China For China

China For China
October 4, 2016 Gary Shotton

The Chinese middle class is growing at a very high pace.  The 1.4 billion people who live in China are consumers and represent a very large market.  By Gary Shotton #000033

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China For China

By Gary Shotton

This text is in Extreme Rough draft and will be edited in the near future.

Hello. My name is Gary Shotton. I’m sitting here in the country of China, on a suburb of Beijing, China. Beijing is one of the larger cities of the world. It’s growing at an unimaginable rate and these small villages are being kind of absorbed in on that. So this still has a bit of a village feel to it, and I’ve been asked to speak in the next couple days on how to change their business model, because things are changing on them, and they’re wanting our ideas, and input, and suggestions, and so all this is suggestions. I certainly have no claim to being all knowledgeable, or the expert. I just have an opinion, but I will tell you that it starts out with James chapter 1 verse 2 and 3 that says “If anyone lacks wisdom, ask of God.” and God will give it to us all, liberally without scolding us, without being disappointed in us. So, I’m constantly asking of God, and so if any good thing comes out of this, it wasn’t my idea. If it was a bad idea, then it wasn’t from God. If it was good, I know where I came from. So, I’m teaching to the Chinese people, but you can kind of relate to this I think. First of all I’m suggesting that China– these suppliers that are middle and small, midsize businesses, they have been historically looking to export to the United States. I mean that is the center of the target. That’s the center of the market. What does America need? How can I export what America needs? And you know, I think I’ve evidenced here, and we’ve seen it in the last couple days. What’s happened over the last several years, what is really a shift that truly China is its own market. So, I’m going to advise these people to the future of China is in China. Now, let me give some examples, because a few days ago, and this was after we’re going to tour the Mercedes-Benz Manufacturing plant. And, they make cars, and they make cars to the tune of this year 300,000 class, beautiful cars for off their assembly lines. 300,000. 12,000 employees. Now, that’s up from a hundred and fifty thousand, just two years ago, and their target by 2020 is 600,000. These are german design, but Chinese made cars that rolls off their one plant. 600,000, that’s amazing and the first question I needed to think of “Okay, where are all these cars going to? You know what the answer to that is? China. None of them exit China. They’re all for the China market. Wow, and now here’s some interesting other facts as told to us by inside authority. The demand– well our friend actually works at a fairly high level at this plant, and so I asked the question, “Well, since you work here surely you get a little benefit of an advantage of buying a Mercedes a little cheaper because you work here?” and she says no, I wish we did, but we don’t. Well is that right? Yep. Well actually there’s such a demand for their cars in China, that they wouldn’t want to actually make an incentive for their employees at a discount. They’re actually now rolling off the line, and there’s a couple– the way I calculated, about a five-thousand-dollar premium above sticker price, in order to get one of these cars. That’s how the demand is. Cars rolling off, high level. U.S.? Yeah. 120 thousand dollars in U.S. equivalent dollars, and you’re going to pay another five thousand dollars just to move up the line in order to get your car, and not wait. That’s astounding. Well, let’s think about it. Here’s the emerging Chinese market. It’s emerging in the middle class to do what I just said. We also heard some statistics that inside the plant, there’s 1,800 robotic welders. These are assembly lines. This is very highly automated. All the officiants, you could imagine in a manufacturing plant. Now, by the way, I’m in manufacturing. So not that I know it all, but I can say I can relate to this because they are efficient, and I can see that. So, just think of the spin-off that you have laser automated robotic arms, 1800 in one plant. You have laser, you have metal, you have rubber, you have tires, you have everything. What all goes to the Chinese market? Well, I think I would change my model. Forget America, forget exporting, and stay focused on something that the Chinese for China, China made for China. That’s my suggestion number one. Number two, I’ve noticed that it seems like people around the world look to some outside their giftings, and they sometimes basically want to copy someone else, and they look at something say “Hey if my friends doing this I could surely do it, and maybe do it better,” and so I don’t like that idea. I like the idea that we’re going to stay inside our corridor. You know, I’m kind of a hefty guy, so I like to eat, but I wouldn’t really be good at a restaurant, a bakery, or something like that because I’m not going to want to learn all about that. That’s not my corridor. My corridor is manufacturing. I had a trucking company. I had construction involvement. Farming and ranching, and so rather than copy or looked outside and look for someone else, and what’s working for them, and how this is working, look inside at your corridor. I can see the sun coming up, so you’re going to have a shiny face here for just a little bit, but nothing I can do about it. That’s fine, I’m right here, the rising sun of China. So stay inside your corridor. Number three, get knowledge, visit places, understand, ask questions, ask questions, ask questions. See it’s not a benefit. I can talk maybe to the subject matter of the overall approach to business, but inside your corridor for China, China for China, something that’s in you that you can be passionate about, something that you know is for you and then get knowledge. A lot of people shorten this I think. You know, you could read in the book and get on the internet, but to me nothing replaces– nothing’s better than going out and seeing it. You know, that’s part of the reason I’m here. I’m out here seeing, I’m visiting manufacturing plants. I’m visiting shops. I want to see, I’m a sponge. I continue to gain knowledge, and more knowledge, and more knowledge, and more knowledge. I don’t need to know exactly how to do something, but I want to know why they’re doing it that way. I could hire a technician, I can hire managers if I want the how, but the why, why, why, why, why. Why are we doing this? Why is this market? Why is that? And so, I think that’s important. Number four, enter into the game. If I was here in China, I would stop being a supplier to some foreign company of individual parts. You’re on too thin of ice. The ice is too thin. They can choose, because this is what’s happening, this year they had a contract. Next year, somebody in China, farther in China deeper in China, can do it cheaper. You lose your business. Well, let’s go after the actual ownership of the product and design of something you can sell. I know that’s a bigger project. Let me give an example. I’m here hoping, on another trip, to go to the Han Jin World Studio of Movies, and I watched some videos. It’s very interesting to watch those videos, because this studio is square miles of movie video sets, and so basically these sets– I’m going to change this a little bit here, because that’s bothering me. And so, these sets are producing movies to compete direct head-on with Hollywood, head-on with Hollywood. They’re not trying to supply something to Hollywood. They’re going to enter into the market and they know their market, but I must tell you in their particular case, their biggest market is another example of movies inside China. China for China. Movies for Chinese. In a report by 60 minutes, I listened to that, and basically it said there’s new movie theaters opened up in China every calendar day. Can you imagine the market? So basically China for China. I’m saying look at the future, stay inside your corridor, or get knowledge and enter into the game. Compete. Stop supplying to somebody else that’s going to use your parts making the end product. Make the end product, and make it for China. Well, that’s my opinion. It’s worth as much as you want to pay me, send me a check if you are new haha, but basically I’ve enjoyed sharing these thoughts with you. Tune in again, share these videos, I hope they’re helpful.
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Gary Shotton
Founder | IBBTalks.com
The founder of IBBTalks.com which was formed to "Inspire Better Business."
As an astute businessman, he is passionate about helping others in the business world achieve maximum profits. He has a keen interest in international business. www.InspiringBetterBusiness.com

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