Rekindle 2003

Chapter 979: A fan passed down through three generations, but it still exists

Long Xingyuan stood up and prepared to invite Qing Yun back to the conference room to continue discussing the details of the cooperation.

But at this moment, Qing Yun smiled and held him back, lighting another cigarette, "No hurry."

Long Xingyuan sat back on the bench with doubts.

Qing Yun smiled and said sincerely, "Brother Long, have you ever thought that the tertiary industry factory you set up may not be able to continue."

Long Xingyuan was a little confused when he heard this and said, "No, according to historical experience, although there is a chance of failure, most of them are successful. The vitality of the market economy will change the previous big pot meal model."

Military-to-civilian transition, old-age renewal, how much does this kid know about these kinds of things?
If he could afford to offend the God of Wealth, he would have said, you are a coward, you know nothing!
In Long Xingyuan's view, the reason why those old factories went bankrupt and restructured was entirely due to the pain of the transformation period.

In the planned economy era, state-owned factories did not have to worry about orders at all; they just had to produce according to the tasks.

However, after entering the era of market economy, due to strategic adjustments, especially the state-owned factories built for the purpose of third-line military industry, they naturally could not survive without orders.

But if it can be changed to produce other things, such as washing machines, bicycles, televisions, etc., it will be able to occupy a place in the market with its military-grade quality.

Qing Yun shook his head when he heard this, and he passed a cigarette to someone and continued, "I learned about Qishan's overall economic environment before I came here.

There are many third-tier enterprises in this place, but why is it not as easy to convert military to civilian in Qishan as in other places? I wonder if you have ever thought about this, Brother Long?"

Frankly speaking, there is currently no state-owned factory in Qishan that has successfully transformed.

Including Qinchuan Group.

If the machine tool industry wasn’t so important, Qinchuan Group would have ceased to exist once the banks ran out of money.

In a few years there will be one, Schneider Electric.

However, it is a Sino-foreign joint venture, and foreign capital accounts for the majority, holding 70% of the shares. It can no longer be said to be a state-owned enterprise.

Without waiting for Long Xingyuan to say anything, Qing Yun continued, "It's because there are no solid products in the entire Qishan."

He glanced at Long Xingyuan and said, "Brother Long, don't be unconvinced. Let me give you an example of the military-to-civilian transition in Western Shu.

Jinfei manufactures aircraft, and its three military-to-civilian products are refrigerators, air conditioners, and civil aircraft parts, all of which are related to its original business.

The Qianfeng Water Heater Factory, formerly the Ministry of Electronics Industry's 766 Factory, previously produced radio instruments. Its military-to-civilian electric pulse continuous discharge ignition technology was of a higher grade than the piezoelectric ceramic ignition technology commonly used on the market at the time.

You can see that Xishu's successful military-to-civilian transformation and old-for-new technology paths for military and civilian products are related or even identical."

“Qishan is different. For example, one of your factories used to make wooden grenades, but now it has transformed into making electric fans.

There was also a man who made files and switched to making bicycles.

Have you noticed that the two technical paths are completely inconsistent and have nothing to do with each other.

The whole of Qishan has always been imitating, producing whatever makes money, but in the 80s and 90s, not a single product was successful.”

As Long Xingyuan listened to Qing Yun's analysis, his expression gradually became serious.

"I don't know if you have done any research. You think the low production efficiency is caused by the big pot, but it is not the case. In addition to the product route, there are many other reasons."

Qing Yun counted on his fingers and listed them one by one: "First, adaptability to market demand. Military products and civilian products are two completely different fields. You need to develop and produce civilian products that meet market demand, which requires a lot of market research and product development.

For example, the tertiary production factory you want to transfer used to produce Yutu brand bicycles, right?"

Seeing Long Xingyuan nod, Qing Yun chuckled, "Once, this was the highlight of Qishan's military-to-civilian conversion, but why did it go from hot-selling to unsalable and finally discontinued in just four years?"

Without waiting for Long Xingyuan to answer, he shook his finger and said speechlessly, "I would believe you if you said this bicycle is for military use. It's obviously a Mao-style bicycle from the 50s.

Strong and durable, but bulky and heavy. Brother Long, look at the bicycles on the street now. Are there any with this shape? "

Following Qing Yun's finger, Long Xingyuan looked at the bicycles coming and going on the street and fell into deep thought.

He seemed to think too simply, thinking that all he had to do was take over the old factories and fill them with laid-off workers.

“Secondly, the difficulty of technology conversion.

Although military technology is advanced, it may not be applicable when transferred to the civilian field.”

Long Xingyuan nodded. These were issues he had considered before.

Qing Yun continued: "There is also the issue of capital investment. Transformation requires a lot of funds for research and development, marketing, equipment updates and personnel training.

In addition, the management system and corporate culture also need to be reformed to adapt to the requirements of the market economy.”

“These are small things, but the lack of talent is a big problem.” Qing Yun added, “Transformation may require new skills and expertise.

Your current employees may lack these skills, not to mention those workers who were laid off in the 90s?
I admit that most of those laid-off workers are probably skilled workers, such as fitters and welders of certain levels. There must be quite a few of them, and they definitely have work to do.

However, going back to the technological transformation just mentioned, this requires additional R&D investment and technological innovation. Those laid-off workers cannot complete such a task. You have to recruit new talents to solve it. "

Long Xingyuan frowned, he knew that these were practical problems.

Qing Yun did not stop and continued, "There are also market competition pressure, policy and regulatory restrictions, supply chain and sales channel reconstruction, consumer perception changes, market access barriers, etc...." At this point, he patted Long Xingyuan's knee and looked into the distance.
"Brother Long, you really think it's too simple. This is not a problem that can be solved by just catching up quickly and exercising subjective initiative.

The market has changed now. This is no longer the era of material scarcity of the last century.

The market in the 80s was in the early days of reform and opening up, with everything in ruins, shortages of materials, and supply exceeding demand.

At that time, as long as it could be produced, almost everything would be wanted and there would be a market for it.”

He retracted his gaze, turned to Long Xingyuan, and continued: "But today in the 21st century, as we embrace the world, the current market has become a globalized, information-based, and highly competitive market.

Consumers' demands are more diversified and personalized, and their requirements for product quality and services are also higher.

At the same time, the speed of technological upgrading is unprecedented, and the competition between enterprises is no longer just a competition of products and prices, but also a competition of innovation ability, brand influence and market response speed. "

Qing Yun shook off the cigarette ash lightly and said, "Brother Long, the gear grinding machine occupies 80% of the domestic market because of the technology and cost-effectiveness of your Qinchuan Group.

But the bicycles, fire extinguishers, motorcycles, refrigerators you plan to make... these are not the gear grinders that are in short supply in your Qinchuan Group.

You have to realize that the current market environment is completely different from the past. You can’t simply rely on Qinchuan Group’s past experience to cope with current challenges.”

In his opinion, to put it bluntly, Long Xingyuan was blinded by the seller's market of gear grinding machines.

Frankly speaking, Long Xingyuan has enough to be proud of.

At this time, there are indeed not many products in China that can dominate the market like Qinchuan gear grinding machines, and you have to pay the full amount in advance and wait in line.

But what he needs to do now is to transform the market into a bloody sea instead of a red ocean.

The production capacity of these things has been in excess since the last century, and we have to face the influx of a large number of foreign-funded products after embracing the world in the past two years.

Being strong and durable is not enough.

Bat electric fan, "one fan is passed down for three generations, and it is still there even when the person is gone."

The product quality is excellent, but the factory is gone.

Not to mention repurchase rate or something like that, but the design of the product.

Products that lack aesthetic appeal and do not meet the public's growing aesthetic needs will only be eliminated.

Emperor Yun dared to guarantee that if Long Xingyuan did not change his mindset, the tertiary industry factories he had established would go bankrupt again within two years.

By then, we might not even be able to pay back the money we borrowed from the Yanhuang Group.

Will you sue me then?
“Brother Long, you have to realize that the current market environment is completely different from the past.

We cannot simply rely on past experience to meet current challenges.

We need new ideas, new strategies, and new talents to adapt to this rapidly changing market."

Long Xingyuan was silent.

He actually knew that what the young man in front of him said was right.

The market has changed. It has become complex and volatile. It is no longer the era where you can succeed just by daring to do it.

His actions were not blinded by greed.

Rather, it was the current situation of laid-off workers in Qishan that made him want to give it a try.

Not only for my own future, but also for this hometown.

Qing Yun actually understood Long Xingyuan's thoughts very well.

People live their lives for money, profit and fame.

No one wants to walk through this world in obscurity.

"Mr. Xiaoqing, I am deeply inspired by your words." Long Xingyuan's shoulders also sank, and he said with a dull look, "Maybe, I am just wishful thinking."

Qing Yun twitched his lips and handed over another cigarette, "Maybe we can change our thinking to solve this problem."

Long Xingyuan held the cigarette but didn't smoke it. He just put it to his ear and asked in confusion, "What's the change of thinking?"

Qing Yun lit a cigarette and exhaled a puff of smoke. "You will be my OEM. Of course, we need to set up a joint venture company. You'd better bring in a state-owned enterprise. My shares cannot exceed 50%.

emmm...the equity ratio of Sanqin Province will be split in half with me. I will authorize 1% of the voting rights to Qinchuan Group, and you will have the majority of seats on the board of directors.

By doing this, you are the second or third largest shareholder, and absorbing laid-off workers does not count as allowing them to return to the state-owned system, which is in line with the country's major policies.

As I don’t have actual control, I don’t need to consolidate the financial statements.

In name, this company is a mixed-ownership reform company in Sanqin Province. You have explained it to me, and I am too lazy to look for it. "

(End of this chapter)