"Feng, your friend from China is here today. Who is he? Do I know him?" Before Kirilenko entered the restaurant, his loud voice could be heard.
"You have met him before. Maybe you don't know his name, but you should remember him. He is the roundest one."
Fatty Huang's figure is unforgettable for those who had met him once. When Feng Yu first met Fatty Huang, he can only be considered a fatty. But now, he is a meatball. He is not even 1.7 meters tall, and he weighs more than 120 … … kg!
Simply put, Fatty Huang's weight is around 250 kg.
Feng Yu wonders if Fatty Huang's knees and spine can take it. That guy seems to cherish his life. Why doesn't he know how to lose weight?
Kirilenko suddenly realized it's that meatball.
Fatty Huang arrived and was sent to the restaurant. Hua Xia people like to chat while eating. With Fatty Huang's figure, it's hard to believe that he is not a foodie.
Fu Guangzheng, Li Zekai, He Laosan, and a few other people from Hong Kong also came over to support Feng Yu.
Fatty Huang saw that Feng Yu had invited so many powerful people to accompany him, and he was very excited. Although Fatty Huang is considered a tycoon, he cannot be compared to these people. That old Russian is Kirilenko, who is ranked behind Feng Yu on the list of richest men.
"Nice to meet all of you. It is my honor to meet all of you." Fatty Huang greeted everyone with his hands in front.
"Hahaha, Mr. Huang, many of our products are produced by your factory. There's no need to be so courteous with each other." Fu Guangzheng laughed. Other than Feng Yu, he is the closest to Fatty Huang.
"Mr. Fu, you are too courteous. Just call me Fatty Huang."
"Don't be so polite. Let's eat and chat." Feng Yu asked everyone to start eating.
Kirilenko likes to drink, and Feng Yu and the rest do not drink with him. If Fu Guangwei was around, it would still be fine. But today, there was Fatty Huang. He was also tested in the Alcohol Killing Field.
The two of them gulped down two bottles of white wine each and drank happily. Kirilenko patted Fatty Huang's shoulder and felt a sense of regret for not having met him earlier.
In Kirilenko's eyes, anyone who could drink with him was a good brother!
"General Manager Feng, a toast to you. Thank you for helping me."
Feng Yu drained the glass of wine in the quilt, put it down and said, "Old Huang, you're treating me like an outsider. When I first started my business, you supported me a lot, didn't you? "
"Besides, you don't have to be so polite with me for such a small amount of money."
Fatty Huang: "…" As expected of the richest man in the world. That was 600 million USD, but it was like six yuan to him.
Kirilenko asked curiously. "Feng, what are you all talking about? What is he going to do?"
"Oh, he encountered some cash flow problems, so he asked me for help. Oh right, he is one of the most important OEM and distributor under Taihua Holdings. He is also one of the first people to cooperate with me."
"OEM? Are we making money from that? " Kirilenko is curious. OEM is just labor, and Hua Xia's labor costs had increased by a lot. Are there still profits now?
Li Zekai, He Laosan, and the rest are also curious. Why is Feng Yu so important to this OEM? If this company is not willing to do it, he can always find another company.
Furthermore, Taihua Holdings still has many factories, and they can produce their own products. Even if the profits are low, it's still a profit.
"This OEM is different from what you all understand. We are not just giving them the blueprints, and they will produce according to our logo. They are involved in the design, development, production, and after-sales. They are closely related to us. "
This is Foxconn's 3C model, and this is why so many knockoffs in Feng Yu's previous life look so similar to other brands. Even the internal design is done by Foxconn.
Don't think that Foxconn is only charging the OEM fees, design and development fees, after-sales fees, and even global operations fees. Foxconn will decide which factory will produce more products for you. This way, you can target the market, and your warehousing and transportation costs will be the lowest.
This was the strength of Foxconn. It was the world's most profitable OEM company, the standard setter, and the overlord of the industry. This was not just for show.
Their annual turnover had already reached 100 billion USD. Just based on this ranking, they could be ranked in the top 100 in the world. However, next year, they would definitely be ranked in the top 50. This was because many of the companies ranked above them had either gone bankrupt or been acquired by others. As time went by, they would naturally rise.
The US, Singapore, Japan, and Europe also have strong OEM companies. But all of them had suffered losses this year. On the other hand, Hua Xia's market share is still rising.
Just Lenovo, Wind and rain, Aiwa, etc. products' sales had increased. G-Box, Changhong, and the rest of the domestic brands had also seen the benefits of OEM. This is to lower the cost of investment and increase the companies' risk tolerance.
Sometimes, including the OEM fees, the production cost is still lower than the manufacturers. This is because the OEM is more professional, efficient, and has a larger scale.
It is also because of China's PC, telecommunication, consumer electronics, etc., that Foxconn and Fatty Huang are doing better. But Foxconn is not doing as well in Hua Xia as in Feng Yu's previous life. This is because of Fatty Huang, a strong competitor.
Most importantly, Fatty Huang had contracts with Lenovo, Aiwa, Wind and Rain, and many other top electronics and home appliances brands in the world. Foxconn had been looking for these brands.
"How much is the profit margin?" Kirilenko asked.
"The gross profit margin is very high. The net profit in China should be about 6 to 7% now." Feng Yu looks at Fatty Huang. This is only his estimation.
Fatty Huang nodded. "Last year, it was 7.3%. This year, the labor cost had increased to about 6.8%. But next year, the factories in India and Brazil will start production. The profit margin there should be more than 8%, and the labor cost there is very low."
"Asus, the world's biggest motherboard manufacturer, is also an OEM. Japan's Sharp is also an OEM. Many electronics, home appliances, and auto parts manufacturers are also OEM. This is because their products cannot be sold, but they have so many factories. They cannot afford to lose money because they have no products to produce."
"Also, Old Huang's company has the highest profits in the industry. The other OEM companies are not doing well. Most importantly, you must choose the right partner. If you work with me, I will not let you suffer any losses. "
OEM is not the production of products that others are not willing to produce. It is the production of products that others cannot produce.
Kirilenko's eyes brighten up. OEM seems to be profitable. He will get his men to look into this company and see if he can invest in it.
… …
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