The Industrial Giant Reborn

"This is not just a problem for Berkshire Hathaway, but a problem for the entire American textile industry. Labor costs are too high." Caikens said helplessly.

"Things like the market should be eliminated. The American textile industry is already dead. The correct way is to let go." Chen Zhiwen said lightly.

The textile industry may be a little more technical than the garment industry, but for Europe and the United States, any country can manufacture it. Since the birth of the textile industry, there have been a large number of such companies in various countries. After all, clothing is a necessity of life.

Before the emergence of containers, the cost of sea transportation was relatively high, and without perfect sea transportation protection, textiles may be damaged during sea transportation, so it is not impossible to transport textiles across oceans, but the cost is high, and they are generally exported to countries such as Europe, America and Japan. For those countries in Asia, Spice Girls, and Africa that do not have basic industries, the local market is their own internal responsibility.

Because their costs are similar, it is impossible for anyone to occupy the other party's market after having the cost of transoceanic transportation, unless it is some special high-end products or products for professional purposes, but these are very small in number and will not affect the local markets of European and American countries. textile industry. Therefore, before the 1950s, the textile industry of various countries was very prosperous, and they controlled the market of their own country.

Berkshire Hathaway is one of the leaders in the American textile industry. It used to control 10% of the textiles in the United States. However, after the emergence of containers, the cost of textile transportation has become lower. In addition, the first step in the development of industries in Asian countries is the textile industry. As a result, it was hit like never before. After all, whether it is clothing or textiles, a lot of manpower is required. In terms of labor costs, the United States is not qualified to compare with Asia. The same is true in Europe, but there are more high-end clothing brands in Europe. It can last for a while longer.

Berkshire Hathaway can’t do it. The annual net profit of such a huge company is only a few hundred thousand dollars. This is the result of Buffett’s investment profit transfer. The pure textile industry is already losing money, if it is not out of social responsibility , Buffett has already cut off this business.

"Although I don't want to admit it, it's true." Caikens said with a frown after taking a sip of liquor.

"The textile industry in the United States is absolutely powerless. No one can save it, but Berkshire Hathaway can still be saved." Chen Zhiwen looked at Caikens and said, "Just move to Hong Kong."

"Mr. Buffett is right. Mr. Chen went to see him last time for this purpose, right?" Caikens said with a smile.

"Yes, Hong Kong needs a high-end textile industry. This is my purpose." Chen Zhiwen shrugged and admitted.

"As far as I know, Mr. Chen's industry does not have a garment industry or a textile industry. Why are you interested in this?" Caikens asked.

"I have a trading company that specializes in purchasing textiles. I naturally hope that the cost of Hong Kong's textile industry will be lower." Chen Zhiwen said with a smile.

There are also many textile factories in Hong Kong. The largest South African spinning factory is large in scale and employs thousands of employees. However, in terms of technology and quality, it is not as good as many textile factories with a long history abroad. Many high-end garment companies have to import from outside, which increases the cost.

For Chen Zhiwen, who wants to turn Hong Kong into the best supplier of his retail empire, this kind of cost is a waste. If a foreign-funded textile industry with acceptable technology is introduced to Hong Kong, it can not only reduce his procurement costs, but also allow him If local brands earn more profits, they may be able to develop Hong Kong's high-end textile manufacturing industry.

The most important thing is to develop inland in the future. At the same time, it can be regarded as making friends with Buffett, and there may be other opportunities for cooperation in the future.

Of course, there is another bigger purpose, but the layout has not yet started, and it may not be successful.

"So that's the case." Caikens nodded. It's really not easy to find a company like this trading company, and he just checked it roughly.

Chen Zhiwen continued: "Mr. Caikens, you are willing to come to Hong Kong. In fact, you should have such thoughts, right?"

"Yes, I actually had the idea of ​​investing and building factories overseas a few years ago, but Mr. Buffett has always disagreed." Caikens said helplessly.

"With Buffett's shrewdness, it's impossible for him not to know that in the United States, the textile industry has no future. Why don't you agree?" Chen Zhiwen asked with some incomprehension. This can be said to be basic common sense. In the United States, such labor costs Such a developed country with such a high level is engaged in labor-intensive industries, isn't it self-defeating?

Caikens said: "Of course Mr. Buffett knows this, but he would rather subsidize the money to maintain the operation of the textile factory because he doesn't want the workers to lose their jobs, so he naturally refuses to let the factory move. Make money from textile mills."

"So that's the case." Chen Zhiwen nodded and said. It turned out that Buffett didn't like the textile industry at all. The factory, obviously because of "social responsibility", or tens of thousands of employees, is not so easy to dismiss.

"So I need to produce evidence to prove that moving overseas can gain enough benefits for the company. Looking at it now, Hong Kong is indeed suitable for us to invest. Although it is small here, the market is big enough and there are no strong competitors." Cai Ken S said with a smile.

"But compared to Mr. Buffett's financial income, this is still not enough." Chen Zhiwen smiled and said, Hong Kong's largest Nanfeng Textile Factory is estimated to be less profitable than Buffett's investment, which is completely two days and line of land.

In later generations, apart from those Internet companies or high-tech electronics companies and those traditional monopoly enterprises, whose profit can compare with the financial industry? With so many countries and companies, in the end, they have turned from reality to fiction. Isn’t it because finance is too profitable? Even for an auto giant like Volkswagen, nearly half of its annual profits come from financial services.

"It's not enough, but it's still worth a try." Caikens nodded and said.

"If Buffett is unwilling to invest too much money, I can invest in a joint venture. I am familiar with everything in Hong Kong. Besides, I can also provide part of the order." Chen Zhiwen continued.

"Joint venture? Actually, I have thought about this point. Mr. Chen's purpose should also include this point, but I still need to go back and discuss it with Mr. Buffett." Caikens was not surprised at all, as if everything was expected.

"Of course." Chen Zhiwen nodded and said. The investment in the textile factory is not like the cooperation with Zeng Zixing. It requires a real investment of a lot of money. Tens of millions of Hong Kong dollars are still needed. The income is still considerable. The most important thing is that he has provided Hong Kong with a new high-end textile factory, which will be good for him in the future, and may also help Hong Kong's textile industry to transform, although the probability is not high.

Of course, it doesn't matter if Buffett disagrees with the joint venture, nor does Chen Zhiwen, as long as the factory can come.

Caikens continued: "Mr. Chen, although I checked some Hong Kong data in the United States before, it was not clear. Although I have come to Hong Kong now, my time is limited, so I hope Mr. Chen can help me. Can you collect some data for me?" Data, I can pay for it."

"Okay, no problem." Chen Zhiwen nodded, and did not foolishly agree to help for free. Although he didn't like this little money, the other party had to give it.