The Industrial Giant Reborn.

Chapter 504 Red Bull’s Global Plan

"Mr. Chen, when it comes to foreign exchange balance, it's not that there's no chance for changes at all, but it's very difficult in the food industry, and such a request must be approved by the central government, and our local government can't make the decision." Director Ma thought for a while and said.

The importance of foreign exchange in this era exceeds all other economic factors. At present, the country's foreign exchange is under unified management by the state. That is to say, no matter where it is, private enterprises, foreign-funded joint ventures or even state-owned enterprises, all the foreign exchange earned It must be submitted to the State Administration of Foreign Exchange and reapplied when the local area needs foreign exchange in the future.

However, the policy has been loosened a bit recently, which may be to encourage local enthusiasm for earning foreign exchange. After the foreign exchange earned by local governments exceeds the set target set by the central government, part of it will be spent by local governments themselves. This may also be because the central government cannot They have the energy to review and approve so many applications and decentralize power appropriately, but this can only be done by local governments who have the decision-making power for a small amount of foreign exchange, not for large amounts.

Even the Shanghai City, the biological son of the Republic, only has a little more autonomy. Maybe Shenhai City is a little more special because it is an experimental site for reform and opening up.

In order to preserve foreign exchange and attract overseas investment at the same time, it is necessary to reach an agreement on foreign exchange balance with foreign-funded companies before cooperation. Otherwise, foreign-funded companies have made money domestically, but they have reasons to cash out the profits, such as SAIC Volkswagen. If [-] engines are not exported, then they have earned [-] million US dollars domestically. If they want to be transferred, the central government cannot refuse, otherwise it will be noticed by the global media and other foreign investors will no longer consider investing.

Therefore, even though a lot of big investments have been missed, the central government still adheres to the foreign exchange balancing policy. Otherwise, once the foreign exchange is gone, the economy will completely collapse.

However, if it is a small-scale enterprise that involves a special industry and cannot produce it domestically and needs to import it, then concessions can be considered.For example, at the beginning of this year, the American company 3M came to the mainland to invest in the production of a special tape. It has a wide range of uses, but the scale is not very large. Moreover, this tape is monopolized by 3M. If they don't agree, they can only go to the United States to buy it, which will consume more foreign exchange. In the end The central government also agreed to this request, and 3M is also preparing to invest in a small factory in Shanghai by the end of the year. It is still a wholly-owned enterprise. It is the first wholly-owned enterprise outside the deep sea zone in the history of the mainland.

Even if concessions are made, it is because it is beneficial to foreign exchange reserves. However, the food industry obviously does not have such treatment. The larger the scale, the more it will consume the country's foreign exchange.

"I know this, but what if I promise that within ten years, the RMB earned domestically will not be converted into foreign exchange?" Chen Zhiwen said. The matter of foreign exchange balance is a current national policy and no one can change it. There is no way around it. The country is also trying to integrate into global economic and trade cooperation. It is not that foreign capital is not allowed to make money in the country, but the problem is that the foreign exchange is too short.

Although his Midea Gigafactory can obtain a large amount of foreign exchange by exporting products, Chen Zhiwen also needs foreign exchange from exporting electrical appliances to balance his domestic electrical appliance sales, and it is troublesome to share the foreign exchange balancing policy for two independent projects. Therefore, he needs Red Bull itself has independent authority for large-scale sales in the country.

"If that's the case, I can apply and report to the city leaders." Director Ma thought for a while and asked: "What will happen in ten years?"

"Ten years from now, I think the country's policies will definitely change. By then the economy will be better, there will be no shortage of foreign exchange reserves, and the policy of foreign exchange balance may not exist." Chen Zhiwen smiled and said: "If there are still If so, how about continuing to maintain the current agreement?"

In the original history, in the early 90s, when foreign exchange reserves exceeded 200 billion US dollars and exports were increasing, the policy of foreign exchange balance naturally disappeared. In the original history, Master Kong was established in 92. In two years, he became the overlord of instant noodles in China and made a lot of money. However, he had no export ability at all, but his business was still going smoothly.

"That should be fine." Director Ma nodded and said.This promise is acceptable, and it will be ten years from now. Even if there is another quarrel, it may not have anything to do with him. Besides, in ten years' time, if domestic foreign exchange is still the same as it is now, then the economic development will also be It was such a failure, and he was more willing to believe that in the near future, his country would no longer be short of foreign exchange, and even ordinary people could buy foreign products at will.

"Mr. Chen, the current Red Bull factory in Shanghai mainly relies on the export of Red Bull drinks to balance foreign exchange. I also know that Red Bull sells very well abroad, so why not continue to use this model?" Director Ma asked again road.

"This method can be used on a small scale, but not on a large scale. Director Ma, trade balance is needed everywhere in the world. Whether it is a country or an individual, we cannot just make other people's money. This is why, We are all competing all over the world, and there is no reason why a high-profit value-added product like Red Bull should only be produced in Asia." Chen Zhiwen shook his head and said.

The profits of Red Bull are indeed very high, and the value per unit volume and weight is high. Whether it is produced in Hong Kong or in the Mainland, it can be sold all over the world. This is different from the high transportation costs of other drinks.However, such a high profit can only cover the labor costs in Europe and the United States. If you make a lot of profits in other regions, it will not benefit anyone at all, and it will not work.For example, Costco in the United States can create a large number of jobs in the United States, which can be regarded as giving certain benefits to the United States. However, even so, many supermarket goods are still purchased in the United States. Otherwise, they are imported from Asia and will definitely be targeted. Unless the United States itself no longer has this industry, there is nothing we can do.

The labor-intensive industry of home appliances is almost out of business in Europe and the United States. Home appliance brands in Europe and the United States have also begun to transfer production lines abroad. Therefore, it is not a problem for Midea products to be sold in the United States, even if they are produced in the Mainland or elsewhere in Asia. As long as the price of goods is low enough, it can also benefit American consumers and reduce inflation.

But the same cannot be said for the beverage industry. Including beverages with large sales such as Very Coke and Red Bull, Chen Zhiwen is also preparing to produce and sell them in some large countries, such as the United States, Europe, Australia, South America, etc.

As for Asia, it is reserved for Hong Kong. As a Hong Konger, he also needs to leave some industry for Hong Kong. Red Bull’s high profits do not care much about the labor costs in Hong Kong. Moreover, Red Bull’s factory will be in Tin Shui Wai, and the labor costs there will definitely It is cheaper than other places in Hong Kong, and it is close to Shenhai City and has industrial supporting facilities. At the same time, I also have a large amount of undeveloped land in Tin Shui Wai. If I build Tin Shui Wai into the last industrial base in Hong Kong, I can get a higher rate of real estate. Return.

Therefore, the future positioning of Red Bull's factories in the mainland is to produce and sell by itself, but that is the future. The current economic level of the mainland cannot support the consumption of semi-luxury goods like Red Bull unless it is expanded to foreign markets on a large scale. The share of production capacity will be given to the country, but this is not in line with Red Bull's long-term plan. If it is targeted by some members of parliament in Western countries, it will be more than worth the gain.

"What will Red Bull's factory mainly produce in the future? Very Coke?" Director Ma asked. He also knew something about foreign countries and understood what Chen Zhiwen said.

"Very Coke has sales in China, but it's still not enough. My flagship product will be Master Kong instant noodles," said Chen Zhiwen.

The positioning of Very Coke in Europe and the United States is lower than that of Coca-Cola and Pepsi. There is no way, they are already stable in those markets. If you want to seize the market, you have to make changes in technology or price, but Coke or any beverage, the technology is basic It doesn't exist on the Internet. Whether the taste is good or not depends on the individual. They are all big companies, so it won't be any different. In this case, it can only depend on the price.

In the domestic market, the positioning of Very Coke will be slightly cheaper than Liangle, or the volume will change, but the gap will not be as big as overseas, and even if the price is low, it is still too expensive for ordinary people in the mainland. Well, in the 90s, sugary drinks were considered luxuries for many families. In an era when popsicles cost ten cents each, few people would buy a two-dollar Coke.

However, there are still some rich people, and this market still needs to be fought for, because only by winning these people can we get more ordinary people's markets in the future. However, the current market demand is not enough for a large factory to produce, but instant noodles No.

In an era of scarcity, instant noodles are high in oil, calories and salt, which most people's bodies need. Normal people will find instant noodles very fragrant when they eat them. Moreover, instant noodles are small in size and light in weight, which is completely opposite to Coca-Cola. At a time when domestic road traffic is not very good, transportation costs are extremely important.

In the original history of Master Kong, demand exceeded supply in the first few years, and the number of workers expanded from a few hundred to tens of thousands. In the fifth year, national sales exceeded [-] billion packages, and in a few years it built a super food instant noodle empire.

Although that was 8 years later, and the economic environment was different, it shouldn't be too different. The only problem was that it couldn't be sold freely.

"Instant noodles? Master Kong's instant noodles are indeed very good. I have eaten them several times and I like them very much. This thing must be very popular." Director Ma nodded.As a local in Shanghai, although there are restrictions on the self-produced Master Kong, it is still no problem to sell here. Many people in Shanghai have eaten it and the feedback is very good. In the same way, the same result should be achieved when expanding to the whole country. Unless some places have a lighter taste due to water and soil problems.

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(End of this chapter)