Chapter 25 A mature investment environment is not always the best place to invest

If you had a good amount of money to invest overseas, which country or region would you invest in? Since the cost of investment is not a problem, the thinking of ordinary people is of course to choose an international metropolis with a large number of people and opportunities, such as New York, Paris, London, etc. Normal thinking people would never think about investing in Cairo, Egypt.Although this is considered a well-known city, we know that it doesn't seem to have any special attractions except for the attractiveness of tourism. Li Wen, a businessman from Wenzhou, found another way and invested a large sum of money in this city on the verge of desert to produce bags.What is the result of his investment?A year later, sales had reached more than $4 million.According to Li Wen, his company is the first luggage manufacturer in Egypt.The Egyptian government welcomes his investment very much. For a long time, Egypt's bags have long relied on imports.After Li Wen set up this production enterprise, not only 20% of them can be sold to the whole of Egypt, but the rest can also be exported to Morocco, Algeria and other places.What is even more surprising is that Egypt has special policies for light industries such as bags, such as value-added tax exemption and zero tariffs for the export of bags, and the government also provides certain subsidies for exported light industrial products.

In a word, Li Wen's luggage investment in Egypt can be described as both fame and fortune.He also plans to make additional investment, and strives to make the sales revenue of luggage production exceed 10 million U.S. dollars within two years. Seeing this, do you think Wen Shang and Li Wen are too lucky?Why didn't I think of investing in a bag in Cairo? There is a saying: there is necessity in chance.When you are also thinking about investing in a luggage business in Egypt, you are heading for inevitable failure. The reason why Li Wen invested in Egypt instead of international metropolises such as New York and Paris is because he tried his best not to involve himself in competition. As long as there is competition, others will share part of the profits.It is very unwise for Wenshang to choose such a competitive investment project.When you also think about investing in a bag in Cairo, you are actually actively participating in the competition and actively reducing profits.So even if you succeed in getting a piece of the pie in this competition, your way of making money is not recognized by Wenzhou businessmen.

A market without competition is the ultimate goal pursued by Wenzhou businessmen.But where is the market without competition?I am afraid that it is difficult to find a market without competition in the world-this statement is wrong, isn't Li Wen a good example? As long as you dare to think about "owning a market without competition", Wenzhou people can find it. Their method is very simple, or it seems very "adventurous". Comparing Cairo and New York, you can easily draw the conclusion that it is easier to make big money in markets that appear to be insignificant than those that appear to have a lot of opportunities.

Compared with the bustling international cities such as New York, Cairo's market does seem to be sluggish, and investing here seems to be a kind of risk.But as the saying goes: the more dangerous the place is, the safer it is, and the reverse is still true: the safer the place is, the more dangerous it is.because: The seemingly risky investment is actually a wise choice based on careful consideration. Although Wenzhou people seem to be adventurous, they are not reckless.They prefer to invest in cities with less influence, which is actually a smart investment strategy. First-tier cities are usually investment hotspots.The investment environment here is good, various legal policies are relatively sound, the surrounding market is relatively mature, and there is a large flow of people, so it is often the first choice for investors, and it is usually considered the safest choice.However, after careful analysis, you will find that there are great risks, especially the following three points. If you do not avoid them in time, it will be difficult to fight your way out in the capital market.

1.A mature market is more suitable for large capitalists to operate, and it is best not to easily contribute to the prosperity of this city if there is not much capital. If you pay attention a little bit, you will find that in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, there is a particularly large amount of foreign capital, and there are also many multinational companies.They have strong capital, good technical conditions, and good management mechanisms, and the policies given to them by the state will be relatively better.Everything in this kind of large enterprise is more formal and more suitable than this mature market, so it can maintain normal development and earn due profits.If small entrepreneurs make the same product as them, they are dead.

The best result is just to make some "cottage" products to win low-end customers.Otherwise, they can only choose another investment project, and choose those investment projects that they have not thought of in the cracks.But this kind of project is more difficult to find, because after all, the market is huge and there are many opportunities. It is not always possible to come up with an idea in a short time. Even if you choose a good idea, it will be quickly followed by the market, and it is difficult to obtain ideal profits.Of course, you can also make this good idea bigger, provided that you have enough capital to hide, otherwise it will be difficult for you to obtain the expected income in big cities where prices are generally high.

2.The larger the market, the greater the competition and the thinner the profits. People tend to flock to big markets, thinking that opportunities and business opportunities are everywhere.But they didn’t think about it the other way around: if you think this way, others think the same way, so everyone rushes into this big market, forming a cruel competition. It's not that competition is bad, after all, human history has been advancing through competition.But for a certain investor, in the fierce market competition, the profits you get may only be a small part, and most of them contribute to the development and growth of this market.If you are willing to be so great, then you can pour money into it desperately, and the prosperity of the city will not increase much because of a small part of your funds.

——Even if you contribute to the development of the market out of a great mind of sacrificing yourself, you can invest in a smaller market, investing in those markets that others disdain to invest in.Because small markets are generally value depressions that no one has explored. By investing in these small places, you can not only develop and expand the market in small places, but also become the leader, enjoying profits exclusively for one person, killing two birds with one stone. 3.The market in a big place is relatively more difficult than the market in a small place. for example.Suppose we now have 200,000 yuan in hand and plan to invest in a clothing store.

If you invest this money in Beijing, you may pay the rent and renovate the store, and there will not be too much money left.The rest of the money needs to be purchased. Due to limited capital, the purchased goods may not be too fashionable, and the fabrics may not be very good.Even if the goods purchased are free from any flaws and can be seen by ordinary consumers, this is a relatively good result.Then there's sales.The markets in Beijing are so bustling. Celebrities from all over the world come and go. People with higher horizons will have higher requirements for clothing.As a result, this clothing store is not only not in the eyes of celebrities, but even ordinary consumers will be very picky about it.As a result, the 200,000 yuan was thrown in, and it was difficult to see the benefits.

If the money is invested in a second-tier city, or a third-tier city, such as Shijiazhuang or Luoyang.First of all, the rent and decoration of the store will be relatively cheaper, so the remaining funds will be more.Then use the money to buy goods, and relatively can buy some clothes that are more in line with consumer psychology, regardless of style or fabric.Then there is the comparison of the sales market.The consumer groups in these two cities are actually quite large, but they don’t belong to the same category. You can see celebrities and people wearing world-famous clothing all over the street, so people’s eyes will not compare, and they will not compare with ordinary clothes. Will be very picky, so it is easy to consume successfully.

Comparing the two, we can easily find some details. It is much more difficult to make profits investing in big cities than investing in small cities. Wenzhou people's habit of investing in small cities can actually be summed up in a technical term: blue ocean strategy, the opposite of which is "red ocean".The so-called "blue ocean strategy", in layman's terms, is to create a market space without competition, create new market demand, and avoid competition; In the world, a battlefield without gunpowder is launched, and the first-tier cities compete fiercely, usually rushing to fight in the Red Sea.Wenzhou people have developed a unique approach to develop small and medium-sized cities, which is actually to effectively avoid the "sea of ​​blood" and stay away from the dangerous investment battlefield. It is precisely because of this unique investment strategy that after the reform and opening up, Chinese people migrated to the south and coastal areas to work and start businesses on a large scale, but Wenzhou people did the opposite, going north, inland, and backward cities. Running, and even doing some small business in the remote areas outside the Great Wall.As a result, more than 30 years have passed since the reform and opening up, people who went to the south and coastal areas are still starting businesses everywhere, but Wenzhou people have set off wave after wave in various fields with trillions of Wenzhou capital. ——They tell us with their own personal experience: invest in those seemingly dangerous places and stay away from those mature and safe markets!