"Asia, you mean Hong Kong?" Phil Knight said. Considering Chen Zhiwen's origin, he could naturally guess it.
"Yes, it's Hong Kong, Berkshire Hathaway. Does Mr. Knight know? Their company invested in Hong Kong last year and began mass-producing high-end textiles in Hong Kong. Some of them can also be used to make shoes, and high-end shoe materials can also be used. , plus there is ample cheap labor and experience in shoemaking, it can be used as the perfect supply place." Chen Zhiwen said with a smile.
"I also know a little about Hong Kong's shoemaking industry. I've also heard that the shoemaking industry is very developed, but it's just shoes of average quality, such as slippers, cotton shoes, average-quality sports shoes, etc. Hong Kong seems to be doing a lot of high-end sports shoes. Aren't you coming out?" Phil Knight asked.
"It can't be done, but there is a first time for everything." Chen Zhiwen nodded and said: "I am responsible for all the investment in Hong Kong. Nike also has engineers for high-end sports shoes. As long as we go to Hong Kong to cooperate in production, This problem can be easily solved by handing over production technology to Hong Kong workers."
Hong Kong's textile and shoemaking industry has always ranked first among industrial products in terms of export volume, but they are indeed low-end products, and even mid-range products are rare. High-end sports shoes can be said to be more difficult in the shoemaking field. The field, even the mainland of later generations, has been developing for a long time due to reform and opening up before it can produce high-end sports shoes.
"Is this also Mr. Chen's main purpose?" Phil Knight asked shrewdly.
"Yes, this is one of my main goals, but it is also true to be optimistic about Nike." Chen Zhiwen nodded and said.
In Hong Kong's shoemaking industry, if you really want to make high-end shoes, it is not impossible. Which shoemaking company is willing to invest in research and development? Even if the manufacturing is a bit inferior, it can still be made. Compared with technology, what is more difficult is market.
As an OEM base, there are basically no big clothing or footwear brands in Hong Kong. Even if there are, they are just bastards in a small ditch. In a small place like Hong Kong, they are unlikely to dominate international-level brands. Orders for high-end goods are sent to Hong Kong.
Because high-end brands have high profit margins, production in Europe and the United States is not a problem at all, as they can cover labor costs in Europe and the United States. Another reason is that trial and error costs are high. Although labor is expensive in Europe and the United States, years of development can ensure high quality. In this case, customers The party will not change it at will, because Hong Kong has no experience in this area. If it is not done well, the brand will be ruined.
Therefore, for any region or company without relevant experience that wants to try to make high-tech products, the most difficult step is to have the support of market orders. With orders, they can slowly develop their own technology and production experience.
Investing in Nike is more important for this purpose. Nike has only been established for a few years, but in the 1980s, its development speed increased by leaps and bounds. Then the craze of NBA Jordan became popular throughout Europe and the United States, overwhelming the traditional giant Adidas. As long as you get involved with Nike, Then a huge shoemaking industry chain can be established in Hong Kong. After more than ten years, it is estimated that it can easily create hundreds of thousands of jobs in the mainland.
The most comfortable thing is that you only need to provide a little money, space, equipment, and the guidance of the Nike engineer team, and you don't have to worry about other things. In terms of the market, the Nike team will conquer it. If you invest in Nike, you can follow the dividends. , with the stock exponentially doubling, Asian factories will make money in vain as long as there are no quality problems, because the profits of the factory itself are enough to sustain its own expansion.
Of course, as long as you master the core production capabilities and the time is right in the future, it is not a problem to set up your own brand. Even if it is not as good as Nike, it would be good to mix it into Anta!
"Then how many shares does Mr. Chen want to get?" Phil Knight nodded and asked. He actually knew that it would be better to hold the production in his own hands, but the lesson learned during this period is that it is better for them to concentrate on conquering the market. One factory has almost exhausted their funds and is facing the risk of bankruptcy. Even if this crisis passes successfully, their team will have to consider the issue of trade-offs.
"I heard that Nike currently has a debt of 2.5 million US dollars. I invested 3 million US dollars and I want 30% of the shares." Chen Zhiwen said.
"30% is too much. If this is true, Mr. Chen will be Nike's largest shareholder. Other shareholders of Nike will not agree to such a large investment." Phil Knight quickly shook his head and said.
"This is my condition. If Mr. Knight or Nike's board of directors has other ideas, they can definitely speak out." Chen Zhiwen said with a smile. Asking for 30% of the shares is a big deal. Although Nike is encountering serious problems now, crisis, but bankruptcy is not enough. At most, their vitality will be severely damaged. If they really come up with funds that can solve the crisis for them, buying shares is definitely not a problem, but it is unrealistic to get close to the holding amount.
"I can't make the decision on this matter. Although I am the founder, the board of directors does not have the final say alone. I need to go back and study before I can make a decision." Phil Knight thought for a while and said.
"Of course. In addition, I also hope that your board of directors can decide on Hong Kong as a supplier to Nike as soon as possible." Chen Zhiwen paused and said, "As long as you agree, I will be responsible for all the investment in the entire factory. In addition, We also pay for the engineers hired from Nike, so you can get a very cooperative supply factory without any investment. In terms of the factory’s retained profits, we just follow the rules of the industry.”
Chen Zhiwen doesn't look down on the profits of a foundry at all. How much profit can Nike make now? The key is that if this industry chain technology is in your own hands, many things will be much more convenient in the future.
"Okay, we will consider this proposal carefully." Phil Knight nodded and said.
"Then I hope to get good news as soon as possible. I will return to Hong Kong in a few days. This is my business card. If you have any news, please inform me as soon as possible." Chen Zhiwen handed over a business card of his own with his name on it. With two phone numbers and fax, we guarantee that we can find the person within one hour.
"Okay." Phil Knight took the business card. It only had his name, phone number and fax number, and no basic information. It was completely different from the business cards of these people.
But what he didn't know was that Chen Zhiwen had too many identities to fit on a business card, especially an English business card with longer words.
Chen Zhiwen continued: "In addition, if the cooperation is successful, Nike shoes can be used in Red Bull's future advertisements whenever possible. This will also be a very big publicity for you."
(End of chapter)
