Chapter 3901 3903 [Industrial Cluster]
In the following time, Qiu Yingjie took the merchants to have a good look around Yiwu, and let them see the current industrial level and development of Yiwu.
In 1992, the fourth generation of small commodity market in Yiwu was just completed. This is the first large indoor market in Yiwu, with more than 15,000 stalls, mainly engaged in daily necessities, needles and cotton, thread and belt, shoes, buttons, glasses and other major commodities.
Now all the stalls have been rented out, and the vendors and customers who come to purchase goods and shop are crowded and crowded. It is quite lively. It can be said that the guests are full and the water is blocked.
This makes the merchants feel eye-opening.
At the same time, Xiang Nan is also discussing investment with Chen Jianghe.
"Brother Ji Mao, I am going to invest in building a factory with you to produce clothes." He said to Chen Jianghe.
At present, Chen Jianghe's clothing factory has expanded from dozens of people to hundreds of people.
However, Xiang Nan still thinks this is too small. He plans to invest in building a clothing factory that can accommodate 80,000 people and produce clothes with all his strength.
By then, more than 10 billion pieces of clothing will be produced annually. Even if one piece of clothing only makes one yuan, it will be more than 10 billion in profit a year. Of course, if a brand is created, the profit will be more than that low.
"How much do you want to invest?" Chen Jianghe asked curiously.
"Fifty million." Xiang Nan stretched out a palm and said.
Chen Jianghe and Luo Yuzhu were all shocked after hearing this.
Their clothing factory is considered large in Yiwu, but there are only 500 employees and the annual profit is only a few hundred thousand. Xiang Nan wants to invest 50 million in one go, which is too scary for them.
"This is just the first investment, and the subsequent investment is 450 million." Xiang Nan then said.
"Too much, right?" Chen Jianghe said in surprise, "50 million plus 450 million, isn't that 500 million?"
He felt that investing 50 million was too much, but he didn't expect Xiang Nan to invest 450 million. It was as if he was not investing money, but paper money.
"That's five hundred million." Xiang Nan nodded and said, "Brother Jimao, time is running out. If you have time, go out and take a look. Now the whole country is building everywhere.
Beijing, Shanghai, Guangzhou, Shenzhen... Factories are opening one after another. Now is the era of racing to grab land. Whoever develops first will seize the opportunity, otherwise, they will always fall behind.
Let me ask you, if Yiwu had not withstood the pressure and built a small commodity market in the early 1980s, and had only started to develop now, would it still be able to catch up?"
Chen Jianghe was stunned, then shook his head.
Now with the popularity of Yiwu's small commodity market, a number of small commodity markets have emerged in all parts of the country following Yiwu's example.
But because they started late, they are far behind Yiwu's small commodity market in terms of scale and customer flow. Even the vendors in those small commodity markets have to go to Yiwu to stock up.
So if Yiwu wanted to build a small commodity market now, it would definitely not be as prosperous as it is now.
"The principle is the same." Xiang Nan explained, "We are now growing bigger and stronger, and forming a scale. On the one hand, we will get government support, and on the other hand, we can form an industrial cluster..."
"Industrial cluster?" Luo Yuzhu was a little confused.
"It means a series of industries around the garment factory, such as textile factories, printing and dyeing factories, zipper factories, packaging factories, button factories, etc. will gather here, so that a scale effect will be formed." Xiang Nan explained, "In this way, if there are merchants buying clothes, will they come directly to us?"
Chen Jianghe and Luo Yuzhu nodded.
Just like the Yiwu small commodity market, now when it comes to small commodities, everyone will think of Yiwu first. If you want to purchase goods, you also come to Yiwu, because it has the largest scale, the most complete commodities, and the price is more affordable.
This is the effect brought by scale. If the Yiwu small commodity market is not so big, it will not have such a big impact at all.
"But I am worried that my ability is insufficient." Chen Jianghe said again.
He managed only a few hundred people before. And if he built a factory with 500 million yuan, how big would it be, and how many people would he have to hire? At that time, he will have to take care of so many things. Just thinking about it makes me feel overwhelmed.
"So I invested 50 million in the first phase." Xiang Nan smiled, "If you have confidence, I will make additional investments. If you think the management is not good, forget it.
In fact, you don't have to be afraid of anything. In my opinion, tens of thousands of people are even easier to manage than hundreds of people. Because the more people there are, the greater the power of the system.
You used to manage people with people, and now you will manage people with systems. As long as you establish a good system, you don't even have to worry about management, and there will naturally be systems to constrain you. Just like the knocking sugar gang back then, there are rules, and everyone does things according to the rules."
Chen Jianghe nodded, "Okay, then I'll try."
"I believe you can do it." Xiang Nan smiled.
...
Later, under Xiang Nan's promotion, giants such as Procter & Gamble, Mars, ACA, GAP, etc. are willing to invest in and build factories in Yiwu, or cooperate with local factories in Yiwu.
It seems that Chen Jianghe's Jianghe Garment Factory will cooperate with GAP and do OEM for them first. After accumulating experience, they will launch their own clothing brands.
So in the next two years, factories were built everywhere in Yiwu, and it was a prosperous scene.
During this period, Xiang Nan traveled to China and the United States many times to continue to broker cooperation between the two sides.
Thanks to his efforts, American sporting goods giants such as Nike, Reebok, Converse, New Balance, etc.; American home decoration giants such as Home Depot and Lowe's; hardware giants such as DuPont, Techtronic, Stanley; clothing giants such as Ralph Lauren, Mike Myers, CK and many other companies have come to Yiwu to invest and build factories, or ask Yiwu factories to do processing.
The cumulative investment and order volume reached 5 billion US dollars, and the results are quite gratifying.
The first phase of Chen Jianghe's Jianghe Garment Factory has also been completed, covering an area of 75 acres, with a total of five large workshops, 5,000 machines, and a total of 12,000 workers.
Chen Jianghe was worried that he could not manage it, but after the factory was built and the people were recruited, he found that managing people was not as difficult as he imagined.
In the past, he and his wife Luo Yuzhu managed hundreds of people, and they had to take care of everything themselves. Purchasing, shipping, collecting, paying, wages, personnel... a lot of things to be busy with, so busy that they were almost hitting their heads.
But now the factory has 10,000 employees, and he has nothing to do.
Because with so many employees, he can't manage them all by himself, and can only rely on the system to manage. Under the system, he only needs to manage the managers of each department, such as the business department, sales department, human resources department, finance department, warehouse management department...
The number of people he needs to manage has been reduced by dozens of times, and everything has been taken over by the relevant departments, so he has fewer things to be responsible for.
He only needs to set the general direction of development and assign tasks, and he doesn't need to do everything himself. Anyway, whoever fails to complete the task will be beaten up at that time.
Therefore, he finally understood what Xiang Nan meant by "the more people, the easier it is to manage."