Chapter 5 〇4. Giants second half

Shi Yuzhu's entrepreneurial history can be divided into two halves - the giants before 1997 and the giants after 1997. Before 1997, they were fearless, shouting the slogan "Be China's IBM", rampant, and finally failed miserably.An unfinished building ravaged by weeds was left behind, plus a huge debt of hundreds of millions of yuan. You don't know what it's like to die until you die once.In the past 10 years, Shi Yuzhu has been walking on thin ice, cautiously, selling melatonin, investing in bank stocks, and entering online games. From the ruins, he has made a fortune of more than 50 billion yuan in a blink of an eye.

Why was Shi Yuzhu able to make a "shocking reversal" in the second half? Yes, he did master a set of original housekeeping secrets, and created several "top equipment" for himself. Although it is not new, it is still necessary to explain Shi Yuzhu's resume before 1997. Shi Yuzhu was born in Huaiyuan County in northern Anhui in 1962. In 1980, Shi Yuzhu ranked first in the county's total score and was admitted to the Department of Mathematics of Zhejiang University with a score of 119 (out of 120 points) in mathematics. After graduation, he was assigned to the Statistics Bureau of Anhui Province at the age of 24.Due to his outstanding work, he was sent to Shenzhen University as the third echelon for further study.

However, after finishing his graduate studies, Shi Yuzhu decided to resign and start a business.When he boarded the plane and flew to Shenzhen, all his belongings were 4,000 yuan borrowed from various places, and the M-6401 desktop typesetting printing system that he developed with 9 months of painstaking efforts. On August 2, 1989, he used all the 4,000 yuan to make an 8,400 yuan advertisement: "M-6401, a historic breakthrough" by taking advantage of the time difference between first advertising and then collecting money in the newspaper "Computer World". Thirteen days later, Shi Yuzhu received 15,820 yuan; one month later, 4,000 yuan in advertising had been exchanged for 100,000 yuan in return; 4 months later, the new advertising investment earned him another 1 million yuan.

This year, Shi Yuzhu had the idea of ​​starting a company. He thought: "IBM is internationally recognized as the blue giant, and the company I run will also become China's IBM. Why not use the word 'giant' to name the company." In July 1991, "Giant" implemented a strategic transfer and moved its headquarters from Shenzhen to Zhuhai. "Zhuhai Giant New Technology Company" was quickly upgraded to "Zhuhai Giant High-Tech Group Company", with 8 branches.In this year, 28,000 sets of M-6403 desktop printing systems were sold, with a profit of 35 million yuan.By July 1993, the number of wholly-owned subsidiaries under the "Giant Group" had grown to 38, and it was the second largest private high-tech enterprise in the country after "Sitong Company". It has M-6405 Hanka and Chinese notebook computers , handwriting computer and other 5 fist products.

In early 1994, the giant building broke ground.This 18-story building was originally planned to be built, but it was continuously raised due to the enthusiasm of the crowd and the encouragement of the leaders, from 18 floors to 38 floors, 54 floors, 64 floors, and finally 70 floors. Also increased from 200 million to 1.2 billion.Shi Yuzhu basically raised funds by raising funds and selling uncompleted properties, raising more than 100 million yuan. Also in 1994, Shi Yuzhu discovered that with the rapid development of computers, the necessity of Hanka has long been lost. If he continued to engage in software, he would not be able to withstand the rampant piracy, so he turned part of his attention to health products, and the brain gold project began.

In 1995, the giant launched the "Three Great Campaigns", pushing 12 health care products, 10 medicines, and more than a dozen types of software to the market together, and advertising 100 million yuan.Shi Yuzhu was listed as the 8th richest man in mainland China by Forbes. In 1996, when Giant Mansion ran out of funds, Shi Yuzhu decided to transfer all the funds for health care products to Giant Mansion. The health care product business quickly flourished and declined due to excessive fund "blood pumping" and poor management.The giant group is in crisis.The sales volume of Brain Gold has reached 560 million yuan, but there are more than 300 million bad debts.

At the beginning of 1997, the giant building was not completed on schedule, creditors from all sides came to the door one after another, the giant's cash flow was completely broken, and the media "carpeted" reported the giant's financial crisis.Before long, only the equivalent of a three-story ground-floor lobby was shut down for the Giant Building, where it remains until now.As the "giant fell", Shi Yuzhu, who was in debt of 250 million yuan, left Guangdong sadly, and "Going North" disappeared. ... "At that time, I was poor, the creditors were pressing for debts, I was entangled in lawsuits, and all my accounts were seized."

"How poor is it? All the mobile phones that were just given to the executives were taken back and sold. I am the only one in the whole company who has a mobile phone. No one has received a penny of salary for a long time." Ten years later, in August 2007, Shi Yuzhu revisited the past in front of reporters at the Guilin Mansion in Shanghai, recalling his feelings when his career was at its lowest point. After learning from the pain, Shi Yuzhu fell into hard thinking: Where did I go wrong?He was afraid that he would not think thoroughly, so he read the newspaper articles scolding him one after another, and the more he scolded him, the more he wanted to read, to see how others "diagnosed" his failure. The men opened fire on him.

Under the "external application and internal administration" of various strong medicines, Shi Yuzhu finally lost his calmness and understanding.In 1997, this "China's first debt", carrying a huge debt of 250 million yuan, completed the most significant change in its life.This change has in turn become the "foundation" for him to rise again and achieve a greater career. "In the past 10 years, I have been eating my money. If I eat up my money, I will definitely be in danger again." So, what is Shi Yuzhu's "foundation"? These are the three "iron laws" that Shi Yuzhu established for himself:

First, we must maintain a sense of crisis at all times, and we must always be on guard against the sudden collapse of the company tomorrow, and prepare for the worst results at any time; second, we must not blindly advance and diversify rashly; third, let the enterprise always maintain sufficient cash flow. In addition to this, Shi Yuzhu has one of the biggest gains, that is, he knows how to study consumers. In this regard, Shi Yuzhu has the most painful experience. "On February 10, 1995, I issued the 'General Mobilization Order' for the 'Three Great Battles'. I personally presided over the advertising campaign. In the first week, I spent 50 million advertising fees across the country, causing a sensation in the whole of China. Our advertisements in newspapers in major cities are not full-page, but cross-page (that is, two full-page advertisements connected together), and the scenery is infinite."

"But after evaluation, there are both popularity and attention, but the advertising effect is zero, because we don't know what consumers need at all." In Shi Yuzhu's view, this is the starting point of his downhill. "Since the failure of the 'Three Great Battles', I have developed a habit. Whoever consumes my products, I will ask him to study thoroughly. If I don't study thoroughly every day, I will suffer for a day." ——It was this kind of ability that brought Shi Yuzhu back to life miraculously. "Give me a gift and get melatonin" Fortunately, Shi Yuzhu, who was hit hard, seemed to lack everything except money—the company's management team of more than 20 people remained steadfast even in the most difficult times, and no one left.Moreover, Shi Yuzhu already has two projects to choose from, one is the health product melatonin, and the other is the software he relied on to start his business. Shi Yuzhu made a calculation. Although software has high profits, the market is relatively limited. If 200 million yuan is to be paid off, it is estimated to take 10 years. The market for health care products is not only large but also just started. Melatonin can be used for up to 5 years. In 1998, Shi Yuzhu, who was at the end of his life, borrowed 500,000 yuan from a friend and started to operate Melatonin. With only a mere 500,000 yuan in hand, Shi Yuzhu could no longer hold high and fight high and make a big noise like before. In the end, he took Jiangyin as the base for his comeback.Jiangyin is a county-level city in Jiangsu Province. It is located in southern Jiangsu and has strong purchasing power. It is very close to Shanghai and Nanjing.Starting in Jiangyin, the advertising cost invested will not exceed 100,000 yuan, but 100,000 yuan is not enough to do one version of advertising in Shanghai. This is almost the last chance, he has no choice but to hit it. Before launching the Jiangyin market, Shi Yuzhu first conducted a "Jiangyin survey".Wearing sunglasses, he traveled from village to town, looking from house to house.Since all the young people go out to work during the day, the people at home are all old men and women, and I don't see a single person for a long time.When Shi Yuzhu went, they were very happy. Shi Yuzhu moved a bench and sat in the yard to chat with them, and conducted a first-hand investigation during the chat. "Have you ever taken health supplements?" "If it can improve sleep, do you need it?" "It can regulate the intestines and laxative, is it useful for you?" "Can it increase energy?" "How about the price, would you like it?" Willing to use it?" Usually, these old people will tell Shi Yuzhu: "I want to eat the product you mentioned, but I am reluctant to buy it. I will wait for my son to buy it!" Shi Yuzhu then asked: "Then how do you usually ask your son to buy health care products after eating?" The answer is that they are often embarrassed to tell their sons directly, but put the empty box in a conspicuous place to hint. Shi Yuzhu was sensitively aware that there was a lot of fame in it, and he made the best use of the situation, and later launched the well-known advertisement "No gifts will be accepted for this year's holidays, only melatonin will be accepted for gifts". ——This advertisement has undoubtedly become a legend in the history of Chinese advertising. Although it has been criticized for being utilitarian and tacky countless times, it has been broadcast for 10 years and has brought in sales of more than 10 billion yuan. Any one of these two points is enough to make it difficult to find opponents. ... Before the launch of Melatonin, Shi Yuzhu conducted in-depth exchanges with 300 potential consumers, and had a thorough understanding of various problems that may be encountered in marketing.Finally, Shi Yuzhu had a bottom line in his heart, and he confidently said to everyone in the company: "Okay, we are saved. The annual sales of the melatonin product will soon reach 1 billion." The official launch of Melatonin in the Jiangyin market was carried out in the form of big gifts. First, Melatonin was given to the elderly in the community, and the products were given away in batches. More than 100,000 yuan of products were given away, and repeat customers gradually formed. Many elderly people I ran to the pharmacy with an empty box of melatonin to buy it, but the more I couldn't get it, the older people asked more vigorously. Just when pharmacies were worrying about seeing empty boxes of melatonin but no distributors came to their door, the advertisement of melatonin "appeared brilliantly". Therefore, "pick up after payment" became the market rule of melatonin sales from the very beginning.The Jiangyin market was thus opened. In May 1998, Shi Yuzhu put the money he earned into the start-up of the Wuxi market.He first advertised the sales of melatonin, and then talked about dealers. He also asked for one-hand payment and one-hand delivery. At the beginning, the dealers did not accept it.But Shi Yuzhu kept advertising while talking.Slowly, some dealers began to pay and pick up the goods. In the second month, Shi Yuzhu earned more than 100,000 yuan in Wuxi, and Shi Yuzhu took it to start the next city.Within a few months, Nanjing, Changshu, Changzhou, and Jilin in the northeast all became the early bases of Melatonin.A single spark started to start a prairie fire.By the end of 1998, Shi Yuzhu had won 1/3 of the national market, with monthly sales of nearly 10 million yuan. In the spring of 1999, Shi Yuzhu and his team quietly came to Shanghai and "lived in seclusion" in Jinyulan Plaza on Jiabang Road in Shanghai.Every night, he put on sunglasses and ran to the snack bar downstairs called "Typhoon Shelter" with his subordinates for supper.In the "Typhoon Shelter", Shi Yuzhu planned one plan after another, causing hurricanes in the Chinese health care product market.By the end of 1999, Melatonin had opened up the national market. In 2000, the company created a sales miracle of 1.3 billion yuan, becoming the champion of health care products, and has a huge sales network of more than 200 sales points across the country, surpassing the giants in its heyday. In less than 3 years, Shi Yuzhu stood up again. In the fall of 2000, he made the sensational decision to quietly pay off all the debts he owed. Debt free. On the evening of February 3, 2001, Shi Yuzhu was interviewed for his "benevolent act" of debt repayment. He finally handed over his business card openly. Since the "giant fell" in 1997, he has not used his business card; He took off his sunglasses, walked on the street with his head held high, and no longer had to worry about being recognized as Shi Yuzhu by others. The days of "staying away from the rivers and lakes and disappearing from sight" are finally over.On this day, Shi Yuzhu remembered many things that happened in the past few years. In 1997, when he was driving in Tibet, he suddenly encountered a road landslide. The front of the car was buried in a pile of stones. The huge boulder smashed the glass of the car and stuck it in front of him. Falling into a 7-meter-deep valley at a speed of 120 kilometers per hour, he miraculously survived again, but left an eternal commemoration on his face... On this day, he silently thanked many people in his heart—friends who are still willing to lend money to him in difficult times, old subordinates who have shared weal and woe for many years, employees and dealers who have worked hard together... There was one person in particular he wanted to thank. Melatonin was about to launch in the first half of 1998. One day, he went to Wuxi on a business trip and had no money to stay in a hotel, so he could only stay in a guest house that cost 30 yuan a night. A waitress recognized Shi Yuzhu, but she didn’t ridicule him. A plate of fruit came and encouraged him to start all over again. The instant popularity of Melatonin did not satisfy Shi Yuzhu. He immediately began to think about other products in his hand, such as blood lipid lowering, cold fighting, blood enriching, stomach disease curing, and vitamins.In the end, Shi Yuzhu was determined to promote the mixture of vitamins and minerals - "golden partner". In 2001, the golden partner went public, and Shi Yuzhu prepared an advertisement for it that was almost as cheesy as Melatonin's - "Golden partner for elders, with good waist and legs, good spirits; golden partner for ladies, delicate and rosy and shiny; golden partner for children , grow tall and learn well." Driven by Shi Yuzhu's proficient advertising strategy and mature channels, the golden partner quickly became popular in the national market. It turned out that people called melatonin advertisements vulgar, and it was rated as the "top ten advertisements" in successive years. Now the top two of "ten advertisements" are also Shi Yuzhu's, because the golden partner has come up.Shi Yuzhu laughed at himself: "The top two of the top ten ads are ours. But you pay attention, the top ten ads change every year, and the top ten ads don't change every year." These two products have become evergreen trees in the health care products market, and their sales have not been curbed after selling for many years. In the first half of 2007, Melatonin sales increased by 160% compared with the same period in 2006! Although both products are very popular, it is very dangerous to put all eggs in the same basket in the health care product industry where "booming and dying". Thus, Shi Yuzhu started the second thing in the second half of his life - capital layout. In 2003, Shi Yuzhu sold Melatonin and Golden Partner's intellectual property rights and 75% of its marketing network to Stone Electronics, a Hong Kong-listed company owned by Duan Yongji.The total transaction price is RMB 1.24 billion, of which RMB 636 million is cash and the rest is convertible bonds of Stone Electronics. With hundreds of millions of dollars in cash lying in the account, Shi Yuzhu began to invest in industries other than health care products. The first choice he chose was the banking industry with stable returns. In 2003, Beijing Huazi Syndicate Company and Shougang Corporation, the promoters of Huaxia Bank, successively transferred 140 million legal person shares of Huaxia Bank to Shi Yuzhu.After every 10 shares were transferred to 2 shares, Shi Yuzhu held a total of 168 million Huaxia Bank shares.Then there is Minsheng Bank. In 2003, Feng Lun liquidated assets other than non-real estate business, but the stock market was in a downturn, and no one had hundreds of millions of cash to take over.Finally, Feng Lun found his old friend Shi Yuzhu and sold 143 million shares of Minsheng Bank to Shi Yuzhu at a very cheap price. Four years ago, Shi Yuzhu spent 300 million yuan to buy the shares of these two banks, and now the value has exceeded 13 billion yuan, and unlike the original legal person shares that could not be sold, these stocks can be realized at any time. "Although Feng Lun made billions less in these stocks, he is still very grateful to me for taking over his stocks." Earned more than 12 billion yuan in 3 years!There is no doubt that Shi Yuzhu must be the "No. 1 man in history" in the Chinese stock market. Few people know that Shi Yuzhu, who only seems to sell health care products by shouting loudly, is also the sixth largest shareholder of Huaxia Bank and the seventh largest shareholder of Minsheng Bank, and a financial capitalist with a net worth of tens of billions. Due to the continuous large sums of cash entering the account, Shi Yuzhu set up a special department for investment. He asked the investment department to "in principle only invest in the financial industry, and in the financial industry, in principle, only invest in banks and insurance." Why does Shi Yuzhu love the banking industry so much?His investment logic is: for general enterprises, as the scale increases, the rate of return on assets will gradually decrease, which is the "curse of scale"; on the contrary, banks, due to the low proportion of their own capital, absorb savings with their left hand and issue loans with their right hand , In fact, it is a leverage, using other people's money to make money, so as the scale increases, it will not only not reduce the rate of return of its own assets, but will increase its rate of return. It is also for this reason that the profits of my country's banking industry have shown explosive growth momentum in recent years. Shi Yuzhu, who is "always worried that the company will go bankrupt tomorrow", now holds more than 10 billion yuan in assets that can be realized at any time. "With cash in hand, sleep well." Shi Yuzhu, who was sitting in front of the reporter, showed a happy smile. ——At this moment, we realized that he finally found the long-awaited sense of security. Shi Yuzhu, who started his career by selling software, is naturally not unfamiliar with computer games, but he really fell in love with computer games in 1996, when the giant had a financial crisis, and creditors came to the door one after another, making Shi Yuzhu unable to work normally, so he closed the door Shi Yuzhu of the old school regards computer games as the only way of pastime. At the end of 2002, Shi Yuzhu started playing online games developed by Chen Tianqiao's Shanda Company, and soon became addicted. "When playing games, in another society, others don't know who you are, and everyone is equal when you mix together. Everyone fights together, fights monsters together, bullies others together, and is bullied by others together. It feels good to be equal. My favorite role is that of the Lone Ranger, who is brave when a friend needs help.” At that time, he had to spend four or five hours a day soaking in it, with an average monthly expenditure of more than 50,000 yuan, and a total of hundreds of thousands of yuan had been invested in an account with top-level equipment. In the game, Shi Yuzhu is an addicted player, but he has never lost his sense of smell and acumen as a businessman. He realized: "There is milk and honey flowing here!" One day after the Spring Festival in 2004, Shi Yuzhu called several executives together for a meeting to discuss whether it would be too late to invest in the online game industry.At that time, China's online game industry had been developing rapidly for three years. The three domestic companies, Shanda, NetEase, and Ninetowns, presented a three-legged rivalry. Games from Japan and South Korea also had a large market share, and the market competition situation was not optimistic.But Shi Yuzhu still convinced everyone. In November 2004, Shi Yuzhu's Zhengtu company was formally established. When he heard that several R&D personnel from Shanda planned to start their own businesses, Shi Yuzhu did not hesitate to spend a lot of money to recruit them collectively.This made Chen Tianqiao brood for a while. "Zhengtu" was launched in November 2005. In the past two years, the number of online players has soared all the way. It has become the third Chinese online game in the world with more than 1 million simultaneous online users. In 2006, the sales of "Zhengtu" reached 626 million yuan. This year's monthly sales revenue has exceeded 160 million yuan, and the monthly profit is approaching the 100 million yuan mark.Shi Yuzhu's success has made learning the money-making secrets of "Journey" the most enthusiastic thing among colleagues. One day in July 2007, Shi Yuzhu and Chen Tianqiao met again, and Chen Tianqiao said: "To be honest, I had a problem with Zhengtu poaching people from Shanda at the beginning. Later, I saw that Zhengtu was doing so well, and I couldn't help you. I have an opinion, and I said to the people in the company, can these people stay in Shanda and make a game with such a high number of online users? It can’t be done. If it can’t be done, it’s right for them to leave.” His words made Shi Yuzhu even more Feel the generosity and courage of this old friend. So, what does the success of "Journey" depend on? After interviewing Shi Yuzhu, the reporter has been wondering what kind of ability is behind his tens of billions of wealth?In the end, we found that the answer is that Shi Yuzhu has two core "equipment". The first one is to be good at thinking about and satisfying the needs of consumers. In Shi Yuzhu's view, focusing on consumers is also the biggest difference between him and other entrepreneurs. "Entrepreneurs with a slightly larger scale often invite this government official to dinner today and the bank president to play basketball the next day. 70% of their time is 'not doing business'. I never think about the hobbies of the leaders, but only concentrate on researching consumers. , which saved me a lot of time." Today's Shi Yuzhu is not afraid that others will laugh at him for not knowing a certain bureau chief, or popular stars such as Jay Chou and Li Yuchun, but he cannot tolerate every subtle feeling of consumers who don't know their consumption. This feature of Shi Yuzhu came in handy immediately after he entered the online game industry. "This industry is young and impetuous, and it doesn't know how to study consumers at all. It doesn't know what players are obsessed with or what they hate." "Everyone's needs are different. You can't spend money to hire a survey company to investigate, and you can't stop people on the road with a form to tick off. You can only chat with him and make daily routines." In order to make players more Like "Journey", Shi Yuzhu once again used his "Jiangyin investigation" in Melatonin, had in-depth exchanges with 600 players, and designed with the needs of players as the driving force, adding corresponding functions, even at the expense of the industry The old rules and regulations inside were kicked over. For example, in all games, players have to fight monsters to level up, and fighting monsters is very tiring. Players need to be highly concentrated, keep operating with both hands, and can't stop for seven or eight hours.Fighting monsters is to make players tired and tormenting people. This seems to be a matter of course. It is an "organizational test" that players must accept when they enter a higher level. When developing "Zhengtu", Shi Yuzhu asked everyone: "Why must fighting monsters be so boring and tormenting people?" The developer replied: "All games are like this." But Shi Yuzhu found that the players didn't like it, and complained endlessly. One person in Ningbo died in an Internet cafe while fighting monsters. He decided to make a radical change.In "Journey", players don't have to rush to fight monsters. Press a button, and the computer will automatically fight. You can hold a cup of coffee and watch.It really doesn't work, the computer is turned off, and it can still play by itself.This change is very popular with players. There are hundreds of similar innovations in "Zhengtu". "I dare say that "Zhengtu" is the most fun of all games, and no player can say it's not fun." As he spoke, Shi Yuzhu showed a childlike smile on his face, as if he had already entered that virtual game world. The success of "Zhengtu" also lies in the fact that it took the lead in promoting the development of the free model in China. In the past, the business model of online games was the point card charging model, that is, players bought a point card to play online for a period of time (like using an IC phone card), and selling point cards was also the only source of income for game companies.In the charging mode, the longer the time of soaking, the more advanced the equipment, and the more people will naturally be able to laugh at the rivers and lakes and be happy with each other. After Shi Yuzhu became addicted to playing, he soon discovered that there was a problem with this model.In the game, there are many players who have money but no time, so a large number of power leveling companies and equipment transactions have been spawned, allowing those players who have time to help others with power leveling, or sell their own accounts with good equipment to others. other people. Shi Yuzhu once bought an account with top-level equipment from a player, and spent more than 50,000 yuan. In this transaction, the player who sold the equipment got 50,000 yuan, while the Shanda company that developed and operated it earned very little. Poor, only a few hundred yuan. Shi Yuzhu had an idea: "Instead of letting the equipment be sold among players, why not just sell the equipment by the company itself?" This brings me to the forefront of the industry.Later he learned that the Koreans were also pondering this issue, and took the lead in launching the "free mode", that is, players can play games online for free, but to obtain "exciting" equipment, they must pay for it.In this model, it doesn't matter who spends a long time in the bubble, what matters is who spends money to buy better equipment in order to "eat well" and have status in the arena. Although it was only later that I learned about the free mode of the Koreans, Shi Yuzhu positioned the players of the game as two types of people from the very beginning. I don't care if the price is thousands or tens of thousands. The other kind of people have no money but time. Once they hear that they can play games without buying a card, there is no reason not to drill into "Zhengtu".In order to further increase his popularity, Shi Yuzhu set a precedent in the industry and resorted to the trick of paying players wages. This is the essence of the free mode - "Let the poor play for free, let the rich play happily, and make the rich money".For this reason, you can even "raise 100 people to play with 1 person". Since "Zhengtu" was first launched on the market and quickly scaled up, all online games in my country have also turned to free-to-play models.This has directly stimulated the development of my country's online game industry. According to Shi Yuzhu, the growth rate of the market size in the past two years has exceeded 70%, and it will not be lower than this figure in 2007, and it is expected to exceed 10 billion yuan. With the birth of "Zhengtu", the original three-legged pattern has been broken, and "Zhengtu" has become the new leader. Shi Yuzhu's second piece of "equipment" is equally important, that is, he has an extraordinary ability in marketing management, and can establish a marketing team with super executive power in small and medium-sized cities and even rural markets that others think are thin profits, and tap Come out of the gold mine. In fact, it is precisely because of these two excellent skills that Shi Yuzhu has developed that he is invincible and proud of the world. Shi Yuzhu has always been very proud of his team's execution ability. "If anyone says that our execution is poor, he can say so, but I will never admit it. Every New Year's Eve, you can go to 500,000 shopping malls and pharmacies across the country to see. Others go home early for the New Year, and our 9,000 3 employees are still braving the cold wind and meticulously engaging in melatonin promotion. If the execution is not good, where does the drive come from?" Shi Yuzhu's second item of equipment was also bought at a price of several hundred million from his fiasco in the first half.On the eve of the giant's collapse in 1996, the company was in chaos, and deception was commonplace. "Everyone said that he had done so many things, but the results were all false reports. I was deceived too badly." That year, Shi Yuzhu's brain gold sales were 560 million yuan, but there were more than 300 million bad debts.Funds are ruthlessly swallowed up in every link, which is also the fuse of the capital chain breaking. Therefore, the first step for Shi Yuzhu to forge the executive force of the team is to start with the management of cash flow.When doing Melatonin, the headquarters sells the goods to dealers in various places, and the big and small dealers treat them equally, and all of them pay first and then ship; but on the terminal side, sales promotion, market maintenance and other work are mainly in charge of branch companies established by Shi Yuzhu in various places.No matter how much trust he has with the branch managers, Shi Yuzhu is determined not to let them touch the payment. The payment is a matter between the distributor and the headquarters. In the health care product industry, 10% of bad debts can be regarded as an excellent company, and 20% is also normal. However, under this model, Melatonin has sold more than 10 billion yuan in the past 10 years, but the amount of bad debts is still 0. At the same time, Shi Yuzhu also asked managers from all over the country to "mutually protect" their responsibilities.When I first started working on melatonin, the headquarters stipulated that the branch company should maintain the terminal every day and report the service status of each terminal. If there is a missed report, a late report will be fined 5,000 yuan a day.One manager didn't take the system issued by the headquarters seriously at all, and failed to report once a month. According to regulations, he should be fined 150,000 yuan. But the manager's salary is not enough to punish, what should I do?Shi Yuzhu then fined the guarantor's wages and the guarantor's guarantor's wages. He was fined 5 floors in a row until the fine was 150,000.Everyone was finally afraid, and no one dared to play with the company's system anymore. In order to improve execution, Shi Yuzhu also set up a picket team of 50 people for Melatonin, which quietly conducts market pickets outside all year round. Once the branch is found to be falsifying or concealing problems, the branch will be punished.In addition to the picket team at the headquarters, the provincial branches also have picket teams to check the city-level market, and the city-level picket team also checks the county-level market. It is this kind of arrangement that makes Melatonin's marketing team very strong in each terminal, getting rid of the heavy dependence of general health care products companies on distributors.At present, melatonin is the only health care product that allows its marketing network to cover county-level markets. Secondly, Shi Yuzhu also advocates a corporate culture in the company that "if there is a reward, there must be a punishment, and the reward and punishment must be matched", "only recognize the credit but not the hard work; do what you say, don't say it if you can't do it".Compared with ordinary companies that only reward the advanced and do not punish the laggards, every time Shi Yuzhu holds a summary meeting, the best and the worst must be on stage at the same time.For every manager, Shi Yuzhu not only provided them with the possibility of obtaining huge bonuses, but also gave them the responsibility of accepting large fines if they failed to do well.The same is true for front-line sales staff. If they don’t do well, they can’t even guarantee a basic salary of 300 yuan, but if they do well, they can get an astonishingly high sales commission. When doing melatonin, this marketing management model has received miraculous effects, so that people call it "melatonin marketing". After entering the online game industry, Shi Yuzhu quickly discovered another Achilles' heel of this industry, that is, he focused all his attention on Beijing, Shanghai, Guangzhou and other big cities, and did not pay attention to small and medium-sized cities and rural markets at all. "The Chinese market is pyramid-shaped. The top of the tower is Beijing, Shanghai, and Guangzhou. The bottom is large and medium-sized cities and small cities. The base of the tower is the vast rural areas. In fact, the market is getting bigger as it goes down. You are poor, and your spending power is not weak. If you occupy all the first-tier cities, it is less than 1/10 of the market below." Shi Yuzhu copied his melatonin-style marketing of surrounding cities from rural areas, and established offices in almost all small and medium-sized cities and 1,800 counties without saying a word, and quickly established an absolute market advantage. Right now, a heavyweight counterpart has also begun to infiltrate small and medium-sized cities.Facing the upcoming fierce competition, Shi Yuzhu said lightly: "I am not afraid of others competing with me. I have to pay tuition fees to enter this market. It may take three years for my opponents to get their hands on the door." In medium-sized cities, "Zhengtu" occupies 80% of the strategic resources such as the walls of Internet cafes, and all other peers can only share the remaining 20%. In small cities and county towns, "Zhengtu" has more obvious advantages. For example, in these Internet cafes in small and medium-sized cities, our two families compete to put up posters, you cover mine, and I will cover yours.If our poster is covered by the opponent, our people will definitely find it within 24 hours, and the opponent will not look at it for a week.For another example, everyone covered each other's posters, and our people quickly came up with a coup, which was to make the posters a circle larger than the opponent's, and write "Zhengtu" all over the side, so that the opponent could not finish covering them no matter what.This is the difference in execution. Although 10 years have passed, today's Shi Yuzhu still often reflects on that "famous failure".He said: "The most precious treasure in my life is that unforgettable experience that will never be forgotten." He also said: "Most of the summaries of successful experiences are distorted, and the summaries of failure lessons are correct." There is no doubt that the experience of "died once" must have left an indelible mark deep in Shi Yuzhu's heart. On weekdays, Shi Yuzhu always has a few items in his hands.One is an exquisite purple clay pot with his name engraved on it, which he would take a few sips from time to time; the other is cigarettes and a lighter. Shi Yuzhu's smoking is very special. He has not taken a few puffs from a cigarette, and when he wants to speak, he pinches the long cigarette with three fingers and pokes it into the ashtray. After a few words, he lights a new one for himself. of.In less than half an hour, the ashtray was crowded with a bunch of "cigarette butts", all with long "necks". ——For Shi Yuzhu, maybe it doesn’t matter whether he smokes or not, what brand of cigarettes he smokes, the important thing is that he must have something to hold in his hand, so that he can feel down-to-earth. Shi Yuzhu told us that he re-registered "Giant Company" and will soon include all its businesses such as online games, investment, and health care products. Shi Yuzhu also told us that he bought a piece of land 1 kilometer long and 1 li wide in Songjiang, Shanghai, and built a headquarters. In 2008, he will move all his business there. "However, this time I don't dare to build a higher house. The shorter one has only three floors."