2003: Starting with Foreign Trade

Chapter 172 Business Operation Models

What kind of brother is the best brother? It's someone who can do things for you that you can't do yourself, even if his intention is just to see you fail. That's a great help.

Zhang Xupeng was just like that; he wanted to see Tan Jincheng suffer a setback, little did he know how happy Tan Jincheng was inside. This idiot did a great job!
"Sister-in-law, I didn't know you were coming. Xiao Tan didn't tell me in advance either, so I only booked one room. Just make do with it. Rooms are in high demand during the Canton Fair. You won't be able to get a room on the same floor if you book at the last minute, which isn't very safe."

"Xiao Tan didn't tell you, did she? The security here is much worse than in Ningbo."

Gu Qingqing glared at Tan Jincheng, believing that he was behind this.

Tan Jincheng waved his hand helplessly and said to Zhang Xupeng, "Get lost and go do your thing."

"So how will you get to the Canton Fair later?"

"I can take a taxi, so get lost." Honestly, why are you still watching the show at a time like this? Shouldn't you keep your achievements hidden?

After driving Zhang Xupeng away, Tan Jincheng grinned and said to Gu Qingqing, "This really has nothing to do with me; he made the decision on his own."

Gu Qingqing rolled her eyes at Tan Jincheng but didn't say anything. She went to pack her things. Fortunately, Zhang Xupeng hadn't explained things clearly to Liu Wenbin because of the time constraints, which resulted in him booking a standard room.

If it were a double room, it would probably be even more awkward; I reckon Gu Qingqing would actually book another room.

After a short rest, Tan Jincheng took Gu Qingqing to the Canton Fair, which was one of the real purposes of the trip. After entering the venue, Gu Qingqing looked at the lively exhibition with curiosity.

"Wow, so many people! There are so many foreigners. I've never seen so many foreigners before."

Compared to the early days of the internet, the Canton Fair, known as "the world's foreign trade depends on China, and China's foreign trade depends on the government," was a huge shock for individuals and companies exhibiting for the first time, as people of all skin colors from all over the world gathered there.

For foreign trade professionals in this era, this is where dreams begin. The Pazhou Pavilion has been put into use this year, while the Liushui Pavilion will be gradually phased out. Compared with last year, this year's Autumn Canton Fair has undergone significant changes.

The number of Middle Eastern tycoons attending the exhibition decreased significantly due to Ramadan, but the number of European customers increased considerably. The euro remained very strong during this period, making it a good choice to earn either US dollars or euros.

In 2005, 1 euro could be exchanged for approximately 10.19 yuan. Jinpeng and Jinyi's main customer base was primarily located in Europe and America. During this period, the key to success in foreign trade was to secure strong relationships with European and American clients.

In fact, during this period, import business was easier than export business. In the early 2000s, there was no concept of supporting domestic products. The ideas of the last century still influenced the Chinese people today. In addition, domestic products were full of counterfeits and substandard quality. At that time, imported products were more popular.

"How do they all take orders?" Gu Qingqing asked curiously.

"It's mainly about communication. When a customer comes to your booth and asks about your products, you have to seize the opportunity and be as sincere as possible. Describe what your products look like without being too exaggerated."

"Oh, it's like when we go to a store to pick out clothes?"

"Yes, you can understand it that way. For example, with women's clothing, you need to have a good eye and create styles that are attractive."

"It sounds simple, but it must be difficult to do, right?"

"That's true. It's just that because of the large shipment volume, many companies can get a share of the profits. But once the market reaches a certain size, things won't be so easy."

This year is a prime example. The environment is complex, and reckless and disorderly expansion could very well lead to failure, especially in the apparel industry. Due to seasonality, clothing expires very quickly, and the pressure of inventory can easily overwhelm a factory.

This is why so many contract manufacturers don't directly engage in foreign trade. A strategic mistake can lead to a very passive situation, which is also why there are so many leftover export goods being cleared out and dumped in rural markets in recent years.

Jinpeng Trading also has some leftover stock in each batch of goods, but these are all well absorbed by Taobao stores. These days, people who dare to go online are either looking for something new or have a certain economic means.

Those who dare to shop online are the cream of the crop. As long as the prices aren't too outrageous, they're really willing to try it. In those special times, some seemingly insignificant places could actually be quite profitable.

In some villages and towns in northern China, there are large markets several times a month where people buy leftover shoes and clothing from export markets. If the quantity is large, a pair of shoes can be bought for just a few yuan and sold for around thirty yuan. After deducting stall fees, labor costs, and fuel costs, almost all the profit is pure profit. Earning 20 yuan per item is no problem. This is a relatively legitimate way to make money by taking advantage of information asymmetry. There are also some shady methods. For example, Tan Jincheng heard of people using magnets to collect iron filings along the Yellow River, a practice that continued until it was banned by the government in 2008, which shows how profitable it was.

As they walked slowly, Tan Jincheng explained the ins and outs of each booth to Gu Qingqing, while also sharing some interesting anecdotes he had heard. Before long, they arrived at the booth of Jinyi Industry.

"Boss, what brings you here? Why didn't you tell me beforehand so I could pick you up from the airport?"

“I came to Guangzhou for some other business, and since I was already here, I thought I might as well come and visit. This is Gu Qingqing, my girlfriend.”

"Oh, hello boss lady."

She has a sweet tongue.
The speaker's name is Qin Junchao. He is the leader of Jinyi Industrial's delegation to this Canton Fair and also the head of Jinyi Industrial's business department. In fact, he is Lin Yumin's apprentice. A few years ago, he also worked in the petrochemical sales department, but was later fired for standing up for someone and getting into a fight.

After leaving, he could only work in some small and medium-sized private enterprises, which led to his less-than-ideal situation in recent years. Before setting up the Flashmarket Department, Lin Yumin and Wu Zhenping had worked at Jinyi Industrial for a period of time. Qin Junchao was recommended by Lin Yumin at that time.

Being impulsive and suffering losses early in life isn't necessarily a bad thing. Little Ma got slapped early on because of Q coins, but he still lived a comfortable life afterward.

Qin Junchao was the same; after suffering a loss, his personality became much more stable. After evaluation, Tan Jincheng decided to keep him at Jinyi Industrial as a person in charge. Compared to the employees he recruited, this type of person was more trustworthy.

Currently, Tan Jincheng's main team is mainly composed of people from his hometown. Sun Yuming in the purchasing department is from Luzhou, Wu Zhenping is from Wuhu, Lin Yuzhong and Qin Junchao are both from Yicheng, and his assistant is Zhang Xupeng's cousin.

FlashTech is essentially an assembly plant with average technical content, so there aren't many operational difficulties. For some non-technical but crucial positions, the requirements for talent are not high; as long as they are obedient, loyal, and not too greedy, they can be hired.

In addition to these people, Tan Jincheng will also arrange some trusted relatives for some grassroots positions in the future. Family businesses are not advisable, but a factory must have its own confidants, especially for some grassroots positions.

It's not that relatives can't be used; capable, obedient, and hardworking relatives are definitely more beneficial to factory management than others, which is undeniable. In fact, many family businesses have developed very well precisely because of this.

Upon returning, the first person Tan Jincheng wanted to assign to the factory was Zhang Qingliang. Zhang Qingliang, who was in his thirties, was the most stable and hardworking among his uncles, and also the one who understood his place the best.

Throughout the renovation of several houses, Zhang Qingliang never interfered with Tan Jincheng's work from the perspective of an elder. He strictly followed the "homeowner's" wishes in terms of decoration, and he would not refute even unreasonable requests in front of Tan Jincheng.

In Tan Jincheng's view, it is very rare for an elder to work for a younger person while always being aware of his own status; few people can put aside their pride like that.

After the car accident, his leg was affected to some extent, and he might not be suitable to work as a construction worker in the future. This is a good opportunity to let him enter the new factory and start from the bottom. Maybe in the future he can become a team leader or even a workshop director.

In ancient times, there was a saying that "when one person attains enlightenment, even his chickens and dogs ascend to heaven." Although this saying no longer exists in modern times, people's values ​​have changed drastically in the past ten years or so, and everyone is now self-centered.

However, it's still worthwhile to lend a helping hand to a relative who is of good character and capable. Moreover, it would also benefit oneself, as placing them at the grassroots level would serve as a pair of eyes and ears for oneself.

"How's the customer traffic today?" Tan Jincheng asked.

Qin Junchao replied, "The customer traffic is alright. There are significantly more customers from Europe. I estimate that most of our customers will be concentrated in this region in the second half of the year. In addition, I think we can also do some development in this region."

He had previous experience attending the Canton Fair and knew some of the ins and outs of it.

"Yes, that's a good suggestion. We can focus more on European clients when receiving guests in the future," Tan Jincheng nodded.

These days, the euro is still very strong, and the eurozone is also showing signs of challenging the dollar, so Qin Junchao's suggestion is indeed sound.

As for customers in other regions, let's just leave it to fate. Although the wealthy are willing to pay and the profits are high, most of their products need to be customized, which is quite troublesome. If they skip the order, the losses will be even greater.

Furthermore, although India is also a major importer with a huge market potential, Tan Jincheng has shown no interest in this market so far and will not in the future. India is known for ripping off anyone.

(End of this chapter)