Siheyuan: a better life

Chapter 576 OEM!

While Wu Aiguo was dealing with Wen Li's hospitalization in the hospital, in a building in the American Empire on the other side of the ocean, a middle-aged man looked at several products placed on the table and asked his subordinates with a serious look on his face. Said: "David! Have you checked the supply source of Xiangjiang Red Star Trading Company?"

When David heard the middle-aged man's inquiry, he immediately reported respectfully: "BOSS! At our branch in Xiangjiang, after discovering that the products sold by Red Star Trading Company were very similar to our products, we immediately reported to Red Star Trading Company An investigation was conducted on the source of the goods, and it was discovered that the products of Hongxun Trading Company actually came from the Chinese mainland in the east."

When the middle-aged man heard David's report, there was an incredulous expression on his face, and he doubtfully confirmed to David: "David! Are you sure these products come from backward China?"

David heard the middle-aged man's question and felt the doubt in the other person's tone. He nodded with certainty and replied: "BOSS! This is absolutely true. According to our investigation results, first of all, the Red Star in Xiangjiang The trading company asked factories in mainland China to do OEM work for them, and the price they paid was only some grain and rubber."

When the middle-aged man heard what David reported, he looked shocked and confirmed to David: "David! Are you sure that Red Star Trading Company uses grain and rubber to pay for the OEM work of the Huaxia factory?"

When David heard the middle-aged man's question, he immediately guessed what he was thinking. He nodded with certainty and replied: "BOSS! This is absolutely true. Our staff in Xiangjiang once talked to Red Star Employees of trading companies have been exposed.”

"According to the information disclosed by the employee, labor in China is very cheap. In addition, there is a current shortage of supplies. Red Star Trading Company has asked factories in China to help with OEM work. Therefore, these products sold by Red Star Trading Company , the price will be so much lower than our company’s products.”

After hearing David's introduction, the middle-aged man understood why the products of Red Star Trading Company were so much lower than theirs. Thinking of the labor costs in the United States, the middle-aged man immediately saw the opportunity to seize the American manufacturing market. , quickly told David: "David! Call me immediately, book a flight to Xiangjiang tomorrow morning, and then contact the boss of Red Star Trading Company. I want to meet with him."

After hearing the middle-aged man's instructions, David immediately walked to the desk nearby, picked up the phone on the desk, and helped the middle-aged man book a flight to Hong Kong.

One morning a few days later, Wu Aiguo had just arrived at the office. Lin Xuemei followed closely into Wu Aiguo's office and reported to Wu Aiguo respectfully: "Director Wu! Telegram from Xiangjiang Red Star Trading Company!"

After hearing Lin Xuemei's report, Wu Aiguo took the document bag containing the telegram from Lin Xuemei, smiled and ordered Lin Xuemei: "Sister Xuemei! You go and do your work first!"

After Wu Aiguo watched Lin Xuemei walk out of the office, he tore the seal on the document bag and took out a telegram from the document bag.

Seeing the contents of the telegram, Wu Aiguo showed an expression of joy on his face and said to himself: "I originally thought that it would take at least half a year before Western manufacturing giants came to visit, but it didn't happen. Thinking that it had only been half a year, I didn’t expect that General Electric Company of the United States would come to our door so soon. If we can win the OEM contract from this company, it will undoubtedly be a great event for China’s manufacturing industry.”

When Wu Aiguo said this, he immediately pressed the phone on his desk, shook the phone handle quickly a few times, then picked up the phone and said politely: "Hello! Could you please transfer me to the Ministry of Industry? This is handled by Kou. Telephone."

"Hello! This is Kou Ban, who is it?" The call was quickly connected, and a middle-aged man's questioning voice came from the phone immediately.When Wu Aiguo heard the middle-aged man's inquiry, he immediately smiled and said to the middle-aged man: "Hello, Director Zhang! I am Wu Aiguo. Are you free, Mr. Kou? I have important things to see him."

"Director Wu! Good morning! Mr. Kou once told me that as long as you call, no matter whether he is free or not, you must report to him as soon as possible. Please wait a moment." Director Zhang heard Wu Aiguo's words, Thinking of Boss Kou's explanation, he replied politely.

"Xiao Wu! Good morning! I heard from Xiao Zhang that you have something important to talk to me about?" Wu Aiguo waited for about three to 40 seconds before Boss Kou's questioning voice came from the phone.

When Wu Aiguo heard Mr. Kou's inquiry, he smiled and said to Mr. Kou: "Mr. Kou! Good morning! I just received a telegram from Xiangjiang. General Electric Company of the United States approached Lou Zhenhua yesterday, intending to sell his company Some of the products are handed over to our factory for OEM."

Boss Kou on the other end of the phone had a puzzled expression on his face when he heard the news Wu Aiguo told him, and asked Wu Aiguo curiously: "Aiguo! What is the OEM you just mentioned?"

When Wu Aiguo heard Boss Kou ask about the meaning of OEM, he realized that people in this generation had no idea what the so-called OEM meant.

Realizing this, Wu Aiguo quickly explained to Mr. Kou: "Mr. Kou! In Western countries, labor costs are very high. Normally, the labor cost of products produced in a factory is between 30.00% and [-]%."

"If the products produced by this company have no competitors in the Western market, the labor cost will be completely negligible for this company. If it has many competitors and wants to monopolize the entire market and eliminate other competitors, the only way The only way is to start a price war."

"A small part of the products sold by Red Star Trading Company are also sold in Western markets. However, because our labor costs are low and our prices are lower than equivalent products in other countries, our products can seize the market in the short term."

"General Electric Company of America is the largest electrical appliance company in the United States. After our products were sold to Western countries, because of the low price, they attracted the attention of General Electric Company of America. Just the day before yesterday, the boss of General Electric Company personally approached Lou Zhenhua , I want to use Lou Zhenhua to help bridge the gap and send some products to our domestic factories for OEM."

After hearing Wu Aiguo's introduction, Mr. Kou finally understood what the so-called OEM was all about. He blurted out to Wu Aiguo and asked: "Aiguo! According to what you said, if we help factories in Western countries to do OEM work, then why not Is this equivalent to working for Western capitalists?”

When Wu Aiguo heard Boss Kou mention the title capitalist, he remembered the current situation in the country. Considering what was about to happen in the future, Wu Aiguo, who did not want history to repeat itself, immediately said to Boss Kou: "Boss Kou! No matter it is a black cat , or a white cat, any cat that can catch mice is a good cat."

"Although OEM is working for Western companies, we can make actual profits. More importantly, we can learn the technology of Western countries through the OEM process!"

(End of this chapter)