In Shuchang, there aren't many who dare to compete with Bosideng anymore.
Gu Zhaoxi is one of them, glorious even in defeat!
"Boss Gu, come, let's talk."
Wang Yi was very satisfied with the factory.
Gu Zhaoxi's face lit up:
"Chairman Wang, let's chat in the office!"
"Alright!"
The two came to the office.
Although Gu Zhaoxi was the factory director, his office was also very ordinary.
The interior decor was as simple as he was.
A typical doer.
Just like Bingyun Down Jackets, it had substance, but lacked packaging!
Such honest people are prone to suffer heavy losses in this day and age.
"Boss Gu, I see you're also a straightforward person, so let's not beat around the bush and talk price directly. Currently, I'm in contact with several factories, and I'm quite optimistic about your Bingyun. If the price is right, we can sign today!"
Right off the bat, Wang Yi threw out the biggest temptation — signing today!
Whether they wanted to sell a house or a factory, no one could resist those four words.
They really couldn't resist.
Especially factories that had been losing money for a long time, they couldn't resist even more.
As expected, Gu Zhaoxi was thrilled:
"Chairman Wang, are you serious?"
Wang Yi spread his hands:
"As long as the price is right, we'll finalize it today! The funds will be in your account tomorrow!"
"But if the price isn't right, I'll go check out the next one in a bit."
Wang Yi said nonchalantly, as if acquiring a factory was like buying a piece of furniture.
If this one wasn't suitable, then directly to the next one!
But Gu Zhaoxi didn't find it inappropriate; instead, he admired Wang Yi even more.
When acquiring a multi-million-level garment factory, other bosses would be cautious and hesitate repeatedly.
But for someone of Chairman Wang's wealth, wasn't it just like buying furniture?
No different!
"Chairman Wang, our price is right, absolutely right!"
Gu Zhaoxi took a deep breath, unable to suppress his excitement.
There was no way around it; down jacket factories were too difficult to sell.
Even if his factory was large enough and the workmanship good enough, it was useless.
In Shuchang City, they lacked everything else, but certainly not down jacket factories!
They were everywhere.
If he didn't sell today, there would be plenty more wanting to sell later.
One general rises while ten thousand bones decay.
Any industry is like this.
As Bosideng grew, the other brands in Shuchang City withered.
They either went bankrupt or became OEM factories for Bosideng and its sub-brands.
Brands like Bingjie, Xuezhongfei, and Kangbo were also sub-brands of Bosideng.
Even Gu Zhaoxi's Bingyun Down Jackets were almost acquired by Bosideng.
It was just that the price couldn't be agreed upon in the end.
Gu Zhaoxi wanted 12 million, but Bosideng was only willing to offer 8 million at most.
If the difference in price between the two sides wasn't significant, there would still be room for negotiation.
However, with a difference of one-third, there was nothing to discuss.
"Chairman Wang, you know about our previous acquisition talks with Bosideng. Now that you're here today, I'll show my sincerity: 11 million, factory + equipment + 500,000 worth of finished products and materials, all for just 11 million."
Currently, Bingyun Garment Factory was still in production, so there were some down jacket products and some raw materials.
"Finished products?"
Wang Yi frowned slightly.
If they were labeled with the Bingyun Down Jackets trademark, they would be worthless.
Zhenyou and Meiyou couldn't possibly sell Bingyun Down Jackets; it would damage their brand reputation.
Gu Zhaoxi's expression changed slightly, and he quickly said:
"Don't worry, Chairman Wang, those finished products haven't been labeled with trademarks. You can put your own trademarks on them and sell them directly. The quality is first-rate, the down content is 90%, and the styles are no worse than Bosideng. Chairman Wang, you just saw them."
"They're passable."
Wang Yi pursed his lips, not finding them particularly attractive.
Bingyun's styles were indeed similar to Bosideng's, both being favorites of grandparents.
That's right, Bosideng down jackets of this era didn't have outstanding designs and hadn't yet ventured into high-end, they were all favorites of the elders.
Fashionable young people would hardly value them.
It wasn't just Bosideng; down jackets in 2011 weren't good-looking in general.
This was also Wang Yi's advantage!
Using down jacket designs from ten years later to dimensionally crush current designs.
Plus the brands Meiyou and Zhenyou, with extraordinary quality, to compete with Bosideng and Canada Goose!
The down jackets produced by Bingyun were of good quality.
Wang Yi could sell them after the acquisition, but they had to be differentiated based on material.
The three most important indicators for down jackets are fill power, down content, and material.
Down content refers to the percentage of down in a down jacket.
The higher the down content, the better the warmth retention of the down jacket.
Given similar fill power, a 90% down content provides better warmth than 70%.
Down content below 50% cannot be considered a down jacket but rather a padded jacket or similar.
Fill power refers to the total weight of down filling in a down jacket.
The higher the fill power, the thicker the down jacket, and the better its warmth retention.
These two indicators collectively determine the warmth retention of a down jacket.
As for material, it is divided into goose down, white duck down, and grey duck down.
Among them, grey duck down is the lowest quality, and goose down is the best.
These Bingyun down jackets, made of duck down, could be sold under the Meiyou brand.
90% grey duck down, under 100g, were lightweight down jackets, Meiyou 399-499.
100-150g, Meiyou 499-799.
150g-200g, Meiyou 799-999.
For 90% white duck down, add another hundred yuan to the same price range!
And 90% goose down, all to be sold under the Zhenyou brand.
Under 100g, Zhenyou 1099-1299.
100-150g, Zhenyou 1299-1599.
150g-200g, Zhenyou 1599-1999.
Zhenyou is, after all, a light luxury brand; even if it sells slowly, it cannot be sold cheaply.
Of course, the more attractive styles designed by Wang Yi would be the main products for Meiyou and Zhenyou, and their prices would also be higher.
Just like the "pure desire" style, these were still styles from ten years later, completely outperforming current designs.
Still copying himself, for one original design, Wang Yi had already asked the design department to slightly modify it into thirty styles, then select the best ten for Zhenyou, and ten mid-range ones for Meiyou!
This way, Wang Yi had sixty new styles from three original designs.
"General Gu, 11 million is too expensive. 9 million, and we can sign now."
Wang Yi picked up his teacup and took a sip.
Bingyun Garment Factory was very large, even larger than Qiuyun Garment Factory before its initial expansion, with daily production at full capacity reaching 20,000 pieces!
There was no way around it; the complexity and difficulty of producing down jackets were much slower than for "pure desire" style dresses.
Gu Zhaoxi frowned, finding it somewhat unacceptable:
"Chairman Wang, I really can't give that price. Even 10 million, I might grit my teeth and consider. But 9 million, I truly can't sell it for that."
Gu Zhaoxi was an honest man, and Wang Yi understood that the value of this factory was no less than that of Qiuyun Garment Factory.
10 million was a reasonable price.
But qualified businessmen were still accustomed to win-win situations.
Wang Yi dipped his finger in water and wrote on the table: "900+100=1000!"
Gu Zhaoxi stared at the numbers for a while, still unable to guess Wang Yi's meaning, so he could only ask:
"Chairman Wang, please forgive my ignorance, I don't see the deeper meaning here?"
Wang Yi didn't answer directly, instead changing the subject:
"Boss Gu, what do you plan to do after selling the factory? Continue starting businesses?"
Gu Zhaoxi thought for a moment, then sighed:
"No, no more. The more I start, the poorer I get. If it weren't for the demolition of my old home, I would have gone bankrupt long ago. After selling the factory, I'll probably use the money to buy a house, and then find a job!"
Wang Yi smiled:
"That's perfect. I'll take this factory for 9 million. But I'll give you an annual salary of 300,000 to be the director of another one of my factories!"
Over in Pinghu, he also needed to acquire a factory to serve as the Meiyou Down Jacket factory.
Although the workmanship in Pinghu was considered first-class, it was still far behind Bingyun and Bosideng.
At most, it was on the same level as Bingjie and Xuezhongfei.
And Gu Zhaoxi was good at overseeing workmanship and quality; Bingyun Down Jackets were built by him.
Therefore, Wang Yi intended to keep Gu Zhaoxi and have him become the director of the Pinghu Meiyou Down Jacket Factory, to bring the workmanship and quality there up to Bosideng's level.
As for the Bingyun Down Jacket Factory, it could be handed over to manager Qi Hui.
Chen Chuanqing had also thoroughly investigated Qi Hui's background, and she was also a top-notch talent.
Wang Yi would definitely keep her; with her, the Bingyun Down Jacket Factory would only get better.
As for why Gu Zhaoxi wouldn't continue to be in charge of the Bingyun Down Jacket Factory?
Naturally, one must guard against others.
The entire Bingyun Down Jacket Factory, from top to bottom, was built by Gu Zhaoxi, and they were all his people.
If Wang Yi kept him as the factory director, wouldn't that be asking for trouble?
If Gu Zhaoxi were to cause problems, Wang Yi wouldn't even be able to detect them.
But Qi Hui was different; there was still a group of people in the Bingyun factory competing with Qi Hui for the general manager position.
As long as the two sides didn't unite, Wang Yi would be secure.
Subordinates should not be too united, otherwise, Wang Yi wouldn't be able to sleep soundly.
"An annual salary of 300,000!"
Gu Zhaoxi was excited.
He had invested 13 million into Bingyun Down Jackets over time, but only got 9 million back in the end.
A complete loss.
But Gu Zhaoxi was still young; he couldn't just live off his savings, could he?
Wang Yi offered him a position as factory director at another factory, with an annual salary of 300,000.
Most people couldn't refuse such treatment.
After all, 2011 had just experienced the 2008 financial crisis, and wages had not yet skyrocketed!
An annual salary of 300,000 was truly a lot.
"Boss, I accept!"
Gu Zhaoxi immediately agreed.
Now he was losing a million, but gaining a job with an annual salary of 300,000.
More importantly, working with Wang Yi and Meiyou meant a limitless future!
Wang Yi smiled:
"Aren't you afraid I'll trick you and lay you off after a year?"
Gu Zhaoxi waved his hand:
"Chairman Wang isn't that kind of person; it's not worth it for him to trick me for a few hundred thousand."
"Haha."
Wang Yi laughed heartily:
"Good, then it's settled. First, sign the contract, then pack up your things. Once the handover here is complete, you'll take up your post at the new factory. Don't disappoint me!"
"Don't worry, Boss. I will give it my all! The failure of Bingyun is a personal痛 for me. Now, joining Meiyou gives me a chance to redeem myself. I will achieve great results and take on Bosideng!"
"Good, very good!"
Wang Yi nodded in satisfaction:
"Your mission is to take on Bosideng!"
As for Bosideng, just use Meiyou to fight them.
Zhenyou is a light luxury brand; competing with Bosideng would easily lower its grade and make it seem cheap.
"By the way, what do you think of Qi Hui?"
Wang Yi changed the subject.
Gu Zhaoxi thought for a moment, then slowly began:
"Manager Qi is a... very capable manager. She's exceptionally skilled, responsible, and a very good manager, suitable for factory management. However, she's not suited for entrepreneurship; she lacks the boldness. She doesn't like to take on too much risk in her work. If the risk is too great, she'll even back down. But this has both pros and cons..."
Wang Yi nodded, having made up his mind.
Highly capable, responsible, yet unwilling to take risks...
Such a person is not suitable for entrepreneurship but is suitable for being a factory director.
In terms of risk control, she's definitely a top hand.
No problem with this person being the Zhenyou factory director!
The lawyers drafted the contract, both parties signed, and then the handover process began.
From then on, Bingyun Down Jacket Factory completely belonged to Wang Yi.
Afterward, Wang Yi sought out Qi Hui.
"Chairman Wang, you called for me."
Qi Hui was poised and elegant.
"Let me ask you a question. After I acquire Bingyun, I plan to make Zhenyou down jackets. In your opinion, should we cut men's down jackets and only make women's? Or keep men's down jackets?"
Wang Yi intended to test Qi Hui.
Qi Hui thought for a moment:
"There are pros and cons to each. If we keep men's down jackets, Zhenyou would simultaneously expand into the men's market, increasing its user base. If we cut men's down jackets, Zhenyou can maintain its current positioning as a women's brand and strive to become the number one brand for women!"
"Well said. If it were you, how would you choose? You can't have your cake and eat it too,"
Wang Yi said with a smile.
He was also considering this question.
Currently, Meiyou and Zhenyou mainly target the women's market, profiting handsomely from the "pink economy."
Bingyun Down Jackets, on the other hand, primarily featured women's down jackets, with a small number of men's down jackets.
So, should Zhenyou and Meiyou expand into the men's market next?
Or should a completely new men's brand be launched later?
Qi Hui's delicate brows furrowed; this time, she thought much more deeply:
"Chairman Wang, launching men's apparel might gain more customers and revenue, but it might also lose the exclusive female base. After all, Zhenyou and Meiyou both started with the Meiyou APP, and their initial positioning was for female users."
Qi Hui elaborated:
"Suddenly expanding into the men's market now might make us appear neither here nor there. If it were me, I wouldn't want to take that risk. Instead, I would launch a new men's brand or a comprehensive brand later!"
Wang Yi nodded:
"Indeed, this is your personality, but I am quite satisfied with this answer. From now on, the Bingyun Garment Factory will be under your management. Don't disappoint me!"
"Thank you for your trust, Boss, I will certainly satisfy you!"
Qi Hui's face lit up.
She had been at Bingyun for two years, diligent and making countless contributions, but had never reached the position of general manager.
Now that Wang Yi had acquired Bingyun, she suddenly became the factory director!
It was truly a meteoric rise, very lucky indeed.
But Qi Hui didn't know that this wasn't luck, but her ability and previous dedication.
Chen Chuanqing had also investigated her competitor, Manager Cao.
Cao's abilities were also good, but not as diligent as Qi Hui, so this opportunity for a meteoric rise fell to Qi Hui.
Opportunities are always for those who are prepared.
Of course, Wang Yi would also heavily rely on Manager Cao, making him a general manager.
The reason was simple: to balance Qi Hui!
To give Qi Hui a sense of crisis, thereby motivating her to achieve more performance and not to act recklessly.
Similarly, a team of people would be parachuted from Jizhou to oversee the financial director, human resources director, etc., of the Bingyun Garment Factory...
The same would apply to Pinghu.
Wang Yi wanted to ensure that every factory he acquired was 100% under his control.
Subsequently, new Zhenyou down jackets could be produced according to Wang Yi's designs.
After settling this matter, Wang Yi set off again, returning to Jizhou.
En route, he checked BYD's stock price.
This morning, BYD had already released an announcement:
[Xingyi Technology and its Chairman strategically invest 3.5 billion in BYD!]
A single stone stirred a thousand waves.
As soon as this news broke, the entire internet was in an uproar.
The public opinion below exploded even more:
"Is that true? 3.5 billion? Isn't that more than Buffett invested? Buffett only invested 1.8 billion."
"Xingyi Technology is amazing, Chairman Wang is amazing, 3.5 billion all at once, truly incredible."
"What kind of company is Xingyi Technology? Never heard of it!"
"Idiot, it's the parent company of Meiyou! The Meiyou 'pure desire' style and Zhenyou 'pure desire' style worn by your girlfriend are all from their family!"
"The game 'Defending Grapefruits' you play is also theirs!"
"I see, amazing, Xingyi Technology."
"What's that? Later, Xingyi Technology will also launch Xingyi mobile phones, and they've ordered 30 million chips at once!"
"Xingyi Technology is awesome. What's their stock code? I want to heavily invest!"
"Uh, Xingyi Technology isn't listed. They're not short on money; they don't need to be listed."
"I see, I just don't understand why Xingyi Technology is investing when BYD's profits have dropped by 90%? Are they stubborn?"
"Probably fake news, since BYD announced it unilaterally."
"It's not fake! I just saw that Xingyi Technology also reposted this news and liked it, indicating long-term optimism about BYD!"
"Chairman Wang's vision is beyond our comprehension as ordinary people. BYD must really have something!"
"Yes, that's right. Chairman Wang is a divine figure; everything he does succeeds. The low-budget film '33 Days After Breakup,' invested with 6 million, became a box office dark horse, selling over 600 million! Not to mention the 'pure desire' style. Investing in BYD now won't result in a loss either."
"Then BYD's stock must be bought!"
"Yes, buy!"
"Add to position!"
...
In an instant, BYD's long-stagnant stock price surged continuously.
From an opening price of 11.6 Hong Kong dollars, it soared all the way, quickly reaching 12 Hong Kong dollars, then 12.5 Hong Kong dollars, 13 Hong Kong dollars...
Although it only increased by a few Hong Kong dollars, the 350 million shares in Wang Yi's hands had already appreciated by 1.05 billion Hong Kong dollars.
Looking at this momentum, it could continue to rise.
Wang Yi was in a great mood about this.
As long as there was no negative news, and as long as BYD didn't announce its revenue, the stock price could rise.
As for the antifreeze batteries and orders, BYD did not announce them for the time being, but waited until the Xingyi mobile phone launch event to make a heavy announcement as core black technology!
Only then could it have the greatest impact, and BYD could get another surge.
If it were all announced at once this time, the stock price would also rise somewhat, but it would be limited.
It would be better to split it into two announcements, to get two waves of increases!
More importantly, BYD's current antifreeze battery production capacity was limited and all given to Wang Yi.
Even if announced, other customers coming to buy would find no stock, which would be largely meaningless.
It would be better to wait for the Xingyi mobile phone launch, when antifreeze battery production capacity would ramp up and BYD would have stock, for a better effect!
Meanwhile, Chen Chuanqing also secured the factory in Pinghu.
Its scale was similar, but it only cost 8 million.
After all, there was still a gap in workmanship between the two.
This business trip was a complete success for Wang Yi.
He not only secured BYD's minus ten-degree antifreeze batteries but also acquired 350 million BYD shares at a low price, accounting for 13% of the stock!
Now, he had also acquired two exquisitely crafted down jacket factories, pushing into the down jacket market!
He also met two excellent executives to serve as directors for the two major factories, which was a great success.
However, on the way, Wang Yi was not idle; he was considering how to deal with Bosideng!
In the current down jacket market, Bosideng still held a dominant position.
After all, they had been making down jackets since 1976, deeply rooted and a huge enterprise.
Wang Yi had achieved great success with the "pure desire" style, Meiyou dresses, and Meiyou autumn wear.
But down jackets were a different, difficult matter.
Even if Wang Yi's styles were more fashionable and attractive, it wouldn't be easy to shake Bosideng's position.
Especially in the hearts of the older generation, they valued brands too much.
Once they recognized a brand, it was hard to change their minds.
For instance, currently, many people go to Japan to buy smart toilet seats.
Even if they are all domestically OEM-produced, and even if the original manufacturers also launch more cost-effective smart toilet seats, they still prefer Japanese ones.
This kind of preconceived, deeply ingrained idea is hard to change.
So, for Wang Yi to make down jackets, he still had to start with the younger demographic.
After all, it was easier to reshape the brand perception of the younger generation than to change that of the older generation.
But to truly grow big, Bosideng was an unavoidable giant.
Wang Yi fell into contemplation: How could he surpass Bosideng in the down jacket field? Defeat Bosideng?
It wasn't easy, but there was still a chance right now.
That was to wait for Bosideng to self-destruct, and Wang Yi would seize the opportunity to take over Bosideng's almost monopolized market!
Next year would be a special year, not only would mobile internet begin to explode, and mobile shopping significantly increase, but it would also be a transition for physical stores.
Before 2012, everyone liked to go to specialty stores in garment cities to buy clothes offline.
But after 2012, this trend changed.
People didn't like going to garment cities as much; instead, stores within commercial complexes became the mainstream!
To put it plainly, it was a change in lifestyle habits.
In the future, consumers would rarely set aside a specific day to go to a garment city to buy clothes.
Instead, most would go shopping at malls, for example, after dinner or a movie, they'd browse the mall, happen to pass a specialty store, find it appealing, and go in to look.
They hadn't intended to buy anything, but if they liked it, they'd buy it on the spot.
To put it simply, starting next year, foot traffic to garment cities will only decrease, while foot traffic to mall specialty stores will increase day by day!
Therefore, the Meiyou and Zhenyou flagship stores and specialty stores opened by Wang Yi were mostly located within commercial complexes or independent commercial villas along streets in core business districts.
However, traditional brands like Bosideng were different; they still held old thinking and still occupied garment cities!
In addition, Bosideng had expanded wildly in recent years, adding two thousand new stores and online shops each year, bringing the total number of outlets to over ten thousand.
The result was predictable: in 2014, the "cold winter" for apparel brands, with excessive inventory pressure, Bosideng, like brands such as Zara and HM, saw its revenue and profits plummet year after year, with many store closures.
This was Wang Yi's opportunity.
But waiting until 2014 was simply too slow.
Wang Yi decided to give Bosideng a push, or dig a pit for them.
As for how to dig?
That was the pit all businesses fall into — diversification strategy!
As a reborn person, Wang Yi clearly knew how deeply flawed a diversification strategy could be.
Future business development emphasizes specialization and refinement, not being large and杂 (diverse/unfocused).
But in 2011, diversified development was something all enterprises dreamed of.
To put it plainly, the smooth sailing of the past few years had made those entrepreneurs swollen with pride, mistakenly believing that they could succeed in anything they did.
For example, BYD, being excellent at making cars, thought it could also succeed in making computers and traditional home appliances.
But the result was just a tragedy.
Even later, Xiaomi, when it made computers, was not considered successful.
Xiaomi's home appliances did well, but they weren't traditional home appliances; instead, they seized the smart home trend!
They succeeded through low prices and the Xiaomi IoT smart home ecosystem.
After all, Xiaomi IoT smart home started early; when Huawei just began making smart homes, Xiaomi's ecosystem had already been developed for many years and had become quite rich.
To put it plainly, diversified development, like Xiaomi's home appliances, must seize the right trend to find a way out.
If Xiaomi had not made smart home appliances and instead made traditional home appliances like BYD, it would have died a very miserable death.
Diversified development is not that easy.
The same goes for Bosideng.
Bosideng was not content with just making down jackets; instead, it wanted to diversify and develop into comprehensive apparel.
After all, the selling period for down jackets is only a few months a year.
So, as early as 2009, Bosideng began its multi-brand, all-season, and internationalization strategy, expanding wildly, opening two thousand stores a year.
In addition to its core business of down jackets, it also had multiple categories such as men's wear, women's wear, and children's wear, and was constantly internationalizing!
If that were all, it might have been fine, but Bosideng also ventured into capital operations such as real estate and commercial retail.
The results were not optimistic; after frantic expansion, the growth rate of profits and revenue did not meet expectations.
In the previous life, Bosideng's revenue growth began to decline in 2012.
In 2013, revenue not only did not grow but showed negative growth of over 10%!
Under frantic expansion, profits plummeted to less than one-tenth.
After 2014, Bosideng's sales continuously declined, and a wave of store closures began.
Subsequently, they even brought in the CEO of Daphne to serve as Bosideng's professional manager, to implement drastic reforms.
However, the reforms stalled halfway due to affecting too many people's interests, ultimately coming to nothing.
The former Daphne executive also resigned, and Bosideng's old chairman took over the company again.
One can only say that Bosideng's internal problems were too severe, making it impossible for an outsider to successfully reform it.
From 2013 to 2017, Bosideng's revenue and profits sharply declined year after year.
It wasn't until 2018 that Bosideng decided to carefully reform, abandon its diversification strategy, return to its main business of down jackets, and focus on the mid-to-high end.
Only then did it become the absolute hegemon of the down jacket industry, and even a global hegemon!
Only then, even when the economic environment was poor and the apparel industry's volume dropped year after year, Bosideng was able to sell more and more expensively...
It can be said that after Bosideng began its diversification in 2009, it consumed all its growth in just a few years and steadily declined.
However, Wang Yi couldn't wait for Bosideng to slowly decline; on the contrary, he wanted to quickly seize the down jacket market!
After all, in winter, the "pure desire" dresses and "pure desire" style autumn wear would be out of season.
If down jackets couldn't take off, Wang Yi would have nothing.
And the best way to make Bosideng decline quickly and yield market share was to accelerate Bosideng's diversification process, unlocking their predetermined fate ahead of time!
Let Bosideng expand with full force and open stores crazily in 2011.
In this way, it is estimated that next year, Bosideng's revenue will plummet, showing negative growth, and the year after, there will be a wave of store closures.
Wang Yi intended to capture the majority of the down jacket market!
Of course, Bosideng wouldn't starve to death; as long as it abandoned diversification, it would still be profitable.
(End of Chapter)