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Chapter 291: The first step towards deglobalization

ps: Thank you to the readers for the "Yu Xichen" reward of 100 Zongheng coins^_^

The main plane is Yanhuang Continent, Dongguan City, Guangdong Province.

As the largest industrial manufacturing base in China, the annual industrial output value of Dongguan City exceeds the annual gross industrial output value of many small and medium-sized countries in the world. The GDP it creates every year is the envy of many surrounding provinces and cities in terms of quantity. But the Chunjiang Plumbing Duck is warm.

Prophet, only the companies in Dongguan know what the world has been like in the past two or three years, and whether their lives have been comfortable or not.

Generally speaking, after thirty years of reform and opening up and survival of the fittest, companies that can still survive in the fiercely competitive land of Dongguan are basically divided into two categories: one is giant companies like Huawei, which control everything from

From technology research and development to manufacturing and production, from product design to system integration, we can provide customers with a wide range of complex package solutions. The result is that the price of a single Huawei product may not be the lowest, but when it comes to comprehensive domestic and foreign large-scale engineering systems

In terms of the total quotation after the demand for each module, Huawei's bidding plan is often the most economical and worry-free, which is also the fundamental reason why it can eventually win large bids from government enterprises around the world. The other type is that the scale is very small and it is easy to turn around.

Small and micro enterprises. This kind of enterprise is small and easy to turn around, and can do whatever industry makes money. Therefore, industries such as copycat mobile phones, toy manufacturing, and luggage wholesale, where the speed of response determines the survival time and ability of the enterprise, are often like this.

The paradise and competitive advantage of similar enterprises.

Overall, Dongguan's manufacturing industry is like an upright dumbbell, with large ends and a thin middle. However, from a profit perspective, because many multinational companies have mastered the design, raw material procurement, transportation, warehousing, sales, and after-sales of the industrial chain

, brands, standards and a series of links and factors, only the lowest-profit production links are left in Yanhuang. Therefore, the profits of most OEM companies here are actually very low, and they only earn a subsistence-type processing fee. The world that began to spread in 2007

The economic crisis and financial crisis have slowed down the demand of people in developed countries, which directly led to the reduction of orders allocated to Yanhuang factories. The result is that large companies like Huawei, which have their own brands and hold thousands of technology patents, are becoming more and more competitive.

Brand awareness among the public is also getting higher and higher, while small and micro enterprises and private workshops and factories that mainly rely on foreign orders for survival have closed down in large numbers, changed careers, or their bosses have absconded with money, leaving only a large number of low-level workers who have not received their due wages.

By.

Starting from the second half of 2013, with the stimulation of a series of huge orders issued by Wang Fan, the "domestic demand" in Yanhuang was gradually activated, and the derived GDP effect began to boost the entire Dongguan manufacturer. Then coupled with the virtual world

The release and operation of the "WoBuy" platform has brought a large number of small and micro enterprises in Dongguan back to life. However, with the arrival of January 1, 2014, after the Yanhuang government announced the cancellation of the export tax rebate policy for some export commodities, enterprises have to face the new situation again.

Come to the crossroads of big exams and development.

At Dongguan Mingjia Toy Factory, owner Chen Jiazheng and partner Sun Ming discuss the production plan for the new year.

"Mr. Sun, today is January 4th. Starting from the 1st, the toy export tax rebate from the customs has been officially cancelled." Chen Jiaxian said.

"I also asked several friends from the customs and the government, and they all said that the cancellation of export tax rebates is not a temporary policy, and is likely to continue in the future. They hinted that the top levels of the country have begun to adjust the export direction of some small commodities. The top level seems to have

I hope that this part of the production capacity will serve the domestic market." Sun Ming, who has strong connections and mainly solves the company's external development, relations, and coordination issues, took a puff of cigarette and replied.

"Then shall we accept the order sent by Stephen this time?" Chen Jia frowned and asked hesitantly.

Stephen is one of the company's customers in Stars and Stripes, and is also the largest overseas customer of Mingjia Toy Factory. His annual orders account for about one-third of the entire company. It is because of his orders that Mingjia Toy Factory has been able to survive the economic crisis.

At that time, it could maintain an operating rate of more than 50%. However, at the end of 2013, as domestic demand for Stars and Stripes weakened, the content of Stephen's new order to Mingjia Toy Factory began to change. He requested a 5% price drop, and the order quantity suddenly decreased.

30%.

"Our net profit is roughly 6%, right?" Sun Ming asked.

"I asked my accountant to do the calculation carefully. Last year it was 5.3%. This was while enjoying the export tax rebate. If the tax rebate is excluded, it would actually be a loss." Chen Jia, who pays attention to the management of internal details of the company, picked up a piece of paper in his right hand.

A4 paper size analysis report and data chart were handed to Sun Ming.

"Loss?" Sun Ming stared closely at the forecast at the bottom of the analysis report. Due to the increase in unit costs caused by the cancellation of export tax rebates and scale reduction, it is expected that Stephen's order will bring the company normal operations, but it will generate an 8% loss at the end of the year.

.A few minutes later, Sun Ming said: "You should have made a decision, right?"

"Yes!" Chen Jia looked at Sun Ming and said with a half-wry smile, "My opinion is to call Smith back first and tell him about the company's business changes caused by the adjustment of Yanhuang export policy, and propose a 10% increase in the quotation. If

If he doesn't agree, we can only temporarily stop cooperation with Smith Company this year." Smith is a major customer attracted by Sun Ming, and it is of great significance and role in the company's initial development, so Chen Jia is very cautious in handling it.

"Mainly focus on 'I buy'?" Sun Ming did not answer immediately, but asked.

"Well! Look at this." Chen Jia picked up another piece of A4 paper and explained: "The price of the order I bought above is very suitable. The net profit margin of the last business we took was 30%!"

"30% is indeed not low. But I remember that they have very strict quality requirements and the delivery standards for their products are also very detailed. Last time our return rate exceeded 7%."

"So this is one of the things I want to discuss with you today. If we stop doing business with Stephen, some of the freed manpower can be used in other production groups, strengthen the quality inspection department, and control the unit defective rate. At the same time,

If we win one or two orders in the new "IBuy" bidding, we can maintain the operating rate. I asked the cost department to calculate it. Even if additional personnel expenses are added to ensure product quality, the annual net profit margin can still be maintained at

More than 25%!”

"That's it..." When he heard that one side had a loss of 3% and the other side had a profit of 25% (five times last year's profit), Sun Ming was silent. Half a minute later, he sighed and replied: "I'll send an email to Stephen

Well, after all, we are an enterprise and do business, not a charity."

At the same time, Jinhai City.

An inconspicuous small building under the name of Jinfan Company, where Wang Fan is waiting for Wang Xuelin. Because Jinfan Company has attracted increasing attention from domestic and foreign government enterprises, the virtual world under its name has become a place where many hackers have fallen victim. Therefore,

Wang Xuelin often received attention and surveillance from interested people overtly and covertly. Therefore, in order to avoid getting into trouble himself, Wang Fan deliberately chose a relatively remote place every time he met.

"Wang Fan, according to the Internet emails and communication calls I monitored, many Yanhuang companies have begun to increase prices or refuse foreign trade orders this year." Yadi took advantage of Wang Xuelin's late arrival due to traffic jams and first chatted with Wang Fan about his previous experience.

Something I've always cared about.

"Have you raised the price? That's great!" Wang Fan clapped his hands hard when he heard that it was finally beginning to develop as he had envisioned.

"After all, a two-pronged approach is very effective. On the one hand, you use high-priced orders of 'I buy' to attract production capacity, and on the other hand, the country cooperates with the cancellation of the export tax rebate policy to suppress the final cost line of foreign trade small commodities." Yadi analyzed.

"Hmph, just wait! In half a year at most, the early order bonuses held by multinational companies will be exhausted. At that time, I want to see whether their domestic necessities and daily necessities will increase in price." Wang Fan said proudly.

road.

"According to my calculations, it will definitely rise, but the magnitude will not overturn the living standards of people in developed countries. Don't expect too much," Yadi reminded.

"It doesn't matter, I have lots of patience, a little influence, boiling frogs in warm water is the best. I'm just very dissatisfied and can't stand that those foreign developed countries, on the one hand, enjoy Yanhuang and bear their own domestic environmental pollution, and provide them with high-quality

Globalization welfare of cheap goods, on the other hand, they accuse the Yanhuang people of stealing their jobs. It seems that in their eyes, the Yanhuang people cannot charge fees, cannot make money, cannot have any adverse impact on them, and can only have no complaints or regrets

, serve them forever without any desire or request!"

"In this regard, you have a sufficient number of target planes and populations, and you don't have to worry about the sales market for various products. In addition, you don't have to worry about the raw material base, and you will not be restricted by foreign resources, so you can completely close the door and develop yourself.

Play." Yadi fully agreed with Wang Fan's desire to control the world economy.

"Dong dong dong!"

While he was talking, Wang Xuelin's figure walked into the house. As he entered the house, he explained: "I'm sorry, Mr. Wang. I found a 'tail' on the road, but when I tried to avoid it, the alternative route was blocked by traffic, so I arrived now."

"Haha, it's nothing. Xuelin, come and sit down. It just so happens that I haven't paid much attention to the company for a while. Please tell me carefully..."

"Yes, then I will start with virtual world revenue..."

Stars and Stripes Republic, Los Angeles Walmart Supermarket.

Sander is an office security guard, earning 10 US dollars and 25 cents an hour, and earning more than 1,800 US dollars a month. Because of his meager income, he cannot afford medical insurance, nor can he afford the rent of a single-family house and repay the loan.

Rent in a cheap hotel with a monthly rent of 350 US dollars. In Los Angeles, the only thing cheaper than this hotel is a motel, but it is a concentration and hotbed of drugs, marijuana, gangs, and crime. Stars and Stripes Nationals with a little ability,

They will all stay away from there.

After deducting the necessary rent, transportation, and food expenses every month, Sander can't save much money every month, and the balance of his bank card is often US$10 (the account is automatically closed when the balance is zero). According to Stars and Stripes' salary payment habits, every two

Wages are paid once a week. Two to three days before payday, Sander often only has ~$30 left in his pocket to survive.

It seems that Sander belongs to the bottom of society, but this was not the case a few years ago. Ten years ago, he lived in a large house of several hundred square meters in the suburbs. At that time, he had just finished college with loans and worked in the IT industry after graduation.

The annual income was more than 120,000 US dollars. At that time, Sander had money, bought a big house, bought luxury cars, picked up women, and lived an extremely comfortable life. But things turned around. Seven years later, his job was taken over by an Indian software engineer.

replacement and therefore unemployment.

Sander, who had lost his stable income, could no longer afford the annual mortgage and property taxes on the luxury house, so he had to default and move out. After several twists and turns, he found his current job as a security guard. This was not the worst thing. What was even worse was that the income was considerable.

In the past 7 years, he has not paid off his college loan at once. Now he still has more than 20,000 US dollars in debt to repay, so he needs to squeeze out at least 0 US dollars every month to pay off the debt. This is why his life is very difficult.

One of the important reasons for tightness.

Due to high work pressure, Sander often participates in anti-globalization demonstrations, accusing the government of allowing companies to transfer a large number of job opportunities abroad. But as for globalization, it has brought low prices for daily necessities in supermarkets, such as t-shirts for US$1 a piece.

T-shirts, paperback ties for US$1, a large bucket of toilet liquid for US$1.99, 8 slices of rib meat for US$7.20, a large vat of ice cream (one kilogram) for US$3, etc., but they have never entered Sander's

It made him think. From his point of view, it is only natural and normal to enjoy products and services at this price for twenty or thirty years.
Chapter completed!
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