Reborn Entrepreneurial Giant

Honor Watch has sold about 5 million units in the past year since it went on sale. Compared with Apple Watch’s annual sales of 12 million units in history, there is a big gap between the two sides, but this sales volume still exceeds the sum of sales of all other peers.

The price of Honor Watch last year started at US$399, which is not cheap. The average price of other brands is less than US$199. This year, it released a sports version with a minimum price of US$299. The lower price is mainly due to the difference in materials, such as the lack of Apple Later, sapphire glass was used together, but superhard gold was developed: an alloy mixed with gold powder and ceramic particles, and there were plans to incorporate artificial diamonds into gold.

Gold Honor Watch is definitely a luxury item, so Honor took the lead in co-creating a $999 watch with a well-known luxury brand, which is only sold in well-known big cities around the world. As for the gold version of the smart watch, which is equivalent to handmade, it is definitely not priced according to the cost. Qu Li has no confidence in how much it will sell, but he has to try it. This is part of the brand upgrade.

There is no news about Apple Watch yet, maybe they are waiting for the sapphire glass, Qu Li is not discussing with them about Apple, but about the acquisition of a traditional watch company, Sea-Gull Watch located in Tianjing.

The main reason is to share the cost of the gold material. Electric watches need to be charged no matter what, so that mechanical watches can transcend time and be passed down from generation to generation. Seagull's valuation was not high, and later Fuxing acquired 65% of Seagull's shares for 522 million. Honor bought it, and will find opportunities to promote it globally in the future.

"We are a technology company, not a luxury company." Lei Jun objected, and no one supported Qu Li's outrageous idea.

"Why do you want to acquire Seagull, just to digest the research and development costs of superhard gold materials?" Some people doubted

"Probably want to create a luxury brand for the country?" This is Qu Li's most sincere idea, but even the United States, the most technologically advanced country, does not have any excellent luxury companies. It seems that it is not so unacceptable that China cannot find a luxury brand. .

In the end, Qu Li did not insist, but he told Chen Danlin his idea, and let Fenghua International buy it, or control the majority of the shares first. Although the scale of the watch industry is small, since mechanical watches, a thing of little practical value, can exist for a long time, it can be seen that some needs of a small number of people are met.

The production capacity and manufacturing level of domestic mechanical watches have reached the industry's excellent level, but the price cannot be sold. This phenomenon will inevitably change in the future when the national power becomes stronger and stronger. But if you want to change domestic consumers' perception of a certain brand, marketing is essential. The super-hard gold craftsmanship is quite powerful. If you bring a seagull watch into space in the future and accept the "infiltration" of cosmic energy, it will be able to Can't sell it at a high price of more than 100,000?

Marketing is a gimmick, young people’s ideas must be stronger than in the past, and there will always be a way to make domestic luxury goods occupy a place in the world.

"The barriers to the luxury goods industry are difficult to break through, but China is different. We have a civilization of 5,000 years. The European and American world will eventually get to know us again and understand the luxury goods blessed by Chinese culture. Once we succeed in occupying a place in this industry, we will be able to guarantee income in the future..." Qu Li wants to prepare for his retirement life. The more successful Glory and Jumei are, the more his legendary life can add to luxury brands.

Qu Li persuaded Chen Danlin that it would not be difficult for her to come forward to buy Seagull Watches, and if he encountered difficulties, he could still come forward.

Honor Watch’s annual sales revenue of 2 billion US dollars is by no means a small figure, which deserves their attention, but Qu Li is more concerned about the acquisition of Honeycomb Energy. The market prospect of power/energy storage batteries is very huge, but if you really want to do this, Qu Li Li's original intention of transforming Honor into a consumer product company had no choice but to end without a problem. The battery is aimed at enterprise users.

"What is our position in the electric vehicle industry?" Qu Li discussed in a meeting of Honor

Glory involves the entire industry chain of pure electric vehicles, but some are destined to be difficult to popularize. For example, the autonomous driving solution needs to be deeply involved in the overall design of the car. Why would a major manufacturer use someone else's solution?

The research and development of batteries, including solid-state batteries, requires a lot of time and energy. The production involves extreme manufacturing, requires 4G/5G networks, and various information and intelligent supports. Without money, it is absolutely impossible.

To put it simply, Honeycomb Energy needs money now, a lot of money. If Glory does not buy it, then Future Geometry, Quli, etc. will need continuous investment. Qu Li is convinced that this industry has a future, but how many car companies are willing to contribute to friends, returning to Glory should allow Honeycomb Energy to gain more room for survival.

"What I mean is that Honor acquires Honeycomb Energy, and only retains batteries, advanced assisted driving and chip design in the field of electric vehicles; Qiancheng Geometry acquires autonomous driving and motor departments, which does not involve chips; Great Wall Huaguan exists as a supporting company, and its main products include The active suspension system also includes MCU, IGBT module, silicon carbide chip, laser/millimeter wave radar..." Qu Li

His idea is to change the future geometry in the direction of Tesla, and one day change from a subsidiary of Glory to a public enterprise, and even introduce state-owned assets. Give up the idea of ​​vertical integration of the entire industry chain and maintain a certain degree of control. Qiancheng Geometry is now the major shareholder of Great Wall Huaguan, and can also become a shareholder of Ningde Times. In the future, not only chips from Honor, but also chips from Qualcomm and Nvidia can be used.

If you learn from BYD's vertical integration, although you can adjust the profit distribution within the supply chain, while reducing costs, it also limits the company's use of the latest technology, because it is impossible to watch its own companies go bankrupt without business.

Future Geometry is not a domestic independent brand that pursues cost-effectiveness. Cost control is not the most important thing, and the priority of improving product strength will be higher.

Qu Li's idea is not exaggerated, all the logic is not complicated, and he was quickly understood. However, Great Wall Huaguan needs automotive motors to provide products for its friends, so Qiancheng Geometry can only acquire part of its motor business.

After this adjustment, Qiancheng Geometry will lose its shares in Honeycomb Energy, and gain the autonomous driving (algorithm), smart cockpit and motor department formed by Honor, Arima's car design department, plus the electronic control team that Geometry Auto had before.

Great Wall Huaguan also needs to make some adjustments, give up some non-core or less technically difficult businesses, and sell them to supply chain companies around Qiancheng Geometry. The car design department is retained, but the car development team is all transferred to Qiancheng Geometry.

In general, after this adjustment, Qiancheng geometry limits the scale of R\u0026D investment and can better control the cost of auto parts. Completely changed from the previous extensive management to the current increasingly refined and streamlined management mode.

Qiancheng Geometry Vice President Zhang Qinan, CFO Deng Weijiang and others played an important role in it! (end of this chapter)