Through the wealth life

Chapter 378 The Benefits of Pengcheng Special Zone

As Western countries such as the United States and France began to increase import tariffs on goods, this undoubtedly made the competitiveness of Xiangjiang's products decline with the increase in local prices, making them unable to compete with local products.

Due to the increase in tariffs on many OEM products, some companies in the United States choose local production companies for OEM, which is a huge blow to Xiangjiang Industry.

In order to continue to obtain orders from the United States and some European countries, companies in Xiangjiang have to watch dramas to reduce their own production costs and provide them to orderers at lower prices.

The rapid rise of Xiangjiang's economy has led to a rapid increase in labor costs. It is obviously impossible for the Xiangjiang factory to significantly reduce costs, and the Pengcheng Special Zone not far from Xiangjiang has entered their eyes.

The labor there is many times lower than that in Xiangjiang. If the production plant is established there, their cost will be reduced by 20% to 30%, which will be quite beneficial to the export of their products.

They are also seeing the development there now. The Li Group's development in the Pengcheng Special Zone for nearly two years has not only had no problems, but the group has grown in size.This also gives them great confidence in investing in Pengcheng, and the current world situation does not allow them to make changes. The high cost of Xiangjiang prevents them from continuing to receive orders from Europe, America and other countries.

On Xiangjiang's side, Wu Jiayuan, vice president of Hongyu Group, also reported the situation of Hongyu Group to Li Guangyu.

Since Hongyu Group has built its own brands, coupled with the continuous expansion in the United States in the past two years, and the continuous promotion of Xinghong Sports Group, Hongyu Apparel Group has its own brand stores in various cities in the United States, and its turnover accounts for Hongyu Group has a 30% share, and the 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 still sells at the current price, Hongyu Group can still make a good profit, but don't think about the high profit as before.

This time Wu Jiayuan came to ask Li Guangyu whether those brand stores in the United States need to increase their sales prices in response to the increase in US tariffs.

After Li Guangyu thought about it, the price still needs to be increased. The United States has imposed tariffs, and his own specialty stores are indifferent to it.This makes American citizens think, co-authoring Hongyu Group's original selling price is so high, and it makes money in such a way, labeling Li's Group as a black-hearted businessman.

Li Guangyu said: "Ms. Wu, please inform all the specialty stores in the United States to post a notice to me. Due to the increase of the US government's 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. Our current price has been continuously promoted by Xinghong Sports Group for the past two years, so that the citizens are more accepting of our brand. This time we raised the price again. If the price is lowered, I am afraid that a large part of customers will be lost. After all, when the income of the people 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 price must be increased, which is also a response to the policy issued by the US government.As for retaining customers, activities are carried out by various districts, so that citizens can feel the benefits of Li's Group.

Li Guangyu said: "Ms. Wu, after the price increase, you ask the United States to do more activities, discount sales, seasonal clearance, anniversary celebrations, etc. Just pull down the price, so that citizens can feel that they are buying comparable value."

After listening to Li Guangyu's suggestions, Wu Jiayuan also felt that this was the best way at present.The increase in prices does not have much impact on the upper-middle-class families in the United States. When these activities are held, they can attract the desire of ordinary families to buy, so as not to cause the loss of customers of Hongyu Group.

After entering August, Li Tingwei, the director of the Pengcheng Special Zone, was very busy, and at the same time he was in a very happy mood. Although he continued to meet the merchants who came to Xiangjiang every day, he didn't mean to be impatient at all, and kept giving Various businessmen 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 Pengcheng Special Economic Zone had come. The huge human resource advantages and low cost advantages on his side were not comparable to Xiangjiang. With the rise of protectionism in various countries, Xiangjiang Industry If they want to continue to develop, they must reduce their own production costs, and Pengcheng, which is close to Xiangjiang, is their first choice.

Li Tingwei said at the office meeting of the Pengcheng Special Economic Zone: "Comrades, the current situation is quite good for our special zone. Many entrepreneurs in Xiangjiang hope to reduce their company's production costs so that they can be competitive around the world. The labor cost here is more than [-] times that of our side, and our huge advantage is very attractive to Xiangjiang Industry in this period of economic crisis in the world economy."

Li Tingwei asked all departments to actively receive the Xiangjiang businessmen who came to Pengcheng Special Economic Zone, actively answer their questions, and strive to allow them to establish production companies in Pengcheng Special Economic Zone to accelerate the development of Pengcheng Special Economic Zone.

One of the staff said: "Director Li, many businessmen who come here will want to visit Pengyu Group, but if we lead them to visit too many times, it will still have some impact on Pengyu Group. Besides, the interior of Pengyu Group is not peaceful these days, Ms. Li Cao is still stationed in Pengyu Group, and Mr. Zheng Dong, the president of Hongyu Group, still hasn’t returned to Xiangjiang.”

Cao Weiqing and others have been here for 6 days. Li Tingwei naturally knows some things that happened in Pengyu Group, but these are all internal affairs of Pengyu Group, so he can't ask too much.

He himself didn't expect that Pengyu Group would provide such a high salary to the management, and there were still people who wanted to reach out. He knew that the management salary from Xiangjiang was the same as that from Xiangjiang.One month's salary is equivalent to the salary of ordinary workers for one or two years, and it is still not satisfied.

Li Tingwei said: "In this regard, I will negotiate with the senior management of Pengyu Group so that we will avoid affecting the normal production and operation of Pengyu Group when we visit."

Li Tingwei also knows that the Pengyu Group is now a banner for their special zone to attract investment. The huge influence of the Li Group in Xiangjiang also means that the merchants who come to Xiangjiang will only make their own decisions after seeing the real 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, it is the first Pengyu Group to come to the special zone and trust the government.Li Tingwei also hopes that Pengyu Group can continue to operate in a healthy and stable manner together with the special zone.

While Li Tingwei was still in the meeting, another Xiangjiang businessman came to the special zone, but he did not come to Li Tingwei, but went directly to Pengyu Group and called on Cao Weiqing.

This person also controlled a well-known clothing company in Xiangjiang, and his son was Cheng Shouzhong.

……

(End of this chapter)