Chapter Fifty-Seven: The Unicom is Coming
In the large conference room on the 41st floor of the Fengyun Building, the senior managers of the Fengyun Network in Yunguang all sat at the conference table that could accommodate dozens of people, staring at Yu Jun, who was pacing back and forth with his head bowed with his waist and chin propped up.
Well-informed people have heard the rumors, and Unicom's move to aggressively enter the chain Internet café market is a bit unsettling.
Unicom, whose full name is United Communications Co., Ltd., was established in 1994 with the approval of the State Council, with the initial purpose of breaking the monopoly of telecommunications in fixed-line telephones. In the late 80s, due to the extreme difficulty of private individuals wanting to install landline telephones, there were endless cases of handing out slips, going through the back door, and finding connections. The establishment of China Unicom is to introduce competition and break the situation of telecom dominance.
At the beginning of the establishment of China Unicom, due to financial difficulties, it began to carry out a series of "Sino-Chinese-foreign" projects, involving up to one billion US dollars, dozens of countries, the so-called Sino-Chinese and Chinese, that is, Unicom, private capital, foreign capital, the three to cooperate.
Due to the extremely complex equity, in decision-making and other aspects, the interests are deeply entangled, and the impact on execution and other aspects is quite large, China Unicom, as a shoulder to break the burden of monopoly, has been living in the shadow of telecommunications, and the relationship between "China and foreign countries" projects is great.
By July 1999, Unicom clarified its equity for listing, sorted out the relationship between the entire group, and began to hire top foreign financial institutions to clean up all "Chinese, Chinese, foreign" projects. Until the beginning of April, Unicom successfully listed on the Hong Kong Stock Exchange and the New York Stock Exchange, raising US$5.65 billion, becoming one of the top 10 IPO financing machines in global history.
In comparison, compared with the financing of Xindingtai and Lotus Network, it is not even comparable to the skin of others.
According to the real-time foreign exchange rate, 5.65 billion US dollars, close to 4.7o billion yuan, is definitely an astronomical amount.
According to the description in Unicom's prospectus, part of it will be used to build a fixed network, and part of it will be used to improve the operational efficiency of enterprises, which is the so-called modern office, and there is no mention of entering the chain Internet café market.
However, the profits of the chain Internet café market will make foreign investors feel at ease, and they will not mind Unicom's large investment.
In fact, as far as the current Internet café market is concerned, take Fengyun Network as an example, in order to adapt to the era of online games in the near future, the computers of the new Internet cafes are all used in the new computers produced by Yunfeng Electronics, while the computers of Taiwan Union are only used in the fourth and fifth level cities, as well as small franchised Internet cafes in towns and villages.
The cost of this will inevitably rise.
As far as the cost calculation formula of the financial department is concerned, taking a thousand machine stores as an example, the purchase cost of each computer is 38oo yuan, including rent, water and electricity, labor expenses and other costs, the monthly operating cost is close to 2o, and the soundproofing decoration in the early stage also needs nearly 3o. On the whole, a thousand-machine store needs 650,000 yuan to operate for one year from site selection to store opening.
Looking at the profit again, the hourly machine fee has been reduced to 5 yuan, with a probability of 8o%, deducting various costs, the annual profit is about 2ooo million, to remove taxes and other expenses, but also to discount.
But compared with the profits of fixed telephones, chain Internet cafes are undoubtedly still a profiteering industry.
There are so many people who want to squeeze in, but the Ministry of Culture has stopped the approval of the operating certificates of national chain Internet cafes, but if a giant central enterprise like China Unicom wants to enter, small documents are still not a problem.
Yu Jun is afraid of vicious competition, in order to adapt to the Internet café market and the Internet exhibition, the expansion of Fengyun Network has slowed down in 2ooo, 35o million seats, compared to last year's fierce acquisitions and expansion, it is really nothing.
Compared to the expansion of the Lotus Network, which claims to quadruple in one year, it can be said to be a turtle.
In the long run, the market is far from saturated, but in the short term, there is a bottleneck of oversupply, and it is precisely because of this that Yu Jun will repeatedly control the expansion.
If China Unicom really wants to open a large number of stores in a short period of time, based on the calculation of 200 computers in a single store, even if it is 5,000 Internet cafes in two years, the total number will exceed 1 million.
When the market size has not yet expanded, Unicom will confuse the water of the entire market.
Recalling his previous life, the price of Internet cafes in 02 and 3 fell to the point of one yuan per hour, and Yu Jun's head hurt.
Now that I think about it, there may not be excessive competition and the factor of price war.
Yu Jun stopped and glanced at the senior managers at the conference table.
Wei Jing was in a meeting in Shanghai, and she had already communicated with Yu Jun on the phone, and she also had a dignified and cautious attitude towards this matter, and it was imperative to come up with a countermeasure.
Qin Haitong is still in Los Angeles, and Su Qing went to Moscow University in Russia to win college students from the Department of Mathematics and Physics of Moscow University to come to Yunfeng Electronics as trainee engineers as gatekeepers.
Fang Zhining cooperated with the film and television production company in the capital to make revisions to the commercials, Qin Yuting went to Lanjiang, and the rest of the people were all in Yunguang. Seeing Xiao Mingjuan rushing in, Yu Jun pointed to the seat and said, "Sit down first." ”
Everyone arrived, Yu Jun roughly told Chen Lei the news he got, and everyone had a little bottom in their hearts.
"Even if Unicom is calculated according to the scale of 8,000 stores, in the case of Fengyun Network's stagnant exhibition, each Internet café will account for about 35% of the market," Yu Jun said to the conference table, "Of course, it is impossible for Fengyun Network not to exhibit, even if its market share can only reach 2o%, it will still have a lot of influence on the overall market." ”
Yu Jun groaned and said: "The first two aspects to think about, Unicom's large-scale entry into the Internet café chain market, will it cause adverse consequences to the market, such as entering the stage of price war, I need the marketing department to make a detailed forecast report and response plan." ”
Su Cheng nodded, took a pen and wrote it down in his notebook.
"Second, after China Unicom enters the market, will it adopt administrative means to compete in non-market behaviors," Yu Jun frowned, "for example, put forward national defense and security considerations to limit other opponents and obtain regular windfall profits." ”
Because Unicom is a real national brand, it is several times stronger than Hengchun Technology, and it is the leader of Unicom, all of whom are officials at the deputy ministerial level, and it is really necessary to guard against it taking this common method in other monopoly industries.
"There is also the question of whether Unicom will dissect Fengyun Network's right to speak in the industry association."
Su Cheng put down the pen in his hand and said: "Jun Shao, in terms of the scale that can be imagined in the future of Unicom, it is appropriate to have a position as a director in the industry association, if you want to take away the right to speak, I'm afraid it will be difficult, right?" ”
Yu Jun shook his head: "You think too simply, Unicom will definitely take away the position of vice chairman." ”
The current chairman of the board of directors is the former minister of the Ministry of Culture, who basically does not work, and is the one who has the final say in the association, and thinks with the simplest mind, a huge national brand enterprise will be willing to only be an ordinary governing unit?
Even if it only has 5% of the market, it will want to get the position of chairman.
Su Cheng nodded thoughtfully and wrote down these words in his notebook.
"Mingjuan, you have to pay special attention to the franchisees, I expect that Unicom will use franchisees as a breakthrough as when we started with the Lotus Network." Yu Jun said.
Xiao Mingjuan, director of the franchise department, nodded again and again, franchisees are a group of the most unstable group, in the system of Fengyun network, the scale of franchise stores has reached about hundreds, and the number of seats is close to 300,000.
With the halo of a central enterprise on its head, it should not be underestimated in terms of attractiveness.
Yu Jun looked at Su Cheng's expression of wanting to speak and said, "If you have anything to say, just say it." ”
Su Cheng cleared his throat and said: "If the market size doubles every year, the increase of more than one million stores in two years should not reach the point of entering a price war." ”
Yu Jun said with a smile: "It is not that the market size is that the number of people who go online will double year by year, and under the dual effect of the rapid decline of home computers and the rapid rise of per capita income, telecommunications tariffs are gradually decreasing, and the number of people who use home computers to access the Internet at home will be much faster than the number of people who use Internet cafes outside." As far as the Internet café market is concerned, an annual growth of 6o% is expected, and 1oo% is unlikely. ”
Su Cheng digested these numbers and listened to Yu Jun say: "It is true that the 6o% increase can also accommodate Unicom's ambitions, but the huge profits of Internet cafes have attracted many private investors to join the ranks of opening Internet cafes, and only a small number of them are willing to become franchisees of us and Lotus Network, and most of them are working alone, which Mingjuan knows better than me." ”
Xiao Mingjuan nodded and said: "The franchise department has been doing the work of these people, but the results are not great. ”
"I expect that the market share of Fengyun Network of more than 9o% last year will decline year by year." Yu Jun said and saw everyone's expressions change, and then smiled, "The pool is big, even if it can guarantee 8o% market share, it is very good." ”
And Yu Jun's real estimate is that in ten years, if Fengyun Network can guarantee a market share of 6o%, or even 5o%, it will make him smile in his dreams.
In 2o1o, the number of Internet cafes in the country was close to hundreds of millions.
"What we need to do now is to control the expansion of Internet cafes, pay attention to the actions of Unicom and Lotus, especially Unicom, if you want to say that Fengyun is the head snake of the ground, Unicom, the tiger in a cage, is about to go down the mountain, everyone should be careful."
A light metaphor that made everyone laugh.
"What exactly is Unicom going to do these things, Chen Lei, you ask the people in the Commercial Investigation Department to hurry up and collect the materials, the art of war is cloudy: know the enemy, and you will not be defeated in a hundred battles. I don't want to fight this uncertain battle in a daze. ”
"Yes." Chen Lei seemed to breathe a sigh of relief, feeling that Yu Jun didn't mean to match him anymore.