Chapter 582 Expectations of the Apparel Industry

The cooperation with Buffett was agreed upon during a lunch between the two. In itself, this is just a simple financial investment, which may be very profitable in the future, but the funds involved are not much at the moment, and the two parties are just trying to cooperate first.

However, for Yang Wendong, it is also acceptable that his funds in the United States can follow Buffett's investment. After the 80s, his golden finger prophetic effect can play the greatest role, provided that the history of American business has not changed because of his butterfly effect, which is actually very likely.
In addition, he was not very familiar with the U.S. stock market in the 70s, so it was a good choice to hand over part of the U.S. funds to Buffett, a financial expert, for management. Even his other funds could follow his investment direction in the future.

After the two finished their lunch, Yang Wendong arranged a Rolls-Royce to take Buffett back to the hotel. He then returned to the company, called Fang Xianming, who was in charge of financial business, and informed him of the matter.

Fang Xianming replied: "Mr. Yang, Buffett is quite famous on Wall Street. Do we really trust him?"

"It's not that I trust you that much. Let's try it out with a few million first. If the cooperation goes well, we will increase the investment." Yang Wendong said indifferently.

Although he knows the future and is confident in his investment, he still has to have logic, processes, rationality, etc. in doing things. After all, a large company must rely on rules to restrict its behavior.

Even if you don't need to explain too much to your subordinates, you still have to give them a reasonable reason. In this way, when you are not paying attention to something in the future, your subordinates will know whether their behavior satisfies the boss's needs.

"That's fine. There's more and more money coming from the US. For the long term, we should invest some of it." Fang Xianming nodded and said, "Then I'll contact Mr. Lin and ask him to prepare the funds, and then discuss all the details with Buffett's company."

500 million is nothing to the boss, but it is a huge sum of money for others. Such a large amount of money must be handled with great caution.

Yang Wendong said: "Okay, once the details are finalized, send the content to me."

Naturally, he would not participate in such detailed negotiations, unless there was a real irreconcilable conflict, then the bosses of both sides would participate;

Otherwise, there are too many projects involving this level of investment, and if everyone gets involved, he wouldn't be able to handle it all by himself.

Berkshire's investment was also decisive. After the agreement was signed, the joint venture company immediately applied to the Hong Kong government for an industrial land of 50 square feet in Hung Hom to build a factory to produce textiles.

The Hong Kong government was shocked by the large area and rejected it immediately. Zheng Zhijie, who was in charge of real estate business, went to the Lands Department of the Hong Kong government in person to negotiate with the person in charge, Director Chen.

Understanding Zheng Zhijie's intention, Director Chen said, "Mr. Zheng, if your group wants to invest in a factory anywhere in Hong Kong, we are happy to grant land, but the area you want this time is too large, 50 square feet, isn't that a bit exaggerated?"

In fact, anyone with a discerning eye knows that Changxing Group is taking the opportunity to hoard land, but the Hong Kong government and even the business community have already acquiesced to this behavior, provided that you sincerely invest in factories to drive employment, tax revenue, exports, etc.
As long as it can bring benefits to the Hong Kong government, it will turn a blind eye to the appropriate hoarding of land. Only factory owners can do this. It is almost impossible for other real estate companies to apply for industrial land. They must have real projects.

However, the giant Changxing Group is an exception. Its real estate scale ranks second in Hong Kong, but its industry ranks first in Hong Kong, even larger than the second to ninth combined. With such a scale, the amount of industrial land it owns during its long-term development is astonishing.
Restricted by tacit rules, the Hong Kong government does not care much about it. What has been given has already been given and it is impossible to take it back by force. However, if you apply for it again in the future, there will definitely be some restrictions.

Zheng Zhijie shook his head and said, "Not much. This time we introduced the most advanced textile technology from the United States. In addition to the initial chemical fiber production, the subsequent weaving, printing and dyeing are all here.

The equipment involved cannot be placed on the second floor, so it can only be placed on the first floor. We also need to consider the environment, so we need a larger plot of land with some green space in the middle. "

The other party also knows his purpose, and the other party also knows that he knows it. All this is just to find a suitable excuse. The Hong Kong government also needs steps to go through the process;

Director Chen thought for a moment and said, "I know about this, but even so, your investment is only 150 million US dollars, so you don't need such a large piece of land, right?"

Zheng Zhijie explained calmly: "It is indeed not necessary at present, but both my Changxing Group and Berkshire Hathaway of the United States are large companies with total assets of over 100 million US dollars, and this cooperation is also a strategic cooperation between the two large groups.

This first phase is just an attempt by both parties to gain trust. The US side does not really believe in Hong Kong's investment environment, but once it is confirmed that there is no problem, it will inevitably increase investment in the future, and it is possible to increase it tenfold or even dozens of times.

Therefore, we naturally need to prepare enough land for our factories so that they can be built nearby. Otherwise, if the factories are not together, they cannot achieve maximum efficiency, and the US side may have objections. "

"So that's how it is." Director Chen also understood this reason and asked, "Then we will give you a smaller piece of land first. When you build a new factory later, the Hong Kong government will give you other land. How about that?"

"Director Chen, we don't agree to this. If this is the case, you will ask for an exorbitant price in the future." Zheng Zhijie is also a smart man, so how could he not see the problem here? Director Chen smiled and said, "What if we give you the land and you don't invest in the future?"

"That's easy. We buy the land first. If there is no follow-up investment after three years, the Hong Kong government will buy back the land at the original price. How about that?" Zheng Zhijie replied.

In fact, even in extreme cases, if the United States stops investing, we will not lose money, and the Hong Kong government may not take it back, because no one except ourselves may want the land near our factory.

Director Chen thought for a moment and said, "Then let me discuss this internally. You know, I can't have the final say on this matter alone."

"Okay, please do it as soon as possible. The American side and my boss both attach great importance to this project. As you know, this project involves Mrs. Yang." Zheng Zhijie reminded.

For a project worth only 150 million US dollars, Yang Wendong's level would not care about it. At most, he would ask about it when looking at the information at the end of the month or year.
But the entire project involves Mrs. Yang's clothing chain store, and Mrs. Yang personally promoted and participated in it. The nature of the project is completely different. The subordinates value the project more than the boss. After all, the boss values many projects with lower risks. This is different.

Because they are optimistic about the future of the real estate market, they naturally want to hoard more land, so that even if the factory does not make money or makes little money, the land below can still make money.
After returning to the company, Zheng Zhijie immediately informed Yang Wendong and Su Yiyi of the matter.

Yang Wendong said: "The Hong Kong government shouldn't have too many problems. Even if it doesn't end up with 50 square feet, it will be about this order of magnitude. They still attach great importance to the investment of a large American capital. The current Hong Kong government is also hoping to attract foreign investment."

In the past, although Hong Kong had foreign investment, the amount was generally not large. After all, it is just a city. If it were not for the Commonwealth, almost no foreign investment would be interested. But later many companies gradually turned to Canada, because except for labor costs, everything else is more cost-effective than Hong Kong.

However, now that Yang Wendong has improved some of Hong Kong's industrial chains and injected a large amount of capital, in addition to the several foreign electrical appliance brands introduced by Yang Wendong, foreign capital from other industries has also entered Hong Kong, jointly guiding the optimization of Hong Kong's industrial chain;

The Hong Kong government has also benefited greatly from this process. It can be said that there is no normal place in the world that does not welcome non-polluting foreign investment.

Zheng Zhijie smiled and said, "Yes, there is no big industry in Hung Hom now, so it is just right for us to go there. I have also acquired a lot of properties in Hung Hom before. When the textile industry becomes big one day, it will also be reflected in the housing prices."

"Yes, it is an extra benefit." Yang Wendong looked at Su Yiyi and said, "But the core is to develop the textile industry, which is more important."

Even though the land may be more profitable, for Changxing Group or Yang Wendong himself, this industry is more important;

Not only can it create thousands or even tens of thousands of jobs in Hong Kong, it can also promote its overseas layout, complete retail control in the clothing sales industry, and may even recreate a Uniqlo or ZARA similar to its previous life.

Of course, after the mainland’s reform and opening up, these industries will also be the first to enter the country. Benefiting from the low labor costs in the country, they will definitely be able to occupy a large share of the international market, and then in turn help the relevant industries in the mainland to grow, forming a model of killing two birds with one stone.

Su Yiyi nodded and said, "I know. Now that I have my own textile supporting enterprise, I plan to carry out reforms in design so that our clothing can meet the combination of cost-effectiveness and fashion."

"Okay." Yang Wendong also said: "Old Zheng, cooperate well in terms of property, especially in Southeast Asia. Build flagship stores in each country, and then guide local capital to join. Only in this way can we achieve a breakthrough in volume as soon as possible."

In the clothing industry, it is impossible to maintain all the terminals by ourselves. If we do so, the management cost will be sky-high and problems will easily occur.

Joining a franchise is the right way. By joining a franchise, you can save money and expand quickly. Then a large amount of sales can be fed back to the factory. The brand only needs to focus on publicity, factory, technical quality, etc.

Unless there are special circumstances, you must know the future areas, such as major cities in the Mainland and Hong Kong, which you can operate yourself, but the core is not that these places are suitable, but that you use property profits to make up for the problems caused by your own operations.

Zheng Zhijie quickly agreed: "Okay, I will arrange to buy or rent properties in the core cities of Southeast Asia."

"Okay." Yang Wendong nodded.

He is not very interested in the textile and clothing industries, but the market is so big that there is no harm in getting involved, especially the future mainland market, which is still very large.

(End of this chapter)

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