Chapter 110, Factory Inspection
"I know that this is not something that can be accomplished overnight, and I don't expect to build the brand in one or two years. You can take your time and don't rush. It will take three years to see some signs, and five years to build the brand."
Fifteen years later, I will be satisfied if I can occupy a certain position in the world.
Twenty years later, it will be enough to compete with those top luxury brands and not lose easily.
Don’t worry, I won’t set unrealistic tasks and goals for you.”
The establishment of an internationally renowned brand can only be achieved in a few years. The reputation has to be established bit by bit, by conquering one city after another, and occupying one country after another.
Opportunistic overnight success is rootless duckweed. It rises easily and falls quickly.
"Nansheng, the contract processing business lacks core technology and core competitiveness. As long as there is sufficient capital, others can easily imitate our model.
Just like the plastic flower industry in the 1950s, clothing processing in the 1960s, and electronic processing in the 1970s; when one company starts to do it, those who follow suit immediately jump in to grab the food, and eventually fall into vicious competition, and only a few can survive.
Home.
Vicious competition is a problem that we swallowtail butterflies must face.
When our factory becomes large enough to have tens of thousands or even hundreds of thousands of employees, if there is no business for a month or two, all our previous profits will be swallowed up."
Nan Yi nodded and said: "Secretary Zheng, very good. You can think of these problems now, which shows that you are thinking very long-term. In fact, I have also thought of these. Let me tell you what I think is a feasible solution."
"Appreciate further details."
“First, the labor system.
As the size of Swallowtail Butterfly increases, the factory management personnel must be directly affiliated with the factory, and another one thousand to several thousand front-line workers who are directly affiliated with the factory will be retained.
These people belong to the Swallowtail Butterfly system and enjoy the high benefits we have formulated; wages, bonuses, insurance, maternity leave, leave beyond the length of leave stipulated in labor laws, etc.
These people are our own people in Swallowtail Butterfly, and they should be treated with preferential treatment, very preferential treatment. Of course, for them, in order to select the best among the best, they must be the best talents.
Except for our own people, Swallowtail Butterfly's frontline workers are not our own people, but outsourced personnel."
"Nansheng, you mean labor dispatch?"
"right."
"However, labor dispatch has a profit-making attribute. The company that dispatches workers will definitely have to earn a headcount difference, and the labor costs we need to pay will be very high."
"You should have heard of the word sweatshop, right?"
Zheng Wenqi nodded, "Of course, it was first proposed in the Qiang Kingdom in 1867, which translates to sweatshop."
"Yes, sweatshops. In the future, we will serve high-end internationally renowned brands. If they fall into scandal, the impact on the brand will be huge.
Words like exploitation and sweatshops are like honey to reporters. Once they get a whiff of it, they will definitely come after them and won’t let go.
There will be less competition at the beginning, so we can provide higher wages to front-line workers, so that their income will appear to be relatively high. They will not think that our high requirements and high working hours are unreasonable.
But as competition increases and the overall income level of society increases, their income will not be so abrupt.
At that time, our high demands and high working hours will become unreasonable, and we will turn from a conscience factory into a sweatshop, and a public relations crisis will come.
The brands we serve may terminate their contracts with us for the sake of their own brand influence, putting us in crisis."
"Nansheng, what you mean is that we give our workers high wages and benefits to create a sample; then, the main workers come in through labor dispatch, so that we have an excuse to prevaricate?"
"It's not just for this reason. The longer the workers work, the higher the labor costs we need to pay. Their salaries cannot remain unchanged. We must increase their salaries in proportion to their service years.
.
If the salaries of 100,000 workers are raised at the same time, by 5 yuan a month, it will be 6 million a year. If the salary increases again next year, it will not only increase by 5 yuan, but will become 10 yuan. Next year, 20 yuan may be needed.
In three years, our annual cost expenditure will increase by 42 million. The longer the time, the higher our expenditure ratio will be. Sooner or later, one day, it will be so high that we cannot afford it, and our profits will be reduced to insignificance.
By then, even if Swallowtail Butterfly's annual turnover is hundreds of billions, our profit may not reach hundreds of millions, or even... we will have to make a profit at a loss."
Nan Yi paused and continued: "Moreover, Secretary Zheng, given the current situation in the country, whoever can start manpower dispatching must be someone. It will not go wrong to have a good relationship with them."
Zheng Wenqi thought about who could start manpower dispatching, and soon she had an idea.
"Nansheng, I'm just worried that it will be very difficult to get rid of in the future."
"Today is cruel, tomorrow is cruel, and the day after tomorrow it becomes cruel. Running a business is like walking a tightrope at high altitude. We must first ensure that we are qualified to stand on the tightrope. The rest can only be left to the future when the soldiers come to block the water and come to the soil.
Known, unknown, controllable, and uncontrollable troubles will come one after another, and they will rush towards us. Nanyi is a cheap name, and so is you Zheng Wenqi. The Manchu-Han banquet will not leave us a seat.
What we have to do is to pick the freshest leftovers from the trash can to feed ourselves, accumulate strength, and wait until one day we can soar into the sky, fly out of the trash can, and let you and I roam the world.
Secretary Zheng, you have to be Swallowtail Butterfly's pioneer, which will be very hard, but I guarantee that you will get returns that exceed your expectations, and your efforts will be worth every penny."
"Thank you very much, Nan Sheng. I will definitely do my best."
"Forget it if you work hard, you have to do the work, and you have to take care of yourself." Nan Yi waved his hand and said, "Go to the workshop and then the workers' canteen."
"Nansheng, please come this way."
The area of Swallowtail Butterfly Garment Factory is not very large, about 1,200 square meters in total, surrounded by a yard.
The main building is a four-story factory building covering an area of 500 square meters. The first floor is temporarily idle, and the second floor is a dormitory. There is also a small office area with only two offices; Zheng Wenqi has an independent office, and the other office is under the fortress.
Factory clerk.
The third and fourth floors are both production workshops. The third floor is saturated and the fourth floor is not yet in use.
On the left side of the yard is a one-story warehouse, where the finished clothes are stored for easy transportation; on the right side is a relatively simple canteen. There is a fee for the canteen, and each worker receives a monthly meal subsidy.
As long as they are not big fish and meat eaters, the meal supplement given to them is enough to last them from the beginning of the month to the end of the month.
"Secretary Zheng, oh, no, Mr. Zheng, during meal time, order a dish that the workers usually make, and then fry a small stir-fry and bring it to your office."
Chapter completed!