2003: Starting with Foreign Trade

Chapter 698 Flash Technology's First Fiscal Year

Nine rooms?
The boss's words left Cheng Hao confused, but he had heard of the website's founder.

Unlike other internet entrepreneurs, 9rooms focuses on mobile clients, accumulating 1.5 million users in six months and becoming the number one real estate application.

Cheng Hao didn't quite understand why his boss wanted him to look at this website or this application.

However, the boss didn't seem inclined to continue, so Cheng Hao had no way to ask further.

Forget it, let's sell Happy Farm first. How much should we sell it for?

Boss Tan didn't care how high the price Cheng Hao sold it for. After issuing the task, he left with his wife. As for how Orange Technology was going to hold its year-end celebration, he couldn't be bothered with that.

Internet companies have far more tricks up their sleeves than traditional companies; they have their own ways of creating a buzz.

"What did you mean by 'nine rooms' just now?"

Gu Qingqing was curious about what Tan Jincheng said to Cheng Hao at the end.

"Oh, that company makes mobile apps, like the mini-games we develop on iOS. Our company will also be making mobile clients in the future. Companies like Orange Products will need their own apps. I'm letting Mr. Cheng get used to it in advance."

The internet in the PC era and the internet in the mobile era are actually two different concepts. Many internet companies that dominated a certain field in the PC era disappeared in the mobile era.

Is it that they don't know how to adapt to the mobile internet era?

No, it's clearly not that. It's that the business owners haven't adapted their thinking in time and can't keep up with the increasingly competitive mobile internet era.

According to Tan Jincheng, the difference between the PC era and the mobile internet lies not only in the different terminals but also in the change in lifestyle.

A PC requires you to use it in a fixed place, whether it's at home, in an internet cafe, or in a Starbucks where artsy young people like to show off. In short, whether you're working, playing games, reading, watching movies, or listening to music, you need a fixed place to use it.

But mobile phones are different. You can play with your phone anytime, anywhere. You can play a game or read a few chapters of a book while you're in the bathroom.

Once anything has a fixed pattern, it often becomes limited. It may seem like a lot of time is spent on a PC, but mobile phones, with their more fragmented time, actually require even more time and effort.

This is precisely why long videos can't compete with short videos.

The mobile internet era is more competitive and intensified, and the information that Tan Jincheng can remember is more diverse, including both useful and useless information. It will be difficult for his company to survive by relying solely on his ideas.

Orange Technology needs to be prepared for a transformation to mobile internet from top to bottom.

When I returned to my office on the top floor, Zeng Jixiang had already sent over FlashTech's 2009 annual electric vehicle sales data, including internal company statistics, national sales data from the Bicycle Industry Association, and data from major manufacturers.

"How many cars were sold?"

Gu Qingqing was also a little curious. It was true that FlashTech's strategic position in the group had declined, but FlashTech's role had not diminished at all. It was a financing platform and a symbol of the group's brand power.

"Take a look for yourself, let me look at the national data first."

Tan Jincheng handed Gu Qingqing the data sheet compiled by the company. He wasn't too concerned about how many cars he had sold; he was more interested in how many cars Aima, this year's dark horse company, had sold.

In their past life, Aima was incredibly successful in 2009, and they're doing quite well in this life too. It's just unknown how Aima will perform without Jay Chou's support.

"A total of 2369 million two-wheeled electric vehicles were sold nationwide throughout the year. Wow, that's 1800 million last year."

The overall trend is upward by more than 30%, even against the backdrop of the subprime crisis, and with many small factories being wiped out by Flash and large manufacturers. The actual growth rate should be even higher.

"Hey, the Flying Spur sold 223.71 million units! That's a growth rate of over 50%! That's amazing!"

"It's still a little short; the market share hasn't reached 10%."

Tan Jincheng sighed. The data he had from the Bicycle Industry Association was not much different from the company's. Flash's current market share was 9.44%, which was not much progress compared to the data from previous years, and could even be said to have declined.

The main reason is the emergence of Aima, a dark horse in the electric vehicle market. In addition, Yadi has also made great efforts this year. In this competition to seize the market, Yadi has sold a total of 200 million electric vehicles, which can be considered a big breakthrough this year.

Aima was even more ruthless, selling 192 million vehicles in its first year. As for the original leader, Xinri, it also sold more than 200 million vehicles.

Other established companies like Luyuan have also stepped up their efforts in the market this year. Aima's approach of targeting the low-end market and engaging in price wars has been too aggressive, forcing even leading manufacturers to compete fiercely. "Including Aima, there are already four manufacturers that are close to 200 million in sales."

The top four companies together account for a whopping 35% of the market share, indicating that sales are becoming increasingly concentrated, and the competition this year will certainly be even more intense.

While Xinri hasn't fallen behind, Aima has emerged, Yadi has exploded, and Flash has appeared. If we're talking about companies whose market share has been squeezed the most, it must be Luyuan. As companies from Zhejiang Province, they have a natural competitive relationship.

Furthermore, some small electric vehicle companies in Taizhou are particularly unfortunate. In the Zhejiang market, they are squeezed into a very small area by competing with the three leading Zhejiang car companies: Shanchi, Luyuan, and Philips.

"Yes, we need to continue to increase R&D investment in the next two years and develop new models, otherwise we may not be able to maintain our number one market share."

Aima takes the low-end route, mainly selling to rural and small county markets. To be honest, Tan Jincheng doesn't quite believe his sales figures, but they certainly can't be too bad. Surely they wouldn't add 100 million to their sales figures?

There is some water content, but not much. However, the most eye-catching one should be Yadi. Yadi is a technology-driven company. This year, Yadi launched the Yadi Business School, which clearly shows that it is determined to continue its technology-driven approach.

In terms of vehicle development, Yadi has drawn inspiration from the Flash Fii series to some extent, targeting female users and developing many colorful new models, which have been well received by the market.

As for the spokesperson, Yadi is as bad as ever. They replaced S.H.E. and spent a lot of money to hire Vin Diesel, but the effect was not even as good as Liu Huaqiang. This money was wasted.

However, they reacted quickly and then signed Lee Min-ho, a South Korean singer who had become a sensation in China in the past two years and had even performed on the Spring Festival Gala. Targeting the female market, they hired a K-pop star as their spokesperson, which finally had some effect.

When Dong Jinggui talked to Tan Jincheng about the spokesperson, Tan Jincheng was speechless. Old Fan is a handsome man, and you set the main selling point for this year as the female group. Isn't it ridiculous to choose such a spokesperson?

These days, most people who follow celebrities are into K-pop. What kind of looks do K-pop idols have?
The subsequent patches were quite good, but they won't last long. Although the ban on South Korean actors, stars, and idols won't be released for some time, there's a constant stream of new talent in South Korea.

Each batch of endorsements doesn't stay popular for more than a few years. If the endorsement contract is short-term, it's fine, but if it's long-term, it'll become a mess.

It can only be said that this kind of technology-oriented company is really a mystery when it comes to marketing, especially the choice of spokespersons. Don't be fooled by the fact that Mr. Zhang chose Uncle Long, who is often ridiculed as a brand killer.

However, it must be said that for a long time, he was really good at driving sales. Entrepreneurs aren't all fools; they must have done market research before hiring him.

Uncle Long, who was a sensation at the 08 Olympics, still has considerable appeal this year.

"It's definitely getting harder and harder. Being number one is both an honor and a pressure."

Gu Qingqing had already moved closer to Tan Jincheng. FlashTech's own report focused more on its own company's data, including data on two-wheeled electric vehicles, three-wheeled electric vehicles, and some electric sightseeing vehicles, in addition to two-wheeled electric vehicles.

In addition, there is the export data, which is more detailed than the data obtained by the Bicycle Industry Association.

The report from the Bicycle Industry Association is more like an industry research report, analyzing the entire industry. FlashCheer was mentioned quite a bit in it, but it is clearly not the mainstream view this year.

Gu Qingqing was somewhat curious about Tan Jincheng's opinion on Flashpoint Technology's performance this year: "What do you think of Flashpoint Technology's results this year?"

This is the data for Flashpoint Technology's first full fiscal year since its IPO, and it can directly affect the stock price.

"Strictly speaking, maintaining first place in such a competitive year is already quite good, but from my personal perspective, it's actually a failure."

During that year, Tan Jincheng barely managed the operation of FlashTech. Lin Yumin, Wu Zhenping, and Sun Yuming formed the iron triangle of FlashTech.

Lin Yumin oversees the overall operations, while Wu Zhenping and Sun Yuming manage the two major industrial bases. They are subject to the control of the head office but also have a certain degree of autonomy.

In terms of power structure, the three elders check and balance each other, which is relatively stable. It has also been analyzed that Tan Jincheng is quite satisfied with the power structure layout of FlashTech.

However, without Mr. Tan's direct control, FlashTech has been somewhat conservative in terms of expansion.

Although sales increased by more than 50%, the market share did not reach or exceed 10%, which is a failing grade for Tan Jincheng.

“We’ve gone public and have more money than we can spend, yet we haven’t expanded our market share. I’m very dissatisfied with that.”

The secondary market allows for bond issuance and secondary financing, and FlashTech's ratings are also excellent. Lin Yumin is still too conservative; how can he be afraid to spend money?

Gu Qingqing couldn't help but chuckle: "You're not satisfied with these data? You're quite difficult to please."

"Haha, we need to give them more responsibility. Wei Lai is still too weak, and Shan Chi can't afford to get into trouble."

(End of this chapter)