Chapter 60: Donghua Clothing
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Chapter 60: Donghua Clothing
Investment is not a game—it requires rigorous analysis and careful decision-making.
Investing tens of millions at a time isn't just investing; it's gambling.
At this stage, Li Yi didn't have the courage to take such risks. As Xu Qingnan had pointed out, while they had the ability to make money, they couldn't afford to lose it recklessly.
For the next few days, Li Yi visited the city's clothing wholesale market daily, accompanied by Wei Sanpao. His sole focus was market research.
First, he needed to determine what types of clothing were currently popular in Guangzhou and Shenzhen. At the same time, he had to understand the manufacturers behind these trends, their supply chains, and the overall distribution process. Only after grasping these aspects could he decide whether entering the clothing industry was a viable move.
After several days of thorough research, Li Yi finally gained a solid understanding of the market.
His field investigations and consultations with various sources revealed that Guangzhou and Shenzhen were home to many popular clothing styles, far more modern and trendy than those found in inland regions. Additionally, dozens of well-known clothing companies operated in these two cities. However, only two had the strongest growth potential:
1. Tongyi Clothing Company, which still primarily produced styles that were popular in the 1980s, such as bell-bottom pants.
2. Donghua Clothing Company, which had signed contracts with foreign manufacturers and was preparing to introduce internationally popular fashion trends to Guangzhou and Shenzhen.
By the late 1990s, Donghua's Pierre Cardin suits would become one of the most prestigious brands in the entire country.
However, as with any new trend, these innovations were bound to face resistance before gaining widespread acceptance. If Li Yi was correct, Donghua Clothing was currently in a difficult position, struggling to establish itself in the market.
This presented an opportunity. If he could secure a contract with Donghua and open a chain of stores across Jiangnan Province, he would undoubtedly turn a significant profit.
With this in mind, Li Yi decided to visit Donghua Clothing Company first.
He had no prior knowledge of the company. However, from speaking with wholesale market vendors, he learned that Donghua had rapidly expanded in recent years, thanks to its pioneering introduction of trendy fashion. It was now a leading force in the Guangzhou-Shenzhen clothing industry and ranked among the top 100 clothing companies nationwide.
That said, Donghua had recently encountered internal management problems, causing it to decline.
With nearly one million yuan in cash, Li Yi now had substantial capital. Money grants power, and he intended to use his financial advantage to bypass bureaucratic procedures. Instead of going through the usual channels, he went straight to Donghua Clothing Company and requested a meeting with its chairman, Chen Donghua.
As one of the first business pioneers in the Guangzhou-Shenzhen area, Chen Donghua was a well-known and highly respected entrepreneur. His guiding principle in business was:
"Time waits for no one. Only by staying in tune with global trends can one truly keep pace with the times."
Li Yi deeply agreed with this perspective.
Entrepreneurs like Chen Donghua were rare in this era—perhaps that was why Donghua Clothing would later rise to the top ranks of the industry.
However, for an unknown figure like Li Yi, meeting a business tycoon was no easy task.
As expected, when he explained his intention to the company's receptionist, she immediately rejected his request, citing the lack of an appointment.
But Li Yi wasn't one to give up so easily.
He firmly reiterated his purpose, stating that he wanted to discuss a multi-million-yuan business deal with Chairman Chen. He urged the receptionist to report this immediately.
The receptionist, taken aback by his mysterious confidence and formal attire, hesitated for a moment before deciding to escalate the request.
Though Chen Donghua doubted that a young man could be involved in such a large deal, he ultimately agreed to the meeting. After all, every major client started somewhere—there was no reason to turn away an eager business partner.
The First Meeting
Inside his office, Chen Donghua met Li Yi for the first time.
Li Yi's first impression was striking—he appeared sharp, composed, and confident.
Upon closer inspection, the suit Li Yi was wearing turned out to be a Connery suit, a prestigious Italian brand.
Unlike the broad-shouldered suits commonly seen in China during the 1990s, Connery suits were designed to embody the spirit of chivalry and emphasized refined, tailored elegance.
Although Li Yi hadn't spoken a word yet, his aura alone made a deep impression on Chen Donghua.
Ordinary people couldn't cultivate such a temperament.
Expensive clothes could be bought with money, but true confidence and presence couldn't be faked—they were shaped through years of experience and refinement.
In fact, Li Yi's demeanor wasn't an act. His natural aura of leadership came from decades of experience in his previous life.
The Conversation
"You're not a local, are you?" Chen Donghua asked.
Li Yi smiled and replied, "My family is from Jiangnan Province. I've only been in Guangzhou and Shenzhen for a few days, looking for business opportunities."
Hearing this, Chen Donghua's interest was piqued. He leaned forward and asked, "Business opportunities? People say Guangzhou and Shenzhen are full of wealth, but you should know that opportunities only come to those who are prepared."
Li Yi responded confidently, "Who says I'm not prepared?"
"You claim to have a multi-million-yuan business proposal for me. What exactly do you want to discuss?"
Li Yi's expression turned serious. "Your inventory."
Chen Donghua raised an eyebrow. "Inventory?"
"As far as I know," Li Yi explained, "Donghua Clothing recently received a large batch of new products, but the market response has been weaker than expected. As a result, you're now facing a massive stockpile issue."
Hearing this, Chen Donghua's expression changed slightly.
Although this wasn't an absolute secret, the fact that a young man who had only been in Guangzhou and Shenzhen for a few days had discovered it so quickly indicated serious internal leaks within his company.
At the same time, it made him realize that Donghua's crisis was more severe than he had initially thought.
After a moment of contemplation, Chen Donghua nodded and openly admitted, "You're right, but I believe time will solve this issue. I have full confidence in this batch of clothing."
Li Yi smiled and continued, "I have a way to make your inventory sell out quickly."
Upon hearing this, Chen Donghua shook his head and chuckled, "Do you understand marketing?"
"A little."
"A little isn't enough," Chen Donghua said. "Modern fashion trends don't change just because someone says they will."
Li Yi wasn't fazed. Instead, he countered with a question. "Chairman, have you ever heard of 'hunger marketing'?"
"Hunger marketing?"
Chen Donghua frowned in confusion. He had never heard the term before.
Li Yi smiled and continued, "Since the chairman hasn't heard of this term, let me ask—are you familiar with the saying, 'Scarcity increases value'?"
"Of course," Chen Donghua nodded. "That's common knowledge. But what does it have to do with clearing our inventory?"
Li Yi leaned in and whispered something in his ear.
The moment he finished, Chen Donghua's eyes widened in shock!
His expression shifted immediately, now filled with admiration and appreciation as he looked at Li Yi.
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