Rebirth of the World’s Richest Man

Chapter 3741 Changes

On the fourth day of the Oriental Conference, the discussion was about the automobile industry. In fact, the automobile industry has been an industry that has been strongly supported by the authorities in the past two years, and it is still open to private enterprises.

 It’s just that this is a high-end industry, which is different from the real estate industry. In the real estate industry, everyone is optimistic about it and can get a hand in it.

Those who have factories can allocate land to build factories. Those who don’t have factories can get land to build headquarters buildings. It’s really not possible. Even if they buy two more houses, they can still participate in the real estate industry.

 But this is not the case in the automobile industry. Although Uncle Li joked that this car is just two sets of sofas and four wheels.

But it is not easy to really enter this industry. If anyone can really weld two sets of sofas and add four wheels in the workshop, and feel that they have successfully built a car, they will be laughed to death. of.

 So there are many people entering this industry, but for most people, they still don’t have the determination.

 The automobile industry is an industry with higher investment than the real estate industry. The first is the intensity of technology, the other is the intensity of personnel, and the floor space.

If you want to invest in the real estate industry, if you have one or two hundred million yuan, you can try it. You can open the market yourself, buy a piece of land, and then have a reserve fund, borrow from the bank, and build a house.

 One or two hundred million can also be played around.

But the automobile industry is different. Land grant alone cannot be obtained with only one or two hundred million yuan, not to mention the subsequent construction of factories and the like. It was only a few years ago that more than one billion yuan could be built reluctantly. It can easily cost tens of millions. It is normal for the automobile industry to invest in and build factories.

 Otherwise, just like Uncle Li, outsource all the production workshops directly. In that case, the investment will be smaller.

But that was during the boom period. The automobile industry had not yet taken shape at that time. Uncle Li could do this and persisted. At that time, it is simply impossible to do this now.

Just like when Jiang Xiaobai could take 100 yuan and lead 14 people to make canned food for educated youths, if you take another 100 yuan and try to build a canning factory, it would be a fool's errand.

 So, although everyone is drooling over the automobile industry and many people are very optimistic about it, there are not many people who have the ability to get involved. So when everyone talks about it, naturally they are not that excited compared to the real estate industry.

 However, everyone is still very optimistic about the automobile industry.

“At the beginning of the 2000s, there was no real middle class in China, and the passenger car market was polarized.

In the late 1990s, the most important car buyers were government agencies and private enterprise owners. Therefore, when a new round of foreign investment entered China in the late 1990s, the first products to be launched were mid- to high-end cars priced at over 250,000 yuan, which were considered the main users.

 Including Accord, Regal, Passat, Audi A6, etc. After 2000, newly launched small cars became popular again, such as the Antelope, Sail, Palio, Xiali 2000, and of course Huahai Automobile. The prices of these cars plus the third one are around 100,000 yuan. . In the middle segment of the entire market, there is almost only one model, Santana 2000..."

"However, after 2002, with the rapid growth of the domestic economy, especially in the past two years, the development of the real estate industry has led to the rise of a wage-earning urban middle class. This new group of people with the ability to buy cars far exceeds the scale of the rich. Classes and public units... This is a new car-buying group..." Uncle Li came up and said that the first thing to analyze is the market. If you want to do well in an industry, the first thing you must analyze is of course the market. Only by having an accurate positioning of the market, can you Only then can we make the product good.

This product does not mean that consumers will buy whatever you produce. You must first look at what consumers want.

  Why some foreign-funded cars in China have reduced their allocations? This is certainly due to the imperfect domestic regulations and laws and regulations, but also because foreign car companies want to save costs.

But some of them are also designed to cater to consumers, such as sunroofs, space, technology configurations, etc. Joint ventures reinvest part of the money saved into the construction of configurations in this area to accurately meet consumers' car purchasing needs.

 So you need to understand what the market is before you can make a targeted decision.

“But what deserves our attention is that this group of car buyers has different car needs from traditional government and private owners. They are no longer satisfied with the space and quality of small cars. From the perspective of consumer choice , their car purchase needs are increasing for mid-range compact cars in size and price..."

Uncle Li has been working in the automobile industry for many years. It can be said that he still understands the market very well and can meet the market's requirements immediately. When the market changes, he can meet the market's needs.

“The market has changed from ‘big at two ends and small in the middle’ to ‘big in the middle and small at two ends.’” Jiang Xiaobai summed it up with a smile. Uncle Li nodded: “Director Jiang summed it up brilliantly.”

“In the past, there were either large cars or small cars. Just like our Ji Li, it was a small car at the beginning, surviving by having two big heads and a small one inside.

  However, the car market in the past two years is different. Whether it is price or size, people's choices are more mid-range..."

Uncle Li was also very emotional when he said it. Back then, Geely Automobile was able to occupy a place in the market by relying on its low price and small size. However, in the past two years, it has been completely different.

  But only a few years later, the market direction began to change.

 He ​​was a little scared when he mentioned it. That is to say, he entered the industry early in the past two years. Otherwise, under the current situation, Geely Automobile would not have survived at all when he entered the market.

The reason why Geely was able to gain a firm foothold in the market at that time was because of its low price. It was the only one in the market for cars that cost more than 20,000 yuan. There was no other brand of car that could achieve this price.

　　Yes, it is undeniable that Geely Automobile has many problems, but their prices are low. The low prices have exceeded a limit, and no other cars can keep up.

In addition, in those two years, many consumers in the market also liked small-sized cars, so their Geely cars had a place, allowing them to survive, but now it is different, small cars, and low-end cars are no longer the mainstream of the market and are beginning to shrink.

 (End of this chapter)