Chapter 569 - 410: 10 Billion Advertising Fee! Ma Liyun: What, You Want My Life Too?

"Old Wang, have the heads of the five major regions—Northeast, North China, East China, Central China, and Southern China—submit a layoff list by next Wednesday. Set the proportion at... let’s say 30%."

Wang Xin sat in silence for a long time before suddenly speaking.

He had wanted to say 40%, but he changed his mind at the last second.

He didn’t want to admit defeat, but the March industry report had instantly drained him of all his strength and options.

In terms of capital, market development, and team cohesion, Meituan was no match for Kuai Pao. It couldn’t even compare to Qian Du Group Buy or Dianping.

Only then did he realize Shan Jiawei’s importance to Meituan.

"Thirty percent? That’s quite a lot, Brother Xin. How about we lay off just 10% in each round? The impact would be smaller, and it wouldn’t cause a backlash," Wang Huiwen suggested.

"It’s more painful to be sliced up slowly! A short, sharp pain is better than a long, drawn-out one. If we do 10% in three consecutive rounds, will our ground-promotion ’iron army’ have any fighting spirit left?"

Wang Xin frowned and shook his head in disagreement.

"I’m mainly worried about mass arbitration filings from employees. It would be hard to explain to the Labor Association. If someone protests with banners, it could easily generate negative press," Wang Huiwen explained.

"Give severance to those who are willing to leave. For those who aren’t, transfer them to new positions and pay them only the minimum wage each month," Wang Xin said coldly.

’Wasn’t it easy to force an employee to quit?’

’He had plenty of tricks up his sleeve!’

"Brother Xin, I understand." Wang Huiwen opened his mouth, then sighed and nodded heavily in agreement.

’When the nest is overturned, how can any egg remain intact?’

After receiving funding from Pan-Atlantic Capital, Meituan’s monthly transaction volume had hit rock bottom for two consecutive months and was still declining. Its total performance in March was only 240 million Hua Yuan.

Meanwhile, the number one competitor, Kuai Pao, was far ahead with 2.37 billion in sales.

Qian Du Group Buy was at 1.01 billion, a slight decline.

Dianping was at 570 million, nearly halved compared to its peak in Q4 2012.

All the market share had been snatched up by Kuai Pao and Qian Du Group Buy. The former ate the meat while the latter gnawed on the bones, leaving Dianping with nothing but the greasy water from rinsing the pan.

As for Meituan, soon they wouldn’t even get to drink the water from rinsing the pan.

"Also, we need to adjust our business focus. Increase exposure for vertical categories like tourism, weddings, and fresh produce. At the same time, we need to introduce an e-commerce model. We have to avoid the core business areas of Kuai Pao and Qian Du Group Buy to create a differentiated competitive advantage."

Wang Xin added after a moment of thought.

’Advantage?’

’WoWo Group took this exact path right before it went under!’

Wang Huiwen complained silently, but he didn’t have any better ideas either.

Kuai Pao and Qian Du Group Buy’s tactics seemed artless, relying entirely on price wars and traffic advantages, but often the simplest moves were the most effective.

A marketing strategy that was too flashy would have been easy for Wang Xin to exploit.

This relentless assault of powerful, straightforward punches had sent Meituan reeling, causing it to lose seventy percent of its market. It was on the verge of suffering the same fate as WoWo Group.

Pan-Atlantic Capital, Meituan’s investor, was in a complete panic. They feared their one-hundred-million-US-Dollar investment would be a total loss.

They had never imagined Meituan’s decline could be as swift as an avalanche, and they cursed furiously.

After Wang Huiwen left, Wang Xin stared blankly out the window, lost in thought.

He didn’t understand!

Why did he have to fail nine times after starting nine businesses!

By what right was Chen Yansen always victorious!

Was that fucking fair!

To secure investments, how many people had he begged? How much alcohol had he drunk? How much humiliation had he endured?

What he failed to realize, however, was that since he didn’t treat his low-level employees and delivery drivers like human beings, those under him would naturally not be willing to work themselves to the bone for him.

If there were no other options, Meituan might have had a chance to succeed.

But comparisons are deadly. Lured by Kuai Pao’s high salaries and generous benefits, most people in the industry saw Meituan as nothing more than a stepping stone.

In that moment, the thought of selling Meituan crossed Wang Xin’s mind again. Ah Li was undoubtedly the best candidate.

「Late the next night.」

In a private room on the top floor of the Sky Garden in Xucheng City District.

On a two-meter-diameter mahogany round table laden with exquisite dishes, three bottles of Moutai were already empty. Ma Liyun’s face was beet red. He had tossed his small liquor glass aside and was now using the serving pitcher to go head-to-head with Chen Yansen.

His assistant, Cheng Wei, was watching anxiously from the side. If he tried to stop them, he was afraid he’d get yelled at. But if he didn’t, and Ma Liyun ended up in the hospital from drinking, he’d get yelled at afterward.

After all, Lao Ma was almost fifty. Even with his impressive tolerance for alcohol, he was no match for Chen Yansen.

Cheng Wei stole a glance at Chen Yansen. The man’s face wasn’t flushed, he was perfectly composed, and his eyes were bright and clear. He obviously wasn’t even tipsy.

"Mr. Ma, let’s not overdo it."

Chen Yansen swirled his glass, drained the last of the liquor in one gulp, and spoke with a smile.

’Drinking Lao Ma to death and ending the e-commerce war early would certainly be a good thing,’ he thought, ’but he knew full well that despite all of Ma Liyun’s loud blustering, if they were to actually open two more bottles, the man would find an excuse to slip away.’

’The man was here to talk about cooperation, not to meet his doom!’

’Pretense is a businessman’s basic skill.’

"Cheng Wei, go open another bottle." Ma Liyun’s head was spinning, but he was not the type to admit defeat. Even if he lost the fight, he couldn’t lose face.

"Right away, Mr. Ma," Cheng Wei agreed readily, but his movements were deliberately slow.

"Mr. Ma, don’t forget, you have to visit the Science and Technology Park tomorrow. We can’t let this delay official business."

Chen Yansen waved his hand to stop him, giving Ma Liyun a graceful way out.

"Oh, is that so? In that case, we’ll continue tomorrow. Let’s call it a day," Ma Liyun said, breathing a secret sigh of relief.

He could normally drink two full bottles without so much as stumbling and wasn’t afraid of going to the Northeast to negotiate business. But Chen Yansen had already put away a bottle and a half like it was nothing, and he feared that after another half bottle, he’d be the one getting carried back to his room.

"Alright. I wish Mr. Ma’s Ali Treasure Card great success in advance," Chen Yansen said meaningfully.