Siheyuan's Silly Pillar has been replaced by someone else

Chapter 1860 Crisis
Lou's Garment Factory was developed after Lou Xiao'e returned to Beijing and joined forces with He Yuzhu.

Although the development period has been short, the momentum of development has been very strong.

Lou's Garment Factory's production site is in mainland China. Due to the low labor costs, even with the export fees included, its costs are still lower than those of textile groups in Hong Kong.

The price is low, but the key is that Lou's Garment has a very advanced design concept.

Whether in the low-end or high-end market, Lou's Garment has shown an overwhelming market share.

Lou's Garment already held a 40% market share, and with the boost from the movie "A Better Tomorrow", its market share exceeded 50%.

As a result, almost all companies in Hong Kong's garment industry were dissatisfied with Lou's Garment.

Recently, they joined forces to put pressure on Lou's Garment Factory.

Lou Xiao'e, Zhang Yan, and several others have been dealing with this matter recently.

He Yuzhu was in charge of the film and television company's affairs. After finishing up at the film and television company, he returned to the villa.

Not long after, Lou Xiao'e and her group returned to the villa in a huff.

Not only did Lou Xiao'e look unwell, but Lin Jinghan's complexion was also very bad.

This was the first time He Yuzhu had ever seen such an expression on Lin Jinghan's face since he had known her.

"What's going on? Who upset you?"

Lou Xiao'e said angrily, "Those people in the Hong Kong garment industry are trying to force us to give up some market share."

This is not surprising.

Hong Kong is now a renowned garment sourcing center in the Asia-Pacific region and the world's largest exporter of garments.

Lou's Garment Factory not only rose to prominence later, but also seized half of the market share, which infringed on the interests of those big players.

He Yuzhu and the others discussed it and decided there was no need to go against the local bullies over these matters.

They have decided to improve the company's operating strategy and appropriately relinquish some market share.

He had the film company do the advertising, which was also in line with the clothing company's strategy.

The company will use profits from the high-end market to make up for the market share it relinquishes.

"Did they make excessive demands? Who's leading this?"

“The Luo family, the textile tycoons of Hong Kong.” Zhang Yan spoke up when she saw that Lin Jinghan and Lou Xiao’e were unwilling to speak.

The Lo family is one of the four major garment manufacturing families in Hong Kong.

The rise of Lou's Garment Factory infringed upon his interests, so it's not surprising that the Luo family stepped in.

"Is it only the Luo family?"

Zhang Yan nodded: "Although the other three families also sent people, the Luo family was the leader."

That's quite strange.

Why would the other three families give up their positions to the Luo family?

It's important to understand that after they make concessions, a portion of their quota will definitely be freed up.

Whoever takes the lead will be able to seize more benefits.

It's a bit unusual that the other three families risked offending the Lou family, yet gave the pie to the Luo family.

Why the Luo family?

Lou Xiao'e was in a better mood at this point and explained, "I heard that Roche is planning to go public next year."

Upon hearing about the IPO, He Yuzhu knew that his original strategy would not work.

Roche is preparing for an IPO and must ensure that the company occupies a sufficient market share.

Roche cannot concede to either the low-end or high-end markets.

In this way, one of the two sides must give up the market.

Clearly, these bigwigs in Hong Kong hope that Ho Yu-chu will make concessions.

He Yuzhu could refuse, but the consequence would be facing a crackdown from the entire Hong Kong garment and textile industry.

These families are deeply entrenched and intertwined; if they were to unite, He Yuzhu would have absolutely no chance of winning.

Of course, if He Yuzhu really fought desperately, even ten Luos combined wouldn't be a match for him.

But that would be too risky.

It's really unnecessary to do this for the sake of the garment industry. "What are you thinking?"

Lin Jinghan gritted her teeth and said, "What else can we think? The Luo family has even brought in people from the shipping company. If we don't agree, the company's logistics will be cut off."

He Yuzhu sneered. "He really is a local bully." He'd found his Achilles' heel.

The logistics problem is truly unsolvable for He Yuzhu.

China's shipping industry is not very developed, so many of its export businesses rely on shipping companies in Hong Kong.

He Yuzhu remembered this grudge.

"Then we'll concede."

Lou Xiao'e looked at him with dissatisfaction: "You make it sound so easy. What will happen to our interests after we make concessions?"

He Yuzhu said, "I said I would make concessions, so they can't be concessions without any principles."

We can make concessions on the garment manufacturing side, but they must also offer other compensation.

Let them exchange their share of shoe production for it.

Lou's Garment's products were too limited; a slight expansion almost brought the industry to its knees.

The joint pressure exerted by Hong Kong's garment and textile industry this time has taught him a lesson.

He Yuzhu shared his idea with a few people. It wasn't complicated; he just wanted to enter the sports industry.

In the adult world, there is no right or wrong, only interests.

After hearing He Yuzhu's plan, Lou Xiao'e and the others began to ponder it.

Markets are like battlefields.

Offending the entire industry and facing a united front can have serious consequences. Even if you win, you'll pay a hefty price.

For He Yuzhu and his team, the result of the Pyrrhic victory was no different from a defeat.

The mainland's current economic situation is still far behind. If it wants to develop, it still needs to go through Hong Kong.

If they offend the local tyrants in Hong Kong, they will have no place to stand in Hong Kong.

Lin Jinghan said with dissatisfaction, "I can't swallow this."

He Yuzhu was also unwilling to swallow this insult, but now was not a good time to start a war.

"Don't rush, let's build up our strength first. We'll settle the score with them next year."

When He Yuzhu mentioned "next year," he meant next year. He remembered that at the end of next year, there would be a Black Monday in the United States, which would directly affect stock markets worldwide.

Lin Jinghan knew this too, and could only helplessly give up.

This is in Hong Kong, not Beijing. If this were Beijing, they would have plenty of ways to resolve this crisis.

Lou Xiao'e took a deep breath: "Sister Jinghan, let's keep this score in mind for now. We'll settle accounts with them eventually."

Lin Jinghan nodded.

Lou Xiao'e continued, "They've sent word that they'll be waiting for us at the golf course tomorrow."

"So this is a negotiation? Okay, let's go check it out tomorrow. Come to think of it, I've never been to a golf course before."

It wasn't that He Yuzhu didn't want to go; it was that he wasn't interested in the sport.

His favorite sports are basketball, football, and table tennis; golf is nowhere near his top list.

Lou Xiao'e warned, "Don't be careless, this is a trap."

They know you're from the mainland and have never played golf.

"Choosing a golf course on purpose is just to embarrass you."

Even without Lou Xiao'e's reminder, He Yuzhu had already guessed it.

At the Sotheby's auction that time, although those business elites came over to greet He Yuzhu, they actually looked down on him as a country bumpkin.

Let alone those business elites.

When He Yuzhu first arrived in Hong Kong, several bigwigs in the film industry scoffed at his words, calling him a frog in a well.

"The Feast at Hongmen, it is the Feast at Hongmen, but it is uncertain who will be Liu Bang and who will be Xiang Yu."

The two parties chose the location for their negotiations, so He Yuzhu should set the rules.

(End of this chapter)