1. “Jiangnan Leather Factory” closed down
In August, Weibo had a hot search that was not related to the star gossip, but it also had some entertainment colors: Jiangnan Leather Factory in Shenqu really closed down.
A notice published in the 12th edition of Wenzhou Evening News on August 8 showed that the manager of Zhejiang Jiangnan Leather Co., Ltd. was facing the creditor of the company and implementing the second and final distribution of its bankruptcy property.
Many people know that the Wenzhou factory, which was closed because the boss ran a debt with a small scorpion, really existed, but the story is far less like the song in the song.
The boss, Huang He, does have someone, but there is no small scorpion. It is actually his wife who runs with him. There is no so-called wage arrears after the factory is closed. Therefore, there is no shoe bag to sell the factory to fill the deficit. In the end, the company finally relied on selling assets to repay the debts owed; the actual total debt was about 230 million, and the 350 million songs sung in the song were not small.
“This is the most common kind of downturn in Wenzhou enterprises,” said Anke, a customer manager at a commercial bank in Wenzhou. He is a native of Wenzhou, but he has no impression of the Jiangnan Leather Factory, which is famous throughout the country. “The Jiangnan Leather Factory should not be known to many people in Wenzhou. You said that I have a little impression on the Divine Comedy. Which Wenzhou person has not run around. The relatives and friends of Lu, especially in those two years, have seen too much, and everyone is used to it.”
The two years referred to around 2008. Since then, the news of the closure of private enterprises in Wenzhou has gradually increased.
“Hangzhou Net” mentioned in a report published in 2009 that the then Wenzhou Mayor Zhao Yide revealed at the “Certificate of 2008 Wenzhou Top 100 Enterprises” that since the financial crisis, “8.5% of SMEs have closed down or changed production. “.
The footwear industry is very important to the Wenzhou economy. According to the data released by the Wenzhou Statistics Bureau, from 2008 to 2017, the total output value of Wenzhou shoe leather industry can occupy more than 20% of Wenzhou’s industrial production value every year. Due to the large base of enterprises and the large number of enterprises above designated size, the probability of giant thunderstorms is naturally higher.
The Ba Li Group is the most mentioned example. It was the first enterprise group in Zhejiang leather shoes industry approved by Zhejiang Industrial and Commercial Bureau and Wenzhou Municipal People’s Government. But in 2011, as the boss lost its debt, the factory suddenly stopped production and dissolved.
In 2013, Gilda, who once had the title of “China Leather Shoe King”, also announced that he had been in a difficult business for many years. The capital chain situation was worrying and he needed to seek the government to reorganize the company.
After the news of this series, the overall reputation of Wenzhou enterprises fell to the bottom. In terms of shoe enterprises, no one will ever remember the title of “shoe king”. “Jiangnan Leather Factory” is the new synonym for Wenzhou shoe enterprises.
This is also why in 2013 there will be hundreds of Sichuan Wenzhou businessmen to carry out collective rights protection. They collected evidence and reported it to the local industry and commerce, urban management, public security and other departments, demanding that the “Jiangnan Tannery Divine Recording” and other methods and behaviors to destroy the Wenzhou business be cracked down.
“It is ironic that Wenzhou people actually love the credibility most, and they are proud of credibility. But over the years, now you said that I am Wenzhou boss, Wenzhou company, and have become the most unreputable person and enterprise. I didn’t say anything in the middle of the game,” said Xi Lili, the second generation of shoes.
Many Wenzhou businessmen have invariably set the “turning point” of entrepreneurship in 2008. It used to be the best year they thought, but it didn’t seem to be the beginning of a bad thing.
Image source: Visual China
2. “Guarantee Chain” Crisis
In 2008, the financial crisis swept the world. China’s foreign trade export industry has been negatively affected.
Taking Wenzhou footwear industry as an example, according to Wenzhou Customs statistics, Wenzhou City exported 528 million pairs of shoes in 2008, down 1.4% from the previous year. In the first two months of 2009, another group of data was still not optimistic. The total value of footwear exports in Wenzhou was US$400 million, down 9.19% year-on-year.
Many Wenzhou export-oriented shoe enterprises have turned to the domestic sales business. However, from the sales data of the local shoe enterprises released by the Wenzhou State Taxation Bureau in the first half of 2009, the scale of domestic demand growth cannot fully offset the loss of income caused by the decline in external demand. The sales revenue of Wenzhou shoe enterprises decreased by 3.8%.
Under such a situation, in November 2008, the State Council announced a series of fiscal stimulus plans with a total scale of about 4 trillion yuan, which is commonly known as the “four trillion rescue plan”. In addition, in order to increase financial support for economic growth, the credit limit of commercial banks was cancelled.
Encore entered the bank after graduating from university in 2012, and only heard the troubles of the client managers from the predecessors. He and his current review of customer loan qualifications need to be very strict and careful, for fear that bad debts will affect performance. In 2008, account managers only hope to simplify the loan application process as much as possible, because the loan in hand is too much to be performance appraisal. Obstacles.
“At that time, the bosses in Wenzhou were all inflated. Every day, the people in the bank are asking for money to be sent to us.” Xia Li was a sophomore at the time and was beginning to help manage the business at home. “If you have Real estate, then the bank is a very good customer, the loan is easy, and even if you can’t get the loan, it doesn’t matter, just find a guarantee.”
Xia Li’s father simply opened a guarantee company with such an opportunity to provide guarantee services for companies that could not find a guarantee and needed a loan, and earned a commission based on the loan amount. This is the sideline business that many Wenzhou bosses found for themselves at the time.
Another common situation is that businesses between friends and friends make a guarantee for each other. And even if there is no guarantor or guarantee company in the personal relationship, some account managers will help the lender to complete the pairing in private.
While the account managers completed their performance, many companies’ cash flow levels peaked and they were all happy. However, many companies have forgotten the loans they have acquired, and the potential debts they have been burdened by guarantees have far exceeded their total assets.
What’s more, companies that take these loans usually only put a portion of them into the main business, and most of them will take some “quick money” investment. Stocks, real estate, and mining are the fats that Wenzhou bosses have long been eyeing.
It is traditional to invest in Wenzhou with money earned from industry. An example is the Wenzhou wife’s real estate speculators, which are left in the north and even in Dubai. Before the collapse, the Ba Li Group also entered the mining industry with high-profile, and bought a mineral in Hezhou, Guangxi, with most of the company’s working capital.
“I have done this line and know that it is not so good, and it is getting harder and harder to do, so everyone wants to find a way to get money quickly.” Xu Gan said. Like Xia Li, Xu Gan is also a “second generation of shoes.” His parents started selling shoes in 1996. Later, relying on agents, they gradually turned their business into more than 20 provinces across the country, opened more than 3,000 brand stores, and built their own factories.
In his impression, until the year 2000, the business at home was really good, the agents needed to get the goods by grabbing them, sometimes they encountered price cuts to handle the inventory, and even “two different sizes of shoes.” There are people who want to get the goods.”
Wenzhou’s footwear industry is a typical labor-intensive industry, with low technology thresholds, low added value, low-cost labor costs, and high-volume production scale effects to find profit margins. In the first decade of reform and opening up, this degree was also a good industry with good gross margin.
However, after entering the year 2000, new competitors continued to flow into the market. Most companies had to rely on price wars to survive, and gross profit margins dropped significantly. In the words of Xia Li, “Whenever anyone can do this business, the era of sacks of money will pass.”
Wenzhou leather shoes sold in the streets of Hangzhou in the early years
Therefore, after making some money, Xu’s parents also made some investments. However, because of their conservative nature, they only invested in some real estate projects. For minerals with higher financial strength requirements, or stocks and futures with higher risk of risk, they choose not to touch.
“Now think about my parents, this is still quite right, there is nothing wrong with caution, just like they never give guarantees to others.” Xu Gan said.
Most Wenzhou people were very optimistic at that time, especially when they had not done much to get a big loan. Xia Li gave a few examples to describe the atmosphere at that time. For example, many uncles he knew would spend tens of thousands of dollars to buy a license plate with a “888” and a mobile phone number. For example, he often followed his father to participate in some movements. It costs tens of thousands of meals. In those dinners, everyone talks about millions and tens of millions of businesses. Sometimes, when you touch a cup and talk, you can decide to vote for each person. Hundreds of thousands of fundraising projects.
But gradually, the dinner is still the meal, investment opportunities are still hot topics on the dinner table, but some old faces no longer appear, and they disappeared with the money thrown out.
“Later, you only know that people are going to run, ask you for money. My dad said that he sometimes feels, but how do you say it? It seems that there is a kind of rivers and lakes, that is, he knows that this money is gone, But people will come to find it.” Xia Li’s aunt is also an escape boss. Before leaving, he also went to his father to go hundreds of thousands of yuan in the name of the joint investment project.
Whether it is mining, real estate, or stock market, agricultural futures, these industries are fast-moving, high-risk, and there are many uncertain factors including policy regulation.
Many corporate sweets have suffered a big loss before they have tasted it. Once the investment project fails to receive the proceeds and principal as expected, they will not be able to repay the bank, institutional loans, or borrowing from private capital. This allows them to only sell assets, otherwise they have to pull the companies that were guaranteed at the time into the quagmire.
The Xiali home guarantee company lost a lot of money in this wave, and finally ended up closing. It’s just fortunate that his family’s business in Xinjiang’s border trade exports shoes provides a steady stream of cash and leaves a vitality.
Xu Ganjia’s investment in real estate is still stable. However, the partners who originally raised funds and invested with his family were affected by the policy of restricting loans and real estate speculation before and after 2011. In the end, they encountered difficulties in the capital chain caused by the loan severance. In the end, they had to find a private loan shark loan and put on a debt.
The Wenzhou Private Lending Market Report released by the People’s Bank of China’s Wenzhou City Center Branch shows that in 2011, the interest rate of private lending in Wenzhou has exceeded the historical maximum. Even if the relatives and friends borrow money, the annual interest rate is also 12% to 36%. between.
Companies with strong strengths such as the Ba Li Group are also in trouble. Because of the lack of management and operational experience, the mine business has been shut down, and there has been difficulty in the capital chain, which has paved the way for the closure. The institutions, enterprises, individuals who have borrowed the money from the hegemony, or the guarantees for him, and the upstream and downstream enterprises that have business dealings with the Pai Shoe industry, as well as the employees of the company, like the dominoes, are involuntarily one by one. The ground “falls down.”
According to the paper cited in Ye Qian, Zhejiang University of Finance and Economics, “Corporate Loan Mutual Insurance, Guarantee Chain Risk and Governance Policy – Based on Wenzhou Research”, nearly 80% of enterprises in Wenzhou are involved in guarantee mutual insurance, 60% of which The company provides guarantees for the other three companies; 30% of the companies guarantee for the other five companies; and some companies have more than 10 guarantee companies.
Wenzhou suddenly became one of the regions with the highest financial risks in the country. Affected by the association, some enterprises in Hangzhou, Shanghai and other places have also been plunged into a security chain.
In order to guide the resolution of the crisis, in the second half of 2011, Premier Wen Jiabao, then the central bank governor Zhou Xiaochuan, Finance Minister Xie Xu, and Chairman of the China Banking Regulatory Commission Liu Mingkang went to Wenzhou. After this, the Wenzhou Municipal Government organized a liaison group to station in 25 municipal-level banking institutions, requiring banks not to spend money or pressure on loans to prevent the capital chain of small and medium-sized enterprises from breaking.
However, a statistics from the Wenzhou Banking Supervision Bureau showed that at the beginning of 2014, there were still 33 major risk guarantee circles in Wenzhou, involving a credit amount of RMB 61.8 billion. After half a year, these two figures only dropped to 28 and 50.7 billion yuan respectively.
In fact, the issue of the guarantee chain is still affecting Wenzhou enterprises.
In November 2013, Gilda was listed on the list of key enterprises to help the poor due to the financial crisis and the impact of the guarantee chain. In February 2017, Ingolda was still unable to get out of trouble, and the Wenzhou Municipal Government decided to initiate pre-reconstruction of Gilda footwear innovation. In May of the same year, the Wenzhou Intermediate People’s Court registered the Gilda footwear industry before the complaint. At present, the Gilda reorganization plan was approved by the Intermediate People’s Court. This is an attempt by the Wenzhou Municipal Government to resolve the follow-up issues in the guarantee chain.
Prior to this, the Wenzhou Municipal Government also took the lead in setting up the Wenzhou Credit Guarantee Fund Operation Center and set up a number of funds including small and micro enterprise credit guarantee funds, so that small businesses could not obtain mortgages, and could also obtain loans from banks.
“Now the loan is definitely much easier than it was in those years. However, our review of the use of funds has become stricter. This is the most important review project now,” said Anke.
Image source: Wenzhou Daily
3. The troubles of transformation
Xie Yifang, vice chairman of the China Leather Association and executive director of the Wenzhou Shoe Industry Association, used the term “severe cold” to describe the industry situation after 2008, especially before 2013. Because in addition to the company that is deeply entangled in the chain of guarantees, it is not good for the shoes of the company. And this is not the same as the situation caused by the intensification of competition among local companies since 2000. At least at that time, the market cakes belonging to local brands are still growing rapidly.
According to the “National Leather Industry Economic Operation in 2012 and the Outlook for 2013” issued by the China Leather Association, the growth rate of China’s leather industry declined in 2012, and the downward pressure increased. The output value, profit and export growth rate of the leather industry fell back, respectively. And 17 percentage points. In 2011, the growth rate of the three was more than 20%.
Xu Qian remembers that from 2012 onwards, the speed at which the home company took the money from the agent was significantly slowed down. In the past, because of the need to rapidly expand the market, Xu Gan’s parents agreed that the agent would use the credit to get the goods. In the context of a big environment, the problem of this model is not easy to highlight. However, when the sales speed slowed down, and sometimes the agent took the money to make other investments, and could not pay the money, the accounts receivable became meaningless figures on the books. “Looking at it, I can’t get it back.”
This forced Xu’s parents to change their operating model. Previously, Xu Qianjia served as a middleman connecting factories and agents. After the transformation, Xu Qian’s parents became a brand manager, only grasping the resources of the brand, allowing the factory and agents to directly dock, thereby transferring the pressure of collection to the factory.
Xu Gan thinks this is a change that conforms to the times. At the earliest, his parents were able to make middlemen mainly because the information was not circulated in the early years, and they had the resources of both supply and channel. But now the times are very different.
This adjustment makes Xu’s company need to establish a new absolute advantage. In Xu Gan’s words, they have to provide a service that makes their company inseparable even if they don’t work as a middleman. To this end, they began to provide agent recommendation services for the factory, and provided guarantees for payment. For agents, they set up a supply verification warehousing system for free. While strengthening the control of the brand headquarters, it provides the basis for the subsequent sales data analysis and consulting services.
The process of actually implementing these services is longer than expected. The factory is worried about its cash flow pressure, so it is not willing to cooperate. Greater resistance comes from agents. Their fear is that their financial situation will be regulated, and it feels that this is a time-consuming and costly task. Three years later, until Xu Gan University graduated and decided to go home to take over, this transformation was initially achieved.
Xu Gan is the only son in the family. As a “second generation of enterprises” in Wenzhou, succession is no way out. The parents fucked a lot for his succession. The previous transformation was to relieve him of the post-work stress. At the same time, the size of his factory was also deliberately reduced. At present, Xu Qianjia’s company has only retained a professional protective footwear factory with stable customers.
“My parents are afraid that I will be too tired in the future, and the production is really too tired, and now the workers are not easy to find and not easy to control.” Xu Gan said.
Like other cities along the coast of China, Wenzhou can create many economic miracles after the reform and opening up, mainly relying on the advantages brought by cheap labor. But as the first generation of workers gradually grew older, the labor force’s new force turned to 80, 90, or even 00 after the pursuit of higher quality of life and salary standards.
A new generation of workers generally emphasizes individuality and is therefore difficult to obey. They also have a strong sense of rights, so they are not willing to work overtime. Even if they work overtime, they dare to ask the boss to pay 3 times overtime pay.
“Now I have no money to make a lot of orders, but I still have to pick up, just to raise workers.” Xia Li said. The business of Xiali’s family has shrunk a lot after going through the bankruptcy of the guarantee company. The production line has been reduced from the original six or seven to the current “occasionally, occasionally two.” Now it is mainly the processing orders of leading shoe enterprises, or foreign trade orders for the African market.
His company has limited profits because it deals with wholesale customers and does not have a real sales terminal. The most important profit margin needs to be obtained by controlling the wage costs of ordinary workers. He said that the wages of skilled workers are relatively stable, and they have to be eight or nine thousand yuan, or even more than 10,000 yuan. The wages of ordinary workers are as short as one or two thousand, and now two or three thousand yuan are counted as less. This directly reduces the profit of each pair of shoes. Now, under normal circumstances, a pair of shoes can only earn 3 yuan. If you encounter a customer with a big bargaining power, when the price is overwhelmed, the profit of a pair of shoes may only be 1 yuan.
What is even more troublesome for him is that workers today are generally not “wasting” for too long in a less decent and interesting job. The position he offered may be just a springboard for workers to enter the city, or a transition in two jobs. This is a worse news for shoe factories that have a need for skilled workers. Because in the long run, the prospects for factory development are even more rampant.
To a certain extent, the continuous improvement of laws and regulations is also creating a series of new challenges for Wenzhou shoe enterprises accustomed to the early barbaric growth model.
On the one hand, the labor security system is gradually improving. In the early years, the business owners lost their profit margins by paying less for endowment insurance.
Also comes together is the continuous upgrading of environmental protection policies. The new “Environmental Protection Law” officially implemented in 2015 will be laid, and the environmental tax will be imposed in 2018. Wenzhou shoe enterprises were forced to make upgrades and changes from raw materials, production links, and plant construction. And these changes need to be realized by investing in funds.
“Every time I feel that my factory is going to make money, there will be new policies to promote. If we want to comply, it means spending a lot of money,” Xia Li said.
Because of the main low-end market, Xiali’s shoes are mainly leather shoes. The national environmental protection policy has a huge impact on leather material producers. The price of leather materials has increased. So, now, Xia Li has to spend more on the materials. This means that in addition to getting their own factories to meet environmental standards, he also needs to indirectly share the increased environmental costs of upstream suppliers.
However, Xia Li still feels very fortunate. At least his factory that has signed a ten-year lease can barely meet the standards. And the smaller factory, the family workshop-style factory, has to worry about finding a factory. It turns out that small factories may only need one rental house to produce. But now, they need to rent a regular factory. The factories in Wenzhou districts, especially small-scale factories, have been experiencing a surge in demand, and supply is in short supply, and rents have risen.
“If the company is required to strictly implement the policies given by the Municipal Environmental Protection Bureau and the District Environmental Protection Bureau according to the actual situation, then the 4,921 footwear industry in Wenzhou, without the addition of the industrial chain, will close almost two-thirds.” Xie Yifang said bluntly, “As an association, we are making recommendations to the government on the one hand, and we should try our best to let the enterprise do the profit first and do the environmental protection. After this rectification, if half of the enterprises survive, the industry output value can still be In the past, it has exceeded 100 billion, and the whole industry has really started to develop healthily.”
Image source: Visual China
4. Shuffle time
China (Wenzhou) International Leather, Shoes and Shoes Machine Exhibition is the most important exhibition every year for Wenzhou shoe leather enterprises.
Enterprises often use the exhibition to learn about the latest trends in the industry, technological developments, and policy orientation. 2018 is the 23rd year of the show. According to the curator of the exhibition, the number of intelligent exhibitors of shoe machines and sewing machines in this year’s exhibitors has increased significantly, with the proportion of shoe machine enterprises accounting for 56%.
Chen Renyu is the general manager of the shoe machine brand Desma Asia Branch. He has participated in this exhibition in Wenzhou for nine consecutive years. He feels that Wenzhou shoe enterprises have made no small changes in these years. At first, if he wanted to introduce the thousands of shoes of Desma or even the price of tens of thousands of dollars to the Wenzhou boss, only the super-large enterprises such as Aokang and Hung Hom can be his goal, because other small enterprises are not interested. . Now, he receives many smaller companies every day, even those that don’t have the financial strength to buy their products. “You can feel it, they want to learn about advanced technology and equipment, and want to know the future trend.” Chen Renyu said.
Bob, manager of Gerson machinery Co., Ltd., has similar observations. Gerson is the main shoes cutting machine. For shoe companies, they can provide die cutting machine for soles and other solutions.He has been busy introducing Wenzhou companies to what they can do in the field of shoemaking. However, He also admitted that He mainly establishes contacts through the exhibition and does a good job in market education.
“They now know that they are looking for new technology and know that these technologies can bring benefits in terms of efficiency, quality and cost,” Bob said. “But a factory needs to replace equipment. It will not happen overnight. Most companies will change a little bit. Changing one by one requires a process.”
Xia Li agreed with Bob’s statement. In order to improve production efficiency, improve product quality and increase the stability of quality, and to some extent control labor costs, his factory upgraded equipment not long ago. However, he only replaced one of the machines in one of the links.
For large companies with strong financial strength, it is naturally easier to buy machines. The Juyi Group, which is mainly engaged in OEM business, has launched a “machine substitution” program within the company. Only in the typesetting cutting process, Juyi invested 6 million yuan to buy 6 fully automatic die cutting machines . According to the data released by Juyi Group, this machine can save the process of developing and manufacturing the die, thus saving time and nearly 500 square meters of factory space. At the same time, the machine can be automatically typeset because of the computer. The utilization rate is increased by 5%-10%; it is also possible to reduce the labor of the factory by 9 laborers, and the labor cost saved in one year reaches 550,000.
A small boss like Xia Li has to worry more. The stability of the capital chain is the most important. Therefore, even if it is to purchase a machine of more than 100,000 yuan or even tens of thousands of yuan, it is a cautious and cautious decision for the size of his factory. He and his father set a “two-and-a-half-year return” as a yardstick standard. The cost here not only includes the purchase price of the machine, but also the cost of recruiting and training to accommodate new machines and new technologies.
A new set of equipment often requires a new set of workers, or even a new management team to work with. In comparison, the workers’ team is well formed, and it is not easy for the management team to form.
A distinctive feature of Wenzhou enterprises is that they have always adopted a model of family management. Just like Xu Ganjia, his father is the chairman of the board, the mother holds the financial power of the company, and supervises every link without any detail. Reimbursement of an office stationery requires her to personally stamp, and the seven aunts are also in the company. The link is important.
Such a model has played a lot of positive roles in the early years, including cost savings, ease of solidarity, and “relief”. However, when enterprises are to be transformed and upgraded, kinship has become a major obstacle to corporate change.
The original second-generation succession should be a natural opportunity for enterprise upgrades. In addition, most of the “second generation” of Wenzhou have been studying business knowledge for many years in business schools, in order to transform the enterprise with modern management knowledge. But in fact, when the academic practice encounters uncles and elders, brothers and sisters, the results are always not satisfactory.
Xu Gan bluntly said that he had picked up a mess. He found that although his own company has a certain scale, the company does not have a clear organizational structure. Often, one person has multiple roles, and the positions are random, the rights and responsibilities are not clear, and all the things are still required by the chairman. Supervision of the pieces.
“Some of the executives I recruited were shocked when they first entered the company. They couldn’t believe that a company like us could sell so many shoes a year.” The first thing he entered the company was to form a A new team with professional management knowledge and experience.
He also persuaded his father to set up a new department in charge of retail in the company. He hopes to strengthen the brand awareness of the entire company and its subordinate agents through this department. He feels that Aokang has done a good job in brand management. He expects his family’s brand to be able to add value to the product on the day it is added.
But to do this, there is not enough a department to do marketing and branding. For this reason, he also wants to reform the way the agents are assessed.
The original Xu Qian’s father only used the purchase quantity to evaluate the agent. Xu Gan thinks that it is the sales index to replace the purchase volume as an assessment indicator, or at least it should be in addition to the purchase volume, plus a sales target. But until now, his thoughts have not been agreed by his father. This is a business model that touches the company’s core interests, and the father is still unwilling to let go. He knew that it might have to wait until he really took the company independently and the issue could change.
“At this stage, the bigger companies have to think about how to get to the next level.” Xie Yufang said. In the past two years, Wenzhou Shoe Industry Association has set up a professional manager branch, and also set up a “new generation entrepreneur” branch for the company successors, all of which are to help the shoe enterprises in need to achieve the goal of a higher level.
“Small enterprises should not stare at the immediate interests, but should work hard on quality, environmental protection, and characteristics. This will work well for even a large factory.” Xie Yufang said.
Xie Yifang admits that it is difficult to make a big brand and a big company now. The industry has entered the stage of strong Hengqiang, weaker weaker, and ultimately strong and weak. However, she pointed out in particular that this must be a loose “merger”. “Because everyone in Wenzhou wants to be a boss, even a small boss, they must stand on their own feet.”
Xia Li should be the little boss who Xie Yifang must stand on his own in any case. He still has ambitions not realized. He joked that he was waiting for the next opportunity for the company to take off. Since the domestic market is difficult to do, he is now pressing the treasure on the Moscow market. He wants to try to start from Moscow and take the sales terminal channel in his own hands. He wants to start his own brand in Russia. An uncle he knows has been in Moscow for some years and has made some achievements. This made him see hope.
“If you are lucky, the factory should be able to open two more production lines in the Moscow market.” He said with a smile, “But if it doesn’t work, then there may be nothing.”
A few hours later, Xia Li will board the plane to Moscow. This is the third time he has gone. He is already optimistic about the shop, only to sign the lease this time.
