Chapter 399: Why Isn’t The Advantage With Us Anymore?

“Work’s almost over. Should we go for seafood or Japanese cuisine today?”

“I’m tired of both seafood and Japanese. Let’s try something new. I heard there’s a new Thai place at Jing’an.”

“Alright, Thai it is then.”

In a skyscraper in Shanghai, with quitting time nearing, three junior white-collar workers began discussing dinner after a day of minimal work.

They were all entry-level employees with modest salaries. After rent, utilities, and commuting costs, not much was left each month.

However, for the past six months, every meal had been lavish, thanks to an abundance of easily spent petty cash.

The reason? The sudden surge of group-buying popularity that started in April this year.

Half-price coupons and additional discounts made even luxurious foods, once out of their reach, suddenly available.

Especially for office workers like them, too exhausted daily to even think of cooking.

The launch of group-buying platforms perfectly met their high demand in this area.

The current group-buying websites primarily operate through coupon sales. Users log on, insert a digital key, purchase coupons via online banking, and receive an order confirmation via SMS for easy in-store use.

These coupons usually have a one-month validity, so many will stock up during promotions.

Piling up coupons from hotpot restaurants, seafood and Japanese cuisine, and movie discounts—as long as they’re used within a month, it’s all good.

This system was pioneered by Suixin Group, but its true originator was Jiang Qin.

Many group-buying sites had their original systems at launch but soon switched to this more stable model after testing.

That’s why, despite Suixin Group’s modest operating skills, they quickly captured the Shanghai market.

But as the market stabilized recently, the discount intensity also decreased; no more discounts on discounts, but still some bargains to be had.

While discussing this, the three white-collar workers opened the Suixin Group’s website and carefully explored the dining section.

This had almost become a pre-home routine; skipping it felt like something was missing from life—a habit formed by spending money.

“What’s today’s discount rate?”

“Only 30% off. Not as good as before.”

“That’s normal. They can’t keep subsidizing us forever. My advice? Stock up on discount coupons now before prices go back up.”

“Hearing that, I sort of regret not stocking up when there were extra discounts in April and May.”

Mid-conversation, one of them suddenly paused, “Wait, hold on, don’t buy yet.”

“What’s up?”

“My phone just updated. Nuomi’s offering 50% off on dining, entertainment, and more, plus additional discounts on Lashou.”

In 2010, mobile entertainment was scarce, so many subscribed to such updates—three bucks a month, the supreme throne-time companion.

Hearing this, the colleague handling purchases quickly switched websites and indeed found the Thai restaurant they mentioned earlier.

“Damn, truly an extra discount!”

“Let’s not buy from Suixin then. Let’s go to Nuomi!”

And just like that, the market and user base that Suixin Group had painstakingly built up followed the discount trail elsewhere.

This highlights the pitfalls of relying solely on subsidies to attract users, leading to endless platform switching whenever there’s a better deal.

That’s why Jiang Qin never really panicked.

In a society where loyalty shifts towards who benefits you most, what good does it do to lead initially if you can’t sustain it till the end?

But because Lashou and Nuomi employed clever tactics and significant promotional gravitas, even Ye Ziqing received immediate updates, filling her with astonishment.

Nuomi?

How could this be…

The question barely formed in Ye Ziqing’s mind before she seemed to grasp something and quickly called Zhou Zhenhao, who managed the Shanghai market, also summoning secretary Cui Yiting.

When Nuomi and Lashou appeared in Shanghai simultaneously, employing aggressive discount strategies to poach Suixin Group’s customers, Zhou Zhenhao and Cui Yiting were left speechless.

“No wonder…”

Ye Ziqing was puzzled, “No wonder what?”

After a long silence, Zhou Zhenhao’s voice came through, “Ever since I began operations here, Nuomi and Lashou suddenly stopped encroaching on our turf. There were even brawls a few days ago, but now it’s all stopped.”

Cui Yiting took a deep breath, “They must have teamed up.”

“It was us who gave Nuomi the merchant resources. How could they do this when they’re meant to be based in Shanghai University Town?”

An entire team poached yet in adversity, they penetrated the Kyoto market and secured tens of millions in second-round financing. The Suixin team was indeed drifting high.

Zhou Zhenhao had initially disagreed with handing over resources to Nuomi, swayed only by a two-to-one vote from Ye Ziqing and Cui Yiting.

Now that Suixin had recovered, Zhou was adamant about reclaiming the Shanghai market.

This time, Cui Yiting was resolute about standing with Zhou.

Why?

Because she was responsible for losing the industry and had personally built up Xu Wanshi, the influential executive who was poached.

As one of three decision-makers in the company, Xu’s betrayal put her under immense pressure, amid murmurs about her supposed lack of capability.

Thus, regaining the lost market was crucial for her.

Meanwhile, Ye Ziqing, known for her impulsive nature and dislike of long-term strategies, raised no objections to the direct approach to reclaiming Shanghai.

Zhou Zhenhao wasn’t foolish.

They tailored their strategy to target the 60% market share owned by Lashou, as, without Lashou’s betrayal, Shanghai would have already been Suixin’s.

But entering a city isn’t simple; the greatest challenge is finding the right breakthrough to make an immediate impact.

Thus, collaborating merchants from prior partnerships were their best option.

But nobody expected such a fierce reaction from Nuomi—within just eight days, a series of activities targeting the Shanghai market began.

After a long pause, Cui Yiting suggested, “Zhenhao, maybe we should pull back?”

“No, we can’t go back now,” Ye Ziqing shook her head.

“…”

Hearing her, Cui Yiting and Zhou Zhenhao realized the implications.

What would retreating from the Shanghai market entail?

Their entire layout would go to waste. Not only would they gain nothing, but they’d also have infuriated two formidable rivals.

Business folk aren’t naive. Zhou didn’t believe Lashou and Nuomi would just give up on Shanghai if he retreated.

So now they were trapped. Neither advancing nor retreating offered a promising outcome.

But why?

Just days ago we were clearly ahead, and we’d even secured a second round of funding. How did one step land us in such a quagmire?

Ye Ziqing, Zhou Zhenhao, and Cui Yiting all pondered this.

Thinking over and over, they were breaking a sweat…

Their plight was due to overlooking three crucial points.

It isn’t you who decides the next move—it’s capital pushing everyone along. After burning money for half a year without outcomes, who could secure more funding? Thus, both Nuomi and Lashou needed a significant victory now to boost their valuations.

Another key point: why did Nuomi initially give up on Shanghai to head to Shanghai?

Because they too wanted to establish a stronghold. After acquiring Suixin’s merchant resources, Shanghai was their prime choice. But now, not only had Lashou also joined, but Suixin itself was playing dirty. How could they not be annoyed?

The third key that Nuomi hadn’t initially grasped was only figured out after an afternoon-long meeting.

On August 28th, when the Suixin Group’s market representative started discussing collaborations with former merchants, Suixin Group’s intentions were exposed.

Learning that this old partner was also stepping into Shanghai, Shen Bo, the boss of Nuomi, immediately called a high-level meeting.

“I think we can continue to collaborate with Suixin Group and directly drive Lashou out of the Shanghai market,” suggested Wang Jinfu, the business manager.

“But don’t forget, Suixin Group had previously dominated the Shanghai market. They claimed they gave us all the merchant resources, but who knows if it was really all of them? At least, the merchants they signed today weren’t in the data we received,” objected Zhao Qian, the marketing manager.

Zhao Qian was firmly against the idea, not wanting to face an unpredictable enemy.

Liang Huan, the marketing manager, accustomed to acting on personal feelings, blurted out, “Actually, what Suixin Group did was not very righteous. We just got here in Shanghai helping them restrain Lashou, and before we could stabilize, they came back! It might be better to collaborate with Lashou and let Suixin Group know that Nuomi isn’t so easily manipulated!”

After hearing everyone’s opinions, Shen Bo paused before speaking, “You all make good points, but now I want you to consider something.”

“Boss, what do you want us to consider?” asked an employee.

Shen Bo tapped the table, “Who do you think is easier to deal with between Suixin Group and Lashou? And who would being more beneficial to deal with?”

This was the initial question Zhou Zhenhao, Ye Ziqing, and Cui Yiting had failed to grasp.

Between Suixin Group and Lashou, it was clear that Suixin was easier to handle, making the alliance with Lashou and consuming Suixin the most cost-effective choice.

So, who benefits more by dealing with whom?

Even if aligned with Suixin against Lashou, Lashou could just abandon the market and retreat to Kyoto, leaving the same two-sided situation in Shanghai.

But aligning with Lashou and turning the tables on Shanghai could potentially give them control of half of Shanghai—at least that much!

After Shen Bo and the senior management concluded their meeting, it did not take three hours before Lashou’s call came through, sharing a coincidentally similar line of thought.