Save the Bachelor of Heaven

 Chapter 39013903【Industrial Cluster】

 In the following time, Qiu Yingjie took the merchants around Yiwu and let them see the current industrial level and development of Yiwu.

 In 1992, the fourth generation small commodity market in Yiwu was just completed. This is the first large-scale indoor market in Yiwu, with more than 15,000 stalls, mainly selling daily necessities, needle cotton, thread belts, shoes, buttons, glasses and other major categories of commodities.

Now that all the stalls have been rented out, vendors and customers who come to purchase and shop are crowded and crowded. It is quite lively. It can be said that the door is packed with guests.

This was an eye-opening experience for those merchants.

 At the same time, Xiang Nan was also discussing investment with Chen Jianghe.

“Brother Ji Feo, I’m going to invest in building a factory with you to produce clothes.” He told Chen Jianghe.

 At present, Chen Jianghe's garment factory has expanded from dozens of people to hundreds of people.

However, Xiang Nan still felt that this was too small. He planned to invest in the construction of a clothing factory that could accommodate 80,000 people and fully produce clothing.

By then, more than one billion pieces of clothing will be produced annually. Even if a piece of clothing only earns one yuan, it is a profit of more than one billion a year. Of course, if you create a brand, the profit will be more than that low.

 “How much do you want to invest?” Chen Jianghe asked curiously.

“Fifty million.” Xiang Nan extended his hand and said.

 Chen Jianghe and Luo Yuzhu were all frightened when they heard this.

 Their garment factory is considered a big one in Yiwu, with only 500 employees and an annual profit of only a few hundred thousand. Xiang Nan wanted to invest 50 million in one breath, which was really scary to them.

“This is only the first investment, and the subsequent investment is 450 million.” Xiang Nan then added.

“Isn’t that too much?” Chen Jianghe said in surprise, “Fifty million plus 450 million, isn’t that 500 million?”

 An investment of 50 million felt like too much to him, but he didn’t expect Xiang Nan to invest another 450 million. It was as if what he invested was not money, but paper.

"That's five hundred million." Xiang Nan nodded and said, "Brother Ji Feo, time waits for us not. You have time to go out and take a look. Construction is happening everywhere in the country now.

 Factories are opening one after another in Beijing, Hujiang, Guangzhou, and Zhenzhen. Now is the era of land encirclement. Whoever develops first will seize the opportunity, otherwise, he will always lag behind.

Let me ask you, if Yiwu had not withstood the pressure in the early 1980s and fought against all opinions to build a small commodity market and only started to develop it now, would it still be possible to go there? "

Chen Jianghe was stunned for a moment, then shook his head.

 Now with the popularity of the Yiwu small commodity market, a number of small commodity markets have emerged across the country, following the example of Yiwu.

 But because they started late, they are far behind Yiwu Small Commodity Market in terms of scale and passenger flow. Even the vendors in the small commodity market have to come to Yiwu to stock their goods.

 So if Yiwu wanted to build a small commodity market now, it would definitely not be as prosperous as it is now.

“The principle is the same.” Xiang Nan explained, “Now that we are becoming bigger and stronger and forming a scale, on the one hand, we will receive government support, and on the other hand, we can form an industrial cluster...”

“Industrial cluster?” Luo Yuzhu was a little confused.

"A series of industries surrounding the garment factory, such as textile factories, printing and dyeing factories, zipper factories, packaging factories, button factories, etc., will all gather here, which will create a scale effect." Xiang Nan explained, "In this way, if When merchants buy clothes, do they come directly to us?" Chen Jianghe and Luo Yuzhu both nodded.

Just like the Yiwu Small Commodity Market, when it comes to small commodities, everyone will first think of Yiwu. If you want to purchase goods, you should also come to Yiwu, because it is the largest store with the most complete products and more affordable prices.

 This is the effect of scale. If the Yiwu small commodity market was not so big, it would not have such a big impact at all.

"However, I'm worried that my ability is insufficient." Chen Jianghe added.

 He used to manage only a few hundred people at most. And to build a factory with 500 million yuan, how big would it be and how many people would it need to hire? When the time comes, he will have to take care of so many things that it feels overwhelming just thinking about it.

“So I invested 50 million in the first phase.” Xiang Nan said with a smile, “If you are confident, I will invest more. If you think the management is not good, then forget it.

 In fact, you don’t have to be afraid of anything. In my opinion, tens of thousands of people are even easier to manage than hundreds of people. Because the more people there are, the greater the power of the system.

 In the past, you used people to manage people, but in the future, you use systems to manage people. As long as you establish a good system, you don't even need to worry about management, there will naturally be systems to restrain it. Just like the Candy Gang back then, there were rules and everyone acted according to them. "

 Chen Jianghe nodded, "Okay, then I'll give it a try."

"I believe you can do it." Xiang Nan smiled.

 …

Subsequently, with Xiang Nan’s promotion, giants such as Procter & Gamble, Mars, ACA, and GAP were willing to invest in and build factories in Yiwu, or cooperate with local factories in Yiwu.

For example, Chen Jianghe’s Jianghe Garment Factory will cooperate with GAP and do OEM processing for them first. After accumulating experience, you can launch your own clothing brand.

So in the next two years, factories were being built everywhere in Yiwu, creating a lively and prosperous scene.

 During this period, Xiang Nan traveled between China and the United States many times and continued to broker cooperation between the two parties.

Thanks to his efforts, American sporting goods giants Nike, Reebok, Converse, New Balance, etc.; American home decoration giants Home Depot and Lowe's; hardware giants DuPont, Chuangke, and Stanley; and clothing giants Ralph Lauren and Mike Meyer. Many companies, such as Si and CK, come to Yiwu to invest and build factories, or ask Yiwu's factories to do processing.

 The cumulative investment and order volume has reached US$5 billion, which is quite gratifying.

The first phase of Chen Jianghe’s Jianghe Garment Factory has also been completed, covering an area of ​​75 acres, with five large workshops, 5,000 machines, and a total of 12,000 workers.

Chen Jianghe was originally worried that he would not be able to manage it, but after he built the factory and recruited all the people, he found that managing people was actually not as difficult as he thought.

 In the past, he and his wife Luo Yuzhu were in charge of hundreds of people and had to take care of everything themselves. Incoming goods, shipments, collections, payments, wages, personnel... there are so many things to be busy with, so busy that you can almost hit the back of your head with your feet.

 But now that the factory has as many as 10,000 employees, he is now idle.

 Because there are so many employees, it is impossible for him to manage them by himself. He can only manage them through the system. Under the system, he only needs to supervise the managers of various departments, such as the business department, sales department, human resources department, finance department, warehouse management department...

The number of people he has to manage has been reduced dozens of times, and everything has been taken over by relevant departments, so he has much fewer things to be responsible for.

He only needs to set the general direction of development and hand over the tasks. He does not need to do everything personally. Anyway, whoever fails to complete the task will be done by ruthless K when the time comes.

 Hence, he finally understood what Xiang Nan meant when he said, “The more people, the better the management.”