I want to be emperor

Chapter 900 Wang Liqing's Ambition
While Sun Xu and a group of mechanics were busy installing and debugging the equipment of the second branch factory every day, Wang Liqing, the boss of Anhua Textile Company, was also busy without touching the ground.

For several days in a row, I have been meeting or meeting with many business partners or potential partners, most of whom are distributors and customers in the sales channel.

With the continuous expansion of Anhua Textile Company, especially after the acquisition of Longdong Textile Company and its transformation into the second branch factory, the output of Anhua Textile Company's new cotton yarn continued to rise, and after the production capacity rose to a certain level, sales naturally fell. A corresponding challenge was encountered.

It’s not that the new cotton yarn cannot be sold. Now the new cotton yarn has only been available for more than two years, and it has quickly become the vane of the market due to its excellent quality and high cost performance. The downstream weaving factories have also followed the direction to purchase a large amount of new cotton yarn. Weaving cloth with higher cost performance.

Therefore, at present, the new cotton yarn is still in short supply.

As far as the entire cotton yarn market is concerned, it is currently in a period of alternation between old and new, and the market share of new cotton yarn is still rising rapidly.

Therefore, even if the production of Anhua Textile Company has greatly increased after the establishment of the second branch factory, the sales of this new type of cotton yarn still do not need to worry.

The problem is that cotton yarn is also divided into high-end and low-end, and the most profitable one is naturally not high-end cotton yarn. Although the cost is also high, the price is higher, and the per capita output value is higher when it is produced.

But the high-end market is also limited. After all, the mainstream of the cotton spinning market is still a large number of low-end and middle-end markets, and the high-end market is actually only a small market share.

In the past two years, almost all manufacturers of new cotton yarns have been producing high-end new cotton yarns in order to pursue profits. So many large-scale integrated textile companies, plus a group of independent cotton yarn manufacturers have all rushed to the high-end market.

Naturally, this high-end market is quickly saturated.

So this winter, new cotton yarn manufacturers have begun to enter the mid-end market.

And Anhua Textile Company is also facing the same situation. Relying on the sales channels created by Wang Liqing, especially the more than ten long-term strategic customers that have worked hard to finalize, their high-end cloth production capacity has basically been saturated... Even if it is They expanded production, and it is estimated that high-end cloth will not be sold... After all, the sales channels of high-end cloth for these customers are also limited.

When faced with competition, it is not possible to sell if you want to sell.

The downstream weaving manufacturers cannot continue to expand the market for high-end fabrics, and Anhua Textile Company, a midstream supplier, naturally cannot sell more high-end cotton yarn.

The high-end market is saturated!
Under such circumstances, Wang Liqing also started a transformation, acquired the bankrupt Longdong Textile Company and established it as the second branch factory mainly producing mid-end cotton yarns, continued to seize market share with new mid-end cotton yarns, and maintained a certain high profit. It was a decision made by Wang Liqing and several senior executives.

This decision was actually made in the summer. Although there was still room in the high-end market at that time, Wang Liqing and the others had already seen signs that the high-end market was about to be saturated, so they started preparations in advance.

The acquisition of Longdong Textile Co., Ltd. has expanded the land plant and hundreds of skilled workers. At the same time, the technical department has also studied the mid-end cotton yarn early to ensure a certain quality of cotton yarn while reducing production costs as much as possible to gain market competitiveness.

So until now, the second branch factory has been established!
As the boss of the entire company, Wang Liqing also started to open up the market for mid-end cotton yarns at the beginning of autumn. There is no mid-end cotton yarn produced in batches, only a few samples from the main factory for trial production, which are not convincing after all.

On the one hand, many partners signed the purchase contract in advance because of the strength of Anhua Textile Company and Wang Liqing's reputation, but there were also some partners who hoped to see the products, especially after seeing that the production line was put into production stably. The textile company signed a long-term strategic cooperation contract.

As for the sporadic sale, just find some buyers... In fact, you can make more money in a short period of time, but this is not Wang Liqing's style.

The output of Anhua Textile Co., Ltd. is huge. After the second branch factory is put into production in the future, its new cotton yarn production capacity can be regarded as No. 1 among independent cotton yarn manufacturers in Songjiang City, even if it is placed in the entire Songjiang Prefecture area. In the industry, including those comprehensive textile companies that produce and sell themselves, their production capacity of new cotton yarn can be regarded as the top three.

Such a huge output of new cotton yarn does not mean that it can be sold casually in the market... Without a long-term strategic partner, the business risk is too high, but if there is any fluctuation, then there will be problems in the sales channel, and if there is a problem in sales Then it will affect the operation of the entire company.

Once there is a problem in the operation and the production and sales fall, it is very likely that the cash flow of Anhua Textile Company will be broken, and it will be in big trouble at that time.

You must know that in order to continue to expand and seize market share, in the past two years, Wang Liqing has not only invested the factory's own profits in expanding the scale, but also obtained a large amount of loans from the bank.

After all, Wang Liqing's ambitions are quite big. What he wants to expand is not only the factory itself, but also the upstream cotton supply industry. In addition to acquiring a company specializing in overseas cotton yarn import trade, he also acquired cotton yarn from three different regions. The cooperative planting company has five large and small cotton yarn production bases in China. Except for a small part of these production bases that are planted by cotton companies themselves, most of these production bases actually sign long-term underwriting contracts with local cotton farmers to obtain stable cotton sources. .

This kind of cotton underwriting contract is actually a very heavy operating burden for the company. It is okay to have nothing to do at ordinary times, but once there is a problem with sales, it cannot be sold here, and the other side has to continue to spend money to purchase cotton from cotton farmers. The squeezed cash flow is very huge, and a little bit of it will lead to bankruptcy.

Although the cotton cooperative planting company seems to be playing a very low-end agricultural industry, in fact this thing is a serious capital-intensive industry, and it is impossible to continue without a lot of money in hand.

This situation is very similar to the raw silk industry. In the domestic raw silk industry, those nest silk factories have to purchase a large number of silkworm cocoons every year, and silkworm cocoons are rarely produced on a large scale at present, and family silkworm farmers are generally responsible. host.

In order to ensure the supply of their own silkworm cocoons, those nest silk factories often set up corresponding subsidiaries or cooperate with corresponding companies. These companies will reach exclusive sales agreements with the majority of silkworm farmers for several years. The cocoons raised by silkworm farmers can only be sold For them, the price is relatively fixed and only fluctuates slightly.

And silkworm cocoons are expensive... Many large nest silk factories spend hundreds of thousands or even millions of dollars on purchasing silkworm cocoons every year.

At the same time, silkworm cocoons are not produced stably throughout the year, but maturely produced at a certain period of time, which means that at a certain period of time every year, nest silk factories or related silkworm cocoon trading companies need to produce a large number of silkworm cocoons. Funds are used to acquire silkworm cocoons.

Then slowly process the silkworm cocoons into raw silk within a year, and finally sell them and slowly return the funds... This means that the funds occupied by raw materials will be very large.

There's not enough money in hand, whether it's your own or a loan...you can't play without a lot of cash.

Although the capital intensity of the cotton spinning industry is not as extreme as that of the raw silk industry, it is similar in the field of cotton yarn... Cotton farmers buy cotton in autumn and sell it to you for money, but you want to sell the cotton Or produce it as cotton yarn and then sell it. This is a long-lasting thing, which puts a lot of pressure on funds.

Why was Wang Liqing able to acquire three domestic cotton yarn cooperative planting companies? It was because the three cotton yarn companies boasted too much, but their sales did not keep up. Eventually, their cash flow broke down, they fell into operational difficulties, and they had to sell them in the end. .

It is the trading company engaged in cotton import trade. This company is not a poorly managed company. On the contrary, it is doing very well. It has a very stable source of cotton in the Americas. It is profitable to transport cotton back to China. Not too high.

After all, the price of cotton yarn, a bulk material, is actually very transparent. It is almost impossible to make a lot of money just by being a second-hand dealer... After all, everyone is not stupid.

But these problems are not a problem for Wang Liqing, because Wang Liqing's Anhua Textile Company itself is a major consumer of cotton and consumes a large amount of cotton every year.

Wang Liqing bought these three cotton planting companies and a cotton import trading company, not to make a lot of money in the cotton business, but to ensure that his own cotton supply is not a problem, and at the same time reduce the cost of raw material procurement.

To put it bluntly, we do not expect these raw material supply subsidiaries to make money, but the spinning factories that make money.

However, this series of acquisitions, especially the three companies that can be regarded as capital-intensive cotton cooperative planting companies, required a lot of funds, and they found a lot of bank loans for this.

The establishment of a raw material supply system, coupled with the continuous expansion of the cotton yarn factory, requires a lot of capital. Because of this, Anhua Textile Company has a lot of debts, and it also pays more attention to the stability of cash flow.

It also needs some strategic partners who can purchase for a long time. Even if they make some concessions in terms of profits, Wang Liqing is willing to sign a long-term cooperation contract with these strategic partners who purchase for a long time.

It's just that long-term strategic partners are not so easy to find.

The downstream weaving manufacturers are also afraid that there will be some problems in your Anhua Textile Company one day, which will cause problems in their cotton yarn supply.

This kind of thing requires mutual trust between the two parties, not something that you can have if you want to have it unilaterally.

For this reason, Wang Liqing has been running around in the past one or two months. Relying on Anhua Textile Company and the stable goodwill he has established in the past 20 years, he has finalized some cooperative manufacturers, but the purchase amount of the contract is not much. , even less than half of the expected total output of the second branch factory.

So he has to continue working hard to find as many strategic partners as possible!
Before that, these new mid-end cotton yarn production capacity that did not find a long-term strategic partner needed other channels to sell.

At this time, the original sales channels of Longdong Textile Company have shown their value. Although the sales channels of Longdong Textile Company are not available to some extent, the downstream channels are all small weaving factories. , even some family workshops, and some retail channels for cotton yarn... that is, they sell cotton yarn directly to wholesalers, who then sell it to retailers, and retailers sell it to farmers in vast rural areas.

In contemporary times, in many places, especially in some remote rural areas where the economy is not very developed, there is still a typical small-scale peasant economy, that is, self-cultivation and self-weaving. Many farmers even grow cotton by themselves...and then directly Spinning and weaving.

Anyway, the hand-spinning machines that appeared during the Unification War and were widely spread across the country are actually quite efficient (Jenny looms), and the hand-looms in some family workshops are also very efficient.

In some remote areas with inconvenient transportation, high cost of external commodity input, and backward industrial development, this kind of family workshop textile industry still exists widely.

So don’t think that even a new generation of new cotton yarn was produced in the Great Chu Empire, and then all other cotton spinning production modes were eliminated in an instant. High-pressure steam engines have been in the cotton spinning industry for more than ten years, but there are still many water-powered textile factories, and there are still a large number of family workshops using manual spinning machines and manual looms.

The production efficiency of the three generations of cotton spinning production technology seems to be very different, but it actually existed in the Great Chu Empire at the same time.

After all, the Great Chu Empire is too big...the population is too large. Although trains and ships have appeared for more than ten years, and large-scale industrialized cities have even appeared in cities along the eastern coast along the river, there are still many places without trains. There is no ship, and its mode of transportation still relies on the original land horse-drawn carriage or even shoulder-to-hand.

Not all places have the sound of machines roaring, and many remote rural areas still maintain a relatively backward situation.

In these remote and backward rural areas, the small-scale peasant economic model is still the mainstream economic model, and there is actually no market for external industrial commodities in these places... For example, cloth, regardless of the price of your cloth, the local farmers just don’t care about it. Sell... because it doesn't matter how low your cloth price is.

They still prefer to grow cotton in the corners of Tiantou Mountain by themselves, and then spin and weave cloth by themselves, and sew it by hand...even the spinning machines and looms are basically made by local craftsmen. The living space of the alien machinery factory.

The only thing that can have a better sales space is all kinds of iron products, such as farm tools, kitchen utensils, daily hardware and the like.

This is not to say that these farmers don't know the benefits of industrial commodities. They actually want to wear those bright colors that don't fade, soft and comfortable cloth... The problem is that they can't afford it or are reluctant to buy it.

For farmers in remote and backward areas who lack other sources of economic income and have no job opportunities, their sources of income are actually very limited, and their disposable money is even more limited, so they can save as much as they can in many aspects...even if they pay for it. More labor hours seem like a bad deal to many urbanites.

Many urbanites think that if they go to work in a factory casually, they can earn two or three yuan a month, which is enough for food and clothing.

But for people in remote rural areas, a cash income of two or three yuan a month is an extravagant expectation... Many remote rural families can't even afford the tuition fees and book fees for their children to go to elementary school, which is only more than one yuan a year.

The development of the contemporary Great Chu Empire is unbalanced... On the one hand, there are big bosses in a super big city like Songjiang City, whose assets can be tens of millions or even tens of millions, and there are big bosses like Sun Xu whose salary income is thousands or even thousands income group.

But on the other hand, in Songjiang City, there are still a large group of low-level workers who can only earn three or four yuan a month, and are barely able to get enough food and clothing. There are also farmers in the vast remote and backward rural areas, whose economic conditions are even more backward.

The existence of these situations has also led to the simultaneous existence of the hand textile industry, hydrodynamic textile industry, and steam textile industry in the cotton spinning industry.

Both good and bad, this situation has actually given many cotton yarn manufacturers a new sales channel, that is, in addition to supplying medium and large weaving factories in cities, they can also supply small weaving factories in rural areas. Cotton yarn of good quality and cheap was supplied by home workshops.

You can even buy cotton yarn directly in rural areas. Many farmers in rural areas will not grow cotton and spin yarn themselves, but will buy high-quality and cheap cotton yarn produced by large factories from retailers in towns and towns, and then weave it by themselves. Cloth is used, and some are purchased from cotton yarn to weave cloth, and then sold to those cloth purchase merchants, earning a small amount of hard money.

The original sales channel of Longdong Textile Company is aimed at the township market.

In this area, in fact, Wang Liqing didn't have much contact with him before. After all, although his Anhua Textile Company didn't make a lot of money in the past, its operation was fairly stable, and it basically supplied goods to weaving manufacturers or small and medium-sized enterprises in surrounding cities. A comprehensive textile company basically does not sell loosely.

But now, Wang Liqing felt that in addition to supplying large quantities of goods to large manufacturers, it is also a very feasible way to use the original sales channels of Longdong Textile Company to expand the sales channels in the county and town markets.

After all, the cotton spinning industry is too big. The cotton spinning industry in big cities seems to be booming and lively, and there are many big companies.

But in fact, when it comes to the overall output... In fact, the small textile companies and family workshops in the vast counties and towns are the real giants.

In fact, most of the market of a giant like Su Qin Textile Company is limited to medium and large cities with convenient transportation, and even in these cities, the market share is very small... The reason why Su Qin Textile Company became a giant The reason is that although the share of their products in various places is not good, they are sold all over the country... A little market share here, a little market share there... The market sales of all parts of the country add up, that is an incomparably huge The numbers are up.

Although Su Qin Textile Company is a giant, there are not many such large textile companies in the country.

However, the number of small cotton spinning factories and even family workshops rooted in counties and towns is enormous...Even the imperial officials don't know how many cotton spinning factories there are in the counties and towns...because many small cotton spinning factories are based on The family workshop mode exists, too complicated and messy.

Even the tax department, which has always been extremely powerful, finds it difficult to figure out the number and scale of these family workshops and collect taxes smoothly.

Family workshops actually exist in large numbers in all walks of life, and there are situations where management is difficult and tax collection is even more difficult.

But it is undeniable that the family workshop played a certain role in the economic system of the Great Chu Empire, providing employment in counties and towns, and activating the economy.

This is also the reason why the top management of the empire still turns a blind eye to the fact that there are many problems in the existing family workshop economic model, even when it is difficult to collect taxes.

This is the same as sweet potatoes. Everyone knows that sweet potatoes cannot be eaten every day, which will lead to malnutrition...but it is better than starving.

So even now, small and micro factories and family workshops are still an important part of the economy of counties and towns in the Great Chu Empire.

Based on this situation, Wang Liqing believes that the county and town markets are promising!
(End of this chapter)