When the boxes of 1,000 Lesheng flagship kits—stripped of binding posts, junction boxes, damping boards, and assembly labels—were stacked in Ge Lü Shi Company's warehouse, the 1.1 million yuan deal marked an irrevocable mistake for Lesheng Company.
Ge Lü Shi Company spent the next nine months quietly, leading up to the opening of the biennial Beijing International Audio Exhibition on May 15, 1998. During these nine months, Ye Xiaoming, Liu Bing, and Xiao Yang assembled Ge Lü Shi speakers in their audio store during off-peak hours, assembling two to three pairs on slow days and five to six pairs on busier days. Accumulating over time, they completed all 500 pairs of speakers within six months, which then sat quietly in the warehouse. During this period, only Lesheng Company purchased six pairs of speakers at a wholesale price of 7,600 yuan per pair for promoting their flagship models. No regular customer purchases occurred.
Clearly, Ding Yuanying was banking on this international audio exhibition. However, Ye Xiaoming, Liu Bing, and Feng Shijie were skeptical that a single exhibition could change the fate of Ge Lü Shi speakers, believing the unrealistic price of 11,600 yuan was killing their sales, especially when two pairs of Lesheng flagships retailed for less than 8,000 yuan combined.
Today was May 14, the final day for exhibitors to set up their displays.
This year's Beijing International Audio Exhibition was held at the five-star Biyue Mountain Resort Hotel. The scale, luxury, and cost of participation far exceeded previous exhibitions. The exhibition halls spanned three, four, and five floors, accessible by elevators and staircases. Major domestic and international brands were concentrated in the large exhibition hall on the third floor, while medium and small exhibition rooms on the fourth and fifth floors were mostly occupied by brand agents and manufacturers, along with a few creative audio enthusiasts looking for business opportunities.
Ge Lü Shi Company's exhibition room was on the fourth floor. As a small company, renting a 22-square-meter room was already a luxury compared to those renting only 9 square meters. The setup was conventional: one speaker with a side panel cut away to reveal the internal materials, craftsmanship, and design philosophy, while a complete speaker stood beside it. The audio source, power supply, and amplifiers used to drive the Ge Lü Shi speakers were consistently from Slek Company: two Slek power supplies, two Selinda Signature Edition CD players, two Slek preamplifiers, and four Slek power amplifiers. On the other side of the Ge Lü Shi speakers was Ding Yuanying's set of European and American branded audio equipment worth over 400,000 yuan.
Above the Alna split CD player was a sign that read:
"Perhaps you've heard of the prices of Alna and KTA47. The audio configuration of Ge Lü Shi speakers is, of course, not as good as the combination of Alna and KTA47, with at least a 2% difference in sound quality. But the price difference is 2,150%. If you pursue perfection at the cost of an extra 430,000 yuan, I'd rather tolerate a 2% flaw and use the 430,000 yuan to buy a house."
With only one model of dual-component speakers on display, Ge Lü Shi Company's exhibit would seem foolish or insane to any expert. Yet, since they were participating, Ye Xiaoming meticulously arranged their sole product, highlighting its uniqueness.
Standing at the door, Ye Xiaoming reviewed the setup one last time and said, "This will do."
Liu Bing, placing disposable cups next to the water dispenser, remarked casually, "With just one pair of speakers, there's not much else we can do. These speakers are only good for boosting Lesheng's flagships."
Ye Xiaoming shook his head in confusion and frustration, muttering to himself, "Over 200,000 yuan, I really can't see the point of participating in such a grand exhibition. What significance does it have for us?"
Liu Bing looked at the exhibitor badge hanging around his neck and said, "If there's any significance, at least we've experienced this big scene. We used to just visit these audio exhibitions; now we're participating. We're part of it."
Ye Xiaoming and Liu Bing then began testing the two audio systems, playing a test CD.
While they were testing, Ouyang Xue and Feng Shijie returned, each carrying a box. Ouyang Xue's box was lighter, containing 50 commemorative CDs for the exhibition, while Feng Shijie's box was heavier, holding 50 copies of the promotional commemorative catalog. These items were included in the exhibition fee and distributed by the organizing committee based on the exhibition fee ratio.
Seeing Ouyang Xue carrying a box, Ye Xiaoming quickly took it from her and placed it in the empty space in front of the audio equipment.
Liu Bing lowered the volume.
Feng Shijie also set his box down, looked around the room, and said, "It's okay, just a bit sparse."
Ye Xiaoming asked Ouyang Xue, "Does this look good to you?"
Ouyang Xue smiled and said, "I don't know about this stuff, so it's fine to me. I shouldn't even be here; I'm just a decoration."
Ye Xiaoming said, "Such a big event, how could the chairman not attend?"
Feng Shijie said, "Everything's set up. Let's call Brother Ding and inform him."
Ye Xiaoming said, "Alright, I'll call now." He took out his phone and stepped outside to make the call.
Liu Bing and Feng Shijie continued testing the audio, adjusting one system before moving on to the other, while Ouyang Xue watched.
After a while, Ye Xiaoming returned and gestured for Liu Bing to turn off the audio. He said, "Brother Ding has something to say. He wants us all to go back to the ancient city for a meeting right now. Both cars need to go back. I've already notified Xiao Yang to close the store and come here to cover."
Everyone was stunned, their eyes clearly asking: What's going on?
Liu Bing, puzzled, said, "Brother Ding, tomorrow is the opening day of the exhibition. Can't he just explain over the phone? Why make us drive 700-800 kilometers back and forth? It's exhausting."
Ye Xiaoming said, "When he says meeting, we meet. Don't question it."
Ouyang Xue took three commemorative CDs and three catalogs, put them in a plastic bag, and said, "If Brother Ding wants a meeting, we'll go. I'll go prepare. Let me know when Xiao Yang arrives. I'll wait for you downstairs. I'll keep one set of commemoratives for myself and give one to Xiaodan and Brother Ding each."
Liu Bing said, "Alright, I'll prepare the car and refuel."
Ouyang Xue and Liu Bing left one after the other.
Feng Shijie checked the time and said, "It's 4 o'clock now. By the time we reach the ancient city, it'll be dark, and we'll have to rush back overnight. Something must be up. If it were ordinary, Brother Ding could have just told us over the phone. Why do all four of us need to go in two cars?"
Ye Xiaoming pondered for a moment and said, "It must be something he thinks we wouldn't comply with over the phone, so it's likely a significant conflict. Driving both cars back—could it be to bring people back? What needs more manpower? Only one thing: selling all the speakers during the exhibition."
Feng Shijie blurted out, "A massive price drop!"
Ye Xiaoming thought and said, "Yes, but to what extent would make him sure we'd oppose it? Our speaker cost is 3,290 yuan. He wouldn't sell at a loss, so what does it mean… Oh my god… I get it now… It all makes sense now… That's what he was aiming for!"
Feng Shijie asked, "Aiming for what?"
Ye Xiaoming said, "The market knows Ge Lü Shi speakers use two sets of Lesheng flagship kits. If he prices them the same or lower than the Lesheng flagship, what happens?"
Feng Shijie said, "It would kill the Lesheng flagship. Oh… I see! But… Can we afford to offend Lesheng? If they get angry, can we still operate in this industry?"
Ye Xiaoming said in a trembling voice, "It's brutal, and very sneaky, but he picked the wrong fight."