Translator: _Min_ Editor: Caron_
To use imrsive virtual reality in the world of e-comrce was the next step for Future Technology after VR MMORPG.
Imagine being able to shop without leaving ho or going on a shopping spree without moving from the computer… oh no, the person in front of the helt would no longer have to worry if the clothes bought online would fit because you could “take” the clothes out from the shopping cart and directly “put it on” your body to try them yourself!
With the introduction of VR shopping, it ant that the only advantage of physical stores would cease to exist. Physical storefronts compared to e-comrce stores without an actual location lacked the advantage of saving on rent costs. Now that the VR shopping experience was brought to the sa level, it could be foreseen that once it was adopted by the mass market, it would bring disruptive changes to retail and even real estate markets.
Technology with such a bright future was obviously not going to be ignored by the e-comrce giants.
For example, VR shopping, or the concept known as “buy ,” was initiated by Ali at the beginning of 2016 but because of the restrictive nature of technology, Ali’s VR shopping experience had a lackluster effect, far less than promoted.
It was impractical to design an interactive VR experience for every store due to the work required, and it also greatly increased the number of stores that could register at a VR mall.
Also, VR glasses could only bring a limited experience to custors. With just images alone, it offered no difference compared to shopping through a screen. But if they used high tech 3D movent capture technology to replicate the physical dinsions of the products, it would increase the cost. Would custors really purchase VR glasses with a price tag of over 1000 USD just to shop? Perhaps yes, but rich people only accounted for a small portion of sales.
Therefore, buy required a dium that had a high market penetration rate that could also maximize the shopping experience.
The Phantom dium happened to satisfy both conditions.
The high sales set the foundation for a massive user base. Imrsive virtual reality technology would provide a comprehensive experience to users. Because of this, Ali chose to contact Jiang Chen imdiately after the business forum, hoping to partner up in the “VR e-comrce” strategy.
But Jiang Chen didn’t imdiately reply to Ma Yun who called him personally because he still had to discuss this with Xia Shiyu. He wondered if they should partner up or take care of the retail aspect in-house.
Could Future Technology ditch Ali and do e-comrce themselves? After discussion, Jiang Chen and Xia Shiyu both reached a consensus that while it was theoretically possible, there was no practical reason to do so. Future Technology had no experience in the e-comrce market, and it would be a lost cause if they spent a large amount of ti and energy to start in the e-comrce division.
Just like building an aircraft carrier, it wasn’t necessary to build every single screw themselves.
With an absolute advantage in technology, Future Technology only needed to focus on developing the channel while the content could be created by Ali, JD, Amazon, and eBay, who all had a wealth of experience and resources.
As for how the partnership would take place, that was the purpose of Jiang Chen’s visit to Wanghai.
The next morning, Liu Haotian arrived at the mansion as promised.
When he saw Jiang Chen walking out of the mansion glowing, he guessed what happened last night. He only smirked without saying anything and opened the door for Jiang Chen. After Jiang Chen set the destination on the GPS, Liu Haotian took Jiang Chen on his way.
There were a lot of enterprises that invited Jiang Chen to discuss a “VR e-comrce” relationship – both dostic and international players.
Based on the negotiation strategy discussed with Xia Shiyu, Jiang Chen didn’t look for Ali first but rather, he sought out Ali’s international competitor, Amazon.
Amazon first asked Future Technology to make developnt tools and licensing available for virtual reality, and the e-comrce application would be designed by them.
It wasn’t the right ti to make developnt tools available. Based on their proposal, it was equivalent to Amazon getting rid of them. If “VR e-comrce” beca extrely successful, it would have nothing to do with Future Technology.
The two parties couldn’t compromise at all on the fundantal problem and negotiations couldn’t continue, so Jiang Chen stopped trying to negotiate with them and directly went to speak with eBay.
When Amazon realized Future Group wasn’t going to negotiate with them further, they instantly beca anxious.
Since Future Technology was the only company that mastered imrsive virtual reality technology, if Amazon allowed their competitor to create a virtual reality platform first, it would be a detrintal blow to Amazon’s business. Amazon realized this imdiately and changed their strong stance. They signaled their willingness to make concessions on software while requesting another negotiation session.
Therefore, the two-party eting beca a three-party eting.
At the sa ti, Ali, who was excluded, could no longer sit around. They previous thought Jiang Chen would go seek them out, but Future Technology was almost close to reaching an agreent with Amazon and eBay!
Ali couldn’t fall at the hands of their competitors now. Based on the popularity of the Phantom in the international market, it was a great opportunity for Ali to expand its international market through a VR platform!
Boss Ma, who just flew from Shangjin to Wanghai, imdiately sat down with Jiang Chen and invited him for a al at his own place.
Han people had the tradition of discussing business over the dinner table. Since Boss Ma personally invited Jiang Chen for a drink, it gave him all the respect he was due.
Jiang Chen had been waiting for exactly this.
Of course, he wasn’t just waiting for Ma Yun to propose a few toasts over the dinner table nor was he planning to exclude Ali from negotiations entirely. The reason why he didn’t actively seek negotiations with Ali first was just to force Ali to stop sitting around.
Future Technology was close to a deal with eBay and Amazon. As the fourth party with aspirations of being included, Ali had to bring so sincerity to the negotiation table.
Ali didn’t disappoint Jiang Chen. Compared to the foreign companies with stricter terms, they not only made concessions in cooperation, but they even proposed a plan clearly more favorable to Future Technology.
When Amazon and eBay saw this, they knew they had been tricked. Considering how interested Jiang Chen looked, Ali’s representative was relieved.
The exact plan was the following:
Future Technology would design a platform-based software, with Ali to provide the content. Users would purchase items from Future Technology’s virtual reality market with Ali deciding which goods could enter the market. Confirmation of the purchase would be done through the internal browser in the helt which would jump to Taobao’s page, or Taobao could design a more simple purchase and pay page for the virtual reality market.
It was like Future Technology was the market, while Ali and other e-comrce giants were suppliers and store leasers. The forr dictated the location while the latter provided the supplies. The retailers registered under each e-comrce platform were like products on the shelf.
To put it simply, Future Technology only provided the platform, so e-comrce was still e-comrce.
With this plan, Jiang Chen threw his previously prepared plan away. The professionals indeed knew what they were doing, so he didn’t have any reason to reject their plan at all.
While Amazon and eBay were displeased, they couldn’t bring out a better proposal. They could only accept this proposal.
Later, Jiang Chen invited other e-comrce platforms interested in VR into the negotiation. Each party would be given a market share, divide the VR distribution channel, and enhance the partnership agreent.
In a week, eight “VR e-comrce” agreents were signed. Strictly speaking, it was the first deal Jiang Chen signed as a President for the company.
And it was a ga deal worth ten billion!
Reviews
All reviews (0)