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A TAILOR from a small county in Jiangsu Province 17 years
ago, Zhu Xiaoming is known as “King of Automobile Dealers” in
China.
Zhu left his hometown for Shanghai at 20, which turned
out to be a mistake. However, he shifted his battlefield to
the northeast of China, and successfully stepped into a
totally different industry: automobile accessories production
and distribution.
In August 1999, beating competitors from all over the
country, Zhu became the national sole agent of Audi 200 1.8Ts
after paying 600 million yuan. In just five months, he sold
2,400 of them and made about 20 million yuan.
In 1985, Zhu Xiaoming was 20. He was told that tailors in
Shanghai could make a lot of money. He packed up his sewing
machine and left his home in Jiangsu Province for the city of
his dreams.
However, Zhu’s desire to make a living as a tailor in
Shanghai proved to be a pipe dream, for he found that he
wasn’t even making enough money to feed himself.
He decided to apprentice himself to a veteran dressmaker
for six months.
What he had learned from the master tailor did not
suffice to help Zhu realize his dreams in the metropolitan
city, which hosted many tailors from other parts of the
country.
While he was pondering whether or not he should go back
home, Zhu met Mr. Liang, who was on a business errand in
Shanghai. Liang was from Changchun, the capital city of Jilin
Province in Northeast China.
Liang directed Zhu to Changchun. He told Zhu that people
in northeastern China were hospitable and generous and that it
would be easier to make money there as a dressmaker. Liang
promised his personal help if Zhu needed it.
With only 36 yuan in his pocket, Zhu embarked on a train
trip to Changchun in the early spring of 1986. On the train
half of his money was seized by the train authorities for
excess baggage fees.
With only 18 yuan to his name, Zhu felt a little panic.
He was not sure if Liang would really help him.
Liang met him at the Changchun Railway Station, and with
a rented tricycle, escorted him to a small room in an
out-of-the-way area of the city.
The second day saw Zhu open his tailor shop in the room
where he lived with 100 yuan that Liang had lent him. But the
location was not great for Zhu’s business and nobody in the
neighborhood knew about his shop.
The first week went by without a single order.
When Zhu saw female doctors and nurses from a nearby
hospital, he decided to make clothes for them free of charge.
The women became walking advertisments for his work, and the
fashionable and beautiful garments that he gifted the women
with soon drew a lot of interest.
Sometimes he had so many customers that he had to put
them on a waiting list while he worked around the clock.
In about three years, Zhu amassed 20,000 yuan and sent
all of it home. With the money he sent them his family built a
brick house on the site of their original straw hut.
One day in late 1989, Zhu was approached by a man who
asked Zhu to help him sell things like electric razors and
calculators that could be installed in cars.
One of Zhu’s clients was a car dealer who, recognizing
that the articles were very cheap, bought all of what Zhu had
on hand. For the first time it occurred to Zhu that he could
make more money as a businessman than as a tailor.
Zhu started marketing car accessories. Hearing that the
wife of a department chief at China FAW Group Corporation,
China’s most important automobile maker based in Changchun,
had a special fondness for beautiful clothes, Zhu offered to
make her several sets of fashionable clothes without charging
her a cent. Thus, he made a good friend with her husband,
through whom Zhu established relations with more people from
FAW.
With over 10,000 yuan, Zhu opened a shop and decided to
start out making seat pads for the vehicles produced by FAW.
To learn about the pads, Zhu offered to become a security
guard on night shifts at a vehicle warehouse at FAW. He
removed all types of pads from their seats and studied them.
Three months later, he quit his night job and bought a
large amount of sponge and cloth, the material for the seat
pads, from a city in eastern China. He made several samples
and offered them to the officials of FAW who recognized that
Zhu’s pads were both better in quality and cheaper than the
pads they had imported from elsewhere.
They signed a contract with Zhu, who thereafter hired
several people and began mass production.
With his first shipment of pads, Zhu made a profit of
30,000 yuan. He reinvested the money for more material and
also for some other kinds of articles such as anti-theft locks
and car air fresheners. They all sold out quickly.
Zhu then turned to genuine leather pads.
He believed the expensive pads would enable him to make a
lot of money because he had been told that FAW had a big
demand for them. Decisively he borrowed 200,000 yuan with an
interest rate of 25 percent and invested a total of 350,000
yuan. But to his great shock, his first shipment was returned
to him because his pads were larger than necessary.
It took a lot of money and effort to remake the pads. So
Zhu made almost no money on the shipment.
After that, everything seemed to be going fine for Zhu
and his clientele had expanded to include automobile makers
from other parts of the country.
A trip to Beijing enabled Zhu to see the deluxe hi-fi
stereos inside cars made in South Korea. At the same time, he
found that China-made cars did not include hi-fis. “Why not
put them inside the cars made in China?” Zhu asked himself.
This line of business was simpler than making car seat covers,
for he just needed to buy the systems and have them installed.
Zhu put his thoughts to work.
He soon went to Guangzhou to buy the hi-fis. With each
set costing 2,000-3,000 yuan, Zhu made 700 to 1,000 yuan after
installing it in a car. Before long he was making a lot of
money.
It was while he was busy with his hi-fis that Zhu came to
know an agent for franchised brand car accessories. Zhu found
that people were more interested in buying brand name articles
than his own no-name products.
Luck was with him. A representative for a famous foreign
brand of hi-fi which was based in Beijing came to Changchun
seeking a local agent. In June of 1995, after convincing the
representative of his sincerity and reputation in the
industry, Zhu was appointed as the brand’s agent for all of
northeastern China. Soon after he also became an agent for
Kenwood hi-fi products and Goodyear tires.
When Zhu’s fortune reached several million yuan in 1996,
he was tipped that FAW was looking for someone to help sell a
shipment of low-price trucks. Whoever sold them would receive
a 10,000 yuan agent fee for each truck.
Zhu went to the department chief and his other
connections at FAW and was granted the right to sell the
trucks. Zhu targeted potential buyers from southern China who
narrow-mindedly thought that people in northeastern China were
boorish and aggressive and thus were reluctant to travel to
that part of the country.
To relieve his clients’ concerns, Zhu promised them that
as long as they arrived in Changchun, they would be provided
with free board and lodging as well as complete security,
regardless of whether they bought a truck.
Zhu always met his clients at the airport and accompanied
them to see and test the vehicles. If they bought a truck, he
would escort them to the highway and see them off.
Once a southern customer arrived in Changchun on a very
cold winter day wearing light-weight clothes. Zhu covered him
with his own heavy coat immediately after he got out of the
plane. As a result Zhu developed a serious fever. However, the
guest not only bought a truck for himself but he also
introduced Zhu to some other clients.
Following a series of lucky breaks and excellent choices,
Zhu gained the right to sell automobiles like the Audi 100 and
the Red Flag series. Zhu and his men have continuously topped
the other dealers.
So far Zhu Xiaoming is one of the few Chinese car dealers
to acheive national recognition.
A TAILOR from a small county in Jiangsu Province 17 years
ago, Zhu Xiaoming is known as “King of Automobile Dealers” in
China.
Zhu left his hometown for Shanghai at 20, which turned
out to be a mistake. However, he shifted his battlefield to
the northeast of China, and successfully stepped into a
totally different industry: automobile accessories production
and distribution.
In August 1999, beating competitors from all over the
country, Zhu became the national sole agent of Audi 200 1.8Ts
after paying 600 million yuan. In just five months, he sold
2,400 of them and made about 20 million yuan.
In 1985, Zhu Xiaoming was 20. He was told that tailors in
Shanghai could make a lot of money. He packed up his sewing
machine and left his home in Jiangsu Province for the city of
his dreams.
However, Zhu’s desire to make a living as a tailor in
Shanghai proved to be a pipe dream, for he found that he
wasn’t even making enough money to feed himself.
He decided to apprentice himself to a veteran dressmaker
for six months.
What he had learned from the master tailor did not
suffice to help Zhu realize his dreams in the metropolitan
city, which hosted many tailors from other parts of the
country.
While he was pondering whether or not he should go back
home, Zhu met Mr. Liang, who was on a business errand in
Shanghai. Liang was from Changchun, the capital city of Jilin
Province in Northeast China.
Liang directed Zhu to Changchun. He told Zhu that people
in northeastern China were hospitable and generous and that it
would be easier to make money there as a dressmaker. Liang
promised his personal help if Zhu needed it.
With only 36 yuan in his pocket, Zhu embarked on a train
trip to Changchun in the early spring of 1986. On the train
half of his money was seized by the train authorities for
excess baggage fees.
With only 18 yuan to his name, Zhu felt a little panic.
He was not sure if Liang would really help him.
Liang met him at the Changchun Railway Station, and with
a rented tricycle, escorted him to a small room in an
out-of-the-way area of the city.
The second day saw Zhu open his tailor shop in the room
where he lived with 100 yuan that Liang had lent him. But the
location was not great for Zhu’s business and nobody in the
neighborhood knew about his shop.
The first week went by without a single order.
When Zhu saw female doctors and nurses from a nearby
hospital, he decided to make clothes for them free of charge.
The women became walking advertisments for his work, and the
fashionable and beautiful garments that he gifted the women
with soon drew a lot of interest.
Sometimes he had so many customers that he had to put
them on a waiting list while he worked around the clock.
In about three years, Zhu amassed 20,000 yuan and sent
all of it home. With the money he sent them his family built a
brick house on the site of their original straw hut.
One day in late 1989, Zhu was approached by a man who
asked Zhu to help him sell things like electric razors and
calculators that could be installed in cars.
One of Zhu’s clients was a car dealer who, recognizing
that the articles were very cheap, bought all of what Zhu had
on hand. For the first time it occurred to Zhu that he could
make more money as a businessman than as a tailor.
Zhu started marketing car accessories. Hearing that the
wife of a department chief at China FAW Group Corporation,
China’s most important automobile maker based in Changchun,
had a special fondness for beautiful clothes, Zhu offered to
make her several sets of fashionable clothes without charging
her a cent. Thus, he made a good friend with her husband,
through whom Zhu established relations with more people from
FAW.
With over 10,000 yuan, Zhu opened a shop and decided to
start out making seat pads for the vehicles produced by FAW.
To learn about the pads, Zhu offered to become a security
guard on night shifts at a vehicle warehouse at FAW. He
removed all types of pads from their seats and studied them.
Three months later, he quit his night job and bought a
large amount of sponge and cloth, the material for the seat
pads, from a city in eastern China. He made several samples
and offered them to the officials of FAW who recognized that
Zhu’s pads were both better in quality and cheaper than the
pads they had imported from elsewhere.
They signed a contract with Zhu, who thereafter hired
several people and began mass production.
With his first shipment of pads, Zhu made a profit of
30,000 yuan. He reinvested the money for more material and
also for some other kinds of articles such as anti-theft locks
and car air fresheners. They all sold out quickly.
Zhu then turned to genuine leather pads.
He believed the expensive pads would enable him to make a
lot of money because he had been told that FAW had a big
demand for them. Decisively he borrowed 200,000 yuan with an
interest rate of 25 percent and invested a total of 350,000
yuan. But to his great shock, his first shipment was returned
to him because his pads were larger than necessary.
It took a lot of money and effort to remake the pads. So
Zhu made almost no money on the shipment.
After that, everything seemed to be going fine for Zhu
and his clientele had expanded to include automobile makers
from other parts of the country.
A trip to Beijing enabled Zhu to see the deluxe hi-fi
stereos inside cars made in South Korea. At the same time, he
found that China-made cars did not include hi-fis. “Why not
put them inside the cars made in China?” Zhu asked himself.
This line of business was simpler than making car seat covers,
for he just needed to buy the systems and have them installed.
Zhu put his thoughts to work.
He soon went to Guangzhou to buy the hi-fis. With each
set costing 2,000-3,000 yuan, Zhu made 700 to 1,000 yuan after
installing it in a car. Before long he was making a lot of
money.
It was while he was busy with his hi-fis that Zhu came to
know an agent for franchised brand car accessories. Zhu found
that people were more interested in buying brand name articles
than his own no-name products.
Luck was with him. A representative for a famous foreign
brand of hi-fi which was based in Beijing came to Changchun
seeking a local agent. In June of 1995, after convincing the
representative of his sincerity and reputation in the
industry, Zhu was appointed as the brand’s agent for all of
northeastern China. Soon after he also became an agent for
Kenwood hi-fi products and Goodyear tires.
When Zhu’s fortune reached several million yuan in 1996,
he was tipped that FAW was looking for someone to help sell a
shipment of low-price trucks. Whoever sold them would receive
a 10,000 yuan agent fee for each truck.
Zhu went to the department chief and his other
connections at FAW and was granted the right to sell the
trucks. Zhu targeted potential buyers from southern China who
narrow-mindedly thought that people in northeastern China were
boorish and aggressive and thus were reluctant to travel to
that part of the country.
To relieve his clients’ concerns, Zhu promised them that
as long as they arrived in Changchun, they would be provided
with free board and lodging as well as complete security,
regardless of whether they bought a truck.
Zhu always met his clients at the airport and accompanied
them to see and test the vehicles. If they bought a truck, he
would escort them to the highway and see them off.
Once a southern customer arrived in Changchun on a very
cold winter day wearing light-weight clothes. Zhu covered him
with his own heavy coat immediately after he got out of the
plane. As a result Zhu developed a serious fever. However, the
guest not only bought a truck for himself but he also
introduced Zhu to some other clients.
Following a series of lucky breaks and excellent choices,
Zhu gained the right to sell automobiles like the Audi 100 and
the Red Flag series. Zhu and his men have continuously topped
the other dealers.
So far Zhu Xiaoming is one of the few Chinese car dealers
to acheive national recognition.
A TAILOR from a small county in Jiangsu Province 17 years
ago, Zhu Xiaoming is known as “King of Automobile Dealers” in
China.
Zhu left his hometown for Shanghai at 20, which turned
out to be a mistake. However, he shifted his battlefield to
the northeast of China, and successfully stepped into a
totally different industry: automobile accessories production
and distribution.
In August 1999, beating competitors from all over the
country, Zhu became the national sole agent of Audi 200 1.8Ts
after paying 600 million yuan. In just five months, he sold
2,400 of them and made about 20 million yuan.
In 1985, Zhu Xiaoming was 20. He was told that tailors in
Shanghai could make a lot of money. He packed up his sewing
machine and left his home in Jiangsu Province for the city of
his dreams.
However, Zhu’s desire to make a living as a tailor in
Shanghai proved to be a pipe dream, for he found that he
wasn’t even making enough money to feed himself.
He decided to apprentice himself to a veteran dressmaker
for six months.
What he had learned from the master tailor did not
suffice to help Zhu realize his dreams in the metropolitan
city, which hosted many tailors from other parts of the
country.
While he was pondering whether or not he should go back
home, Zhu met Mr. Liang, who was on a business errand in
Shanghai. Liang was from Changchun, the capital city of Jilin
Province in Northeast China.
Liang directed Zhu to Changchun. He told Zhu that people
in northeastern China were hospitable and generous and that it
would be easier to make money there as a dressmaker. Liang
promised his personal help if Zhu needed it.
With only 36 yuan in his pocket, Zhu embarked on a train
trip to Changchun in the early spring of 1986. On the train
half of his money was seized by the train authorities for
excess baggage fees.
With only 18 yuan to his name, Zhu felt a little panic.
He was not sure if Liang would really help him.
Liang met him at the Changchun Railway Station, and with
a rented tricycle, escorted him to a small room in an
out-of-the-way area of the city.
The second day saw Zhu open his tailor shop in the room
where he lived with 100 yuan that Liang had lent him. But the
location was not great for Zhu’s business and nobody in the
neighborhood knew about his shop.
The first week went by without a single order.
When Zhu saw female doctors and nurses from a nearby
hospital, he decided to make clothes for them free of charge.
The women became walking advertisments for his work, and the
fashionable and beautiful garments that he gifted the women
with soon drew a lot of interest.
Sometimes he had so many customers that he had to put
them on a waiting list while he worked around the clock.
In about three years, Zhu amassed 20,000 yuan and sent
all of it home. With the money he sent them his family built a
brick house on the site of their original straw hut.
One day in late 1989, Zhu was approached by a man who
asked Zhu to help him sell things like electric razors and
calculators that could be installed in cars.
One of Zhu’s clients was a car dealer who, recognizing
that the articles were very cheap, bought all of what Zhu had
on hand. For the first time it occurred to Zhu that he could
make more money as a businessman than as a tailor.
Zhu started marketing car accessories. Hearing that the
wife of a department chief at China FAW Group Corporation,
China’s most important automobile maker based in Changchun,
had a special fondness for beautiful clothes, Zhu offered to
make her several sets of fashionable clothes without charging
her a cent. Thus, he made a good friend with her husband,
through whom Zhu established relations with more people from
FAW.
With over 10,000 yuan, Zhu opened a shop and decided to
start out making seat pads for the vehicles produced by FAW.
To learn about the pads, Zhu offered to become a security
guard on night shifts at a vehicle warehouse at FAW. He
removed all types of pads from their seats and studied them.
Three months later, he quit his night job and bought a
large amount of sponge and cloth, the material for the seat
pads, from a city in eastern China. He made several samples
and offered them to the officials of FAW who recognized that
Zhu’s pads were both better in quality and cheaper than the
pads they had imported from elsewhere.
They signed a contract with Zhu, who thereafter hired
several people and began mass production.
With his first shipment of pads, Zhu made a profit of
30,000 yuan. He reinvested the money for more material and
also for some other kinds of articles such as anti-theft locks
and car air fresheners. They all sold out quickly.
Zhu then turned to genuine leather pads.
He believed the expensive pads would enable him to make a
lot of money because he had been told that FAW had a big
demand for them. Decisively he borrowed 200,000 yuan with an
interest rate of 25 percent and invested a total of 350,000
yuan. But to his great shock, his first shipment was returned
to him because his pads were larger than necessary.
It took a lot of money and effort to remake the pads. So
Zhu made almost no money on the shipment.
After that, everything seemed to be going fine for Zhu
and his clientele had expanded to include automobile makers
from other parts of the country.
A trip to Beijing enabled Zhu to see the deluxe hi-fi
stereos inside cars made in South Korea. At the same time, he
found that China-made cars did not include hi-fis. “Why not
put them inside the cars made in China?” Zhu asked himself.
This line of business was simpler than making car seat covers,
for he just needed to buy the systems and have them installed.
Zhu put his thoughts to work.
He soon went to Guangzhou to buy the hi-fis. With each
set costing 2,000-3,000 yuan, Zhu made 700 to 1,000 yuan after
installing it in a car. Before long he was making a lot of
money.
It was while he was busy with his hi-fis that Zhu came to
know an agent for franchised brand car accessories. Zhu found
that people were more interested in buying brand name articles
than his own no-name products.
Luck was with him. A representative for a famous foreign
brand of hi-fi which was based in Beijing came to Changchun
seeking a local agent. In June of 1995, after convincing the
representative of his sincerity and reputation in the
industry, Zhu was appointed as the brand’s agent for all of
northeastern China. Soon after he also became an agent for
Kenwood hi-fi products and Goodyear tires.
When Zhu’s fortune reached several million yuan in 1996,
he was tipped that FAW was looking for someone to help sell a
shipment of low-price trucks. Whoever sold them would receive
a 10,000 yuan agent fee for each truck.
Zhu went to the department chief and his other
connections at FAW and was granted the right to sell the
trucks. Zhu targeted potential buyers from southern China who
narrow-mindedly thought that people in northeastern China were
boorish and aggressive and thus were reluctant to travel to
that part of the country.
To relieve his clients’ concerns, Zhu promised them that
as long as they arrived in Changchun, they would be provided
with free board and lodging as well as complete security,
regardless of whether they bought a truck.
Zhu always met his clients at the airport and accompanied
them to see and test the vehicles. If they bought a truck, he
would escort them to the highway and see them off.
Once a southern customer arrived in Changchun on a very
cold winter day wearing light-weight clothes. Zhu covered him
with his own heavy coat immediately after he got out of the
plane. As a result Zhu developed a serious fever. However, the
guest not only bought a truck for himself but he also
introduced Zhu to some other clients.
Following a series of lucky breaks and excellent choices,
Zhu gained the right to sell automobiles like the Audi 100 and
the Red Flag series. Zhu and his men have continuously topped
the other dealers.
So far Zhu Xiaoming is one of the few Chinese car dealers
to acheive national recognition.
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