The contradiction between Taiwan Province Jiebo and mainland Jierui finally broke out. Anyone who knows more about Jeb Mainland Channel knows that this kind of confrontation will appear sooner or later, but I didn't expect it at this point.
At the two ends of the match, on the one hand, Jebel, one of the top ten motherboard foundries in Taiwan Province Province (Jebel is a professional OEM/ODM service provider with more than 20 years of motherboard manufacturing experience, and well-known motherboard brands among customers such as Shuangmin, Mei Jie, Onda, graphics card brands such as Spartak, etc.), tried to win the mainland "Jabel" brand and its sales channels in this game; On the other hand, Jierui, the authorized agent of Taiwan Province Jabbo in Chinese mainland, is the actual owner of Chinese mainland Jabbo brand. After Jiebo in Taiwan Province Province exposed the real intention of vicious takeover by means of out of stock, Shanghai Jierui took the lead in announcing the termination of cooperation with Jiebo in Taiwan Province Province. With the advantages of local enterprises in Chinese mainland, Shanghai Jierui seems to be ready to make Jiebo pay a realistic price even if it loses its brand-an account receivable with a total amount of more than 7 million US dollars!
Outsiders may never know the intensity of channel competition in the mainland IT industry. In IT manufacturing industry, which is famous for reducing costs, the proportion of channel construction cost to cost is amazing. In this contest 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 who is the undertaker of channel construction losses.
1995 Taiwan Province jiebo and mainland jierui company have established cooperative relations between suppliers in Taiwan Province province and general agents in mainland China. 1999, Shanghai Jerry Company registered Jaber's brand in mainland China and began to sell it. In the cooperation since then, the mainland Jierui company has gradually grown, and the brand of "Jiebo" has begun to be recognized in the mainland.
In 2000, Jierui Company of China launched the brand products of "Jiebo" with "Elf Series Technology", which pushed the brand of "Jiebo" to DIY market and laid the future development direction of "Jiebo" series products in Chinese mainland.
In 2002, mainland Jierui Company began to increase the new product line of "Jiebo" brand, including graphics cards, quasi-systems and even speakers. Because some products are not provided by Taiwan Province Jiebo, the cooperation between the two companies began to crack.
At the end of 2006, the "Hummer Hummer" series motherboards launched by Chinese mainland Jerry Company became an instant hit in Chinese mainland, and its market awareness and sales volume were among the best among similar products.
According to a media survey, Hummer series motherboards are the products with the highest roll-call rate in the mainland motherboard market since 2006, and also occupy an important position in the turnover and profit contribution of Jiebo in Taiwan Province Province. However, it is precisely because of the rapid growth of the sales of Hummer series motherboards in Chinese mainland that Jabbo in Taiwan Province is not only surprised, but also wary.
In the same year, Jebel of Taiwan Province Province also began to launch "Hummer" series motherboards overseas. However, because the product positioning and sales strategy are different from those in Chinese mainland, the contradiction between the two companies began to deepen.
In 2007, China UHF Forum Welding Wire Club (namely "Hummer Hummer" motherboard user discussion group) revealed that the negotiation between China Jierui Company and Taiwan Province Jiebo failed during the suspension period of more than one month. The former angrily sought a new OEM partner in order to deprive Taiwan Province Jiebo of the manufacturing right of Hummer motherboard.
Soon after, Chinese mainland's major IT news media released news one after another, saying that it was basically a foregone conclusion that Jiebo broke up with mainland Jierui.
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"Hummer Hummer" series motherboards have made competitors in the same industry particularly afraid since their birth. When the news broke out in the heyday of Hummer, other major motherboard brands 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 Hummer alone, this situation will be an excellent godsend for any OEM.
Market or brand?
In the final analysis, the dispute between them based on trademarks and channels is a dispute of interests, and Jierui's rapid development in mainland China in recent years has made Jiebo unable to give up.
According to anecdotal reports, eight years ago, when Taiwan Province Jiebo signed a general agent agreement with mainland Jierui, mainland Jierui was asked by Taiwan Province Jiebo not to sell OEM products from other factories without Jiebo's consent. Since then, Jierui Company began to "default" to launch graphics cards, barebones, speakers and other products in 2002. These products are brand names of "Jiebo" in Chinese mainland. For Zappo in Taiwan Province Province, this is intolerable. The registered person of the mainland "Jiebao" brand is Shanghai Jierui Company, so that Taiwan Province Jiebao faces a very dilemma: if it wants the mainland market, it can't keep the mainland brand, and if it wants the mainland brand, it will lose the benign operation of the current mainland market.
If you choose the main market, it means that at present, Jierui in mainland China will operate the brand "Jiebo" independently. However, with the current development speed of Shanghai Jierui, it may soon be possible to completely dilute the relationship between "Jiebo" in Taiwan Province Province and "Jiebo" in mainland China. At that time, if the two sides have a slight disagreement on cooperation, the mainland "Jabbo" can completely start a new stove, re-select the OEM supplier 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 big brand, it will inevitably lead to the separation from Shanghai Jierui. Let's not talk about the operability and market recognition of Taiwan Province Jiebo's brand reconstruction in mainland China. At present, if we lose our long-term partner, Shanghai Jierui, the development period and running-in period of the new partner are enough to drag Taiwan Province Jiebo to death. At present, about 30% of Jebo's performance in Taiwan Province Province is contributed by the mainland, and all of them are high-end 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 Chinese mainland, Jebo is only an ODM provider, providing technology and products for mainland Jebo brands, with little support in market positioning, channel cooperation and management, but earning the most lucrative links in the whole industrial chain.
In fact, Jerry's control of his subordinate channels in mainland China is indeed quite successful. The most important and core team in the IT hardware product industry is the sales team, which directly determines the marketing work of the enterprise. The defection of marketing team is a fatal blow to any enterprise. Quote the original words of mainland channel providers in Sina News: "As long as the team of Shanghai Jierui is still there, Jiebo motherboard can definitely continue to maintain the current sales trend, because the success of Hummer series has given me enough confidence in Shanghai Jierui." The two work best together. The "wolf ambition" of Shanghai Jerry's independent development has begun to appear and the conditions are ripe.
Therefore, once Taiwan Province Jiebo and Shanghai Jerry break up, the management team, sales staff and dealers of mainland Jiebo brand will inevitably follow Jerry's company. Under the strong escort of the team, sales and dealers, Shanghai Jierui can be said to have completely controlled the market and sales of the "Jabbo" brand in the Mainland, not to mention that the "Jabbo" brand will not change hands, even if the new brand is established, this team that has been built for many years will make a comeback in a short time. As a result, even if Taiwan Province Jiebo recovers the mainland ownership of "Jiebo" brand, its subsequent profitability has to be questioned. Shanghai Jierui holds the support of famous brands, employees, channels and customers such as "Jabbo" and "Hummer Hummer", which is the trump card for Jierui to break away from Jabbo.
On the other hand, if Jebel really wants to get her hands on the mainland channel of Shanghai Jierui, Shanghai Jierui can ask Taiwan Province Jiebo for huge license fees for famous trademarks such as Jebel and Hummer Hummer, or simply refuse Taiwan Province Jiebo to use these trademarks, which is even more intense for Taiwan Province Jiebo.
In addition, according to the information I have, Jierui has the most important card-it holds more than 7 million dollars of accounts receivable from Taiwan Province Jiebo. To be sure, before the current incident comes to the bottom, Jebo in Taiwan Province Province won't get this huge sum of money. Even if a lawsuit is filed, when Jerry asks Taiwan Province Jiebo to compensate for the loss of brand and channel construction, he can also seize the relevant funds by applying for asset preservation. If the lawsuit drags on for several years, the accounts receivable of $7 million can't be recovered in time. What does it mean for Taiwan Province Jiebo, a listed company with a capital of less than $30 million? The conclusion is self-evident.
With the brand in hand, the strong support of sales channels and the card in hand, can Shanghai Jerry really win a big victory? Not exactly.
Possibility of game between two sides
The game between Taiwan Province Jiebo and mainland Jierui is not only a contest of strength, but also a contest of psychology. This is a typical contradiction between domestic-funded enterprises and Taiwan-funded enterprises with different cultures during the period of rapid economic growth in Chinese mainland. In the foreseeable future, the confrontation between China Mainland Jierui and Taiwan Province Jiebo may be carried out under two different language systems and behaviors. On the one hand, it relies on the step-by-step pressure of the law, on the other hand, it relies on the irreplaceable channel team and the potential great turmoil.
In this duel, different roles hope to see different results, and Taiwan Province Jiebo Company hopes to see its familiar market rules maintained; Jierui's mainland dealers and employees hope to see local brands and entrepreneurs in China win this struggle; Partners of other Taiwan-funded brands also hope to see China's contractual spirit and market rules respected; Government officials and economists who care about local brands hope to see the way out for domestic enterprises in the brand war. In such a complicated 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 desired results.
The struggle between Jiebo in Taiwan Province Province and Jierui in Shanghai is not the first case of the dispute over the product channel and brand of the main board. The recent collapse of Shuoteke is far from the silent disappearance of Pan Ying brands in the mainland market, and each one is thought-provoking. In this contest between Taiwan Province Jebo and Shanghai Jerry, Taiwan Province Jebo is impossible to win, because the most fundamental lifeline of the enterprise is completely controlled by Shanghai Jerry; It's hard to say that Jerry in Shanghai will win a total victory. After all, there is a breach of contract, and there must be 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 end, which may eventually lead to both sides losing. With the focus of the media and the public and the disclosure of more details, the brand images of Jaguar, Jierui and even Hummer are being damaged to varying degrees. Although Taiwan Province Jiebo seems as if nothing 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 react.