2003: Starting with Foreign Trade

Chapter 762 The Butterfly Effect
"Mr. Tan, welcome home for the Chinese New Year."

"Hey, Uncle, what are you doing? It's really not that serious."

The man who arrived was Nie Yunlai, Zhang Xupeng's father-in-law. He hadn't been home for the Spring Festival for several years. As soon as Tan Jincheng entered the town, he saw several cars parked at the entrance.

The county people, led by Nie Yunlai, came to pick him up, which was somewhat unexpected.

"Haha, it was inconvenient for Secretary Tao to come over, and I was going home anyway, so he sent me instead. I hope President Tan won't mind?"

Tan Jincheng called him uncle, but he dared not truly consider himself an uncle. As the father-in-law of Tan Jincheng's good brother, he knew perfectly well how this marriage was arranged and how he rose to power.

To be honest, he didn't have much ambition for his future. He had no background and didn't consider himself particularly capable. Before he met Tan Jincheng, his only thought was to get a promotion by half a grade when he retired.

He is already 55 years old this year, and he is quite satisfied with his current treatment. There is only a change of leadership every 13 years, and if he is lucky, he may be promoted a little more and his retirement benefits will be even better.

He only has one daughter, who is now married well and has her own career. He really has nothing more to covet.

All of this is because I met this young man in front of me; it all feels like a dream.

But to be honest, it was Secretary Tao who really reaped the rewards. The others just got a little scrap. He brought two Fortune 500 private enterprises to a poor county, boosting the county's economy. No one can take credit for that.

"No, no, I'm just going home for the New Year. There's no need to make such a big fuss. Uncle, you should be more natural. If Xu Peng sees this, he'll probably scold me."

Zhang Xupeng also went back to his hometown for the Spring Festival. Their hometowns are not in the same county, but he will come to pay his respects on the second day of the Lunar New Year.

Speaking of his son-in-law, Nie Yunlai grinned: "Haha, how are they? I haven't seen them in a long time."

Compared to Weilai Group, Nie Yunlai is definitely more focused on Shanchi Group. Over the past year, Shanchi Group has undergone significant changes under Zhang Xupeng's actual management.

Wangjiang Industrial Park was inevitably affected by the group company's transformation, and Zhang Xupeng had visited it several times.

"That's great! He'll be here in a few days, then we'll be able to see each other. How about we go back and talk?"

"Oh, right, right, look at me, it's not appropriate to chat on the roadside, let's go home first."

Three other people came with Nie Yunlai; they were all members of their office. With the arrival of Shanchi and Shenzhou, other industries around Wangjiang, such as the garment processing industry chain, electric vehicle parts manufacturing, and sales industry chain, have also been boosted.

In addition, there has been a significant increase in real estate construction and housing prices in the county town. Housing prices in the core area of ​​Wangjiang County are now comparable to those in Yicheng City, making it extremely sought after.

Nie Yunlai works at the Investment Promotion Bureau, where he is responsible for attracting investment. As long as Shanchi and Shenzhou don't move away, his job will be fine.

In addition, he had little desire for promotion and delegated a lot of authority. He was well-liked at work, and many people who wanted to advance in their careers were eager to follow him when he was assigned to pick up Tan Jincheng.

Nie Yunlai knew that his son-in-law, this good brother, was usually quite low-key and didn't like to make too much of a show; otherwise, his entire unit would have been mobilized.

In addition to its electric vehicle industrial park, Flash Motors also has a garment industrial park in Wangjiang. The electric vehicle industrial park, which was originally planned to have an annual production capacity of 500 million vehicles, has been fully delivered after several years of construction.

Tao Qinian was overjoyed. Boss Tan really kept his word, and all the production was completed within his term of office.

However, in 2011, FlashTech was facing severe overcapacity. Mr. Tan only knew that the number of two-wheeled electric vehicles was increasing and that national standards had an impact on the industry, but he was not clear about the details that happened in between.

Like the automotive industry, the previously rapidly growing two-wheeled vehicle industry also stagnated in 2011.

According to statistics, the total sales of two-wheeled electric vehicles in 2011 were about 2200 million units, which was the same as the previous year. It seems not bad, but in reality, the two-wheeled electric vehicle companies faced much more difficulties than the previous year.

Battery shortages, price hikes, and a series of industry crackdowns have led to a significant drop in sales for many brands. In 2010, there were three car companies with production and sales exceeding 200 million units, but by 2011, only Shanchi remained.

Yadi sold over 180 million vehicles this year, Aima sold over 150 million vehicles, and there were very few other companies that sold over 100 million vehicles. The market share seems to have fallen back into the fragmented situation of before.

The total production capacity of the Flying Spur in 2011 was 750 million vehicles, which was only one-third of the sales volume of 240.17 million vehicles.

In other words, listed companies, in addition to government subsidies, have a much stronger ability to raise funds than other companies in the market. Furthermore, these investments are made year by year, rather than concentrated in one year.

In addition, the sales targets set by Flash Motors each year are not exaggerated. Otherwise, given the comparison between production capacity and sales volume, Flash Motors might become the next Dizi in the two-wheeled electric vehicle industry.

Sales were passable, but relative to overall production capacity, it was a serious waste.

The lack of new growth points is always a pain point for enterprises. Zhang Xupeng did not expect to encounter such a thorny issue in just one calendar year after officially taking over the management of Flash Group.

After discussing with Lin Yumin and others, Zhang Xupeng and the management of FlashTech decided to continue to increase the export business of electric vehicles starting in 2012.

Besides Southeast Asia and South America, the European and American markets are the key areas for future development.

Tan Jincheng was the last of the five members of his family to arrive home. He arrived on the 28th day of the twelfth lunar month, which was the 29th day of the twelfth lunar month this year.

After Nie Yunlai and the staff of the Investment Promotion Bureau took Tan Jincheng to his hometown, they did not stay for long. They simply chatted about the county's economic situation in recent years and conveyed Tao Qinian's idea of ​​meeting him after the Spring Festival.

Thanks to the entry and continuous investment of two large listed companies, coupled with the surrounding industrial chains they have driven, the per capita income of the county has increased significantly. By 2011, the county had basically determined that it could get rid of the poverty-stricken county status in 2012.

With GDP exceeding 10 billion yuan, accounting for 10% of the city's GDP, and 2013 being a year of leadership transition, this was truly a joyous occasion for the people of the county.

The title of "impoverished county" has various advantages, but if the economy can be developed, who would want to keep bearing this title? After all, most people have some emotional attachment to this land.

"We, the wanderers, are proud that our hometown is developing well; this is a good thing."

Tan Jincheng sighed, "This is the butterfly effect. In my previous life, I really didn't know how much the county's GDP was, but the title of 'impoverished county' was never removed."

The reason it was ultimately removed was simply because the title no longer existed.

Is this a butterfly effect I brought upon myself?

In fact, it's not just Wangjiang; Beicang is the same. Since the Yuechi A1 became a big seller, Beicang District's GDP has grown rapidly, with the GDP in 2010 increasing by as much as 37% compared to 2009.

This year's growth rate should also be above 10%. The three main groups of the Flash Group account for almost one-third of the region's GDP, and their role is becoming increasingly significant.

"Secretary Tao hopes to have a chat with you, Mr. Tan, after the Spring Festival, and also to express his gratitude for your unwavering support for the development of our hometown."

"Secretary Tao, you're too kind. This is what we should do. I should pay you a visit."

Tan Jincheng can now speak Mandarin fluently and speaks it off the cuff.

He didn't know Tao Qinian's thoughts. There would be a leadership change in 13, but he was sure he would advance further no matter what. He did need to meet with Tao Qinian to discuss the follow-up arrangements. This was something he had to handle himself; Zhang Xupeng was a bit lacking.

As the largest electric vehicle production base of FlashTech in China, two-wheeled electric vehicles belong to the traditional manufacturing industry, which has a relatively low technological content.

Beicang will definitely become the core base for automobiles in the future, and the Wangjiang Industrial Park, which currently has the largest production capacity, will play a very important role, bearing the heavy responsibility of industrial transfer.

In addition, Wangjiang Industrial Park is the most recently built and has the most advanced equipment. With the change of leadership, Tan Jincheng also hopes to ensure the stability of the company.

"Alright, then we won't disturb Mr. Tan's rest any longer. We'll come to visit again after the New Year."

Having received a positive response, Nie Yunlai considered his mission accomplished. As Zhang Xupeng's father-in-law, Nie Yunlai knew Tan Jincheng a little better than others, and he received this benefit.

This is not someone everyone wants to meet these days. Just look at the deals he's discussing – they're worth hundreds of millions of dollars. Before the Lunar New Year, it was revealed that he acquired 28% of AutoNavi's shares, which is a whopping 16 billion yuan.

He didn't even personally negotiate; he simply sent a branch manager to handle it.

If it weren't for special connections, it would be quite an achievement for him, as the head of the county's investment promotion bureau, to be able to easily arrange a meeting with Lin Yumin.

The son-in-law once revealed that this person is usually quite easygoing at home and doesn't mind talking about work, but there must be a sense of boundaries. If the conversation ends and the person lingers, it will backfire.

Come to think of it, someone who can build a business that's famous nationwide, no matter how easygoing they seem, can't possibly be completely without a temper.

"Okay, Uncle, if you have time on the second day of the Lunar New Year, please come to our house with Xu Peng for dinner."

Before the holiday, Zhang Xupeng reported to him on the recent situation of Flash Group and also mentioned that Flash Technology would increase its export efforts next year to boost production capacity. At that time, he was too busy to talk to him in detail.

Regarding exports, Tan Jincheng had some ideas he wanted to discuss with him in detail.

When Nie Yunlai said he wanted to leave, he didn't try to stop him.

"Haha, I might be busy on the second night of the Lunar New Year. I have guests at home. Let Xupeng come over."

Nie Yunlai laughed. Inviting him to dinner on the second day of the Lunar New Year was just a polite remark; if he actually came, he would be being disrespectful.

Tan Jincheng nodded, said nothing more, escorted the four to the courtyard gate, and then turned back.

Having not returned for several years, Tan Jincheng stood in the courtyard in a daze, carefully examining the building he had funded.

The gray-white exterior walls and traditional Hui-style architecture evoke a feeling that is both strange and familiar.

"What are you doing standing in the yard? Come inside. Don't catch a cold in these clothes."

The speaker was Tan Jincheng's second aunt, or second wife, that's how they call her in their family. The eldest son's family hadn't been home for the New Year for several years, and this year they were planning to celebrate the New Year together as a whole family.

As the most important figure in the family, although they knew Tan Jincheng would definitely come home for the New Year and had even sent his wife and son back in advance, everyone was still a little uneasy because he hadn't returned yet. Their nephew was so busy these days; who knew if something might have delayed him?

It wasn't until several cars entered the village today that everyone finally felt relieved. Now, the family is busily preparing dinner.

Tan Jincheng laughed and replied, "Haha, it's been so many years since I've been back. Look at all the changes at home. Where's Jin'en?"

My second uncle's son is sixteen years old this year. In his previous life, this kid was hard to come by and was spoiled by his family. Fortunately, his personality didn't go astray. He just didn't like studying and barely finished junior high school before dropping out.

Like all rural children in Anhui Province, their coming-of-age ceremony meant that after graduation, they would receive a train ticket to work in Jiangsu, Zhejiang, or Shanghai.

This kid also worked in the clothing industry in his previous life, and he was lucky enough to catch a good time and did quite well. But in this life, he has to go to university no matter what.

The Tan family of the previous life is not on the same level as the Tan family of this life. Tan Jincheng has to take care of these cousins ​​no matter what, and those who can succeed can also help him.

Even if you can't become a talent, having a degree makes you look better on the surface.

The Tan family is now implicitly centered around Tan Jincheng. No one will object to what he says, especially since it's good for their son. The older generation of uncles are naturally happy about it.

"I went to a classmate's house to play, and I'll definitely be back before dinner."

"Oh, how's his studies going? Is the tutor I hired for him up to par?"

This kid is really bad at studying. He really can't get into high school. His family paid for it. After hearing his father talk about it, Tan Jincheng asked Wu Zhenping to hire a tutor for him in the county.

It's unbelievable! Tan Jincheng's cousins, including himself and Tan Jinyue, all have excellent academic performance. The two from his third uncle's family are both from 211/985 universities, but the one from his second uncle's family just can't get into his studies.

"Haha, I don't know either, but I heard from the teacher that his grades have improved a lot, so it seems to be effective."

Second Aunt was overjoyed and didn't notice that Tan Jincheng's tone was like that of an elder.

"As long as it works, that's fine. Second Aunt, you go ahead with your work, I'll go in and tidy up first."

Then the second aunt remembered that she had just said that her nephew was dressed too lightly: "You should go inside quickly. Don't stand in the yard wearing so little."

When wealthy people appear in front of the camera, even in the dead of winter, they don't bundle up in down jackets like ordinary people, as if they're not afraid of the cold. That's because they don't need to.

Tan Jincheng, who works in a constant-temperature environment year-round, is no exception.

Although the house in his hometown is a Hui-style building, Tan Jincheng designed it from the beginning according to the villas he had seen in his previous life, focusing on comfort, with underfloor heating, which is rare in rural southern China, and moisture-proof features.

The main focus is on comfort.

"Is the kid settling back in?"

In the living room, Gu Qingqing was taking care of her son, and next to her was Tan Jinyue, who was already seven years old. The aunt was helping her sister-in-law take care of her little nephew. There were also many other children in the room, making a lot of noise.

Seven-year-old Tan Jinyue is not as clingy to her older brother anymore and has become much more sensible, but she is still lively and cute, and very beautiful.

"He's not having any trouble adjusting. There are lots of kids here, and he seems quite happy."

They've only been back for two days.

"Ha, once this kid starts school, we'll send him back every summer vacation."

Although he had been a father in his previous life, Tan Jincheng didn't have much experience in raising children. Anyway, he spent most of his winter and summer vacations in the countryside when he was a child, so sending this kid back to experience it wouldn't be a problem.

Even though our family is better off now, my grandparents still do what they always do, keeping themselves busy with farming and growing vegetables. They can't stay idle.

"Then why didn't you throw Jin Yue back?"

Gu Qingqing was a little unhappy when she heard this, not because she disliked the countryside, but because she was reluctant to leave.

Tan Jinyue hadn't expected her to be involved. Upon hearing this, she glared at her brother and sister-in-law with some displeasure, and then pinched her nephew's cheek.

"Haha, that's different. Alright, let Jin Yue look after this kid for a while, and you help me tidy up."

On New Year's Eve in 2011, the three Tan brothers gathered together for dinner, and the younger generation was also having a good time. In addition, Tan Jincheng had a son, making it a proper four-generation family.

During this Spring Festival, the smiles on Grandpa and Grandma's faces never stopped.

On the second day of the Lunar New Year, Zhang Xupeng, who accompanied Nie Ruoxi to visit her parents' home for the New Year, had lunch at Nie Yunlai's house and then wandered over to Tan Jincheng's house. Nie Ruoxi came with him, and Nie Yunlai wisely did not follow.

"You little rascal, you finally decided to come back, huh?"

Zhang Xupeng had a nonchalant attitude, and what he said was true; he was more familiar with this house than Tan Jincheng was, having already been there several times back in 2011.

When he comes here on business trips, he always visits Tan Jincheng's grandparents. After all, he lived here a lot when he was a child, and he should come and see them even if it weren't for his good friend.

Tan Jincheng ignored him, cracking sunflower seeds in his mouth, and pointed to the sofa.

In Yicheng, people visit relatives in the morning, but not after lunch. However, visiting other people's homes is fine, and Zhang Xupeng and his wife also came empty-handed according to custom.

"Why did you call me over? I have to go back tomorrow."

Zhang Xupeng sat down and grabbed a handful of sunflower seeds, just like Tan Jincheng, and started cracking them open with his legs crossed.

He's a big shot now, and going back to his hometown isn't any easier than Tan Jincheng's. He said he was accompanying his wife to her parents' home on the second day of the Lunar New Year, but it was just a quick break from his busy schedule.

Nie Ruoxi glared at him: "What's your hurry? You haven't even warmed your seat yet."

These two are really strange. They are perfectly normal whether they are outside or at home, but whenever they sit together, they act like children, and playing around is a common occurrence.

"Exactly, I haven't even had a chance to sit down properly yet."

Tan Jincheng responded, but today was a serious matter, and Tao Qinian would be coming over soon, so it wasn't appropriate to joke around.

"Let's go to the study to talk. Ruoxi, you can play here for a while and stay for dinner tonight."

"Okay, you guys get back to work."

The two-wheeled electric vehicle business encountered considerable trouble in 2011. Although in the long run, an annual production capacity of 750 million vehicles was simply not enough, Tan Jincheng didn't know how many years it would take for the average annual sales to be only two to three million vehicles.

The overall market share of leading brands has risen to 32%, but this year's market share is more dispersed than last year's, and Flash's 10.92% market share is really not safe.

In any industry, production and sales will eventually concentrate on the top players; this is inevitable. Currently, Flashcore is able to occupy the largest market share due to its financial advantage, but this may not be the case once companies like Yaaixin go public.

Based on data analysis, it is predicted that in 10 years, the top 10 producers and sellers of two-wheeled electric vehicles should account for more than 70% of the total market sales.

The winner-takes-all principle applies to all industries. The winner can be a single company or a group of companies. Flash's current market share of around 10% is clearly not secure enough. To maintain its position in the top tier in the long term, it needs to increase its market share to at least 15%.

As far as I can remember, the final market share of Yadi in its previous life seemed to be around 30%, right?

So 30% is Flash's ultimate goal.

"It's uncertain when the domestic market will recover and grow. Your strategy of increasing export volume is correct, but I have a slightly different view on the North American market."

"Tell me."

Zhang Xupeng brewed a cup of tea for each of them, and when they started talking about serious matters, he became very earnest.

"From what I understand, the North American market doesn't seem to be very interested in the two-wheeled electric vehicles that we have in China, but they do like electric bicycles, balance bikes, and ATVs."

"If you want to enter the North American market, you should do more market research and try to develop these categories."

"Oh, right, there are also three-wheeled electric vehicles and electric cars for the elderly. You can talk to Zhao Yixin about electric cars for the elderly."

Two-wheeled electric vehicles seem to be popular in Canada, but Americans don't seem to care much about them. However, electric motorcycles seem to be a different story. Anyway, anything that looks fun and exciting seems to be of great interest to the American public.

It would be even better if some practical functions were added.

As for electric bicycles, Tan Jincheng knew about them. In his previous life, he had seen a company that was little known in China, but it did very well in exporting electric bicycles.

Investing in research and development in this area represents a significant market opportunity.

In fact, there are many little-known companies in Ningbo that are doing very well in niche markets. Since Flash Technology is deeply involved in the two-wheeled vehicle industry, the global market is definitely its ultimate goal.

What's the point of just doing business in Southeast Asia? You won't make much money anyway. If you want to make money, you have to make US dollars.

Most importantly, no matter how big you become in the US, it's still just a purely civilian industry, and changes in the global landscape won't affect your company's safety.

As for imposing tariffs, haha, once I've taken over your market, can't I learn from DJI?
Consumers all over the world are the same: if there are cheap and good products, why not use them?
(End of this chapter)