Top of the Great Era

Chapter 2095 Exclusivity

Developed countries and regions all over the world basically have a relatively similar environment in terms of capital, users, policies, systems, cultural openness, and so on.

However, there are two countries that are not the same.

One is Japan and the other is South Korea.

South Korea is more special and has stronger xenophobic sentiments. Fortunately, Zhou Buqi has already found an agent to indirectly enter the Korean Internet market through the Korean company he holds.

Japan is relatively easier, and Ziweixing can end directly.

This is very important!

You must know that European and American countries such as the United States, Canada, Germany, France, Sweden, and Finland all advocate diversity. Basically, all Internet companies in the world can participate in it and compete.

Japan is not the same. The local cultural environment is very special. Although it is learning from Europe and the United States, the traditional Confucianism is very strong.

The core hub of the Internet industry in the current Japanese market is Yahoo Japan.This is a Japanese company founded by Masayoshi Son in the early years and borrowed the brand, technology and model of Yahoo.

The influence is very large, and the business is diverse, covering almost all aspects of the Internet industry.

If Zhou Buqi really has the opportunity to get 35% of Yahoo Japan's shares from Yahoo, it will be equivalent to allowing Ziweixing's business in Japan to take root in the local market to the deepest level.

The world's four major markets are the United States, Europe, China, and Japan. At this stage, the market size of Japan is even larger than that of China.Especially the advertising market, second only to the United States.

Other markets are very competitive.

Only the Japanese market can approach monopoly control.

The main profit model of Ziwei Star is advertising.

However, the advertising model has a disadvantage. It is only one aspect of making a good product, and it also needs the approval of the advertiser, so that the advertiser can come and place the advertisement.

Just like Yahoo.

The reason why CEO Carol Bartz was fired a few months ago was because during her time at the helm, the number of advertisers decreased, and no one came to Yahoo to place ads.

Zhou Buqi answered this question, "Several Ziweixing products perform well in the Japanese market, but there is one indicator that is relatively poor, that is, the ratio of traffic to advertising for advertisers."

This is an internal statement of Ziwei Star. Boss Ma didn't quite understand, "What do you mean?"

"It's the degree of attraction to advertisers." Zhou Buqi didn't hide anything, and revealed the secret frankly, "I haven't seen the data for these few months. In the first three quarters, Ziweixing's advertising revenue in Japan was 13.5 billion US dollars. ..."

Boss Ma was stunned, his voice changed a little, and he interrupted abruptly, "How much... How much? 13.5 billion? Is it US dollars or Huaxia currency?"

Zhou Buqi said with a smile: "13.5 billion US dollars, what's the point? The Japanese market is the most profitable market for Ziwei Star at present. This year, the net profit created by this market will reach 6.5-7 million US dollars."

Boss Ma said angrily: "Then what are you doing about Yahoo Japan's shares? It's already taken off!"

Zhou Buqi said: "Don't worry, listen to me. The total scale of Internet advertising in the Japanese market is about 75 billion US dollars. According to the market estimates in the first three quarters, Yahoo Japan can get 30 billion US dollars." The advertising revenue of Ziweixing is only about half of that of Yahoo Japan. However, Ziweixing has many products, such as browsers, mobile assistants, social tools, photo editing software, etc., and the total traffic is more than 5 times that of Yahoo Japan. .But advertising revenue is only half of theirs. Totally disproportionate."

Boss Ma is an expert, so he is not easy to be credulous. "The nature of the product is different, right? Yahoo's portal network is easier to promote. No matter how good the browser is, how can there be any advertisements?"

Zhou Buqi said: "But don't forget, Ziweixing also has YikYak, which is currently the hottest social product in the Japanese market."

Boss Ma said "hmm", "I know, it's a product like Twitter or Weibo."

Zhou Buqi said: "Yes, if it is the domestic or European market, the product is still in the growth stage, so the advertising should be appropriate and not too much. But the Japanese market is quite special. YikYak has entered a mature stage and can be consumed in large quantities. Advertising orders. Calculated based on the ratio of advertising traffic and placement in the United States, YikYak’s advertising revenue in the Japanese market this year should reach 16 billion US dollars, while Yahoo Japan’s only 22 billion US dollars.”

After a pause, Zhou Buqi continued: "Like Yahoo, the biggest crisis for Yahoo now is that they have lost the favor of advertisers. The traffic is still high, but they are abandoned by the advertising market. Advertisers are all running away. Advertisements are placed on Facebook. In fact, at present, the traffic between Yahoo and Facebook is not much different, but Yahoo’s advertising revenue is only a quarter of that of Facebook. This is the premise that Facebook controls the amount of advertising for product experience. Woolen cloth."

Boss Ma understood what he meant, and said in a deep voice, "Ziweixing is not popular with advertisers in Japan?"

Zhou Buqi said with a smile: "It's not just Ziweixing, Google is the same. In Japan's search market, Google's share is about half of Yahoo Japan's, but the advertising fee is only a quarter of Yahoo Japan's. Including Amazon, Beijing Compared with the local Lotte Market, Taobao’s external advertisements are far inferior.”

Boss Ma suddenly realized, and finally understood the main motive behind this kid's game of chess, "The exclusivity of the Japanese market!"

Zhou Buqi said: "Yes, exclusivity. Under the same circumstances, advertisers prefer to advertise on local websites. Even if the advertising positions of Ziweixing, Google, and Amazon seem to be more expensive, advertisers still prefer Willing to buy local advertising space.”

It's like going shopping in a Japanese supermarket.

It is found that for the same product, the price gap between domestic and imported products is very large.

A bottle of local soy sauce may retail for 2000 yen; a bottle of foreign soy sauce may sell for as little as 200 yen.

The quality is actually the same, but consumers just like to buy domestic products, and only foreigners living in Japan will buy high-quality and cheap imported products.

South Korea is similar. The reason Korean beef is so expensive is because locals are snapping up local beef instead of buying low-priced beef imported from foreign countries.

With the development of the domestic economy, the promotion of traditional culture, and the improvement of national self-confidence, a similar situation will inevitably occur.Regardless of the huge contradictions and constant conflicts between China, Japan, and South Korea, the essence of their cultures is actually the same, and they are all Confucianism and square characters that have been passed down for thousands of years.

Boss Ma was very emotional, thinking that this kid is really smart, "So you have to use Yahoo Japan's local brand and appeal."

Zhou Buqi said: "Yes, I told Sun Zhengyi before that I want to promote the merger of Yahoo Japan and Ziweixing's advertising systems to create a large and medium-sized platform... You know that Zhongtai is a model I invented. .”

"Ah."

"I originally wanted to cooperate with the two parties to build an advertising system for large, medium and Taiwan. Yahoo Japan will provide sales and half of the operations, and Ziwei Star will provide technology and the other half of operations."

"Do you think people are stupid?"

Boss Ma couldn't help laughing, he felt that this kid was really whimsical, and if he wanted to fool Sun Zhengyi, he had to use some clever means, which was too straightforward.

If Yahoo Japan and Ziweixing really cooperate to develop an advertising system for large, medium and Taiwan...they must be prioritized, right?No matter in terms of technology, operation, or employees' work enthusiasm and work efficiency, there is no doubt that Ziweixing has the upper hand.

The only advantage of Yahoo Japan is this localized brand.

Attract advertisers through this localized brand.

At that time, this kind of cooperative advertising will be big and medium, Ziweixing will be the face, and Yahoo Japan will be the face... It will be difficult for Yahoo Japan to get the initiative in this business.

However, if Ziweixing really got the 35% shares of Yahoo Japan from Yahoo, it would be different.Ziweixing is the second largest shareholder of Yahoo Japan.

The two sides are a family.

In addition, Softbank is also a minority shareholder of Ziwei Star, and the in-depth strategic cooperation between the two parties will naturally be deepened and strengthened.For the Japanese market, Ziweixing can use the shell of Yahoo Japan to change from an "outsider" to a "local" and get more advertising orders.

Zhou Buqi said: "So, this time I want to cooperate with you in this attack on Yahoo, not Sun Zhengyi. I don't want Sun Zhengyi to take back the 35% of the shares. You take back Ali's shares, I'm going to get a stake in Yahoo Japan. The strategic significance is more important than making money."

"It makes sense, it should be like this." Boss Ma thought deeply, and then cursed with a smile, "What a smart boy! So you are waiting for me here!"

Zhou Buqi went on to say: "In fact, not only the Japanese market, but also the American market has such meaning."

"Yahoo?"

Boss Ma raised his eyebrows, questioning a bit.

The U.S. market is not the same as the Japanese market. Here is a purely capital environment, with no national sentiments. The market only cares about the market, and only cares about high quality and low price.

As long as Ziweixing's products are good and the traffic is high, there will be a steady stream of advertisers, and they don't care whether you are an outsider or your own.This is a country of immigrants. No one can tell whether you are a foreigner or an American without looking at your passport.

Zhou Buqi said: "From the perspective of the market, there is definitely no such strategic significance. But from the perspective of policy and the general environment of Silicon Valley, Yahoo, a well-known and iconic company of the American Internet, will more easily attract people from all walks of life. What resonance does Ziweixing have in the United States? Let me ask you, and you can’t tell. But if Ziweixing owns Yahoo, it will have more symbolic meaning in terms of popularity and branding.”

Boss Ma was silent for a long time, and then slowly said: "You are right, I will try my best to help. However, this matter is too complicated, wait for me to go to the United States, let's meet and talk. It's a mess, once Yang Zhiyuan wins the proxy battle, it will be a big trouble!"

(End of this chapter)