Chapter 510: Gambling (asking for monthly ticket subscription)

On December 1995, 12, the sky was clear.

The completion ceremony of the first phase of Aiwa Electronics' large-scale production base located in Ziyun Town, Jiangchuan City was held grandly in the warm winter sun.

Three leaders came from the province, the most senior of whom was Vice-Provincial Zhao Jinhua, who was in charge of state-owned assets supervision and enterprise reform, industry, commerce, investment promotion, and ports. On the Jiangchuan city side, under the leadership of Yang Jiarong, almost all the important party and government leaders were present.

In a warm atmosphere, Zhao Jinhua, Yang Jiarong, Hu Zhibiao, general manager of Aiwa Electronics Corporation, Zhong Renxing, general manager of the Provincial State-owned Assets Corporation, Zhao Jianqiang, chairman of Jiangchuan State-owned Investment Corporation, and other government and enterprise representatives took the stage to speak.

The media lineup has grown unprecedentedly.

More than 20 people from CCTV, provincial party media and local reporters came. After the completion ceremony, Yang Jiarong accepted interviews from CCTV, Xiangnan TV and other large media.

He comprehensively and systematically introduced the entire process of the establishment of Aiwa Electronics' large-scale production base by the Jiangchuan Municipal Party Committee and Municipal Government, the innovative investment and financing model that pioneered China's government-enterprise cooperation, and the great significance of the emerging industrial cluster to Jiangchuan's economic development.

A silkworm will not stop spinning silk until it dies.

The journey to Jiangchuan City is about to end. The helmsman who has made the GDP of this small southern city rank among the top two in the province did not forget to give Aihua the last assist on CCTV.

Aiwa needs extensive marketing publicity.

Aiwa needs to send a strong enough signal to dealers, suppliers and even consumers. Looking at China in 95, there is no other production base with a monthly output of units except Aiwa Electronics. Aiwa Electronics is fully optimistic about the Chinese DVD player market, so it has the confidence and strong strength and funds to do so!

It is foreseeable that after this completion ceremony, the sales volume of Aiwa Electronics DVD players will reach a second peak.

In fact, according to the data sent back by second-tier distributors in various regions, it is a foregone conclusion that Aiwa Electronics' monthly sales volume will exceed 12 units in December, and the price of DVD players this year remains at a high level of more than 6000 yuan. The agency price that Aiwa Electronics provides to second-tier distributors remains at a high level of more than 600 yuan. Although it does not have the bargaining power in purchasing components and cannot effectively control purchasing costs, Aiwa still has a gross profit of nearly yuan for each DVD player, and the monthly gross profit has exceeded million yuan.

Zhang Yunqi's United Times has many subsidiaries, but the new company Aiwa Electronics has suddenly become the most profitable subsidiary. Of course, with such strong profitability, the investment cost is also amazing.

Under the leadership of Hu Zhibiao, Aihua's development model was too radical, resulting in abnormally high management expenses, especially in the marketing area. Fifteen million yuan was invested in the entire central China region in three months. The performance was real. Zhang Yunqi would not question Hu Zhibiao's marketing and operation capabilities, which should be said to have been a great success. He has also agreed to let Hu Zhibiao spend another ten million yuan on marketing promotion during the peak season of home appliance sales before the Spring Festival, to consolidate the territory in central China and advance into east China.

Under such a crazy money-burning situation, the 20 million yuan deposit that Lianzhong had originally supported was almost gone, and the 40 million yuan raised from the Provincial State-owned Assets Corporation and Jiangchuan City State Investment must be used for the construction of a large-scale production base according to the agreement. Fortunately, Zhang Yunqi insisted on the marketing strategy of first payment and then delivery, and the market funds were quickly recovered. With the help of this fragile capital chain, Aiwa Electronics maintained its rapid expansion.

In the past few months, Aihua Electronics Head Office has established Aihua Electronics Terminal Operation Branch, which is fully responsible for the establishment of after-sales maintenance service centers in Aihua's terminal sales markets in various regions. It has also successively acquired Jiangchuan Radio Factory No. 2 and Radio Component Factory No. 8, which are mainly responsible for the production of circuit boards and remote control combination circuit systems for DVD player control systems. These are all preparatory actions to extend to the upstream industrial chain. The production of movement using optical heads and the production of decoding boards using decoding chips are inseparable from the basis of control circuit board production. At the same time, Aihua Electronics has also promoted the establishment of the industrial chain of supporting components such as video heads, audio heads, motors, and head drums in Jiangchuan through multi-party cooperation, promoting the development of industrial clusters.

On December 12, Liu Jinshi, general manager of Philips Components China, flew to Jiangchuan City.

He came to attend the completion ceremony of Aiwa Electronics' Jiangchuan large-scale production base and discuss cooperation in the supply of movement components.

Aiwa Electronics is undoubtedly the largest movement customer of Philips and Sony at present, but the current Chinese DVD player market has not yet exploded, and the production and sales of movements are far from being in short supply. In addition, there are two movement suppliers, so Aiwa Electronics has a certain room for bargaining, but how can this matter of cutting losses be easily negotiated?

After several rounds of negotiations, on the day after the completion ceremony of the Aiwa Electronics production base, Liu Jinshi was convinced by the strong government and enterprise background of Aiwa Electronics at both the provincial and municipal levels that the company would occupy an important position in the Chinese DVD player market. After consultation with Philips headquarters, the two parties reached a cooperation agreement.

爱华电子自96年1月份至12月份，每个月向飞利浦采购10万套机芯，每套机芯价格在当月市价基础上给予3%的优惠。

There is a huge gambling game involved.

Bet on how high the Chinese DVD player market will reach next year!
You know, even if the first phase of the project is completed, Aiwa Electronics currently does not have the capacity to produce 10 DVD players per day, and the monthly market sales are only 6 units. Now, if they suddenly purchase 10 sets of movements per month, it will completely break the cost control logic of Aiwa Electronics' production and sales. If the market does not explode within half a year, the huge cost of purchasing a huge amount of components will become Aiwa Electronics' nightmare! This major decision can only be made by Zhang Yunqi.

Before he made this decision, Aiwa Electronics executives including Hu Zhibiao, Liu Ming, and Liu Dongsheng repeatedly confirmed to him the serious consequences that this agreement might bring, and that the company might be in a catastrophic situation as a result.

Zhang Yunqi understood this, but others didn't understand why he was so optimistic. The wonders of the market can never be experienced by those who have not experienced it! What he wanted was Philips's supply tilt commitment on the eve of the market explosion. Before making a decision, he only confirmed one thing with Liu Ming, that before the fourth quarter of next year, Aiwa Electronics' technical department must have the ability to develop its own movement. Because in the preconditions of the contract between the two parties, there is no doubt that Aiwa Electronics cannot develop its own movement.

This reminded Zhang Yunqi of something that happened in his previous life.

The chickens we eat are called "commercial chickens". Commercial chickens need to be bred. The chickens used for breeding are called "parent chickens". The "parent chickens" are the breeders, and the breeders are the original breeders. For a long time in the past, our country did not have the ability to breed original breeders. Almost all the original breeders in the world were in the hands of two American companies.

There is a company called Shengnong in Guangze County, Fujian. Its founder became one of the first people in China to introduce and raise white-feathered chickens in the 80s. Later, Shengnong Group raised 6 million chickens a year. Half of KFC in China and one-third of McDonald's chicken came from this group. At first, a set of purebred chickens sold for $6, and later the price rose to $36. If the price rises to $80 one day, Shengnong will still have to buy it, because if it doesn't, Chinese people won't be able to eat white-feathered chickens.

Therefore, Shengnong Group started to breed purebred chickens privately in 2011, but the news was leaked out somehow. The representative of the American company rushed to Guangze County, sat in the office of Shengnong’s founder, and said to him: “I will give you 30 minutes and two choices. Either you destroy your purebred chicken base tomorrow and swear not to research purebred chickens from now on; or we will stop supplying you from tomorrow!”

What would the founder of Shengnong do? He called the person in charge of breeding stock chickens at Shengnong Group and asked, “If the American company stops supplying us with stock chickens tomorrow, will we be able to supply our own stock chickens?”

The person in charge said: "We can provide it."

The founder immediately responded to the American representative: "I'll give you ten minutes, please disappear from my sight."

The same problem has always been the shackles that Chinese companies must face when participating in foreign supply chains. They have no bargaining power in purchasing components and cannot effectively control procurement costs. If they cannot break the monopoly of this underlying technology, they can only be slaughtered. In short, if you are killed at three o'clock in the morning, it will be difficult for you to survive until five o'clock.

On December 12, after the completion ceremony of the Aiwa Electronics production base, Zhang Yunqi attended a cocktail party held at the Yunbo International Hotel.

At this celebration party, the most excited person was Hu Zhibiao, who became famous overnight with a suspense advertisement that pioneered Chinese marketing on the day of Aiwa's listing; the happiest person was Liu Jinshi, who won the huge order from Aiwa and was almost certain that Philips would gain a huge share of the Chinese DVD player market.

As for the most emotional one, it was Yang Jiarong.

His journey to Jiangchuan has come to a successful conclusion.

On the 27th, Zhang Yunqi held the company's 1995 annual summary and 1996 annual plan executive meetings at Liansheng Group and Aiwa Electronics in the morning and afternoon respectively.

1995 is about to pass, and Zhang Yunqi has no time to miss it. He is now in charge of two platform companies for rural land operations and urban industrial land operations. In 1996, he aggregated various resources of Liansheng Group and Aiwa Electronics, relying on the rural property rights transfer and transaction market system to create a two-way flow channel for urban and rural elements in southern Hunan. This is his ultimate goal that he can't wait to achieve.

On the 28th, Zhang Yunqi received a call from Liu Minsheng, the chief secretary of Xiangnan.

Liu Minsheng said on the phone: "Mr. Zhang, Secretary Hu Xianxun will go to Dongting Lake for research the day after tomorrow. You have been included in the list of researchers. Please prepare tomorrow."

After hanging up the phone, Zhang Yunqi rushed to Lijin City at night.

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PS: This volume is about to be completed.

I am very satisfied with the beginning of this volume. I feel that I wrote it very well, but the middle part failed to hold up. It was written poorly due to my condition. I am very dissatisfied and would like to say sorry to the readers. I hope that the final plot of this volume can write a climax with emotion, depth and warmth!
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