Chapter 68 Ways to scale up
"I didn't expect that there would be such food in a northern city like Bingcheng, so it seems that I will have to go to the mainland to see it in the future. Li Sihua put down his chopsticks, picked up a napkin and wiped his mouth.
"What, Guo's Group is planning to enter the mainland market?" Wang Haoan keenly discovered the mystery in his words.
"It hasn't been determined yet, but through Jijie's case, the chairman of the board of directors will re-evaluate the mainland market, and perhaps soon, the Kwok Group may enter. ”
Wait until after 97 to make a decision, which is the intention of many Xiangjiang businessmen now. Now they have another option, to leave their naturalization and become British. The Commonwealth of Britain is very large and suitable for them to do business.
But many more people do not want to leave the place where they have lived for many years, and many people have relatives in the mainland and do not want to become foreigners.
With the name Li Sihua, I know that his father also wanted his hometown, and he was educated by his father since he was a child, and there are still many patriots on the Xiangjiang side.
The Kwoks Group's entry into the mainland market is certain. With such a huge emerging market, no one wants to give up. But emerging markets also mean that the market is not mature enough, there will be many difficulties, too many variables, and many successful businessmen are no longer willing to take risks.
In the early days of entrepreneurship, many businessmen are very adventurous, in order to make higher profits and grow faster. But when it grows to a certain size, many people become conservative because they are afraid of losing.
A poor and white entrepreneur will lose nothing if it fails, and you can start a second venture soon. But when they become famous, once they fail, it will be difficult to turn over, and the loss will be too great.
Isn't it the same old saying: the older the rivers and lakes, the less courageous they are. The same applies to businessmen.
"By the way, how will Anjie Company develop next? How do you plan to use this capital injection?" Li Sihua asked, also with a sense of teaching.
"Expand the production line, increase the number of stores, open more directly operated stores, increase sales, and occupy the market. Guo Jijie said without hesitation.
He also has a plan for the future development of the company. It's just that when he was at home, he didn't dare to say that Lao Dou hadn't decided to invest money in him at that time.
"It seems that Mr. Wang has a different opinion?" Li Sihua saw Wang Haoan shaking his head slightly.
"It's not really cost-effective to expand the production line. Not to mention the relatively high wages of the workers in the ice city, the factories in the ice city can cover the three northeastern provinces at most, and if it is farther, the transportation cost will increase a lot, so it is better to build a factory locally. ”
"But building a factory requires a lot of investment, and our money is far from enough. The cost of buying factories in the south is not low, even if it is to find some companies with higher debt ratios, it may not be appropriate. ”
"But this still has to be done, the acquisition of ready-made factories, can expand production capacity faster, capacity is our top priority. ”
"In fact, there is another way, that is, to find someone to do OEM, we produce the drawings, let them produce on their behalf, and affix our trademark, which is the fastest way to increase production capacity, but it is not cost-effective in the long run. ”
The garment industry is a labor-intensive industry, and labor is a huge cost. Finding someone else to do OEM, others will definitely want profits, and the quality problem is still difficult to guarantee, but it is the fastest way to expand production capacity at present.
"OEM? This method is good, but the question is what if someone else takes your first order and directly imitates yours in the future? I heard that in the mainland, this kind of thing is very common, and the local people will not care, and even protect those people. Li Sihua pointed out the problem inside.
"That's right, so OEM is just a stopgap measure, at the latest next year, we will acquire a few mature factories, nationwide layout, at the moment is capital turnover. ”
"Yes, yes, it's important to open more stores at the moment, and the more stores we have, the faster we can sell, so that we can make more money. Now sales are still not able to keep up, after the expansion of production capacity, in case of bad sales, the profit is bound to decline. Guo Jijie added.
"Jijie, have you thought about how much it costs to open a store?" rent, decoration, employee salaries, and other miscellaneous expenses, how much does it cost a year?" asked Li Sihua.
"200,000 yuan is enough, right? We have so much liquidity, is there a problem with opening dozens of directly-operated stores?" Guo Jijie asked rhetorically.
"Dozens, so how many cities are covered by dozens of them? The three northeastern provinces are about the same, and they will go to the capital. We want to lay out the whole country, even if we open one in one prefecture and city, and cut out those remote mountainous areas, it will take 200 to be enough, how much do you calculate how much it costs?"
"We're going to open stores in other regions, so we have to keep up with the advertising, right? Without publicity, will others buy our clothes? Have you calculated how much advertising costs?" Wang Haoan asked rhetorically.
"Then we can cover the three northeastern provinces first, stabilize the market, and then slowly develop to the south." Guo Jijie argued.
He just calculated according to what Wang Haoan said, it will cost tens of millions to open a store, and if you count advertising, it will cost 100 million. With so many stores, relying only on the factories here, the production capacity will definitely not be able to keep up.
It is also necessary to open a branch factory or branch, which will cost tens of millions, or even hundreds of millions. The company's current liquidity is only a few million, and it still owes bank loans and some payments.
Why is it that when there is no money, I feel that the company is running very well, and with money, it adds so many troubles?
"Have you forgotten what Mr. Li said just now, our clothing is very easy to imitate, you have stayed in Nanyue, you know that there are many small garment factories over there, right? In fact, Nanyue is not the most, there are still a few provinces, there are more small garment factories with a few people and more than a dozen people, and they usually make money by following the trend. ”
"In the past few years, the mainland bell bottoms and pedal pants were easy to sell, so they all made this, and then the skirts were easy to sell, and they all made skirts, and the style, color and even the same, but there was no trademark. ”
"If we don't make a rapid layout, the market will be occupied by others first, what will we do when the time comes? We only need the market in the three eastern provinces? How many people are there in the three eastern provinces?"
"Then what do you say?" Guo Jijie was stunned, he hadn't thought about these questions.
Li Sihua also looked at Wang Haoan with interest, this young man was better than he imagined, these questions were also what he wanted to ask, it seemed that Wang Haoan already had the answers.
"We need to recruit agents. Whether it is OEM production or agent sales, they must use our brand trademark to expand our product awareness. When the agency contract expires, the initiative is still in our hands. ”
"And we can quickly occupy the national market at a very small price, and we can also collect deposits from agents, accumulate funds, and grow ourselves. ”
"Mr. Li, Mr. Ma, do you have any comments or suggestions on my plan?"