Reborn since 1993

Chapter 1249 Sharpening the knife won't delay the harvest of leeks

Although the first-generation Chitu electric bicycle had many shortcomings, it was still a qualified means of transportation.

Currently, users don't actually have that many transportation options. Besides public transportation like buses, the main choices are cars, motorcycles, and bicycles.

Electric bicycles fall somewhere between motorcycles and bicycles; they are more expensive than bicycles but much cheaper than motorcycles, and can be ridden by people of all ages.

This has naturally allowed electric bicycles to steal market share from motorcycles and bicycles!
"The Chitu electric bicycle has been fully upgraded and will be available for sale in the first half of next year!"

Li Dongling said that Chitu electric bicycles currently have no competitors and are the first to try something new, so the timing of their release is irrelevant.

"In addition to cities, county towns and townships are also major markets for Chitu electric bicycles."

Chitu electric bicycles should seize these markets as soon as possible, using a combination of directly operated stores and franchise stores to establish a complete sales system in China at the fastest speed.

These stores are not only responsible for sales, but also for after-sales service. Chitu wants to build a good reputation.

The competition in the future electric bicycle market will be extremely fierce. To maintain profits, it's essential to capture the most profitable mid-to-high-end electric bicycle market. Both technology and after-sales service are indispensable!

In the past, the domestic electric bicycle market was fiercely competitive, with even industry leaders like Yadea struggling to make a profit. Compared to electronic products like mobile phones, the profit margins were far lower.

If Chitu electric bicycles want to make a profit, they absolutely must hold onto the mid-to-high-end electric bicycle market.

But just because you claim something is high-end doesn't mean users will perceive it as such.

At least the technology of Chitu electric bicycles is better than that of its competitors. Users feel that the operating experience is better than that of its competitors when they ride the bike.

Furthermore, the battery and the vehicle must be relatively durable and not prone to minor problems, and after-sales service must be guaranteed. Only in this way can a good reputation be built, and only then will people be willing to accept the premium price of Chitu electric bicycles, which is higher than the price sold by competitors. Users are also willing to accept this!
Guan Zhenming felt a headache coming on when he heard this. He came from the marketing department of Dongling High-Tech and had personally experienced how Dongling High-Tech's sales system was built.

Dongling Hi-Tech first partnered with various distributors, agents, and retailers to get its products into shopping malls, computer centers, and electronics retail stores of all sizes.

Then, they spent a lot of money to set up Shenzhou flagship stores and Shenzhou specialty stores in cities across the country, and authorized franchisees to establish Shenzhou authorized stores.

To date, Dongling Hi-Tech has established the largest sales system in the domestic electronics industry, initially covering urban and county-level markets across the country.

This is only in China. Abroad, Dongling Hi-Tech has also established long-term cooperation agreements with many sales agents and invested heavily in setting up a shell company called Wanjia Appliance City.

Now it's Chitu Electric Bicycles' turn to establish its own sales system. Guan Zhenming is well aware that in the next few years, Chitu's revenue will all be poured into technology research and development and the sales system. By the end of the year, they probably won't have much money left.

"Chitu Electric Bicycles will eventually establish this sales channel and system, and will acquire all those stores, whether for their own use or to rent to franchisees."

Establishing sales channels is costly now, but compared to the future, it will likely be much more worthwhile. With these self-owned stores, Chitu will probably have a significant advantage over its competitors in the future!

Seeing Guan Zhenming's worried expression, Li Dongling said, "Regarding funding, Dongling High-Tech headquarters can provide some funds for Chitu Electric Bicycle Company."

For the remaining funds, Dongling Hi-Tech can provide backing for Chitu and seek loans from banks!

Red Hare will be short of money in the future, but in reality, it's not that they can't raise the money.

To put it bluntly, as long as Dongling High-Tech announces that it is willing to endorse Chitu, banks will lend any amount of money needed, and they will even compete to lend money to Chitu!
With Dongling High-Tech backing it up, the bank wasn't worried about Chitu not being able to repay the loan; in fact, they were hoping Chitu could borrow more.

"In addition to building its own sales outlets, Chitu should launch the 'AnDian' technology electric bicycle charging station company as soon as possible!"

AnDian charging stations need to cooperate with the traffic police department, fire department, emergency management bureau, urban management department, and power companies, among other departments.

After AnDian is established, it can cooperate with urban communities and property management companies to set up AnDian's charging stations in residential areas!

Just as a sedan chair needs people to carry it, Chitu electric bicycles need the support of traffic police and other departments to promote electric bicycles and give all its buyers a legitimate status.

It's unlikely that a user would buy a Chitu electric bicycle, only to have it impounded on the road, resulting in the loss of several thousand yuan.

Chitu Electric Bicycle Company doesn't plan to take much of An Dian Company's profits. Instead, it distributes the profits to its supporters in these departments, using it as their slush fund in exchange for their continued support. When traffic police and other agencies align themselves with Chitu Electric Bicycle Company, the more electric bicycles sold and the more people charging them, the more charging fees An Dian Company collects. This results in higher profits for these departments, naturally leading them to protect their livelihoods.

Anyone who dares to undermine the livelihood of electric bicycles will be going against the traffic police department, fire department, and other relevant departments.

To put it bluntly, petty thieves who dare to steal electric bicycles will likely face heavy blows from all sides in the local area!
When Chitu used An Dian Technology's charging stations to bring together various parties such as the police station, fire department, emergency management bureau, urban management, power company, community, and property management company, the sales of Chitu electric bicycles in the local area were basically unimpeded.

The initial installation of charging stations requires investment, but once the installation is completed, the rest is just maintenance, which will significantly reduce costs.

Taking a market with one million electric bicycles as an example, if An Dian could capture this market, it would need to install approximately 30,000 charging stations.

This is the largest investment, costing tens of millions, but once completed, after deducting costs, the annual profit will be over ten to twenty million.

The property management company takes a portion of this money, but the remaining amount, though seemingly small, can be used as a slush fund. It can be distributed to the tertiary industries under departments such as the traffic police and fire department, with each company receiving millions. You can tell how good it is!
Once the Chitu electric bicycle goes on sale and the National Electric Bicycle Association is established, Chitu will have the "right to make suggestions" when it comes to promoting electric bicycle standards!

At that time, the patents for electric bicycles will belong to Chitu, the standards will also belong to Chitu, and even the referees will be Chitu's people. What can other competitors use to compete with Chitu? They'll have to lean back tactically!

"Red Hare will establish these as soon as possible."

Guan Zhenming said that Dongling High-Tech's endorsement of Chitu means that any amount of money given to Chitu is far more important than that, as it is equivalent to giving Chitu the greatest authority and support.

If a sales system cannot be established and Chitu cannot be promoted with the help of An Dian Technology, then Guan Zhenming's performance is truly disappointing.

“Zhenming, you’ll need to transfer a group of people from the Dongling High-Tech headquarters’ marketing department to set up Chitu’s sales department.”

Zhang Ao said to Guan Zhenming, who came from the marketing department, that he was part of Guan's team and that he would definitely support Guan.

Chitu is about to start its promotion, and it will definitely need some experienced sales personnel. Zhang Ao let Guan Zhenming choose for himself, which means he is to bring a group of people from the headquarters marketing department.

These are all seasoned veterans in the marketing department, experienced and capable beyond question, who can help Guan Zhenming quickly establish a foothold.

"Chitu's vision should not be limited to the domestic market; the electric bicycle market is not limited to China."

I hope that Chitu can be among the first to go global, allowing overseas users to enjoy the life changed by technology, including Chitu electric bicycles and future electric tricycles developed by Chitu!
Chitu doesn't need to follow the rules; it can launch different products for different overseas regions, such as electric-assist mountain bikes for places like Japan and Europe.

Li the philanthropist patiently explained to Guan Zhenming.

To be honest, things are too complicated in China. In the end, it all turns into a mess. It's not as comfortable as selling the Red Hare cars overseas and earning foreign exchange.

There is a huge global market for electric bicycles, not just the domestic market.

However, we cannot approach overseas markets with a rigid, outdated mindset; that would be stubbornness. Markets like Japan, America, Europe, and even India have different characteristics and user habits, so we must launch different products, as they would all be just copies of electric bicycles.

In places like Japan and old Europe, riding an electric bicycle requires a license and various permits, but modified electric-assisted mountain bikes do not require these. They are the same type of bicycle, so they are naturally very popular in these areas.

People all over the world are the same. There's no reason why people in China like to ride these things for transportation while people overseas insist on riding bicycles for exercise. That would be too inhumane.

It's like how people in old Europe and Japan used to boast that they liked to read on the subway, but the truth is, there was no cell phone signal on the subway...

If electric bicycles can't become popular in a region, there must be various restrictions. You either need to solve them or circumvent them by launching a product that exploits these limitations!
There's also the big-name brand, which criticizes domestically produced cars for not being able to enter the Japanese car market, claiming that Japanese people prefer to drive K-cars that look like pickled fish heads.

But these bigwigs stubbornly refuse to say that buying a car in Japan requires proof of a parking space, while buying a car like the one with pickled pepper fish head doesn't require such things.

When harvesting chives, you need to sharpen your knife first, and you need to figure out whether the chives are standing upright or lying down, and which direction is the best to start.

You can't cut chives with a dull knife. Only a sharp knife can cut the chives when they're not looking. If you cut chives with a dull knife, the chives will feel pain and resist...

(End of this chapter)