Chapter 395 From Subcontracting to Assembly Line [Request Full Order]

The villagers of Shanghuai Village are different from those in other villages. In addition to being able to work for Lu Yang’s garment factory, they can also get an extra share of the year-end dividends from the coal mine behind the village.

Add the two together, and life becomes easier.

Lu Yang walked to the window.

Looking in the direction where Brother Youren pointed, he saw a lot of newly built factories, so he laughed and said, “This is good, it proves that under my leadership, the villagers have made money.”

Lu Youren smiled bitterly and said, “That’s true, but if this happens, our garment factory’s business won’t be as good as before.”

The villagers are not stupid.

Some people choose to use the money to enjoy life, build a new house, get married, and eat delicious food every day.

It is natural that some people will choose to be like Lu Yang, learn from him, use the money to open a factory, and start their own business. If the money is not enough, they will start with a small workshop and expand slowly step by step.

Anyway, someone has already done it and it was very successful, right?

So a phenomenon occurred.

Now there are the most garment factories in Shanghuai Village, which has almost become a distinctive clothing village. In addition, there are coking kiln factories, coal washing plants and so on related to the coal industry.

It is said that if you live by the mountain, you can eat the mountain; if you live by the water, you can eat the fish. If you live close to the coal mine and close to his Luyang garment factory, which is now famous throughout the province, then wouldn’t the villagers learn from them?
It’s at least a bit of a plus, isn’t it?
After hearing this, Lu Yang unconsciously smiled bitterly, and it also reminded him of the three words “Maotai Town”.

Because there is a Moutai Distillery here, the whole town is filled with sauce-flavored liquor. Every household claims that the Moutai liquor they brew at home tastes the same as the Moutai liquor produced by the Moutai Distillery, and the price is almost less than 1%. But are they really the same?

Lu Yang has been to Maotai Town and has also tasted the bottled Maotai that is said to be exactly the same as the Feitian Maotai produced by Maotai Distillery.

But if you really ask him to say it, he can answer with an idiom: specious.

It is a sauce-flavored liquor, yes, and it is also a liquor brewed by the people of Maotai Town in Maotai Town, but it is not Maotai liquor.

Everyone knows Li Gui and Li Kui, right?
Lu Yang suppressed the bitterness at the corner of his mouth, then smiled and said: “Those who learn from me will live, those who imitate me will die. It has not been easy for my fellow villagers over the years. They finally saved some money and wanted to start a business, but they didn’t know what business to start. Seeing that my garment factory made a lot of money, everyone rushed to catch up with this trend. It is understandable. Brother Youren, you don’t have to mind too much.”

Lu Youren continued with a bitter smile, “Cousin, that’s because you don’t know how hateful these people are. Some of them were clearly processing clothes for our factory before, but turned around and quit without even saying hello. Moreover, the garment processing factories they opened almost all follow our templates and produce clothes that are exactly the same as ours. As a result, the quality of clothes with the same style as ours on the market is uneven. Obviously, some people are greedy for a bargain and bought clothes made in their small workshops, but they insist that they bought the clothes from our factory’s channels. As a result, our after-sales service is also a lot of trouble. Don’t you feel angry?”

Lu Yang was mentally prepared for all this.

So he comforted his eldest cousin, “Didn’t I just say that? Those who imitate me will live, and those who imitate me will die. If they want to imitate, let them do it. Anyway, we can’t hold them accountable now. Well, we should make some changes.”

This is the current environment in China. In the first few decades of reform and opening up, everything was done by feeling our way forward, and everyone was growing in a barbaric manner. If we really want to investigate counterfeit goods and infringements on the market, we have to wait another 10 years until Tokyo University joins the WTO.

Lu Youren asked in confusion: “How can this… be changed?”

He feels that the current production model is already the best and there is no solution, and it is unlikely that a production model could be more cost-effective than this one.

Otherwise, why would all the bosses come to imitate?

If you go out and look around the surrounding villages, you will find that every household with a sewing machine is doing processing for others.

Lu Yang smiled and said, “No, no, Brother Youren, you only see the low cost, money saving, and reduced investment difficulty of this model.

But I don’t see this model. Is it only suitable for start-ups?

Don’t you see how cumbersome it is?

Just think about how much time it would take to cut the fabrics, ship them out, wait for the ladies in the countryside to make them, and then bring them back to pack them?

Also, you said that the factory has been frequently complained about the poor quality of clothes recently. Is it true that all the complaints are from people who have bought fake goods? Is it true that there are no problems with our products at all?
They are also processed in the countryside, and the clothes are also made by a group of rural women stitching one stitch at a time. What about our quality inspection? Ask them whether all the clothes they bring back can be considered to be of exquisite craftsmanship?”

The series of questions confused Lu Youren.

He stammered a little, “But, but we had these problems before, too. Cousin, didn’t they sell well before?”

Lu Yang said with a little disappointment: “Cousin, the past is the past. In the past, we were a sole proprietor of the business. Apart from the government-owned garment factories, no one could compete with us. Besides, I have already lowered the price of clothes. Our biggest advantage is the large quantity and the unlimited supply. But if you go to the market now, you will see that there are clothes with similar quality and style to ours everywhere, and the prices are just as cheap. They use the same subcontracting production method as us. If we don’t make changes, how can we compete? Do we really have to engage in a price war?”

It is not impossible to engage in a price war. In the end, Lu Yang is sure that he will be the only winner. But if he does so, it will hurt the entire manufacturing industry in Zhao County, which is just starting out.

By then, Zhao County’s manufacturing industry will be finished, and Zhao County’s small commodity market will not be able to develop. Will it be of any benefit to Lu Yang?

No, there isn’t.

If you really care about it, in the end, you will end up with a mess.

The corners of Lu Youren’s mouth became more and more bitter, and finally he sighed and said, “It seems that I am really not suitable for doing business. Cousin, tell me what you say, and I will do whatever you say. I will listen to you.”

He didn’t mention quitting the job, knowing that his cousin would get angry again if he said that, so he chose another compromise.

Anyway, it’s always right to listen to my cousin. The good life my family can live now is all thanks to my cousin. In this case, I’ll just be a good tool.

Lu Yang said generously, showing an approving expression: That’s right, if you had said it earlier, I wouldn’t have had to waste so much time talking just now.

So he organized his words and looked at his eldest cousin next to him and said, “I have an idea. Cousin, didn’t you say that it is becoming increasingly difficult to make and distribute clothes in our garment factory? Many rural families with sewing machines, those who used to make clothes for our factory, have now been poached by other newly emerged small factories. And you said that the labor cost is higher than before, and it is not as cost-effective as before. If that’s the case, why not just cancel the distribution?”

what?
Lu Youren showed a surprised expression: “Cousin, isn’t that going back to the old ways?”

Canceling distribution means increased costs, and it is inevitable that new factories, workers’ dormitories, and even canteens will have to be built. In addition, a batch of new sewing machines, overlock machines, and high-speed sewing machines will have to be purchased at the same time. Wouldn’t that require an additional investment of tens of millions? Lu Yang gave him an affirmative answer: “Yes, we have to go back to the old ways. Small factories have their own ways of playing, and large factories have their own ways of playing. In the past, we had no money, so we could only adopt subcontracting, try to keep costs to a minimum, and open up the market with low costs, low prices, and large quantities.”

“Is it different now?”

“Of course it’s different now. There are many people imitating us. The market is now flooded with the same low-quality and low-priced ready-made clothes. If we still insist on following the old path, we will be eliminated by the development of the market sooner or later. By then, it will be too late to change, because the market has been occupied by new manufacturers with unique vision.”

“But the cost…”

“We don’t need to consider the cost for now. What we need to consider first is the quality of our clothes and the efficiency of large-scale production, which subcontracting cannot bring us.

Only through centralized management, assembly line production methods, and centralized inspection can we produce products that satisfy our consumers.

Only in this way can our Meister brand last for a long time, and we will have the courage to deny those fake and inferior products on the market, saying that they are knockoffs and imitations of us, instead of like now, when even we ourselves cannot be sure whether the other party is imitating our products, because our products themselves have problems. “

After Lu Yang finished speaking, he stared into his eldest cousin Lu Youren’s eyes and said, “Brother Youren, what we are doing now is branding. Remember the word brand. It is very important. Whether our garment factory can survive in the future depends on it. Only when the brand is established can we give ourselves a golden body and distinguish ourselves from the small factories that copy our clothes on the market. I don’t have much time. After the Spring Festival, I have to go to Pengcheng again, and then to Shencheng. There are many more important businesses waiting for me to deal with. Can I entrust this garment factory at home to you?”

This is a helpless move.

These are also Lu Yang’s heartfelt words.

He couldn’t tie himself to Zhao County. This garment factory used to be a cash cow, but now, its proportion in all Lu Yang’s businesses has been getting lower and lower. To put it bluntly, it is not even a chicken rib.

As for, why not just sell it?

There are two reasons for this. First, it is a physical and labor-intensive business that can support thousands of people. As long as Lu Yang is not short of money and does not face any further difficulties, he will continue to run it. To be honest, even if it makes a loss, Lu Yang will continue to run it. Don’t ask why. The answer is that he will regard it as a contribution to the people of his hometown.

There is a second reason. After all, this garment factory is the first factory that Lu Yang has opened since his rebirth. Many of his relatives, gossipy aunts and uncles, and distant cousins ​​who he usually doesn’t interact with, have actually been arranged to work in this garment factory.

Of course, if they are Lu Yang’s relatives, they must also be relatives of his cousin Lu Youren. Cousin Lu Youren is a thin-skinned person. Since he became the director of a garment factory, many relatives have come to him to ask for money, hoping to arrange a job for their family members.

Ask Lu Yang?
Lu Yang let him figure it out himself.

So now in the factory, for example, many of the drivers, packers, quality inspectors, cooks for the factory workers, and even cleaners are Lu’s relatives and neighbors.

Oh, by the way, we also have to add the family of You Ren’s wife, Sister Taozi.

Lu Yang turned a blind eye to it. After all, it didn’t matter who was hired to do the job, as long as it didn’t affect the normal production in the factory.

Now there is a question. If this factory is closed, sold, or goes bankrupt, won’t these distant relatives come to him, Lu Yang, to ask for work?
It’s definitely impossible.

Let me put it this way, unless he immigrates to Luyang, otherwise, you have become the richest man in our area, but you are still so selfish and don’t give others a chance to benefit from you. You are so ruthless and unfeeling. Then you can expect your reputation to be ruined, people will point fingers at you, and even your old house will be splashed with drama and your ancestral graves will be dug up in the middle of the night. Don’t disbelieve it, the reality will only be more magical than what is shown in TV dramas.

Even for the sake of his own reputation and to maintain the image of a good man that he had established in Shanghuai Village, Lu Yang would continue to run this garment factory and stick to Shanghuai Village.

Of course, no matter what, reform is indispensable. It is one thing to keep idle people, but the money that should be earned and can be earned should not be less than a penny.

Lu Youren said hesitantly and tangled, “Okay, okay. I am willing to help you, my cousin, but I am afraid that I won’t do a good enough job. When the time comes, I will ask you to come back and clean up my mess.”

After working as a factory manager for the past few months, he was really scared. A garment factory that was expanding every month had shrunk in less than half a year. It can be said that this had greatly hit his self-confidence and enthusiasm.

Lu Yang patted his shoulder and said, “Don’t worry, I can’t clean up the mess. If that happens, I’ll give you this factory. When that happens, you won’t have money to support yourself in your old age like your brother Ren. You can’t live in a big villa, drive luxury cars, or even fly on a plane or cruise ship like the rest of us brothers. Don’t accuse me of being partial to you, your cousin.”

After saying this he even started laughing.

Seeing him smile, Lu Youren also touched the back of his head and smiled foolishly.

“Okay, just do as I say. You should also prepare yourself. If the factory really gets better and better, I am not a stingy person. If others can do it, I can do it too. As the factory director, you can live in a villa and drive luxury cars in the future. When the time comes, we can also learn from foreigners and buy a private helicopter and park it in front of the big locust tree at the entrance of the village, in the spacious threshing ground. When we have nothing to do, we can fly the helicopter to the sky. Wouldn’t it be very face-saving?”

Lu Youren’s eyes lit up when he heard this.

I couldn’t help but patted my chest and promised: “Then I won’t be polite to you, cousin. Don’t worry, leave this garment factory at home to me. I will definitely make it bigger and stronger as you said.”

Lu Yang also laughed immediately, and the two of them whispered to each other for a while, and then Brother You Ren started to go out and prepare as Lu Yang said.

He has something to do next.

After Lu Yang dealt with the matters at the garment factory, another trouble was waiting for him.

Fatty Zhao Shi, do you still remember this person?

Previously, he was the captain of the workers’ patrol team of the county’s state-owned coal mine. Later, he tried to curry favor with Lu Yang, claiming that he did not want to be a dog for Director Ma anymore and wanted to be a decent human being. Then, Lu Yang sent him to be the deputy director of the Chashan Coal Mine in the village, in charge of safety exits.

Of course, in reality, he became Lu Yang’s dog, representing Lu Yang’s interests in Chashan Coal Mine.

Lu Yang has not been in Zhao County recently. This guy called Lu Yang several times, saying that he wanted to meet him and seemed quite anxious. When he asked him what the matter was, he said it was difficult to explain over the phone.

After a while of contemplation, Lu Yang decided to come back to see him and hear what he wanted to say.

As for the reason that it is inconvenient to talk about over the phone.

He had roughly guessed that it was nothing more than walls having ears, and he was worried that his phone call was being monitored. Since this had already happened, then the matter must be complicated. As for the details, he would have to wait until he met the man in person to find out.

(End of this chapter)