Chapter 87: This is the Age of Group Buying

The next day, when friends and colleagues met, the first question was not "What TV drama did you watch last night?" or "Where did you go to play last night?" but "Did you buy Lee Yunjae's album online last night?"

It seemed that overnight, Lee Yunjae had become a household name, a superstar. Although the current Lee Yunjae was still far from being a superstar, in terms of recognition, his name was everywhere on the internet these past few days, more superstar than any actual superstar.

After just one night, the pre-order volume of Lee Yunjae's new album on the LOEN online store had already exceeded 78,000 copies. This was just the result of one night. The order volume in the first half of the night was 53,000, and in the second half, it was 25,000.

This was a terrifying number. By noon, it was expected to reach 133,000 copies, recouping the costs. Bae Song-in made a decisive move, calling the record company again to increase the order by 200,000 copies. He had taken Lee Yunjae's advice and, seeing the terrifying order volume after waking up, decided to make a fortune.

While LOEN was making a fortune, other entertainment companies felt as if they had swallowed a fly. The once nearly defunct LOEN had undergone such a dramatic transformation, causing all the onlookers who had been waiting for LOEN to fail to drop their glasses in shock.

Some entertainment companies, seeing how well LOEN's online album sales were doing, began to stir with envy but did not take action. If they failed, it would not only be a loss of funds but also offend the retailers.

Thus, the bosses of second- and third-tier entertainment companies turned their attention to the five major companies: S.M., JYP, YG, CCM, and DSP, to see if they would follow LOEN's lead and open online stores. These were the big sharks in the pond, while they were just a few plump little shrimps.

In fact, Lee Soo-man hadn't slept well the previous night. The next day, he sat at his desk with dark circles under his eyes, drinking invigorating tea and staring intently at the computer screen.

Seeing the order volume on MelOn, Lee Soo-man couldn't help but feel a headache. The order volume had been 78,000 last night, and by 9:00 AM, it had already exceeded 90,000. The growth rate was too exaggerated. He couldn't help but groan in envy and resentment.

However, no matter how much he envied and resented it, he didn't dare to follow LOEN's lead. In his view, the main sales channel was still through retailers, and online shopping was at most a "side path." Could it last? Bae Song-in's method of selling was likely to provoke a boycott by all retailers. Or had he already prepared for a long-term online store and a counter-boycott of retailers?

Lee Soo-man didn't dare to speculate wildly about Bae Song-in's thoughts. Both ideas were too bold and risky. In early 2008, when online stores were not yet popular, only a few large online shopping sites had a complete management system to ensure the operation of the entire online store. Could Bae Song-in, who was in the music industry, manage an online store? Lee Soo-man couldn't help but ask himself. Although he could hire experienced people to manage it, it would take time to figure it out.

However, Lee Soo-man had overlooked one point, a blind spot caused by his preconceived notions. Although LOEN had no experience with online stores, compared to large online shopping sites, LOEN's online store was more like a small stall compared to a large supermarket, with no real comparison.

LOEN's online store was at most an amateur level, and anyone with a little management experience could manage it well. Selling albums was straightforward, with no complicated products, so the management difficulty was negligible.

Lee Soo-man sensed a "dangerous" aura, which came from LOEN. Perhaps this was just the beginning. He always felt that LOEN had other tricks up its sleeve, just not yet revealed.

Not only Lee Soo-man, but also Kim Kwang-soo, Yang Hyun-suk, and Park Jin-young all sensed a "dangerous" aura. They were also troubled by whether they should follow LOEN's lead and open online shopping services. Park Jin-young immediately called his "strategic ally" and drinking buddy, Yang Hyun-suk.

"Old Yang, what do you think about this?" Park Jin-young said bluntly.

"Which one are you referring to?"

"Of course, it's about LOEN opening an online shopping service. What else? Do you think we should follow suit?"

"No way!" Yang Hyun-suk said decisively. "Absolutely not. LOEN was forced into this shortcut by the retailers, but we can't do that. Not to mention our good relationships with retailers, if we also open an online shopping service, how much should we sell each album for? 20,000 won or 19,500 won? If we sell it cheap, fans will benefit, but retailers will go on strike, and we'll suffer the consequences. If we sell it expensive, our company's reputation will be severely damaged. If we sell it for 20,000 won, there's no difference from the retail price, and fans might not buy it, offending the retailers. If we don't do it well, we'll be in a bind. This shortcut is only suitable for LOEN, who has no concerns, but not for us!"

"Hmm, you're right..." Park Jin-young's initial enthusiasm quickly subsided.

At this moment, Yang Hyun-suk asked, "By the way, have you found the person you're looking for?"

"No... Who knows where that guy is hiding... I've been searching for over a month, and there's no news at all. I've tried everything, except for putting an ad in the newspaper..." Park Jin-young said dejectedly.

"Give up... Even if you find him, who knows if he'll join your JYP?" Yang Hyun-suk said sarcastically.

Park Jin-young was secretly annoyed, "Stay where it's cool... I knew you didn't have good intentions!" With that, he hung up the phone.

...

Time passed, and it was already noon. On MelOn, the pre-order volume of Lee Yunjae's album had reached 129,000 copies. Bae Song-in was thrilled, having recouped the costs in just half a day. However, other entertainment companies were feeling a headache.

At this moment, another event occurred that made them even more frustrated.

"To thank our fans for their enthusiasm, from 1 PM to 6 PM, the group-buying price for the album will be 18,000 won. Every week, we will hold such group-buying activities to show our appreciation. (Note: Fans who participate in group buying cannot participate in the lucky draw.)

In response to the fans' calls, our company will also open a section for merchandise on the online store, with a group-buying day every week. Please support us!"

Boom... It was like being struck by lightning. This news deeply stimulated the fans' purchasing psychology. Who doesn't love a good deal? As long as the quality is guaranteed, everyone wants to spend less money on what they like.

Moreover, the merchandise would likely be cheaper than in retail stores, just like the album.

However, the 120,000 fans who had already bought the album were a bit disappointed, having spent 1,500 won more. When they saw that "group buyers cannot participate in the lucky draw," they felt better. It was clear that LOEN had considered the feelings of those who had already bought the album.

There were gains and losses. Group buyers saved money but had no chance to win a signed poster by Lee Yunjae. On the other hand, those who didn't participate in the group buy paid 1,500 won more but had a chance to win a signed poster, which was worth it.

An hour later, at 1 PM, the online store page refreshed, showing two channels: one for group buying, with a countdown, and the other for regular purchases.

Thousands of people flooded into the group-buying channel to place orders and pay the deposit. After everything was done, they just waited for the delivery.

In just half an hour, 5,000 fans had placed orders through the group-buying channel, and over 2,000 had placed orders through the regular channel. Clearly, more fans chose the group buy, but both numbers were growing.

This was great news for LOEN but not so much for other entertainment companies. They were envious and resentful, but for the retailers who had been furious the day before, this was another huge blow.

LOEN was selling cheaper than them. Although LOEN currently only sold Lee Yunjae's solo album and merchandise, there was no guarantee they wouldn't expand their business in the future. What would happen then?

Immediately, some large retailers joined forces and filed a lawsuit against LOEN for unfair competition with the local business department in Seoul.

Boom... It was like being struck by lightning. The business department staff, upon receiving the complaint, were almost tempted to scold them. "What do you care how they sell? It's your own fault for forcing LOEN to this point, threatening to boycott them. Now that you see their sales are booming, you're jealous. Who's to blame? You're only reaping what you sowed."

Third update, please follow, please recommend!!

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