2003: Starting with Foreign Trade

Chapter 175 Industrial Base Concept
Should it be priced at 2599 yuan or higher? We're still undecided.

Forget it, let's talk about it in a few days. Let's wait until the sample car comes out and see how the market reacts. Also, we need to do a good job of preliminary market research, and visit more white-collar workers and conduct questionnaire surveys.

Because FlashCheer targets a lower-income group, Tan Jincheng did not conduct a survey when he priced it. The price was low enough, almost 1000 yuan cheaper than the mainstream products on the market, and with the promotion of celebrity advertisements, he did not believe that no one would be tempted.

Products that focus on cost-effectiveness are likely to succeed as long as they have good quality control and sufficient production capacity, as seen with Xiaomi, Hasee computers, and later Pinduoduo.

When ordinary people buy products, they all like cheap ones. Even those with some wealth like to get a little bargain; it's a common human trait.

However, Fengchi is different. Fengchi needs to target a group of people who value quality but don't have high incomes. Low prices are not the only goal, so the pricing needs to be reasonable.

Theoretically speaking, the price of 2599 is actually acceptable. Spending a month's salary (based on average salary) to buy a small electric scooter is about the same as spending a month's salary to buy a mobile phone.

dong dong dong.
"Come in."

"Boss, the district asked us to provide some additional materials for the land use approval we submitted last time?"

What additional materials are needed?

"Regarding our factory construction plan, Secretary Zhao's idea is that it would be best to have a long-term plan, so that it would be easier to calculate how much land to approve, otherwise it would be too troublesome to do it one step at a time."

Tan Jincheng stroked his chin. There was something deeper in those words. Logically speaking, the materials submitted last time should have been sufficient. If it was just a simple land approval, they could just follow the procedures submitted last time. If it could be approved, they would approve it; if not, they would just send it back.

There's absolutely no need for this.

"A long-term plan? Hmm?" Haha, that's interesting, I get it.

It's true that maintaining good relationships is necessary. Some things can't be said outright. It's just supplementary material, no problem.

"Go find a map of Beicang District and give me a list of the prices of industrial land sold over the years."

Electric scooters really took off last year, and this year, after the "right of way" policy was relaxed, the competition has become even fiercer. In terms of market share, Xinri ranks first with annual sales of 20 units, while other brands such as Xiaolingyang, Hongdu Electric Vehicle, and Supaqi have relatively high market shares.

It is worth mentioning that although Xinri has become the industry leader this year and had sales of 10 vehicles last year, it can only be considered a "newcomer" at present. The industry leader recognized by consumers is still Supaqi.

The first batch of consumers who bought electric scooters mostly bought the Supaqi brand. Before Supaqi, there was no brand concept in the electric vehicle market. It has only been about two years since the concept of branding truly took shape.

It can be said that Tan Jincheng entered the market at a good time, and his brand marketing methods were also quite advanced. As the first electric vehicle brand in the industry to hire a celebrity to endorse it, although its sales volume for the whole year was less than 4 vehicles, its brand awareness was not low.

Just like the early days of the internet, a time of fierce competition among numerous players, the electric vehicle industry is also in a similar situation. In such an era, standing out may attract the attention of competitors prematurely, but the benefits are also very obvious.

The marketing director of Xinri, a rising star in the industry, particularly admired Flash's marketing strategy, which leveraged the Super Girl platform to instantly promote the brand nationwide. In Yu Lin's view, as long as Flash's production capacity increases rapidly, Flash can at least enter the top ten in the industry with this wave of advertising effect.

This is a remarkable marketing campaign. Moreover, the Super Girl competition is held every year. As long as Flashcar continues to advertise on Hunan TV during next year's Super Girl competition, it can ride the wave of popularity again.

Becoming famous certainly has its advantages. In the electric vehicle market, if the established leader is Superbike and the newcomer is Xinri, then in Tan Jincheng's view, his own Shanchi can be considered an "internet celebrity".

How to advance from "internet celebrity" to "star" and then to the top of the industry is the question facing Tan Jincheng.

Building a factory and owning your own electric vehicle production base, so you don't have to rent factory buildings everywhere anymore, is the best step.

Production base and factory are two different concepts!
"In that case, let's be bolder and see if it gets approved or not later," Tan Jincheng said with a light laugh.

A short while later, Zhang Xuhui handed over the Beicang map and a list of historical industrial land transfer prices. Tan Jincheng then compared the map with his memories from his previous life, imagining where it would be most appropriate to place the electric vehicle base.

Ideally, Tan Jincheng wanted to locate the base in Daqi Town. The living environment there might be a bit lacking, but it was perfect for building a factory. The Yongtaiwen Expressway runs through the entire area, and it is adjacent to Yinzhou District. The location is also suitable for the port, making it very convenient to transport goods to other provinces and cities via the expressway or to do export business through the port.

"If only I could be here." Based on his memories from his previous life, Tan Jincheng roughly sketched out an area.

The area adjacent to Yinzhou District will become a very large industrial zone in the future, and part of it involves demolition. Currently, it is a rural area with only a few farmers and a small population, so the resettlement should be much easier.

All that's needed is wasteland, and there are few population issues to address. Some of the demolition areas won't be completed for another 10 years or so. Once the base is built, it can also solve the employment problems of some displaced farmers. So, it shouldn't be a big problem, right?
Subsequently, Tan Jincheng drew up several alternative areas, mainly located in the Daqi Town and Xiapu Town areas. As for the Xinqi Street area in the urban area, Tan Jincheng dared not proceed, firstly because the urban planning was already more than ten years in the future, and there was a high probability that he would not have the opportunity to acquire it.

Secondly, even if the base is successfully acquired, its area will definitely be much smaller. It would be somewhat inappropriate to break up the production base into smaller sections just for the sake of demolition a few years or a decade from now.

After determining the location, Tan Jincheng glanced at the historical industrial land transfer prices. Even in Beicang in 2005, the industrial land transfer prices were very cheap.

According to the standards implemented in Zhejiang Province, the minimum price for industrial land in Beicang District is less than 17 yuan per mu, which translates to about 250 yuan per square meter. This is relatively high, as some other provinces and cities in Zhejiang Province charge tens of thousands of yuan per mu.

This is in economically developed coastal provinces and cities, where land prices are so cheap; in some small inland counties that want to develop, land will even be given away for free if you invest in building a factory, and there will also be very generous tax incentives.

"How big should it be? How big is a standard football field again? It's less than 11 acres, so let's make it a little bigger than a football field."
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"Yongcheng Shanchi Technology Co., Ltd. mainly designs, researches, develops, manufactures and sells green energy electric two-wheelers. It plans to produce 1 million electric vehicles per year and also plans to attract related supporting enterprises to settle in. The related industrial chain is expected to have a total annual output value of 5 billion yuan."

The company plans to establish its first production base in Beicang District in 2006, with a planned area of ​​150 mu (approximately 10 hectares) and a planned investment of 200 million yuan. We hope the relevant departments will approve the land use.

"Wow, this young man has quite the nerve. 100 million units? Their company's sales this year are less than 4 units. He's got quite the big talk."

When Director Gu saw the resubmitted application materials, he couldn't help but laugh and scold.

"Haha, that's quite a boast. But I've done some research on them recently. Their cars are selling very well, and demand exceeds supply. The reason their sales aren't high right now is due to production capacity issues. They're one of the hottest electric vehicle brands in the second half of this year."

The leader glanced at his secretary but ignored her, his fingers unconsciously tapping lightly on the desk.

Zhao Jinsheng immediately understood that the leader was seriously considering the matter, so he said no more.

The electric vehicle industry in 2005 was definitely an emerging industry, and also a year of rapid development. Compared to the data collected by Tan Jincheng, the data that Zhao Jinsheng had was much more detailed.

Although the year is not over yet, the data model of the first ten months has been used to basically calculate the data for the whole year. Whether in terms of sales revenue or sales volume, compared with last year, the industry growth rate is at least between 15% and 20%.

The most telling data is that the total sales of electric vehicles in 2005 should be around 1000 million units, and there should be nearly a thousand electric vehicle manufacturers of all sizes across the country.

After two years of rapid development, some economists predict that sales of electric vehicles will exceed 2000 million units in 2006! Undoubtedly, next year will be a year of rapid growth.

Among these nearly a thousand companies, FlashTech has set an annual production capacity of 10% of its total sales for this year! That's quite an ambitious goal.

The land use standard was raised to 150 mu in one go, which is larger than ten standard football fields. The guy was really bold. Zhao Jinsheng wondered if the guy did not understand his hint or understood it too well.
As for the claim of investing 2 million yuan, just take that with a grain of salt. If it were actually invested, it wouldn't be a one-time thing. Besides, this kid doesn't have that much money. He'll probably have to use the land as collateral for a loan.

"Are all young people these days so ambitious? Or did he get carried away after making 5000 million yuan recently?" Zhao Jinsheng couldn't help but wonder to himself.

As someone who has always paid attention to Shanchi and Tan Jincheng, Zhao Jinsheng was naturally aware of the equity change of Jinpeng Trading, and also knew that Tan Jincheng had exchanged the transferred equity for 5000 million yuan (excluding tax) in cash.

Selling the equity of a well-run trading company at a low price and then injecting 3500 million yuan into FlashTech, isn't their intention clear?
Without a doubt, this young man has great ambitions, which means that the new application materials he submitted are very likely genuine!

As his thoughts took flight and he came to his senses, Zhao Jinsheng was momentarily dazed.

Some readers have pointed out that the equity transfer in the earlier chapters was somewhat unreasonable. After thinking about it, I realized it was indeed a bit hasty and I hadn't considered it thoroughly enough at the time, so I've made some revisions.

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(End of this chapter)