Reborn Entrepreneurial Giant

After arranging for Jumei to invest in Kakao and Coupang, Qu Li came back from Kimchi Country and asked Xia Mingfei about the sales of Future Geometry.

Qiancheng, or Geometry Automobile, is an independent pure electric car brand under Qiancheng, and they all use a logo similar to "Xiaopeng".

"As of June, we have been in New York, Boston, San Francisco, Los Angeles, Seattle; Vancouver, Canada; Geneva, Switzerland; Milan, Rome, Italy; Paris, France; Madrid, Spain; Berlin, Germany; Amsterdam, Netherlands; Stockholm, Sweden; Kimchi Country Seoul, a total of 15 city..."

Each directly-operated store currently has only about 10 employees. Assuming an average salary of 5K dollars, 150 people are worth 7.5 million dollars a year. Because the directly-operated stores are located in the suburbs, the pre-renovation cost of a store is 1 million US dollars, and various costs such as rent and equipment maintenance are calculated as 1 million US dollars a year. The 15 direct-sale stores cost 30 million US dollars a year, plus employee salaries and benefits. The annual cost will be about $40 million.

The average selling price of a geometric car is 100,000 US dollars. Assuming a 30% gross profit, it needs to sell 1,350 cars to protect its capital. How can a normal entrepreneur be so reckless, and a new brand will set 1,350 high-end cars just after it starts selling to the outside world? The car plan does not depend on whether foreign consumers will accept it.

"Geometry has sold 6,000 vehicles by the end of June, and delivered 3,800 vehicles, including 3,500 domestic sales, 2,500 foreign sales, and 1,000 sales in the US market..."

"Damn it!" Qu Li cursed secretly. The average overseas market in the United States sold 150 vehicles per city in half a year, and only 20 vehicles in Kimchi Country, far below the average.

"Kimchi Country's direct-sale store started project preparations after the new year, and it took less than two months to complete." Xia Mingfei added that the opening time of direct-sale stores around the world is different, big brother.

"Bangzi!" Qu Li didn't continue to complain.

"We have already cleared up the entire process of car export, but the main problem now is the relatively high transportation costs..." Xia Mingfei continued, with the bonuses of Qu Li and Glory, there is basically no need to advertise at the basic level.

"This means that without considering the investment cost, Geometry Automobile can achieve profitability this year?" Qu Li lowered his head and pondered

"That's right." Xia Mingfei

There are not many domestic cities that have subsidies, but all 60,000 yuan of state subsidies are available, so the direct sales store of Qiancheng Automobile is indeed Qiancheng. The number of direct-sale stores in China is similar to that in foreign countries, but sales in cities with subsidies are obviously much better.

"When we have sufficient production capacity, we will sell right-hand drive vehicles and open stores in Xiangjiang and Tokyo. By the way, we will stop selling after selling 10,000 vehicles this year." Qu Li is a little proud that Tesla's production capacity is not as good as geometry.

"Britain does not import pure electric vehicles..."

"Damn stick."

"What does it have to do with sticks?"

"It's okay, it's okay to scold." Qu Li said casually

Qu Li couldn't figure out how high the cost of Future Geometry was. Anyway, how Huaguan authorized it, and how Glory charged, it was all a mess. In the first half of 2012, Qiancheng Motor’s revenue was about 25 billion, and the scale of losses has shrunk. However, there is no hope of turning losses into profits this year, so the IPO of Hong Kong stocks must be accelerated.

"Can our omni-channel unified pricing strategy be implemented?"

"I think we can wait a little longer..." Xia Mingfei

"When do you think it's best?"

"This has to be considered comprehensively..."

"It's not necessary. Taking advantage of the popularity at home and abroad, dealers who are willing to cooperate with us in implementing unified pricing across all channels across the country will stay. They are unwilling..." Qu Li is not a good person

Xia Mingfei really wanted to ask Qu Li, didn't you promise to "treat dealer friends kindly"? Now this is letting him take the blame?

But Qu Li didn't see it that way, he put forward his idea early in the morning, communicated with Xia Mingfei and others, and wanted to unify the online and offline prices of dealers across the country. Avoid the phenomenon of one price for one store and one price for one car. I really don't know what these car companies think, so they can't serve consumers well.

The long-term backwardness of the country, especially during this period, most entrepreneurs who grew up are used to "reverse engineering". Even if some things are known to be incorrect, they dare not make changes easily. For example, the computer rooms of high schools and universities used to wear shoe covers.

It is not a good thing for the company if people in key positions lack the courage to break the status quo; it is not a good thing if there are no mature and stable people.

"Our 4S store should be able to do it..." Xia Mingfei was willing to make changes

Automakers have strong control over 4S stores, but limited influence over dealers. Coupled with the hot sales of Qiancheng Automobile, it is expected to become a representative of domestic independent high-end brands. There must be some people who are willing to take risks and grow together with Qiancheng Automobile.

Of course, there will be many adjustments. For example, the conventional practice is: 4S stores, financing banks and brand manufacturers sign tripartite agreements, which is equivalent to buying cars from OEMs with loans. Can we only pay a 10% deposit in the future, and pay the balance after the sale or provide a one-to-two-month account period. You can also increase the profit sharing of 4S stores, or learn from Tesla that only provides black or white models. If you want other colors, you have to pay more...

There are still many things that need to be adjusted by Qiancheng. For example, the signboard of the directly-operated store is replaced by "Qiancheng Geometry", while the 4S stores of franchisees can only have "Qiancheng Automobile".

Qu Li came to the Qiancheng Geometry direct-sale store in Beijin to inspect its business conditions. Unlike foreign countries, which choose the suburbs, display it in the flagship store of Honor and sell it through the Internet; domestic direct-sale stores choose relatively prosperous areas where they can buy properties. The warehouse is placed in the suburbs. It's just that the real estate fund under Xiangjiang Investment is the main body that bought the property, and Qiancheng Auto will buy it back at the market price when it has sufficient funds.

Qiancheng Motors used to be a niche brand, and it still sold fuel vehicles. At this time, without increasing the exposure rate, how many users can be attracted by online bragging?

Coarse grain mobile phones can’t compete with Chrysanthemum and Glory, mainly because the number of physical stores is too small at the critical moment of competition, and the cost-effective model is naturally flawed: the company has no profit, how can it maintain its competitiveness? In 2022, about 1,500 Moudi stores across the country (and 2,855 at the end of the year) sold about 1.86 million vehicles, and the single-store sales were about 1,240; Tesla’s 265 directly-operated experience stores sold about 440,000 single-store sales About 1660 vehicles.

Numerous data show that the number of stores is closely related to car sales, but there are many real problems. Tesla’s direct sales model was sued in the United States, and later won the lawsuit. Questioned, Qu Li replied on Twitter: "We have adopted a consumer-oriented model..."

Because the competition in all walks of life in China is too fierce, Qu Li is not worried about the lack of dealers in Qiancheng, but the struggle between OEMs and dealers has just begun, and he was inspired by the geometry of Qiancheng in China. To create troubles and difficulties would be too much of his charisma.

Since they are destined to be placed in the spotlight, it is necessary for them to be the "best"!