There was a lot of noise in the conference room.
Zhao Xueyao's face was calm, and there was even a hint of a joke in her eyes.
She naturally knew what was going on at the Taoxian Hardware Factory.
Not to mention that the people at the hardware factory didn't believe it, she didn't believe that Li Xiucheng could revive this dead and broken factory.
Li Xiucheng frowned.
He had worked at the Xingrong City Machinery Factory and knew more or less that this group was difficult to deal with.
Traditional concepts are deeply ingrained, and they are used to being lazy even if they have their own way out.
But if you want to realize your plan, Director Chen's group of people is the first step that must be overcome.
"Everyone, please listen to what I have to say."
Li Xiucheng waved his hand to signal everyone to quiet down.
"In order to turn losses into profits, spending huge sums of money to upgrade the production line is indeed one way, but I don't think you should know that Jiang City cannot afford this money, and Zhao Group does not have the budget for this."
"But apart from that, there are no other ways. In the final analysis, the market is our main battlefield. Instead of asking for help from others, it is better to ask for help from yourself."
Li Xiucheng hasn't finished speaking yet.
Chen Weiguo smiled and said:
"Manager Li, we were born and raised in the Taoxian Hardware Factory. This is our root. We don't want the factory to fall down from the bottom of our hearts."
"In order to solve the sales problem, several deputy factory directors and I almost broke our legs. It is no exaggeration to say that we have traveled throughout Da Nan Province and even neighboring provinces."
"We have fought for other policies that should be fought for, and we have spared no effort in working hard for those that should be worked for."
"Maybe it's because our group of people in charge are not capable enough. We are really helpless now."
Chen Weiguo spread his hands with a wry smile on his face.
Another deputy factory director also said: "I am responsible for the production. In the past few years, the quality of our hardware factory's products can be said to be better than ours in Da Nan Province."
Someone else continued: "Lao Wang is right, it's not that we haven't worked hard, it's that business is not doing well now."
"Several leaders, of course I know that everyone is dedicated to the good of the hardware factory."
"But I personally think that your efforts have not worked, mainly because the direction is wrong."
Li Xiucheng looked at everyone: "The main problems with the decline of the hardware factory are: first, the demand in the market has decreased, and second, we have too many competitors."
While talking,
Li Xiucheng took out a document from his pocket.
"This is a statistical table I made before I came here. It includes the situation of all small agricultural equipment manufacturing enterprises in Da Nan Province."
"Everyone can pass it around to each other."
"Taoxian Hardware Factory is one of the first small agricultural tool manufacturers established in Da Nan Province. When the factory was first established, the supply of products exceeded demand because the market was blank. We could sell as much as we produced."
"Time has changed, and with the needs of agricultural economic development, small agricultural tool manufacturing companies have sprung up in the past few decades. There are five companies in municipal cities in Da Nan Province alone, and the scale of each company exceeds Taoxian Hardware Factory.”
"And because the technical threshold for producing products like hoes, sickles, shovels, etc. is relatively low, not only state-owned enterprises, but also many townships and even village-run collective enterprises are joining this industry."
“Do you know how many companies and workshops there are in Da Nan Province that produce small agricultural tools?”
"84 families!"
Li Xiucheng's words echoed in the conference room.
"84? Are there that many?"
Chen Weiguo was stunned for a moment, picked up Li Xiucheng's statistical table and looked at it carefully, his face gradually darkened.
Deputy Factory Director Wang said nonchalantly: "Manager Li, although you have more than 80 workshops here, I think there are close to 70 or so small workshops at the township level, or even at the village collective level."
"Director Wang, everyone should understand why the ant kills the elephant. These small workshops are not large in scale, but the point is that in comparison, they have much less pressure than us in terms of wages, benefits, medical care and other benefits. Plus the expenses in some other aspects are almost negligible, so the cost is much lower than ours.”
"In addition, they are deeply rooted in various towns and villages, and the products they produce can be dumped locally to the rural front lines in their respective regions."
"So, even if the quality of the products is not as good as ours, with low prices and local location advantages, there is no way for our products to enter their markets."
"Even if the market demand for small farm tools remains unchanged, there are more than 70 small workshops with dozens of people scattered like stars in the sky in Da Nan Province. They have eaten up the rural front-line markets, even to the bones. None left!"
What Li Xiucheng said was unequivocal.
As the last words fell,
The conference room was suddenly silent, and everyone couldn't help but feel startled.
The products produced by Taoxian Hardware Factory are mainly sold to rural areas.
If rural markets are completely eaten up, who else can their products be sold to?
The deputy directors and senior managers of the hardware factories also had pale faces.
Chen Weiguo looked solemn,
He used to go out with people from the factory to do sales, mainly in the municipal market. He really didn't go deep into the rural front lines to understand the situation.
I have always thought that the competitors of Taoxian Hardware Factory are some large state-owned enterprises at the municipal level.
But now Li Xiucheng said this.
Only then did he understand who the real opponent of Taoxian Hardware Factory was...
"Manager Li, to be honest, I admire you very much, you make me look at you with admiration."
Chen Weiguo hesitated and said: "If you follow what you said, if we want to revitalize the hardware factory and reopen the market, there is only one way, and that is to continue to reduce prices?"
"No!"
Li Xiucheng shook his head: "Director Chen, we are a company with nearly 500 people. In addition to workers, there are also a number of retired cadres. There is no way to get rid of the personnel cost. We have to compete with these small workshops where barefoot people are not afraid of wearing shoes. A price war is unrealistic."
"Then after all, the problem is back to the original point, and we still have to spend money to buy a production line!"
Deputy Director Wang patted the table, his voice filled with emotion.
Li Xiucheng glanced at the other party: "Director Wang, if you move the dead tree and move the living person, our thinking should not be limited to a dead end."
"you…!"
Deputy Director Wang looked unkind.
Chen Weiguo, who was standing next to him, hurriedly stood up as a peacemaker: "Don't get excited, Old Wang. We old guys are a little behind the times in our thinking. It's better to listen to the opinions of young people."
"Okay, I want to hear what he can say in the end after going in such a big circle!"
Deputy Director Wang sat back in his seat angrily.
"Manager Li, don't worry, just keep talking."
Chen Weiguo smiled.
"I have just analyzed the market situation clearly with everyone. We cannot fight a price war, and there is no money to upgrade the industry."
"So, I think the development direction of hardware factories may need to make appropriate changes."
Li Xiucheng continued: "Now it is not a planned economy. We do not produce what the market wants. Instead, we produce what the market demands. I have a new wood processing and production project here that can be added to the existing Based on the personnel and facilities, immediately put into production..."
