Chapter 187: Two Kings
cial level, which is likely why Li Yuhé has been causing trouble."Zhong Jianjun feels very pleased, indeed. The Xiahai Square project is a major undertaking in their local area and represents concrete...Chapter 187: Two Kings
, followed by the school opening in March, where Nan University returned to its bustling scene with vehicles and pedestrians filling the campus after the holidays, which had been desolate with only dormitories and self-study rooms active.
Su Cen's college life continued as usual. Li Han, Zhang Xiaqiao, Xiao Xiu, among others, all came back to their dormitory in a flurry of activity, unaware of the various shocking events that happened during Su Cen’s holiday in Phoenix City where some people were incarcerated, lost power and wealth, missed out on seemingly dazzling happy lives or unfortunate occurrences, and narrowly escaped from life-threatening situations. He and his family also barely avoided becoming pawns in political games—stories that would be recounted for years to come.
Lin Luoran rejected Wei Yuanhu’s advances, and Wei Yuanhu returned to Beijing, but Lin Luoran didn’t know if he would return again this summer or winter.
Su Cen and Tang Wu came back to Nan University, entering their second year's second semester of college life. Su Cen loved living in the dormitories at Nan University where books filled with ink fragrance were piled up everywhere, along with printers that always had a plastic smell and shredders emitting foam scents from washing machines, as well as the rich aroma of ground coffee beans wafting through the air.
This was the enviable Room 602. This was everything on campus: bicycles and self-study rooms, libraries and the hope of meeting someone special; ordinary differential equations and functional analysis topological vector spaces; and Nan University's outdated C textbook without Loki and mplPS production system programming.
Li Han would yell when he woke up near noon to rush down for lunch. Zhang Xiaqiao sometimes felt melancholic while passing the dorm building where his ex-girlfriend left with another guy on a bicycle, though his family had already purchased a BMW 5 Series imported this year in silver paint. He didn't think she was as happy sitting next to him now.
Xiao Xiu would occasionally utter some profound philosophical statements like "Life is like calculus; heading towards an incorrect direction leads to the harsh reality of limits and derivatives." Indeed, a philosopher at heart. However, sometimes Su Cen saw him storing company profiles and information on his computer, proving that even philosophers must face real-world survival issues.
Many things were changing unintentionally.
In April, Lin Guangdong and Zhao Mingnong's Shushan co-founded the Shang Dao Hezong Culture Co., Ltd. The company was located in a two-story business building near Bolo Media on Hengshan Road.
The place used to be a supermarket that underwent renovations for the new tenant, creating an avant-garde look fitting their corporate image. A bold and rugged large red "Shang" character written in cursive script was prominently displayed as the main exterior sign.
The day it was established, Su Cen and Qiao Shuxin, along with the technical team leader of FaceBook Chinese Zhang Guo, were all present to visit. Everyone looked at Lin Guangdong and exclaimed, "This character is so domineering!"
"At the last book fair in Beijing, Shanghai, and Guangzhou, the appearance of Shushan was stunning, but what's even more surprising is that Shushan openly declared their intention to gradually introduce their nationwide network of over 40,000 outlets into the distribution channel. Even more astonishingly, they launched a cooperation with our Pineapple Media under these circumstances. The newly formed Shangdao Hezong has been receiving calls from magazines hoping for collaboration non-stop." Recently Lin Guangdong went to Phoenix City where Su Cen was and stayed there for a few days to complete legal documents issues concerning Phoenix Industry and Phoenix Investment Holdings, then rushed back to Shanghai without delay. He's been busy with this matter recently.
Walking through the newly renovated office area, Lin Guangdong introduced it to everyone who accompanied him.
"The sales channels for magazines are basically kiosks, supermarkets and convenience stores, subways, and airports. We're pioneering a fifth model: distributing and selling magazines through cultural product stores via Shushan's formidable distribution network. In Beijing, magazine sales mainly concentrate in large-scale trading supermarkets, which is not very developed. The most well-developed place is Shanghai with over two thousand convenience store outlets; suppliers include New Oriental Distribution and Jiu Yuan Service Company. Guangzhou has around four hundred and this market is divided among several companies. For the newly established Shangdao Hezong, there's a clear advantage in surpassing them. We have the strength to match them in sample retail stores in these three cities. This sales method can easily integrate into people’s lives and facilitate the formation of stable magazine purchasing groups."
"Therefore, regarding the distribution of sales outlets, we're not worried, and there's a rapid development trend in layout in all three cities. To sum up, if viewed comprehensively, we should be considered as the largest distributors in these three places." Lin Guangdong rubbed his eyelids; clearly, these few days of intense battle had made him look puffy-eyed. He said, "But this doesn't mean that we've seized control of the magazine distribution market in these three cities. There are still two crucial strongholds: subways and airports."
"In the subways of the three cities, Shanghai Metro is the strongest, with nearly a hundred outlets. The key point lies in the fact that channel suppliers must collaborate with the subway company to enter this market, but we're currently negotiating with Shanghai Metro Corporation. However, they have rather stringent conditions: not only do they require owning 49% of the shares, there are also related restrictive clauses; they sell operating rights, while ownership remains theirs."
"Beijing's subway system is another tough nut to crack. Only Guangzhou Line 2 is currently undergoing bidding, which might be our breakthrough point for entering Guangzhou Metro and capturing a larger market share."
Qiao Shuxin smiled, "Within just one or two years, General Manager Lin has leaped from being at the bottom of the food chain seeking channel suppliers to distribute magazines in Shanghai to the top."
Su Cen added, "Nowadays, when people mention Lin Guangdong, he's already a legend. Relying on Shushan, he surpassed established distributors, which is probably an embodiment of the Blue Ocean strategy. Those who previously looked down upon General Manager Lin might now be compelled to build good relations with him."
Lin Guangdong raised his eyebrows and said, "The Blue Ocean... The Blue Ocean strategy isn't easy to implement. Shangdao Hezong has been burdened with too many tasks since its inception; the dream or crazy idea of capturing 60% of magazine distribution markets in Beijing, Shanghai, and Guangzhou within a short time constantly spurs me on without respite. I can't afford to relax at all... People are forced into action. I still need more support."
Su Cen saw Lin Guangdong's eyes showing signs of fatigue from staying up late recently, and he smiled as he said, "I'll discuss with Liu Changhui and others further regarding whether we can reach an agreement with the Shanghai Metro Corporation.
Liu Changhui certainly hopes that Lin Guangdung's "local channel syndication" enterprise can carve out a significant share of the market in Beijing, Shanghai, and Guangzhou. Currently, the country is consolidating its journal industry, and those who control important channels during critical times have significant power. This is one way capital manifests itself; the current periodicals markets in these three regions are largely lacking unifying regulations. The entry of Shang Dao Hezong has tremendous benefits for standardizing these markets.
"It was really not easy getting to this point," Lin Guangdung smiled as they entered a meeting room. Lin walked up onto the stage and pulled down a diagram that clearly illustrated his next point: "The next step is about capturing airport channels in these three cities. In all of them, only Guangzhou Baiyun Airport doesn't charge an entry fee; other airports have quite substantial fees. It's very difficult for ordinary journals or publishing companies to enter without the financial means. If it were just a matter of finances, I believe Shang Dao Hezong wouldn't be a problem, but the issue is regional protectionism."
"A few channel operators in Guangzhou are associated with airport enterprises, and Shanghai Hongzhao Book Company at Shanghai Hongqiao Airport belongs to an affiliated enterprise under the airport system. Meanwhile, Beijing Capital Airport's Capital Airport Nai Zheng Publications Company falls under a state-owned system. Their ability to enter Beijing Airport isn't surprising, but most of their retail outlets mainly deal in books rather than journals. This means we don't yet have a company truly operating within Capital Airport for journal sales. From this angle, if we can secure the airport's retail publication business rights, it might be challenging, but worth trying since success would give us an advantage over others looking to enter. This method also indirectly enhances Shang Dao Hezong's reputation in the industry."
Su Cen couldn't describe how he felt. Lin Guangdung's previous Bolo Media was just a small magazine company in Shanghai, barely noticeable with its obscure magazine, making profits solely through advertising campaigns.
The establishment of Shang Dao Hezong marked a true leap forward.
It meant that the strategic map before Lin Guangdung had evolved from seeking various distribution channels in Shanghai and facing constant regional barriers to now operating at an unprecedented level, not limited by geographical boundaries but instead commanding influence over China's three most economically advanced cities.
Shang Dao Hezong's plan to capture over 60% of the market in Beijing, Shanghai, and Guangzhou including retail outlets and subway airports showcased grand ambition. The aim was clear: securing a superior position amid rapid changes in the journal landscape, expanding influence from these three cities nationwide!
This truly encapsulated Shang Dao Hezong's goal—a national distribution network overseen by Zhao Mingnong with narrow eyes and Lin Guangdung's ambitions after his business venture.
"If we control over 60% of the channel markets in Beijing, Shanghai, and Guangzhou, according to our operational profit and loss trial report, we could achieve a main business revenue exceeding five billion RMB. Profits would be around forty million without needing loans for healthy development. Isn't this quite exhilarating"
Everyone listened quietly as Lin Guangdung spoke. They knew what he was saying might become reality in the near future, an indescribable feeling akin to personally creating history.
Jiao Shuxin was deeply moved and said to Su Cen after exiting: "According to our latest statistics, Facebook Chinese has reached eight million members. The growth rate from last year's end to this June is astonishing; we're adding about ten thousand new users daily. This could be related to the newly released 'Facebook Messenger' chat tool. Even I doubt whether our PR team of just ten people is enough for us now. Additionally, we've been spending money without making a profit—using both American Facebook's and our own funds—and this will eventually need to stop. Should we start fundraising"
Su Cen understood Jiao Shuxin’s concerns. If Facebook Chinese continually relied on financial support from American Facebook with an unstable revenue model, it would also restrict the growth speed of American Facebook. Currently, Palo Alto's headquarters has five hundred employees, and their expenditure is significant. No one knows when they might sell equity next—within a year or half
"Furthermore, if we solely rely on unilateral funding from the U.S.," Qiao Shuxin paused thoughtfully before saying pointedly, "we wouldn't be truly independent."
"I'm aware that privacy issues with Facebook in America are becoming quite serious, especially considering its rapid cross-border development, making it easy for all sorts of problems to emerge. Some people use it as a weapon for political attacks and manipulate certain unrest behind the scenes in dirty ways. Others attempt to incite ethnic conflicts. Recently, there have been intense protests from the Islamic side against Facebook because someone is deliberately stirring up trouble by demonizing the platform. Are you referring to these issues"
The rapid development of Facebook had led it to gradually exert significant influence in Europe and America but also brought hidden disasters along with it.
Su Cen sighed, "Tools are destined to be used as an excuse for humans to commit evil deeds or take the blame." He asked Qiao Shuxin, "Are you worried that if things escalate on the American side, even Facebook's Chinese version will be affected"
Qiao Shuxin nodded. "There are many reasons for this concern. For example, there are hidden risks behind the American Facebook. From a purely rational standpoint, if it were to suddenly collapse tomorrow, we would face the danger of being forced to sell or be acquired at a low price; and then there would be too many people trying to kick us out."
Su Cen agreed with this point. Apart from competitors, even Zhan Hua in Shanghai was continuously supporting tech companies to compete against Facebook's Chinese version. For instance, recently he invested heavily in campus networks, promoting them and even secretly poaching employees from Facebook's Chinese version. Many mid-level and senior staff had been approached by them with high salaries offered, but they were not interested in recruiting lower-level employees, as the latter only earned a salary of 200 thousand RMB per year; it wouldn't be worth the effort to pay more for less valuable talent.
It's happening too fast. It can organize people with similar ideas from different regions at an incredibly fast pace, facilitating quick exchanges of thoughts and reaching consensus or accepting certain ideas that cannot be recognized domestically, including interactions with those overseas. This isn't a positive development; it could even be extremely problematic...
Su Cen gently rubbed his brow as Qiao Shuxin's words carried significant weight.
There was another issue in America: the young man from Facebook’s headquarters in Palo Alto, who is now your close friend. He may soon become the CEO of one of the world’s most dynamic and fastest-growing companies with the largest future market value, a new idol and leader worshipped in Silicon Valley.
I know that you used to be in America and wore the same crown as him, sharing the same queen at banquets back then.
“Can I correct this Back then it was Tang Wu whom I had my arm around,” Su Cen corrected irritably.
"That's not the point," Qiao Shuxin paused, "the real issue is that in our world built by capital and power, there cannot be two kings." Xia Hai City's; however, they were not as ubiquitous as in later years and there were significantly fewer vehicles on the road.At this moment, if a Bugatti Veyron revved its engine and sped past, it...