Chapter 728 Profit Chain of Foreign Trade Clothing
Hurrying slowly, Landa Clothing Factory finally completed the orders for Yingcai School for this semester one month before the start of school. Before I could take a breath, I didn't expect that Shi Weitian also came to join in the fun and placed a order.
An order for bedding.
Landa Garment Factory is only responsible for production, as well as material input, quality inspection and other work closely related to production. External sales are all done in the name of Lansili.
Huang Feifei specially ordered a batch of high-end five-piece bedding sets from Lan Sili, with a unit price of nearly 100 yuan and a quantity of thousands of sets. The ordering time was very short, leaving only one month for production.
Of course, Huang Feifei did not spend money just to support Lan Sili's business.
On September 10, 1985, the first Teacher's Day in the country, these high-end beddings in gift packaging were given to every teacher at Agricultural University, both current and retired, as a gift sponsored by Shiweitian for Teacher's Day.
Everyone has a share of teachers.
Shi Weitian's move made it a big hit, attracting major news media to report on it, and it was even featured on CCTV's prime time TV news in the evening.
Taking advantage of this opportunity, Lansili's bedding products also became famous in one fell swoop, almost becoming synonymous with high-end benefits or gifts for various units during the holidays.
Lan Sili adopted such a development route, which was certainly attributed to Sun Dahai. As a reborn person, Sun Dahai still had some understanding of the development of the domestic garment industry in his previous life.
In the mid-1980s, it was very profitable for individuals to sell clothing. Those who were brave would go to the famous parallel import terminals along the coast to purchase smuggled floral shirts, bell legs, jeans, toad glasses, or bring
The fancy clothes decorated with foreign letters were brought to inland cities for sale, and the business was extremely prosperous.
But that's just a personal behavior. A formal clothing company certainly can't do such nonsense.
However, today's garment factories are basically state-owned enterprises. They organize production according to the production tasks assigned by superiors, and then sell the products according to unified pricing through the national commercial system.
Among them, large state-owned factories with strong strength and strong connections can also obtain foreign trade orders through superior units. However, the prices of such orders are very low, basically below the cost line. State-owned garment factories can only survive by relying on export tax rebates.
Get some profit.
I won’t go into details about the various shortcomings of the state-owned enterprise business model here. Anyway, starting from Sun Weiguo and Huang Feifei, almost no one wants Lan Sili to operate in this way.
At this time, Sun Dahai's suggestion became the focus of everyone's discussion. He proposed to temporarily avoid the domestic finished clothing market, establish a brand image domestically through clothing customization, and at the same time use foreign trade orders to achieve company profits.
Sun Dahai's suggestion is well combined with the actual situation and is the most feasible for Lan Sili.
Yingcai School and Shiweitian are all long-term customers of Lansili. Several restaurant chain stores, such as No. 9 Hotpot Restaurant and Suijinghao Cafe, have also transferred orders for work clothes from their domestic branches to Lansili.
Only the orders from these related households can maintain the daily basic production capacity of the garment factory. With the help of Huanyu Trading Company in the foreign trade department, there will definitely be no shortage of orders.
There are many tricks in the foreign trade clothing business, and the profit distribution is extremely uneven. The "Shaolin Temple" authorized cultural shirts represented by Huanyu Trading Company, the short-sleeved summer version, have a uniform overseas price of US$6.99.
The FOB price (FOB price) obtained by Huanyu Trading Company from the agent Huaxin Trading Company is US$0.8 per piece, and it is sold to first-level distributors abroad at a price of about US$4 per piece.
The first-level distributors are responsible for completing customs declaration, commodity inspection procedures and paying import duties in the importing country. Then, whether they forward the goods to the second-level distributors or directly contact the final sales outlets themselves, they have no direct relationship with Huanyu Trading Company.
Huaxin Trading Company purchases goods from the three major domestic authorized garment factories at an outrageously low price, one dollar per dozen (12 pieces), and is also responsible for domestic transportation, export customs declaration and other procedures.
There is no profit at all at the price offered by domestic garment factories, and they might as well sell it domestically. However, garment factories can get export tax rebates while completing the task of earning foreign exchange from exports, so everyone gets what they need.
The biggest winner in this foreign trade business is naturally Huanyu Trading Company. According to the contract, they need to bear an additional 10% of the sales price, which is a licensing fee of US$0.699 per piece, to Zheng's Printing (formerly Zheng's Printing Factory).
As well as negligible sea freight and insurance fees.
This is the profit chain of this foreign trade business. The channel dealers at all levels in the middle control the vast majority of all profits. The real two ends, that is, the profits earned by the manufacturing companies and sales terminals are very meager.
After learning about these situations, Sun Weiguo, Huang Feifei and others agreed to Sun Dahai's suggestion, and Lan Sili's business model was determined.
With the "cheating device" Sun Dahai's rationalization suggestions and the strong support of various enterprises under the Sun family, Lan Sili has developed very rapidly.
Not only did the employees who bought shares earn 15 times their book earnings, shareholders also received a year-end dividend of no less than 20% of the share capital each year for the past two years.
Employees who have used up their full investment quota to participate in the stock investment are all smiling now. But those employees who have not invested in the stock, or have given up part of their initial investment quota, are already regretting it.
However, something that will make them regret even more is about to happen.
…
After two hours of discussion, after listening to the plans of the two groups in the conference room, Sun Dahai adopted the plan of Qiu Xinjie's group and asked several of them to serve as the actual operators of the project.
This so-called grouping was formed spontaneously by several people based on their different ideas after Sun Dahai left the conference room.
Everyone knows in their hearts that no matter which group's plan is adopted by Sun Dahai, this group will probably be responsible for completing the project.
Qiao Wanting won't interfere too much. At most, she will assign one or two experienced traders to help you complete this project.
There are only three people in this team including Qiu Xinjie, one of whom is a professional analyst. He has never had trading experience, so in this project, his role is mainly to collect information and formulate operating strategies.
Another team member is also a newcomer who has just joined the company for less than a year. She used to be an auxiliary trader in a small stock studio and has quite a lot of practical experience in the stock market. Therefore, she will become the main trader of this project.
In comparison, Qiu Xinjie is a young newcomer. She is only 22 years old and has just graduated from college. Even including her internship in the second half of her senior year, her actual work experience is less than one year.