Chapter 696 The ultimate form of OEM

In the private room of the clubhouse, Li Weidong and Rebs talked about some detailed questions.

Chairman Li, how much do you plan to invest in this mobile operating system? Mr. Lei asked.

In the early stage, I plan to invest one billion yuan. Li Weidong smiled slightly: Enough for you!

So much! Rebs was shocked.

I'm also worried that one billion is not enough to make a mobile phone operating system! Li Weidong replied.

Enough is definitely enough. As long as you find the right person, it won't take so much! Rebs took a deep breath: To be honest, I have never led such a large project.

How come? For a project as big as WPS, there must be a lot of development funds! Li Weidong asked.

Actually, there are not so many. Take WPS as an example. We have made so many versions over the years. Our accumulated R\u0026D investment is tens of millions of RMB. Rebs replied.

It's only a few tens of millions? I thought that for software research and development, it would take hundreds of millions of dollars to produce results. Li Weidong said suddenly.

When Gates built the Windows system, he didn't spend a lot of money. The key is the direction of research and development. When doing software research and development, the most important thing is to have the right direction. As for technical problems, you can let programmers solve them. Anyway, they are all for programmers. Payroll.

Rebs paused, then said: Software development is not the same as writing code, making a software, it is also divided into several steps. First of all, we must formulate a plan, that is, clarify what kind of software is to be made.

Then, do market demand analysis. Only when there is market demand can the product be sold. After that is the design phase of the product, which simply means clarifying the specific functions of the software. This phase does not even require the participation of programmers.

After the design is completed, it is the programmer's turn to start programming. The products produced after programming will be tested, continue to improve the functions, and fix the bugs, and then they will be put into operation. After being put into operation, there are follow-up maintenance work.

Li Weidong smiled slightly; I'm just a layman. I just pay for it, and you have to do it.

Chairman Li,

You are embarrassing me. After all, it is a billion-dollar project. I have to work on the listing of Jinshan. I can't do it alone. ' Rebs said.

Li Weidong understood what Rebs meant. He knew that Rebs wanted to recruit others. After all, for such a big project, Li Weidong had to spend so much money. If Rebs wanted to have the right to speak, one person was definitely not enough.

What Li Weidong cares about is whether the project can be successful or not, but he doesn't really care about the right to speak. So Li Weidong said, One hero with three gangs, if you think there are suitable candidates, you can also bring them into our project.

Rebs pondered for a moment, then said; There are candidates, but if you want to recruit them, it will take some time.

If we have time, we have it. Li Weidong continued: Apple's iPhone will not be officially launched until the end of June, and our system can learn from Apple's IOS. Before the official launch of the iPhone, it should be enough for us to form a team.

Rebs nodded, and then said: At present, I can think of a few candidates, the first is the engineering director of Google China Engineering Research Institute, named Lin Wenwu, who was the founder of Microsoft Asia Engineering Institute and won the highest contribution from Microsoft Corporation. Gold Star Award.

Director Lin has participated in the research and development of large-scale software such as Windows NT3.51, Windows NT4, IIS, Exchange 2000, and Windows 2000. He is very experienced in operating system development.

Google's engineering director? Li Weidong frowned and continued; As far as I know, Google is also working on a mobile operating system. There was an Android operating system before, which was acquired by Google. This person has to be hired by us. , or it's cheaper for Google.

If you want to invite him here, just giving him money is not enough. Back then, there were several investment banks on Wall Street that offered him a salary several times higher than Microsoft's, but he still chose to go to Microsoft. So he had to give him a partner. position, and he has to give him enough autonomy. Rebs said.

No problem. As long as you think it's worth it, we'll give whatever you want. Li Weidong agreed without thinking.

Rebs went on to say: The second candidate is Zhao De, the chief designer of Xinji Design. He used to be the director of the Engineering Design Department of Beijing University of Science and Technology. He has no professional level. Whether it is software or hardware, it is necessary to He. The third is the current development director of Microsoft's Chinese Academy of Engineering...

Rebs mentioned several people one after another, all of whom are the team of the future Xiaomi company.

Li Weidong is still the same as the original statement: I don't understand, I just pay, and you can do it for one billion.

It was the first time Rebs had seen such a big boss. If he hadn't heard of Li Weidong's self-made fortune, Rebs would have thought he had met a foolish boss.

...

The endocrinology department of a tertiary hospital is overcrowded, and there are not enough beds in the ward, so the beds are filled up even in terms of walking capacity.

Most of the people hospitalized here are diabetics.

Early in the morning, Director Gao and his resident doctors started rounds.

Walking to the window of one of the elderly patients, Director Gao looked at the patient's fasting blood sugar data this morning, then asked carefully, and then said:

Uncle Liu, in your current situation, your blood sugar is relatively stable, and you can go to the hospital for discharge. After returning home, you must take medicine on time, and you must control your diet, especially rice porridge, but you can't eat it any more. Blood sugar is too fast.

In addition to keeping your mouth shut, you have to stretch your legs and do some aerobic exercise on weekdays. However, considering your age, exercise in moderation should not be done too intensely.

Another very important point is to monitor the blood sugar situation. The fasting blood sugar in the morning should be regularly detected and recorded. If your blood sugar is too high and you can't take medicine, you should seek medical attention in time.

In the face of this patient who can be discharged, Director Gao gave a responsible and careful instruction.

Uncle Liu was afraid that he would not be able to remember, so he simply took out a piece of paper and wrote it down. After Director Gao finished his instructions one by one, Uncle Liu said, Director Gao, I have written down everything you said. Take medicine and control your diet, Strengthening exercise is a good thing to say, the key is that it is a little troublesome to come to the hospital early in the morning to monitor blood sugar, and register to queue up for blood test.

Uncle Liu, if you think it is troublesome to come to the hospital to draw blood, buy a blood glucose meter. Prick your finger, the first drop of blood will test your blood sugar, and you will get the result in a few minutes. We have one for sale in our hospital. , or you can buy one by the way, and I will ask the nurse to teach you how to use it later. Director Gao said.

Glucose meter? That thing is quite expensive! I heard that a blood glucose meter can cost tens of thousands of dollars! Uncle Liu said.

That was in the past. If you count a few boxes of test strips, it really cost tens of thousands of dollars. Director Gao paused, and then continued; But now it's not that expensive. If you buy the machine alone, it's six or seven thousand dollars. , mainly because of different brands. The most expensive is Roche, which costs more than 7,000 yuan a set, and the cheap ones are like Omron, which can be bought in the early 6,000s.”

In recent years, the price of blood glucose meters has indeed dropped a lot. The original price of 10,000 yuan has been reduced to six or seven thousand yuan. This is not because the merchants' conscience has found that they benefit consumers, but because the competition has become more intense.

German brand stores of blood glucose meters are the first to enter the Chinese market, such as Roche and Bayer. The quality of German products is not to be said, but the price is really expensive. Today, the price of Roche blood glucose meters is also the most expensive.

Later, blood glucose meters from other countries also entered the Chinese market, such as Johnson \u0026 Johnson and Abbott in the United States, and Omron in Japan. These brands are also the top international brands in the medical device industry, and they are no worse than Roche and Bayer in terms of popularity.

Americans, Germans and Japanese, in order to snatch the Chinese market, the price of products will naturally be reduced, which will ultimately benefit Chinese consumers.

But the price of six or seven thousand was still too expensive for the Chinese people at that time.

Only listen to Director Gao and then explained: In terms of performance of blood glucose meters, it must be the best from Roche, Germany, and the sensitivity of Roche blood glucose meters is the highest, followed by Bayer, Germany.

And Roche's blood collection volume is also the lowest, only about 0.5 microliters, and Bayer's requires 1 microliter. It's just that Roche's price is also the most expensive. The one I just said is more than 7,000 yuan a set is Roche's.

Which one is in the early six thousand? Uncle Liu asked immediately.

Omron's products are in the early 6,000s. They are Japanese products, and their sensitivity is lower than that of German products. Director Gao replied.

Uncle Liu hesitated for a moment, then said, It's still too expensive. It only cost me five yuan to get blood at the hospital, and the registration fee is three yuan, which is eight yuan. The round-trip bus fee is two yuan. A total of blood sugar is ten dollars.

If you buy a blood glucose meter, the cheapest one costs 6,000 yuan, enough for me to come to the hospital for 600 tests, and the market value of that blood sugar test is more than ten yuan!

This hospitalization has already cost a lot of money. I am an ordinary retired worker. The monthly pension is only 1,500 yuan. If it is 6,000 yuan, I have to eat and drink for four months to save it. .

After listening to Uncle Liu's narration, Director Gao just sighed helplessly. He has been a doctor for more than 20 years. He has seen many patients who have no money to see a doctor and can only go home and wait to die. There are countless.

So Director Gao said: Uncle Liu, if you think the imported blood glucose meter is more expensive, you can consider the domestic blood glucose meter, which is a puppy brand, and the price is cheaper.

How much is a domestic blood glucose meter? Uncle Liu asked immediately.

More than 3,000 yuan, even a year's worth of test strips will not cost 4,000 yuan. Director Gao said.

It's so cheap! Uncle Liu was taken aback.

However, the sensitivity of domestic blood glucose meters is not as good as imported ones, such as Roche's blood glucose meters. If blood drips on it, the results can be obtained in ten seconds. Domestic blood glucose meters have to wait for more than half a minute.

Director Gao continued: In addition, the blood collection volume of domestic blood glucose meters is also large. Roche only needs 0.5 microliters of blood, but the blood glucose meter for dogs requires 2 microliters of blood to detect more accurate results.

It's only half a minute longer, it's not a big deal. But what are you talking about, 0.5 microliters and 1 microliters, how much are there, and how big is the difference? Uncle Liu asked.

0.5 microliters is a small blood droplet, almost the amount of blood an ordinary mosquito sucks at one time! Director Gao explained.

That 2 microliters means a few more bites from mosquitoes. Uncle Liu nodded, and immediately said, Then I'd better buy domestically produced ones, it can save 3,000 yuan, and a few more drops of blood will also help. It doesn't matter!

For Uncle Liu, a few more drops of blood can save 3,000 yuan. He would rather bleed more and spend less.

After the rounds were over, Director Gao returned to his office.

After a while, there was a knock on the door, Director Gao said to come in, and a man in a suit walked in.

Director Gao, I'm bothering you! the man in the suit said politely.

It's Manager Chen. Director Gao pointed to the chair in front of him, and then said, Sit down!

This manager Chen is a pharmaceutical representative by profession and now works for Bayer AG.

In the endocrinology department, the most common medical representatives are probably people from Bayer.

Bayer has been rooted in the Chinese market for many years. It is no exaggeration to say that the shadow of Bayer can be found in the endocrinology departments of all domestic hospitals.

If nothing else, the food models commonly used by endocrinologists to introduce sugar content to patients are almost all provided by Bayer.

In an era when medical representatives could travel freely among various departments of the hospital, Bayer's medical representatives appeared in the endocrinology department more frequently than the chief resident physician.

There are always naps in the hospital, and the medical representative can't wait to stay in the ward 24 hours a day. It is best to watch the doctor prescribing medicine one-on-one.

I saw this manager Chen with a humble expression and said, Director Gao, I took a look. Recently, the sales of our Bayer blood glucose meter in your department has dropped by more than 70%!

Director Gao looked down at the medical records and said, It's not just yours that have dropped, Roche's and Johnson \u0026 Johnson's sales have all dropped. It's mainly your blood glucose meters, which are more expensive. Our domestic blood glucose meters are more expensive. It is cheaper, only half of yours, so patients prefer to buy domestic blood glucose meters.”

Domestic oximeter? You mean the dog blood glucose meter! As far as I know, the detection error of the dog blood glucose meter is larger than our detection error, and the sensitivity is much lower. Manager Chen obviously also has some information.

But the puppy's blood glucose meter is really cheap. One is only 3,000 yuan. Director Gao closed a medical record and raised his head: I heard that their electronic blood pressure meter is cheaper. For less than 1,000 yuan, Johnson \u0026 Johnson's blood pressure monitor can't be sold at the Cardiology Department!

Manager Chen hesitated for a moment, then lowered his voice and said, Our products are more expensive, but our products are of better quality! And the rebates we give are higher.

In order to sell massage seats, Li Weidong was the first to engage in gold sales. Now in the medical industry, gold sales have become normalized, and major pharmaceutical companies are doing it.

For example, an imported blood glucose meter sells for 6,000 to 7,000 yuan, and a 20% refund is more than 1,000 yuan.

However, Director Gao curled his lips unmoved: Our doctors will also consider the patient's economic situation when conducting treatment and medication. The effect of imported drugs is indeed better, but many patients really do not use it. So I think, why don't you guys lower the price from Bayer?

The price of the product is decided by the head office. I said it doesn't count! Manager Chen sighed helplessly.

There was no benefit from Director Gao, so Manager Chen had to leave. When I walked to the door of the ward, I happened to see a resident doctor who just got off the night shift.

Mr. Wang, you're off work! Manager Chen rushed forward.

Then Manager Chen started talking about the decline in sales of Bayer blood glucose meters.

I just heard Manager Chen complaining: The price of our blood glucose meter is higher, but the rebates we give are also high! Director Gao, even if he is a benevolent doctor, can't make it through money! Besides, we Bayer and you. The cooperation of Keke is not a day or two, old friends, we should help each other!

Resident Wang smiled slightly, and then said, Manager Chen, the rebates given by Bayer are not low, but the rebates given by the puppy's health are also quite large! Although they sell cheaply, they are better than small profits and quick turnover, right?

What's more, blood glucose meters are not exclusively sold by us. Among the medical equipment stores in front of our hospital, which one does not sell blood glucose meters? Your Bayer's sells for 7,000, while the puppy's only sells for 3,500. The price is clearly marked in the medical equipment store.

The patient is not a fool, go to the store to inquire about the performance and price of the blood glucose meter, and it is not clear at a glance which product is more affordable!

Wang's hospital doctor's words made Manager Chen suddenly enlightened.

When it comes to playing with gold sales, puppy health is the originator, and Bayer can only be regarded as a junior. Since the younger generation of Bayer knows the use of gold sales, how could Puppy Health not use this marketing method!

And the puppy's blood glucose meter is cheaper. Bayer sells one here, and the puppy can sell four or five units there. In the end, the rebate that the puppy can give is even higher.

More importantly, a blood glucose meter is different from a drug.

During the hospitalization period, the medicines used by the patients are all provided by the hospital. Although various therapeutic medicines are also sold in the pharmacy, it is impossible to say that the doctor will issue an order and let the patient go to the pharmacy to buy the medicine according to the order, and then take the medicine. Go back to the hospital for treatment.

Perhaps there are cases in foreign countries where patients are allowed to buy medicines and take them back to the hospital, but with the load and work efficiency of Chinese hospitals, this is definitely impossible.

Therefore, for the patient, the price of the drug is actually opaque. Even if the price is clearly marked, the patient does not know whether the drug is cheap or expensive.

Even if the patient wants to shop around, he will not see the bill until after the treatment. At that time, the consumption has been completed and the medicine has been used in the body, so they cannot get a refund.

But the blood glucose meter is different. As long as it is a medical device store, it will be sold. This is a completely market-oriented product. Whether it is product performance or product price, it is transparent. Patients can shop around before consuming. more suitable for their own products.

Under such circumstances, the cheaper blood glucose meter for dogs can naturally occupy the market quickly.

If it is placed in the future, in the era of developed Internet, the price of a completely market-oriented product like a blood glucose meter will be more transparent. Go to a shopping website to search, the price of the product is clear at a glance, and various user evaluations are also available.

...

Puppy Health Company, Lu Guangming took the last quarter's financial report and introduced it with great interest.

Medical devices are indeed lucrative. Relying on several times the profit margin, the puppy's profit last quarter was still very bright.

The price of domestic blood glucose meters in later generations has hit the 100 yuan ladder. For more than 200 yuan, you can buy a high-performance domestic blood glucose meter.

Among foreign brands, they are completely handed over to Chinese OEMs, and the price is also 100 or 200 yuan. Ordinary imported brands are 500 or 600 yuan. Even the imported goods of the industry's big brother Roche can be bought within 1,000 yuan.

Therefore, the puppy blood glucose meter sold for more than 3,000 yuan, and the profit was several times enough. In those days, Roche's 10,000 yuan blood glucose meter was purely to bully the Chinese people who would not make them themselves, and made dozens of times of profits with tears.

After listening to Lu Guangming's report, Li Weidong said, Old Lu, come to the United States with me in two days!

Okay. Lu Guangming agreed first, then asked, What are you going to do in the United States?

I'm going to Johnson \u0026 Johnson, I want to do medical equipment for Johnson \u0026 Johnson, Li Weidong said.

Lu Guangming thought for a moment and said, Chairman, we are now doing research and development and making our own products. Whether it is sales, market share, or profits, they are all very good. There is no need for us to be a substitute for other companies. work!

The profit of doing OEM is not high, and if we do OEM for Johnson \u0026 Johnson, the cost of Johnson \u0026 Johnson's products will inevitably decrease, and the price of their products will also drop, but it will create competition for ourselves!

With the scale of a company like Johnson \u0026 Johnson, even if we don't do OEM for Johnson \u0026 Johnson, they will come to China to set up factories. Instead of letting them set up their own factories, it's better for us to preemptively! Li Weidong laughed and continued:

The biggest advantage of our manufacturing in China is cost. Facing the low-cost competition of manufacturing in China, foreign companies have only two choices. One is to withdraw from the Chinese market, and the other is to turn themselves into made in China. You can't count on Johnson \u0026 Johnson. Exit the Chinese market!

In all fairness, the technical level of foreign capital is indeed higher than ours, just like blood glucose meters, Omron, Abbott, Bayer, Johnson \u0026 Johnson, their technology is much stronger than ours, not to mention Roche with the best technology!

We want to learn and absorb foreign advanced technology as soon as possible to narrow the technological gap between us. The fastest way is to do OEM for them.

Moreover, as an OEM, as long as the scale is large enough, it is easy to build an entire industrial chain. After we have built the industrial chain, we can have the right to speak in this field.

At that time, even if we no longer accept OEM orders, those foreign companies who want to start a new business and see their new factories will have to look at our face, because the relevant industrial chain is in our hands.

Lu Guangming suddenly realized and nodded his head: It's the chairman's foresight, if we can really build a medical device industry chain, then we will be invincible!

...

Being an OEM is an assembly line dog, earning a lot of hard money, and the big head is taken away by the brand.

For example, Foxconn only earns four dollars to produce an iPhone, and it may only be tens of cents when it is distributed to the workers.

But in fact, Foxconn has built a complete set of supplier industry chains through OEM. There are many companies in these industry chains with direct investment from Foxconn. They all follow Foxconn. Wherever Foxconn goes to set up factories, the supplier industry chain will follow where.

Those who really understand the foundry industry will understand that the most terrifying thing about Foxconn is not the 800,000 workers it employs, but the huge supply chain system behind it.

Four dollars to assemble a mobile phone is not a lot, but if you include the entire component supply chain, the profit can be considerable.

Fortunately, Foxconn is only a OEM, and they do not make electronic products themselves.

Just imagine, if Foxconn also makes electronic products, and builds a Foxconn mobile phone to compete with Apple, when Apple releases new products, it will be able to get stuck in Apple's neck in minutes. As long as Foxconn finds any excuse to delay shipments for a few days, Apple's stock price will have to fall several times.

It is precisely because Foxconn does not make products by itself, so in the end, Foxconn and Apple can only restrict each other and depend on each other. Foxconn cannot do without Apple, and Apple cannot do without Foxconn.

Foxconn and Apple, as long as they can find a replacement, the balance between the two will be broken immediately, and the entire Apple ecological chain will undergo earth-shaking changes.

Doing OEM and branding, and then being able to control the entire product supply chain, and being able to fight against customers in minutes, is equivalent to being a talker in this industry. It can be regarded as the ultimate form of the foundry model.

The ultimate form of OEM enterprises is not unique in China. For example, China's home appliance industry, such as Midea, Galanz, etc., are both OEMs and brands.

The result of the ultimate form is to do OEM for others for a few years, and then buy their business by the way a few years later.

Li Weidong has this kind of plan in his arms.

First, learn the advanced technology of foreign brands by working as an OEM, and then directly acquire their business into their own hands when the time is right.

At that time, several brands operate independently, but the market is their own. It is not a monopoly. It is really beautiful!