In 1903, a salesman named Kim Gillette invented a replaceable blade razor. Next, he sold hundreds of knives to the military and banks at almost free prices. He managed to tie the knives to almost all the goods in order to cultivate Gillette's loyal users. In just one year, the sales of blade razors increased from 51 to 90,000, and the sales of blades increased from 168 to 12.4 million!
Kim Gillette, who was full of utopia and imaginary fantasy, might have never imagined that while he had realized his dreams, he also created a new business model for future generations—a free economy. More than 100 years later, an entrepreneur named Jia Yueting applied Jin Gillette's approach to smart terminals in the era of mobile Internet.
LeTV's Blue Ocean
April 14, is an unusual day for LeTV. On April 14, 2015, “Winner†LeTV launched a super mobile phone; on April 14, 2016, “Winner†was upgraded to “Crazyâ€, and LeTV, which has always been on an unusual road, will once again penetrate the hardware manufacturers. The price of the bottom line, from the hardware negative to hardware free.
Let's take a look at the status quo of the TV industry, which is already profitable and has been deemed as a "make up knife." "The profits of listed companies for one year still do not reach Shenzhen's house." Some media have described the low profits of TV manufacturers. “The profit of a few thousand yuan television is only a few tens of yuan.†A senior executive of a well-known domestic television producer also expressed his frustration.
The new president of LeTV’s new product, Liang Jun, also stated that since 2012, the golden growth cycle of smart TVs in the past four years has gradually disappeared. With the start of 2016 and 2017, all manufacturers will still enter the market saturation like traditional television. A fierce new situation in competition.
However, in the dismal situation of the television industry, LeTV is like a "crazy" blindly rushed into the smart terminal market.
Different business models, different perspectives, LeTV see the market is completely different. For the hardware manufacturer, it is the intelligent terminal industry of the Red Sea, but let LeTV see the Blue Ocean.
"We are concerned not only with how many people are buying smart TVs, but also about how many people are watching smart TV content and how many LeTV members are enjoying LeTV's ecological services." Liang Jun said.
Statistics show that the number of TVs currently in the domestic market exceeds 600 million, and most of them are still traditional TVs. Even this year, the penetration rate of smart TVs is only over 20% in the entire market. According to Liang Jun, in the coming decade, for the business model of LeTV, this market is definitely a blue ocean market.
How to quickly expand the user base and lead the consumer era is the key to deciding whether LeTV can take the lead in the Blue Ocean. Reversing the original "hardware to send member service" model, instead of "hardware free, sticking to the content service users", this is music as the prescription for the occupation of the user's market.
Dimension reduction attack
At the beginning of the 20th century, merchants gave away one kind of merchandise in a certain way for the purpose of selling another product. This “free economy†model represented by the Gillette razor promoted a consumer revolution and determined the future. Hundreds of years of business.
In another book by long tail theory author Chris Anderson, Free: The Future of Business, writes that free can help consumers speed up making purchase decisions, making more people decide to try something new. Free appears to have given up part of the direct income, but it has brought more tryers.
This "free magic" has also been verified in 21st century Internet companies. In April 2004, Google announced the availability of an email service, Gmail, when Google’s share of the email market was zero, but it took the lead in providing one GB of free space. In less than two years, Gmail became an email. The boss of the website.
LeTV tried to use "free magic" to change spending habits and create a new economic form. On March 30th, at the conference of the "Ecological Crazy Season Set-up in April", Levision Holdings CMO Drum Steel announced that on April 14th, LeTV Mall, LePar, Jingdong Mall, Lynx Mall LeTV, super mobile phones, etc. Full access hardware is free.
Taking LeTV Super TV membership as an example, the previous policy was: nude machine price + (490-300) x N calculation method, that is, purchase a 490 yuan a year super film and television members, hardware prices straight down 300 yuan, until 0 yuan. The new membership policy is: bare metal price 0 yuan +490 × N, that is, users only need to purchase the corresponding annual fee, you can get free hardware.
From sending hardware to sending members, to sending members to send hardware, and changing from "operating products" to "operating users", LeScies realizes that expanding the user base rapidly is the key to the current mobile Internet era. LeTV reversed its original marketing model. .
"Different from the free economic model of the 20th century, content services were used to subsidize hardware, content services were used to subvert the traditional hardware vendor's business model, and an industry was used to subvert another industry. In fact, LeTV did a continuous attack." According to LeTV analysts.
Ecological force
In Peng Gang’s view, the entire industry is currently sticking to the old and insisting that hardware premiums increase the high threshold. Users are deeply trapped in the consumption trap for hardware and pay for non-core values. April 14 will be a turning point, and a new kind of ecological consumption concept will be established quickly.
Peng Gang believes that the concept of ecological consumption is to allow users to only pay for the value, the future will no longer pay for channel costs, no longer pay for the brand premium, and even no longer pay for the hardware premium.
"Hardware is only the medium, content and services are the essence, and content and services are the foundation of hardware development. Cutting down the hardware costs can provide better content services," said Drum Steel.
Hardware is free, how is Le as so capricious?
This year, Alibaba, Tencent, Xiaomi, and the storm all came up with their own ecological strategies. Different from other companies, LeTV is standing in the higher dimension of traditional enterprises. The hardware is free. For traditional TV manufacturers such as Hisense, Changhong, Samsung, etc., it is simply a broken door, because LeTV cannot replace content and services that other manufacturers cannot match.
"Doing like music," this is the industry's impression of Xiaomi. Xiaomi also mentions ecology and also offers member services. However, can a member buy hardware and Xiaomi can do it? Obviously not!
Along with Jia Yueting, the focus of the IT Summit was his interpretation of the ecological economy: “Ecological economy can generate cross-border counter-revolution among different species and continuously create new value; and, between different species, Organic collaboration, symbiosis, win-win, and sharing are the core concepts that we think of ecological economy."
"Symbiosis, win-win, sharing, products and services are all open, and the ecology of LeTV is kneading dough. You have me and me among you, and the cooperation between simple industrial chains cannot be achieved. Someone else can't learn!†said the analyst.
Liang Jun said, “We did not regard the TV product itself as the focus of business, but as a platform to bring Internet services to users. On this platform, we can have both members’ income and various advertisements. The income, synchronization of cinema, TV shopping, games, etc., are given to the hardware through multiple income subsidies."
Under the ecology of LeSport's seven-sister ecology, mutual cooperation and mutual reversal is exactly the basis for music's “boldnessâ€.
Peng Gang hopes that the hardware will push the industry to a new level free of charge, so that all people will no longer pay for the hardware! However, for now, hardware free may have a long way to go, April 14 " Hardware Free Day is just the beginning of a free hardware long march!
Kim Gillette, who was full of utopia and imaginary fantasy, might have never imagined that while he had realized his dreams, he also created a new business model for future generations—a free economy. More than 100 years later, an entrepreneur named Jia Yueting applied Jin Gillette's approach to smart terminals in the era of mobile Internet.
LeTV's Blue Ocean
April 14, is an unusual day for LeTV. On April 14, 2015, “Winner†LeTV launched a super mobile phone; on April 14, 2016, “Winner†was upgraded to “Crazyâ€, and LeTV, which has always been on an unusual road, will once again penetrate the hardware manufacturers. The price of the bottom line, from the hardware negative to hardware free.
Let's take a look at the status quo of the TV industry, which is already profitable and has been deemed as a "make up knife." "The profits of listed companies for one year still do not reach Shenzhen's house." Some media have described the low profits of TV manufacturers. “The profit of a few thousand yuan television is only a few tens of yuan.†A senior executive of a well-known domestic television producer also expressed his frustration.
The new president of LeTV’s new product, Liang Jun, also stated that since 2012, the golden growth cycle of smart TVs in the past four years has gradually disappeared. With the start of 2016 and 2017, all manufacturers will still enter the market saturation like traditional television. A fierce new situation in competition.
However, in the dismal situation of the television industry, LeTV is like a "crazy" blindly rushed into the smart terminal market.
Different business models, different perspectives, LeTV see the market is completely different. For the hardware manufacturer, it is the intelligent terminal industry of the Red Sea, but let LeTV see the Blue Ocean.
"We are concerned not only with how many people are buying smart TVs, but also about how many people are watching smart TV content and how many LeTV members are enjoying LeTV's ecological services." Liang Jun said.
Statistics show that the number of TVs currently in the domestic market exceeds 600 million, and most of them are still traditional TVs. Even this year, the penetration rate of smart TVs is only over 20% in the entire market. According to Liang Jun, in the coming decade, for the business model of LeTV, this market is definitely a blue ocean market.
How to quickly expand the user base and lead the consumer era is the key to deciding whether LeTV can take the lead in the Blue Ocean. Reversing the original "hardware to send member service" model, instead of "hardware free, sticking to the content service users", this is music as the prescription for the occupation of the user's market.
Dimension reduction attack
At the beginning of the 20th century, merchants gave away one kind of merchandise in a certain way for the purpose of selling another product. This “free economy†model represented by the Gillette razor promoted a consumer revolution and determined the future. Hundreds of years of business.
In another book by long tail theory author Chris Anderson, Free: The Future of Business, writes that free can help consumers speed up making purchase decisions, making more people decide to try something new. Free appears to have given up part of the direct income, but it has brought more tryers.
This "free magic" has also been verified in 21st century Internet companies. In April 2004, Google announced the availability of an email service, Gmail, when Google’s share of the email market was zero, but it took the lead in providing one GB of free space. In less than two years, Gmail became an email. The boss of the website.
LeTV tried to use "free magic" to change spending habits and create a new economic form. On March 30th, at the conference of the "Ecological Crazy Season Set-up in April", Levision Holdings CMO Drum Steel announced that on April 14th, LeTV Mall, LePar, Jingdong Mall, Lynx Mall LeTV, super mobile phones, etc. Full access hardware is free.
Taking LeTV Super TV membership as an example, the previous policy was: nude machine price + (490-300) x N calculation method, that is, purchase a 490 yuan a year super film and television members, hardware prices straight down 300 yuan, until 0 yuan. The new membership policy is: bare metal price 0 yuan +490 × N, that is, users only need to purchase the corresponding annual fee, you can get free hardware.
From sending hardware to sending members, to sending members to send hardware, and changing from "operating products" to "operating users", LeScies realizes that expanding the user base rapidly is the key to the current mobile Internet era. LeTV reversed its original marketing model. .
"Different from the free economic model of the 20th century, content services were used to subsidize hardware, content services were used to subvert the traditional hardware vendor's business model, and an industry was used to subvert another industry. In fact, LeTV did a continuous attack." According to LeTV analysts.
Ecological force
In Peng Gang’s view, the entire industry is currently sticking to the old and insisting that hardware premiums increase the high threshold. Users are deeply trapped in the consumption trap for hardware and pay for non-core values. April 14 will be a turning point, and a new kind of ecological consumption concept will be established quickly.
Peng Gang believes that the concept of ecological consumption is to allow users to only pay for the value, the future will no longer pay for channel costs, no longer pay for the brand premium, and even no longer pay for the hardware premium.
"Hardware is only the medium, content and services are the essence, and content and services are the foundation of hardware development. Cutting down the hardware costs can provide better content services," said Drum Steel.
Hardware is free, how is Le as so capricious?
This year, Alibaba, Tencent, Xiaomi, and the storm all came up with their own ecological strategies. Different from other companies, LeTV is standing in the higher dimension of traditional enterprises. The hardware is free. For traditional TV manufacturers such as Hisense, Changhong, Samsung, etc., it is simply a broken door, because LeTV cannot replace content and services that other manufacturers cannot match.
"Doing like music," this is the industry's impression of Xiaomi. Xiaomi also mentions ecology and also offers member services. However, can a member buy hardware and Xiaomi can do it? Obviously not!
Along with Jia Yueting, the focus of the IT Summit was his interpretation of the ecological economy: “Ecological economy can generate cross-border counter-revolution among different species and continuously create new value; and, between different species, Organic collaboration, symbiosis, win-win, and sharing are the core concepts that we think of ecological economy."
"Symbiosis, win-win, sharing, products and services are all open, and the ecology of LeTV is kneading dough. You have me and me among you, and the cooperation between simple industrial chains cannot be achieved. Someone else can't learn!†said the analyst.
Liang Jun said, “We did not regard the TV product itself as the focus of business, but as a platform to bring Internet services to users. On this platform, we can have both members’ income and various advertisements. The income, synchronization of cinema, TV shopping, games, etc., are given to the hardware through multiple income subsidies."
Under the ecology of LeSport's seven-sister ecology, mutual cooperation and mutual reversal is exactly the basis for music's “boldnessâ€.
Peng Gang hopes that the hardware will push the industry to a new level free of charge, so that all people will no longer pay for the hardware! However, for now, hardware free may have a long way to go, April 14 " Hardware Free Day is just the beginning of a free hardware long march!
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