Add Bookmark | Recommend this book | Back to the book page | My bookshelf | Mobile Reading

Free Web Novel,Novel online - All in oicq.net -> Historic -> Textile Overlord of the Republic of China

Text Chapter 50 OEM Fees

Previous page        Return to Catalog        Next page

    Zhou Yifei has been a little troubled recently.  United Cloth Company has only been established for a few months and has already captured a large market share through a series of radical offensives.  If Yang's Cloth Company started the trend of hand-made machines and home-based OEM, then United Cloth Company was the biggest promoter of this trend throughout southern Jiangsu.  This trend was so violent and rapid that many large businesses in southern Jiangsu had to deal with it seriously.  Some of them regarded it as a scourge, while more saw the huge opportunity of this trend.  Many wealthy merchants in southern Jiangsu have sensed business opportunities. They are either sole proprietors, partnerships, or joint-stock companies, and have joined the ranks of promoting mobile phones and home OEMs.  There are many wealthy and powerful businessmen in southern Jiangsu. As soon as they joined the competition, Zhou Yifei's United Cloth Industry immediately felt the pressure.  Although United Cloth Industry also concentrated many powerful businessmen in Wujin County, looking at the entire southern Jiangsu, their strength seemed a bit weak.  Facing the recent competitive situation, Zhou Yifei convened several cloth shop bosses to discuss countermeasures.  Boss Fu from Fuchang Cloth Shop asked: "Nephew Yifei, I heard that the company has encountered difficulties in its expansion during this period?" He is feeling refreshed now, without the panic he had a few months ago.  After the supply of goods increased significantly, he has recently been busy expanding the distribution channels of his own cloth line. He doesn't pay much attention to United Cloth Company, but he still understands the basic situation.  "Yes. The local wealthy businessmen in southern Jiangsu have reacted. Most of them have strong financial strength and are making very rapid progress. At present, we have directly competed with them as OEM households in many places." This is what we have seen before.  There is no situation.  In the past, the market space was large enough that even if new fabric companies joined, they would each develop their own OEM households.  Now that there is direct face-to-face competition, this is likely to be a signal that the local market in southern Jiangsu may be approaching saturation.  Several bosses here seem to be still immersed in the success of the past few months, and are somewhat indifferent to the current severe situation.  Zhou Yifei was a little dissatisfied. He added: "Many local fabric companies have begun to increase the OEM fees for weavers. Under the temptation of high OEM fees, our OEM households have even lost their jobs." "  Huh? It¡¯s so serious!¡± Many cloth shop owners exclaimed, seeming to realize the seriousness.  But then, many people began to feel discouraged again.  "There is nothing we can do about it. We are all businessmen from small places and cannot compare with those big businessmen. Especially in places like Suzhou, Wuxi, and Nanjing, there are many people with a net worth of millions. As soon as they join, we  No one can beat us.¡± Boss Hu from Yilong Clothing Company also said: ¡°Yes, our United Cloth Industry Company is in a pretty good situation now, thanks to the good management of nephew Yifei.¡± Due to the sufficient supply of goods,  Elan Clothing Store's current distribution channel has expanded several times, and Boss Hu is very satisfied.  They all have the mentality of being content with being rich, and Zhou Yifei really looks down upon these people.  He threatened: "Although we still maintain our advantage, if we don't have a response plan, sooner or later we will be cannibalized by others step by step. You also know that the big businessmen in Suzhou and Wuxi have amazing financial resources. When the time comes, we will not be able to say anything about it.  The business has to be returned to a small place like Wujin. "This is a sore point for many of the bosses here. They can't bear to return the business after they have finally made it big.  Someone suggested: "How about we also raise the foundry fee?" Yang Shaowen originally ordered the foundry fee to be 6 cents per piece of new homespun cloth. United Cloth Industry also followed the same example and used this foundry fee to develop OEM.  household.  The gross profit left by this OEM fee to the cloth industry company is about 8 cents to 1 jiao. The cloth industry company still has a lot of profit margin.  This is also the reason why other companies compete for OEM customers simply by raising OEM fees.  With no other options available, United Cloth Industry also took advantage of the trend to increase its foundry fees. This seemed to be a natural response strategy.  But Zhou Yifei didn't dare to act like this rashly.  It is easy to increase the foundry fee, but it is not so easy to lower it in the future.  He understood that the reason why Yang Shaowen set the foundry fee at a low level, in addition to the pursuit of profits, was to reserve a certain amount of room for future declines in cloth prices.  Farmers like stability. If the agency fee changes frequently, it will make them distrust the company.  "Bosses, how is our current cloth price?" "It's not bad! The retail price of our new homespun cloth is stable at 5 cents and 6 cents, but it has a great impact on the old homespun cloth, which has dropped to 3 cents and 5 cents.  . Our new homespun fabrics are taking up the space of the old ones.¡± The words of the cloth shop bosses did not make Zhou Yifei feel at ease, but he was still weighing it carefully.    Boss Hu said: "Then adjust it! Although the quantity of new homespun cloth is increasing rapidly, our cloth is good and the price will not fall so easily." "Let me think about it again!" Zhou Yifei has his own  Unspeakably hidden.  In addition to considering the future drop in cloth prices, United Cloth Company itself does not have much room for price adjustment.  Only he, who has full control of the company, understands this, while other shareholders do not have this awareness yet.  The joint company lost a lot of profits because it relied on the power of many rural gauze shops in the development process.  And because of large-scale borrowing, financial expenses are also higher.  Compared with Yang's Cloth Company, its gross profit margin itself is much lower.  In addition, the problem of cloth theft is becoming more and more serious, which has swallowed up a large amount of profits of United Cloth Industry.  He must admit that the management of home-made factories has been neglected in the past, especially the problem of cloth being stolen. He originally thought it was just ringworm and scabies, but he did not expect that it would develop into a serious problem.  He has taken some simple measures, but they have only slightly curbed the theft, and there is still a long way to go before it can be completely solved.  Zhou Yifei has also been hesitating these days, whether the company should first fight off aggressive competitors, or stop and rectify the internal situation.  Zhou Hengyuan asked: "What, is it difficult to adjust the foundry fee? It shouldn't be, our gross profit margin is quite large!" "Oh, no! Since everyone is of this opinion, let's adjust the foundry fee?" Company  Zhou Yifei had not informed shareholders of the seriousness of the internal management problems before and was unwilling to say more.  He doesn't want shareholders to know because his negligence has left hidden dangers in the company, which damages his prestige.  He decided to repel the opponent's attack first and then go back to rectify the internal problems.  "By the way, do you know what Yang Shaowen is doing now?" Zhou Yifei now admires Yang Shaowen a little.  He had previously looked down upon the negative attitude of Yang's Cloth Company, but it turned out that he was still very discerning and saw the hidden dangers of the family OEM system in management.  Boss Fu of Fuchang Cloth Shop replied: "Yang's Cloth Shop is still the same and has not seen any expansion. After all, it still has a shallow foundation. After the three axes, it will be unable to continue. As for Yang Shaowen, I heard that he works with craftsmen all day long.  They are working together to develop a new machine. What is the name of that machine? Well, it seems to be a Jenny machine. I heard that it is derived from British technology. I don¡¯t know what the Yang¡¯s Cloth Industry will do." He said, eyes.  Looking at Zhou Yifei, he felt a little guilty in his heart.  Isn't the person in front of me a top student studying in England? Although he has great business skills, he doesn't seem to have learned any skills. In this regard, he is not as good as Yang Shaowen, a country bumpkin.  Several other bosses were also very nervous when they heard the news, fearing that Yang's Cloth Industry was holding back some big moves.  "Jenny machine?" Zhou Yifei burst into laughter.  "The yarn spun by the Jenny machine is slender and easy to break, so it is not suitable for homespun yarn. When he went to develop the Jenny machine, he went in the wrong direction!" For some reason, Zhou Yifei felt a little relaxed and felt that he had still overestimated his value.  Yang Shaowen.  "Differences in product demand, raw materials, and processes are all things that need to be considered when developing machines. Yang Shaowen is still a bit of a layman after all. He only knows the facts but doesn't know why. Not every time I go shopping for English antique technology, I  It can be successful." After hearing his explanation, several bosses snickered inwardly and despised Yang Shaowen, a bumpkin.
Didn't finish reading? Add this book to your favoritesI'm a member and bookmarked this chapterCopy the address of this book and recommend it to your friends for pointsChapter error? Click here to report