Chapter 388 The benefits of Pengcheng Special Economic Zone
As Western countries such as the United States and France begin to increase import tariffs on goods, this will undoubtedly make the competitiveness of products produced in Xiangjiang decline as local selling prices increase, making them unable to compete with local products.
Due to the increase in tariffs on many OEM products, some companies in the United States have chosen local production companies for OEM, which is a huge blow to Hong Kong industry.
In order to continue to obtain orders from the United States and some European countries, companies in Hong Kong have to reduce their own production costs and provide them to orderers at cheaper prices.
The rapid economic growth in Xiangjiang has led to a rapid rise in labor costs. It is obviously impossible for Xiangjiang factories to significantly reduce costs, and the Pengcheng Special Economic Zone, not far from Xiangjiang, has entered their eyes.
The labor force there is many times lower than that in Xiangjiang. If the production factory is built there, their costs will be reduced by 20% to 30%, which will be very beneficial to the export of their products.
Nowadays, they are also aware of the development there. The Li Group has developed in Pengcheng Special Economic Zone for nearly two years. Not only has there been no problem, but the scale of the group has become larger and larger. This also gives them great confidence in investing in Pengcheng.
Moreover, the current world situation does not allow them to make changes. The high costs in Hong Kong make it impossible for them to continue to receive orders from Europe, the United States and other countries.
On the Xiangjiang side, Wu Jiayuan, vice president of Hongyu Group, also reported to Li Guangyu the situation on the Hongyu Group side.
Since Hongyu Group builds its own brands, coupled with its continuous expansion in the United States in the past two years and the continuous promotion of Xinghong Sports Group, Hongyu Clothing Group has its own brand stores in various cities in the United States, with a turnover of
Hongyu Group has a 30% share. This increase in tariffs has also affected Hongyu Group to some extent.
Fortunately, most of Li Guangyu's production is already in Pengcheng. Even if it is still sold at the current selling price, Hongyu Group can still make good profits. Just don't think about making profits as high as before.
This time Wu Jiayuan came to ask Li Guangyu whether brand stores in the United States need to raise prices and sales in response to the increase in U.S. tariffs.
After Li Guangyu thought about it, he realized that the price still needs to be increased. The United States has added tariffs, but his own stores are indifferent to this. What does this make American citizens think? The original selling price of Hongyu Group is so high, and how much money is made there?
, labeling the Li Group as a black-hearted businessman.
Li Guangyu said: "Ms. Wu, please inform all the specialty stores in the United States to post notices to me. Due to the increase in U.S. government tariffs, the prices of our various brands of clothing have increased accordingly."
Wu Jiayuan said: "Li Sheng, the current economic development in the United States is not very good. After the continuous promotion of Xinghong Sports Group in the past two years, our current price has made citizens more accepting of the price of our brand. This time we have raised the price again.
If we raise the price, I'm afraid we will lose a large number of customers. After all, when the income of citizens does not increase, after the price increase of our clothing and footwear, many ordinary families will give up buying our products."
Of course Li Guangyu is aware of this situation, but the selling price must be increased. This is also a response to the policies issued by the US government. As for retaining customers, it is up to each district to carry out activities to let citizens feel that the Li Group
of profit.
Li Guangyu said: "Ms. Wu, after the price increase, you can ask the United States to do more activities, discount sales, seasonal clearance, anniversary celebrations, etc., just bring the price down, so that citizens can feel that they are buying
Of considerable value.”
After listening to Li Guangyu's suggestions, Wu Jiayuan also felt that this was the best way at present. The increase in prices did not have much impact on the middle and upper-class families in the United States. When these activities are held, they can win over the desire of ordinary families to buy.
, which will not cause the loss of Hongyu Group’s customers.
After entering August, the director of the Pengcheng Special Economic Zone, Li Tingwei, was very busy and at the same time very happy. Although he continued to meet with businessmen from Xiangjiang every day, he did not show any impatience and kept repeating
Various merchants explained the policies of the special zone and accompanied everyone to visit some enterprises in the special zone.
With the changes in the world economic situation, Li Tingwei knew that the opportunity for the development of his Pengcheng Special Economic Zone had come. His huge human resource advantages and low cost advantages were not comparable to that of Xiangjiang. With the rise of protectionism in various countries, Xiangjiang Industry
If they want to continue to develop, they must reduce their production costs, and Pengcheng, which is close to Xiangjiang, is their first choice.
Li Tingwei said at the Pengcheng Special Economic Zone office meeting: "Comrades, the current situation is quite beneficial to our special zone. Many entrepreneurs in Xiangjiang hope to reduce the production costs of their companies so that they can be competitive around the world, and Xiangjiang's
The labor cost on the other side is more than 20 times that on our side. Our huge advantage is very attractive to Hong Kong industry in this period of economic crisis in the world economy."
Li Tingwei asked all departments to receive attentively the Xiangjiang businessmen who came to Pengcheng Special Economic Zone for inspection, actively answer the merchants' questions, and strive to allow them to establish production companies in the Pengcheng Special Economic Zone to accelerate the development of Pengcheng Special Economic Zone.
One of the staff members said: "Director Li, many merchants who come here will want to visit Pengyu Group. However, if we lead too many visits, it will still have some impact on Pengyu Group.
.Besides, things are not peaceful within Pengyu Group these days. Ms. Li Cao is still stationed at Pengyu Group, and Mr. Zheng Dong, president of Hongyu Group, still has not returned to Xiangjiang."
Cao Weiqing and others have been here for 6 days. Li Tingwei naturally knows some things that happened at Pengyu Group, but these are all internal matters of Pengyu Group, and he can't ask too many questions.
He himself did not expect that Pengyu Group provided such high salary to the management, and there were still people who wanted to offer their hands. But he knew that the salary of the managers from Xiangjiang was consistent with that of Xiangjiang. One month's salary was equivalent to that of ordinary workers.
After one or two years of salary, I am still not satisfied.
Li Tingwei said: "I will negotiate with the senior management of Pengyu Group in this regard to avoid affecting the normal production and operation of Pengyu Group when we visit."
Li Tingwei also knows that Pengyu Group is now a banner for attracting investment in their special zone. The Li Group's huge influence in Hong Kong also means that merchants coming to Hong Kong will only make their own decisions after seeing the true situation of the companies under the Li Group.
Some options.
Li Tingwei also hopes that Cao Weiqing and others can rectify Pengyu Group as soon as possible so that Pengyu Group can develop healthily and well. Since the establishment of the special zone, Pengyu Group is the first to come to the special zone and trust the government. Li Tingwei also hopes that Pengyu Group
The group can continue to operate healthily and steadily together with the special zone.
While Li Tingwei was still in the meeting, another Xiangjiang businessman came to the special zone. However, he did not come to Li Tingwei. Instead, he went directly to Pengyu Group and paid a visit to Cao Weiqing.
This man also controls a well-known clothing industry company in Xiangjiang, and his son is Chen Shouzhong.