Chapter 426 Hmm, a smart person: I'm actually an honest person.
The next morning, after having breakfast at their hotel, Wang Xiao and his group set off for the trade city.
This place was originally a shopping mall, covering an area of approximately 90,000 square meters and a building area of over 30,000 square meters.
When Manager Zhang was sent to South Africa by Ruan Xiaomei to develop the market, he originally planned to find land himself to build a small commodity market.
But after touring around South Africa, he quickly discovered that building houses there was much more difficult than taking over a shopping mall directly.
On the one hand, the procedures are too troublesome, and on the other hand, there is South Africa's peculiar industrial structure.
Can you imagine? This country, whose metropolis is even more European and American than Europe and America, has Mercedes-Benz and BMW production lines, luxury cars everywhere on the streets, and can produce its own fighter jets and missiles, possessing a complete military-industrial complex; yet at the same time, it has to import even its nails.
When Manager Zhang learned about this, he was completely stunned and couldn't believe his ears.
Back in China, we could have produced our own nails and matches in the 1950s.
In such a developed and beautiful country like South Africa, where many households have computers, they still have to import nails?
Even now, when this matter is mentioned, Manager Zhang still can't help but sigh: "I think South Africa's industry is not as good as Romania's. It's like a castle in the air, with no foundation."
Wang Xiao laughed; this analogy was quite interesting.
“It really couldn’t have developed,” she sighed. “These basic industries have low barriers to entry; family workshops can produce them. If the white government of South Africa hadn’t set up barriers and allowed it to really take off, wouldn’t the black people have been able to accumulate wealth through this kind of manufacturing?”
What is hardest for people at the bottom of society to accumulate is the very little initial capital that outsiders perceive.
Colonizers would only ensure that the colonists didn't starve, resolutely denying them any opportunity to accumulate money to acquire means of production and thus change their fate.
Manager Zhang paused for a moment, then subconsciously scratched his head. He had never really thought of considering the problem from this perspective.
However, when the boss mentioned it, he felt it made a lot of sense.
South Africa has minerals and energy resources, so how could it not even be able to develop basic industries?
If you say that Black people don't have skills, then don't the entry-level workers in white factories have mastered industrial technology? Aren't there only a few types of workers, such as fitters, lathe operators, milling machine operators, planer operators, grinders, foundry workers, forging workers, heat treatment workers, and so on?
Manager Zhang exclaimed from the bottom of his heart, "That white government is really despicable."
That's true. If it weren't for its extreme immorality, the international community wouldn't have imposed direct sanctions on it just because of its racial segregation.
It's important to understand that mainstream international societies, like Britain and the United States, have their own history of immoral acts. In the 1930s, three-year-old children in Britain were forced to work as chimney sweeps.
Manager Zhang's personality is such that he's easily swayed by a ray of sunshine. As long as it's not a matter of his own life or death, he can always think optimistically: "Things will get better in the future. There are factories here now that produce small hardware, which came from China last year."
As he walked, he explained to the shop owner, "There were originally 68 business units here, but I reorganized the division. The shops in the small commodities market don't need to be that big."
In the container market, a single container is essentially a shop space plus a warehouse, leaving virtually no empty space.
Who will rent all these partitioned-off shops to?
Manager Zhang didn't return to China or go to Romania to attract investment; instead, he used local resources—or rather, he settled people locally.
There are quite a few Chinese people in South Africa, and in the 1970s and 80s, a large number of Hong Kong and Taiwanese businessmen came to invest. By the early 1990s, bolder mainland Chinese businessmen also came to seek their fortune.
However, compared to the wealthy Hong Kong and Taiwanese businessmen, these middlemen and middlemen generally operate as street vendors.
Find an open space on the street, set up your stall, and business begins.
They sell everything from nail polish and scarves to perfumes and lighters—you name it, they sell it.
They also successfully benefited from the social and economic transition benefits of South Africa.
Unfortunately, this period of prosperity was short-lived. As security in South Africa continued to deteriorate, these street vendors became regular targets for robbery.
Even the most resilient merchant would find it unbearable to be robbed repeatedly.
Manager Zhang seized this opportunity and, through his connections with the local Chinese Chamber of Commerce, promoted the business to them, enabling them to settle down and operate their businesses with a fixed indoor stall.
Putting everything else aside, at least there are burly security guards standing at the entrance of the commercial city, each with a walkie-talkie.
If you really run into a robber, it's like trapping a dog inside a cage.
Using this method, nearly 300 stalls were rented out completely.
Manager Zhang was quite proud: "Finding a stall with them is the most suitable option. They have done business in South Africa, know how to deal with locals, and know what to sell."
Don't assume that just because Black people are easy to talk to and not picky about goods, everything they sell will be easy to sell.
Some businessmen from China are completely brainless. When they heard that South Africa was short of bras, they immediately shipped a container over, without considering that the body size of black South Africans is several sizes different from that of East Asians.
Without a doubt, the goods will die upon arrival at the destination.
An entire container of bras, just wasted like that.
Even now, when Manager Zhang talks about it, he can't help but gasp and feel heartbroken—how could someone be so stupid?
Wang Xiao felt no emotion upon hearing this, nor did he feel any sympathy whatsoever.
How arrogant and self-important must one be to treat your customers so casually, as if you are doing them charity by selling them something?
If it weren't for this inherent disdain, how could you so easily ship goods over South Africans based solely on their physical size, without any regard for reality?
If you don't take your customers seriously and try to teach them how to behave, the market will naturally teach you a lesson.
However, Wang Xiao still mentioned, adhering to the principle of avoiding waste, "Next time something like this happens, see if we can donate it directly to the community theater as padding for clothes. If successful, at least we can avoid some taxes and reduce losses."
In fact, she has 100 DIY ideas on how to deal with bras that are no longer worn, such as removing the foam and making knee pads.
But this is more suitable for me to modify myself, and I can treat it as a craft assignment.
If she were to deal with a container full of unused bras, she might just turn them into eye masks used by pirates in movies.
Anyway, South Africa has a well-developed information network, and Hollywood movies are quite popular there, with plenty of pirate elements in them. For example, the one-eyed Kenny character in last year's "Waterworld" is a typical punk-style pirate.
Moreover, as a country with the Cape of Good Hope Strait and numerous ports, pirates are not unfamiliar to South Africans and are easily accepted.
Manager Zhang was dumbfounded; it was the first time he had ever heard of a bra being converted into an eye mask.
But thinking about it carefully, it doesn't seem that strange.
In Hong Kong movies, there have been scenes where bras were directly fastened to people's faces, covering their eyes.
That means it can indeed be turned into an eye mask.
He gave his boss two thumbs up: "Boss, you're amazing. There's nothing you can't sell."
Wang Xiao smiled and shook his head: "Even if it can be turned into an eye mask and sell well, it doesn't mean he can make it. To make it, you need to find a factory and pay the labor costs. He's completely clueless in South Africa, where would he find a factory? So we still need to do market research first and ship the goods accurately."
While they were talking, they had already browsed the entire lingerie section. Further ahead was the cosmetics section, with perfumes, lipsticks, mascaras, and colorful nail polishes. It was like a rainbow after a rainbow, dazzling the eyes.
Manager Zhang explained, "South Africa doesn't actually lack goods; large department stores sell everything. However, imported goods from Europe and America are too expensive. People come here to buy things mainly because they are cheap."
That's the truth.
If the prices are too high, Chinese goods will have no competitiveness at all here.
Wang Xiao listened and nodded as he followed the people into the small hardware store, where all kinds of hardware products were available, truly a dazzling array.
Manager Zhang lamented, "When I was assembling cabinets here, it took me an entire day to find just one type of screw. At that moment, I realized that a store absolutely needs to have small hardware stores, otherwise how would we survive?"
It's not even 10 a.m. yet, so there shouldn't be many customers in the store. Most people shop in the afternoon or evening.
However, every stall in the small hardware market was packed with people.
Moreover, Wang Xiao discovered something quite interesting: these customers were carrying large and small bags, and almost no one was buying just a few nails or screws.
This is clearly wholesale.
Moreover, those engaged in wholesale include not only Black people, but also Asians with yellow skin.
Wang Xiao laughed: "Are you treating this like a container market?"
Manager Zhang slapped his thigh and began to boast with a smug look on his face: "I really did do that."
When he planned to take over the mall renovation, he wanted to secure preferential policies from the South African government, so he went all out and took the local officials in charge of investment promotion directly to Bucharest, Romania.
“I pointed to the vendors coming and going in the container market and told him that if Cape Town had such a market, it would become a center. Not only would people from all over South Africa buy goods to sell back in their hometowns, but people from neighboring countries would also come to buy goods. And the manufacturing industry would be boosted as a result.”
Manager Zhang spoke with great enthusiasm about his achievements, saying, "Boss, South Africa is a really great country. It has good infrastructure, is a member of the WTO, and it has also formed a customs union with 10 neighboring countries. Goods shipped from China only need to pay customs duties once they arrive in South Africa, and then they don't need to pay taxes again when they reach the other countries."
He became more and more excited as he spoke, "And another good thing about South Africa is that its seasons are exactly the opposite of ours, which is perfect for clearing out inventory. Things that can't be sold in winter are shipped over by sea, and when they arrive here it's winter, so we can sell them right away."
He can say that because local Black people are not so sensitive to fashion trends. Even clearance items will sell quickly if they are brightly colored and appeal to their aesthetic.
He gestured around: "It cost $12 million to buy this shopping mall, $4 million to renovate it, $3 million to build the warehouse, and the rest were all sorts of miscellaneous expenses such as paperwork, travel and accommodation costs, and public relations expenses. In total, it cost $20 million."
In a sense, this investment has already been profitable.
If it weren't for 1994, when a large number of wealthy white businessmen were eager to dispose of their assets and emigrate from South Africa,
In such a prime location in Cape Town, a large shopping mall like this simply couldn't be acquired for $12 million.
Manager Zhang was still actively urging, "Boss, the conditions here are good, everything is convenient. Many white bosses want to leave again. The factory buildings and equipment are all ready-made, you can start operating right away."
South Africa is indeed incredibly beautiful, with a pleasant climate and convenient access to food, clothing, and other necessities. He's so happy in South Africa that he's completely absorbed in making it a success, just like his former boss, Ruan Xiaomei, in Romania.
However, if you really want to do well in the wholesale and retail industry, you must adopt the front store and back factory model. Only in this way can you have the confidence to increase sales volume.
Wang Xiao smiled and said, "Business is so good here!"
Manager Zhang's suspicions grew, and he felt a sudden jolt in his chest.
If business is to be successful, then the accounts he submits to the boss must also look good.
This means he has to keep taking money out of his own pocket.
Manager Zhang's heart is truly broken.
But he had already said it, and now he couldn't swallow it back in front of his boss.
He could only awkwardly emphasize, "Although it costs a lot of money at the beginning, the development prospects are good. We have everything we need here, and the workers are hardworking."
No sooner had he finished speaking than a young Black man came up to him and started talking in English.
South Africa has 11 official languages, and Wang Xiao couldn't understand what he was saying at all.
Fortunately, Manager Zhang was used to dealing with them, and by a combination of guesswork and body language, he could roughly understand what they meant.
His face immediately darkened, and he strode to the counter next to him, demanding of the stall owner with a stern expression, "What's going on? We agreed that the goods would be picked up today, and the customer has already paid the deposit. Where are your goods?"
The stall owner, a man of mixed Chinese and Indian descent, immediately looked downcast, both aggrieved and dissatisfied: "And you still dare to talk? Your Han Chinese factories aren't delivering goods, I'm so anxious!"
What's going on here?
Manager Zhang took out his phone and started making a call. As soon as the call connected, he couldn't wait to ask, "What's going on? Lao Zheng, why haven't your factory's goods arrived yet? Are you trying to ruin my reputation by doing this?"
Old Zheng over there also came to South Africa last year to set up a factory. Because he was from the same hometown as Manager Zhang, he was able to get a stall here, which meant he had a channel for external sales.
He was also full of grievances when he received the call: "I'm at my wit's end. The factory workers are demanding a pay raise again. We just got one last week, and they're still not done with it; they've started a strike again."
He probably couldn't find anyone to complain to, so he started yelling at Manager Zhang, "I just don't understand these black guys. Don't they have any self-awareness? Is this America? Is this Europe? Is this Africa? They're always on strike. What a load of crap! They don't even look at how many people outside can't find jobs! When we were young, we were so happy to be able to get a job in a factory."
Manager Zhang had no patience for his endless complaints and issued an ultimatum: "I don't care what you do, you can kneel down and beg, you can hold a knife to their throats and force them to come to work. Whatever you do, you have to hand over the goods to me today! Otherwise, you'll pay me back!"
After hanging up the phone, he smiled apologetically at the young black man, "I'm really sorry, the factory has a lot of orders and we're too busy to handle them all. We'll be working overtime to make it for you today. It will take up a whole day of your time, but don't worry, we'll cover your food and lodging. We'll make sure you can pick up the goods tomorrow."
Black people are indeed easy to talk to. After receiving Manager Zhang's assurance that he could get the goods, he stopped complaining about being delayed.
At Manager Zhang's urging, I went to the cosmetics section to look at nail polish, because Manager Zhang told me that it would sell well and I could take some home to try. If it sold well, I could order more next time, but I shouldn't rush to order more, lest it sell poorly and become unsellable.
A black man, as wide as three times the width of Manager Zhang, walked over, gave him a thumbs up, and praised him in fluent English: "Zhang, you are an honest and considerate businessman."
Manager Zhang quickly introduced Wang Xiao: "This is Deputy Mayor Delamini. He was in charge of attracting investment back then. He went to university and is an educated person."
This is not a simple matter within the Black community in South Africa.
When facing the Black deputy mayor, Manager Zhang began to boast again: "This is our boss, a member of the CPPCC in Jiangdong Province of our China."
Unfortunately, his English wasn't good enough to explain what a CPPCC member's position was, so he changed the subject to a more acceptable explanation for South Africans: "It's equivalent to a state legislator. Jiangdong Province has a large population, more than twice the population of South Africa."
Fearing that this explanation wouldn't be impactful enough, he added in a seemingly casual yet rather deliberate tone, "We have another boss, but he's currently the Deputy Prime Minister in Russia, so he couldn't come this time. Only a diplomat from the Russian Embassy is accompanying our boss. Oh, by the way, she's also an advisor to the Russian President."
Wang Xiao almost burst out laughing when she heard that.
This old Zhang is quite a talent.
One moment he was avoiding the Russian embassy staff like the plague, fearing he'd be subjected to the KGB's ten most brutal tortures; the next he was using them as a symbol of his status.
Wang Xiao took the initiative to extend his hand and shake hands with Deputy Mayor Delamini.
The latter responded enthusiastically, actively inviting her to invest in South Africa, with Cape Town being an excellent choice. Although it is not South Africa's economic center, its transportation and other resources are top-notch.
Manager Zhang seized the opportunity to complain: "Mr. Deputy Mayor, you're right. The workers here are really going on strike. They threaten to strike at the drop of a hat, which is seriously disrupting the supply of goods. We can't even continue doing business."
His intention in saying this was to hope that Deputy Mayor Delamini could make some promises or guarantees to the boss, at least to put the boss at ease.
Anyway, the fact that the workers here love to strike has already been exposed, so he can't hide it from the boss even if he wants to.
Unexpectedly, Deputy Mayor Delamini solemnly defended his compatriots: "That's because the wages you pay are too low. I believe that as long as you pay wages according to government regulations, the union will definitely not organize a strike."
Manager Zhang was displeased with this, and in his emotional outburst, he disregarded everything else: "Sir, we cannot accept what you're saying. The reasons workers give for strikes these days are truly bizarre and absurd—milk prices have gone up, having a baby costs money, wanting to buy a house, not having enough money—so they demand higher wages. Is that realistic? The cost comes from the people, sir. If wages keep rising like this, the factory price of goods will definitely rise. The cost of living for other ordinary people will definitely increase, and they'll be even less able to afford to live!"
He further emphasized, "And if this continues, the factory owners definitely won't be able to keep up. They won't be able to take it, so they'll just sell the factory, close down, and leave. Then the workers will simply be out of work and won't earn a single rand."
To put it bluntly, given the environment in South Africa, where robberies happen all the time, what foreign investor would travel such a long way to invest if it weren't for the potential to make more money?
Deputy Mayor Dlamini listened with a troubled expression.
He originally worked as an engineer after graduating from university, but later joined the anti-apartheid movement and became the deputy mayor after the new government was established.
Because he was highly educated and had a lot of experience dealing with white people, he was put in charge of attracting investment.
Having worked in a factory, he understood how much factory owners hated strikes. But he also knew the workers' urgent desire to receive the same wages as white workers in the past, so they could improve their lives.
But there's only so much money. If the workers get more, the employers get less, so naturally there's a conflict between the two sides.
Deputy Mayor Dlamini certainly wouldn't be happy to see the factory shut down.
Good heavens! So many factories have closed in South Africa in recent years, and the surge in unemployment is the biggest danger to social instability.
In his desperation, he grasped at straws and directly asked Wang Xiao, "Madam, you are a member of parliament and a successful businesswoman. Can you give us some advice on how to handle this labor dispute?"
Wang Xiao was truly speechless for a moment.
Dude, get this straight! One second you're trying to get me to invest in South Africa, the next you're asking me how to handle labor disputes there. Even a goldfish has a better memory than you; at least a fish can remember for seven seconds. Have you forgotten I'm the investor?
However, she still smiled politely at the deputy mayor and said, "I just arrived in South Africa yesterday and I don't know much about the situation here."
But perhaps because there was really no one else to ask, Deputy Mayor Dlamini persisted: "China also attracts investment, so how does China handle such issues?"
Wang Xiao smiled to himself, thinking to himself that mainland workers don't have the right to strike at all; the situation is completely different.
But she couldn't bring this up directly, so she changed her approach: "In China, there are factories called township and village enterprises, which are factories where farmers work during their off-season. These factories are all located in townships, very close to farmland, and sometimes even right next to farmland."
"In this way, workers can tend to their farmland and raise poultry and livestock before and after work. They don't need to buy houses; instead, they can build houses on their own land. They also don't need to buy grains, vegetables, or eggs; they can eat what they produce themselves. Therefore, their living expenses are lower than those of purely working-class families."
"In this way, even though the wages in township enterprises are lower than those in ordinary city factories, farmers are still willing to work in factories. Because no matter what, they will always earn more by working in factories than by simply doing farm work."
She sighed inwardly, thinking that in a sense, perhaps the reason why South Africa's economy continued to decline was because the black people of South Africa had witnessed just how luxurious the lives of the white people had been.
Because they had seen it, they naturally assumed that they could also be just as easily wealthy.
But in reality, even nations are not equal, so how can we assume that people are equally equal?
The system that developed capitalist countries can use, which allows them to withstand frequent strikes without collapsing, is because their wealth relies on financial exploitation and international wealth distribution, not on simply acquiring wealth through labor.
Otherwise, why is it that China, after producing a pair of jeans and doing the hardest work in the entire industrial chain, can only earn a penny, while the United States can earn ten dollars just by placing an order?
Under black rule, South Africa can play a role in the global economic value chain similar to that of China.
If the workers fail to recognize this point and instead compare themselves to workers in Europe and America, hoping to live like them, or else they will strike.
Therefore, the factories here have no choice but to go out of business.
These are principles that Wang Xiao cannot explain to the Deputy Mayor of Cape Town, nor is it necessary to explain.
Everyone has their own way of living, and every country has its own way of living.
Who does she think she is? What gives her the right to tell other people how to live their lives?
Wang Xiao simply smiled slightly, trying to express his goodwill: "I don't know if such township enterprises are also suitable for South Africa."
Deputy Mayor Dlamini nodded seriously, finding the other party's words quite reasonable.
It is true that most black people in South Africa are engaged in farming, and perhaps these small and micro enterprises called township enterprises are really suitable for survival in this land.
He originally came to inspect the market's operations and check for any illegal immigrants, but he was in a hurry to get back to the city government to discuss the feasibility of establishing township enterprises in Cape Town with his colleagues.
Yes, it should be possible. In fact, these kinds of township enterprises are quite similar to family workshops in Italy.
He handed Wang Xiao a business card: "Excuse me, ma'am, I have to go back now. If you have any problems in Cape Town, feel free to contact me anytime. My phone is always on."
Then he nodded, turned around, and left.
Wang Xiao was even more speechless.
Brother, you were just trying to attract investment, and now you want me to spend money here to start a business?
How could you forget about your target investors so quickly and go off to do your own thing?
Manager Zhang watched the man's hurried departure and chuckled, "That's just how Lao Hei is, like he's missing something in his head."
He lowered his voice as he said the next sentence, "They're really not very smart. Asking them to think about a problem is a headache just watching them."
Why did he warn that young black man not to buy too much stock at once? Because they really don't know their limits; they can easily take out all their money and then lose it all in one go.
He was thinking that once they made money, he could make even more money off them; of course, he couldn't stand by and watch them make a fool of themselves.
Wang Xiao smiled and looked at him meaningfully: "Of course, you're different, you're a smart person."
Manager Zhang instantly became dejected again; he hadn't even finished reporting his own accounts.
Sigh, it seems like I'll have to spend more money. It really hurts.
After touring the entire commercial city, Wang Xiao and his large group went to Manager Zhang's office for tea.
She casually picked up the newly arrived newspaper from the table and flipped through it.
When she saw the news in the corner, her blood pressure spiked instantly.
Grandma, don't tell her that the newspaper that Old Huang found reported this news, right?
This is so dry and meaningless, it's like saying nothing at all!
If you want to win when your behavior doesn't conform to the rules, then you can only provoke social emotions.
Old Zhang also peeked at the newspaper, completely forgetting that he himself hadn't understood the boss's deeper meaning yesterday, and shook his head seriously: "That Old Huang, really."
Wang Xiao simply reached out his hand: "Give me the phone, I'll call him."
If such a simple public relations effort fails, wouldn't that ruin her reputation?
Upon answering the phone, she got straight to the point: "Mr. Huang, your news release is incorrect. Take notes. The first point of the press release should emphasize that beans are a staple food, and wasting food is a terrible waste; the second point should mention the famines that South Africa has experienced in its history, emphasizing how many black people starved to death; the third point should ask you to express your willingness to sell this batch of beans to the farmers at a low price. 'Sow a seed in spring, reap a thousandfold in autumn.' Now is the season when spring is approaching in South Africa, and you are willing to help the farmers sow the seeds of hope for a bountiful harvest during this spring."
After hanging up the phone, she couldn't help but complain, "The company is based in Hong Kong, don't they know anything about how to use public opinion?"
If this were in Moscow, she would have already pointed out the extent of yesterday's criticism. If her assistants still managed to mess up the job, they would have dug a hole and buried themselves in it before she even had to say a word.
I can't afford to lose face like that!
Manager Zhang laughed out loud: "These government employees are all raised by their families, how would they understand these intricacies?"
Don't be fooled by the fact that state-owned enterprises are government-affiliated, financially powerful, and have powerful backers.
When it comes to doing business, these field army guerrillas are not necessarily bad at it.
Wang Xiao nodded with a smile: "That's right. After dealing with a smart person like Manager Zhang for a long time, you might mistakenly think that everyone is as smart as you."
Old Zhang's smile faded again.
My goodness, being clever isn't a good word at this point; it's practically synonymous with being cunning and treacherous.
Boss, can't you just give me a compliment for being honest when you look at my face?
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[Let me see] Good morning! At that time, there were two things that gave foreign investors a lot of headaches about the investment environment in South Africa. One was the terrible security, where people could break into factories and steal and rob in broad daylight. The other was the frequent strikes.
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