Reborn since 1993

Chapter 1351 Taking the Pot Away
As a local lord under Dongke, Guan Zhenming had previously envied Feiyan Technology, Focus Media, and other companies, whose lives were much better than those of Chitu Company.

Now, Guan Zhenming no longer needs to envy others; Chitu has become the one being envied.

Given Chitu's current momentum, establishing its own school and creating a new industry is a foregone conclusion, and no one can stop it.

Moreover, Qilu has also bet on Chitu and the electric bicycle industry. Chitu's position in Qilu has surpassed that of Qingqi Group in the Qilu motorcycle industry.

Qilu's Qingqi Suzuki is well-known, but Qingqi Group is not the leader in the motorcycle industry. Qingqi has an annual sales volume of about 500,000 motorcycles, but the Chitu has already reached one-fifth of Qingqi's sales volume in just one month since it was launched!

Electric bicycles are not as expensive as motorcycles, but their potential is clearly greater. At least the potential of the Chitu (赤兔) surpasses that of the Qingqi (轻骑).

Qingqi Suzuki's sales and revenue in China have reached their ceiling and are unlikely to grow much further.

However, the Red Hare is only just beginning to be sold, currently only in Shandong province. If it were to be sold in other parts of the country, its sales could potentially skyrocket.

More importantly, in the motorcycle industry, Shandong only has Qingqi Suzuki as its brand, and motorcycles do not account for a large share of Shandong's GDP.

If we can support the development of the electric bicycle industry and make electric bicycles a major base in Shandong, then we can achieve great things.

The status of electric bicycles in Shandong is like that of motorcycles in Chongqing. Shandong people can clearly distinguish which is more important!
"Currently, Chitu is very popular in Shandong, and its sales have exceeded our expectations."

To benefit the Shandong market, Chitu's expansion into other markets may take longer than expected!

In his words, Guan Zhenming spoke with a mixture of excitement and some distress.

Right now, the Chitu (a type of electric bicycle) isn't failing to sell in Shandong, but rather it's becoming so popular that when the electric bicycles ignite in Shandong, the flames quickly turn into raging fires.

Given the sheer size of Shandong's population, the demand for Chitu electric bicycles is also undeniably high.

No matter how many electric bicycles Chitu puts in, it can't fill this market; on the contrary, the demand is getting bigger and bigger.

This was originally a good thing, but the fact that the cars were all being used in the Shandong market slowed down Chitu's entry into other markets, since production capacity cannot be created out of thin air.

"In other markets, we need to get our products on the market as soon as possible, and not let other brands get there first!"

Li Dongling spoke to Guan Zhenming on the other end of the phone.

The opportunity has arrived. Once we see that Chitu is making money, a whole host of electric bicycle brands will surely emerge.

The market is there; if Chitu doesn't seize it, other electric bicycle brands won't hesitate.

Guan Zhenming responded and then said, "On the Chitu side, we have increased this year's shipment and production capacity targets."

In addition, Phoenix Bicycle Company in Shanghai also called, saying they wanted to cooperate with Chitu, becoming a parts supplier for Chitu, or even... a contract manufacturer!

The attitude of Shanghai Phoenix Company can be described as extremely humble. As one of the most well-known brands in China, their posture is so low that they are almost on the ground.

Phoenix Company?

When Li Dongling heard that this old brand had actually humbled itself to beg for help from Chitu, and was even willing to act as an OEM manufacturer, one can imagine how difficult life is for a group of old brands in China these days.

"Shanghai Phoenix went public six years ago, but the bicycle industry is currently in a very bad state."

In addition, the bicycle market is too competitive, and the traditional bicycle market is already saturated.

As for mountain bikes, off-road bikes, and racing bikes, although Phoenix is ​​also transforming, these industries are more influenced by bicycles from Taiwan, Japan, America, and other places.

Phoenix Company, based in Shanghai, is currently on the verge of delisting. Its biggest desire now is to retain its listed status!

Guan Zhenming told Li Dongling about the information he had gathered, explaining why Phoenix Bicycles had adopted such a humble attitude.

It's because the company is about to be delisted. A drowning person will desperately try to grab onto even the smallest straw.

"If we cooperate with Phoenix TV in Shanghai, it might be an opportunity for Chitu!"

Guan Zhenming was naturally very pleased with the statement from Phoenix, a well-established brand that is familiar to hundreds of millions of people in the mainland. Now, it had to ask Chitu for help.

Furthermore, Guan Zhenming comes from the marketing department, so he has a very keen sense of the market.

The Shanghai market is a bellwether. Winning the Shanghai market is equivalent to opening the door to Jiangsu Province and Yuhang, and also obtaining an entry ticket to the Yangtze River Delta!

Although Phoenix is ​​not doing well now, its status is still there. If Chitu can enter the Shanghai market through Phoenix, then the cities in the Yangtze River Delta will all be open to Chitu.

Moreover, gaining access to the Shanghai market is equivalent to gaining access to the high-end electric bicycle market.

Therefore, Guan Zhenming made this call to Li Dongling. He believed that Phoenix Company's pledge of allegiance was an opportunity for Chitu!
Li Dongling listened to Guan Zhenming's words but did not speak immediately. He understood that Guan Zhenming's words were indeed a risky move to catch people off guard; of course, if successful, the benefits would be enormous.

Guan Zhenming listened to the silence on the phone and his heart began to race. His plan was quite daring, and he wondered how the philanthropist Li would decide.

However, Li Dongling was not angry at Guan Zhenming's suggestion; on the contrary, he appreciated Guan Zhenming even more.

As the leader of Chitu, if he doesn't even have this much ambition and drive, how can Li Dashanren believe that Guan Zhenming can lead Chitu out of the country and into the overseas market?

"Since we're going to do it, why not be a little bolder?"

After a pause, Li Dongling spoke to Guan Zhenming.

"If you want Phoenix Bicycles to become Chitu's parts supplier and OEM, why not make Phoenix Company also a Chitu-affiliated company?"

"If you're going to help someone, help them to the very end. Phoenix Company in Shanghai is facing a delisting crisis and the risk of transformation. Why not let Chitu help Phoenix solve these dangers?"

Li Dongling's words excited Guan Zhenming, but also left him somewhat puzzled. "Mr. Li, what do you mean?"

"The headquarters of Dongling High-Tech can support Chitu Company to invest in Shanghai Phoenix Company, and not only Phoenix, but also other major bicycle brands such as Forever and Flying Pigeon. Chitu can also invest in them."

These bicycle companies supply parts and even assembly plants to Chitu electric bicycles. Chitu electric bicycles can also leverage these companies' sales channels and stores for distribution, allowing their stores to sell Chitu electric bicycles and provide after-sales service.

The decline of the bicycle market is a foregone conclusion, and no matter how famous or well-known the brand is, this will not change.

With the disappearance of the bicycle market, it is estimated that both bicycle production line workers and stores will have to shut down or close down on a large scale, and a large number of employees will likely go home, which is inevitable.

However, by partnering with Chitu, these issues could be avoided, although working for Chitu might seem like a loss of face for an established brand.

But between losing face and starving to death, which is more important?

"Once they become part of the Chitu Group, if companies like Shanghai Phoenix want to transition into the electric bicycle market in the future, Chitu can license its patents and provide them with technology, lead-acid batteries, and more!"

Li Dongling spoke to Guan Zhenming, causing a storm to surge in the latter's heart.

He wanted Shanghai Phoenix to manufacture products for Chitu, hoping to enter the Shanghai market through their channels. But Li the Philanthropist wanted to take advantage of them and wipe them out completely.

Moreover, Li Dongling seemed to intend to support bicycle brands such as Phoenix in entering the electric bicycle market, which made Guan Zhenming even more uneasy.

Other companies would be afraid of having another competitor, but Li Dashan seems to be cultivating one.

“But if Shanghai Phoenix also enters the electric bicycle market, it might become a competitor to Chitu…” Guan Zhenming said with some concern.

"If you don't want brands like Shanghai Phoenix to enter the electric bicycle market, does that mean they won't enter at all?"

"Even if you can stop brands like Phoenix from entering the market, can you stop other brands as well?"

Li Dongling's words left Guan Zhenming speechless.

"Investing in brands like Phoenix, making them brands under Chitu and allies, is better than making them competitors!"

"Furthermore, having these allies also allows them to compete with other e-bike brands!"

Li Dongling said leisurely, "Two fists can't beat four hands, and even a fierce tiger can't withstand a pack of wolves. If Chitu Electric Bicycle wants to maintain its position as the industry leader, it also needs some allies."

Supporting brands like Phoenix to compete with other brands is better than Chitu engaging in price wars every day.

Moreover, by investing in the other party, Chitu will also receive dividends from the profits earned by brands like Shanghai Phoenix, so it will not lose money in the long run.

"Don't worry, Mr. Li, I know what to do!"

Of course, achieving all this also tests Guan Zhenming's skills. He has invested in companies such as Shanghai Phoenix, and it's a matter of whether he has the skills to manage these established companies.

If used well, these established brands can become a sharp sword in Chitu's hands; if used poorly, they might cause chaos and turmoil.

A moment later, Guan Zhenming responded, knowing that this was Chitu's chance, and it remained to be seen whether he could seize it.

Guan Zhenming then told Li Dongling about what had happened at An Dian Technology in Qilu.

After hearing this, Li Dongling simply nodded without showing any emotion. It wasn't just in Qilu; he figured that when An Dian was promoted in other places in the future, this kind of trouble would probably be inevitable.

What we need to do is to deal with whatever comes our way; expecting to avoid any setbacks is just wishful thinking.

Even with giant companies or certain national-level projects, there are still those who are blind to the danger, wanting to snatch chestnuts from the fire, gambling on the possibility of success.
What An Dian needs to do is to bring more parties into its camp. Only when there are enough allies can it sweep away all sorts of monsters and demons!
(End of this chapter)