Volume 5: The Age of Storms Chapter 0764 Canton Fair
Nan Yi agreed to Matt's price of 1.32 million pounds. The situation was beyond his control and he had no choice but to agree.
The price of 1.32 million basically absorbed half of the water that Nan Yi had put in. Matt got the factory silk at a discount, and the price increase of mulberry silk was mostly wiped out. Nan Yi made a business deal that was not too surprising.
At this time, the Canton Fair was still a major hub for foreign trade. In many provinces, 80% to 90% or even all of their foreign trade orders came from the Canton Fair. This was especially true in the silk industry, as there had always been a dedicated silk venue at the Canton Fair.
However, silk has always been a unified purchase and sale. Although the silk products displayed in the venue come from various silk factories, the silk factories have no need and cannot send staff here. Naturally, they have no chance to bring those unplanned products here to sell.
As for snatching customers outside the venue, this is a feasible plan, but it requires the leadership team of the Chaosi Factory not to be afraid of being labeled. This label can be big or small, the personal risk is infinite, and the personal benefits of lucky success are very small. Mediocrity is like a continuous mountain, and radicals are hard to find.
After all, the country cannot just sit back and watch the silk rot in its warehouses if it does not purchase the unplanned products. In addition to the previous action of reducing the purchase volume, the country can only loosen up its control over the Chao Silk Factory slightly, and allow the Chao Silk Factory to find sales channels for its unplanned products on its own, provided that it does not destroy the good situation of silk exports.
The proportion of foreign exchange earned from silk remains high. Before the export of industrial products increases significantly, the policies of the silk industry are unlikely to be relaxed. The Chao Silk Factory has no export channels, and it is not easy for foreign businessmen to find the way to the Chao Silk Factory. This gives Yiwan International room to survive in the cracks, which is also the fundamental reason why Nan Yi can make a profit here.
Nan Yi makes money from poor information and channels.
After signing the contract, Nan Yi called Wu Shiqi and borrowed someone from Far East Trading for 30,000 pounds to complete the work under the order. Nan Yi was clear about the steps for delivery inspection, but he had never practiced it in practice. It was feared that something might go wrong, so it was better to cut a little and ask for help.
Of course, the main reason is that the meat is rotten in the pot, otherwise, let alone 30,000 pounds, even if it was 3,000 or 5,000, Nan Yi might not be willing to spend it.
After a successful start, Nan Yi assisted the other three in negotiating with their potential customers. Su Meng's customers required a small quantity and were the easiest to talk to. On the morning of the 14th, it took less than two hours to complete everything from negotiation to signing.
For the 4 million franc order, Yiwan International's gross profit margin is 21.6%, or 864,000 francs, or 540,000 yuan. However, Nan Yi will give Su Meng a commission based on the 1 million level to compensate her for the exchange rate.
Pan Wuju's client wanted a large quantity of goods, and the figure given by the client was at least 3 million pounds. However, this client was a medium-sized trading company with relatively complete staffing. It was very shrewd, and its implicit meaning was to give Yiwan International an introduction fee, and then bypass Yiwan International and connect directly with the Chaosi Factory.
Nan Yi agreed to the other party's idea of paying an introduction fee without hesitation. After some bargaining, the deal was settled at 60,000 pounds.
The other party is already determined to connect on their own, so the rest is just a matter of time. As long as you spend a little more time and effort, let alone 60,000 pounds, even if you don't spend a penny, the other party will be able to find the right way.
The 60,000 pounds that Pan Wuju earned came from the other party’s salary cost structure, as well as the saved travel costs and time costs.
Zhao Jun was quite disappointed. He contacted two potential clients and a potential client who might come to the Canton Fair. As a result, the potential client called politely to say that he had canceled his trip, while neither of the two potential clients called.
Su Meng and Pan Wuju sat in the coffee shop of Baiyun Hotel with Nan Yi in a happy mood, thinking about how to spend the commission after getting it.
Zhao Jun was restless, picking up the phone on the table from time to time to see if it had power. Every half an hour, he had to go to the hotel front desk to ask if the person he was waiting for had checked in. He was anxious. Su Meng and the other person already had orders and would get their commission soon, but what about him?
Happiness and hardship are revealed through comparison. At this moment, Zhao Jun felt that Su Meng and Pan Wuji were very happy, but he himself was enduring torment, repeated inquiries, repeated disappointments, waiting from seven in the morning until now six in the afternoon, and his hopes were crushed bit by bit.
Nan Yi held the newspaper in his hand and read it slowly. He did not open his mouth to comfort Zhao Jun. Verbal comfort was of no substantial help to Zhao Jun at this moment, nor could it bring relief. All he could do was to stay here and wait with Zhao Jun, at least until eight o'clock.
As time passed, Su Meng and Pan Wuji had already figured out a plan for how to allocate the commission. Xi Yue was also a little tired, and Wu Zang Miao coughed to remind the two that it was past the time for delivering the sacrifice.
However, the two people who got the advantage were too embarrassed to speak and could only continue to sit there bored.
At 7:47, Zhao Jun went to the front desk to inquire again, and returned to his seat listlessly. He said to Nan Yi, "Boss, I'm hungry. I don't want to wait any longer."
Nan Yi put away the newspaper and said, "Don't be discouraged, you just have bad luck. There will be plenty of opportunities in the future. Let's go and take you to eat something delicious."
The five words "bad luck" are simple but very fatal. If a person wants to succeed, he needs to choose the right path, work hard, and have luck.
Success is equal to 70% luck plus 25% choice plus 5% effort. If you know how to choose and persist in working hard, there is a great probability that you will become well-off. If you only know how to work hard but don't know how to choose, you can only barely fill your stomach in your life. Getting rich through hard work is originally a false proposition. The basis for its validity lies in the misinterpretation of the definition of "rich".
If you want to be a dragon among men, you can't do without good luck. Those who can stand at the top are those with great luck. Zhao Jun didn't meet any of the three clients. Nan Yi already suspected that he was an unlucky guy. He planned to observe him for a while. If he couldn't meet anyone after a while, he planned to change Zhao Jun's position.
It just so happened that after receiving all three sums of money, Yiwan International was going to change its business model. It would no longer poach employees, but would actively look for potential customers. The company's structure would also be fully built, and Zhao Jun would be assigned a position there.
Of course, this is just Nan Yi's subjective idea. Whether Zhao Jun will seek other opportunities at that time, we will have to wait and see. Those who are useful will not be abandoned, and those who want to leave will not be kept.
The delicious food sent away the night, and the next day, Nan Yi took the three of them to attend the Canton Fair.
For Chinese people, entering the Liuhua venue is more difficult than going abroad. The number of places is very limited. Only state-owned enterprises with flagship products in each province can participate. Private enterprises have no chance to participate at all, and representatives of participating companies must undergo political review.
If you want to enter the venue as a buyer, you have to be accompanied by a foreigner. Chinese people cannot enter alone, even if they can provide proof of service to foreign companies.
It was not difficult for Nan Yi to find a foreigner. After paying the entrance fee and getting the admission passes, Nan Yi and his four companions successfully entered the main venue.
Over the past 30 years, despite many ups and downs, the two annual Canton Fairs have never been interrupted. This year's Autumn Fair was much quieter than in previous years, with fewer buyers coming. In addition, for safety reasons, the security level of this Autumn Fair was strengthened. There were armed police holding 79 submachine guns at the door, and the atmosphere was inexplicably tense.
Nan Yi did not stay in the main venue for long. He was not engaged in foreign trade of all products. He came in just to see the sights. After staying for less than an hour, Nan Yi walked out of the venue alone and lingered outside.
There is nothing interesting inside the venue, but the excitement outside the venue is interesting.
The Canton Fair is a grand event for state-owned enterprises, but it does not mean that private enterprises are really not allowed to participate. Even if you cannot enter the venue, you can always go outside the venue. Outside the venue, there are many people walking around wearing awkward suits and with a big bag hanging around their necks. When they see foreigners, those who are good at speaking will go up to chat with them, while those who are not so good at speaking will fiddle with their products in an attempt to attract the foreigners' attention and make them stay.
Nan Yi saw a middle-aged man holding a lighter on a gas appliance and demonstrating it to a foreigner, speaking the word lighter in poor English. The foreigner seemed very interested and asked several questions in succession, but the middle-aged man who was selling the appliance had a confused and embarrassed .
This middle-aged man is called Mao Fangtai, and he is from Zixi, Ningbo. Zixi is an amazing place. In the 1950s, during the period of public-private partnership, the first social enterprise [township enterprise] was born there. It can be said that it is a place with a very strong business atmosphere.
Growing up in such a small town with a strong business atmosphere has subtly influenced Mao Fangtai, and she was also influenced by her father.
His father was a down-to-earth and hard-working man who worked as an accountant and business manager in the factory. In order to promote the factory's unsaleable products, his father traveled thousands of kilometers to promote them, which improved the factory's efficiency.
At the same time, his father was a very upright man. When friends and relatives asked his father for help in getting into the factory, his father refused.
The fact that he was not troubled by his family also deeply influenced Mao Fangtai. He hoped that he could achieve something like his father.
Mao Fangtai graduated from high school in 1961. In order to change the poverty in his hometown, he came to a collective enterprise and served as the chief accountant of the commune's comprehensive service department. In this position, his interpersonal and management skills were greatly improved.
In that era, the Internet was not well developed. In order to improve efficiency, Mao Fangtai, who had no sales experience, also joined the sales ranks. The conditions were difficult and tiring, but it also gave Mao Fangtai valuable life experience and laid a solid foundation for his later entrepreneurship.
After the reform and opening up, Mao Fangtai smelled the market and decided to start his own business. In 1985, the 45-year-old Mao Fangtai founded a radio factory, and his entrepreneurial journey officially started.
In 1986, due to changes in national policies, the black-and-white TV accessories produced by their factory were about to be abandoned by the market. This was a huge blow to him. Many employees chose to leave without saying goodbye in times of crisis, and even the deputy director who he had personally trained and trusted the most resigned.
At that time, Mao Fangtai was always hesitating about what to do next. Some people advised him to just run a small workshop and there was no need to expand the business. However, Mao Fangtai had a dream since he was a child to build a large family business.
A friend in need is a friend indeed. When employees were leaving one after another, Mao Fangtai's wife resolutely quit her stable job to help Mao Fangtai manage the factory, which also gave Mao Fangtai the courage and determination to find new products.
The ignition gun is the new product that Mao Fangtai has found. Previously, this product was only produced by Japanese, and almost the global supply chain was monopolized by them. But now it is not the case. Mao Fangtai also has his own ignition gun, and his ignition gun has a trick, a trick that foreign businessmen cannot refuse - it is cheap!
It is not shameful to rely on low-price dumping to initially expand the market. Germany and Japan both developed by imitation and price wars. What is really shameful is to regard cheapness as a magic weapon, a magic weapon that can be passed down for thousands of generations.
Seeing that Mao Fangtai was like an ant on the hot pot, Nan Yi kindly walked over and said, "The foreigner was speaking Spanish. He was asking you about the unit price and the production capacity of your factory."
Hearing Nan Yi's words, Mao Fangtai heard the sound of nature. He quickly said to Nan Yi, "Hello, comrade. My name is Mao Fangtai. I am the director of a radio factory in Zixi. Could you please help me translate? I can easily discuss the remuneration."
Nan Yi waved his hand and said, "There's no rush for the reward. You should reply first. The foreigner is getting a little impatient. Tell me when you've decided on the price in US dollars. I'll help you deal with it first."
Then Nan Yi said to the foreigner: "Hola, I'm Adam, he's Mao, I'll translate for you, do you want the price in dollars or pesetas?"
"Hola, this is Domingo, just tell me the dollar price, Adam, your Spanish is good, have you been to Spain?" Domingo replied.
"Yes, but I just passed through Seville on the way. The reason why I can speak so well is because I met a Spanish girl in Paris. She is a good girl, beautiful and generous, and also very enthusiastic."
Domingo has a big nose, a sallow complexion, and looks tired. He has one hand in his trouser pocket and scratches the inside of his thigh from time to time. Nan Yi subjectively judges that he has kidney deficiency and a fungal infection in a mysterious area, so he uses "women" as a starting point for the topic.
Domingo smiled knowingly and said, "All Spanish girls are passionate."
"Yes."
Nan Yi responded and immediately looked at Mao Fangtai who was obviously about to speak.
"Comrade, please help me talk to the foreign businessmen. As long as the quantity is more than 10,000, our ignition guns will only cost US$1.2, and if the quantity is more than 50,000, it will only cost US$1.1. If the quantity is larger, the price can be negotiated." Mao Fang Tai Nan Yi said.
“What about production capacity?”
"We can expand our production capacity at any time. With our current capabilities, we can produce 150,000 pieces a month without any problems."
Nan Yi could see that Mao Fangtai felt a little guilty when talking about production capacity. He estimated that the other party was still a small factory and should be able to produce 150,000 units, but not by relying on the capacity of its own factory. Instead, it would be achieved through OEM or by bringing people in to form an industrial chain model.
After thinking about it for a while, Nan Yi "artistically processed" Mao Fangtai's words and relayed them to Domingo.
"Adam, I hope to visit Mao's factory in a week."
"Of course, the city where Mao's factory is located is a beautiful city. I believe you will love it there. Domingo, are you staying at the Baiyun Hotel or the Huaguo Hotel? I can ask Mao to pick you up at the agreed time."
Without asking Mao Fangtai's opinion, Nan Yi agreed directly. The fact that he wanted to see the factory showed that Domingo was thinking of long-term cooperation with Mao Fangtai. No matter how shabby Mao Fangtai's factory was, he had to show it off this time, otherwise he would definitely not get the order.
"Room 501 of the China Hotel. Today is October 15th, China time. It would be convenient for me to travel on the 23rd or 24th." Domingo said after looking at the calendar on his watch.
"OK."
Domingo pointed to the exhibition hall and said, "I'm going to go inside to take a look. See you later."
"Hasta Luego."
After watching Domingo leave, Nan Yi turned to Mao Fangtai and said, "The foreigner is called Domingo. Judging from his appearance and accent, he should be Spanish. He will visit your factory on the 23rd or 24th. He will stay in room 501 of the hotel opposite."
The Huaguo Hotel is a supporting hotel for the Canton Fair Complex, and is located on the other side of Liuhua Road. Foreigners who come to attend the Canton Fair either stay here or at the Baiyun Hotel.
"Domingo, Room 501 of the Grand China Hotel?" Mao Fangtai confirmed.
"Yes, that's right." Nan Yi nodded and said, "Boss Mao, I wish you can get this client. I have to continue shopping. Bye."
"Hey, little brother, don't be in a hurry to leave." Mao Fangtai said, reaching into her pocket, taking out two hundred-yuan bills and handing them to Nan Yi, "I'm sorry for bothering you just now, take this money."
There were twist marks on both bills, the outer one was light, and the inner one was heavy. Mao Fangtai probably wanted to give one hundred at first, but then he hesitated and wanted Nan Yi to stay here as his translator, so he added another hundred. The one hundred became two hundred, and the reward became a deposit.
Nan Yi looked at the banknotes, waved his hand and said, "Forget about the money. I'm not a full-time translator. I'm actually here to find clients. Yangda University has a Spanish department, which is not far from here."
Nan Yi didn't explain it in detail, but he felt it was enough. If Mao Fangtai was a qualified businessman, he would definitely be able to understand this little bit.
After saying that, Nan Yi said goodbye and left without leaving his name.
In the morning, Nan Yi was wandering around outside the main stadium, and when he saw people having difficulty communicating, he would go up to help. Since they were all raised by their stepmothers and there was no competition between them, he would help whenever he could.
It is said that the domestic private economy really began to grow in 1992. In fact, this statement is not quite accurate. The top talents emerged at this point. The private economy became mainstream starting from 1998, when there were large -scale layoffs. In order to solve the employment problem and encourage entrepreneurship, the country vigorously supported private enterprises and also opened a path for access in areas that should not be open to private enterprises.
The dominant position of state-owned enterprises is determined by the political attributes of China. The opening up will be withdrawn sooner or later, and enterprises that are too deeply involved in people's livelihood cannot always be private enterprises.
Nan Yi inferred that a model similar to Temasek is likely to appear in China. First, the reins on private enterprises will be loosened, allowing them to grow wildly within certain rules. When they reach a certain stage, state-owned assets will enter these enterprises, obtain controlling rights [voice], and let the enterprises obey the overall interests of the country and take a path of economic development with Chinese characteristics, a path to common prosperity.
Therefore, the various businesses of the Reclamation Group were split and split again to become independent companies. That was why Nan Yi gave Ge Cuizhu a heads-up early on that the Reclamation Group was always ready to be incorporated by the state and join the national team.
