Chapter 530: Take It Slow
The National Planning Commission is the Development and Reform Commission after the reform in 1998. Although the name has not changed, the State Council has begun to expand.
If you want to take over the textile factory that was included in the reform and rectification and was about to apply for bankruptcy, this department is unavoidable. And although the reform and opening up have been carried out, some enterprises are still in the planned economy era. Therefore, while taking over the textile factory and textile workers, the quota of textile raw materials given by the state is definitely the key to the survival of the textile factory.
However, this point will be relatively freer after the reform and opening up of the market. Raw materials can be negotiated by themselves or imported. However, it is better to take these quotas now. Anyway, the quota is in excess of demand now. Many unprofitable textile factories feel that this quota is a burden. It is much easier for him to take it at this time.
He went to the Development and Reform Commission for two days in a row, and used his private relationship to make an appointment with several leaders for dinner. In the end, although he gained something, the result made Yang Dongxu not very satisfied.
But whether he was satisfied or not, he could not stay in Yanjing. Yu Feihong in the Magic City had already kept the people who should stay, and Yang Dongxu had to rush back to deal with it.
"Not going well?" The plane arrived in Shanghai in the morning. Yu Feihong came to meet Yang Dongxu in person. Seeing that Yang Dongxu looked a little strange, he said.
"The problem above is not big, it's mainly below. Some of these textile factories have to go bankrupt and liquidate because they can't hold on any longer. You should know what the situation is." Yang Dongxu rubbed his forehead and said.
"Why don't we try it on a small scale first? I have also learned about the output of a large textile factory these days. To be honest, the scale and output of domestic textile factories are really over-capacity, and the over-capacity is not a little bit. Some will definitely be eliminated."
"It is over-capacity for the domestic market, but aren't we talking about exports?" Yang Dongxu sighed.
If he can take over all the textiles according to his own ideas, it will be no problem for him to help the country bear the bomb of textile factories, and the total amount of textile exports can be doubled in a short time.
Unfortunately, he is willing to take on the responsibility, but many people are unwilling to let him take on the responsibility. The ones that can be taken over are basically those whose machinery and equipment are aging and whose products cannot keep up with market changes and are really going bankrupt and liquidated. Except for those skilled workers, all these factories are at a disadvantage. Unless the factory's industrial land can be turned into commercial land, Yang Dongxu will have a batch of land in hand in advance.
"So what do you mean?"
"Once we start, we will continue to work. We will first contact the bosses of domestic textile factories to see how many orders they can take. Then we will contact those foreign companies to see what we can get, and do OEM and production together." Since he decided to do this, Yang Dongxu naturally had no reason to give up.
Besides, the reform of textile factory disputes across the country has begun. Those who don't want him to bear the brunt of the thunder only want to eat meat, and they won't even think about leaving the hot pot. As for what to do with the pot in the end, they won't ask.
So although the negotiation results at the beginning were a little bit unable to meet Yang Dongxu's expectations, this was also an opportunity to expand his own textile factory. At most, he would invest more in new machinery and equipment. With so many skilled workers, he would still have a bright future after gritting his teeth and sticking to it for a few years.
"How have you found out about silk?"
"I asked some familiar people, and the annual output is indeed not much. The number of silk farmers has been declining year by year, and the output of silk can be imagined. So it's not a big problem to eat it all, but it takes time to plan it. It's not good to be too hasty."
"Then let's take it slowly. Well, first sweep the silk circulating in the market, and then we will go to the counties and cities that used to make a living by raising silkworms to promote silkworm breeding, so that we can catch up with the earliest spring silkworms next year. In the past, raising silkworms was not profitable, so silkworm farmers had to change their careers. Now that they can make money, they are definitely willing to do their familiar old business."
"This It would be best if we could get some support funds from the Ministry of Agriculture. Even if there is no funds, we can pay for it as long as there is a name. Otherwise, local officials will definitely not want to talk. There are many people who want to do things now, but there are also many officials who are too lazy to take responsibility. "
"You should worry about this. When the time comes, we can set up a joint venture silkworm farmer management company with the local government. There is money to be made and political achievements can be made. In addition, there is a name above, which can speed up the promotion. "
"Okay, I'll do this. But if you really want to take up most of the domestic textile production, do you know how much it is?" Yu Feihong asked with some concern.
"I know how much information I have read. But these are really not many. At first glance, domestic textiles account for 13.2% of the world, which is quite a lot, after all, there are so many countries in the world.
But this is far from reaching the limit of international demand for textiles. Even if it reaches the limit, we can still continue to squeeze the market share of other companies with high-quality and low-cost methods. How far can we go."
"Then how much market share do you think it will take to reach the point?"
"Let's set a small goal of one-third first."
"You are dreaming, the foreign exchange has more than doubled and is heading for 100 billion." Yu Feihong was stunned.
"According to the current price, it has more than doubled and is heading for 100 billion, but if it can really occupy one-third of the market share in a few years, you will multiply 100 billion by 3." Yang Dongxu said.
"It's getting more and more outrageous. The total amount of all textiles and clothing accounts added together this year is not that much." Yu Feihong felt that Yang Dongxu was getting more and more unreliable.
"Let's wait and see what happens. I'll arrange for the domestic textile factory bosses to talk to them tonight." Yang Dongxu smiled and didn't talk about this issue.
300 billion US dollars is only one-third of the total export of textiles and clothing. Is this exaggerated? It seems exaggerated now, but with the continuous development of the economy, the textile and clothing export market can definitely be a trillion-dollar market. Yang Dongxu is extremely confident about this.
In a cafe in Lujiazui, which already has the shadow of the prosperous CBD in the future, the elegant piano sound keeps echoing in my ears. As foreign capital not only enters China, some foreigners' favorite living habits are also gradually introduced into China.
And coffee is now a very high-end leisure and entertainment activity. This kind of leisure can only be enjoyed by some petty bourgeoisie in first-tier cities, and ordinary families can only look at it enviously at the door. Therefore, people who can enter the cafe now are not many people who object to being called social elites and successful people.
Opposite Yang Dongxu, William quietly tasted coffee with a warm look on his face. Yang Dongxu has been in the Magic City for five days. At first, he led the negotiation team to negotiate with the boss of the domestic textile factory, and finally got two-thirds of the domestic textile production in the next three years, which took him three days.
At the same time, negotiations with foreign clothing brands for OEM were also interspersed. Compared with the large-scale domestic orders, the OEM side did not meet expectations, with only a few relatively conservative orders.
"Can't we really discuss it again?" After a while, William spoke first.
Although whoever speaks first at this time will be at a disadvantage, he had to speak. Because the young man in front of him who amazed him did something that made him crazy these days.
He actually showed the suggestions he had given him before to the heads of several clothing brands. Although because of the lack of attention to the Chinese market, these heads were a little hesitant and prepared to report to the headquarters first and wait for the results.
But he knew that as long as the boss of this clothing brand had no shit in his brain, he would definitely press the proposal. Thinking about the practices of several big brands to strangle Nike's entry into the clothing industry, he really didn't have much time left, so he really had to speak first.
"OEM is OEM, Silk must cooperate, not just sell raw materials, there is no room for negotiation on this point." Yang Dongxu had no intention of giving in.
OEM is an industry he must promote, so it doesn't matter if he gives in in this regard. But silk is his trump card, and it is obviously not his style to just provide raw materials and make some money from materials.
So he proposed a share, just a raw material, and it is a raw material that he doesn't know whether it will succeed, and asked a big brand to share the product sales. When William first heard the request, he thought Yang Dongxu was crazy.
Every industry, no matter how big or small, is a pyramid-shaped market. Although the middle market share is the largest, it is the top handful of markets that reflect the brand value. This market may only account for one thousandth of this market share, but the profit is more than 20%. This top product is luxury goods.
Nike is an international brand, but it is still a long way from luxury goods, because they don't have their own flagship luxury products. But from silk, he saw that Nike became a hit in the clothing market and had the opportunity to enter the ranks of luxury goods, so even if he was facing a madman, he had to continue talking.
"You are asking for too much." William's face could no longer remain calm.
The young man in front of him, whom he admired very much, became so annoying. He felt powerless in the face of an old fox in a business negotiation.
"No, no, no, I am helping Nike to improve its brand value. Believe me, as long as the luxury clothing featuring silk can be recognized by the rich, Nike's brand value will definitely increase, and your stocks will naturally increase at the same time. So this is mutually beneficial, and you are bullying others by insisting on only raw materials."
"No room for negotiation?"
"At most, news from other brands will come tomorrow, and you'd better make a decision tonight. And I have a message for you. I have already won all the silk products in the silk market this year, as well as the acquisition agreement for the next five years. If you want to obtain silk materials from other channels, you can only talk about it after five years."
"Has anyone told you that you look annoying when you smile?" William looked at Yang Dongxu indignantly.
"As an elder, you should learn to be generous." Yang Dongxu stood up and smiled and held out his hand: "Happy cooperation."
"But I'm not very happy now." William looked at Yang Dongxu without holding out his hand, and Yang Dongxu looked at him with a smile and didn't mean to take his hand back. But a few seconds later, William stood up helplessly: "You win this time, but it must be stated in the contract that this product must help Nike win a certain share of the luxury goods market, otherwise there will be no profit sharing."
"That's natural." Yang Dongxu's smile became more sunny, and then the corners of his mouth raised to reveal a wicked smile: "Since the cooperation has been reached, let me tell you a secret. In fact, I am also a shareholder of Nike, so it is also what I hope to make it stronger."