Chapter 174 New Cooperation with 3M Company
Chapter 174 New Cooperation with 3M Company
Tsim Sha Tsui, Changxing Industrial Headquarters:
In the morning, when Yang Wendong just arrived here, a secretary came over and said, "Mr. Yang, this is the key content of this morning's morning newspaper. Please take a look."
"Okay, thank you." Yang Wendong nodded and said politely.
As a businessman, the most important thing is to know all kinds of information from the outside world, especially in this era, he must pay attention to anything that may affect the current situation.
Even if you, as a time traveler, know that there will be no problems in the future, the public does not know that once something big happens, it will still affect the market.
Therefore, he would ask his secretary to collect all the newspapers every morning, cut out some important news that might be related to him, and then summarize them for him.
"You're welcome, Mr. Yang." The secretary replied politely and left.
Yang Wendong flipped through the news, mostly about international affairs.
"dong dong dong~"
After a while, there was a knock on the door. Yang Wendong looked up and said with a smile, "Come in."
Wei Zetao walked in and said with a smile, "Mr. Yang, the sales of the suitcases are out. In seven days, 1853 units were sold in Hong Kong."
"More than 1800, which means the sales volume is about 4?" Yang Wendong did some mental calculations.
The suitcase launched this time is about 20 inches in size, which is not very large. The initial price is HK$22 each.
The reason why we make small sizes first is because suitcases in this era were all carried by hand, so they were generally not big, and people were basically accustomed to this size.
More different sizes may be introduced later.
"Yes." Wei Zetao said: "Mr. Zhao's channel data feedback shows that the sales in the airport are very good; while the sales in general shopping malls are a little worse, but the advantage is that there are more sales points, and the total sales volume is still high."
"Well, OK." Yang Wendong nodded and said, "But the Hong Kong market itself is still too small. How are the preparations overseas going?"
In the early days of our business, due to insufficient channel resources and publicity, we were not in a hurry to expand overseas markets. Instead, we first conquered the Hong Kong market and then considered other areas.
But now, Changxing Industrial has grown to a large scale, has some connections in terms of channels, and has its own media, so it can make its products famous in a very short time.
Therefore, for a small Hong Kong market, we can only test the waters and see the feedback. The important markets are definitely overseas.
Wei Zetao replied: "Mr. Yang, we have already made preparations in this regard. Taiwan and Japan will be the markets we will explore next. We also have distributors of sticky hooks and spin mops there.
We will directly send a batch of goods to them, and they will distribute the goods locally, with the core focus also being shopping malls and airports.”
"It's convenient to have channels." Yang Wendong smiled and then asked, "But whether these companies can become exclusive distributors will have to be determined later."
"I understand. It's just normal cooperation now." Wei Zetao said, "We will still be cautious in selecting exclusive distributors.
However, the luggage compartment is too big, and the cost of both transportation and retail will be very high, and may even be higher than our factory price.”
"Let's talk about transportation later." Yang Wendong paused and said: "Japan is better, but if it's Europe or the United States, the cost will be even higher.
In the early stage, we took the high-end route, so even if the terminal price is high, it is not a problem. Anyway, our initial production capacity needs a process of improvement. "
Wei Zetao nodded and said, "Yes, but the sales in the Hong Kong market are pretty good now. Dehe is planning to build another factory to meet the future demand from the Japanese and Taiwan markets."
"Do we still need a joint venture?" Yang Wendong asked.
Two months ago, Yang Wendong authorized Changxing Industry to jointly build a factory to produce suitcases with its supplier Dehe Injection Molding Factory. This can be regarded as a mutually beneficial cooperation that can further bind the interests of both parties.
"That's not necessary." Wei Zetao said, "Liao Chong Hing Bank already knows the number of suitcases in Hong Kong and has seen our trolley suitcases, so they believe that our project has great potential and are willing to provide financial loan support.
However, because there is no collateral, our company is required to provide a guarantee on the agreement.”
"We can provide a guarantee, but the guarantee itself is also a resource investment, so we need to calculate this carefully." Yang Wendong agreed and said, "In addition, if we provide a guarantee, then Liao Chong Hing Bank will have almost no risk, and the interest rate will have to be reduced to a normal level, or even lower."
"Okay, I'll let the legal department take care of this." Wei Zetao agreed.
Yang Wendong added: "In addition, Dehe was the most proactive in cooperating with us at the beginning, so we can give you more orders in the future.
But we can’t just give them the business. The sales of trolley cases will not be low in the future, so we need to choose other suppliers in the same joint venture model.”
"That's no problem." Wei Zetao said with a smile: "In fact, many suppliers have already contacted us."
"Yeah." Yang Wendong nodded and asked, "Robert should have come the day before yesterday, right?"
Wei Zetao said: "Yes, he came to Hong Kong the day before yesterday, but he didn't let us pick him up at the airport, saying he had something to do. He just asked us for an English translator."
Yang Wendong asked: "Did you need a translator? Did you travel in Hong Kong?"
Wei Zetao said: "No, according to the feedback from the translation I gave them, they visited several factories in Hong Kong in the past few days, and also visited many suburban areas. It seems that they are choosing a place." "Could it be that they want to invest and build a factory in Hong Kong?" Yang Wendong guessed.
It's really possible.
In the past, 3M did not invest in Hong Kong, but now because of its butterfly effect, 3M has a partner of considerable importance in Hong Kong.
In addition, in the 60s, low-end industries in Europe and the United States began to relocate, so 3M, which might have originally transferred its low-end factory production capacity to Mexico and Eastern Europe, might really consider Hong Kong.
Wei Zetao said: "It is possible. In the past one or two years, many factories in Europe, America and Japan have started to invest in Hong Kong.
On the one hand, it is because Hong Kong has low labor costs, and on the other hand, it is for the Commonwealth market.”
"That's not bad." Yang Wendong smiled.
Being able to attract a top American giant to invest in Hong Kong means that it has contributed to the development of Hong Kong's economy, especially by creating a large number of jobs.
When big companies like 3M come to Hong Kong to recruit people, the salary and benefits are definitely much better than those of Hong Kong's low-end private factories. This is also a good thing for the lower-class Chinese in Hong Kong.
Wei Zetao replied: "I just don't know what industry they want to transfer here."
Yang Wendong thought for a moment and said, "It's probably ordinary tape. The market for this thing is very large, but the profit is low. If it is produced in the United States, it will be a loss. But in Hong Kong, there will be no problem."
"It's possible." Wei Zetao didn't ask any more questions and said, "Then I'll go talk to Dehe's boss about the new factory first."
"Okay." Yang Wendong nodded.
……
Two days later, Robert and Robin arrived at Changxing Industrial's factory.
Yang Wendong personally took them around the workshop and then came to the reception room.
The secretary served coffee to everyone. Yang Wendong said with a smile, "Robert, Robin, this is Sandos coffee from South America. It tastes very good."
"It smells delicious." Robert smiled and took a sip: "It really lives up to its reputation."
"If you like it, I'll give you some." Yang Wendong said with a smile.
"Okay, thank you." Robert did not refuse. This kind of small thing was purely a courtesy, and it would be bad not to accept it.
Afterwards, after a few people chatted, they began to discuss the issue of sticky notes, which is naturally a must-talk topic in the double anti-dumping.
The second phase is about to be completed, which can also guarantee the demand in the United States, and also makes Robert and others very satisfied.
Then, Robert said, "Eric, this time I came to Hong Kong, in addition to discussing the supply of sticky notes with you, 3M Company has another important matter that we want to discuss with you."
"What's the matter?" Yang Wendong asked.
Robert said: "As you know, some basic industries in the United States are moving overseas because of high labor costs, and we at 3M also have such plans.
Our original choices were Mexico and Eastern Europe, but recently, the company's top management is more optimistic about Hong Kong, so they asked me to come and check out the situation here in advance."
"Hong Kong is definitely a suitable place for investment." Yang Wendong smiled and said, "Is there anything I can help with? Can you provide some information about Hong Kong's local industries and laws?"
When a large enterprise invests in a certain place, it will inevitably investigate a lot of information in advance, which will take a lot of time, but if it has the help of a local consortium, it will definitely be much more convenient.
"It would be even better if you could help me with this, Eric." Robert continued, "We are planning to move part of the tape production to Hong Kong, so we also hope that your glue factory in Hong Kong can supply us with glue."
"Of course that's not a problem." Yang Wendong naturally had no reason to disagree, but he still asked: "Robert, why don't you invest in glue in Hong Kong?"
Robert laughed and said, “Because some people on the board do not agree with large-scale investment in Hong Kong, they are worried about the ZZ issue;
So we will only invest in the production of tapes here, and for other things, if we can use the local supply chain, we will definitely use it.”
"So that's how it is." Yang Wendong said with a smile.
In this era, not to mention abroad, even in Hong Kong, many people are worried about ZZ happening.
The economic crisis in 66 was essentially caused by this.
The Jardine Matheson Group, the largest company in Hong Kong, has been implementing the strategy of making money in Hong Kong and then investing crazily overseas in recent years.
……
PS: Please give me a monthly ticket
(End of this chapter)