Jiang Luo also commented, “The styles are pretty good, really nice.”
They moved on to another shop. Inside, Mo Wanzhen pointed to a shirt hanging high up. “This spring, the best-selling item is this kind of shirt. All the stalls have them.”
Jiang Luo looked up.
The shop owner greeted them. “Take a look, feel free. Prices are negotiable. Buy in bulk, and you can get a discount.”
“If you order today, we can ship everything through the post tonight.”
After leaving the shop, Jiang Luo asked Mo Wanzhen, “Do a lot of people come here to stock up?”
Mo Wanzhen nodded. “Yes. People come from nearby cities—Huizhou, Shenzhen, Dongguan, and even further from Shantou, Chaozhou, Zhanjiang, and neighboring provinces. Everyone knows there’s a lot of clothing here.”
“How do they price it?” Jiang Luo asked.
Mo Wanzhen explained, “Every item has a set wholesale price. Buy more, and the average cost goes down. If you only buy three or five pieces, some stalls won’t even bother—they think the profit’s too small.”
“Every day, trucks bring in goods. Every day, packages are sent out by post.”
Jiang Luo glanced at the surrounding stalls and nodded.
They explored the second and third floors. The pattern was the same: stalls everywhere, all selling clothing.
After finishing the building, Mo Wanzhen invited him, “Come see my stall. You can rest a bit and have some water.”
“Sure.”
Her stall was on the third floor of one of the buildings, in the middle. It was about the same size as the others—not too big, not too small.
Inside, clothes hung on the walls, and rows of racks held more clothing. Everything was neat and tidy.
Old Third and Old Fourth either sat or stood drinking water. Jiang Luo took a seat, sipping his water. “How’s business?”
Mo Wanzhen closed the glass door to keep people out; she wasn’t selling today.
“Still pretty good,” she said when Jiang Luo asked.
“And my approach is a little different from others. I do wholesale, but I also do retail.”
Jiang Luo’s mind started racing. Retail sells fewer items, can’t negotiate much, doesn’t make a lot of money, and takes up time. Others don’t do it—so why does she?
Mo Wanzhen explained, “I realized that a lot of young girls come here looking to snag a cheap deal.”
“Most shops don’t sell retail, so they can’t buy. I do retail, so they come here.”
“Gradually, their friends bring friends. Everyone knows they can buy one or two pieces here for cheaper than retail stores outside. They all come.”
“Even a little is still something. Sell more, and more people come—I actually made a decent profit.”
She held a finger to her lips, winked, and said, “I’m telling you this, no one else knows.”
Jiang Luo nodded approvingly. “With brains like yours, you should be in business.”
Mo Wanzhen suddenly remembered something and left briefly.
When she returned, she carried a bag. She took out several pieces and showed them to Jiang Luo. “These came from the factory, right?”
Jiang Luo looked—they were all Shengfei Clothing.
“Right,” she said, examining them. “They’re beautiful. These styles aren’t at any other stall here.”
“The girl next door kept these pieces. She didn’t send them to her stock—she couldn’t bear to sell them.”
Jiang Luo looked at the clothes in her hands and said softly, “They’ll definitely sell here in Guangzhou.”
Jiang Luo didn’t stay in Guangzhou long. After two more days, he visited several large clothing factories, then said goodbye to Mo Wanzhen and flew back to Haicheng with Wang Junqing and the others.
On the plane, Jiang Luo stared into space.
The factories were large, though he didn’t go inside—just circled the perimeter.
Guangzhou was bustling everywhere. Streets and shops were filled with people, mostly young.
The city was modern: buildings under construction, roads being renovated, traffic lights installed.
Jiang Luo had never seen Guangzhou in 1991. This first impression made him think it rivaled Haicheng. From the streets, restaurants, and clothing stalls, he could see the city’s vitality.
He thought: Guangzhou is developing fast. Shenzhen is already a Special Economic Zone. This area will surely become one of the leading southern cities.
A place like this is perfect for getting a head start in business.
Now that he knew, he couldn’t miss the opportunity. The question was: how to start?
Back in Haicheng, Jiang Luo returned to Shengfei.
At the factory, Zhang Ningfu reported that workshops and factories nearby had increased output.
He also added, “I just learned that someone in town is planning to build a fairly large clothing factory. They’re scouting locations, and town officials have been showing them around these past few days.”
Zhang Ningfu worried, “Will this affect us?”
Jiang Luo, sitting by the tea table and pouring himself a cup of hot tea, was unbothered. “Our factory is running well, lifting the local economy. Others can see that. They know there’s money to be made, so of course they’ll follow suit.”
“If the town wants to develop, they won’t reject others from setting up factories. We won’t be the only ones.”
“Remember: money in this world isn’t just for me. Others can make it too.”
“I make money, they make money. That’s fine.”
“If you want to monopolize, you need the ability to do so. Without it, focus on your own business and don’t worry about others.”
Zhang Ningfu asked, “You’re not worried?”
Jiang Luo blew on his tea. “Why would I be? I wasn’t the first to build a factory in town, and I won’t be the last. The money in the clothing industry isn’t meant for just one person.”
He thought further: The southern clothing industry shouldn’t only benefit the original players.
That evening, Jiang Luo returned to Wukang Road. Huo Zongzhu also came back, bringing food from a restaurant.
They sat down to eat. Huo Zongzhu asked, “How was Guangzhou?”
Jiang Luo replied while eating, “It’s good. Many young people work and do business there. There’s a mature wholesale market supplying surrounding cities.”
“I also checked out several factories. Walked around the outside—they’re big and modern. Some clothing designs look like copies of Hong Kong or European brands.”
“The main issue in that market? Design and style. Too conservative in materials and color—nothing eye-catching.”
Huo Zongzhu understood immediately. “You want to expand your business there?”
Jiang Luo nodded. “That’s the plan. I’m thinking how to start.”
“That could be tricky,” Huo Zongzhu said.
Jiang Luo picked a few items from a large bag of clothes he brought and handed them to Huo Zongzhu. “Look at these.”
Huo Zongzhu examined the tags but didn’t immediately get the point.
Jiang Luo explained, “Check the factory. See if multiple items come from the same one.”
Huo Zongzhu looked and noticed—it was true.
Jiang Luo said, “Most of the clothes in the stalls probably come from several large factories in Guangzhou and nearby. They have high capacity, produce a lot, and cover almost all the stall demand.”
Huo Zongzhu nodded.
Jiang Luo continued, “I originally considered outsourcing production of Shengfei clothes to them, then selling locally through their wholesale stalls.”
“Mm.” Huo Zongzhu approved the idea.
“But later I realized why it might not work.”
Huo Zongzhu immediately guessed: “Local southern bosses have strong family and clan networks. They dominate the market and resist outsiders taking business.”
“Exactly!” Jiang Luo said. “I went to see. Those big local factories are clustered in one area. I suspect the owners are relatives, or maybe the same family.”
“At first, outsourcing a few styles might go unnoticed. But if Shengfei sells as well as it does in Haicheng, they won’t accept it.”
“They won’t make the clothes for me and might even copy my designs. I don’t mind imitation—it’s inevitable—but I worry about provoking them. These clan-run businesses… what might they do?”