Just because he can't use these small hardware and sundry items doesn't mean others can't use them.
He has a great partner behind him, Walmart Supermarket.
This is a big thing, and besides textiles, the supermarket owners also need these small, cheap and good quality commodities.
Yiwu Small Commodity Market, where so many small sundries and commodities flow to the world every year, supporting so many small and micro enterprises in China.
Since these factories in Yuezhou are having such a hard time, Chen Xia has a lot of room to maneuver.
Either all these factories can be acquired and then directly supplied to Walmart supermarkets. The advantage of this is that the profit will be higher, but the disadvantage is also obvious and it is difficult to manage.
These more than 20 factories are distributed throughout Yuezhou, and Chen Xia does not have so many management talents to help him manage these factories.
If the old management team is still in place after the acquisition, forget it. Why are these factories struggling? Isn't it because there are too many corrupt officials in the factories?
Otherwise, in the booming era of the 1980s, we could have learned from the people of Yiwu or Wenzhou, trading chicken feathers for sugar, and traveling around the country selling the small commodities we produced ourselves.
But how could the bosses in these state-owned factories do such a thing?
Anyway, the factory went bankrupt, and they didn't suffer any personal losses. Not only did they lose all their money, but they could also just walk away and move to another factory to continue being their factory director.
The second method is much simpler, just set up an import and export company.
With his connections in Yuezhou and Zhijiang, it would not be too difficult for him to obtain the export trade rights. He could then place orders with these factories and make a profit from the difference.
The benefits of doing this are obvious. Chen Xia doesn't have to spend too much time worrying about it. The production will be left to you. He only needs to place orders, inspect the goods, export, and collect payments.
Just like the rice wine factory,
Now, except for Xifeng Winery and Longshan Winery in Yuezhou area, almost all other rice wine factories in the city are supplying to the "Nguavine Pharmaceutical Company Dongjiang Medicinal Wine Factory".
In this way, you can also keep the "hostages" in your own hands, and you don't have to worry about production problems or others lining your pockets.
But there are also disadvantages to doing this.
Once the economic situation improves, or a factory encounters a good opportunity, it is entirely possible that it will be out of your control. After all, it is an independent enterprise, not your subsidiary.
In this way, the "hostage" ran away by himself.
Chen Xia sat in the middle of the conference room and thought a lot, which made the factory directors and managers sitting below feel unsure.
Now everyone in Yuezhou knows that Pumpkin Vine Pharmaceutical Company and Four Seasons Textile Company are both invested by Hong Kong, and the boss is the grandfather of the deputy director of the People's Hospital. He is a typical prince.
According to rumors among the people, these two companies are actually the assets given by the Hong Kong grandfather to his eldest grandson. When he is no longer the dean, he can still become the big boss.
So this gentleman is the real "head of the family" who has the final say, otherwise he would not have appeared at the meeting without telling anyone.
Just when everyone was feeling uneasy, Chen Xia suddenly asked a question.
"Several factory directors, are you from the textbook factory, the ceramics factory, or something? Oh, and why is Manager Shao from the bicycle factory here too? You guys should be doing pretty well."
China is the kingdom of bicycles. Bicycles were just beginning to become popular in the 1980s. Before that, everyone was poor and not everyone could afford one. But in 1988, everyone had money and every household wanted to buy one.
How could Yuezhou Bicycle Factory, in such a bull market and environment, actually be losing money and unable to make ends meet? This is unbelievable.
Director Shao blushed and said with a smile:
"President Chen, you don't know this. Our bicycle factory used to be among the top ten in Yuezhou in terms of profitability. So many people came through the back door to buy bicycles."
Chen Xia nodded. He clearly remembered that when he was in Lin'an and Qian Jin and Fang Zhe, the children of the Lin Steel Factory, were exchanging rice for tickets, bicycle tickets were very precious.
Manager Shao continued:
"It's been a year of reform and opening up, and there are more and more private enterprises. Our Yuezhou Bicycle Factory sells a bicycle for 240 yuan, while other private factories only charge 180 or 170 yuan. How can we compete with them?"
After hearing Manager Shao's complaints, other factory managers in the meeting room all complained about those damn private factories and township enterprises. In order to grab business, they kept squeezing profits and lowering wholesale prices.
The pricing power of state-owned factories is fixed and rigid. The price is what it is. Even the factory director cannot lower the price easily, otherwise it would be a mistake and the state-owned assets would be lost.
Besides, the problem with state-owned factories is not just that their management is like pigs. There are also problems such as overstaffing, too many idlers, backward technology and a lack of ambition.
Well, if your state-owned factory doesn't lower its prices, then the private factories will. Forget bicycles, even if they sell your enamel washbasin for 2 yuan, they can still make 50 cents, making a small profit but quick turnover.
The factory price of a washbasin from your Yuezhou Enamel Factory is 2.3 yuan. Even if you don't make a penny, the wholesale price is still higher than others. Why would ordinary people buy your products?
Maybe your product quality is relatively good and the materials are relatively solid, but the people don’t care about you because they just want to save money.
To make matters worse, by the late 1980s, the once-glorious monopoly of supply and marketing cooperatives and department stores was gone.
Small private shops have sprung up like mushrooms after a rain.
Even in rural areas, there are many merchants who go from house to house.
Yuezhou is a famous water town in the south of the Yangtze River. Small merchants would buy a boat, put all their small commodities on the boat, row it, and go to the vast rural areas to sell the goods, and live and eat on the boat.
Although it is hard work, this model of door-to-door delivery and high quality at low prices is very popular and loved by the people, and the profits are also quite considerable.
Now, not to mention the state-owned factories, even the supply and marketing cooperatives and department stores could not stop going bankrupt.
By the 1990s, private enterprises accounted for more than 95% of the total number of enterprises in Yuezhou City.
The remaining state-owned enterprises are those related to people's livelihood, such as power companies, water supply companies, gas companies, cultural and tourism companies, etc.
Private enterprises generally cannot enter these industries.
If nothing unexpected happens, all the factories here will go bankrupt in the 1980s or be converted into private enterprises one after another.
Listening to the complaints of these factory managers, Chen Xia finally understood why these companies were having such a hard time.
And from another perspective, we also learned that even if he purchased orders from these companies, they would be doomed.
Since Chen Xia wants to take action against these factories and has some "bad intentions", he should not give them orders to keep them alive.
The more "yellow" they are, the easier it is to acquire them, right?
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