newbobooks Chapter 475 Global Strategy
Chapter 475 Global Strategy
Lu Ran originally planned to wait another two weeks before officially starting the European agency project.
He planned to first get the TUTU account pre-binding process running smoothly, and then, once the negotiations with Tencent were progressing smoothly, he would be able to focus on the specific signings in Europe.
But the three companies clearly don't intend for him to follow this pace.
First, Asterix Games from France sent a business director to Shanghai. The day after landing, the director called the front desk of TUTU to say that the person had arrived and hoped to arrange a meeting as soon as possible. The tone was polite but urgent.
Then Black Forest Interactive from Germany sent a formal email saying that they plan to send a team to Shanghai next Wednesday for a three-day visit, and to review the contract terms.
Finally, even Phoenix Games from the UK couldn't sit still. Although they didn't send anyone over directly, they sent a supplementary document that was more than ten pages long, providing detailed answers to the questions Lu Ran had raised earlier. Their attitude was much more sincere than in the previous round.
After leaning back in his office chair and reviewing the movements of the three companies, Lu Ran felt that since things had come to this point, it was better to lay all his cards on the table at once.
He called Zhou Mingzhe and asked him to invite representatives from the three companies to Shanghai within three days, keeping the time as close together as possible.
Zhou Mingzhe asked him whether he wanted to talk to each company individually or all at once. Lu Ran said to talk to each company individually first, let them state their conditions, and then make a unified decision after all three companies have revealed their bottom line.
Three days later, representatives from all three companies arrived.
The French representative was a man in his mid-thirties named Durand, wearing a well-tailored black suit and a tie that was perfectly tied.
He doesn't speak German fluently but can communicate, and his English is actually better than his French.
He looks shrewd but not greasy, and his handshake is neither too firm nor too loose.
His luggage consisted of only a carry-on suitcase and a briefcase, clearly indicating he was a seasoned business traveler.
The German representative was a tall woman in her early forties named Schmidt. She was wearing a gray casual suit jacket over a white shirt and no tie.
She had clearly studied Chinese intensively for a few months and could utter a few simple words, but she still communicated in English most of the time.
She spoke at a moderate pace, asking each question to the point without uttering a single unnecessary word.
The materials they brought were a thick stack, with every piece of data having a source and every inference having a basis.
The British representative arrived last; he was a man in his fifties named Harrison, with gray hair, wearing gold-rimmed glasses and a dark blue double-breasted suit, exuding an air of somewhere between a university professor and a banker.
His English is standard London accent, and he occasionally pauses when he speaks, as if he is translating the words into a simpler version in his mind before uttering them.
He didn't bring many materials, but each one was exquisitely bound, with the logos of the two companies printed side by side on the cover, showing that a lot of thought had been put into the layout.
Lu Ran first met with the German company.
After sitting down, Schmidt didn't exchange any pleasantries. She immediately opened her laptop and projected the market analysis report she had brought onto the large screen in the conference room.
The report is very thorough, clearly analyzing the gaming markets of major European countries based on factors such as population, consumption habits, cultural preferences, network infrastructure, and policy environment.
Pointing to the data on the screen, she said that the German market is one of the largest gaming markets in Europe, but the greatest growth potential is actually in France and Italy. Players in these two countries have become more accepting of competitive games in the past two years, to a degree that even local publishers did not expect.
After listening to her presentation, Lu Ran asked her opinion on TUTU's two approaches: establishing its own European branch and finding an agent for distribution.
Schmidt paused for two seconds, then said that if the goal was to establish a foothold in the European market within three to five years, then finding a local agent would be the most efficient approach.
However, if the goal is to cultivate the industry for more than ten years, then ultimately you will still need to build your own team.
Her honesty surprised Lu Ran.
Most agencies try to downplay their own necessity when facing potential clients, emphasizing "you don't need to worry about us."
Instead, Schmidt laid out the advantages and disadvantages of both approaches, without trying to embellish his own solution.
Then Lu Ran met with the French company.
After sitting down, Durand first praised TUTU's product design in great detail, not just a general "you guys did a great job," but he analyzed the advantages of the UI layout, the onboarding process, and the matchmaking mechanism point by point. It's clear that he has genuinely played games, and quite a lot at that.
He said that the French market has higher requirements for visual quality than the German market, and French consumers are willing to pay for things that look good, even if those things are not particularly practical.
However, if the game's graphics are mediocre, even the best management won't boost the numbers.
He showed Lu Ran the results of a local French user survey. The sample size was small, but the questions were very detailed. Players were divided into several consumption models based on their age group and game preferences.
He said that French players are characterized by being stubborn but soft-hearted; they might say things like "spending money on in-game purchases is not as good as buying food," but their actions betray them when they see a nice new skin.
Finally, there's the one from the UK.
Harrison's style is more subtle than the previous two.
He didn't bring any presentation documents or thick data reports, just a thin paper plan, which he pushed over very gently.
The plan doesn't contain much information, but each point is very concise.
His assessment of the market was more conservative than the other two, believing that the European games market would continue to grow, but at a slower pace, mainly due to policy and economic cycles.
However, he also mentioned that the e-sports sector will experience unexpected growth, and this growth is not affected by economic cycles, making it an independent track.
One point in his proposal left a deep impression on Lu Ran.
He said that if Phoenix Games were to handle the distribution in Europe, they would be willing to completely separate the development of the esports ecosystem from regular operations. The esports portion would not take up any budget or manpower from daily operations; instead, a separate team would be established to handle it.
This way, even if there are fluctuations in profits during daily operations, the competition system can continue to move forward steadily.
After meeting with all three families, Lu Ran called Zhou Mingzhe and Chen Mo to his office.
He leaned back in his chair and went through the three proposals.
The German company is the most rigorous, has the most solid data, and the most reliable strategy, but its pace is slow. If we follow their suggested pace, the localization testing period will take six months, which is not satisfactory in terms of time planning.
The French company is the most flexible, proactive, and has a relatively accurate understanding of the market, but it is relatively small and cannot cover the whole of Europe.
The UK company is the most professional, with the most comprehensive solution design, and their e-sports-oriented ideas align well with TUTU's long-term plans. However, they charge the highest price and have many additional conditions.
Chen Mo spoke first, asking, "So, have you decided? Which one to choose?"
Lu Ran remained silent for a moment.
Only children make choices; adults, of course, want it all!
However, there are specific rules about how to choose them.
Lu Ran thought for a moment and suggested splitting it up.
They wanted all three, but with different terms. The German company would handle daily operations in the German-speaking and Central European markets, the French company would handle channel distribution and user acquisition in the French-speaking regions, and the British company would be responsible for building the esports ecosystem and coordinating tournaments across Europe.
When Zhou Mingzhe heard the plan, he raised an eyebrow and asked how the three companies would coordinate.
What if everyone does their own thing and the user data ends up in chaos?
Lu Ran also explained this aspect.
They all use the same server architecture, with the underlying data managed by TUTU, while the other three companies are only responsible for front-end operations and user services.
Game version updates, event content, and recharge systems all use TUTU's standard interface, preventing them from developing their own independent operation tools.
In this way, even if there are differences among the three companies, it is only a difference in marketing and user communication styles, and will not affect the consistency of the game's data.
After listening for a while, Chen Mo said, "You're essentially using TUTU as the underlying supplier and the other three companies as front-end distributors."
The good thing is that management costs are low and data risks are controllable. The bad thing is that all three companies will feel that they are just a channel rather than a partner, which can easily lead to centrifugal forces over time.
Lu Ran indicated that he knew this, so he had to add a clause.
One year later, the agency qualifications will be reassessed based on the actual operating data of each company.
The agency with the best data will receive more resources and priority renewal rights, while the agency with the worst data will have its agency rights revoked.
Use competition to maintain their enthusiasm, instead of always relying on us to urge them on.
Lu Ran is unsure which of the three companies will perform better, so this is the only way to determine it.
After the plan was finalized, the three companies held a second round of intensive negotiations within three days.
Schmidt's company was the first to agree.
After hearing TUTU's split plan and the one-year evaluation period clause, she didn't show much surprise. She just asked what the specific evaluation criteria were.
Zhou Mingzhe listed the key operational data indicators: daily active users, user retention rate, paid conversion rate, and user complaint rate. Each item had a clear calculation method and assessment period.
After reviewing it, Schmidt said, "This is fair," and signed the letter of intent on the spot.
Durant hesitated for a moment.
He worried that operating three companies simultaneously would dilute the brand image and prevent a unified market strategy.
Lu Ran had Chen Mo call him and say that TUTU would be in overall control of the brand, and that all promotional materials and main visuals for events would be designed by headquarters. The three companies would only need to fill in the localized content according to the template.
After hearing this, Durand did not hesitate any longer and sent over the signed letter of intent early the next morning.
Harrison's side took the longest to process.
His concerns were not about operations, but about control of the esports ecosystem.
He worried that TUTU was binding esports and daily operations too tightly, which limited the autonomy of the events.
Lu Ran called him directly and said that TUTU would only provide the framework and standards for the e-sports part, while Phoenix would decide on the specific schedule, broadcasting partners, and offline venue arrangements. However, the copyright for the annual finals would belong to TUTU.
Harrison was silent for a moment on the other end of the phone, then said okay, but he insisted that this be written into the formal contract.
On the day all three letters of intent were signed, Zhou Mingzhe mentioned a number at the routine meeting.
According to the operational plans and estimated investments reported by the three companies, the European market could bring at least 60% additional user growth to League of Legends next year.
This does not include the server deployments that are underway in the Middle East and South America.
Negotiations in the Middle East are simpler than those in Europe.
The distribution channels there are relatively concentrated, with only two or three major publishers to connect with, while TUTU has a much smaller selection.
Chen Mo got in touch with a publishing company in Dubai through an old friend he met during his time at Tencent.
The other party is not large in scale but has a very solid background, backed by a local family group that is in the telecommunications and finance business, and its channel resources cover the entire Gulf region.
The negotiations proceeded smoothly. The other party was very interested in the performance of League of Legends in the European market and saw the growth potential of that market, showing a strong willingness to cooperate.
After two rounds of negotiations, a framework agreement was signed.
The terms are much simpler than those in Europe, with a reasonable profit-sharing ratio, flexible operating cycle, and not too many additional conditions.
South America is a bit more complicated.
The market there is quite different from that in Europe and the Middle East. There is a large player base but a low paying rate, the network infrastructure is uneven, and it is difficult to find local operation teams.
Zhou Mingzhe suggested finding a local partner to conduct a pilot operation first, running it for six months to see the data before deciding on the next step. Lu Ran agreed with this approach.
He got in touch with a publishing company in Brazil through an old friend in the gaming industry.
The other party has been a game distributor in Latin America for over a decade. Although most of the products they've worked on are casual and light competitive games, their distribution channels are quite mature, covering major markets such as Brazil, Argentina, Chile, and Colombia.
The other party's interest in League of Legends is also obvious, because their product line is missing a hardcore competitive product that can boost user activity and online time.
The framework agreement in South America was signed a little slower than that in the Middle East, mainly due to some details being stuck on.
The other party wanted more operational autonomy, while TUTU wanted to maintain the same level of control as in Europe.
After three rounds of back-and-forth, both sides finally compromised on the issues of sharing operational data and the pace of version updates.
On the night the agreement was signed, Lu Ran sent a message to Zhou Mingzhe, saying, "The four pieces of the global puzzle have been put in place at the same time."
Zhou Mingzhe replied, "Don't be too happy yet; the real test is in the operation."
Lu Ran thought about it and agreed. Right now, they had just set up the stalls. The real challenge was how to make these stalls gain a foothold in their respective markets.
But he knew in his heart that with these three companies each responsible for operations in Europe and Central and South America, it would be several times faster than starting from scratch one by one.
He turned off his phone screen, leaned back in his chair, stared at the ceiling, and mentally reviewed the schedules for the three markets in Europe, the Middle East, and South America.
In Europe, the three companies each manage a server cluster, each with its own focus and strengths.
In the Middle East, operators and users have clear needs and a high willingness to pay. As long as content that conforms to local cultural habits can be created, it can quickly gain traction.
South America presents the greatest challenges but also holds the most potential. With its massive user base, the returns will be comparable to those in Europe if retention and paid conversion rates can be improved.
He thought for a while, then sat up straight, opened his computer, created a new document, and listed the key milestones that needed to be followed up on over the next three months in chronological order.
The launch dates for the three European servers were staggered, the localization and promotion plans for the Middle East were planned, and the user survey and initial event plan for South America were prepared. Each item was followed by a remarks section and a signature section for the person in charge.
After he finished writing, he saved the document, turned off the computer, stood up, walked to the window, and looked out.
It's as if Tencent is right there, watching him from the same angle.
But after playing these moves, Lu Ran is no longer afraid.
When soldiers come, generals will block them; when water comes, earth will dam it.
It's still uncertain who will emerge victorious.
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