Return to Hong Kong Island for a Century

Chapter 260 Give a Push (First Update)
The dealer conference was held in the hotel's grand ballroom, which had been rearranged.

There were 841 people attending the dealer conference, including 325 companies or individuals. These companies or individuals did not attend alone; they came from more than 50 countries around the world. In addition, there were 31 journalists.

"Hello everyone, I am Li Song, the chairman of Baisheng Company. It is a pleasure to meet you all here." Li Song went directly to the stage and took the microphone to welcome everyone. On the stage, there were 6 motorcycles of various models: 90, 125, 150 and 250. Among them, the 90 and 125 models had modified and heavy-duty versions, the 125 was a touring motorcycle, also known as a cruiser, and the 250 was a road bike. There were also various motorcycle accessories.

It also includes several models of outboard motors, along with instruction manuals in both Chinese and English.

Wow!
The accomplices, who were naturally arranged to do so, began to applaud.

"Our company, Parkson, is a young company with diversified industries and tens of thousands of patented technologies."

"Our Parkson company has three wholly-owned subsidiaries and dozens of joint ventures in mainland China," Li Song said, as the distributors below looked at the product brochures and listened to him.

"The BMW motorcycle factory is the first enterprise our company invested in. A total of 120,000 motorcycles of the 90, 125 and 150 models have been produced and sold, and there are also 60,000 orders waiting to be produced."

"We have adopted a brand-new one-piece die-cast aluminum alloy engine, which is lighter and more fuel-efficient than similar products. In addition, the number of parts has been reduced, which effectively reduces quality problems caused by parts assembly."

"In addition, we offer diversified solutions..." Li Song said on stage.

Those in the audience weren't just looking for collaborations; some were there to gather information. Representatives from Suzuki, Honda, Yamaha, Harley-Davidson, Ducati, and others all came.

Only these motorcycle manufacturers know how impressive the patents applied for by Baisheng Company are; at least technically they are top-notch.

Of course, technology is technology, and the market is the market.

The people from these motorcycle manufacturers didn't expect so many people from BMW's motorcycle factory to come this time.

Our customers are not only from Africa and Southeast Asia, but also from Europe and the Americas.

Li Song originally didn't intend to develop markets in developed countries in Europe and America, but he overlooked one point.

Since motorcycles have a market in Europe and America, it's natural that some people would see a business opportunity in them.

After all, BMW motorcycles are more than 30% cheaper than others, according to data released by Li Song at the last new product launch.

Price is the primary competitive advantage for any product, regardless of location or market.

"We're in trouble. This kind of road bike is having a huge impact on us." The Ducati representative looked at the 250 model road bike, which featured a V-twin liquid-cooled engine and had a very cool design.

"I knew I was in big trouble as soon as I saw their design patent application, but the company's board of directors was too slow to react."

"It's not just a problem for us, the bigger problem is for the Japanese. They're now going all over the world promoting their outdated motorcycle technology and production lines."

"It won't be that easy. The entire market will be impacted by BMW motorcycles, especially the 50cc, 80cc, and 125cc models, which dominate the market."

“No manufacturer is willing to spend money to buy this production line at this time and then face the impact of BMW motorcycles.”

"But we don't have much time left. The other side will launch a 250cc road bike within three months. We need to be prepared for the market impact."

“Most importantly, BMW motorcycles are very flexible in accepting payments, and they can also accept payments for various goods.” The three people from the Ducati factory discussed in hushed tones in Italian.

"There are also rumors that certain BMW motorcycle patents led to a complete redesign of Suzuki's next-generation motorcycle."

People from several small, independent motorcycle companies already knew they were in big trouble.

Before that, many countries around the world were willing to acquire small amounts of motorcycle technology and production lines, especially some populous countries such as China, Brazil, Vietnam, India, and Bangladesh.

But now the mainland doesn't need it anymore, and the other countries are all watching and waiting.

Because these countries, apart from having complete industrial chains in their inland areas, have to import the rest of their technology and production lines, such as various special steel materials.

Materials for gearboxes, bearings, chains, and some plastic products.

The small country cannot share all its material technologies, and even if it licenses them to other countries, they may not be able to produce them because it lacks a complete industrial chain.

Moreover, due to their industrial base, these countries lack the technology to produce many core components and need to import them, which leads to a problem: high costs.

"That damn guy, he's such a master of hype! He always creates some hot news before every interview!" The Suzuki company staff looked at Li Song, wishing they could shoot him.

The small company is now unable to sell its outdated technology and production lines, resulting in significant financial losses. Furthermore, its market share has been taken over by BMW motorcycles.

BMW Motorrad has expanded rapidly in the Southeast Asian market, partly because its technology is in no way inferior to that of its own company, and partly because it offers some differentiated services.

For example, they launched some rainforest accessories in Southeast Asia, such as rainforest tires.

Another option is to enlarge the trunk so that you can carry more things.

Enlarging the side steps allows for more passengers to ride.

There are also windshield accessories, as well as raincoats for two, three, and four people, so that even if you drive with your family in the rain, they won't get wet.

Heavy-duty chassis and suspension, heavy-duty tires, and a cast iron engine transform the motorcycle into a tireless vehicle for transporting passengers through the rainforest.

Then the news spread like wildfire. And with the impact of the temple incident, BMW motorcycles also came to the attention of European and American countries.

In addition to Li Song's personal fame.

Looking at so many distributors or individuals from over fifty countries, I feel a chill in my heart.

These are all rivals!

Moreover, the Japanese found that they had lost the huge mainland market, and the number of motorcycles exported to the mainland plummeted.

"Yeah, this guy is a master of disguise," the Honda representative remarked.

"I heard you've been in contact with businessmen in India?" The Suzuki representative looked at the Honda representative. They recognized each other because Japan has a motorcycle industry association that coordinates motorcycle companies in the country.

"Hmm, you're also in contact?"

"Of course, the price offered by the third leader is a bit too low."

"That's their quote; we can't lower the price."

"I'm afraid that Parkson will get involved."

"Probably not, after all, the guy on stage is involved in the temple incident."

"The temple incident was orchestrated by India itself, in an attempt to steal the temple's gold, which is said to be around a thousand tons. They know this themselves, and naturally, they have no real conflict of interest with the guy on stage."

"This guy has authorized seven companies in mainland China, and the price of his 90 model is even lower than the ex-factory price of our 50 model." The small companies in Japan have no choice but to accept that the motorcycles they export to mainland China are priced much higher than those produced in mainland China.

"Let's have a meeting when we get back and try to take over the Indian market. India's industry is quite good."

"Ok!"

"We can support Indian products to compete with products from mainland China."

This is why small Japanese companies can go so far abroad, because of their domestic industry associations, which are ultimately controlled by a few companies.

This industry association plays a role in communication and coordination.

Moreover, the economic system of small countries dictates that they can only engage in processing of supplied materials and are technology-based enterprises.

If there were no interference, Japan's economy would be even more developed.

The Japanese chip industry nearly bankrupted Aramco's chip companies, and the Aramco government had to intervene to finally destroy them.

Another example is the shipbuilding industry. Japan was about to take the lead in shipbuilding, but then South Korea, supported by the United States, took away its business.

Of course, in the end we snatched the business from the Koreans.

At this moment, what Li Song said on stage attracted everyone's attention.

"Next, our company, Parkson, will produce some products that don't involve much technology locally. We can either license our technology or invest in them as equity, such as this extended pedal."

“We will give priority to local distributors, who can provide not only technical support, but also financial support, and even manufacturing equipment support.” Li Song does this in order to further reduce costs.

Differentiated services include some components that are used in the local area and have little technological content. These components will eventually be replaced by local counterfeit products, so it is better to support some distributors to produce them sooner rather than later.

This is also a plus.

“Our company’s philosophy is win-win cooperation, so we establish exclusive distributors in every country,” Li Song added.

Exclusive distributors definitely have KPI targets. If they fail to meet these targets, their deposit will be deducted, or their exclusive authorization will be revoked.

The purpose of this is to prevent anyone from doing something malicious. If we don't do this, other motorcycle manufacturers can easily obtain more exclusive licenses and then simply stop selling your products and shelve them.

"Our company will also conduct advertising promotions globally, and our advertising investment next year will exceed HK$100 million." Li Song is right, the advertising budget will only increase, but how to advertise is another matter.

They sponsor programs, do product placements, and of course, advertise in print media and build billboards in various countries.

Li Song spoke for over an hour, and then the distributors visited the exhibited products.

"Boss, I just received news that the third boss is in contact with the notebook manufacturer." After Li Song finished speaking and stepped off the stage, Tian Jiahui whispered to him.

"Who brought the news?"

"The third boss called to inquire about the technical authorization for our motorcycles; he brought it up himself."

"We can talk, stir things up a bit." Li Song knew the Third Boss's character well, and chuckled to himself, thinking he would give the Little Boss's company a push and make them fall into the Third Boss's trap.

(End of this chapter)