1627 Rise of the South China Sea

Chapter 3672

Objectively speaking, there are still many products in the Indian Peninsula under the rule of the Mughal Empire, but most of them do not have unique commercial value, or they overlap with the products of the areas under the jurisdiction of Hai Han, and therefore do not have much competitiveness.

For example, although there are many varieties of spices produced here, such as pepper, Sichuan pepper, star anise, fennel, cumin, turmeric, etc., most of them were introduced to the country by Hai Han a long time ago. Moreover, the varieties brought by the time travelers from hundreds of years later are better, and the output brought by large plantations can also reduce the cost to a lower level than the place of origin.

The spice business was a great business for the Portuguese. As long as they were shipped back to Europe, they could make a lot of money. However, it was not attractive to Hai Han. It can be said that almost all agricultural products produced in the Indian Peninsula were basically in this situation.

As for high-end handicrafts with unique styles like gold and silver thread embroidery, there are no competitors in the market, and they are obviously more valuable in the eyes of Hai Han merchants. Moreover, compared with other goods, fabrics are smaller in size and lighter in weight, but more valuable, so the shipping cost is also lower.

For cross-border trade involving voyages of thousands or tens of thousands of miles, such highly cost-effective products are naturally more likely to be favored by merchants.

The only problem is production capacity. These exquisitely crafted but complicated embroideries are destined not to have too much output. Once Hai Han merchants get involved, they will have to compete with European merchants. It is foreseeable that the price of these things will soon be raised.

And the speed of this rise is even faster than anyone imagined.

The very day after Singh visited Qian Tiandun, Hai Han merchants began to purchase high-end fabrics in the Surat market.

For Dong Shangyi and Li Yuande, purchasing a few hundred pieces of fabric here was just a small business that they had decided on temporarily. However, due to limited local production capacity, most of the fabrics on the market had been pre-booked by Portuguese merchants.

The Hai Han merchants, who refused to believe in evil, immediately resorted to the universal method of raising prices. Based on past experience, this trick would have obvious effects no matter where it was.

Sure enough, after some communication, the local merchants finally agreed to make the deal with the Hai Han people by increasing the price by 20%.

The Portuguese merchants here also rushed here soon after hearing the news, trying to save the situation and get the local merchants to cancel this temporary transaction. After all, the Portuguese had already paid the deposit in advance, so they should get these goods that suddenly became in short supply first.

But the Ah San of this era had clearly developed the ability to defraud. They immediately raised the price and demanded that the Portuguese increase the price by 50% before they would withdraw the deal they had just reached with the Hai Han people. They also kept finding various excuses to shirk the Portuguese's request to return the deposit, as if they were planning to eat up the money.

It is obvious that there is no such thing as business credibility for these local businessmen, and any transaction can be regretted and started over at any time.

This also opened the eyes of Dong Shangyi and Li Yuande who were waiting to pick up the goods. The trading rules they followed did not allow for such a slap-on-the-shoulder approach. They believed in keeping their words and cherishing their own business reputation, but the locals obviously did not have such taboos.

"No wonder the general specifically reminded us to be extremely careful when doing business with local merchants. It seems that they are really unscrupulous profiteers!" Dong Shangyi was also frightened when he saw this situation.

Li Yuande said: "It seems that before the goods are loaded on the ship, we have to keep a tighter eye on our wallets and cannot just pay them the full amount!"

After witnessing the behavior of the local merchants, the two immediately put these profiteers on the untrustworthy list and gave up the idea of ​​long-term cooperation with them. Even if they want to purchase embroidery and knitwear here for a long time in the future, they must find a more reliable source of supply. Otherwise, no one can stand the fact that they keep changing their terms every few days.

But the local merchants apparently did not realize there was anything wrong with their actions. They immediately told the Hai Han merchants that if they wanted long-term orders, they would have to pay them a 30% deposit first.

Dong Shangyi really didn't understand. These people clearly knew that they had witnessed their trade dispute with the Portuguese, but they could still pretend nothing had happened and make such a request. How did they get such a thick face?

In comparison, although the Portuguese are competitors, their business reputation is much more reliable. At least they will not engage in such fraudulent activities after reaching an agreement.

The local Portuguese Chamber of Commerce then found Dong Shangyi and Li Yuande, hoping to negotiate and cooperate with them to stabilize market prices.

The Portuguese hoped that they would give up the practice of purchasing at a higher price, and that the Portuguese Chamber of Commerce would continue to control the local supply of goods, and then increase the price by 10% and resell some of the goods to Hai Han.

This proposal seemed reasonable, and it was equivalent to helping the Hai Han merchants lower the purchase price so that they wouldn't have to raise the price by another 20%.

The idea sounds good, but there is a small problem, that is, the supply of these handicrafts is limited. In order to make more profits, the Portuguese Chamber of Commerce will of course ship most of them back to Europe for sale.

As for the part that is resold to Hai Han at a higher price, it is conceivable that the quantity will not be too large and it is likely to be unable to meet the purchasing needs of Hai Han merchants.

After some bargaining, the two sides finally agreed on a rough number. From now on, the transaction will be held every three months in Surat, Goa or Hamban Port, and the next transaction location will be decided by both parties through consultation.

6◇9◇Book◇Bar

In terms of the supply volume that the Portuguese finally promised, the trading companies behind Dong Shangyi and Li Yuande did not actually make much money from it. However, since Hai Han’s commerce has entered this place, a large number of Hai Han industrial products will be continuously delivered here in the future. That is the real means for Hai Han’s trading companies to make profits.

Of course, I have to be more careful when dealing with local businessmen in the future. After all, the businessmen and scammers here are almost two sides of the same coin, and if you are not careful, the other party may succeed.

After this incident, the two men also had a clearer understanding of the local business atmosphere. They agreed that Qian Tiandun was unwilling to establish a colonial settlement in the Indian Peninsula, probably because he understood the temperament of the natives here and had no intention of absorbing and naturalizing the locals.

As for how the Portuguese got along with the local indigenous people during the hundred years of colonization of the Indian peninsula, they probably suffered a lot and knew the ups and downs of their situations. Anyway, judging from the attitude of local merchants towards the Portuguese Chamber of Commerce, it seems that they did not have much respect or awe.

Dong Shangyi and Li Yuande regarded each other as competitors, but when dealing with foreigners, they also tacitly stood on the same side.

During this trip, they both discovered that each other still had some admirable qualities, and the hostility between them was slowly being resolved.