Chapter 58 Expedition abroad

In 1994, China's motorcycle production reached 5.22 million units, an increase of 44.6% from 3.35 million units in 1993, which greatly exceeded the expectations of industry experts. The production and sales rate of pen ~ fun ~ pavilion www.biquge.info especially reached 97%, and the inventory was 192,500 units, showing a booming trend of production and sales. Large factories like Jialing and Jianshe have a production and sales rate of more than 99%, which is basically in a state of zero inventory.

Unexpectedly, the domestic motorcycle market is so huge, and the national demand for motorcycles has burst out all of a sudden. This is related to the improvement of our country's economic situation, starting from Deng Gong's southern tour in 1992 to demand further reform and opening up, China's GDP output value has continued to increase at a rate of 13% annually, reaching 4.8 trillion yuan in 1994.

The people have money in their hands, the first thing to solve is the problem of clothing, food, housing and transportation, and the car is still unattainable in terms of travel, so motorcycles have become the primary choice of the majority of Chinese people.

The high profits of motorcycles have naturally attracted the attention of many people, and they have tried to find ways to enter this field. Although the state has carried out catalog management of motorcycle production, and enterprises that cannot be listed in the catalog are not allowed to produce complete motorcycles, due to the existence of an industrial chain that buys and sells catalogs, coupled with local protectionism, this catalog management model is equivalent to a dead letter.

In 1994, a total of 600,000 90cc engines were produced by hundreds of engine companies in Chongqing, and the technology was basically the same, so the price war was fought one after another. In Yuzhou, the 90CC engine has realized the function of catching medicine according to the order of traditional Chinese medicine. It doesn't matter if there are no drawings or machines, as long as you go around the market and all the parts can be purchased and matched at the moment, and then under the guidance of skilled workers, a 90CC engine can be successfully born.

Everyone has the same technology, the same products, to compete for sales can only be a brutal price war of survival of the fittest, so after the Lunar New Year in 1995, half of the engine manufacturers in Yuzhou have disappeared. Three or five people per household, hundreds of people per family survived in the fierce market competition. However, they still rely on their limited profits to provide a steady stream of engines, among which a number of powerful private enterprises have also been born, known as the new Yuzhou motorcycle gang forces.

It is precisely because of such a group of 90CC engine companies that the price of the engine has dropped again and again, which has led to the quiet rise of vehicle enterprises in coastal Suwu Province, Zhehai Province, Nanyue Province and other places.

The core part of the motorcycle is the engine, and now the engine is cheap and sufficient, as long as you buy your own body parts, you can assemble it. Therefore, according to incomplete statistics, in the second half of 1994, no less than 60 small vehicle enterprises emerged in Suwu Province. Therefore, in 1995, the country's incomplete statistics of motorcycle production will exceed 10 million units, but in 1994, the vehicle sales were about 5 million units, and in 1995, no matter how much they catch up, they will not break through the 10 million mark.

What does this mean?

This means that there is an oversupply, the motorcycle market will change from a seller's market to a buyer's market, and the beautiful scene of automakers sitting on their doorsteps waiting for dealers to come to the door and queue up to pick up their cars is gone. Since the reform and opening up of China's motorcycle market, the market inflection point has appeared, and 1995 will be a year of fierce fighting. Looking at the whole country, since 1995, hundreds of motorcycle manufacturers, large and small, will be eliminated the vast majority, forming a very small number of giants monopoly situation.

Although the data predicts that it is about to usher in a battle royale situation, under the current trend of huge profits in the motorcycle market, all parts of the country are still swarming into this market. Tomorrow's affairs will be talked about tomorrow, anyway, I won't be the only one who will die. Under such a mentality, China's motorcycle market began to enter the Warring States Period, and large and small princes divided one side and fought with each other.

Huaxia factory's practice of using scooters as a fulcrum to pry into the field of vehicles has naturally attracted the attention of large domestic manufacturers. Seeing the hot sales of scooters, the giants represented by Jialing and Jianshe are also ready to enter this market segment on a large scale, and they once again asked for technical support from foreign partners.

Thanks to their rigid mechanism, it is estimated that it will be a year before they really realize the production of new products, and the Huaxia factory has nearly a year to deal with the battle.

However, Huaxia Factory also has another competitor, that is, various enterprises that assemble scooters through smuggling into the country, and they smuggle in the country by purchasing parts from Taiwan, and sell brand scooters such as Guangyang and Sanyang in China under a private label brand. For example, the newly established Everest Motorcycle is one of the leaders, and the scooters they produce are basically imported originally, and they have made a fortune by evading taxes. However, Huaxia factory still staggered competition with it, because the pricing is different, Huaxia brand scooters are nearly 40% cheaper, relying on cost-effective advantages and are not afraid of direct competition.

After the year, with inflation, the state raised wages as a whole again, and the monthly salary offered by Huaxia Factory also reached 640 yuan, and the overtime bonus was calculated separately. Compared with the 580 yuan received by state cadres, they still earn more when they work in the factory. In the frenzy of going to the sea set off in the past two years, a major factor was that the money earned by eating imperial grain was too small, and many cadres could not bear to be poor and went directly to the sea to toss.

Now the Huaxia brand is already well-known in the country, and the treatment given is good, so it is more inclined to recruit skilled workers or graduates with high academic qualifications in terms of recruitment. Among the more than 1,000 employees in the factory, they have basically achieved the level of junior high school graduation or above, and the proportion of college students has gradually increased. There are also a lot of undergraduates, and most of them are enriched into the R&D team.

Han Hao takes out 7% of the annual sales as R&D funds, which is equivalent to 14 times the national average and 10 times that of domestic counterparts. If the development goes smoothly in the future, R&D expenditure will account for 10% of sales revenue, reaching the standard of world-class enterprises.

Only by continuous research and development can we catch up with international leading enterprises, have our own core technology, and no longer fight with low-end enterprises. Now the domestic 90CC engine market is like this, too many companies compete with homogeneous products, and the final result is only to sell the engine as scrap iron, and the profit is reduced again and again.

When the signs of the collapse of the 90CC engine were revealed, Han Hao asked the company to start developing 100CC and 110CC engines, and enter the blue ocean field of innovation by improving the technical difficulty of staggering the fierce competition in the red ocean.

Years later, the 100CC and 110CC engines launched by the Huaxia brand, as well as the imitation GS125CC engines, have passed the acceptance and obtained the production license.

100CC, 110CC engine will become the main brand of the Huaxia brand this year, when others are still fighting on the 90CC engine to lose both, Huaxia factory has jumped to a higher level, the production of new products in short supply in the market.

The successful imitation of the GS125 chain engine indicates that the straddle motorcycle aimed at the male market of Huaxia Factory has begun to enter the preparatory stage of trial production. If everything goes well, the first batch of products will be on the market in June, and the imitation Suzuki King will not be too bad in terms of sales.

The transformation of the production line of the Xibei plant is about to be completed, and the CKD mode will be used to transport the whole vehicle parts for assembly, and the first batch of vehicles will be landed in half a month. The products of Xibei plant will be mainly supplied to Suwu Province and the northern region, and now the sales network of Suwu Province is laid very quickly, and a network covering the whole province has basically been formed. As soon as the vehicle lands, the energy will be continuously sent to dealers in the province.

The sales network of Nanyue Province, an important town in the south, has also been smooth sailing, and the first batch of provinces set by Han Hao, including Zhejiang, Wuzhou, and Nanyue, has been settled. Next is the second batch of target provinces, such as Qilu, southern Henan, northern Henan, Jianghuai, northern Hubei, southern Hunan, western Jiangxi and other central sub-developed provinces, laying a dealer network is one of the focuses of Han Hao's work. His goal is to find Huaxia brand dealers and after-sales service points in every county in China, and at least cover counties and towns with a population of more than 100,000 people.

Thanks to the nightly prime-time advertising on CCTV, the popularity of Huaxia brand motorcycles covers a wide range, and a lot of effort is saved when recruiting dealers, many of whom come to the door on their own initiative. For example, when entering Qilu Province, Huaxia Factory published advertisements for recruiting dealers in the prime time of the local province and Taiwan and newspapers in the province, and recruited dealers through screening one by one. Every time it enters a province, Huaxia Factory can receive a large amount of deposit. These margins provided a steady stream of cash flow for Huaxia Factory, and a large amount of money was deposited in the account.

The management of the core supplier Huaxia factory is also becoming more and more strict, the motorcycle is composed of a part, as long as a part is unqualified, then the quality of the vehicle will definitely not go up. Therefore, in some key components, such as piston rings, frames, brake systems, etc., have increased their shareholdings, requiring suppliers to introduce advanced technology to transform production lines, improve the level of standardization, and ensure the high quality of parts. Even send technical personnel to parts manufacturers for technical guidance, to provide them with technical support, everyone work together to improve the level of parts.

At the end of the work at hand, Han Hao led a group of 10 backbone members of the company, and everyone went abroad for inspection. The purpose of this time is twofold, one is to see how the level of factories in developed countries is, and everyone to see the world abroad. The second is with the important task, that is, to see if we can cooperate with foreign manufacturers to jointly design and develop a new motorcycle.

If the motorcycles of the Huaxia factory were all imitations of Guangyang and Suzuki, then now Han Hao is ready to completely develop a motorcycle independently. It is not an imitation, but a groping process from scratch to produce a new model with intellectual property rights.

In fact, this model is not important, the important thing is that Huaxia Factory hopes to introduce a complete set of foreign design and development processes, to figure out how a motorcycle is designed and developed, so as to cultivate its own design and development team.

Han Hao doesn't want to be just an imitator, but wants to start his own original work. Imitation is called reverse development in the industry, that is, you just copy and produce other people's finished products, why this part is like this, why the whole model is designed like this, and you are in a state of ignorance.

If you develop your own originality, the industry is called forward development, and you can conceive and design step by step from scratch, so as to get your own products.

Therefore, in addition to the introduction of advanced design and development computer equipment, it is also necessary to train a preliminary independent development team for their own factory.

This is actually the biggest purpose of Han Hao's overseas investigation.

For this reason, the first stop of the delegation came to Japan.