Huang Youwei arrived with a group of more than ten people. They inspected the warehouse and then took away more than ten products for random inspection. Outside the warehouse, Huang Youwei stood there smoking, and the bright lights outside the factory illuminated the area as if it were daytime.
“My products are absolutely of good quality. Jiafeng Electronics offers low prices and guarantees quality.” Lu Feng stood there watching them load the dozen or so sealed products onto the truck and said, “This is the most basic conscience of a human being.”
"I never expected that you would become the most conscientious person." Huang Youwei looked at Lu Feng and laughed, feeling that the whole thing was somewhat ironic and absurd.
"I have always been a very conscientious person. When it comes to making products and facing consumers, I am the most conscientious entrepreneur. When making food, I never shortchange customers or sell inferior goods. When making electronics, I put quality first and was the first company to propose the 'three guarantees' policy," Lu Feng said with a serious face.
Huang Youwei thought about it and realized that it was true. When dealing with competitors, Lu Feng was capable of anything, but when dealing with consumers, he had never done anything out of line regarding products.
The inspection was quick. After loading the items onto the vehicle, the product serial numbers were registered, and Lu Feng was asked to sign them.
“We will test the product, and once it passes the test, we will send it back!” a deputy director said.
Lu Feng signed the document, smiled, and said to Huang Youwei, "There's no need to be so polite. It's just a few TVs, radios, and tape players. There's no need to return them."
"This is the rule!" Huang Youwei said to everyone, "Hurry up with the testing and get the results as soon as possible."
After everyone left, Huang Youwei lit a cigarette and looked at Lu Feng with a complicated expression. After a while, he reached out and patted Lu Feng on the shoulder, saying, "Work hard and don't be too reckless all the time. You've already achieved the result you wanted. For the next period of time, the VCD market will continue in its previous state."
"Thank you for the encouragement. I will make the most of this time," Lu Feng replied.
"Then I'll head back first. By the way, since funds aren't so tight, let's pay back the two hundred million from the bank later. Too much debt is not good for the company's development," Huang Youwei said, turning around.
"Here's the thing, those two hundred million were interest-free before, right? We can change it to interest-bearing, and I'll just pay the interest every month. If we can borrow more, I'd like to borrow a little more," Lu Feng proposed his solution.
“This year’s investment attraction task is very heavy, and the local banks are under great pressure. If you have the money, just pay it back.” Huang Youwei frowned slightly.
"Mr. Huang, here's the thing: debt-driven development is the future trend. Not having money isn't scary. I have a suggestion for you: mortgage your local bank shares to the four major state-owned banks. You can get a lot of money that way. If all else fails, you can pawn next year's GDP." Lu Feng said very seriously.
"Are you kidding me?" Huang Youwei muttered, got into the car, and told the driver to leave.
Zhang Fengxia stood to the side, glanced at Lu Feng, and whispered, "You really dare to give advice!"
The leaders nowadays aren't that bold. There will be many more such cases in the future. They'll sell anything as long as they're paid. Right now, no one dares to do it. But in a few years, some cities will do it and taste the benefits, and other cities will follow suit.
The simplest reason is that local banks have high debt levels. The four major state-owned banks impose very strict restrictions on local funds. Local banks are established with the local economy as their backing, so that local leaders can easily mobilize funds.
People like Huang Youwei can manipulate local banks at will. They can slam a table and determine the amount of debt, putting immense pressure on the banks. If they run out of money, they can sell land, incur debt, use municipal credit to borrow from private lenders, plan industrial parks, attract businesses to join, and then rip them off.
The various methods were dazzling. More than a decade later, local bank debts collapsed, including bad debts and dead debts, totaling tens of trillions of yuan nationwide, almost equaling the country's annual GDP at the time.
Such massive bad debt is the result of local governments' short-sighted pursuit of quick profits, their rampant exploitation of banks, their pursuit of premature development, or their reckless investments that have led to the construction of a bunch of useless industrial parks and scenic spots. All sorts of bizarre buildings are products of these practices.
The country is also afraid of such a large debt. Generally speaking, when a bank's non-performing loan ratio reaches 5%, it is already close to the brink of bankruptcy, and when it exceeds 10%, it is already insolvent.
At that time, the non-performing loan ratio of local banks across the country exceeded 40%, which was a remarkable phenomenon in the global banking industry!
The government dared not act, so it could only carry out non-performing asset stripping, setting up a special company to take over these bad debts, which allowed the banks to start operating again.
This is also the origin of the story many older people tell about borrowing money from banks in their younger days without having to repay it.
"I was just offering a suggestion, but they really dared to do it!" Lu Feng glanced at the time; it was a little past nine at night. After such a brilliant victory, all that was left was to enjoy the fruits of their triumph.
Piracy will not be eradicated; it will only make a comeback. However, this wave has defeated the first group of people who had ideas, money, and put them into practice.
Lu Feng estimates that if the market heats up again, even more people will rush in, and this interval may be two to three months.
During this period, Jinbao's market share will reach over 90%, which is sufficient, and this period is the best time to establish a brand image.
The exposure of pirated products and their poor quality is a great form of publicity. It will spread through word of mouth for a long time. Only by establishing a strong brand can a company maintain its market share in the future.
"Go back and get some rest. We have a meeting tomorrow," Lu Feng said, then walked towards his office.
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