Chapter 617: The Garment Factory
Chapter 617: The Garment Factory
The factory manager, a man in his fifties, personally led them on a tour. "Don't let the old and small appearance of this factory fool you. It's like a sparrow—small but with all the essential organs. We have everything here. This is the warehouse, this is the trimming warehouse, this is the fabric warehouse, and this is the finished goods warehouse."
"Over there is the workshop, which is about 500 square meters. The finishing area is about 300 square meters, and it's where we handle cutting, buttonholing, button sewing, thread trimming, pressing, quality inspection, and more."
Jiang Xia walked into the workshop to take a closer look.
The workshop was filled with row after row of sewing machines.
She tried one at random, and it was broken.
She tried another, and it was also broken.
The factory manager quickly explained, "These sewing machines just have minor issues. With a little maintenance, they can last for another ten years. You know, machines get a bit worn out over time, but these are all minor issues. For example, this one just needs a new belt."
The factory was indeed old, but that wasn't a major concern. It could be refurbished. The size wasn't a big issue either; she didn't have enough money to buy a larger factory right now.
The biggest problem was the excessive inventory and the outdated equipment. Many of the sewing machines were broken and almost obsolete.
Jiang Xia tried a few more sewing machines, and they all had various issues.
"These sewing machines are too old and have too many problems. I've tried several, and each one has some issue", she said.
The manager replied, "These are all minor issues. They can be fixed and used. We've always used them this way. We have a maintenance technician who is very familiar with them and can fix anything. I can introduce you to him, and you can hire him to handle any problems with the machines."
Jiang Xia responded, "Let's go take a look at the stockpiled clothes in the warehouse."
They needed to see the stockpiled clothes before making any decisions.
While the sewing equipment could be repaired and used, it would require constant maintenance.
However, the fashion industry has two significant characteristics: seasonality and trendiness.
Outdated clothing loses its value.
A season is only three months long, so the production of clothes for each season must begin two seasons in advance.
You can't produce summer clothes in the summer; you need to start producing winter clothes in the summer.
At the same time, you also need to produce summer clothes because you won't know which styles will become bestsellers until they hit the market.
When a style becomes a bestseller, customers want to make more money, so they place additional orders. The factory, wanting to make more money, will take on these orders.
Additional orders require workers to work overtime to produce the clothes and get them to market before the season ends.
So, if there's a large-scale equipment failure, it can be a major issue.
If a cold front arrives and your summer clothes are just being produced, who will buy them?
If they don't sell, they will become inventory. Even if you keep them for the next year, they will be outdated and not worth much.
Moreover, excessive inventory ties up capital. If too much money is tied up in unsold stock, the factory will struggle with cash flow.
They all went to the warehouse, where they saw shelves stacked with clothes.
The manager said, "These clothes are stored very well. They are all new and the colors are still vibrant."
They were indeed new, but they were mostly blue, military green, black, and gray—styles popular in the 1960s and 1970s.
This factory had always produced these kinds of clothes.
Even two months ago, they were still producing them.
If the policies hadn't changed and they hadn't been unlucky enough to be selected as the first pilot factory, and if her mother could still help sell the clothes, there would have been no problem.
But that's not the case anymore. Since last year, we've had to find ways to sell the clothes ourselves, and we haven't been able to find a market. They just won't sell.
So now, the hundreds of square meters of the warehouse are filled to the brim with clothes.
Jiang Xia almost wanted to back out when she saw it.
The factory manager noticed Jiang Xia's furrowed brow and quickly said, "These clothes can still be sold. They're all good quality, and you could make a decent profit. There are over thirty thousand sets here!"
Jiang Xia chuckled, "Sure, if they could be sold, I'd make money. But Manager, you haven't been able to sell them either, right? Otherwise, this garment factory wouldn't be looking to transition."
Thirty thousand sets, even at ten yuan per set, would cost over three hundred thousand yuan.
And these clothes include all seasons—spring, summer, autumn, and winter. Only the summer sets are ten yuan each.
If she spent three hundred thousand yuan on sewing machines, she could buy over three thousand.
This factory doesn't even have three thousand sewing machines.
It's not worth it!
The factory manager: "..."
Jiang Xia: "How about this! I don't want the clothes. You can keep them and sell them. I'll take over the factory."
Factory manager: "That won't work. If you want to take over the factory, you have to take the clothes too."
Everyone who has come to look at the factory has refused the clothes.
If they didn't take the clothes, he would have to sell them himself.
If he could sell them, would the factory be in this situation? Would the workers be laid off?
Jiang Xia shook her head, "It's too expensive. I can't afford it. I'd rather spend the money on new sewing machines and equipment, wouldn't you agree?"
Factory manager: "That's not how it works. If you take over the factory, you'll make money by selling these clothes. They're all long-sleeved, and they can sell for ten to twenty yuan per set outside!"
Jiang Xia shook her head, "But there are too many clothes in inventory. I don't have enough money. I really can't afford it. I'm truly sorry."
Jiang Xia turned to Zhao Cheng Lei and Zhang Rong, "We can't afford it. Let's go!"
Zhang Rong added to the factory manager, "Manager Shen, thank you for your time. We'll be on our way."
The three of them started to leave.
Manager Shen panicked as they walked away. Several people had come to look, but none of them wanted the clothes.
The factory manager was waiting to sell these clothes to pay the workers.
"Can I offer a lower price? Seven yuan for summer sets, ten yuan for spring and autumn sets, and fifteen yuan for winter sets."
Jiang Xia shook her head, "Even at that price, I can't afford it."
She really didn't have enough cash, and there were too many clothes!
Factory manager: "This is the lowest price I can offer! If you sell each set for one yuan more, someone will definitely buy them. You could still make a few thousand yuan."
Jiang Xia thought for a moment and asked, "Manager, are you waiting to pay the workers' wages?"
"Exactly, we owe them three to four months of wages. So if you want to take over the factory, you have to take the clothes too."
"How about this: I'll buy the clothes at the price you mentioned, but I won't take them over. I'll try to help sell them, and whatever I can sell, I'll keep the difference. Does that sound fair?"
"What if you can't sell them?"
Jiang Xia: "If I can't sell them, you'll just maintain the status quo, and you won't lose anything! If I do sell them, you'll clear the inventory and have money to pay the wages. I won't have to spend so much to take over the factory. Why not give me a chance to try? No one loses, right? Just give me a month."
(End of Chapter)
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