Chapter 814 Taking Over Two Factories Xiangxiang rode her bicycle for more than half a month, visiting several clothing factories in the city and suburbs that she was interested in.
She filled her small notebook with notes, and after returning to her office, she carefully organized them into a report, along with a hand-drawn simplified location map, and sent it to the capital.
In the report, she listed three of the most feasible options, each with its own advantages and disadvantages:
A garment factory in Pudong
This is a small collectively owned factory with relatively new equipment. Surprisingly, there are two rows of sewing machines that have been added in the last few days. There are about ten workers, most of whom are young women who are quick learners and have fast hands.
The factory manager has a strong desire to cooperate and even hinted that "the business model can be flexibly discussed."
There is great potential for capacity expansion.
However, due to its remote location, crossing the river at that time mainly relied on ferries, which would increase transportation and time costs.
Furthermore, the factory currently mainly produces for several small trading companies, and its management is relatively loose, lacking a quality control system. After taking over, a lot of effort will be needed to reorganize and train the workers.
Property rights in the neighborhood, while flexible, can also lead to subsequent disputes.
There is also a Friendship Clothing Store in Hong Kong District.
Located in the city center, it enjoys convenient transportation and is close to Jasmine brand stores and main sales areas.
There are many experienced craftsmen with solid skills, especially skilled in wool fabrics and suits, which have high requirements for craftsmanship, and the quality is generally good.
The factory is owned by the company, so there's no worry about the lease expiring.
It is a small operation with only about thirty employees, and its equipment is outdated, mostly old-fashioned foot-operated sewing machines, resulting in low production efficiency.
To meet the current order volume of Jasmine brand, it is almost necessary to completely upgrade the equipment and recruit more staff, which involves high start-up capital and transformation time costs.
Many of the workers are long-time employees and may be resistant to the new management model and the requirement to accelerate production.
Minhang District Dongfeng Textile Factory Affiliated Garment Workshop.
Located near a medium-sized textile factory, the company has a guaranteed supply of fabrics and can secure preferential internal pricing. The workshop is newly built, spacious, bright, and has good infrastructure.
There are about eighty workers, making it the largest of the three options.
As it was an affiliated workshop of a large state-owned factory, the workers were highly disciplined.
However, the system was rigid and the processes were cumbersome. Any decision required approval from multiple levels of the factory, resulting in low efficiency.
The workshop currently mainly produces workwear and low-end domestic products, and lacks experience in producing fashionable women's clothing.
The cooperation model tends to favor processing with supplied materials or contracting fees, which greatly restricts autonomy and makes transformation more difficult.
After receiving Bao Xiangxiang's detailed report in the capital, Lu Qingyang read it three times.
The risks are obvious.
Acquiring two factories at that time meant investing a staggering amount of money, including not only the acquisition or contracting costs, but also huge expenses for subsequent equipment upgrades, staff expansion, and management integration.
This will almost drain most of his working capital, and if there is any disturbance in the market, the consequences will be unimaginable.
But the temptation is just as great.
The geographical location and experienced master craftsmen of the Friendship Company are readily available and difficult-to-replicate advantages; the equipment base and production capacity potential of the Pudong plant indicate future expansion space.
Choosing only one option, either limited by scale or constrained by geographical location, would not completely solve the problem, nor would it support his grander vision.
"If you want to get fat, you can't skimp on the ingredients," he muttered to himself, a decisive smile curving his lips.
He immediately called Bao Xiangxiang back:
"I have read the report carefully, and I have decided that I want both."
Bao Xiangxiang on the other end of the phone was clearly taken aback; this answer was obviously beyond her expectations.
Lu Qingyang continued to deploy: "Friendship Society, try to negotiate the overall acquisition. The property rights must be clear. The master craftsmen there are treasures. We can't let any of them go. We can appropriately increase their treatment to keep them. It doesn't matter that the land is small. First, put the production lines for high-quality and high-priced products there and give full play to their advantage of good craftsmanship."
"For the Pudong factory, we'll discuss contracting or joint ventures to gain control of management. They have a large workforce and newer equipment there, which is perfect for mass production of our basic and best-selling models. The location is a disadvantage for now, but you should keep an eye on the planning trends in Pudong. I have a feeling that it won't stay out of the way for a long time."
"I'll handle the funding issue, you don't need to worry. Your task is to secure negotiations with both sides as quickly as possible, and the pace needs to be fast."
After securing the position, we will first transfer some skilled workers from Guangzhou to serve as the backbone and mentor the newcomers.
Regarding the machine upgrade, I will make arrangements on my end, and it will be carried out in batches so as not to strain the cash flow too much all at once.
This will be very hard work; the spread will be large, and there won't be any conflicts.
But for our Jasmine brand to truly take root and grow stronger in Shanghai, we must take this step. Sister Xiangxiang, I'm entrusting everything here to you.
This was the first time Bao Xiangxiang had been entrusted with such an important task. She nodded and said, "Don't worry, leave everything to me."
Lu Qingyang hung up the phone, which was also a challenge for Bao Xiangxiang.
However, the women's clothing market needs someone to take the lead, and he believes in Bao Xiangxiang's abilities.
When I got home for dinner in the evening.
Lu Qingyang picked up a piece of food with his chopsticks and said casually, "I made a decision today. In Haishi, we plan to take over the Friendship Clothing Company and the factory in Pudong."
Upon hearing this, Shen Mo put down her chopsticks, a hint of surprise on her face: "You've taken over two factories at once? That's quite a leap for you. However, with business so good there, not being able to keep up with production capacity is indeed a big problem."
As she spoke, a hint of admiration appeared in her eyes, "Sister Xiangxiang is really amazing, she can help you manage such a big undertaking."
Lu Qingyang looked at her with gentle eyes: "If you are interested in doing business, I can allocate some funds and find a suitable project for you to try out. Don't feel pressured, just consider it a learning experience."
Upon hearing this, Shen Mo quickly waved her hand, a knowing smile on her face: "Stop teasing me. I can handle holding a scalpel and making a few cuts on the dissection table, but asking me to negotiate business or do accounting? That would surely make you lose all your capital. I'd rather just focus on studying my medical books and be able to stand firm in the operating room in the future. That would be enough for me. In our family, one capable person who can make money is enough."
As she spoke, she picked up her chopsticks again and placed a piece of pork ribs, which Lu Qingyang loved, on his plate. Her eyes were clear as she said, "You do what you're good at, and I'll do what I like. It's fine this way."
"What's there to be afraid of if we lose money? Our family has savings."
"I can't afford to lose money."
Shen Mo sighed softly and put down her chopsticks: "Speaking of which, Little Stone and Little Fish go to kindergarten every day and come back late. I feel so sorry for them. Thinking back to my childhood, I was used to being wild in the mountains."
In his heart, he actually felt that the current kindergarten conditions were quite good, with teachers leading children in singing and drawing, which was much better than leaving the kindergarten unsupervised, and at least safer.
Lu Qingyang swallowed the food in his mouth and replied in a normal tone, "Yes, things are different now than they were back then."
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