Chapter 57: Not only do you need to enclose land, but also the market
The flight Ye Tian and Ouyang Xiaowei brothers and sisters finally returned to normal. After watching them get on the plane and rushing into the blue sky, Fan Wubing turned around and said to his subordinates, "So, okay! We also need to find a place to take a rest first. There are still many major things waiting for us to deal with!"
After returning from Japan, it was directly airborne in Shanghai. One reason was that it was convenient, and the other was that Fan Wubing’s investment focus was of course to settle in Pudong New Area, a hot spot in the next twenty years.
Originally, Shanghai was always the old financial center of China before its liberation, but later it gradually declined due to various reasons. After reform and development, Shenzhen's rapid rise almost replaced Shanghai's leading position as the national key economic city.
Now that the State Council has put forward a new idea of ​​revitalizing Shanghai's economic development, it will naturally invest a lot of funds and policy-oriented investment in the undeveloped area of ​​Pudong. It is time to get involved in the development of Pudong at this time.
The most critical issue is that Fan Wubing's trip to Japan was really amazing. Where should he invest so much US dollars? Although the rock where his father Fan Heng is located can be a joke, it is only a small part. Most of the remaining funds still need to find a suitable investment channel.
Therefore, Fan Wubing stared at the fat piece of Pudong early on. Why did he have to invest 400 to 500 billion US dollars here to be considered a small achievement, right?
The group took a bus to the city, found a five-star hotel and arranged to stay there first, and then started looking for a map of Shanghai and Pudong, and carefully studied it.
"Investing here will cost a lot of money! And I'm afraid there will be no big effect in a short period of time!" Wu Zhi Xiaoji analyzed from the perspective of a pure businessman.
Pudong New District is located in the eastern part of Shanghai, on the eastern edge of the Yangtze River Delta. It borders the Yangtze River Estuary in the east, borders Nanhui District in the south, and Minhang District in the west and north, and is opposite to the six districts including Xuhui, Luwan, Huangpu, Hongkou, Yangpu, Baoshan, etc., with a total area of ​​more than 500 square kilometers and a population of more than one million.
"Pudong, well, to be precise, it should be Chuansha County!" Fan Wubing looked at the map and said, "The place is not small! How much can we eat in such a large place?"
The territory of more than 500 square kilometers can be truly developed, perhaps less than half of the places. This half of them will be seized by many Chinese and foreign companies. Therefore, if Fan Wubing wants to win more good places, he must rely on huge funds to speak.
"It seems that it is necessary for us to set up an institution for Pudong development to handle related matters." Wu Zhi Xiaoji was used to being accustomed to small places like Japan. When he suddenly saw such a large open space that could be developed by himself, he felt a little confident, so he immediately suggested to Fan Wubing.
"Your starting point is good, but you shouldn't say that." Fan Wubing immediately corrected, "Only the local government can establish Pudong development institutions, we don't have to worry about this. However, we can set up an investment company and other institutions to deal with problems encountered in development. Well, Xiaoji, I think you are more suitable for this job."
"Am I?" Wu Zhixiaoji pointed at his nose in surprise and asked.
"Yeah." Fan Wubing nodded, "When dealing with local governments, foreigners are more profitable. Although I may not be able to take advantage of the little profits, it is obviously more cost-effective to invest in business than to give it to them for free and spend money."
"Fan Sang, your view is quite pessimistic. You should still retain confidence in local officials." Wu Zhi Xiaoji didn't think what the local government officials would do. At least he had been in mainland China for so many days, but he had never seen anyone obstructing him or cheating him.
Haha, Fan Wubing smiled and didn't say much.
In fact, as long as a large amount of money is involved, it is difficult not to breed corruption. The only difference is that it depends on how brave the person involved is and how serious the degree of corruption is. Fan Wubing has seen too many things like this.
I remember that when I laundered money, I had done so many things like bribing related officials.
Collusion between officials and businessmen, no, it should be said that government and enterprises join forces, and this is the only rule to obtain the greatest benefit.
"Fan Sang, where are you going to start with when it comes to investment?" Wu Zhi Xiaoji asked with confidence.
"Of course I have to buy a piece of land first. If possible, it would be better to buy a few more pieces of land." Fan Wubing replied without hesitation.
Fan Wubing naturally wanted to get a little more land, but the situation in Pudong is very different from that of Panshi, and it is not that one person can tell the final decision. As China's largest city and the most important economic city, the power in Shanghai is complicated and cannot be fully grasped by someone. Therefore, what Fan Wubing is thinking now is how to take a piece of land through normal channels and use this as a reference sample, and it is not difficult to obtain other land.
Many things in China are like infectious diseases. Once everyone finds that someone has paid a good price to get the land, they will follow suit and sell more land when they are greedy. Fan Wubing is very confident about this. He can invest tens of billions of dollars and even build a land worth dozens of square kilometers to play with.
After a while of discussion, a foreign assistant from Fan Wubing came in and reported that several financial experts who had arrived in Liu City had arrived at this time and were waiting for the boss to receive him.
"Oh, I've been too busy lately. I almost forgot about this matter, so I'll just deal with it together." Fan Wubing patted his forehead and said to Wu Zhixiaoji with some embarrassment.
Fan Wubing stood up, went out in person, and picked up four financial experts.
After letting a few people sit down, Fan Wubing personally made some Longjing tea for them. After watching them drink it, he asked the person in charge, "Davis, how have you been in the recent period?"
"Apart from the climate is a little uncomfortable, everything else is very good." Davis said to the boss with a chorus, "In fact, I have fallen in love with this place a little bit! The ancient Chinese folk architecture is simply the embodiment of the god of art. Whether it is the Humble Administrator's Garden in Suzhou, the small bridges and flowing waters in Zhouzhuang, or the scenery of West Lake, Oh my God! I love it so much that I can't extricate myself!"
"Haha, if there is another beautiful girl in pairs with you, wouldn't it be even more ideal?" Fan Wubing quipped.
"The boss is wise!" Davis shouted immediately.
When Davis was in the United States, he mainly engaged in mergers and acquisitions, to find small and medium-sized enterprises suitable for mergers and acquisitions for some large companies, investigate the other party's operating conditions, debts and development potential, and then came up with a feasibility plan for mergers and acquisitions. This time he was sent to Liushi by Fan Wubing to touch the bottom of those small appliance plants and give Fan Wubing an opinion on whether it is worth the merger and acquisition.
Therefore, after everyone chatted for a while, Davis couldn't wait to say to Fan Wubing, "Boss, you are so wise! Today's Liushi is the best time for us to make a big acquisition! If it were a year ago or a year later, the situation would be completely different!"
Liushi is just a town! The permanent population is less than 100,000! The area is less than 50 square kilometers!
And in this small town, a classic story about Wenzhou people entrepreneurship since the reform and opening up is being staged!
After several years of development, Liushi Town has become a gathering place for the production and sales of low-voltage electrical appliances in the country. Liushi Town, which is less than 50 square kilometers, has gathered thousands of home appliance workshops, and the quality of the quality is very serious.
When Davis and others were secretly visiting Liushi, they often found many such scenes. The old farmers who had just put down their hoe handles were dismembered by a mottled machine tool, and polished the used exchange contactors purchased by state-owned enterprises across the country and polished them with sandpaper and shoe polish.
The port by the river was crowded with village women. They cleaned baskets of electrical appliances, and then set up iron wires on the open space on the river beach, strung together pieces of electrical appliance parts like dry sweet potatoes to dry.
The old and dizzy grandmothers chatted while shaking the enameled wire slowly like spun cotton.
In order to make money, these people can be said to be doing everything they can. They replaced the quartz sand in the fuse with rice bran and used iron sheets to replace silver as contacts for relays. The state stipulates that low-voltage electrical appliances must be produced with licenses, and among the large number of enterprises in Liushi, none of the certified enterprises, and less than one thousand certified products. After multiple inspections, all unlicensed products are unqualified.
In order to sell various electrical appliances, merchants in Liushi also spent money to buy signs from many state-owned enterprises and marked all the electrical appliances factory locations as Beijing and Shanghai.
When Davis reported to Fan Wubing, he mentioned something in particular. "We learned through investigation that the Chinese National Technical Supervision Bureau conducted an investigation into the low-voltage electrical appliance market two years ago and issued an investigation report. It mentioned that they inspected nearly 7,000 distribution units in total, and found more than one million counterfeit and shoddy low-voltage electrical appliances. During the inspection, various places found that most counterfeit and shoddy low-voltage electrical appliances originated from Wenzhou, Zhejiang, especially Liushi Town, Yueqing County, Wenzhou."
Fan Wubing nodded and said, "I know a little about this, and I have seen a newspaper notice a few days ago."
What Fan Wubing said is the investigation reports and handling results of many safety accidents in China reported in newspapers. For example, the Jixi Coal Mine in Heilongjiang caused a serious gas explosion due to low-quality electrical appliances in Liushi, causing multiple casualties and injuries. For example, a steel company in Henan completed a ribbon cutting, and a packet of steel was about to be dumped but suddenly stuck. All products worth hundreds of millions of yuan were scrapped. The investigation team carefully investigated, and it was still the cause of the low-voltage electrical appliances in Liushi.
What's more, in the middle of last year, the General Office of the State Council issued an unprecedented document for a town in Liushi, "Notice on the Investigation and Handling Suggestions on the Production and Sales of Unforeseen False and Sold Products in Yueqing County, Wenzhou". The seven national ministries and bureaus established a joint inspection team to Yueqing for inspection and handling. Zhejiang Province and Wenzhou City successively sent working groups to Yueqing, and Yueqing also dispatched hundreds of county-level office staff to settle in towns and investigated and punished Liushi Electrical Appliances.
The rectification lasted for more than half a year. According to public reports, all low-voltage electrical appliance stores in the town were closed, thousands of small workshops were closed, hundreds of second-hand goods business licenses were revoked, and the public security department filed many cases.
"The current Liushi Town is basically in a depression. Except for a few factories that have been rectified and obtained production licenses, the rest are basically due to closure." Davis said to Fan Wubing.
"So, how likely do you think is we are to integrate?" Fan Wubing asked with a frown.
Although he knew that the famous low-voltage electrical companies, Chintai and Delixi, later stood up after this storm in Liushi, he was still a little surprised in the severe situation in Liushi.
"In fact, I see that the prospects of Liushi are more optimistic!" Seeing that the boss seemed a little hesitant, Davis talked to him, "After nearly a year of rectification, small factories without strength have been naturally eliminated. In Liushi, there are about 20 companies that have obtained production licenses. Two of them are the strongest and are now in a trend of growing bigger. What I mean is that I want to start with the acquisition of these two companies and unify the low-voltage electrical appliances in Liushi!" After saying that, Davis waved his fist feelingly and expressed that his attitude was very firm.
After thinking about it, Fan Wubing encouraged Davis, "Since you are so optimistic about the development of low-voltage electrical appliances in Liushi, I will grant you full responsibility. How much funds are needed? Report a number at that time and I will properly solve it. If there are any difficult problems, especially if there are any problems in cooperation with local governments, you must tell me in advance and I will also properly solve it. As for the specific operation, I have reason to believe that you will do better than me!"
"Thank you for your trust from the boss. It feels so good to work that I don't want to leave China!" Davis sang an ode to Fan Wubing with passion.
Fan Wubing waved his hand with a smile, asking them to go down and rest first, and then discuss the details.
After Davis and others left, Wuzhi Xiaoji had time to ask Fan Wubing, "Fan Sang, there is one thing I can't understand. Why do you have to choose Liushi as the starting point for entering low-voltage electrical appliances? With your current strength, you can build a super-large-scale enterprise in any place in mainland China. Why do you need to limit it to such a small town? I am very confused about this!"
Wu Zhi Xiaoji never figured out this matter. If Fan Wubing wanted to invest in a big city like Shanghai, he thought it was very suitable, but why did he have to throw a lot of money into a small town? You should know that if you make the company bigger, the additional investment cost is too great!
The construction of various ancillary facilities, road construction, and increased costs caused by inconvenient raw material procurement and insufficient human resources will bring great trouble to the development of enterprises, and it is far less cost-effective to establish a new factory in a big city like Shanghai.
Just in human resources, how much investment does it take to train a group of old farmers to qualified industrial workers? But if you are in a city like Shanghai, it may be relatively easier. After all, it gathers the largest number of industrial workers in China! As well as talents who graduate from universities at all levels and types across the country! If you want, you can recruit foreign technical talents!
However, in a place like Liushi, there are probably not many foreign talents and highly educated locals who like to come.
Fan Wubing understood what Wu Zhi Xiaoji was worried about. After smiling, he said to Wu Zhi Xiaoji, "The national conditions of China and Japan are different, so what you see and think of are also very different from me."
"What's the difference?" Wu Zhi asked humbly.
"In Japan, the most likely opportunity to get rich is of course enclosing land, which is undoubtedly." Fan Wubing explained, "But in mainland China, the opportunity to enclose land has not yet arrived, so the easiest opportunity for us to make money is to enclose the market!"
Circle the market? Wu Zhi was stunned for a moment. How should the market be encircled?
"What I value is the thousands of small electrical appliance companies that once existed on this small land of less than 50 square kilometers! What I value is the various marketing relationship networks they have built across the country!" Fan Wubing reached out and gestured around the spread national map, and then took a heavy photo and said, "This is the market!"
If you can master these sales channels, do you still have to worry about not being able to unify the national low-voltage electrical market?
Fan Wubing knew that Chintai and Delixi occupied two-thirds of the national low-voltage electrical appliance market at the time. So with the integration of their strong funds and technical talents, would this data be even more amazing?
Chapter completed!