Chapter 3902 3904 [Own Brand]

After the completion of Jianghe Garment Factory, orders came in like snowflakes.

CK, GAP, Ralph Lauren, Mike Myers... A large number of clothing giants rushed to cooperate with him, and there were so many orders that he couldn't handle them all.

Originally, Chen Jianghe thought that the factory built with 50 million yuan, recruited tens of thousands of employees, and had more than 5,000 machines alone, which was definitely enough.

Who would have thought that the merchants were so enthusiastic? Even if he recruited more employees and worked in three shifts, he still couldn't keep up with the requirements of the merchants.

This kind of posture really scared him.

"I really didn't expect that there would be so many orders." He called Xiang Nandao.

In the 1990s, you could make overseas calls in Yiwu. Unlike before, making overseas calls was limited to a few telephones in the post office.

Before making a call, you had to pay a deposit, fill out a form, and explain the reason for the call, and the staff would help dial the number. And the call quality was also very poor at that time, intermittent, and you had to speak loudly to hear it.

Then, with the improvement of supporting facilities, overseas calls have been promoted and popularized, and you can make calls directly in the factory.

"Now you know that the 500 million investment I mentioned is not too much." Xiang Nan smiled, "Even if the factory is expanded tenfold, there will still be countless orders.

Brother Ji Mao, think about it, there are 1.2 billion people in China, and the global population is as high as 5.6 billion. With so many people, even if they only buy one set of clothes a year, that's 20 billion pieces.

This is a very large market, and what we have to do is to share a piece of the pie."

People's demand for beauty is endless.

In the 1960s and 1970s, although cloth was supplied by tickets, people still tried every means to dress themselves up. For example, the "fake collar" that was very popular in that era was the crystallization of the wisdom of the working people.

In the 1980s, people's living standards improved, and after the limited supply of cloth was cancelled, clothing production and sales reached new highs.

And new trendy items such as bell-bottom pants, jeans, gym pants, bat shirts, and lucky shirts are also widely welcomed by young people.

In the 1990s, the types of clothing became more and more diverse. Rich people no longer only pursue styles and fabrics, but also brands.

International brands are becoming more and more popular in the mainland, and are being favored by many new rich. In 1992, Louis Vuitton opened its first store in Beijing; in 1993, Dior officially entered the mainland; in 1997, Hermes, in 1999, Chanel...

The old tradition of three years of new and three years of old, and three years of mending, is gone forever.

Entering the 21st century, people's desire for clothing is getting higher and higher. In the 21st century, the sales of clothing in the mainland were 96 billion; by 2023, the sales of clothing in the mainland exceeded one trillion, and the sales increased by 50% on average every year, which is faster than the increase in housing prices.

It can be seen that the clothing industry has great potential.

Chen Jianghe couldn't help but be excited when he heard Xiang Nan say this.

The world's 5.6 billion people buy one set of clothes a year, which is 22.4 billion pieces. Such a big piece of cake, if you cut a piece, it will be enough for Jianghe Garment Factory.

…

“But OEM is just the beginning.” Xiang Nan instructed, “You should try to learn their design, craftsmanship and marketing, and then create your own brand.

You OEM a shirt, the cost is less than 20 yuan. But a shirt with the Ralph Lauren logo can be sold for fifty dollars in the United States.

Shirts are not valuable, but the trademark is valuable. As long as your brand is loud enough, you can earn more than ten times, even dozens of times, hundreds of times the profit. So the ultimate goal is to create your own brand.”

“I understand.” Chen Jianghe nodded.

I didn’t expect those clothing giants to make so much money. It costs him less than 20 yuan to produce a shirt. But if it is printed with the Ralph Lauren logo, it can be sold for fifty dollars, which is more than ten times the price.

So Xiang Nan is right, creating a brand is crucial.

I can’t just look at the large number of OEM orders and laugh foolishly. In fact, he still earns hard-earned money. If he wants to make a lot of money, he still has to create his own brand.

“Well, work hard, I believe in you.” Xiang Nan smiled.

…

Behind the prosperity of Yiwu, some problems have emerged one after another.

One is the problem of triangular debt. The so-called triangular debt means that each other owes money. Factory A owes money to Factory B, Factory B owes money to Factory C, and Factory C owes money to Factory A.

The reason why such a thing happened is mainly due to the mismatch between the planned economy and the market economy.

Most of those state-owned enterprises are the product of the planned economy. Although they have turned to the market economy from the 1980s to the 1990s, they did not correct their ideas in time and still went their own way.

They did not try to improve the process, upgrade the technology, and expand the market, but still used the old process, old technology, and old sales channels.

But they did not change, but consumers did.

Consumers in the 1990s have opened their eyes to the world and seen more advanced, more fashionable, and more affordable products. Those old products naturally did not arouse their interest.

Therefore, the products produced by these factories cannot meet the needs of the people and have no market at all. This has caused product backlogs and unsalable. The sellers cannot get their money back and cannot pay the processing factories for the goods.

The processing plants had no choice but to borrow money to produce, and then the products continued to be in backlog and unsalable, entering a vicious cycle of large production resulting in large losses, small production resulting in small losses, and no production resulting in losses as well.

Just like in the drama, in the Puxi Sock Factory where Chen Jianghe worked, in the 1980s, the socks were in short supply and could only be obtained through backdoors. Now, no one wants the socks of the Puxi Sock Factory, and they are all stuck in the warehouse and cannot be sold.

Even when there was no money to pay wages, the factory did not make timely changes.

Just like in the drama, Chen Jianghe brought the new style of socks designed by the design department and hoped that the factory leaders would agree to produce them, but the factory leaders did not approve...

This situation is common, not just one example.

…

By 1992, the triangular debt had reached 300 billion yuan, accounting for one-third of the total bank loans, and the situation was quite serious.

The triangular debt also had an impact on Yiwu. At that time, although the small commodity market in Yiwu was very prosperous, dealers from all over the country came to purchase, but there were all kinds of people.

In order to open up more business routes and get more customers, the merchants in Yiwu often adopted vicious competition. Your goods are cheap, and mine are cheaper than yours. You want to collect the full payment before shipping, I will only collect 50% deposit...

In general, the trading order is disordered, the settlement discipline is loose, and the credit concept is weak.

This also gave those rogue merchants an opportunity to take advantage of it. They bought goods on credit everywhere in Yiwu and delayed paying for the goods, causing merchants to have difficulty in operating and have to borrow money to maintain.

Downstream distributors owed upstream middlemen, middlemen owed upstream processing plants, and processing plants owed banks...Yiwu was full of people who owed debts, hid debts, and collected debts, making it a mess.

Even Jianghe Garment Factory had millions of goods shipped out but did not receive remittances, which made Chen Jianghe so anxious that his voice became hoarse.