Feixue Apparel, Guangzhou Branch!
In the spacious office, Li Yi and An Hong sat facing each other. On the small coffee table between them sat a teapot and two cups.
As An Hong poured tea for Li Yi, she said, “I really didn’t expect to run into you here!”
“Hehe, I just happened to spot this store, so I thought I’d pop in and take a look!”
Then Li Yi asked again, “Sis, how’s business been lately?”
“I was just about to tell you about that. If I hadn’t run into you today, I was planning to head back to Beijing at the end of the month. This saves me the trouble!” An Hong said with a smile.
“What a coincidence!” Li Yi said.
“Following your plan, starting in March, I’ve been leading the team south along the coastline, opening stores in major cities along the way. So far, we’ve opened a total of 107 stores, spread across 77 major cities in 12 provinces and municipalities nationwide.”
An Hong continued, “Thanks to our innovative designs and superior quality, coupled with our policy of accepting returns or exchanges for any quality issues at any time, sales at all our stores have been excellent. Our company-owned stores alone have generated 12.87 million yuan in sales over the past five months.”
Hearing this, I couldn’t help but nod in agreement.
Opening 107 stores in just over five months and generating nearly 13 million yuan in sales was truly remarkable in this day and age.
After all, the profit target in the performance-based agreement he’d signed with the cotton mill was only 20 million yuan, and the company-owned stores alone had already achieved one-third of that goal.
“What about the other sales channels? How are they doing?”
An Hong immediately replied, “The other sales channels are also booming. Following your plan, our sales team has advanced along the Jinpu and Pinghan rail lines, collaborating with the supply and marketing systems along the way to establish sales channels in 243 counties and cities across the inland regions.”
“As of last month, shipments through these partner channels reached 18.75 million yuan—the momentum is incredibly strong!”
“So, does that mean Feixue Apparel’s total sales for these past few months have exceeded 31 million yuan?”
“More than that. Sales for the first half of August haven’t been tallied yet; once we include those, it’ll be at least 40 million!”
“That much?”
Based on Li Yi’s understanding of the apparel industry, with 40 million yuan in sales, the cost would certainly not exceed 10 million yuan.
And for a large factory like State Cotton Mill No. 2, which even produces its own raw materials, the costs would be even lower.
In other words, State Cotton Mill No. 2’s net profit had already surpassed 20 million yuan, meaning he had unknowingly fulfilled the profit-sharing agreement with his superiors.
“That’s right. Since July, sales across all our channels have skyrocketed. We sold 11 million worth of goods in July alone, and we expect even more this month!” An Hong replied.
“Will the cotton mill be able to keep up?” Li Yi asked.
“They can. Last month, Plant Manager Jiang conducted another large-scale recruitment drive for the garment factory, hiring 800 workers from the general public in one go to support expanded production.”
An Hong continued, “Right now, half of the cotton mill’s factory space is being used for clothing production, and the rest is reserved for the textile workshop!”
“Hmm, seizing the opportunity to expand production capacity is the right move, but the scale is still a bit too small!” Li Yi said.
“I also think Director Jiang is being a bit too conservative. The leaders at headquarters have no idea just how popular our factory’s clothing is. Right now, no matter where we produce it, demand outstrips supply, and many stores are frequently out of stock!”
An Hong continued, “So last month I submitted a report to headquarters requesting to double the scale of the garment factory, but the request was rejected!”
“Why was it rejected?”
“Headquarters thought my proposal was too risky!”
“Stupid. They’re all just frogs at the bottom of a well, seeing nothing but a tiny patch of sky.”
Li Yi continued, “If we don’t seize the market quickly while others haven’t caught on yet, once other textile mills jump in to grab their share, the money won’t be nearly as easy to make!”
“Hmm, that’s exactly what I was going to say!” An Hong replied.
“What? Are there already competitors in the market?”
“Yes. We’ve discovered that right after Feixue Apparel entered Shanghai, several local textile mills have been quietly copying our designs and selling them on the market!”
An Hong continued, “Since their clothes are priced much lower than ours, sales are going very well. As expected, this situation will soon spread across the country, so we must find a way to deal with it!”
Li Yi thought for a moment and said, “There’s no stopping this. The only thing we can do is build up Feixue Apparel’s reputation as a top-tier brand while quickly capturing market share.”
If this were happening overseas, Li Yi would have countless ways to deal with the situation—for example, fully leveraging patent laws to prevent others from copying his designs.
But such practices aren’t common in China right now. Although relevant patent laws were established as early as the founding of the nation, due to the unique social environment, administrative enforcement plays a significant role in intellectual property management, rendering the patent laws largely ineffective.
Although we joined the World Intellectual Property Organization (WIPO) last year, we have since begun a new round of intellectual property legislation.
But the actual Patent Law won’t be enacted and implemented for another three or four years, and during that time, it’s simply impossible to prevent others from copying their designs.
An Hong nodded and said, “Then you’ll have to go back and discuss this with Plant Manager Jiang and the others. We’re already facing challenges!”
“Alright! Is there anything else?”
“Yes. I also want to ask: what should we do going forward?”
Perhaps fearing that Li Yi wouldn’t understand her meaning, An Hong immediately elaborated: “You’ve already handed over Feixue Apparel to the Second State-Owned Cotton Mill. Since the factory is collectively owned, the most you can hope for is a share of the profits; beyond that, it has nothing to do with you.”
“And don’t even get me started—I’m just a temporary staff member you assigned here. As operations here gradually get back on track, the Second State Cotton Mill will surely start reclaiming control. What are we supposed to do then?”
Li Yi hadn’t expected An Hong to think so far ahead—already considering the future at this stage. Her intellect was indeed enough to outshine the vast majority of elites in this era.
“We’ll definitely have to leave State Cotton Mill No. 2 eventually—there’s no question about that!”
Li Yi continued, “But the work you’re doing now isn’t entirely in vain. The ‘Feixue Apparel’ project isn’t just about gaining experience—it’s also about leveraging the prestige of State-Owned Cotton Mill No. 2 to build connections and assemble your own team.”
“When the time is right, you’ll be able to step away from the Second National Cotton Mill and take on new projects!”
Hearing this, An Hong’s eyes lit up instantly, and she asked, “So when will the time be right?”
“That depends on policy and your progress here. I estimate two to three years at most!” Li Yi said.
“Alright, then I’ll focus on doing a great job with the ‘Flying Snow Apparel’ project for now!” An Hong said.
“Alright. You don’t need to worry about the Second State-Owned Cotton Mill kicking you out anytime soon. As long as my third older brother remains the factory director and the higher-ups still recognize our agreement, no one can touch you!” Li Yi said.
“I understand!”
Li Yi glanced at his watch and saw it was almost noon. “Sis-in-law,” he said, “it’s just about lunchtime. Let’s grab a bite together!”
“Sure, I actually know a state-run restaurant nearby that serves great food!” An Hong said with a smile.
“That sounds great!”
With that, the two of them left the Yangcheng Branch together…
………
PS: I’m finally back home. Updates will resume tomorrow!
I’ll keep writing now and aim to finish another chapter!