Chapter 426 The beginning of controlling Hong Kong’s manufacturing industry
December 25, Christmas:
Many British-funded companies in Hong Kong have already had holidays, but Chinese-funded companies obviously do not, and the same is true for Changxing Group, which does not take holidays in the West.
Of course, for many Chinese-funded enterprises in Hong Kong, there are no Sundays, at most there is Spring Festival.
This is also the result of the balance between manpower supply and demand. In the 1950s, there were more workers and fewer companies. Everyone was looking for work, and there was no choice;
996? That's really a blessing... Most companies were 7724 in the early days. They started work at 7 a.m. and got off work at 24 p.m., working seven days a week. There were even bosses who locked up the factory and did not allow employees to leave. There are still many companies like this. People without stable jobs turn to capitalists.
Nowadays, with the development of Hong Kong's industry, the situation in this regard is much better. One is that the British in Hong Kong have also begun to impose appropriate restrictions on capitalists. After all, the polar bears are still there. The other is that with more factories, the number of workers has begun to become tight. This This is also the benefit of industrialization. Only when industry is more developed can workers live a better life. This is true in any society.
I have been in Hong Kong for almost 7 years. Seeing such changes with my own eyes makes Yang Wendong feel that the changes are really fast. Hong Kong has developed so fast in these years, just like the earliest Shenhai City after the reform of the Mainland. favorable conditions.
"Dong dong dong~" The knock on the door made Yang Wendong recover from his thoughts. He looked back and saw that it was Zhou Haoran from Watsons, so he smiled and said: "Come in."
After Zhou Haoran walked in, he smiled and said: 'Yang Sheng. ’
"Sit down," Yang Wendong nodded and asked, "Has the second phase of our sugar factory been built?"
The core of any manufacturing industry of the Changxing Group is to expand both the front and back ends. Yang Wendong, a big capitalist, is responsible for the back-end sales end, and each subsidiary is responsible for improving the early industrial chain.
After creating strong demand through OEM Pepsi, Watsons began to enter the sugar industry. This itself was also a requirement of Pepsi, and they also hoped to further reduce costs.
"Yes, trial production started just two days ago. It is confirmed that there is no problem at present, and the production capacity will be gradually increased later." Zhou Haoran replied: "When this phase of the workshop is put into production, then our sugar production capacity can reach 3 Thousands of tons a year.”
"Okay, this data is very good and can meet Pepsi's requirements." Yang Wendong nodded and said.
30,000 tons a year, this number does not seem to be much, compared with grain and the like;
But sugar is different. In the previous life, the mainland's annual sugar production capacity was only 10 million tons. A factory could produce 30,000 tons a year. The scale was considered medium-to-high, especially since this was still Hong Kong, and raw sugar still needed Completely dependent on imports.
Zhou Haoran added: "It is definitely enough for now, but Pepsi-Cola's production in Southeast Asia has also developed very well in the past two years, and our costs here are lower than those in Japan, and the distance is close, so large-scale production orders are given to
China Resources is also currently purchasing sugar from us through third-party companies. Their demand is even greater. If they really give us 1/10 of the sugar, then we may not even have enough for one factory. ”
"This is indeed an opportunity, a good opportunity to expand in the sugar field." Yang Wendong agreed: "In the future, we will expand according to demand, but remember, we cannot completely rely on two or one large factory. It is very dangerous to rely only on core customers. If you don’t cooperate, it will be over.”
For a long time, Changxing Group has controlled many factories in Hong Kong as a major customer. It can be said that it controls the fate of these companies to a certain extent. Once orders are not given, their vitality will be seriously damaged, or they will go bankrupt;< br>
But even as a time traveler, it is impossible for the industries under his control to completely control everything. There are also some industries that rely on other people's industries to survive, which puts him in a similar situation. He also wants to get rid of this passive situation;
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This is the case with sugar factories. Although Watsons itself has demand for sugar, the quantity is too small. It mainly relies on orders from PepsiCo. Even when seeking orders from the mainland, it is to avoid the risk of relying on only one company. It can also be over-reliant on two companies. If the risk is high, the best model is to have a few large customers plus many small customers.
The diversification of enterprises is also multi-faceted, whether it is suppliers, customers, factories, businesses, etc., diversification means low risk.
Zhou Haoran replied: "Understood, I have also contacted dealers in Japan, some countries in the Middle East, India, South Korea, and the United Kingdom, and will start exploring their markets as soon as possible."
"India?" Yang Wendong thought for a moment and said, "It's okay to do business with India, but you must receive the full payment first, otherwise you will be easily deceived."
Third Brother’s thoughts are not something that only existed after the 21st century in the previous life. It’s just that in the non-Internet era, it is really easy to deceive people. If you don’t have enough experience, you will definitely be easily deceived. If you are deceived, you can only tell Outsiders have no way of knowing the people around them, which leads to countless injustices.
"Full payment?" Zhou Haoran was stunned and asked: "Isn't it a bit difficult to trade like this?"
Yang Wendong shook his head and said: "Don't think too much about this matter. India often deceives people in trade. Although the person you found may not be like this, I don't want to bet.
If he is not willing, then forget it, I will not do business in India. If he is willing, the full payment will be made upfront, and after many cooperations, it can be the same as in other countries. ”
"Okay." Zhou Haoran also saw that the boss had made up his mind and he didn't want to get into trouble.
Yang Wendong added: "If there are a lot of orders for Pepsi, will the can production line be enough?"
"You still need to purchase it in the future." Zhou Haoran said: "Dongsheng has also developed some production line equipment. In this way, except for some core equipment, everything else can be produced in Hong Kong.
This can save a lot of money and time. ”
"This Dongsheng is really quite capable." Yang Wendong also praised.
Historically, in the 1970s and 1980s, Dongsheng was not well-known. Perhaps it was its own appearance, coupled with the support of capital and orders, that allowed it to develop and now it has become a company specializing in the production of various equipment.
This type of enterprise is also the core of a regional manufacturing industry. Otherwise, the corresponding equipment cannot be produced locally, but it is impossible for many industries to grow, such as textile factories, injection molding factories, mold factories, etc., all of which rely on the ability to Only companies that manufacture equipment locally can be competitive. Zhou Haoran smiled and said: "Yes, not only my beverage factory, many of the equipment of Changxing Industrial and many of the simple assembly lines of Honor Electronics are produced by Dongsheng;
In addition, many small factories in Hong Kong also rely on Dongsheng for production. Nowadays, Dongsheng's scale is very large. ”
"Yes, I remember that I still own 35% of their equity." Yang Wendong then asked: "What is Dongsheng's current annual turnover?"
Zhou Haoran said: "I don't know the specific details, but it should be between 20 and 30 million. It is considered a big company in Hong Kong."
"Well, let him develop well." Yang Wendong nodded and said: "Next time, tell Dongsheng's boss that although it is very profitable to make non-standard equipment, it is difficult to scale;
If you want to make a lot of money and expand your company, you have to choose a technical direction and conquer it seriously, such as a beverage production line. If it can be done well and cheaply, it can also be exported to Europe, the United States, and Japan, as well as other textile and injection molding equipment. So.”
The profit margin of non-standard products is very high, but the essence is that there are high profits because there are few orders. It is not that this industry is not good, but it has limited potential. Any large equipment manufacturing company has a direction if it wants to expand, such as beverage production lines, machines Processing production lines and so on.
"Okay, I will discuss it with Lin Sheng." Zhou Haoran agreed.
Yang Wendong added: "Also, tell him again. I encourage him to make machining equipment, such as turning, milling and polishing."
"Mechanical processing equipment?" Zhou Haoran was a little confused and asked: "Yang Sheng, there are some markets for these equipment in Hong Kong, but they are still relatively small."
Yang Wendong said: "It's okay. Tell him that if he can make these equipment and the quality is good, I will use the resources of Changxing Group to help him expand overseas markets."
The core of the manufacturing industry is these processing equipment. In the future, we will enter the home appliance market. Although we do not need these processing equipment directly, we can trace back to the source that various parts and components are still made by these equipment.
Nowadays, the scale is small, and the existing processing equipment in Hong Kong is sufficient for the time being and can supply itself. However, when Honor Electronics becomes larger in scale in the future, it will be different.
Moreover, the mainland in the future, or the current mainland, will also need a large amount of this kind of equipment. These are production materials, and the mainland is still willing to spend foreign exchange on this aspect.
As long as it is not high-precision equipment, it is not restricted by Batumi. Besides, the overseas market is also very huge. In the previous life of Wanwan, in the 1990s, its various processing equipment industries were at their peak.
"Okay, Lin Sheng will definitely be very happy when he finds out." Zhou Haoran asked again: "Yang Sheng, you are so optimistic about Dongsheng, otherwise we can buy it all."
"Funding is not a problem. I once sent someone to ask, but Lin Sheng was not willing, and even if I acquired it, he would start another business by himself and would not work for me." Yang Wendong shook his head and said, "This kind of business, The core is these founders. If you acquire them and leave, who will manage them? We are not good at managing non-standard enterprises or this kind of technology enterprises.”
Dongsheng Manufacturing has become one of the foundations of Changxing Group and even Hong Kong's manufacturing industry. If this company continues to develop smoothly, it will be of great help to the entire Changxing Group and even Hong Kong's manufacturing industry.
However, Changxing Group and even Honor Electronics are good at consumer market products, not equipment. This business is similar to a country's heavy industry. It is very important, but not everyone can do it.
Therefore, he used to support Dongsheng through investment rather than acquisition, because after acquisition, his own management may not be as good as the original team.
"That's true." Zhou Haoran nodded and said: "Then if Changxing Trading is allowed to expand its overseas markets, it can also indirectly control them."
"Well, but this kind of trade is different from before. Let Zhang Zefei study it carefully." Yang Wendong added: "To control a company for our use, we don't necessarily have to buy the equity. It is also possible to control both its front and rear ends. .”
There are many plastic manufacturing industries in Hong Kong, which are controlled by Changxing Group in this way.
At the front end, they need to rely on the plastic particles purchased by Changxing Trading. In the middle end, part of the land is leased from the Changxing Industrial Park. Some of the terminal products are also OEMed by Changxing Industrial or rely on Changxing Trading.
The entire closed loop is under the control of the Changxing Group. However, unlike the previous British capital that cut flesh and drank blood, although the Changxing Group's business model seems to have taken a large part of the profits, it is also because of the entire industry chain. Make the cake bigger and even find overseas customers for local companies.
Therefore, for all kinds of small businesses, although their lifeblood has been seized, as long as they do their own thing well and ensure quality, the profits will be higher and more stable than before, and there will be less need to consider orders. This is This is a business that many small business owners only dream about.
In the future, when you make achievements in other industries, such as paper, textile, electronics, etc., you can also copy the layout of the plastics industry.
After all, a group cannot make unlimited acquisitions, and the management capabilities of personnel also have limits. A company with too many employees is more likely to breed corruption, chaos, inaction, etc. In the past, many large companies would always find ways to become asset-light in the later stages of their development. , outsourcing and other models, this is the reason.
Nowadays, this model can achieve mutual benefits and win-win results with many companies. You only need to control the front and back ends and add a share of the shares to get most of the profits of the entire industry chain. Management is much easier, and the small business itself You can also make more profits, and this model can last long.
This can even be done in Bay Area and Singapore in the future.
Of course, it is very difficult to replicate in these places, especially in the mainland, but the principles are similar. If you cannot achieve the whole picture, you can always do part of it.
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(End of chapter)