Chapter 24 Industrialists in second and third tier cities

On January 26, 2011, the General Office of the State Council promulgated the "National Eight Measures" for real estate. Since then, many cities have implemented strict controls on the real estate market, which made Wenzhou real estate speculators who have always spent a lot of money useless. But for Wenzhou people who are well versed in investment, the fact that some big cities cannot buy houses does not mean that small and medium-sized cities cannot buy houses, nor does it mean that there are no investment channels. It is impossible for them to let their funds sit idle.The most direct way is to invest in second- and third-tier cities. Even if you still invest in the property market, it is still a good choice.

A Wenzhou businessman surnamed Xie bought houses in second- and third-tier cities such as Hangzhou, Wenzhou, Fujian, and Chengdu long before the "Eight Measures" were introduced, and gradually invested the funds in office buildings and shops in these cities. Why is Mr. Xie still going around the house?He said: "At present, it is quite sensible to do so. Because although the purchase restriction order has been issued, it may have an impact on first-tier cities such as Beijing and Shanghai, and the influence of small and medium-sized cities is not very large. Moreover, housing prices in these areas The rate of increase is relatively slow, and the country will not impose purchase restrictions in these cities for a while, so of course it will not affect my real estate speculation.”

Mr. Xie's explanation is irrefutable, and Wenzhou people took advantage of the policy loopholes to continue their investment dreams in the vacuum of state regulation. There are many Wenzhou bosses who have similar ideas with Mr. Xie. In 2011, a new market was opened in Wenzhou, which contained nearly 500 shops. On the same day, dozens of Wenzhou bosses came to buy, and within two hours, all the shops were booked.Of course, these shops are not mainly reserved for their own business use, investment is the kingly way. In fact, it is not just investing in real estate and shops. From the perspective of Wenzhou businessmen, second- and third-tier cities have many business opportunities and many investment projects.

Only about one-tenth of Wenzhou capital is stranded in the real estate market. Investing in the real estate market is only one of the options for Wenzhou businessmen.The government will actively guide funds to return to the cause, and the Wenzhou Chamber of Commerce will develop emerging industries, such as solar energy, wind energy, energy-saving appliances, and new rural construction. A Wen businessman surnamed Wang, after seeing the slump in the property market, sold several houses in his hands before the purchase restriction order was issued, and then used the funds to partner with a few friends to invest more than 100 million yuan in Xinxiang, Henan. Started a solar business.

Talking about this investment project, Mr. Wang couldn't help but be elated: "I am in the manufacture of solar water heaters. I find that rural people are more and more fond of cleanliness, and they want to take a bath like city people in winter. But they don't have city heating. , can’t use hot water often, which is very fatal in winter, especially during the Chinese New Year. Now many young people in rural areas go out to work, and they are used to the convenient life of bathing in the city. home, taking a bath has become a big problem. The solar water heaters I produce are mainly prepared for these rural people who are more and more fond of cleanliness. A water heater costs only a few thousand yuan, which is very important for those rural people who have been working outside for a long time. It’s not a problem at all.”

Mr. Wang was right. There are more than 800 million farmers in my country, and young migrant workers account for almost half of the rural population. Solar water heaters do have a big market in rural areas.His business is located in Xinxiang, Henan, which is another good choice.Xinxiang is an industrial city and a third-tier city, and Henan has a large labor force. Investing here not only guarantees the labor market, but also guarantees the consumer market, which can be said to serve multiple purposes. Opportunities are always prepared for those who are prepared.When we are troubled by not being able to find a suitable investment project, you will find that Wenzhou merchants have extended their sights to more remote cities.

Tian Gengsheng, the boss in his early thirties, now has hundreds of millions of assets.He is the owner of a tire factory, and the site was built in a small county in the middle of the country.This business is of course profitable, after all, cars are now an increasingly common means of transportation.Just talking about his choice of factory site, he said: "In my industry, labor is of course the first consideration. The central region has a large population, which can just solve my problem. In addition, tires are plastic products, and the pollution is relatively large. , I chose to build the factory site in the southeast corner of the county, which can effectively avoid pollution and facilitate shipment.”

Mr. Wang and Tian Gengsheng have one thing in common in their investments: investing in second- and third-tier cities.The reasons for investing in these places are also similar: the labor market is rich and the consumer market is relatively large.Is this the fundamental reason for Wenzhou people to invest in second- and third-tier cities? Not really. The labor market and the consumer market are important reasons, but the fundamental reason for them to invest in second- and third-tier cities is that they are all engaged in industrial investment.The meaning of industry is: to focus on manufacturing.Since manufacturing is needed, manufacturers, raw materials, and transportation are needed.Only second- and third-tier cities that meet these three conditions and reduce production costs as much as possible, especially second- and third-tier cities with abundant labor force and good industrial foundation, such as Xinxiang in Henan, Wuxi in Jiangsu, Dongguan in Guangdong, and so on.

Therefore, rather than saying that second- and third-tier cities have too many opportunities, it is better to say that second- and third-tier cities have too many favorable conditions for industrial development.Wenzhou people who made their fortunes through industry took a fancy to this point, so they never forget the second and third tier cities.This has also created the investment model of some Wenzhou bosses who "started in business and returned to business". On February 21, 2011, the Shanghai Securities News broke the news that "Wenzhou's nearly one trillion private capital is urgently looking for a way out".As soon as the news came out, many people speculated: Wenzhou people have so much money, how are they going to settle it?

Many Wenzhou businessmen have chosen to return to industry. People in Wenzhou made their fortunes through industry. Just look at their various nicknames: "China's shoe capital", "China's lock capital", "China's electrical appliance capital", "China's pen-making capital", "China's plastic weaving capital". Capital of China", "Capital of Synthetic Leather in China", "Base of Metal Shell Lighters in China", "Production Base of Razor in China", "Printing City in China", "Hometown of Logos in China", "Hometown of Pumps and Valves in China", etc. .Although these industrial projects are not large, after decades of development, Wenzhou people have become rich.If rich people continue to do these familiar industries, it will be easier to succeed. The difference is that wealthy Wenzhou people are no longer limited to investing in these small industries, they already have the capital to invest in industries with greater profits.

Mr. Jiang was originally in the stock market. He heard that the stock market makes money fast, so he came to Shanghai specially and hired several professionals to manage the stock investment.As a result, after only a few months in this field, he quickly ran away all the stocks in his hand and started to do business again. "The stock market is too difficult to understand, and now I can't tell how to make a steady profit without losing money. Now that I think about it, it is easier to do business." Mr. Jiang, who has returned to his career, commented on the results of his months of hard work in Shanghai. . The project he invested in this time is a transformer.In his view, the transformer market is huge, as long as people use electricity, they cannot do without transformers.His transformer factory is located in Tangshan.Talking about site selection, Mr. Jiang said: "Isn't this the so-called 'Beijing-Tianjin-Tangshan' industrial base? The industrial base is relatively good, and it is close to big power consumers in Beijing and Tianjin, and the industrial base itself consumes a lot of electricity. My transformer Sales are not an issue at all.” There are many Wenzhou businessmen like Mr. Jiang who are based on their careers.Although various speculation groups such as real estate speculation groups and oil speculation groups were extremely popular, it was because the country had never seen such a large-capital hype method before, and it was a sensation.The vast majority of Wenzhou businessmen are actually still engaged in business honestly, and only industrial investment can make them more at ease. Wenzhou businessmen who are interested in industry will definitely not be interested in first-tier cities, because the nature of industry determines that it is unwise to invest in first-tier cities.Because labor and land are expensive in first-tier cities, all the upfront investment required for investment is much higher than in second- and third-tier cities, which determines that second- and third-tier cities, traditional industrial cities, and small and medium-sized cities with surplus labor are their first choice. . In short, in today's increasingly fierce competition, except for real estate investment that still does not give up on first-tier cities, Wenzhou people have never lost their enthusiasm for investing in second- and third-tier cities.When a large amount of Wenzhou capital transfers to nowhere, more Wenzhou businessmen will return to industrial investment. At that time, the second and third tier cities will be the focus of their attention.