2003: Starting with Foreign Trade

Chapter 749 The Sharp-Edged Boss Tan
They certainly wouldn't hire five top-notch test drivers for five different cars; that would be putting the cart before the horse.

However, if there's something readily available, then of course I won't hesitate to use it.

"Mr. Lei, it's you!"

"Haha, Mr. Tan has recruited us, and so has Mr. Ding?"

"That's right. Every time I run into him, he pulls me over to do something. Mr. Lei, you'd better watch out."

"Haha, I've got it."

It's quite reasonable for Lei Jun to appear at the Guangzhou Auto Show. Xiaomi's startup speed is quite fast. The company was only officially established in April, and the first internal beta version of MIUI was launched in August.

On December 10th, the Android beta version of MiTalk was released, and the iOS version is expected to be released around Christmas.

Xiaomi's three most important products in its early stages were MIUI, MiTalk, and mobile phones. Apart from the mobile phones, the other two products have been completed within the year.

MiTalk was launched earlier than WX, and its user base reached 100 million shortly after its launch. However, Lei Jun also said that if Tencent enters the market within three months, MiTalk will have no advantage.

Hey, Tencent not only entered the market in just three months, but even the main interface and app icon are very similar to MiTalk, and even the icon colors are similar.

However, our boss Lei hasn't taken this to heart yet. What bothers him most right now is finding a suitable OEM for Xiaomi phones, which is why he had to come to Shenzhen in person to meet with Foxconn's executives.

Unlike in the previous life, because of Tan Jincheng's involvement, BYD did not come into Xiaomi's sights in the mobile phone battery sector. Instead, Lei Jun, who came to Shenzhen, approached Foxconn immediately.

However, in 2010, Xiaomi phones only existed on PowerPoint presentations, without even a specific sales target. Getting Foxconn to manufacture them was extremely difficult, and unsurprisingly, the first negotiation ended in failure.

Around this time, Lei Jun heard that Tan Jincheng in Shenzhen called him, inviting him to the Guangzhou Auto Show to relax and, incidentally, to work as a tester for him.

After thinking about it, it didn't seem like a bad thing, so Lei Jun agreed.

Although Lei Jun was chatting with the two of them with a smile, the fatigue in his eyes was still visible.

"What's wrong? Not going well?"

Tan Jincheng handed the other person a cup of coffee and asked with concern.

Leibusi took the coffee, nodded, and sighed, "Yeah, that's right. The other party isn't even interested in talking. We finally managed to meet, but there was no real progress."

As the world's leading mobile phone OEM manufacturer, Foxconn has the arrogance to challenge Xiaomi Technology.

With only about 10 days left in 2010, the domestic mobile phone shipments have been basically tallied. According to data from the Ministry of Industry and Information Technology, the total mobile phone sales for 2010 were approximately 2.66 million units.

With the rollout of 3G networks, smartphone shipments rose rapidly, reaching approximately 4000 million units throughout the year, an increase of 82% compared to 2009.

However, among these 4000 million smartphones, Android's market share is only 17.25%, or about 690 million units. In the entire mobile phone market, this is less than three percent of the market share.

The future market is one thing, but it's not surprising that Foxconn, which mainly manufactures for Apple, doesn't care about this small market share for the time being.

Apple has really gone on a killing spree. While the total smartphone market shipments were only 4000 million units, Apple sold 700 million units thanks to its unique iOS system and exquisite craftsmanship.

It won't officially go on sale until the end of September. Also, this data doesn't include Apple phones that entered the country through grey market channels such as Hong Kong and Japan. It's conservatively estimated that Apple had at least tens of millions of users in China in 2010.

After all, compared to the mainland China version which has been significantly stripped down, the Hong Kong and Japanese versions have many features that the mainland China version lacks, offering a better experience while being cheaper.

The overall market share of Android shipments is not as high as Apple's, and it's all been absorbed by Foxconn. Besides, with their reputation as the world's number one OEM, even if Android phones explode in popularity next year, they will still have no shortage of new OEM companies approaching them.

To put it bluntly, Foxconn has the confidence to reject Xiaomi because they don't lack customers.

"No rush, you can keep negotiating here. If you really can't reach an agreement, you can look into BYD, or I can help you contact Luxshare. It doesn't necessarily have to be Foxconn."

The mobile phone industry is a huge supply chain, and cooperation is normal. BYD is also a large contract manufacturer in terms of manufacturing technology. It's just unknown whether it will look down on Xiaomi like Foxconn did.

The birth of Xiaomi's first-generation phone was indeed met with discrimination, mainly because their production volume was too small. The first batch was less than 20 units, and the initial batch was only 10 units. Compared to large contract manufacturers like Foxconn and BYD, it was really not enough.

Lei Jun thought about it and agreed: "Okay, let's contact BYD again. If that doesn't work, you can help me look for Luxshare. But can Luxshare handle this?"

ByteDance holds a 5% stake in Luxshare Precision, making it one of Luxshare's top ten shareholders.

"No problem. Their boss came from Foxconn, so their manufacturing technology is definitely not an issue. They're also in Apple's supply chain. Luxshare is just a bit smaller now, so you can rest assured about the quality."

Luxshare Precision, which went public in September, has seen its stock price hit new highs since its listing, thanks to strong sales of Apple products. As of today, the stock closed at 60.30 yuan, with a market capitalization of 105 billion yuan.

Compared to the issue price of 28.8 yuan, it has increased by nearly 210%.

"Alright then, I'll contact Foxconn and BYD first. You can talk to Luxshare too. Also, keep an eye on the battery situation. Or, how about you come to Shenzhen with me after the press conference?"

As a major shareholder of Xiaomi and a member of the board of directors, Lei Jun couldn't just invest money without doing anything. When Lei Jun was ordering Tan Jincheng around, he was just as informal as ever.

“No problem. Even if you hadn’t mentioned it, I was going to Shenzhen anyway. Are you familiar with Mr. Wang from BYD? If not, I can take you with me. I need to meet him.”

The main reason was that the boatman heard he was in Guangzhou and called to ask if he was free to meet. Dizi had been involved in too many troubles this year, and now that the important figure Xia Bing was confirmed to be leaving next year, he didn't want to appear in public places like the Guangzhou Auto Show. Otherwise, they would have arranged to meet in Guangzhou.

In addition, Boatman was somewhat angry with Lao Ding, as the pig farm's car channel had been keeping a close eye on them since May.

"That's great. You can contact Mr. Wang, and if it's okay, I'll go with you to meet him."

He knows Mr. Wang, but they're not really that close. He also knows what's going on with BYD this year. What if he's annoyed and doesn't want to deal with him? Didn't you see they haven't made any moves at the Guangzhou Auto Show?

Old Ding found the combination in front of him quite interesting. They were more than ten years apart in age, one was into the internet industry and the other into cars, and yet they had partnered up to make mobile phones.

Still looking quite serious, Lao Ding was also a little curious: "How many phones does Xiaomi plan to produce in the first batch? Can you say that?"

Lei Jun looked at Tan Jincheng and laughed, "There's nothing we can't say. We planned to produce 10 units in the first batch, but Foxconn isn't willing to deal with us."

Old Ding nodded, "That's really true."

10 phones is indeed a lot for a new company like Xiaomi, but it's negligible in the context of the entire supply chain. It's really not worthwhile to open a dedicated production line for it.

The key issue is that we don't yet know his exact sales figures. If he can't sell them, it will be a losing proposition.

Speaking of the leading domestic mobile phone brand in 2010, it wasn't the so-called "ZTE, Huawei, Coolpad, and Lenovo" (中华酷联). At that time, ZTE, Huawei, Coolpad, and Lenovo were still obsessed with the contract phone market, backed by the three major operators, producing a lot of industrial waste every year, yet they were still able to live quite well.

The main models were feature phones, and any of their smartphones cost over 3000 yuan. On the contrary, counterfeit phones supported the smartphone market in 2010, and sold very well with an average price of less than 2000 yuan.

It's not Bird, which was once unstoppable in the feature phone market, nor is it Meizu from last year. Meizu, which did not release any new models this year, has seen a significant drop in popularity compared to last year.

The brand that spearheaded the development of domestic smartphones in 2010 may be unfamiliar to many: Tianyu.

This year, Tianyu released its first Android phone, the W606. As a budget phone, its performance is not as good as that of high-priced phones, but its biggest selling point is that it has 3G video calling function, which is missing in the Android system.

In summary, in the 2010 smartphone market, domestic brands could only do some low-end business, and there was almost no place for domestic brands in the market above 3000 yuan.

And most of them are just slackers.

This is similar to the effect of the earlier automotive industry chain.

"It's a bit little, but it's the maximum Xiaomi can do right now; sigh, starting a business is tough."

Lei Jun replied somewhat embarrassedly.

Of course, the main reason is a lack of confidence in sales volume. Xiaomi does not plan to go through offline channels, which can be said to have completely subverted the existing mobile phone production and sales model. No matter how ambitious it is, it cannot guarantee that it will be accepted by consumers before the actual sales figures are released.

In order to achieve instant success, Xiaomi squeezed the profit margin of its mobile phones to the extreme, which is one of the reasons why many component suppliers and contract manufacturers are unwilling to accept this.

In terms of profit margin, Xiaomi's profits are not as high as those of counterfeit brands.

"It's okay, I believe it will sell very well. Just let me know if you need any help."

Tan Jincheng couldn't say anything about how this thing would dominate the market as soon as it came out, and almost wipe out the entire counterfeit mobile phone industry, so he could only comfort him with this.

However, he wasn't exaggerating. Over the years, thanks to his massive investments and the use of Dexian Electronics as a springboard, Tan Jincheng has built up considerable connections in the mobile phone industry chain.

It's not about formally entering the mobile phone industry, but simply investing. They give you money and can also introduce you to some business opportunities. Anyone would be happy to do that.

"Thank you, Mr. Tan. By the way, which car would you like to test drive later?"

After exchanging pleasantries about mobile phones for a while, Lei Jun realized his purpose at that moment.

"Forget about the pickup truck. If Wei comes, Brother Ding, you can test drive the ES6. Alternatively, you can choose between the Yuechi A3 and the Aion S."

After pondering for a moment, Lei Jun said, "Then I'll try out your Aion S, what do you think?"

"No problem, I'll handle the Yuechi A3 myself."

No wonder he was among the first owners of the Tesla Model S and is now a big shot in the future car manufacturing industry; his interest in electric vehicles is indeed considerable. At the start of the press conference, thanks to the pre-launch hype, the crowd at the Weilai booth was no less than that at the major manufacturers' booths.

Most importantly, the car models at the Weilai booth at every exhibition are very beautiful. Unlike the car models found by other manufacturers, Weilai Auto's car models have a natural, fresh look, without heavy makeup, which makes them look very comfortable.

Furthermore, the fact that Wei Lai provides meals every year has become a tradition, and now other manufacturers are following suit, so you no longer have to go to the auto show on an empty stomach.

This alone has left a very good impression on car enthusiasts.

I have to show my support for Wei Lai's new car launch.

"By the way, when are you planning to move next year?"

The Xiaomi team is expanding rapidly, and the several hundred square meters of office space in Yingu Building is no longer enough. They have decided to move to Juanshi Tiandi Building in Wangjing next year.

"Would Mr. Tan and Mr. Ding like to attend on January 8th?"

"I'll see when the time comes; I'll definitely be there if I have the time."

Boss Ding and Tan Jincheng both laughed it off. Boss Ding didn't care, but Tan Jincheng was thinking about whether he should take this opportunity to make a trip to the capital.
The future big boss is currently holed up in a residential house.

Pickup trucks don't need test drivers. The host explains from above while three bigwigs sit in the center of the audience listening. This Weilai Auto launch event has invited many car reviewers, reporters, and Weilai car owners from all walks of life.

Of course, this also includes pickup truck owners. The newly designed Yangzi pickup trucks have a design style that is similar to Chevrolet for the low-to-mid-range models, while the high-end models are more like Ford.

The interior and driving experience have been greatly improved. For the same size, the rear cargo area has been reduced, while the driver's cab and rear seats have been enlarged, making them no longer so cramped.

It's fair to say that apart from the Yangzi brand, everything else has nothing to do with the Yangzi pickup trucks of the past.

After the explanation, Lei Jun and Lao Ding's eyelids twitched: "You've turned a pickup truck into an SUV with cargo-carrying capabilities?"

They're all businessmen, and all men. They know all too well what the current pickup trucks are like—all they care about is performance, with no regard for the driving experience.

In terms of cost-effectiveness, buying a pickup truck is not as good as buying a Wuling Sunshine. It can carry less cargo than the Wuling Sunshine, and it is more expensive. Even maintenance is much more expensive. The fact that pickup trucks are too niche is not just due to policy reasons.

If Weilai Auto can elevate the driving experience of pickup trucks to the level of SUVs, it will revolutionize this niche market.

"Of course, the popularity of pickup trucks in the US is largely due to their geographical factors, but more importantly, their pickup trucks are easy to drive. If we made pickup trucks as easy to drive as they are now, the market would definitely not be what it is today."

In 2010, thanks to the strong sales of Great Wall Wingle series and the efforts of Jiangling pickup trucks, Great Wall's market share expanded from 0.22% to 2.1%. It is almost certain that Great Wall pickup trucks will sell more than 10 units this year.

Despite a surge in sales, Great Wall pickups, which have topped the sales charts for 13 consecutive years, remain the market leader. However, as their market share expands, market concentration has actually decreased, with Great Wall pickups' market share dropping from 30% to around 27%.

Yangzi Pickup has also performed very well this year, with its market share rising to 7.8%. Its willingness to launch new products is also based on the reason for its increased market share.

"You little rascal, you've got some serious ambitions. You're trying to take down joint ventures and kick independent companies."

Everyone knows that Yangzi Pickup's revolutionary redesign is clearly aimed at grabbing a piece of the pie from leading brands like Great Wall and Jiangling.

Tan Jincheng waved his hand: "No, no, I'm just doing what I want to do."

"It's a pity. You should have arranged a test drive for this pickup truck. This kind of driving and explaining is not very interesting. Besides, we are not celebrities, so our influence is limited."

As expected of a marketing genius, Lei Jun saw the flaws in this press conference at a glance.

The celebrity effect in 2010 was more reflected in celebrities; ordinary people idolized celebrities far more than ordinary people idolized famous people.

"Sigh, it's just bad timing. I don't really want to look for celebrities. I was planning to look for Yi Jianlian, but unfortunately he can't come back for the Christmas games."

From Tan Jincheng's perspective, he looks down on some of the most influential celebrities nowadays, and they all have some dark history.

People like Da Zui and Miss Zhao have unparalleled influence, but would he dare to invite them?

He could invite Fatty Zhou over, but that guy is too expensive, it's unnecessary.

Previously, Wei had come to the marketing department to contact Yi Jianlian's team, because of Sina Sports editor Guda, Yi Jianlian, who currently plays for the Wizards, has a bad reputation online.

No matter how much people criticize Yi Jianlian online, the people of Guangdong Province are proud of him. After Yao Ming retired, Yi Jianlian became the leading figure in Chinese basketball, and his influence has lasted for more than a decade.

"Your angle is quite tricky, haha."

Old Ding, being a semi-media professional himself, couldn't help but smile after figuring out the key point.

Yes, if we could invite Yi Jianlian to the Guangzhou Auto Show, the attention on Weilai Auto would instantly rise to a new level, and it would also link Weilai Auto with sports.

Just imagine, when a giant man over two meters tall steps out of a Yuechi A3, the sense of class is truly different.

"Hmm, that's a good idea—a city SUV paired with a sporty concept. So, Mr. Tan, what kind of spokesperson do you think would be suitable for Xiaomi 1?"

Having a spokesperson seems to be a must for mobile phones, but so far Xiaomi has not yet decided on a spokesperson. The company has discussed many options, but none of them seem quite right.

"You, why don't you do it yourself?"

Lei Jun was taken aback: "Me? Will this work?"

"What's wrong with that? Anyway, Xiaomi phones are targeted at netizens, and everyone knows you. If you work a little harder, you can save some money."

You're a natural comedian and one of the most approachable entrepreneurs, so what's wrong with you?

Of course, the most important thing is saving money. With inflation, hiring a celebrity costs a lot of money. I am, after all, one of Xiaomi's shareholders, so I should save as much as I can.

The new Yangzi pickup truck has many highlights, but the dry presentation lacked a bit of entertainment value, and the audience, after the initial novelty wore off, found it somewhat boring.

However, the main event was about to begin. A staff member came to Tan Jincheng's side and whispered a few words to him, and Tan Jincheng knew it was time for him to make his appearance.

"Please have a seat for a moment, I'll go backstage. After that, it'll be Mr. Lei's turn."

The hype is coming in waves. The pickup truck was just a warm-up, and now it's time for the Yuechi A3. The all-new Yuechi A3 is based on white and adopts a space-age futuristic design language.

The center grille has been upgraded to a shield design, and in addition to white, it is also available in traditional black and a new gold version.

The interior features a circular smart cockpit design with a gray-black color scheme and a unique "A" logo on the seatbacks, making it more recognizable and exclusive.

The powertrain and chassis tuning have been significantly improved compared to the Yuechi A1. It still offers two versions, 1.5T and 2.0T, with a total of six models. As for the size, it has also been increased compared to the Yuechi A1.

4620*1846*1690的车身尺寸，2725的轴距，百公里油耗预计在7.1至7.8之间。

"Holy crap, isn't that Tan Jincheng, the boss from Weilai? Why is he driving out? What's going on?"

When Tan Jincheng drove out in a white Yuechi A3, there was a stir in the audience. They hadn't been told there would be this segment beforehand. This young boss really knows how to play tricks.

"Haha, this is quite effective. Xiao Tan's marketing skills are pretty good."

Old Ding and Old Lei exchanged a smile as they sensed the previously subdued atmosphere in the stage brighten up.

Just as Lei Jun was unaware of his comedic talent, Tan Jincheng was also only vaguely aware of his own influence. Among young people, Tan Jincheng's influence is also considerable.

His questionable actions during the Toyota recall scandal this year, in particular, garnered him a considerable following.

This is about everyday life, and it's something that's most popular on the internet.

"Hello everyone, as you probably already know, this is the Yuechi A3, a new model recently released by Weilai Auto. Next, I will explain the features of this new model to you."

"Please forgive me if I say anything wrong, after all, I'm not a professional."

A burst of laughter came from below, but Tan Jincheng didn't mind and replied with a smile, "However, I'm only a novice. My experience may be closer to that of consumers, and I hope it can provide some help in choosing a car model."

The owner of a car company, a billionaire, personally explaining a car model was definitely a novelty in 2010.

Tan Jincheng is eloquent, and he had also memorized the script. Although he was not entirely clear on some of the parameters, he would ask the host to explain them for him in the middle of the speech.

They would occasionally make some jokes.

"You know what, it works pretty well."

Old Ding pointed to the crowd sitting in the audience and those gathered around the exhibition area who couldn't find seats, and many people even took out their phones to film videos.

"you do not say."

Lei Jun looked at the bustling crowd, lost in thought.

(End of this chapter)