Chapter 3902 3904 [Own brand]
After the completion of Jianghe Garment Factory, orders came in like a snowflake.
CK, GAP, Ralph Lauren, Mike Myers...a large number of clothing giants are rushing to cooperate with him, and there are so many orders that they can't even take them.
Originally, Chen Jianghe thought that 50 million yuan would allow him to build a factory, recruit tens of thousands of employees, and have more than 5,000 machines, which would definitely be enough.
Unexpectedly, merchants are so enthusiastic. Even if we recruit more employees and work in three shifts, we still can't keep up with the requirements of merchants.
This attitude really frightened him.
“I really didn’t expect that there were so many orders.” He called Xiang Nandao.
In the 1990s, it was possible to make overseas phone calls in Yiwu. Unlike previous overseas calls, which were limited to a few telephones at the post office.
Before making a call, you must pay a deposit, fill out a form, and explain the reason for the call, and then the staff will help dial the number. And the call quality at that time was also very poor, intermittent, and I had to speak loudly to be heard.
With the improvement of supporting facilities, overseas phone calls have been promoted and popularized, and calls can be made directly in the factory.
"You know now that the 500 million investment I mentioned is not too much." Xiang Nan smiled, "Even if we expand the factory ten times more, 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 pretty huge market, and what we have to do is share a piece of the cake. "
People’s demand for beauty is endless.
In the 1960s and 1970s, although cloth was available by ticket, people still found ways 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 the limited supply of cloth was cancelled. Clothing production and sales reached new highs.
Moreover, trendy items such as bell-bottom pants, jeans, fitness pants, bat shirts, and Sachiko shirts are also widely welcomed by young people.
In the 1990s, the types of clothing became more and more diverse. People who have become wealthy no longer only pursue styles and fabrics, but also begin to pursue brands.
International big brands are becoming more and more popular in the mainland and are favored by many upstarts. In 1992, Louis Vuitton opened its first store in Beijing; in 1993, Dior officially entered the mainland; in 1997, Hermes, Chanel in 1999...
The old tradition of three years of new work and three years of old work, and another three years of mending is gone forever.
As we enter the second millennium, people’s desire for clothing is getting higher and higher. In the past two thousand years, mainland clothing sales have been 96 billion; by 2023, mainland clothing sales have exceeded one trillion, with sales increasing by an average of 50% every year, faster than housing prices.
It can be seen that the clothing industry has great potential.
Chen Jianghe couldn't help but feel excited when he heard what Xiang Nan said.
With a population of 5.6 billion in the world, one person buys one set of clothes a year, which is 22.4 billion pieces. A piece of such a big cake would be enough for Jianghe Garment Factory to eat.
…
“But OEM is just the beginning.” Xiang Nan said, “You should try your best to learn their design, craftsmanship and marketing, and then create your own brand.
The shirt is not valuable, what is valuable is the trademark. As long as your brand is loud enough, you can earn more than ten times, or even dozens or 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 be so profitable. The cost of producing a shirt is less than 20 yuan. However, a product with the Ralph Lauren trademark can be sold for fifty dollars, which is more than ten times the price difference.
So Xiang Nan is right, creating a brand is crucial.
I can't just look at the large number of OEM orders and be stupidly happy. In fact, he still earns hard-earned money. If he wants to make big money, he still has to create his own brand.
“Well, work hard, I’m optimistic about you.” Xiang Nan smiled.
…
Just behind the prosperity of the Yiwu faction, some problems have emerged one after another.
One is the problem of triangular debt. The so-called triangular debt refers to debts owed to each other. 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 this happened is mainly due to the incompatibility between the planned economy and the market economy.
Most of those state-owned enterprises are products of the planned economy. Although they have shifted to a market economy from the 1980s to the 1990s, they did not correct their ideas in time and still went their own way.
There is no way to improve the process, upgrade the technology, and open up the market, but still use the old process, old technology, and old sales channels.
But they have not changed, but consumers have changed.
Consumers in the 1990s have opened their eyes to the world and seen more advanced, trendy, cheaper and better-quality products. Those old products naturally cannot arouse their interest.
Hence, the products produced by these factories cannot meet the needs of the people and have no market at all. This resulted in product backlog and slow sales. The seller cannot get the money back and cannot pay the processing factory.
Processing factories have no choice but to borrow money to produce, and then continue to have backlogs and slow sales, entering a vicious cycle of big losses for large production, small losses for small production, and losses even if they don't produce.
Just like in the play, in the Puxi Socks Factory where Chen Jianghe worked, in the 1980s, the supply of socks exceeded the demand, and they had to go through the back door to get the goods. Nowadays, no one wants the socks from Puxi Socks Factory. They are all sitting in the warehouse and cannot be sold.
Even though there was no money to pay wages, the factory had not made timely changes.
Just like in the play, Chen Jianghe brought a new style of socks that the design department had worked hard to design, hoping that the factory leaders would agree to produce them, but the factory leaders did not approve...
There are many cases like this, not just one.
…
By 1992, triangular debt had reached 300 billion yuan, accounting for one-third of total bank loans. The situation was quite serious.
Triangular debt also has an impact on Yiwu. Although the Yiwu small commodity market was very prosperous at that time, with dealers from all over the place coming to purchase, it was a mixed bag.
In order to open up one more business route and get one more customer, merchants in Yiwu often resort to vicious competition. Your goods are cheap, and mine are cheaper than yours. If you want to charge full payment for shipment, I will only charge a 50% deposit...
Generally speaking, the trading order is disordered, the settlement discipline is lax, and the concept of credit is weak.
This also gave those rogue merchants an opportunity to take advantage of them. They bought goods on credit everywhere in Yiwu and delayed payment, causing merchants to have difficulty operating and had to borrow money to survive.
· Downstream dealers owe money to upstream middlemen, middlemen owe money to upstream processing plants, and processing plants owe money to banks... This has made Yiwu full of people who owe debts, avoid debts, and collect debts, creating a mess.
Even Jianghe Garment Factory did not receive the remittance after sending out millions of goods. Chen Jianghe was so anxious that he became hoarse.