"In this way, at the end of this year, we will make a summary of all the funds. In addition, how is the work done this year with those small families, small poor families, small clans, etc.?" Li Ke asked about the most critical strategy of rural areas surrounding cities. .
It is not difficult to dig out the roots of a powerful family. The strategy of surrounding the city from the countryside can only be said to be eternal!
No matter how powerful a wealthy family is, if they lack the most basic people who can be plundered as a foundation, they are just paper tigers.
"At present, among the ten provinces in the world, we have probably completed about 60% of the work. Basically, all provinces, counties and states have contacted some of them. We are making cotton (kapok, not cotton), linen, silk and silk looms, and the spinning machines have been given to some of them. The small families have all carried out trial production, and when they heard that they were cooperating with His Highness, they all expressed their willingness." Tian Meng said.
"But we have also compiled some urgent problems that need to be solved." Tian Meng said.
"Say." Li Ke sat up straight.
"When we contacted these small families and signed the contract, the news passed back through the internal business bank, many families have responded to a problem, that is, if we take over this business, it may cause social turmoil. It is turbulent because a considerable number of people raise silkworms, sell silk, and grow various hemp and kapok crops. In fact, they produce and sell their own crops."
"That is to say, they grow their own crops, and then spin their own yarn, or spin them into flax, and then weave them into silk, linen, etc. to pay taxes, sell, and buy things."
"If we replace all these people, it means that these people may not be able to survive." Tian Meng said.
Li Ke nodded seriously. After all, he is a modern person and does not understand this era. The emergence of spinning machines and looms will definitely replace the work of a considerable number of people, but Li Ke originally wanted to replace Most of the weavers from well-established families, etc., now it seems that these people may have the greatest impact.
So this is why Li Ke came up with this plan this year but did not directly implement it. He needed to investigate the actual situation.
If the market is formed like this, it means that there are not many raw materials that Li Ke can purchase.
If you want to do this, there is only one way. Rely on your own advantage of increasing productivity and kill the related industries of the powerful family first.
how to do? This is not too simple. There is no need to use the strategy of surrounding the city from the countryside.
If you want to kill them, you must first analyze which part of the real industry the powerful family occupies.
They occupy the middle part, that is to say, they are responsible for production. They do not produce silk, linen, and cotton. They only buy raw materials, hire people to produce them, and finally produce finished products, especially high-end silk.
Li Ke thought of a very typical case. How did the domestic photovoltaic industry rise and sweep the world more than a thousand years later, and then be divided and cannibalized by European and American powers, then return to the country to expand domestic demand, and finally sweep the world again? A heart-stirring business history, Li Ke has read relevant information.
The start of the photovoltaic industry can be traced back to a speech given by Carter next door in 1979. At that time, Carter said that this was the greatest adventure for the entire country. Carter was right, but he said it for the wrong country.
In 1996, the World Solar Energy Conference was held in Zimbabwe. At that time, photovoltaics entered Rabbit's field of vision, because at that time, Rabbit had a population of 76.56 million without electricity. These populations are concentrated in the northwest region, far away from the power grid, with small loads and wide distribution. If the national grid directly pulls them over, it will cost a lot of money. Photovoltaics can reverse all this.
In the second year of the Zimbabwe Conference, Rabbit began to implement the Bright Project, using solar and wind energy to establish thousands of independent power generation systems in the west, solving the power problems of more than 700 villages.
It was precisely because of this project that the first generation of photovoltaic companies in the country were created, including Suntech, LDK Solar, Trina Solar, etc. Unlike other industries that endured humiliation and bear the burden, Rabbit's photovoltaic industry had a dazzling start.
In 2004, under the pressure of various environmental trends and other ideological trends, Europe and the United States began to promote energy transformation. Photovoltaics and wind power were the obvious choices. Stimulated by industries from many countries, the scale of the world's photovoltaic industry expanded rapidly, intersecting with the high-end ones in Europe and the United States. These domestic industries started from Enterprises coming out of rural areas in northwest China understand that the core of photovoltaics is cost, and Rabbit’s advantage is also cost.
So Rabbit's photovoltaic companies collectively went overseas and ushered in their first highlight. In 2005, Suntech and other companies were listed on the New York Stock Exchange. By 2007, there were thousands of Rabbit photovoltaic companies! It accounted for half of the world's photovoltaic companies at that time.
But at that time, Rabbit's photovoltaic companies lacked manufacturing technology in the upstream and power plant technology in the downstream. The entire industry was concentrated on photovoltaic components, that is, the midstream.
Moreover, 90% of its raw materials are imported, 90% of its products are exported to Europe and the United States, and 90% of its core technologies are not in its own hands.
So these fat and delicious photovoltaic companies ushered in from Wall Street to the City of London to Frankfurt, and all the themes became one, photovoltaic companies hunting rabbits.
In the international market in 2005, the price of polysilicon, the main raw material for photovoltaic panels, was US$40. Therefore, these European and American suppliers took a fancy to the lack of technical weakness of Rabbit Photovoltaic Enterprises and directly drove the price of silicon crystal raw materials. By 2008, in three years, polysilicon soared to US$500. USD/kg, increased 12 times!
As midstream processing companies, these photovoltaic companies have no pricing power for the downstream, and the price depends entirely on the buyer's bid. Therefore, all foreign buyers buy at lower prices. These photovoltaic companies were once in a dilemma of having to sell at a loss.
So under the siege from both sides, the first wave of the market for these photovoltaic companies was swallowed up, and these photovoltaic companies in the middle tried to resist.
They tried to take the initiative in the raw material market, but financiers would not give them a chance. In early 2008, polysilicon in the international market was once again hot, and upstream suppliers took the opportunity to propose long-term supply agreements to these photovoltaic companies. Watching the international market continue to surge For polycrystalline silicon, photovoltaic companies that are worried about the continued increase in costs have signed contracts one after another to lock in production in advance.
There are even companies that lock in output for ten years.
After these companies signed long-term supply agreements, international polysilicon prices plummeted instantly. In less than a year, polysilicon prices plummeted from US$500/kg to US$40/kg.
These photovoltaic companies have basically locked in output at a high level for 3-10 years, so they have been drained of their last blood. Because the agreement was broken, the compensation was also a huge sum of money.
So the first batch of photovoltaic companies fell like this. As for the game between the dual anti-monopoly and other investigations in the later period, that is another story. Anyway, in the end in 2019, the once defeated world photovoltaic market, the market share of Rabbit Instead of declining, it increased to over 65%.
But what Li Ke wants to play now is to hunt down the first batch of photovoltaic companies in the West!
