Why are Australians also buying cotton? Nansha has just started operations, and tens of thousands of dollars have been invested but nothing has come of it. If the price of cotton urgently needs to rise like this, how can the factory continue to operate?
Thinking about it again, next door to Wanguo Textiles is the Guangzhou National Cotton Textile Factory - such a large piece of land is enclosed to build a factory, and tens of thousands of spindles must be turned together when it is started. Isn't it normal for Australians to start farming cotton now? !
However, if this happens, cotton prices will only rise in the future. Chen Lin's heart couldn't help but tighten.
However, Dong Jizhong's next words made him feel more at ease: "However, the price of cloth has also increased recently. I heard that Australians are buying in large quantities recently."
"Why do Australians want to buy in large quantities?" Chen Lin became interested and asked.
"Do you know Nanyang Company?"
"I know, I know, it was established not long ago, and it said it wanted to develop Nanyang..."
"To develop Nanyang, we will send landless refugees from all over the country to Cochin and Nanyang to open up wasteland and cultivate land. These people need food, drink, clothing, seeds and farm tools for farming. Australians cannot prepare them all. It is difficult for them to prepare them all." Why don't we ask them to go with bare buttocks and empty hands?" Dong Jizhong said with a smile, "Now in Guangzhou city, not only the price of cotton has increased, but also the price of food and various groceries. In the past, the price of hardware has been falling all the way - the least valuable. The nails have increased a lot. Why? These are items used by immigrants!"
Dong Jizhong's words made Chen Lin enlightened. I have been immersed in setting up factories these days and have no understanding of the outside market.
"That's it! People who are engaged in business should have eyes and ears in all directions, and always grasp the dynamics of business conditions!" He said to himself.
"Little brother, you don't have to blame yourself," Dong Jizhong said with a smile, "Since cotton prices have increased significantly, the price of cotton yarn has naturally increased a lot. Whether you have cloth or yarn, you can make a profit by selling it now. Nowadays, the average price of cotton cloth in Guangzhou has increased by 15%, and the price of middle- and lower-grade cotton has increased even more."
He seemed to have thought of something: "I will help you to tell the shopkeeper about the cotton matter when I get back. Since you are Mr. Wu's cousin and the shopkeeper of Nansha Factory, you are one of my own. I will definitely help you with this matter." I am determined not to let you go home empty-handed."
"Thank you sir!"
"You don't have to thank me. We are our own people!" Dong Jizhong looked at him with an expression that you understand, "Mr. Wu also mentioned you to me many times in the past, saying that you are the most honest and honest old man. Children of this family, now it turns out that this is really the case, I can trust you when you are in Nansha!"
"Yes, I will definitely remember my kindness in knowing you."
Dong Jizhong saw that the young man in front of him was very knowledgeable and nodded secretly in his heart.
His father and eldest brother were both officials in the Ming Dynasty. In addition to their salaries, various gray incomes were secretly remitted back to Guangzhou through Delong's channels in the north. This was one thing; but their gray income alone was actually limited. , after all, my father and brother are both military attachés, and they don’t work in places like Guan Ning where it is easy to get rich. Gray income is actually very limited.
To maintain the family's well-clothed and well-fed life without deterioration, investing in hair growth is the only way. The Nansha Textile Factory is currently the largest investment project of the Dong family.
He now has a very good impression of Chen Lin. Although his business acumen is obviously not as good as Wu Yijun's, he is indeed a person who can get things done.
"This Wanguo Market is an excellent place to understand the market. Renting a shop here, whether to do business or not is secondary. The key is to be aware of the ever-changing market. Australians do have vision and ideas!" Dong Jizhong said, "This The city of Guangzhou is full of gold. As long as you go and pick it up, I didn't believe it at first - but now I believe it. There is no wine here, so I will drink tea instead of wine. I wish you both a prosperous business and a lot of money." After that, , picked up the tea cup.
Wu and Chen hurriedly brought a cup to congratulate Dong Jizhong. After another polite conversation, Wu Yijun saw that the time was almost up, so he motioned to Chen Lin and they left.
Chen Lin originally wanted to talk to Dong Jizhong about cotton procurement - since the Dong family has a way in the north, this is a long-term solution. After walking out for a few steps, he complained: "...I still have a few words to say to Mr. Dong."
"What's the rush?" Wu Yijun said with a smile, "It's just about cotton. Don't worry, although he is a dandy, he still cares about his own business. We who are running errands, don't ruin his fun, the time is almost... "
"when?"
"Look at the clock tower over there - can you understand the Australian digits on it?"
"Isn't that just Arabic numerals? It will be two o'clock soon."
"I didn't expect you knew a lot!" Wu Yijun quietly looked around and said, "Look across the street."
Chen Lin saw that his cousin's description was obscene and knew it was not serious. I didn't dare to move too much, but I just turned my eyes slightly and saw a small sedan arriving in front of the tea house. The shopkeepers and waiters came out to greet them. The curtain of the sedan was lifted, and a woman dressed in Ming Dynasty came out...
"Could it be that this belongs to Mr. Dong..."
Wu Yijun nodded silently. After walking for a long time, he whispered: "This is a woman that Dong Erye has adopted. She has never been on the road. Erye thought that people in the city were too discerning, so he bought her in the living area here. A courtyard and a shop were rented for her to run."
"What? Let women do business?"
"What's so strange about women doing business?" Wu Yijun said with a smile, "There are so many women in the city who sell liquor as cowards..."
"Those are all small businesses, but everything done in this market is big business!" Chen Lin said puzzledly, "Besides, Mr. Dong is not a merchant himself, and he doesn't understand the ways of doing business. To open a shop for a woman, What business can be done?”
"Who said there are only big businesses here? Isn't District A a place for small businesses? This woman's shop is in District A, and she is in the business of exporting silk fans, handkerchiefs and other fine embroidery products. Although the business has just opened , but we have already received several orders from Europeans.”
Wu Yijun said with a little envy: "This Second Master Dong is really talented, and he can actually get along with such a woman! She is capable and beautiful."
Chen Lin was not too interested in this kind of tidbits. He asked: "Cousin, where is our shop rented? I see a lot of people here to see the shop..."
"You don't have to worry about this. I have already spotted a shop, and yesterday I asked the manager to come over and bid. Although the highest bidder wins, there are so many shops in the market, and the place I chose is not a special Feng Shui treasure. Probably no one will compete with me. Nine times out of ten, I can get it at the lowest price."
They are running a wholesale business here and are not as sensitive to store location as retail, so they have no intention of investing too much money in renting a store.
After that, Wu Yijun took him to a shop in District B. The door of the shop was open and there were workers inside who were decorating it. Timbers and bricks were piled all over the floor.
Wu Yijun told Chen Lin that the annual rent here is two hundred yuan. For Guangzhou, this price is also the rental price for first-class shops in the downtown area.
"Although the rent is expensive, it is worth it. I also bought a courtyard in the living area here. I will stay here often from now on."
"So, what about the dried fruit business that Master used to have?"
"Let Ah Huan take over. He is almost 30 years old. There is no need for me to keep an eye on him every day." Wu Yijun said with emotion, "I am about to realize my destiny. While my body and bones are still of use, You have to work hard for a few years, this opportunity to make a lot of money is not something you come across casually."
The two of them wandered around the market, chatting with familiar merchants and chatting about the current market prices of related products. Although some shops are not officially open for business, the waiters and shopkeepers have already settled in, and they also go in to chat.
After walking around this time, it was already past four in the afternoon. The two took the ferry and returned to Guangzhou city. Wu Yijun was very interested in talking and asked someone to prepare some food and drinks. The two of them chatted about things and they talked about great things in the future.
Compared with Wu Yijun who was in high spirits, Chen Lin looked worried. Upon seeing this, Wu Yijun persuaded: "Alin, are you still worried about cotton? Don't worry, Mr. Dong will definitely help you solve it. He will definitely not stop the factory. After all, he has a share in this..."
"Cousin, that's not what I'm worried about." Chen Lin said, "I'm most worried about the price of cotton now... Based on what I heard from people in the market today, I'm afraid there will be a huge disturbance."
"Are you talking about paper cotton?" Wu Yijun waved his hand indifferently, "As long as you don't speculate, nothing will happen! Besides, the cotton market in the second half of the year may be even higher."
"Cousin, have you ever thought about one thing? Cotton has skyrocketed. Although cotton cloth and cotton yarn have also risen, the increase is much smaller than that of cotton."
The supply of cotton in the market has not increased, and has even decreased in the short term. However, due to the promotion and introduction of new machines, the output of cotton cloth and cotton yarn has increased sharply, and there has actually been a downward trend in prices.
"...I just summarized and calculated the quantity and price of cotton purchased by Nanyang Company from the "Business Monthly" in the past few months, and then compared the prices before this wave of market prices at the beginning of this year, deducting the price caused by Nanyang's purchases The rising factor, in fact, the price of cloth is falling.”
These words attracted Wu Yijun's attention. He put down his wine glass and asked, "What next?"
"Nanyang is just a company, and there is a limit to the cloth it can buy. And last month, its purchase volume has been reduced by half year-on-year. If it continues to decrease like this this month, the yarn and cloth in the market will When there is a surplus, prices will inevitably fall..."
A typical situation in the commodity market is to chase the rise but not the fall. Once the price of a certain commodity begins to fall, various parties will often panic sell the commodity, further suppressing the price of the commodity. Falling below the cost price can happen in an instant!
(End of chapter)
