National Tide 1980.

Zou Guodong cleared his throat and gestured to Ning Weimin with his eyes that they could begin.

Ning Weimin stood up, first nodding slightly to everyone, with his signature calm and composed smile on his face.

"Everyone spoke very enthusiastically just now, and the suggestions they made were very targeted. This shows that everyone has the company's interests at heart, and I am very pleased."

The opening remarks warmed everyone's hearts.

But then, Ning Weimin changed the subject.

"However, I have thought about the suggestions made by the colleagues earlier and have some different opinions, which I would like to discuss with everyone."

He first looked at Gan Lu, who had just suggested strengthening consumer education, and spoke in a serious tone.

“I agree with Gan Lu’s suggestion to strengthen public opinion and propaganda. However, I think the phrase ‘educating consumers’ is inappropriate. We are businesses, we sell goods, and our duty is to provide services. People come to consume, and the customer is king. We cannot put ourselves on a pedestal or act like a teacher. This will make customers feel resentful, and if customers get the impression that we are a big company that bullies them, the consequences will be very serious.”

Ning Weimin seemed to realize he had been a bit too harsh, paused, and then softened his tone.

"More importantly, what kind of money do we at Pierre Cardin make? We make money from our customers' vanity, from their sense of face. If we openly advertise the rampant counterfeit goods on the market, what kind of impression will it give our customers? It will make them think that there are so many counterfeit Pierre Cardin products that they can be found everywhere, even on street stalls, that it's completely out of control. This will actually lower the value for money of our 'PC' brand and dampen customers' willingness to buy. After all, no one wants to spend two thousand yuan on a piece of clothing, only to find that they can buy the exact same brand for a few dozen yuan under the overpass, even if the workmanship is poor, the 'PC' logo is the same. This will make genuine customers feel that their money was wasted, and even feel ashamed to wear it out."

Upon hearing this, everyone nodded in agreement, feeling that these words had indeed hit the nail on the head.

Gan Lu realized her own bias, blushed with embarrassment, and admitted it on the spot.

"President Ning, you're right. I didn't consider that aspect. I was too naive and didn't think things through."

However, she immediately raised another question, "If that's the case, shouldn't we be concealing the rampant counterfeit goods? But you just mentioned strengthening public awareness campaigns, wouldn't that be like rubbing salt in the wound? Is that really necessary?"

Ning Weimin stared at her, shook his head, and then explained.

"The truth will out eventually. Even if we don't say anything, customers will see it on the street. But the focus of our publicity should not be on the fact that there are many counterfeit goods. Instead, we should focus on the harm of counterfeit clothing and our company's determination to crack down on counterfeit goods in order to protect the interests of our customers."

Seeing that Gan Lu still looked puzzled, Ning Weimin didn't get impatient and explained in detail.

"Most people buy counterfeit goods for a simple reason: they're cheap. Whether they can't afford genuine products or are simply looking to take advantage of the low price to satisfy their vanity, they're drawn to the cheapness and believe it's a win-win situation with no harm to themselves. We need to shatter this illusion. We can have some negative examples of 'penny wise, pound foolish' situations compiled and disseminated to the public through the media. For instance, a company was negotiating a partnership with a foreign businessman, but the representative's counterfeit designer clothes were immediately recognized by the foreigner, leading to the businessman's questioning..." Doubts about the Chinese side's economic strength, the intelligence of the person in charge, and even the integrity of the entire company ultimately led to the failure of the contract. For example, those workshops, in order to save costs, use extremely cheap fabrics, even dyeing them with toxic dyes. We should use this to raise public concerns about health and safety. If we produce test reports and have some medical experts remind the public that these counterfeit goods are even more toxic than imported garbage! Wearing these clothes can cause skin diseases at best, affect fertility at moderate levels, and even lead to leukemia at worst! See how many people would still dare to take advantage of this? I don't believe they wouldn't be afraid…”

"Hahahaha!"

Before Ning Weimin could finish speaking, the meeting room erupted in laughter.

"That's a brilliant move!"

Some people couldn't help but slap their thighs, saying, "Those who care about saving face end up losing face, and might even lose their lives. Regardless of whether it's true or false, with this kind of publicity, those who want to buy counterfeit goods will definitely have to think twice."

"Exactly, especially the health reminder, it's brilliant. Actually, it doesn't have to be as serious as leukemia; just the fact that it 'affects fertility' is enough to scare those young people to death."

Ganlu finally understood, and a shy yet admiring smile appeared on her face.

She was also amazed by Ning Weimin's brilliant move.

Indeed, people often buy counterfeit goods with a sense of侥幸心理 (a gambler's mentality), thinking it's just a moral flaw.

But once it is discovered that this is not only immoral, but may also come at a cost to one's health or finances, the psychological balance will definitely shift.

As for Ning Weimin, his amazing skill was not actually his own creation, but rather inspired by the Guo Group, which was known for its lack of martial ethics.

It turns out that in January of this year, the first generation of small-packaged blended oil produced by Nanhai Oils, a joint venture between the Kuok Group and COFCO Group, was officially launched.

However, for domestic consumers at the time, this product was too novel and expensive.

Therefore, everyone adopted a wait-and-see attitude, resulting in extremely low sales of this blended oil at the beginning, which was completely unable to compete with the bulk grade II oil that enjoyed national subsidies.

Not to mention that at that time, ordinary people were still used to using lard that they rendered themselves from lard.

That's what you call cheap and delicious!

In reality, people in mainland China only remembered the attractive packaging and the golden dragon fish; very few were initially willing to spend money on blended oil.

Therefore, Guo Kefeng, the person in charge of the Guo family in mainland China, resorted to unethical underhanded tactics.

The specific method is to use advertising and expert endorsements to portray lard and unrefined bulk oil, which are popular among people in mainland China, as "backward" and "causing disease".

They repeatedly brainwash the public, instilling in them the idea that lard and sesame oil are saturated fats that will raise cholesterol and induce heart disease.

And he actually succeeded.

In this way, through sheer mental intimidation, he opened the door to the mainland market and successfully sold his refined blended oil at a high price to the not-so-wealthy mainland people, positioning it as "healthy".

Everyone is afraid of death.
Ning Weimin witnessed this and was furious.

Although he was hesitant to intervene because of the interests of COFCO Group involved, he was reluctant to do anything.

But he kept these tricks in mind, and now that he's dealing with counterfeit goods, he can put them to good use.

"Furthermore, to reassure customers and put pressure on counterfeiters, we must take a tough stance. Regardless of whether we can actually do it, we must verbally declare zero tolerance for counterfeit goods. We can set up a 'reward mechanism' to pay for clues about counterfeit goods. At the same time, we should cooperate with government inspections and report more news about large-scale destruction of counterfeit goods, exaggerating the scenes to create a stir."

After everyone finished laughing, Ning Weimin continued to add.

Everyone was in complete agreement on this strategy, nodding in support. The only remaining concerns were about the cost and the expected results.

As someone said, "President Ning's strategy is good, and I agree with it. But if I may be frank, the actual results will depend on its implementation. After all, we all know the current law enforcement environment. It may not really turn out as we wish in the end."

Zou Guodong, who hadn't said much until now, finally spoke up.

He and Ning Weimin had already reached a consensus on this plan, and he was now taking the lead in making the final decision. "There is indeed no perfect, foolproof method at the moment. President Ning's move is a bit like 'using a scarecrow to scare birds,' and the effect is hard to say. But in the current environment, it is the best choice, better than doing nothing."

He is now the top person in the company, and with his words, he took full responsibility, leaving the person who had spoken earlier speechless.

However, Xiong Jianmin, who had always had a good personal relationship with Zou Guodong, frowned.

He is the CFO, and the company's financial expenses are directly related to his role.

So, in order to get to the bottom of things, he raised his objections, and in more detail.

"Mr. Zou, this is a protracted battle after all. Everyone knows that it's impossible to completely eliminate counterfeit goods. Even if the industry and commerce departments want to investigate, they can't cooperate with us unconditionally. To get people to really do their best, we have to spend money and give them tangible benefits. Especially the 'reward' that Mr. Ning mentioned, which could be a bottomless pit. What if countless people provide clues? Should we give them the money? And how much is the limit?"

However, Ning Weimin had already discussed the money issue with Zou Guodong.

Without the slightest hesitation, Zou Guodong immediately and decisively told Xiong Jianmin, "This money will definitely be spent! It's worth it to fight counterfeits. Although it's destined to come at a huge cost, it concerns the foundation of the company. I've decided that from now on, at least ten million yuan will be allocated from the profits every year specifically for fighting counterfeits! Depending on the situation, it can even be increased accordingly."

With these words from him, Xiong Jianmin knew that this matter was imperative.

He opened his mouth, but said nothing more.

However, this topic is not over yet.

At this point, Ning Weimin abruptly changed his tone, rejecting Xiong Jianmin's earlier suggestion of "lowering prices to gain market share" on the grounds that "fighting counterfeits requires incurring high costs."

"Given the additional expenses incurred by the company in combating counterfeits, I believe that in order to compensate for these expenses, we should not only not lower prices, but should actually raise them appropriately."

As soon as these words came out, everyone in the audience was shocked.

Before Xiong Jianmin, who had just suggested lowering prices, could voice his doubts, Ning Weimin held up two fingers and took the initiative to explain.

"First, although the Pierre Cardin brand will eventually return to a mid-range positioning as the market evolves, we currently firmly hold our place in the high-end market, and our brand positioning, established over many years, is deeply ingrained in consumers' minds. Therefore, we don't need to engage in cutthroat price wars with other brands for the time being, nor do we need to lower our standards and prematurely relinquish lock-in profits. The operational methods for high-end brands and mid-range products are different. If we appropriately raise prices, it will actually increase the brand's scarcity and attractiveness, highlighting our differentiation. People buy luxury goods not because they are useful, but because they are expensive; they possess inherent value. The higher the price, the more it reflects status. What we sell..." It's not a product, but a badge of honor signifying superiority, a social recommendation among the elite. Secondly, a lack of foresight leads to immediate problems. While counterfeit products are currently easily identifiable, in the long run, counterfeiting techniques will improve. Sooner or later, they will reach a level of 'counterfeit but not inferior.' We need money to continuously improve product quality and manufacturing processes, and we need substantial profits to continuously invest in upgrading anti-counterfeiting technologies and anti-counterfeiting methods. Ultimately, we must not only ensure that counterfeiters cannot imitate details such as fabrics and stitching, but also possess a unique anti-counterfeiting trademark system. Only by making it impossible for counterfeiters to catch up with us can we effectively protect brand interests.

After Ning Weimin's analysis, Xiong Jianmin was temporarily persuaded.

He fell into deep thought, calculating the profit margin after the price increase.

At this moment, Ning Weimin looked at the garment factory director who had just proposed "recruiting" him.

"The factory director just now wanted to solve the problem at its root, which is commendable. Moreover, he was not bound by conventional methods and proposed the ideas of 'recruiting' and 'bribing'."

These words seemed to carry a hint of appreciation, and just as the factory director was about to show a smug expression, Ning Weimin's tone suddenly turned serious.

"However, in my opinion, the factory manager is being a bit presumptuous. Your strategy is still flawed. As the brand owner, our interests and those of counterfeiters are inherently irreconcilable; it's a life-or-death relationship. If we try to recruit them, it's tantamount to aiding the enemy, or even encouraging them. This will make more and more counterfeiters think that as long as they keep targeting Pierre Cardin and counterfeiting, they can eventually be acquired and made money. That would be a huge problem."

The factory manager's smugness instantly froze on his face. His expression changed, and he realized that Ning Weimin was being sarcastic and had a hidden meaning in his words.

However, after figuring out the logic behind it, he was terrified and realized that he had almost made a huge mistake.

He quickly and humbly asked for advice, "President Ning's criticism is correct; I was confused. So, in your opinion, what should we do to address these root causes?"

Ning Weimin's lips curled into a cold, sharp smile as he slowly spoke.

“What we need to do is exactly the opposite. For all first-tier cities, we need to add the position of ‘market specialist’. But these people will not go to the market to check for counterfeit goods themselves, but will go to ‘make friends’ with the industrial and commercial inspection departments and the managers of the clothing market.”

He paused for a moment, then presented a solution that left everyone bewildered.

"As Mr. Zou just mentioned, we have a special fund for combating counterfeits. So, with this money, we can reach an agreement with law enforcement and management personnel. For every counterfeit item bearing the Pierre Cardin trademark that they find, regardless of what it is, we'll reward them with 50 cents. Note that it's 50 cents from each of them, or in other words, we'll reward anyone who contributes to the effort of seizing counterfeit goods. That means for every 100 counterfeit items destroyed, the company is willing to pay a 100 yuan bonus; for 1,000 items, 1,000 yuan; for 10,000 items, 10,000 yuan! And this reward is valid indefinitely!"

Ning Weimin looked around, his voice firm and resonant.

"We're going to outlast those counterfeiters and see who can afford to lose more! That way, all the market management personnel will become our people, and they'll directly supervise us for their own benefit. In time, those clothing vendors in the market will naturally back down. With so many fake designer brands, they can make money selling other things, why bother selling Pierre Cardin and inviting trouble? And once no one dares to stock fake Pierre Cardin goods, the upstream counterfeiters will naturally feel the pain of having no market and will stop producing. That's what we call—no demand, no supply!"

As soon as this plan was announced, the entire room fell silent for two seconds before erupting in heartfelt admiration.

"High! It's really high!"

"This is truly a radical solution!"

"Yes, yes, we can offer bonuses to turn regulators into our partners in the same interest group. This is a brilliant move!"

If the previous publicity campaign and price increase strategy were supplementary measures, then this method of using bonuses to urge inspections is a ruthless move that can produce immediate results.

Anyone can imagine that once this regulation is introduced, the morale of both the industry and commerce departments and the market authorities will definitely be different.

This suggestion, in particular, quickly received enthusiastic agreement and support from Zou Guodong.

Everyone realized that the company had really gone all out and was determined to fight counterfeits this time.

However, while everyone was showering praise on Zou Guodong and Ning Weimin, expressing their admiration for their courage and decisiveness, many people's attention involuntarily turned to the financial director, Xiong Jianmin.

Everyone was pondering the same question – was a budget of ten million enough to burn through?

How much hidden cost does the company have to pay to make this mechanism work and be implemented effectively?

Xiong Jianmin pushed up his glasses and looked at Zou Guodong and Ning Weimin's nonchalant expressions, and could only smile bitterly to himself.

These two ancestors are Nezha and Sun Wukong.

Why did they team up to give me a hard time without even saying a word beforehand?

It seems this year's financial statements are destined to be rather unattractive. (End of Chapter)