Chapter 196 [Savage Competition] (Ask a monthly pass!)
Tsuen Wan is located in the New Territories. It was called Repulse Bay in ancient times. It is said that it was named after the shallow water of the bay.
Tsuen Wan will become the first new town on Hong Kong Island in accordance with the historical trend.
In 1898, Tsuen Wan had a population of about 3,000 people, but the villages to which they belonged had family temples and ancestral halls, and local residents mostly planted rice, pineapple, and sweet potatoes.
Before the Second World War, the development of Tsuen Wan District was still very slow.
But in the early 1950s, PG Zipper took the lead in investing in nearby Texaco Road in Tsuen Wan. Starting with 150 acres of land to build the world's largest zipper factory, a large number of mainlanders poured into Tsuen Wan, introducing capital, technology and cheap labor to open factories.
A variety of manufacturing industries have been opened in the vicinity of Texaco Road, Yang Uk Road and Chai Wan Kok.
Investors came in an endless stream. Many people saw Wu Guangyao inspecting land in Tsuen Wan, and then followed closely.
Because it is close to Kowloon, the traffic is fairly convenient;
In terms of electricity, the current high-altitude installation is used, unlike many places in Kowloon and the island, which are all submarine cables.
As for playing, not to mention that people in this era are busy, so they are in the mood to take a leisurely trip; but there are also places to play in Tsuen Wan, strolling on the adjacent beach, listening to the waves, and admiring the quiet side of Tsuen Wan. Those who are adventurous can choose to go hiking on Tai Mo Shan, overlooking the charming scenery of Tsuen Wan and Kowloon from the top of the hill.
Tsuen Wan Super Zipper Factory, after one year and seven months of planning and construction, it was finally completed and renovated.
There are a total of 6 5-storey industrial plants, 1 R&D building and 1 administrative building in the entire plant area.
The usable area of each floor of the industrial plant is close to 5,000 square meters, so it is a total of 150,000 square meters of production workshops.
Wu Guangyao and his wife Lin Yueru came to the Tsuen Wan zipper factory, accompanied by a group of executives.
"Mr. Wu and Dong Lin, all the machinery has been installed and passed the inspection, and construction can be started at any time." Wang Qiang said.
PG Zipper Company has been restructured. According to the western company management system, Wu Guangyao takes the position of president, Lin Yueruling is the director, and Li Bing and Wang Qiang take the position of vice president.
Although the historical development of Hong Kong Island is not like this, Wu Guangyao comes from later generations, so he naturally has to take the lead in reforming, and he will not abide by the old rules of Hong Kong Island.
As long as it is an advanced system, Wu Guangyao will take the lead in implementing it, regardless of others' discussions.
Even if Wu Guangyao feels that the term ‘boss’ is a bit of a low grade, he now has to adapt a group of managers to the Western system and call himself ‘Mr. Wu’.
Into the production workshop, all kinds of automatic zipper machines are neatly and evenly arranged in the workshop.
The first batch of automatic zipper machines reached 300 units, and nearly a thousand automatic zipper machines will be shipped to Hong Kong one after another.
These zipper machines are not all the previous styles, there are also many styles of automatic zipper machines, some of which only produce special zippers.
Previous zippers are mostly used in clothing, and an automatic zipper machine can solve all of them;
Now the use of zippers has increased a lot, such as bags, tents, boots, raincoats, car and boat covers, etc., so many special automatic zipper machines will be developed.
In addition to 300 automatic zipper machines, there are thousands of other large and small machines, which can be described as a truly modern factory.
Although there are so many machines, labor is still necessary, and much more.
That's because the production efficiency of a machine is about 240 times that of the previous manual work, and the manual work must naturally ensure the logistics work of the machine.
"President Li, let's recruit people! Let's recruit 2,000 people first. This factory is up and running. Don't let it sit idle!" Wu Guangyao said boldly after visiting for 1 hour.
"However, our market is not so big yet. Will it be a bit wasteful to recruit so many people?" Li Bing said cautiously. Although Wu Guangyao is the soul of PG Zipper, this decision is obviously a bit reckless.
The demand for zippers in the United States is growing rapidly, but because YKK zippers have been mixing up and digging into the corners of PG zippers, the growth rate of PG zippers in the American market is not fast.
Of course, Dongying’s market has increased, but in general, there is a shortage of production. There is no need to recruit so many people at once.
Wu Guangyao turned his head and saw that the executives and middle-level managers were basically there, and then spoke out the decision in his heart.
"Have you ever thought about grabbing the market first, knocking down your opponents, and then seeking price increases in order to obtain substantial profits?"
The inspiration for this method, Wu Guangyao learned from the routines of later generations of Dongying people!
After the 1960s, merchants in general countries and regions have difficulty competing with merchants in the East;
Dongying merchants generally set the product price at the cost price, so that they must first defeat their opponents, and they will definitely lose money if they want to fight with them.
After and other rival companies closed down, or were acquired by Dongying merchants, Dongying merchants immediately increased the prices significantly, and then sought huge profits.
This kind of business method is very powerful, and it cannot be resisted by ordinary people!
For example, Zhou Wenxuan, the later "doll noodle king", was defeated by Dongying Nissin Company in this way, and then acquired by Dongying Nissin Company.
After the acquisition of Nissin, it saw no rivals, so it increased the price of instant noodles.
Also, Dongying’s construction industry is bidding abroad, and it will work together with the enemy to bid together, and it will win!
After listening to Wu Guangyao’s method, the management did not directly express their opinions, but began to meditate!
"Mr. Wu, the cost of our zipper can be stabilized at 1.1 cents, while the cost of Dongying YKK zipper should be 1.5 cents. Everyone uses a combination of agents and direct sales. If we want to fight a price war, drag If YKK collapses, it won’t be a loss, and there is still about 20% of profits. Only in terms of pricing, we need to organize a capable cost department and finance department, and make sure that YKK zipper has no room to fight back.” In the end, Li Bing took the lead in affirming Wu Guangyao’s plan was adopted.
Then more and more executives began to agree. Obviously everyone felt that if this continues, YKK Zipper will sooner or later steal the PG Zipper in the American market. It is better to have a big battle to defeat the enemy.
"The goal this time is to defeat YKK zippers and prevent the construction of their Kurobe Super Factory. As long as we delay for two to three years, our subsequent nylon zippers will continue to crush all zipper factories in the world. There is also the United States. If the price drops sharply, then we also need to lower the prices in other places appropriately. It can be regarded as a reassurance for those customers! Mr. Li, I will leave it to you to calculate the pricing, and it must be accurate," Wu Guangyao said in the end.
"Yes, I will be accurate to a few tenths of a cent."
Next, it can be imagined that the Tsuen Wan Super Zipper Factory is going to be very lively, and it will increase to 5,000 workers within a year.
(End of this chapter)