2003: Starting with Foreign Trade

Chapter 610 Brand Strategy Upgrade
"Holy crap, this car is pretty cool. To achieve this level of quality with a basic model is really impressive."

"Electric cars may not be very technologically advanced, but the Flashcar is quite something. This car is really beautiful."

The dealer conference was still ongoing, but the main focus had changed from Tan Jincheng to Lin Yumin, who was now on stage explaining Flash Motors' main models for 2009.

For a long time, Flash has focused on the low-end market while Windspeed has focused on the mid-to-high-end market, aiming to attack the market with all its products and services.

In recent years, low-end brands have mainly focused on large vehicles, but with the implementation of the new national standard, it has become difficult to control the cost of vehicles with such large frames.

Furthermore, as cities become more open, non-mainstream culture will gradually fade from the historical stage, and the number of "ghost fire" teenagers will gradually decrease.

Due to cost, portability, and policy considerations, Flashcar had to upgrade its brand. Today's launch event featured Flashcar's new products, which caused quite a stir when the car was pushed onto the booth and the PPT presentation began.

The most common low-end style in later generations, combined with various colors, had a very stunning visual effect in 2009. The first impression of the guests present was that it was beautiful.

Furthermore, this upgrade has also helped to establish the brand culture of FlashDrive + WindDrive: aesthetics, high cost-performance ratio, and the long battery life of lithium batteries. FlashDrive Technology has formed its own style.

To be honest, the previous model didn't fit well with Flash's mid-to-high-end brand image; it really seemed like it was made just for the money.

"Mr. Tan, how much does this car cost? I see it's a San Diego brand, it shouldn't be too expensive, right?"

Tan Jincheng has stepped down, but he hasn't left yet. He is currently sitting in the middle of the front row, next to a leader from the Beicang District Administration for Industry and Commerce and a representative of a first-tier supplier.

The person asking the questions is a representative from a Tier 1 supplier. They are very astute about the market, and if the price isn't too high, this product will definitely sell like hotcakes.

"It will still be priced at 1999, but the range of the lithium battery will be shorter. If the range is too long, the cost will be unsustainable."

It still comes with two models: lead-acid and lithium batteries. 1999 mentioned the lead-acid model, while the lithium battery model is more expensive. This is all a marketing tactic. In fact, after several years of development and various marketing tactics, the cost of the lithium battery model has dropped significantly.

The profit margin for 48V12 and 48V16 lead-acid batteries is very large. In addition, the 48V12 lithium battery model sells for 2199. With its strong industrial chain, Flash has been able to break even.

Once the vehicle sales break even, the remaining revenue comes from peripherals, battery replacements, and other services. Just like cars, electric vehicles also have a sales break-even point. Once you exceed that point, you'll make a fortune.

"This year, Flash is targeting the lower-tier market, aiming to boost sales and seize market share, so this pricing is definitely acceptable."

The dealer representative is knowledgeable. He can figure out Flash's strategy for this year by considering the dealer conference on brand upgrading, the terminal pricing, and what Mr. Tan said earlier about spending all the 12 billion yuan raised.

With a retail price of 2199 yuan for the lithium battery version, although the battery life is average, it is more than enough to meet commuting requirements. Who can beat this price?
FlashChe, the earliest company to conduct research on lithium batteries for two-wheeled electric vehicles, has a cost advantage that can only be matched by Yadi, which it has partnered with. Even giants like Xinri and Luyuan cannot compare.

Furthermore, FlashTech has its own financing platform. If all else fails, it can raise funds through private placement in the secondary market or issue bonds to invest other people's money with minimal costs. This is simply outclassing FlashTech.

"Haha, yes, our plan today is to target the lower-tier market and eliminate at least one-third, or even half, of the small brands in the market."

Tan Jincheng made no attempt to hide his ambition.

In the fiercely competitive electric bicycle market, if you don't take the initiative, you'll only be on the defensive. It seems that Shinra lost most of its market share in 2009 because of a poor strategy.

The low-end market was almost completely eroded by Hermès, making it impossible for them to catch up in the following years.

The strategy of targeting lower-tier markets appears to be aimed at small brands, but in reality, it targets the potential major player, Aima. The goal is to capture the lower-tier market before Aima gains momentum.

Last year, when Tan Jincheng was at his busiest, Shinra secured advertising resources during CCTV's prime-time slot in 09. It's not that Shinra didn't compete; it's that it wasn't planning to compete. This year, Shinra's strategy for television media is comprehensive coverage of all major satellite TV channels.

Another initiative involves painting walls in rural areas to promote the new Flash Electric Vehicle on a large scale.

"We named the upgraded FlashDrive 'Qingfeng' (清风), hoping to bring consumers a refreshing feeling," Lin Yumin continued his introduction.

"We offer two battery options for the Flash Breeze: lead-acid and lithium batteries, in a total of six colors. The highest price for the lead-acid battery is still 1999 yuan, while the lowest price for the lithium battery is 2199 yuan."

"No matter how we upgrade, FlashDrive will continue to serve our customers with high-performance, cost-effective products. This price is very competitive for our brand."

Compared to Tan Jincheng, Lin Yumin's language was still a bit stiff during his first speech, but he was already able to express various information clearly and completely.

Unfortunately, there's no live broadcast right now, but some undercover agents sent by smaller manufacturers are already sweating bullets. If the 1999 yuan lead-acid battery version still has some room for competition, then the 2199 yuan lithium battery version is truly crushing the competition in terms of cost.

The government is vigorously promoting lithium batteries. Consumers have become increasingly accepting of lithium batteries after market education. How can factories compete with this price?
There is simply no room for competition.

If you're 200 yuan less, you can use a lithium battery. Which would a consumer who only needs to commute choose?
Information spread quickly. The news that Tan Jincheng had announced at the dealer conference that he would spend all 12 billion yuan raised this year to build one or two new industrial bases and add 2000 new stores quickly reached the ears of some interested parties. When FlashTech went public, it released a series of announcements, including financial statements and future production capacity plans.

Currently, the three major production bases of Flash Motors are Beicang Industrial Base with a production capacity of 120 million vehicles, Jinmen Industrial Base with a production capacity of 100 million vehicles, and the first phase of Wangjiang Industrial Park with a production capacity of about 150 million vehicles (after the completion of the third phase in 2010, the production capacity will be 500 million vehicles).

In terms of the growth rate of electric bicycles, Flash's industry can only meet the production capacity before 2010, and expanding production capacity is an important step in Flash's development path.

FlashTech, which plans to increase its annual production capacity to 12 million vehicles by 2010, still has a production capacity gap of 3.8 million vehicles to fill, excluding the planned Xiangcheng Industrial Park.

These 380 million vehicles represent the space that various local governments are vying for. Since stepping down from his post, Tan Jincheng's private phone has been ringing non-stop, including calls from Xiangcheng, which has already secured a production capacity of 100 million vehicles.

They wanted more.

Although strictly speaking, this matter should now fall under Lin Yumin's jurisdiction, some local governments still prefer to involve Tan Jincheng in the investigation.

Because of its proximity to the meeting, Beicang was the first to know about the situation, and the leader in charge of commerce quickly sent people to the scene to intercept Tan Jincheng.

"Mr. Tan, the district wants to know if there's any supply available for FlashDrive's current production capacity shortfall?"

The people who came were very polite. While they were still explaining on stage, people in the audience started talking about investment business.

"Of course, our current production capacity in Beicang is only 120 million vehicles, which does not meet the headquarters' positioning. Even if the district doesn't mention it, I will still bring it up. However, this matter will have to wait until after the New Year. There is really no time before the New Year."

The representative sent was just a messenger; as long as he received a satisfactory reply, that was enough. As for when to hold further talks, that was not something he could decide.

As the year draws to a close, entrepreneurs like Tan Jincheng are incredibly busy. They simply don't have time to go home early like before, with numerous documents to sign and various meetings to attend.

These include company internal meetings, industry association meetings, and gatherings of CEOs. In addition, Tan Jincheng also holds the position of a district ZX committee member, which involves numerous social engagements towards the end of the year.

A few years ago, Tan Jincheng declined the title due to his age and the size of his company. But by 2008, he really had no choice but to accept it. These days, if your company grows big, you can't do without having some kind of title or identity.

It's just that he's too young; otherwise, a position at the city level or even the province level would be a certainty.

With two listed companies under his control, the largest electric vehicle company in Zhejiang Province, and a group involved in various industries including new energy, automobile manufacturing, clothing, and foreign trade, he is a municipal-level top ten youth and a CCTV annual economic figure. These titles alone are enough for him to manipulate provincial-level status.

However, Tan Jincheng was quite resistant to these identities, but he couldn't refuse them. He was indeed too young now, so he could just wait it out for another year.

"Okay, that's good. Then I can go back and give my report. Thank you, Mr. Tan. I won't bother you any longer."

People within the system are very perceptive. Tan Jincheng's current status is different from that of ordinary entrepreneurs. The fact that they can answer his questions very kindly and give him a clear answer is already a great favor.

"Okay, let's get back to each other after the New Year. You can contact me or Mr. Lin after the New Year."

With a production capacity gap of 380 million vehicles, Tan Jincheng actually had no plans to open a new factory in a new city. He wouldn't have even considered Xiangcheng if it weren't for the plan to acquire Changfeng. He could simply expand the existing three major industrial bases.

Beicang is alright, as its future industrial focus will definitely be on automobiles, but Tianjin's production capacity of 100 million vehicles is a bit small.

For a long time, the domestic two-wheeled electric vehicle market has been characterized by simple models in the north and luxurious models in the south. This pattern remained unchanged until 2023, all due to the transformation of the industry.

Tianjin is a representative city in the north. Relying on the original bicycle industry chain, most of the electric vehicles produced in Tianjin are simple models, characterized by being simple, lightweight, and cheap. The representative brands in the past were Aima and Xiaodao.

The newly commissioned Tianjin industrial base is dedicated to the production of the Flashbringer series.

In the south, the electric vehicles are mainly concentrated in the Yangtze River Delta region, represented by cities such as Wuxi, Taizhou, and Ningbo. Due to the maturity of the motorcycle industry chain, the electric vehicles produced in the Yangtze River Delta region are more like electric scooters.

The features are naturally more luxurious, and the price is also higher. The advantages and disadvantages of the two are also obvious: the expensive ones have higher profits but lower sales, while the cheap ones have good sales but poor profit margins.

The main focus of their expansion is on Tianjin, with a focus on simplified models.

However, this matter has not been finalized yet, and Tan Jincheng is not in a hurry. He needs to get the various places to take the initiative to contact him.

Don't underestimate the gap of 380 million vehicles in production capacity. If Tan Jincheng decides to put it all in a small county town, the number of people he can directly bring in would be enough to get promoted.

(End of this chapter)