Chapter 175: Transnational Strategy

In 1991, an empire that straddled Eurasia collapsed, and the Soviet Union, the teacher and rival that the Chinese loved and hated, fell mercilessly in the Iron Curtain of the Cold War. Pen Fun Pavilion wWw. biquge。 info

Whether it is a natural disaster or a man-made disaster, the Soviet Union collapsed instantly, and there are 15 more independent countries in the world, among which Russia has inherited the mantle of the former Soviet Union and is still the largest country in the world. It's just that Russia's population has changed from 290 million to 140 million, and the land area has changed from 22 million to 17 million.

In the field of automobiles, with the decline of national strength, the Volga, Gas and Lada sedans, which were once all the rage in China, have lost their former glory. On the other hand, China's auto industry is thriving due to joint ventures and opening up, and the identity comparison between teachers and students shows the helplessness of the changing times.

With Russian President Boris Yeltsin stepping back due to health reasons and an unknown young man named Putin taking up the post of prime minister, the Russian economy began to show signs of recovery. It's just that the Kremlin has been in and out of various economic oligarchs and political upstarts before, and I don't know how long Putin can stay inside. Some say that within three months he will get out of the way, become a scapegoat and be kicked out of the Kremlin.

The financial crisis that swept across Asia, with international metal and energy prices plummeting, hit Russia, a major exporter of resources. In this context, the state speculators came to Russia to look for the next cow to cut the meat, but unexpectedly ran into a hard iron plate. It is not that Russia is crushing the other side in the financial market like China, but that Russia is not paying its debts, directly announcing a sharp depreciation of the ruble and being unable to repay its national debt on time. The market means encountered the unreasonable polar bear claws, and the national speculators were saddened and defeated and walked away from the wheat city. Although Russia will take a breather for a while, the country's defaulted credit has fallen sharply, which has led to capital outflows and the national economy in recession.

Although the newly formed Russia has implemented a strategic policy of all-round tilt towards the West, after several years of actual performance, it finally finds itself in the hot face of the cold ass of the Western countries. In order to dismantle the Soviet Union, Western countries made all kinds of beautiful promises, but now they have become a thing of the past. Now the tears that come out are all the water that the devil had entered, and the road to the west is not smooth, and Russia has begun to turn its attention to the east, seeking closer ties with China.

At the end of 1998, China's No. 1 chief visited Russia, and the two countries issued a joint statement entitled "Sino-Russian Relations at the Turn of the Century," jointly seeking to establish a cooperative partnership in the new century, increase political, economic, and cultural exchanges and cooperation, and jointly resist the invisible pressure from the developed countries of the West.

Against this backdrop, Russian businessmen with a keen sense of smell began to come to China in search of cooperation opportunities. China's GDP is growing very rapidly, and it is already showing signs of becoming the world's factory, and many products can be found in China.

Andrei was a former Soviet government official, but now he is a businessman, often moving goods between China and Russia.

Russia basically accepted the employees of government agencies in the former Soviet Union, and Andrei used his previous connections and means to use the Sino-Russian border trade to exchange for the Russian people in exchange for scarce daily necessities.

Of course, compared with the oligarchs who have to shake in Moscow, Andrei is just a small shrimp, but he is a little person with ideals.

"It's the best of times, it's the worst of times, and we've just been fortunate or unfortunate to have witnessed this era. ”

After the once staunch communist witnessed the division and collapse of the country and the party, Andrei's ideals were no longer nihilistic isms, but became a realistic doer who could feed his family and live a good life.

He does not deny that he has amassed a relatively large fortune through gray channels, and unlike the oligarchs who lie on their stomachs and eat meat on fallen polar bears, he is just a small mosquito that hides next to him and sucks half a mouthful of blood. An empire has fallen, creating countless billionaires overnight, but more often than not, ordinary people who have suffered everything in silence. Not only have they experienced the disillusionment of their ideals, but they also have to endure the loss of the wealth they have accumulated over a lifetime, and eventually face a confused future where they don't know where to go.

Andrei, who witnessed all these changes in his family and country, began to think about the future for himself, unlike other wealthy peers who were keen to live a drunken life. Once the economic and trade relations between China and Russia are formalized, the old man will lose the soil for huge profits and become an ordinary businessman who does nothing, and bankruptcy is just around the corner.

Andrei intends to look for a new opportunity in China to both continue his own faction of action and do something for the great Russia. In short, Andre wanted to find a new alternative project that would whitewash his identity and become a respected businessman.

Because he knew what the new young prime minister of the Kremlin was like, and he had worked with him for three years, this short and capable young man was sure to be a blockbuster. At that time, the holes between the border between China and Russia will be filled one by one by orders from the Kremlin, because he is a doer with lofty ideals.

It's just that the colleagues who used to fight side by side are now the new prime ministers of Russia, and the other is just ordinary businessmen running across the border. Andrei believes that even if he appeared in front of the new prime minister, the former colleague probably would not know him. More than ten years have passed, and the encounters between people are so different, compared with the other party who has ascended to the sky in one step, he is just an insignificant little person.

Now this little person came to Hushan through a relationship and found Han Hao, the head of Huaxia Industry.

Previously, due to trade and temporary residence in China, Andrei accidentally drove the second generation of Huaxia Light micro-noodles purchased by a Chinese partner, and he found that this car is very practical, and the 7-seat extended version is very convenient for carrying people and goods, and is suitable for families with low economic level. Especially with a price of more than 50,000 yuan, if you get it to Russia, it is also a product that is very in line with national conditions.

Although the annual production of cars in Russia reaches 1 million, they are basically old models from the 80s, and Lada type small cars dominate among them. Russia now has more than 20 million cars left over from the Soviet Union, many of which are more than 10 years old. At present, the technical level of the Russian automobile industry is still at the level of the mid-80s, which is far behind the mainstream level of the world.

In 1999, China is expected to produce more than 1.8 million vehicles, an increase of 12.6 percent over the previous year.

Since the mid-to-late 80s, the former Soviet Union has been in social turmoil, which has continued until the establishment of Russia after the disintegration. The automotive industry is nothing more than a microcosm of the reality of Russia, where the polar bear is no longer strong, but only on the surface.

On the one hand, aging products occupy a mainstream market position, and on the other hand, a hundred flowers are blooming, and international mainstream models have entered the market, and the Chinese automobile market has begun to exert force.

Now that relations between Russia and Western countries have deteriorated, and China has just reached a partnership in the new century, Andrei wants to import cars produced by Huaxia Industry to Russia, and he hopes to become the general agent of Huaxia Industry in Russia.

Especially through the introduction of Chinese friends, he just learned that Huaxia Industry will also launch car products, Chinese goods have always been popular with high quality and low prices, presumably qualified quality cars shipped to Russia can still guarantee profits.

The second generation of Huaxia Light micro-surface is obviously not as marketable as cars, and cars account for more than half of Russia's million car sales.

The glory of the former empire, the Russians have long lived on four wheels, reaching their peak in the early 70s, and even have a tendency to catch up with the American people. When the Chinese were still pursuing a well-off society, the Russian people had already experienced the taste, and a house and a car were the standard equipment for many Russian families at that time.

Andrei's vision is very long-term, he knows that if he acts as an agent for advanced brands in Western countries, first, he does not have much capital and the other party will not look down on him, and second, the Russian government will not allow Western car brands to enter in a grand manner. As for China, China and Russia have just signed an economic and trade cooperation agreement, and automobiles are one of the contents. The introduction of Chinese brands to the Russian market has met much less resistance.

Among Chinese car brands, Huaxia Industrial's products are very competitive, and Andrey pays more attention to the price factor, because the Russians are constantly deflating their pockets and cannot afford much to buy a new car. In addition, most of the cars that are more than 10 years old have various breakdowns, and the next few years will usher in a wave of peak car replacement periods.

"To enter the Russian market, frankly, we are not ready. Because the car is not a one-time sale, but also involves follow-up services and other aspects, we don't want to do a hammer deal and break the brand. And the cars we produce are going to face the cold winter for which you are famous, and they must be improved in a targeted manner. After all, your winter has defeated the horrors of Napoleon and Hitler, which swept through most of Europe. ”

In the face of Andrei's sharp eyes, Han Hao still expressed his opinion, the other party was introduced by the Russian Embassy in China, and he deliberately took the time to receive the other party.

In fact, he also had other considerations, that is, he couldn't figure out the details of Andrei's strength, and Huaxia Industry would definitely not rashly deal with a person of unknown origin, especially if the other party was still Russian. If the other party cheats Huaxia Industrial's goods and leaves in the future, it will be difficult for Han Hao to find someone to settle accounts. If you really want to enter the Russian market, Huaxia Industry will look for a reliable and powerful partner.

"I understand your concerns, after all, there are quite a few Russian swindlers coming to China now. I specially asked the staff of the embassy in China to help take the lead, just to prove that I am a legitimate businessman with a clean net worth. In order to show my sincerity, I am willing to pay the payment in cash in a lump sum and order 100 sets of Huaxia Light II micro noodles to return to China. But I hope that this order, you can give me a big customer treatment. ”

With a heart, Andre estimated his net worth and proposed a more perfect solution. Pay the money with one hand and deliver the goods with the other, so that everyone does not suffer.

"Mr. Andrey, I am very grateful that you are optimistic about our products of Huaxia Industry, but entering a new market, we must consider sustainable long-term plans in terms of branding. It is necessary to carry out a series of preparations in the fields of pre-sales, after-sales, finance, logistics, and talents, and now we have no plan for all this, so we have no plans to enter the Russian market now. ”

In the Russian auto market, the local government has been implementing very strict protection measures, and imported cars not only have high tariffs, but also cannot get approvals, because it is necessary to protect its domestic auto industry. Now that Russia's economy is in turmoil, Han Hao is really reluctant to enter this unfamiliar neighbor market. Plan and then act, and strive to hit the right shot, this is the principle of Han Hao's business.

"Or I'll act as an agent for your motorcycle brand first, now big cities such as Moscow and St. Petersburg also need small displacement motorcycles for commuting, and your princess scooter is very suitable for our Russian girls to drive. Just like your dealership, sell motorcycles first and then upgrade to cars. ”

It seems that Andre did a lot of homework before he came, and he also deliberately found several Huaxia brand dealerships to visit.

"I can ask you Bank of China branch in Moscow to open a credit certificate, you can send someone to Moscow to guide the work, and if you perform well in the future, we will further cooperate in the field of automobiles." Volkswagen has been able to achieve such results in China because they came early and saw far. Now that our Russian economy is in a downturn and the domestic car market is stagnant, if you come in at this time, I believe it is an excellent time. After all, our national conditions are similar, and when China's best-selling models come to Russia, I believe that they will also be welcomed by the Russian people. ”

As the head of Huaxia Industry and one of the richest people in China, Han Hao is not comparable to ordinary businessmen, it can be said that he came to China to meet the highest level of people, Andre had to show his highest sincerity and strive to impress the other party,

The sales of motorcycles in Russia, Han Hao remembers having checked with someone, does not exceed 20,000 units per year. Compared with China's scale of nearly 10 million units, it is really not worth mentioning. However, the Volkswagen mentioned by Andre has received special treatment in China because it is first-come, first-served, which really reminds Han Hao.

Although the former Soviet Union had collapsed, the independent countries had formed the new CIS, an economic association of nearly 300 million people. If we can gain a foothold in the CIS, then it will be a completely new consumer market in the future.

Unlike the world's auto giants, which focus on North America, Europe, and East Asia, Huaxia Industry can only start from emerging markets if it wants to expand sales in the future. Because of the high threshold, technical patent barriers and protectionism in North America and Europe, it is difficult for new competitors to enter them. In South Korea and Japan, local protection and patriotism are rife, and foreign brands have been marginalized except for national brands.

Just like the strategy of encircling cities in rural areas in China, Han Hao's strategy is to first gain a foothold in developing countries, seize emerging markets, and finally enter the markets of developed countries with fierce competition in the future.

Compared with ASEAN, the CIS is also an emerging market, and Huaxia Industry can deploy here earlier. Now there is a pioneer from Russia who has taken the initiative to come to the door, and maybe he can use his hand to find a way.

"I admit that I was slightly moved by your sincerity, but in order to prove that you are a worthy partner, it is necessary to reach a satisfactory figure in the sales of export motorcycles in Russia. With 1,500 units sold in one year, we will be able to start negotiations on the auto trade. Of course, we will send professionals to help you try to develop the Russian motorcycle market together. I can guarantee that you will receive the same support as our dealers in China!"

In the end, Han Hao decided to give Andre a chance, if he can prove himself, then there is room for further cooperation between the two sides. However, motorcycles exported to Russia will be the same as those released in the three eastern provinces, and there will be special targeted improvements to prevent non-ignition when the temperature is below zero. The brand was also replaced by the Panda brand produced in Vietnam, and the brand Huaxia, which is very regional, was not used.

In the depths of his heart, Han Hao also has a deep meaning, that is, in the future, he can use Russian technical and scientific research talents to serve Huaxia industry. Although the former Soviet Union collapsed and the Russian economy collapsed, there are still many outstanding industrial and technical talents waiting to be tapped locally. As long as it's used correctly, it's a technological force that can't be ignored. After all, the Cold War with the United States in the arms race for several decades is a testament to the quality of the Russian people.

Similar to Andrey, Vietnam's Le Guhua has also been urging Han Hao to launch micro-surface products, although the joint venture motorcycle is selling well, but the flexible micro-surface has a big market in Vietnam.

Vietnam's car market is even smaller, with annual sales of more than 10,000 units, which is in line with the local income level. According to Li Guhua's prediction, if the second generation of Huaxia Light is launched, he can ensure that the annual sales target is 1,000 units.

1,000 units is only equivalent to the sales volume of a remote border province in China, and to be honest, it has not been able to form a scale effect. But there is an advantage that it is easy to form brand recognition when entering the market early.

Unable to resist the request of the Vietnamese side, Han Hao decided to test the water by importing the whole vehicle, pulling 200 Huaxia Light II from China to Vietnam for sale to see how the test situation was.

In addition, Lai Guhua also exported 500 panda motorcycles produced in Vietnam to Thailand for the first time through the relationship, preparing to open the door to sell back to Thailand.

He is still taking the overseas Chinese channel, and has realized agent sales through overseas Chinese relations in Thailand, which seems to have a good response and obvious cost-effective advantages.

The annual sales of motorcycles in Thailand exceed one million units, of which the Japanese motorcycle camp is still dominant, especially Honda's monopoly position in the local factory.

Now a strong opponent has quietly come to them, according to the ASEAN free trade policy, whether the Panda motorcycle can still stage a counterattack in Vietnam, based on the super cost performance to beat the Japanese brand, can only wait and see.

However, the Thai dealer network led by Huaxia Industry and in which Li Guhua has a stake has begun to recruit, many of whom are overseas Chinese, who have heard about Huaxia Industry's reputation in Chinese mainland in the news and are now ready to become new market pioneers under its leadership.

In the midst of busyness, we finally ushered in the day of the 50th anniversary of the founding of the People's Republic of China.