Rebirth 99 to become a car giant
Chapter 653: Second in the world, the direction of Nanshan Group’s efforts
2010 is the Year of the Tiger.
This is an important milestone year for China's economy.
February 14th is Valentine’s Day.
Japan officially announced its GDP data for 2010, which was US$5,474.2 billion.
That’s almost $500 billion less than China.
At this point, China's GDP has completely surpassed Japan's and has become the second largest economy in the world.
No other country will be able to catch up to this position in the future.
Last year, China's GDP growth reached double digits, which is definitely a very exaggerated figure.
Although it will be difficult to replicate this achievement in the next few years, everyone is still relatively optimistic about the future.
These things don't seem to have much to do with individuals and companies.
In fact, they are also closely related.
In particular, Nanshan Group is now growing stronger. Not to mention its own impact on GDP, the impact of changes in the overall economy on Nanshan Group cannot be ignored.
There are also people within Nanshan Group who specialize in studying the impact of macroeconomic policies on the development of various business divisions of the group.
For example, this time China's GDP became the second in the world, and it quickly hit the screens of all platforms.
It is well-deserved number one on the Weibo hot search list.
"Mr. Cao, I think the next few years will be a good opportunity to vigorously enter the international market."
"It is also time to start considering overseas deployment."
Zeng Tingting wanted to have a good discussion with Cao Yang on the future business development directions of each business unit.
Only when the general direction is clear will the people below not be prone to major problems.
"Why do you say we have to expand overseas?"
Cao Yang felt that Zeng Tingting didn't quite understand what he said, so he asked directly.
"Now China's economic scale is the second in the world, and its global influence is also rising. Supporting various companies to develop overseas business will also be a new direction."
"We have already had some overseas layout foundations, and the next step of expansion is relatively easy."
"Another reason is that China has become stronger, which will inevitably arouse some people's vigilance."
"At this time, whether it is necessary to continue to import parts from China should also become a question that some companies are thinking about."
"Some companies may even ask for supporting equipment nearby when placing orders, and not export from China."
"So it is necessary to set up some auto parts factories overseas. Even gearbox factories can be considered to be set up overseas."
Cao Yang could understand Zeng Tingting's explanation.
After all, he is more clear about future development trends than Zeng Tingting.
"Our current exports are mainly automobile-related businesses. We are not in a hurry to set up Xingchen Automobile factories overseas."
"But Nanshan Auto Parts or Nanshan Transmission can indeed consider officially setting up factories overseas."
"For example, our previous trading point in Mexico can be further expanded into a formal factory."
“When we first started, we exported all the constituent parts to these factories for assembly.”
“For some shells with relatively large shapes, if there is a cost advantage in purchasing them locally, you can also purchase them locally.”
Although Cao Yang has been promoting 100% localization, it is not inconsistent with overseas layout.
After all, Nanshan Group cannot develop and grow solely by relying on the Chinese market, and it is still reluctant to give up on overseas markets.
Earning money from foreigners gives you a greater sense of accomplishment.
"Yes, I think so too. We can even ask Yangcheng Fuqiang Group to go to Mexico to set up a hot stamping production line to provide supporting equipment for Ford Motor and General Motors."
Nanshan Group has some related parts and components companies, and letting them go to the front line is a method that Zeng Tingting supports.
Otherwise, like some control parts produced by Nanshan Auto Parts, it would not be that meaningful to produce them overseas.
"You come up with a specific plan and we'll see how to move forward."
"It is necessary for the auto parts business to go overseas. This has been discussed internally a long time ago."
"In addition to the overseas expansion of the auto parts business, the overseas market expansion of the equipment business and mobile phone business is also of extraordinary significance."
"However, these two businesses have no plans to set up factories overseas in the short term and will only conduct export sales."
Cao Yang has no plans to let Nanshan Equipment build factories overseas.
China's industrial system has the most cost advantage.
Even if it is produced in China and exported overseas, the cost is lower than that of local production.
In this case, why bother?
"Nanshan Equipment previously had equipment export business cooperation with Tianzhu. The other party proposed that if we can build a factory in Tianzhu, they will provide a large number of order support."
"Although the cost of production in Tianzhu is not necessarily lower than that in China, it may even be higher in the initial stage."
"But in the long run, I think we can consider setting up a factory in Tianzhu."
In business, Zeng Tingting feels that the Tianzhu market is a market worth looking forward to.
The population there is similar to that of China, and the economy is also in a stage of rapid development.
Although Nanshan Group does not have much business in Tianzhu now, it does not mean that it will not have much business in the future.
Zeng Tingting wants to enter the Tianzhu market.
However, this time Cao Yang's answer still disappointed her.
"Nanshan Equipment will not go to Tianzhu to build a factory, and the order promises of Tianzhu people are also unreliable."
"Although the Tianzhu market will have strong demand for various machine tools and equipment in the next few years, we can only meet the demand through exports."
Cao Yang knew very well what kind of virtue the people in Tianzhu had.
He definitely disagrees with helping Tianzhu people cultivate and develop the equipment industry. That would be quite harmful.
Many people look down upon Tianzhu and feel that they have nothing worth learning from.
In fact, his learning ability is also very strong. In the future, he may pose a threat to China in some other households.
"Mr. Cao, you seem to be biased against the Tianzhu market?"
Zeng Tingting is Cao Yang's direct subordinate, so naturally she can say whatever comes to mind.
"You've healed your scar and forgot about the pain. Have you forgotten about the final payment for the equipment?"
"If it's just a balance issue, it can actually be solved. Wouldn't it be enough to collect all the payment at once in the future?"
"You are right, but I have no confidence in Tianzhu. When soliciting investment, it may be easy to say anything, but it will be difficult to say after going in. Whether it is electricity, water, taxation, or personnel management, there will be various issues. Such questions.”
Cao Yang had heard about many strange investment cases in Tianzhu.
I really have no interest at all in setting up a factory in Tianzhu.
If exports can sell, then export.
If you can't sell it through export, let's see if you can find a middleman to cooperate and give some of the profits to others.
If it really doesn’t work, then I’ll give it up!
I don’t want this market!
Anyway, Nanshan Group has always taken the route of relying on technology to get orders. As long as the technology is advanced enough and the cost is competitive, there is actually no need to worry about order issues.
Just like Nanshan Special Steel and Nanshan Carbon Fiber, even if Tianzhu people want to buy it, it is not so easy to buy the brand they want.
"This is indeed the truth, but with such a big market, it would be a pity to give up."
"It's nothing to regret. The world is so big, and there are other better markets worthy of our expansion."
Cao Yang's attitude is very clear.
He will not go to Tianzhu to invest, especially not to invest in equipment.
Unlike some companies, for the sake of their own performance, they help others form a complete industry chain of certain equipment.
It is even proud to realize 100% localized procurement of parts in Tianzhu, and 99% of its employees are Tianzhu people.
Regarding this, Cao Yang was also speechless.
Of course, when the company is small, you only need to consider whether you are living well, and you don't need to consider so many issues.
But as your business develops, you must consider some issues beyond business development.
Otherwise, there is a problem with your stance and you only focus on money, which will make it more difficult to make money in the end.
"Then I will focus on Europe, the Middle East, America and polar bears first, and see if I can capture a large chunk of the market in these places."
Zeng Tingting had already felt Cao Yang's resolute attitude, so naturally she would not be so stubborn in confronting him head-on.
After all, it’s not like there is no market to expand now.
…
"Old Chen, Nanshan Group is preparing to vigorously enter the overseas market, including Honor mobile phones, and will further accelerate its overseas layout."
"Our deployment in Africa will also be accelerated."
"Next week I plan to fly there in person to open up several major markets."
As the general manager of Transsion, Zhu Zhaohai had directly contacted Nanshan Semiconductor before, but unexpectedly received investment from Nanshan Group.
After that, Transsion stood out from the copycat manufacturers in Huaqiangbei and completely focused on the African market.
After this period of deliberation, their preparations were almost completed.
Nowadays, even Honor mobile phones are considering entering some African markets, not to mention Transsion.
Of course, everyone’s positioning is different.
The smartphone Zhu Zhaohai plans to sell in Africa is priced at about US$100, and the maximum price will not exceed US$200.
As for Honor mobile phone products, even the lowest-end ones cost more than $300.
In this way, there is no competitive relationship between Transsion and Honor mobile phones.
It is naturally very meaningful for everyone to exchange information about the African market.
Of course, at this stage, Honor phones are getting more information from Transsion.
After all, Transsion has been working in the African market for some time, and Honor Mobile is only now starting to consider entering the African market.
"No problem, our new production line will be put into production this month, and the production capacity will be increased soon."
"Products like mobile phones are relatively small, so they can be shipped directly by air."
Chen Minbo is now full of confidence in the company's future.
Over the years, none of the affiliated companies that have shares in Nanshan Group has failed.
He doesn't think Transsion will be an exception.
Although the African market is very different from markets such as Europe, it is precisely because of these differences that the smartphone market there is completely blank.
There is a large space for the sound transmission to work well.
"I plan to use Transsion's own brand sales stores and authorized stores in Africa to open up the market in the shortest possible time, and then it's time to dig deeper."
"Otherwise, sales have not increased, and I'm worried that it will affect Nanshan Group's confidence in us."
Although Transsion has now received investment from Nanshan Group, there are a lot of copycat phone manufacturers in Huaqiangbei, and they have many other options.
Zhu Zhaohai is also worried that the Nanshan Group will bet on other people at the same time.
In this way, the loss of sound transmission will be huge.
"Well, let's spread the goods first and open up the market, and then we'll take our time in the future."
After the two executives of Transsion reached an agreement, the action immediately started rapidly.
In China, after more than a month of offensive, the competition in the mobile phone market has become even more intense.
"Mr. Cao, last week our mobile phone shipments reached 1.01 million units, of which 200,000 units were contributed by the export market."
"At the same time, other smartphone manufacturers are also increasing their shipments rapidly, causing Nokia's share to further decline."
"Although accurate data has not yet been released, it is estimated that Nokia's share of China's mobile phone market has dropped to less than 25% in the past week."
"We estimate that Nokia's market share will fall to less than 20% throughout the year, and will completely fall to less than 10% next year."
Xia Qingqing's face was full of spring breeze and she was in a very good mood.
Honor mobile phones are now on the fast track of development, and she hears almost all good news every day.
In this case, it's strange to feel bad.
"If the domestic and overseas markets can each account for 50%, I think it will be a more appropriate figure."
"Now the automotive sector is fully entering overseas markets, and has even considered building factories overseas."
"Honor Mobile's overseas actions can also be bigger and bigger."
At present, Apple’s mobile phones have not yet completed the enclosure of various markets around the world, and Samsung’s smartphones have not yet exploded.
It can be said that the past two years have been the easiest time for Honor mobile phones to seize the market in the international market.
If you don't seize this opportunity, it will be much more difficult to work hard in the future.
"No problem. I will personally visit all the major overseas markets next month and urge the teams in each place to do their best to increase our mobile phone sales."
"However, I found that during this period, Apple mobile phones and Samsung mobile phones were also fighting against Nokia, and they were rarely on our side."
The circle of an industry is very small. Naturally, the methods used by Samsung and Apple mobile phones cannot be completely concealed.
So it's normal for Xia Qingqing and the others to know some information.
"I can completely understand that Apple will temporarily side with us. After all, our interests are consistent in dealing with traditional mobile phone giants."
"But Samsung has also done this, which shows their cunning even more."
"Before the rise of smartphones, the market share of Samsung mobile phones was not much lower than that of Nokia."
"It can be said that they are both giants in the traditional mobile phone era, but Samsung has transformed faster and in a more accurate direction than Nokia, so now their new smartphones are performing well."
Cao Yang doesn't like Korean companies and doesn't like Samsung.
But whether he likes it or not, he will not underestimate Samsung.
Even among all competitors, apart from Apple mobile phones, the one he values most is Samsung mobile phones.
"Indeed, the Koreans are quite cunning. I don't like them very much."
"But we cannot ignore Samsung's strength."
"Screens, memory, chips, Samsung can make these things by itself."
"Among the entire mobile phone industry, Samsung's industrial chain is the most complete and the least dependent on external parties."
“Even Apple’s mobile phone chips are being considered by Samsung.”
"Under this situation, once Samsung completely shifts its focus to smartphones, it will definitely launch several high, medium and low-end products in one go."
"With their past sales channels and experience, it is likely that the status of Samsung mobile phones will not decline due to the changes in this era."
Xia Qingqing naturally has a relatively in-depth study of the situation of various mobile phone giants.
Cao Yang regards Apple and Samsung as the main international competitors of Honor mobile phones, and she wants to study the situation of these two companies carefully.
From the current point of view, Xia Qingqing feels that Apple and Samsung have their own merits, and both may threaten the status of Honor mobile phones.
This was a situation she didn't want to see, but there was no way to avoid it.
"Apple, Samsung, Honor, and maybe Warwick will be added to the mix. In the future, this should be the most important competitive landscape in the international mobile phone market."
"Giants like Nokia and Motorola will fall faster than you think."
"You think Nokia can maintain a 10% market share in China next year, but I think it's too optimistic."
"This year it may fall to close to 10%. By next year, whether the company can still sustain it is a question."
What Cao Yang said shocked Xia Qingqing.
A giant like Nokia will face the question of whether it can survive next year.
Isn't this too exaggerated?
As for that?
"Mr. Cao, if Nokia really fails so quickly, then the competition between us and Apple and Samsung mobile phones will break out in advance. We need to start preparing for the future competitive landscape now."
Xia Qingqing suddenly felt a little more pressure on her shoulders.
These two companies are in a different situation than Nokia.
I’m afraid it’s not that easy for Honor phones to win easily.
"Yes, you need to consider how to find your own selling point and how to make consumers willing to pay for your products when everyone in the market is selling smartphones."
"Some of the methods here are not exactly the same as those in the traditional mobile phone era."
Cao Yang chatted with Xia Qingqing for half an hour, and then went to attend other meetings.
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