The conflict between Taiwan Province Jiebo and mainland Jierui finally broke out. Anyone who knows more about the mainland channel of Jiebo knows that this confrontation will appear sooner or later, but I didn't expect it to be at this juncture.
At both ends of the match, on one side is Jabbo, one of the top ten motherboard foundries in Taiwan Province (Jabbo is a professional OEM/ODM service provider with more than 2 years of motherboard manufacturing experience, and well-known motherboard brands among customers such as Shuangmin, Mei Jie and Onda, and graphics card brands such as Spartak, etc.), trying to win the mainland "Jabbo" brand and its sales channels in this game; On the other side is Jierui, the authorized agent of Taiwan Province Jiebo in mainland China, and the actual owner of "Jiebo" brand in mainland China. After Taiwan Province Jiebo revealed the real intention of vicious acquisition through out-of-stock and other means, Shanghai Jierui first announced the termination of cooperation with Taiwan Province Jiebo. With the advantages of local enterprises in mainland China, Shanghai Jierui seems to be ready to make Taiwan Province Jiebo pay a realistic price even if it loses its brand-an account receivable with a total amount of more than 7 million dollars!
Outsiders may never know the intensity of channel competition in the IT industry in mainland China. In the IT manufacturing industry, which is famous for its cost reduction, the channel construction cost accounts for an amazing proportion of the cost. In this battle between Taiwan Province Jiebo and Shanghai Jierui, there are actually only two points of confrontation between the two sides: who is the owner of the mainland "Jiebo" brand and the undertaker of channel construction losses.
in p>1995, Taiwan Province jiebo and mainland jierui company established a cooperative relationship between Taiwan Province suppliers and mainland general agents. in 1999, Shanghai jierui company registered the brand of "jiebo" in mainland China and began to sell it. In the cooperation since then, the mainland Jierui Company has gradually grown, and the "Jiebo" brand has begun to be recognized in the mainland.
In p>2, Jierui Company of Mainland China launched the brand product of "Jiebo" with "Elf Series Technology", which pushed the brand of "Jiebo" to DIY market and laid the development direction of "Jiebo" series products in mainland China in the future.
In p>22, Jierui Mainland Company began to add new product lines of "Jiebo" brand, including graphics cards, quasi-systems and even speakers. As some of the products are not OEM provided by Taiwan Province Jiebo, the cooperation between the two companies began to crack.
at the end of p>26, the "Hummer Hummer" series motherboards launched by Jierui Company in mainland China became an instant hit, and its market recognition and sales volume ranked first among similar products.
according to some media surveys, "Hummer Hummer" series motherboards are the products with the highest roll-call rate in the mainland motherboard market since 26, and they also occupy an important position in Taiwan Province Jabbo's turnover and profit contribution. However, it is precisely because of the rapid sales of "Hummer Hummer" series motherboards in mainland China that Taiwan Province Jabbo is not only surprised but also wary.
in the same year, Taiwan Province jiebo also began to launch Hummer series motherboards overseas, but the contradiction between the two companies began to deepen because the product positioning and sales strategy were different from those of the mainland, which was opposed by the mainland Jierui company.
In p>27, it was revealed in the Welding Wire Club (the "Hummer Hummer" motherboard user discussion group) of China's overclocking network forum that the negotiation between China Jierui Company and Taiwan Province Jiebo failed during the one-month suspension period, and the former angrily sought a new OEM partner, with the intention of depriving Taiwan Province Jiebo of the manufacturing right of Hummer Hummer motherboard.
Shortly afterwards, major IT news media in mainland China released news one after another, saying that the breakup between Taiwan Province Jiebo and mainland Jierui had basically become a foregone conclusion.
Sina. com.cn/h/27-6-28/16551588511.shtml
tech.sina.com.cn/h/27-6-29/1357159591.shtml. When this news broke out in the heyday of Hummer, other major motherboard brands all took a wait-and-see attitude of gloating. At the same time, some manufacturers with OEM/ODM capabilities have begun to contact Jierui privately. If they can eat the fat of Hummer alone, this situation is an excellent godsend for any OEM.
Want a market or a brand
In the final analysis, the dispute between the two based on trademarks and channels is a dispute of interests, and the depth and breadth of the channels developed rapidly in mainland Jierui in recent years make Jiebo unable to give up.
According to anecdotal reports, when Taiwan Province Jiebo signed a general agency agreement with mainland Jierui eight years ago, mainland Jierui was asked by Taiwan Province Jiebo not to sell OEM products from other factories without Jiebo's consent. Since then, Jierui Company has "defaulted" to launch graphics cards, quasi-systems, speakers and other products since 22, and these products are all under the brand name of "Jiebo" in mainland China. For Taiwan Province Zappo, this is intolerable. However, the registered person of the mainland "Jabbo" brand is Shanghai Jierui Company, so that Taiwan Province Jabbo is faced with a very dilemma: if it wants the mainland market, it will not be able to keep the mainland brand, and if it wants the mainland brand, it will lose the current benign operation of the mainland market.
If we choose the main market, it means that we should let mainland Jierui operate the brand of "Jiebo" independently at present. However, at the current development speed of Shanghai Jierui, we may be able to completely dilute the relationship between Taiwan Province Jiebo and mainland Jiebo in the near future. At that time, if there is a slight disagreement between the two sides in cooperation, the mainland "Jabbo" can completely start a new stove, re-select OEM suppliers and kick Taiwan Province Jabbo out. Therefore, "protecting the market" can be regarded as a way to quench thirst by drinking poison.
However, if you choose a major brand, it will inevitably lead to the separation from Shanghai Jierui. Let's not discuss the operability and market recognition of Taiwan Province Jiebo's brand re-creation in the mainland. Just for the moment, if we lose Shanghai Jierui, a partner who has cooperated for many years, the development period and running-in period of the new partner will be enough to drag Taiwan Province Jiebo to death. At present, about 3% of Taiwan Province Jiebo's performance is contributed by the mainland, and all of them are high-end and profitable products. After the separation from Shanghai Jierui, the inventory and cash flow problems will cause the enterprise to fake death in a short time.
from the perspective of Shanghai jierui company, mainland jiebo seems to have completely grasped the situation. For a long time, in the eyes of dealers at all levels in mainland China, Taiwan Province Jiebo is only an ODM provider, providing technology and products for the mainland Jiebo brand, with little support in market orientation, channel cooperation and management, but earning the most lucrative profit link in the whole industrial chain.
In fact, mainland Jierui's control over its subordinate channels is quite successful. The most important and core team in the IT hardware product industry is the sales force, which directly determines the marketing work of enterprises. The defection of the marketing team is a fatal blow to any enterprise. Quote the original words of the mainland channel distributor in the above Sina News: "As long as the team of Shanghai Jierui is still there, Jiebo motherboard can definitely continue to maintain its current sales situation, because the success of Hummer series has given me enough confidence in Shanghai Jierui." Both together do best of all. The "wolf ambition" of Shanghai Jierui's independent development has begun to appear, and the conditions have matured.
Therefore, once Taiwan Province Jiebo and Shanghai Jierui break up, the management team, sales staff and distributors of mainland Jiebo brand will inevitably follow Jierui Company. With the strong escort of the team, sales and dealers, Shanghai Jierui can be said to have completely controlled the market and sales of the "Jiebo" brand in the mainland, not to mention that the "Jiebo" brand will not change hands, even if a new brand is established, this team built for many years will make a comeback in a short time. As a result, even if Taiwan Province Jiebo recovered the mainland ownership of the brand "Jiebo", its subsequent profit level would have to be questioned. Shanghai Jierui holds the support of famous brands such as "Jiebo" and "Hummer Hummer", employees, channels and customers, which is the trump card for Jierui to break with Jiebo.
On the other hand, if Jabbo really wants to get its hands on the mainland channel of Shanghai Jierui, Shanghai Jierui can ask Taiwan Province Jabbo for huge license fees for famous trademarks such as "Jabbo" and "Hummer Hummer", or simply forbid Taiwan Province Jabbo to use these trademarks, which is even more drastic for Taiwan Province Jabbo.
In addition, according to the information I have, Shanghai Jierui still has the most important card-it holds the accounts receivable of Taiwan Province Jiebo of more than 7 million US dollars, and it is certain that Taiwan Province Jiebo will not get this huge sum of money before the current incident comes to light. Even if a lawsuit is initiated, when Shanghai Jierui asks Taiwan Province Jiebo to compensate for the loss of brand and channel construction, it can seize the relevant funds by applying for asset preservation. If the lawsuit drags on for several years, what does it mean for Taiwan Province Jiebo, a listed company with a capital of less than $3 million, that the accounts receivable of $7 million cannot be collected in time? The conclusion is self-evident.
With the brand in hand, the strong support of sales channels and a card in hand, can Shanghai Jierui really win a total victory? Not really.
Possibility of the game between the two sides
The game between Taiwan Province Jetbo and mainland Jetsharp is not only about strength, but also about psychology. This is a typical contradiction between domestic-funded enterprises and Taiwan-funded enterprises with different cultures in the period of rapid economic growth in Chinese mainland. In the foreseeable future, the confrontation between Jierui in mainland China and Jiebo in Taiwan Province may be carried out in two different language systems and behaviors. On the one hand, it relies on the law's step by step pressure, on the other hand, it relies on the irreplaceable channel team and the potential huge turmoil without compromise.
In this duel, different roles want to see different results, and Taiwan Province Jiebo Company wants to see their familiar market rules maintained; Mainland dealers and employees of Jierui want to see the local brands and entrepreneurs in China win the struggle; The partners of other Taiwan-funded brands also hope to see that the spirit of China contract and market rules are respected; Government officials and economists who care about local brands hope to see the way out for domestic enterprises in the brand battle. In such a complex background, if the two sides do not seek compromise, the thorough behavior of either side may lead to this storm becoming a game without winners. At that time, I am afraid that all parties will not get the results they want to see.
The struggle between Taiwan Province Jiebo and Shanghai Jierui is not the first example of the battle for channels and brands of main board products. Recently, Shuoteke collapsed, far from the silent disappearance of Panying brand in the mainland market, and each of them was thought-provoking. In this battle between Taiwan Province Jiebo and Shanghai Jierui, it is impossible for Taiwan Province Jiebo to win, because the most fundamental lifeline of the enterprise is completely controlled by Shanghai Jierui; It is hard to say that Shanghai Jierui will win a total victory. After all, there is a breach of contract and there is definitely a price to pay.
At present, although the two sides have just started a war of words, it can be expected that there will be no winner in the ending, which may eventually lead to mutual loss. With the focus of the media and the public, with the disclosure of more details, the brand images of Jabbo, Jierui and even Hummer are being damaged to varying degrees. Although Taiwan Province Jiebo seems as if nothing has happened, it seems that the current suspension of goods has no obvious impact on the normal operation of the company, but I believe that the sensitive securities market will inevitably respond to it.