2003: Starting with Foreign Trade

Chapter 687 Wei Lai's Year-End Sales

After entering December, all of Weilai Auto's projects have accelerated significantly, with construction at the Beicang site starting to speed up.

Beicang District also provided Weilai Automobile with a low-interest loan of 3 million yuan to supplement the funds for the new production line.

In addition, the local government of Luzhou will soon send an inspection team to conduct a detailed investigation of Beicang Weilai Automobile and the entire Shanchi Group.

According to the agreement, in addition to transferring 840 mu of industrial land at a low price, the local government of Weilai Automobile's Luzhou factory will also provide a low-interest loan of 5 million yuan from various banks.

All of this will be covered by a formal agreement after the site visit concludes.

The 840-acre industrial land is adjacent to the existing Jinshidai Industrial Park. Tan Jincheng's plan is to build a complete Shanchi Industrial Park in Luzhou, and further expand it in the future.

The inspection was just a formality; the new loan of 8 million yuan was a lifesaver for Weilai Auto at the moment.

Don't be fooled by the booming sales of Weilai Auto; they're short on cash. The initial investment was huge, and they need to keep both long-term and short-term loans in circulation, as well as pay off interest and other expenses.

The money we got from the distributors was considerable, but it was needed to prepay for next year's parts purchase orders, so we couldn't just spend it recklessly.

The sales target for the Yuechi A1 in 2010 is 12 units. The procurement of parts will increase significantly, and the required funds will also increase significantly.

However, one advantage is that with large-volume orders, the supply chain price can be reduced, and the payment cycle can be extended.

The positions of Party A and Party B are not absolute; this has always been the case.

However, when it comes to payment terms, the Flash series is highly praised. Compared with some other companies that have payment terms of 180 days, the Flash series' overall payment terms range from 60 to 90 days, with a maximum of no more than 90 days.

This is not due to the Flash Group having too little bargaining power in the supply chain system, but rather it is a proactive requirement of the Flash Group to guarantee payment terms for suppliers, so that they are willing to supply goods on time and with guaranteed quality, thus ensuring product quality.

"These next few days, please prepare for the reception arrangements in Luzhou. If you have any questions, you can ask Secretary Zhao for advice."

On the way back from Meishan Island, Tan Jincheng expressed this to Zeng Jixiang.

This should be the first time that FlashDrive has hosted such a high-level government investment delegation from a provincial capital.

In the past, many local governments would come to Flash's headquarters for inspection, but none of them were of such a high level. Some of the smaller local governments didn't even need Zeng Jixiang to receive them; sending a general manager or vice president would have been enough.

These kinds of things are mostly just social obligations and don't really serve much purpose. In some places, people just come to Beicang to participate in some investment promotion activities, and then casually take a look around, take a few photos, and write a few articles to report back to their superiors.

Over the course of more than two years, many places have tried to attract Flash Group, as building a factory there could solve the employment problem for hundreds of people. However, few have succeeded. Tan Jincheng has his own set of theories on urban planning for investment.

It's almost the end of December, and besides the inspection team, Tan Jincheng is most concerned about two things.

Year-end sales figures for Weilai Auto and Shanchi Technology's two-wheeled electric vehicles.

In November, when Obama visited China for the first time, the Minister of Science and Technology presented him with two Flying Pigeon electric bicycles, one for Obama and the other for the accompanying Minister of Energy.

Twenty years ago, one of their leaders received a state gift of a pigeon, but back then it was a bicycle. Times have changed, and another state gift was still a pigeon, but this time it was an electric bicycle.

The popularity of electric bicycles has further expanded, and like cars, the sales of two-wheeled electric vehicles have also seen explosive growth this year.

Relying on offline sales channels, major two-wheeled electric vehicle manufacturers are rapidly expanding their market share in cities and surrounding rural areas. Coupled with the disruptive presence of Aima, a dark horse in the industry, the overwhelming "If you love it, act now" slogan has made electric vehicle brands deeply rooted in people's hearts.

2009 was a watershed year for our automotive industry, and also for the two-wheeled electric vehicle industry. Before this year, electric vehicle users did not have a deep understanding of brands; as long as it was easy to use and cheap, that was enough.

After several years of market cultivation, two-wheeled electric vehicles will inevitably become the domain of branded car manufacturers after this year, and sales will inevitably concentrate on the industry leaders.

FlashDrive Technology sold 148.07 million vehicles last year, and its sales forecast for this year remains at 20% to 30% growth.

In other words, the sales target of 1.8 million vehicles had already been achieved by mid-October. Major competitors also reported good news frequently. After the start of the peak season this year, Yadi even announced an annual sales target of 2 million vehicles.

Chipray, which was selected as one of CCTV's most valuable brands in 2009, is also constantly expanding its production capacity, striving to remain in the top tier of the industry.

2009 was a year of explosive growth for two-wheeled electric vehicles, but it was also a year of fierce competition. Aima entered the market with substantial capital, targeting the low-end market with a strategy of "encircling the cities from the countryside," using advertising and price reductions to drag its competitors down with it. It resembled Pinduoduo in the online shopping era, aggressively entering the industry and forcing everyone to engage in cutthroat competition. This year's price war was even more intense than the one initiated by Shanchi previously.

Sales have increased, but the profit per vehicle has decreased significantly. Fortunately, Flash Motors still has a considerable export business for electric vehicles, and the profit margin for electric tricycles is also quite good.

The two-wheeled electric vehicle market is about to enter its second phase.

Advertising and celebrity endorsements remain powerful tools, but with the expansion of social networks, the increasing development of the internet, and the decline of celebrity glamour, relying solely on celebrity endorsements for marketing will not last long.

"Is this why the Yuechi series has never had a celebrity spokesperson?"

"That's partly the reason. Flash will definitely retain the tradition of having brand ambassadors in the future, but I haven't decided on Yuechi yet."

While waiting for the Luzhou delegation, Tan Jincheng also took the time to meet with Chun Ge's agent, whose endorsement contract with FlashChe ended in 2010. Now, countless female celebrities are eyeing that contract.

In 2009, Chris Lee's career was still booming. He was featured in Southern Metropolis Weekly and received the title of Youth Leader. He also gained many big-name endorsements and successfully released his first self-titled album.

In just over ten days, the album became the top-selling album in its category on websites such as Dangdang and Amazon China.

Incidentally, thanks to her super charm and influence, she became the first female singer from mainland China to be selected for Madame Tussauds, and also the youngest member of Madame Tussauds.

Oh, right, I also starred in Bodyguards and Assassins this month. I watched this movie in my previous life, and well, the plot was just...indescribable. Hong Kong directors really can't keep up with the pace of mainland entertainment.

On the 26th, there will be a concert at the Bird's Nest. Ji Jiren came to Tan Jincheng under the pretext of giving him concert tickets to discuss contract renewal.

This matter was no longer under Tan Jincheng's direct control, but because the two had grown up together and shared a bond, Tan Jincheng made time to meet with her.

"What about Chun Ge's endorsement?"

"Don't worry, we've been working together for so long, we'll definitely renew the contract. I'll let my colleagues know. Manager Man, don't worry about that. Unless there are special circumstances, our current spokespeople are our priority for renewal."

Manyang breathed a sigh of relief: "Thank you so much, President Tan."

She had just tried to get Chun Ge the position of Yuechi's spokesperson, and Tan Jincheng talked to her about the future impact of the spokesperson on their company's products. This made her think that since she hadn't managed to get one, she was going to lose the other one too.

Chun Ge (Chris Lee) doesn't lack endorsement contracts now, but the endorsement contract with Flash Technology is of great significance to her. Flash Group's status in the country is extraordinary, and she really doesn't want to lose this endorsement unless absolutely necessary.

If they hadn't known each other since they were both nobody, it would be a bit of a pipe dream for an agent like Manyang to want to meet a billionaire like Tan Jincheng and discuss specific business.

Being able to meet the head of the relevant department is already considered a good thing.

"You're welcome. It's a mutually beneficial deal. I'll accept the concert tickets, but I don't know if I'll have time to go. If I do have time, I'll definitely go."

As for the spokesperson for the Yuechi A1, Tan Jincheng really couldn't think of a good candidate.

While celebrity endorsements may not significantly boost sales, it's undeniable that having a suitable spokesperson can indeed promote a brand.

Who should we choose? Liu Huaqiang? This guy has become incredibly popular this year and has become the spokesperson for many car models, but he doesn't seem to fit the image of the Yuechi A1 quite well; he's too rugged.

Liu Huaqiang and Tan Jincheng didn't want to choose a spokesperson. The selection of a spokesperson is indeed a bit of a mystery. If done well, it can greatly benefit the brand, but if done poorly, it can be a blow.

Weilai Auto's current intelligent order system has improved the time for compiling the previous day's orders from 12 noon to 10 am, which is a step closer to the boss's requirement to compile order data before the 8 am start time.

As of the 20th, Weilai Auto's sales volume this month has reached nearly 4500 vehicles. Compared to the booming sales in November, although sales in December are still good, they are much colder than expected.

Sales of popular models, including the CRV and RAV4, as well as other best-selling sedans, all saw a significant decline in December, which is a normal phenomenon in the car market.

Furthermore, with the arrival of winter, electric vehicle sales have entered the off-season. The final rankings of the two major markets are basically determined, and the only thing to wait for is the final data.

(End of this chapter)