2003: Starting with Foreign Trade

Chapter 239 Large-scale Warehousing Base
Zhang Guolong and his wife ultimately returned home ahead of schedule.

Around 11 p.m., the two couldn't hold on any longer and knocked on the door to interrupt their conversation. The son replied that they hadn't finished talking yet and would be staying here tonight.

The couple couldn't be bothered with him anymore; after all, this kind of situation of staying overnight at each other's homes had happened frequently before.

"Xiao Tan already has a girlfriend, isn't it inappropriate for the two of you to sleep in the same room?"

“I sleep in the study; there’s a small bed here.”

"Fine, but you learned how to run a factory from Xiao Tan, so why can't you learn how to find a girlfriend from Xiao Tan?"

"Mom, you should go back now. You have to go to work tomorrow."

The next day.

This was Tan Jincheng's first time visiting Wangjiang County.

The road leading into the county town is fairly wide. It is said that it was specially built in recent years. In the early 2000s, this was still a dirt road, which turned into muddy ground after it rained.

There weren't many tall buildings in the county town, and the environment was not as good as some of the small towns in Zhejiang Province that I had seen in my previous life.

"It's embarrassing to say, but this is indeed our advantage. Last year, the average monthly wage in the county was around 900 yuan. This year it's a little higher, but still just over 1,000 yuan. If Mr. Tan and Mr. Zhang come to the county to set up a factory, labor costs will be a huge cost advantage."

"There's also the land policy. Although we've set up an economic and technological development zone, Mr. Tan and Mr. Zhang have seen that not many companies have moved in. So, the approval process for land can be a bit more lenient."

"As for road traffic, we are indeed not as good as coastal cities in this respect, but we can overcome these difficulties gradually. We are now investing in infrastructure construction. This time, the two bosses donated a lot of money, and we will try our best to use it for infrastructure investment and construction."

"We can offer the greatest possible tax incentives. However, since Mr. Tan's company belongs to the tertiary industry, we cannot offer too many incentives in this regard, and we hope Mr. Tan can understand. But for Mr. Zhang's garment factory, we will try our best to offer the full amount of incentives."

Tan Jincheng nodded. FlashTech's logistics and transfer center was already part of this cooperation plan and belonged to the tertiary industry, so he didn't expect too many preferential treatments. However, the preferential treatment offered by Jinpeng Trading's garment factory seemed quite good.

This is Zhang Xupeng's business, but I also own 30% of the shares in the parent company. I discussed it with Zhang Xupeng until midnight last night. According to Tan Jincheng, I don't want to take advantage of him, so I let him set up a new company independently in his own name.

If you really want to pay, you can just pay according to the marketing fees for advertising planning and consulting. That way, the procedures will be more convenient.

But Zhang Xupeng disagreed. He was also a bachelor and said directly that Tan Jincheng's network of connections was superior to his own in both Beicang and Wangjiang County, and that it could be used if necessary.

Another advantage is that they are also smarter than me. Using the name Jinpeng Trading to create a clothing brand allows me to openly solicit opinions.

Having stepped into the limelight himself, he had long understood how important a business owner's network and mindset were, and he also understood why Jinpeng Trading had developed so rapidly in the first place.

He used to think that clinging to someone's coattails was embarrassing when he stepped onto the stage, but now he just wants to cling to those coattails for as long as possible!

Willing to give up a major asset for a 30% stake? Absolutely not.

Luckily, I was wise to leave 30% of the shares to Xiao Tan. My parents were right, Xiao Tan is smarter than me, but I just had good luck!
"There are no problems with Flash Technology. We've also found the land. Once the approval results are out, I'll send someone to follow up. You can rest assured about this, leaders."

Considering the subsequent expansion of production and its reach throughout Central and Western China, FlashTech attaches great importance to the construction of the Wangjiang County warehousing base, and it is not just a perfunctory gesture to the county.

This is one of the reasons why Tao Qinian had such a good attitude.

Once completed, the FlashCar Anhui Provincial Warehousing Center will consist mainly of four-story buildings, covering an area of ​​200 acres, and will eventually accommodate nearly 50 electric scooters. The design and planning are currently underway.

The project is also divided into two phases. The first phase covers 80 acres, and the second phase is scheduled to begin construction after 2008. At the latest, the entire warehousing base will be completed by the end of 2009.

Logistics companies mainly engage in cargo transportation, warehousing services, loading and unloading, and distribution services. Depending on the nature of the taxpayer, the value-added tax (VAT) payable generally ranges from 3% to 9%.

In addition, logistics companies also have to pay stamp duty, which is usually one-thousandth of the contract amount. Besides that, the largest tax is corporate income tax, and there are also some urban construction tax, education surcharge, etc.

Once completed, the warehousing and logistics center will bring certain employment opportunities and considerable tax revenue to the county. In addition, the land transfer will also increase local fiscal revenue. These can all be considered as the results of Tao Qinian's efforts to attract investment.

For impoverished counties like Wangjiang, there's little cost to be picky about businesses. Having even a medium-to-large-sized enterprise set up shop is already a significant achievement. FlashTech is already a well-known brand nationwide. Moreover, there was an unexpected bonus: Jinpeng Trading's investment in a factory. Both companies have substantial investment areas, making Tao Qinian's decisive move a resounding success.

Unlike FlashTech, which had already made plans, Jinpeng Trading, due to the suddenness of the event, had no plans for this investment and construction.

In addition, Zhang Xupeng also needs to go to France first to secure the operating rights for GXG. Whether or not he has the operating rights is directly related to Jinpeng Trading's factory construction plan. Actually, developing his own brand is also an option, but it would be less sustainable.

In the era of e-commerce, clothing is the first category to benefit from the convenience of transportation and people's pursuit of a higher quality of life as they have more money in their pockets.

Starting with Vancl, and later Taobao-affiliated brands like Jack & Jones, HSTYLE, Jeanswest, and then Li-Ning, all have benefited greatly. This also includes GXG and some other clothing brands in Ningbo.

In terms of the fastest growth, Vancl and HSTYLE are the two. Vancl is similar to a capital game, rapidly expanding through continuous financing, while HSTYLE achieves its growth through precise positioning and a unique team operation mechanism.

By benchmarking against fast fashion brands like ZARA and adopting a multi-brand operation model, it once became the leading player in the online e-commerce apparel industry, transforming from an unknown small factory into a large apparel enterprise with an annual output value of over 10 billion yuan.

Having been a businessman in his previous life, Tan Jincheng had seen many such business cases. His hometown and the city where he lived both had well-established clothing systems, so he was quite interested in and had a deep memory of the success of Han Du Yi She.

HSTYLE was established in 2006, but it should still be a small factory with an annual output value of several hundred thousand yuan. The owner should still be troubled by a large amount of inventory. He only became successful after 2009.

The business strategy was clearly still undecided, which gave visionaries like Tan Jincheng an opportunity.

Regarding Jinpeng Trading's apparel business model, Tan Jincheng plans to apply the successful models of GXG and Han Du Yi She from his previous life. In the early stages, he will use the GXG brand to open offline stores and expand the company's channels. In the later stages, he will use Han Du Yi She's business strategy to develop online e-commerce.

A good model can always be replicated, especially business strategies in the internet sector.

Tan Jincheng plans to stay in the county for three days. The first two days will be spent on various visits, and the last day will be spent discussing the construction of the warehousing center with the county officials. The project will definitely be handed over to the county and the city's construction teams; there's no way around it.

Doing business is about making money, not about holding grudges. If you want your business to run smoothly, you should take care of everything you can think of, as long as it doesn't seriously affect your own interests.

The business environment in inland areas is indeed incomparable to that in coastal cities, but since you're here, you have to accept this environment. Adapting to all kinds of environments is the essence of a businessman.

When you are powerless to change your environment, you must adapt to it.

"Want to stay at my place tonight?" Tan Jincheng asked Zhang Xupeng after the afternoon's visit.

The county has arranged accommodation, but since I'm back, I should go back to my hometown. I also brought some gifts in the car for the elderly people who are staying there, and tomorrow I'll be visiting some of my younger brothers' junior high schools.

It's more convenient to go directly from home than to start from the county.

"No, you go back by yourself. I still need to write a plan tonight. Please say hello to my grandparents for me, and give them some money." Zhang Xupeng thought for a moment and said.

After saying that, he counted out a thousand dollars from his wallet in his pocket.

"Okay, then be careful not to open the door to your room at night, and be more alert when you're sleeping," Tan Jincheng said in a low voice.

Without any hesitation, he accepted the thousand yuan that Zhang Xupeng handed him.

Zhang Xupeng was taken aback, but quickly recovered and nodded to Tan Jincheng.

There are many strange and unorthodox methods in the business world. For young people like them, the best way is nothing more than the temptation of beauty. It seems that Xiao Tan hid at home for this reason.

Should I go back with Xiao Tan? Xiao Tan's grandparents know me, so it wouldn't be a problem for me to go. However, I really need to write a plan, which is what Xiao Tan requested.

Building a factory and creating a brand cannot rely solely on wishful thinking; a project plan is essential.

Forget it, we can't rely on Xiaotan for everything. We'll visit Grandpa and Grandma another time when we have the chance, and also see what the situation is like here, so we can be mentally prepared for running the factory in the future.

"Damn, looks like I need to find a girlfriend too. The problem is, I don't know many suitable ones. Maybe I should ask Gu Qingqing to introduce one?"

(End of this chapter)