Suning Appliance, became the leader of China home appliance chain with the strategy of low-cost home appliances; Yuan Yafei, chairman of Hongtu Sanpower, also became the leader of computer stores in China with the strategy of cheap computers. Therefore, Lu Hongbo believes that if we can enter the market with the strategy of cheap mobile phones, we will definitely make great achievements in the mobile phone industry. At present, Nietzsche's mobile phones are all feature phones (non-smart phones), which are distributed in second-and third-tier cities, and the target population points to low-end users. "In the next three years, Nietzsche's factory stores will strive to cover all administrative counties and cities in the country and even some towns and villages, and the number of main stores will reach 1 10,000." This is Lu Hongbo's goal. He printed this vision on the back of his business card because he has a "listing dream". As a result of attracting a number of "next homes" with resources, Nietzsche opened a mobile phone shop very quickly. As of July 26th, 628 direct stores have been opened nationwide. I don't know if this was inspired by Lu Hongbo, but a competitor has quietly appeared in his hometown of Sichuan. This mobile phone company is called Kefeng, and it uses the same sales method (dozens of real phones similar to iPhone4 are priced at 398 yuan, and they are placed in the experience area, first come first served) and the same growth method (in the past two months, this company has been in several places in Sichuan Province, and its competitors have come quickly. For Lu Hongbo, the key to this competition lies in the number of funds and partners. Now some venture capitalists want to invest in Nietzsche's mobile phone, but Lu Hongbo insists on investing 1 billion every year, burning his own money first. He believes in Jiang Decai's financial resources. As for himself, "I have three mines now, and I can spend 70 to 80 million yuan on my mobile phone every year." In terms of "storefront", Lu Hongbo is not worried. He and Jiang Decai played football together at school. Lu Hongbo played as a striker then, but now he can't run, so he likes to be a coach. Therefore, when designing the sales system, both of them kept their eyes on the position of "substitute": "For any of my markets, I will announce a substitution tonight and take over tomorrow." Lu Hongbo said he was afraid to go to Huaqiang North, a gathering place for fake mobile phones. The shrinking of shanzhai mobile phone market has become a fixed trend, although it is not caused by Nietzsche's mobile phone. "I have an expectation for listing, and finally I will go to Nietzsche to buy a mobile phone. This is my motivation to be a listed company. " Lu Hongbo said. He hoped that Nietzsche would eventually become a channel dealer, not a mobile phone manufacturer. In his mind, Nietzsche must have been surnamed Lu before going public, so now is not the time for equivalence. "In the end, if we really realize the side of thousands of stores, the profit will be simple, and operators such as China Unicom and China Mobile will find us." Mobile phone industry