As soon as Lu Feng entered the banquet hall after going upstairs, General Manager Liu raised his voice and said to everyone, "Everyone, please be quiet. General Manager Lu from Jiafeng Electronics has arrived. Please welcome General Manager Lu."
Applause erupted as Mr. Hong, beaming with smiles, stepped out from the crowd and opened his arms to give a hug.
"Mr. Lu, it's been so long! I've really missed you!"
When Lu Feng saw him coming, he didn't recognize him for a moment. He was stunned for a moment before he remembered. Even now, Lu Feng still remembered that when Jiafeng Electronics was held back by copper raw materials, General Manager Hong still raised prices and took a cut.
"I didn't expect Mr. Hong to miss me so much. You've really worked hard. Haven't you been connecting me with any copper raw material suppliers lately?" Lu Feng asked.
"Huh?" President Hong was taken aback, not expecting Lu Feng to be so petty. It had been so long, yet he still remembered. He laughed and said, "President Lu, are you comfortable living in the villa? I used the best materials for you back then, after all, it was for you to live in."
“Of course it’s going to work. If the villa renovation doesn’t go well, then we’re out of luck, right?” Lu Feng said with a smile. “Alright, let’s not block the door. Let’s go inside and talk.”
Lu Feng strode inside, and people kept greeting him from both sides. The scene was like a fan meeting. Today's banquet was mainly attended by medium-sized enterprises. These people were worth about 30 to 40 million yuan. Moreover, the price of VCD raw materials had been driven up by piracy.
Some of them have very difficult businesses. The more gatherings and banquets they attend, the harder it is to do business. Everyone hopes to have a meal, get to know more CEOs, and open up sales channels for their companies.
"Mr. Lu, hello, I am..."
Lu Feng walked along, collecting business cards from various raw material suppliers, many of whom overlapped with each other. Reaching the front, General Manager Liu said, "How about General Manager Lu says a few words to everyone?"
"Great!" The crowd cheered.
Mr. Hong held a glass of wine and looked at Lu Feng standing at the front. A few years ago, he would never have dreamed that the young man who ran to his villa area to buy a house would grow up to be what he is today.
Perhaps this is what makes Shenzhen a miracle.
Lu Feng took the microphone, thought for a moment, and said, "I just received a lot of business cards and heard from you that you hope to become a supplier for Jiafeng Electronics. It's clear that the secondary market is very difficult right now, and the price of raw materials has also plummeted recently."
"Why has the market become like this? I believe everyone knows the answer. Simply put, it's because of overproduction and overly high expectations for the market. The short-lived hype has clouded many people's judgment. The price of circuit boards has plummeted by 40%, tin by 25%, and copper alloys have also fallen sharply."
"What are the prospects for the raw materials market in the future, or rather, for products like the preliminary processing of electronic products? I would like to say that the market is generally on the rise. Our front-end market is still expanding, and the sales of electronic products are skyrocketing every year. But why do you feel that business is not easy?"
"Please take a look at your peers. What were the TV sales figures three years ago? How many raw material suppliers were there? The demand in the end market surged by 100%, and the secondary market surged by 200%. Isn't that an oversupply? And then there are those people who rushed in recently, selling everything they owned."
"The market is very good and has a promising future. Whether you can hold on or not depends on you. Apart from some raw material processors, those companies that provide resin and raw copper, which don't involve much technology, follow the same principle: if you can talk to more customers and you can withstand the pressure, then you will win in the future."
"If it's motherboard manufacturing, then it depends on the technology. The future market will definitely be a technology-driven market. If you have the technology and control the most important link in the supply chain, you're the boss. If we can't do it, we'll have to come to you. You'll have the leverage to set prices."
"The same applies to Jiafeng Electronics. We have always had a certain proportion of suppliers. We have a 20% self-supply system, and this proportion should increase in the future. The remaining 80% are from long-term cooperation contracts signed with leading companies in various industries."
"Many CEOs just told me that they wanted our company to join the ranks of suppliers so that we could supply goods at a very low price. What I want to tell you now is that no, you shouldn't be coming to me. I have a lot of decision-making power. You should go and talk to the CEOs of Jiafeng Electronics' subsidiaries."
"I'll say it again: whether you rushed in because of the market boom a while ago, or you genuinely want to get into this industry, like resin, copper, tin, and plastics, you need to have a lot of resilience. If your cash flow isn't big enough and you don't have stable sales channels, you'll collapse sooner or later. Because these don't require technology, they only require connections. You need to have connections with the original production location, and you can just ship them over, do some simple processing, and sell them."
"This industry is destined to have low barriers to entry and rely heavily on personal relationships. Be prepared. If you are involved in PCB motherboards, high-tech copper alloys, wires, plugs, or other technically demanding products, you must pay attention to technological upgrades. The easiest way to fail in this field is to lack technical expertise. Personal relationships are not that important. As long as you are capable, you can hold companies like ours hostage. Thank you!"
Applause broke out, but the smiles on everyone's faces had faded; they were still quite concerned about Lu Feng's predictions for the future.
Many of the people here today rushed in recently, thinking that the VCD craze would once again ignite a hot market for raw materials.
This chapter is not finished, please click the next page to continue reading!
Continue read on readnovelmtl.com
