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Chapter 95 Establishment of Huaxia Huanyu Textile Group

More than ten days after that

Accompanied by the city leaders and relevant personnel from the Second Light Bureau, Luhang inspected more than a dozen proposed joint ventures, including yarn mills with a scale of 10,000 people, large dyeing and weaving, clothing processing backbone enterprises, as well as foreign trade companies, etc.

As the world's largest textile producer, China has dozens of large textile factories in the Magic City alone.

From Cotton Textile Factory 1 to Cotton Textile Factory 13, Gusu City is a large enterprise with more than 5,000 employees, with a strong production capacity.

The biggest problem is that in recent years, the EU and the United States have successively launched anti-dumping investigations on textiles in China, believing that it has damaged domestic related industries and imposed heavy taxes.

The entire Chinese textile industry has seen too many monks and less porridge. Textile export companies for foreign trade are competing to lower prices, causing the entire textile industry to fall into a cold winter.

How do you say life... Wang Xiaoer's New Year is getting worse every year, which is a pain of growth.

These companies are big local job creation households, with tens of thousands of employees and tens of thousands of families. The companies are in serious losses due to vicious competition, and a large number of employees cannot get their wages, which is a big problem for the local government.

This is not because of insufficient market competitiveness, but because of the international environment.

The arrival of Hong Kong Universal Trading Company has become a life-saving straw for the local government and the competent authorities, striving to send the company out for joint ventures, with the preferential conditions so good that I can't believe it.

These are all local old state-owned enterprises, which occupy a large amount of factory land, raw material yards and warehouse facilities in the city. In the future, they will be prime locations that are hard to find.

Faced with the enthusiasm of local officials, I thought about it again and again;

Land Airlines decided to expand the scope of the joint venture and build a Hong Kong Universal (Holding) company, forming a one-stop production and export base in the mainland, from raw material acquisition, textile, dyeing and finishing to clothing manufacturing, from clothing design to foreign trade exports.

It has a joint venture of three large cotton textile factories with more than 300,000 spindles, two dyeing and finishing enterprises, four key clothing processing enterprises, and merged some foreign trade enterprises with export qualifications in Magic City and Gusu City to form a clothing export base with employees of 57,000.

The joint venture has a total investment of HK$425 million, accounting for 54.2% of the company. The other shares are held by the Textile Bureaus of Magic City, Suzhou and the State-owned Assets Supervision and Administration Commission and other state-owned shareholders.

In accordance with joint venture requirements;

The newly established Huaxia Huanyu Textile Group Co., Ltd. is a subsidiary of Hong Kong Huanyu (Holding) Company. It has independent legal person status, is responsible for its own profits and losses, and operates independently.

The group will streamline 30% of its personnel, and reduce its personnel to less than 40,000, and merge and reorganize relevant duplicate production capacity.

It is planned to acquire more than 4,000 mu of land in the Industrial New District of Gusu City, introduce advanced machinery and equipment, and create a new export production base.

The original old factory buildings, old factory areas, raw material yards and other lands in the city were traded at a discount to Hong Kong 21st Century Real Estate Company for use as reserve land.

After the joint venture agreement was signed, clothing orders flew over like snowflakes, and the relevant companies immediately entered full speed.

"Trendy Brand" clothing is not just a fist product. According to the popular fashion trend of big-name clothing in recent years, it has transformed thousands of clothing products, covering men's and women's clothing and middle-aged and young consumers.

This part of the products will be exported to Hong Kong, Malaysia and other places first for the final processing procedure.

Put on the brand logo, origin and raw material ingredients signs, refine packaging and sorting, and finally export it to Japan, South Korea, Europe and North America respectively, entering the circulation channel for thousands of consumers.

This avoids tariff barriers between the EU and the United States and allows legal access to the market and sale.

The large-scale investment and production enterprise of Hong Kong Universal (Holdings) Company violates the original intention of Nike's brand's "light asset" concept and increases operating risks.

Lu Hang temporarily changed his original plan, and the reason for doing this was that his heart was deeply touched.

During his inspection in the cotton textile factory and clothing factory, he felt that the burden was so heavy for the first time when facing the warmly welcomed employees and the look of anticipation.

Happiness is not about getting rich by one person, but about bringing the joy of harvest to thousands of households, so that they can enjoy the dividends of corporate growth together.

Otherwise, no matter how much money you make, what's the point?

Hong Kong Universal (Holding) company has a very large demand. It is okay to give production orders to any company. It is possible to integrate a comprehensive textile export company and support tens of thousands of employees.

Take the production of water-washed and grinded white jeans as an example;

Due to its super-large production capacity and the cheap labor force in mainland China, each pair of low-end water-grinding jeans costs about HK$23.5. This price-related textile, dyeing and clothing processing companies can obtain profits above the average level.

In addition to the later production, transportation, tariffs and other expenses in Hong Kong and Malaysia, the arrival of the United States was about HK$27.8, which is the cost price.

The delivery to the channel is priced at US$11.5, which is about HK$89, and the gross profit reaches 320%. This is the power of the private brand.

The suggested retail price of the manufacturer to channel dealers is US$19.5 per unit, which also has 80% profit margin.

If you don’t have your own brand, you can only get a little pitiful processing fee, and the majority of your profits will be taken away by foreign brands, and you will only become a worker and fall into a vicious circle of low-level competition.

This is the original intention of Luhang to build "trendy brand" clothing, and it is also the fundamental reason why he spent a lot of money to buy the "Playboy" brand.

This time in 1988

Most domestic companies are blinded by the international market, and they have a natural resistance when dealing with foreign businesses. They only know how to build a temple in snail shells, and their vision is limited to the small pond of processing fees.

What can't be beaten with a full hand of king bomb?

You must know;

This is just the price of low-end water-ground jeans. There are dozens of types of men's and women's jeans, and the prices are different from different materials.

The price is less than 20 US dollars, and the price is more than 50 US dollars. Consumers can choose their favorite products based on the situation of their wallets. There is always one that suits them.

In addition, there are various jewelry and dolls that cost three dollars, five dollars to eight dollars or even dozens of dollars, all of which are lucrative big businesses.

Cool all-steel chains, copper nameplate with ancient family badges, denim bronze dolls, horse-riding denim bronze dolls, etc.

In Vice President He Huixian’s brand building plan;

The trendy clothing is further divided into the "Trendy Brand Western Denim" series, focusing on denim clothing series products and accessories.

The "Trendy Brand Miss Harley" series focuses on the target group of young girls under the age of 20.

The "Trendy Brand Hurricane Boy" series focuses on the target group of young people under the age of 20.

The "Trendy Brand Elizabeth" series focuses on white-collar professional women consumer groups.

The "Trendy Brand Ivy" series focuses on the middle-aged and young professional male consumer groups.

This is a complete long-term brand building plan. The first step is to create a reputation for "trendy brands" with high quality and good goods and low prices, and occupy the European and American markets through popular products and high cost performance.

Then, step by step, launching sub-brand brands to create a complete world of "trendy brand" clothing, and becoming a world-renowned best-selling brand.

Because Hong Kong Universal (Holding) Company holds its own brand and is directly facing the European and American markets, reducing the price increase of agents in the middle, from eating the fish head to the fish tail, so it can withstand market risks to the greatest extent.

The key to Luhang's venture to make such a big investment is that there is a cash cow at home, and Boba Milk Tea continues to create high profits, which is enough to support the operation of the company.

The largest villa No. 2 on Nanjing West Road is now the headquarters of Huaxia Huanyu Textile Group. The brains of the entire group company are filled with busy people.

The Finance Department can only be located in Villa No. 3 next to it, and the Logistics General Affairs Department is located in Villa No. 4 for office work, and the office conditions are quite cramped.

Villa No. 2, third floor, Group Company President's Office

This is an office that is only more than ten square meters in size. After the meeting area is separated, the place looks quite small. Lu Hang sat on the sofa behind his desk and gave face-to-face advice to Textile Group President He Shasun, Vice President Luo Wen, Mai Xiaoling, Wang Aiguo and others.

"After the establishment of the group company, the most important task is to effectively organize production and deal with orders from all parties.

This work is specifically managed by Mr. Luo Wen, Vice President. I hope you can coordinate relationships in all aspects and organize production well. This is the top priority."

Vice President Luo Wen is a middle-aged man under 35 years old. He knows English, has high professional and technical skills, and is very good at young and strong in management.

He was formerly the deputy director of the MoU Textile Bureau and a graduate of Fudan University in the early 1980s. The college students of that era were of great value.

"Chairman, I, Luo Wen, have made a military order here. I will never drag down the overall situation of the group due to production reasons, otherwise I will come and see you."

Lu Hang said happily, "Okay, you are all talents I am particularly optimistic about. I hope to grow with the group. I will offer a generous salary equivalent to the Hong Kong side to the senior management of your group. I hope that you will not be entangled in the big profits in front of you and devote yourself to your work with all your heart. By then, you will be able to get rich options returns and become one of the real owners of this company."

"Please rest assured, I dare not let the chairman down."

Lu Airlines nodded with satisfaction and looked at Vice President Mai Xiaoling, who is a Taiwanese American from Ho Sassoon's team. She has a double master's degree in business from the University of California, Berkeley. She has worked in internationally renowned companies such as Reebok and Nike.

"Vice President Mai, you are in charge of corporate restructuring and acquisitions, as well as overseas factory establishments, and it involves a wide range of areas and heavy loads. How are you doing now?"

"Chairman, our work has been fully launched and the current progress is very gratifying."

"Oh, I'm very confident!"

Lu Hang tapped the table with his slender fingers, his eyes swept across the faces of He Shassoon, Wang Aiguo and others, and finally stopped on Mai Xiaoling. This is a tall professional woman who looks calm in a well-fitted professional suit.
Chapter completed!
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