Chapter 388 Initial layout of the clothing industry

Chapter 388 Initial layout of the clothing industry

Chapter 388 Initial layout of the clothing industry
The Spring Festival passed quickly, and the last day was here in the blink of an eye.

Yang Wendong didn't really care about going to work. However, not having to think about work for the next few days naturally made him feel more relaxed.

In the afternoon, he came to the rooftop balcony and lay on a lounge chair basking in the sun. The temperature in Hong Kong is not very cold in winter. In addition, there is ultraviolet-blocking glass on the roof, and the sunlight will rise in the closed environment. The temperature is just right and very comfortable.

"Brother Dong." Su Yiyi's voice came from behind. Yang Wendong put down the newspaper in his hand, sat up and asked with a smile: "Yiyi, you come up to bask in the sun too?"

Su Yiyi replied: "Yes, it's more comfortable to sunbathe, but I have something to ask you."

"What's the matter?" Yang Wendong asked.

Su Yiyi said: "It's about Yiran's House. I want to invest heavily this year and make it bigger."

"This year?" Yang Wendong thought for a moment and said, "Okay, but don't buy the property. You can rent it, but don't set a fixed rent. Follow the market fluctuations and take a floating approach."

"Brother Dong, are you worried that housing prices will plummet?" Su Yiyi asked with a smile.

This matter is naturally no secret within the Yang family. Yang Wendong also said last year that the housing prices were too high and there might be problems in the future;

Actually, this is nothing. Many people have such a judgment. Anyone who knows a little about housing prices will have some ability to speculate, but the real difficulty lies in predicting when housing prices will have problems. Choosing this point is the most difficult.

If you guess right and plan ahead, you can make a fortune. On the contrary, even if you know that there may be problems in the future, if there is a mistake in predicting the timing, you will definitely suffer heavy losses.

"Yes, housing prices are already high now. Maybe they will rise a little this year, but the trend is inevitable." Yang Wendong shook his head and said, "Hong Kong citizens can no longer afford the current housing prices. It's just that a large amount of overseas capital has come to Hong Kong and they are speculating.

But these overseas investors are not doing charity. When they think it’s enough, they will cash out. Once they leave, it will cause an avalanche.”

"Yeah, I understand." Su Yiyi has learned a lot over the years and has a basic understanding of the knowledge: "In fact, there is no rush to expand the store. If Brother Dong thinks it is not cost-effective to invest now, then we can wait a little longer.

My idea is to find a way to control the cost. Only when the cost is low can the clothes be sold cheaper or with higher profits, so I want to build a clothing factory myself."

"Build your own clothing factory?" Yang Wendong thought for a moment and said, "Are you sure? There are actually quite a few clothing factories in Hong Kong. You don't have to build all of them yourself like me."

The automatic control industry chain can indeed reduce costs, but if it already exists nearby, then there is no need to go through all this trouble, at least in the early stages.

There is no way for my own company. The paper, plastic and glue that Changxing Industrial needs are not available in Hong Kong. If we rely entirely on imports, the cost will be frighteningly high. The same is true for Honor Electronics. They must gradually localize, and even the same is true for Changxing Shipping’s ship maintenance.

This is because Hong Kong lacks these things, and the cost is too high if it does not produce them itself. However, clothing is different. Hong Kong is good at clothing, except for mid- to high-end products.

Su Yiyi nodded and said, “I know, but the problem now is that although Yiranzhijia is positioned as cheap, its quality requirements are at least medium;
The quality of the clothes provided by my suppliers varies greatly. Because they are made in different factories, many clothes are made in the same size but with significant differences. It is too difficult to make them all uniform, and they always fail to do well. If they are too embarrassed, their costs will be too high. "

"If that's the case, then building our own clothing factory does make sense." Yang Wendong nodded and said, "Most of the clothing factories in Hong Kong today are low-end. In the long run, we really can't rely entirely on them."

In the early days of the textile industry, low-end clothing was produced, starting with socks, hats, etc., and then gradually improved to ordinary clothes that could be worn, then to medium and high-end, and finally to local self-built brands.

Hong Kong's current textile and clothing industries are obviously only at an average level. Although the annual export volume is very high, they are all cheap clothes, and they win by quantity overseas. There are far fewer mid- to high-end products, and the equipment involved is also different. It takes a lot of time to gain recognition from overseas customers.

Although Yiranzhijia’s requirements are not very high, they cannot be compared with street goods. If you run your own textile factory, you can indeed better control the quality.

Su Yiyi smiled and said, "Brother Dong, do you agree?"

"Okay." Yang Wendong said, "I can let Changxing Group take charge of the land and infrastructure, but you will be responsible for the equipment. But since you are pregnant now, it is better not to get involved in person. Find a professional manager to manage the garment factory in the future."

"Well, okay." Su Yiyi said with a smile: "No problem."

Yang Wendong asked again: "By the way, can Hong Kong produce the yarn used in clothes now?"

The material of clothes is actually not all cotton, but cotton with a lot of chemical fibers or other petroleum derivatives added, even socks are the same, and the process is spinning.

"Yes, there are a lot." Su Yiyi said, "A lot of Hong Kong's spun yarn is exported. What's wrong? Do you want to run a spinning mill too?"

"Haha, I'm quite ambitious. I like to develop upstream industries, and then every industry can make money from other people outside." Yang Wendong smiled and said, "Changxing Industry is like this. Plastic particles, paper and glue are all hot sellers."

Su Yiyi said: "I know that too, but the premise of doing this is that I can sell enough clothes here, otherwise it is still not cost-effective, unless you plan to compete normally with other companies."

"Let's talk about it later." Yang Wendong said, "Just focus on running the garment factory first, and we'll consider spinning when the scale is large enough."

In fact, when the economic crisis broke out in 66, it was not just the real estate market that provided opportunities, but also the industrial market, because many bosses suffered heavy losses from real estate speculation and were forced to abandon some of their industrial factories;
Or if they want to immigrate for other reasons and cannot take the factory with them, they can only sell it at a low price.
So there will be many golden opportunities at that time, but the factory is not a piece of land or property. You are responsible for the management after the acquisition, so how to operate it will have to be seen later. February 1964, 2.

On the first day of work, Yang Wendong convened the company's top executives for a simple meeting. It was not very formal, but just a post-New Year pep talk. After all, everything that needed to be said had been said before the New Year.

Afterwards, everyone went back to their homes, and Zheng Zhijie and Wei Zetao were left behind.

The two came to the window in Yang Wendong's office, where there was a tea table where they could make tea and drink it directly. Many bosses from Hong Kong or other Chinese regions like this very much.

"Sit down." Yang Wendong smiled, then fiddled with the tea leaves, preparing to make tea.

Wei Zetao quickly said, "Mr. Yang, let me do it."

Yang Wendong shook his head and said, "No, I'll do it myself. I also like this process."

Seeing the boss say this, Wei Zetao and Zheng Zhijie had no choice but to give up. The three of them chatted casually for a while, and when Yang Wendong prepared the tea, he said, "Old Zheng, you should know the situation of Yiranzhijia, right?"

"I know that I personally manage all the stores of Yiran Home." Zheng Zhijie said with a smile: "At present, Yiran Home has a total of 137 chain stores in Hong Kong, 96 of which are our own properties, with a total area of ​​17.6 square feet. It is now the largest chain clothing store in Hong Kong."

Naturally, he cared a lot about the boss lady's business and supervised many things personally. Otherwise, considering the scale of Changxing Real Estate, he might not be able to take these small shops seriously, especially since many of them were in the countryside.

And Su Yiyi is not just an ordinary boss lady. She grew up with the boss in poverty and shared the joys and sorrows. In terms of status, she is probably equivalent to Zhu Yuanzhang's Empress Ma.
Yang Wendong nodded and said, "Yiyi told me yesterday that she wanted to build a garment factory because..."

After the boss finished explaining the reasons, Wei Zetao also said: “What Mrs. Yang said makes sense. Hong Kong’s manufacturing industry is now very large, and the scale of exports even exceeds traditional trade;
But most of the industries are low-end. In the whole of Hong Kong, apart from a few products of our Changxing Group, there is hardly any company that has any technologically advanced or special products.

The same is true for the garment industry. From socks to shirts to winter clothes, Hong Kong can produce everything, but they are all outsourced to others. When they are exported, they are mostly street goods. In Hong Kong’s own high-end Lane Crawford department store, the clothes in it are basically imported.”

"Normal. Japan also developed in this way." Yang Wendong smiled and said, "With the development of time, it will always upgrade, but I don't want to wait, so I plan to copy the past process of Changxing Industrial and help Yiranzhijia to enter the garment industry. I won't say high-end, but at least do mid-range first."

No matter what industry, as long as you gradually control the front end of the industrial chain, the cost and quality will be optimal. If you have capital to control the terminal in the future, it will be perfect and other competitors will never have the chance to defeat you.

Therefore, even if there is no foresight advantage in the clothing industry, it is still possible to realize one's own interests through the control of upstream and downstream. Although it is not as good as Future Electronics or Changxing Industrial, the upstream and downstream of the clothing industry are very high in terms of scale, profit, number of employees and influence.

Of course, this is also because Su Yiyi is in this industry, otherwise, Yang Wendong would not have participated in it casually.

"I think it's possible." Wei Zetao naturally understood what the boss meant and said, "I can help Mrs. Yang build a large clothing factory. As long as Yiran's family needs any type of clothes, we can produce them. Hong Kong has no shortage of talent and equipment.

We can even do export business like other peers. With our Changxing Trade's overseas channel network, we can also participate in the clothing sales business, or ask them to introduce some, which should not be a problem. "

This is the strength of large companies and large groups. When they have people, money and channels, they can expand into other industries. Even if they cannot match resources 100%, % or % will be no problem. This brings huge innate advantages.

Yang Wendong was very satisfied with Wei Zetao's performance. He nodded and said, "Okay, I'll leave this to you. Buy land, equipment, and recruit people, especially management talents and professional managers. Yiyi is not suitable for too much work. After you prepare these, review them for me first."

"Okay." Wei Zetao agreed, and then asked, "Mr. Yang, where do you think the factory should be located? Hong Kong Island or Kowloon Peninsula? Which town should we choose?"

Everything else is easy, but there is no absolute choice as to where the factory is located. It is entirely up to the boss's request. For example, the choice of Kwun Tong for Changxing Industrial Park was decided by Yang Wendong. Under the circumstances at the time, any town would be fine.

Yang Wendong looked sideways at the map of Hong Kong on the wall, thought for a minute, and said, "Let's choose Kwai Chung, near Drunken Bay. There's a lot of open space there, and the traffic is also good."

With the development of containers in Europe and the United States, governments around the world have also seen that this thing is a new development opportunity, including the Hong Kong government;

There is only one big problem: once container terminals are established, what will happen to the traditional dock workers? These are all young people, and some are violent elements. They can live peacefully as long as they have work to do, but if thousands or even tens of thousands of people suddenly lose their jobs, the consequences will be disastrous.

Therefore, in many places including Europe and the United States, the biggest problem with container terminals is not funding, but these people. Before the 60s, Britain was the largest terminal transit center in Europe, but because of the resistance of these people, it was surpassed by Norwegian containers.

It is actually similar in Hong Kong. How to develop the container terminal and ensure that these 10,000 workers do not cause trouble?
But these have nothing to do with him. He knows that the container terminal will be in Kwai Chung in the future. Now that he has the opportunity, he will naturally hoard land here. At the current peak period of real estate, he is only investing based on the needs of various industries. After the real estate crisis breaks out, Kwai Chung will also become one of his key targets.

"Okay, then I will go to Kwai Chung to look for a suitable location." Wei Zetao nodded.

Yang Wendong said: "We also need to consider the future expansion needs. If it really doesn't work, there needs to be enough open space around. We may be able to build an upstream and downstream industrial chain in Hong Kong, including a large spinning mill."

Either don't do it, or make it bigger and stronger. In the future, many industries can only rely on scale to reduce costs. If they can't be expanded, then with the current scale of Changxing Group, it would be better not to bother and directly support others.

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(End of this chapter)