Chapter 2430
There's a way, but I dare not use it.
The electronics market in Sijiucheng has always been monopolized by brands from Tianjin, Shanghai, and the local area.
Previously, there were no electronic watch brands in Beijing.
In Shanghai, there is a single dominant watch factory.
Now that it's available, external retailers will sell it as long as it's profitable.
Without the slightest hesitation.
Nobody knows for sure, but the current monthly output of the Sijiucheng Electronic Watch Factory may be 10,000 watches.
Will a zero be added after the production figure next month?
At that time, those retailers who bought the electronic watches at high prices might end up losing money and no one would want them.
In fact, even if He Yuzhu hadn't run this electronic watch factory, the price of electronic watches in mainland China would have gradually decreased.
It's a very simple fact: a regular electronic watch that can sell for 80 yuan this year will only sell for 25 yuan in Beijing two years from now.
This is what He Yuzhu experienced in his previous life.
According to the principle that the wholesale and retail markets should at least split profits equally, two procedures are involved.
We sourced them from the south wholesale and doubled the price.
In retail, it will double again.
That means the ex-factory price at that time had already dropped to six or seven yuan.
This wasn't even the lowest price in the 1980s. Four or five years later, a regular electronic watch could be had for ten yuan.
In my previous life, I worked at an electronics watch factory in Shanghai, hoping to make a fortune by exclusively producing watches.
They managed to keep out domestic competitors, but they couldn't stop those small workshops in the south run by just a few people.
If someone can get their hands on a watch movement, three or four people and a workbench are enough to assemble it into a finished product and sell it to the public.
They sell as soon as they make a small profit.
Therefore, He Yuzhu was well aware that he had simply brought this step forward a little.
During this period, there were naturally all sorts of negative opinions.
For example, some retired comrades said that He Yuzhu was wasting precious foreign exchange by importing watch movements for cheap goods.
He Yuzhu completely ignored the other party's words.
He has an old ox to back him up.
In terms of money, he has a foreign exchange quota of more than 20 million yuan per year for his door manufacturing factory.
How much foreign exchange would be used to produce tens of thousands of electronic watches?
Even if the quantity is increased tenfold or a hundredfold, the CNC Academy does not need to coordinate with the foreign trade department for foreign exchange support.
In this respect, He Yuzhu has already completed the closed loop.
At least when others try to find fault with him, they can't find anything to criticize.
Even the largest procurement of materials by an electronic watch factory is but a drop in the ocean compared to the tens of millions of dollars in foreign trade in the door industry.
It's not that He Yuzhu couldn't expand the production scale of the electronic watch factory to millions or tens of millions.
Rather, He Yuzhu himself never had that intention.
His original idea was to leverage the assembly and production of electronic watches to develop the upstream and downstream industries.
Therefore, maintaining a production scale of tens of thousands of units per year is enough to sustain this industrial chain.
If they expand their scale further, the suppliers of movement components for Xiao Rizi will also consider raising prices for them.
This method of playing was all learned by Xiao Rizi from foreigners.
First, we laid the foundation for downstream production.
When the downstream market expands.
Then, they strictly control the outflow of core technologies and make big money from downstream factories by raising prices and restricting sales.
Later mobile phones and computer chips all followed the same principle.
Even the television production line that Changhong has imported still has its core technology controlled by Xiaorizi. Later, Changhong defeated foreign television brands by offering incredibly low prices.
It was a Pyrrhic victory, and that's why.
The motherboard chips they used in production at that time were imported through Xiao Rizi Company.
The key to the price reduction is the integration of assembly and distribution costs.
Then, they used the huge sales volume in the end market to suppress the prices of upstream suppliers.
At that time, chip motherboards were not exclusively produced by Xiaoxingzi; other companies could also manufacture them.
With annual purchase volumes of several million units, any motherboard manufacturer would be willing to abandon its downstream domestic brands.
But He Yuzhu doesn't need to be so ruthless right now.
He now has plenty of time, and while he's busy giving our family benefits, he can use that time to support some simple upstream businesses.
At the Sijiucheng Electron Tube Factory, He Yuzhu walked one after the other in the workshop with the senior leader.
This electron tube factory was originally directly under the department of the top leader.
The main products manufactured are high-power transmitting tubes and industrial high-frequency oscillating tubes.
They also produce some transistors in small batches, but it's hard to say about that.
He Yuzhu's reason for targeting this factory was not influenced by a certain famous Eastern chip company in later years.
He simply mentioned to the top leader that he wanted to find a factory that could switch to chip production, and the top leader recommended this company.
After inspecting the area for a while, He Yuzhu brought a high-ranking leader with him today to negotiate the price.
Let him form a strategic alliance with this factory, and use the funds from the CNC academy to support the factory in its industrial transformation.
He Yuzhu definitely couldn't agree to that.
This factory can't even compare to a steel rolling mill now.
The wire rods produced by the steel rolling mill can still fetch a good price on the market.
The factory was losing money because of aging equipment and excessive extra expenses.
The electron tube factory is now about the same size as the steel rolling mill, but after the reform and opening up, the products it produces have become completely outdated.
Currently, transistors and integrated circuits are the mainstream in the market.
The vacuum tube market has been gradually replaced.
This factory's losses this year are estimated to be over 40 million.
The key issue is the lack of a chance to revive the situation.
The products have been phased out by the market, and the factory's equipment dates back to when the company was a joint venture. The factory employs tens of thousands of workers…
So you can imagine what happened.
"…Big boss, you've given me a tough problem."
"My shoulders are too narrow, how can I bear such a heavy burden?" He Yuzhu complained to the senior leader as he walked.
"This factory was originally a key project during our First Five-Year Plan period."
In the preceding decades, the vacuum tubes produced were used in all aspects of military and civilian applications.
This is a factory that has made great contributions.
"Xiao He, I'm not forcing you, I just wanted you to give me a diagnosis, to see if this factory has any future." "Since retiring, the big boss seems to have aged faster; after a while, age spots have appeared on his face."
"Yes, but there's no way to do it." He Yuzhu remained silent for a long time before answering seriously.
The senior leader stared at him blankly. His eyes were cloudy, but He Yuzhu could still feel the decisiveness and power in them.
It was as if He Yuzhu had come up with a solution that, even if it offended people, would make the top leader willing to step forward and become the knife that wounds others.
He'll bear all the stigma, as long as this factory can survive and thrive...
He Yuzhu couldn't stand the older generation acting like this.
He has selfish motives, so he can't stand selfless people.
He Yuzhu turned and walked out. The senior leader hesitated for a moment, then followed him out of the factory area. (End of Chapter)