Chapter Seventy-Eight: Xie Lianfa's Arrangements

Delivering and test-flying twenty model aircraft was a troublesome task, but they managed to get it done by the end of the afternoon. In particular, the young man recommended by that elderly gentleman turned out to be quite impressive. As Old Wu put it, he had a certain cleverness—perhaps even a natural affinity for aviation—a born talent for the field.

By the time Yang Hui returned to their modest inn, it was already quite late. Initially, Yang Hui had planned to join Yang Yue in experiencing the luxury and decadence of capitalism firsthand. But when Yang Yue saw how exhausted Yang Hui was, too tired to move, she felt for him and naturally decided against venturing out into the so-called capitalist nightlife.

The day at the airshow was drawing to a close, and as Yang Hui tallied up their gains, it all felt like a dream—so incredible as to be almost unbelievable.

"Yang Hui, pinch me, will you? I still can't believe it—we've just made nearly two million dollars! Is earning foreign currency really this easy?"

Easy? Of course not. Just look at how utterly spent he was, like a dog run ragged. Was it easy for him? And now he was being asked to pinch someone—didn't they know even pinching someone could be exhausting?

As for whether earning foreign currency was as easy as it seemed—well, if Yang Hui hadn’t been reborn with knowledge from the future, who would have imagined you could make money with model aircraft? Back at the institute, making money had always seemed an almost impossible task.

Judging from the results, Yang Hui’s proposal to launch the model aircraft project had been right. But the process itself was far from reasonable. The institute embarked on the project simply because Yang Hui made a good case for it, relying on his persuasive skills and foresight. But such a trend couldn’t be allowed to continue. Normally, without market research, most products are doomed to find no buyers. Yang Hui knew he had to dispel the director’s notion that earning foreign currency was an easy feat.

“Director, it’s absolutely not easy to earn foreign currency these days. The reason we were able to make money so quickly is because, unlike other manufacturers, we developed our own product and identified the right market need. That’s what made it possible.”

Yang Hui’s words were concise but provoked deep thought among the group. Each person, from their own perspective, drew different insights from what he had said.

Most notably, Old Wu and Director Bai reflected on the issue of independent research and development. In the past, the institute had paid little attention to indigenous innovation. No matter how much they boasted, imitation was still imitation—an unchangeable fact. Take the J-7 fighter, for instance: the base’s technology came from Institutes 0611 and 0132. Every time there was a J-7 export deal, their base was left out. Why? Because the technology wasn’t truly theirs. When there were foreign trade orders, the best they could hope for was enough domestic orders to barely survive.

The model aircraft were a different story—entirely original technology, unique in the market, with no competitors in sight. This highlighted the importance of intellectual property. Before, when it didn’t affect their own interests, they hadn’t cared. Now, with a concrete example and tangible profit, the lesson hit home.

Director Bai, deeply moved and brimming with enthusiasm at the success of the model aircraft project, began to reconsider the institute’s approach to research, especially with regard to the follow-up development of the Turbojet 7 engine.

“Well said. This project has been a real revelation for me. Independent development is something we must pursue at all costs. Once we have the funds, the institute’s Turbojet 7 engines must be developed in this spirit.”

Yang Hui and Old Wu exchanged a smile. It was good to see the director so fired up; their only worry had been that he’d be too timid to invest. That would have been a tragedy.

But Yang Hui’s earlier words also prompted different interpretations among others—such as Xie Lianfa, who had a different take from the director and Old Wu. For him, what stood out was the importance of market demand, a realization that only dawned on him during today’s model aircraft sales.

“Yang, I can sense the importance of market demand, and it played a big role in our sales today. But how did you identify that demand?”

At last, Xie Lianfa, whom Yang Hui had high hopes for, asked a question that made Yang Hui feel gratified. To recognize the importance of market demand without guidance was an achievement in itself—reason enough for this trip to have been worthwhile for Xie.

“Lianfa, let me put it this way: if we want to keep generating foreign exchange through exports, understanding market demand is absolutely essential in the international arena. In China, factories don’t really have to worry about this yet—industrial goods are in such short supply that anything produced will sell. But overseas, supply often exceeds demand, and buyers have choices. That’s when precise market positioning is necessary to win the consumer’s wallet.”

Xie listened, increasingly intrigued as he began to understand.

“Precise market positioning? And how do you determine that?”

Another excellent question, one that got right to the heart of the matter. Yang Hui patiently explained what would later be considered common sense in a market economy.

“Precise market positioning requires wide-ranging market research, sharp analytical skills, and foresight. These are all essential components.”

Before he finished speaking, Yang Hui could see Xie Lianfa was about to ask another question. He anticipated what it would be and continued:

“In fact, our model aircraft project this time wasn’t entirely by the book. We had foresight and keen analysis, but we lacked actual market research.”

Yang Hui was not shy about admitting this flaw. It was better to be honest now, rather than risk the institute adopting a habit of launching projects on a whim without research. They weren’t time travelers or reincarnators—such recklessness would only lead to disaster. As Chairman Mao once said: ‘No right to speak without investigation.’ That certainly applied here.

Everyone has their own aspirations and strengths. Director Bai and Old Wu were technical officials, focused on research. In practical terms, putting Old Wu in charge of the new China Aviation Industry Policy Development & Export Company (from now on, abbreviated as CAIPDEC) wasn’t really suitable. Yang Hui had already decided to cultivate Xie Lianfa and send him to work at CAIPDEC.

“That makes sense. Yang, could you recommend some books on how to identify market demand?”

This stumped Yang Hui a bit—he wasn’t a specialist and couldn’t give a detailed recommendation. He could only generalize: “These are all part of Western market economics. In the bookstore, you’ll find it’s an important category. Once you look, you’ll know.”

By the end, the day’s debriefing had become a solo lecture by Yang Hui, as he answered everyone’s questions. He had intended to translate the flight manual afterward, but was simply too exhausted, and fell fast asleep on the sofa.

·········

When Yang Hui woke the next day, his entire body ached. Gritting his teeth against the soreness, he prepared once again for the airshow. The flight demonstrations were still to come, and half the model aircraft remained unsold—there was no room for complacency.

By now, the model aircraft at the exhibition site were almost gone, replaced by a crowd of eager hobbyists waiting at the venue. As soon as they spotted Yang Hui and his team’s signature large truck arriving, they surged forward, startling the driver into slamming on the brakes.

“Hello, gentlemen from the Eastern Republic. We’re here to purchase model aircraft. Please take us to the warehouse at once.”

They had expected a good haul today, but seeing so many passionate enthusiasts waiting, none of the six men worried about selling the remaining twenty-odd sets.

They hurried out of the truck. With over thirty people clamoring to buy, it was obvious that not everyone would get a set. Normally, sellers would raise prices at such a moment, letting the highest bidders win. But for high-end, durable products like model aircraft, that was not the way to build a strong brand. Sticking to the set price was fundamental. Consumers could wait in line, but adjusting prices to determine who bought first would be harmful in the long run.

“First of all, thank you all for your enthusiasm. However, we only have twenty-six sets left here in Paris. Those who miss out, please be patient.”

As expected, today’s buyers risked coming away empty-handed—a real problem. The crowd began to stir.

“Rest assured,” said the director, finally willing to make a bold move, “once we confirm the numbers, we’ll airfreight more sets here as quickly as possible—within five days at most.”

At this, no one had further complaints. The manufacturer’s willingness to spend extra on air transport showed real sincerity. To keep arguing over a handful of sets now would be unseemly. The real focus shifted to learning how to operate the model aircraft.