Chapter 1464: I Believe In You, Mr. Mag
“The price only needs to be lowered for things that nobody wants. For treasured items, no matter how high you set the price, you will still have customers willing to pay. As for the customers who think that the price is too high, it is just because they are not Blue Suede’s target consumers. The normal price range for your target consumers would seem exorbitant to them. That’s a problem that can never be reconciled.” Mag took a sip from his teacup, and told Gloria with a smile, “Do you think Mamy Restaurant needs to lower its prices?”
“The food you make is so delicious, and also has such wondrous effects. It’s something that cannot be found anywhere else in Chaos City, or even the entire Norland Continent. Why is there a need to lower the price, then?” Gloria shook her head.
With a smile, Mag said, “The same logic goes for Blue Suede too. It has a novel design, and also broke through the rigid mindset when it comes to color coordination. All these things are very rare in the market, which is also uniquely Blue Suede.
“They wouldn’t be able to get another suave trench coat or soft and comfortable down jacket elsewhere. They wouldn’t be able to get the cool design and cutting, and that is why people go for Blue Suede.”
Gloria thought for a while, and raised her concern. “But clothing design can be imitated very easily. The materials we use are not difficult to find in the market as well. If other tailors wanted to replicate our design and sell their goods at an even lower price, wouldn’t that be a huge blow for Blue Suede?”
“Actually, once a luxury good reaches a certain level of recognition, the price is no longer to justify how it looks, but rather its brand.
“This was also why I wanted you to make Blue Suede into a luxury brand. Imitation would ultimately happen, but no matter how real it looks, the wealthy women would still feel ashamed for wearing imitations. Therefore, they would never go there.
“And those who aim for cheap goods that are very well imitated are those that cannot afford to buy Blue Suede. So whatever they wear would not affect Blue Suede at all.
“In contrast, after a portion of them realize that only the upper class wears Blue Suede, they will scrimp and save so that they can also own a legitimate Blue Suede. These people can be seen as Blue Suede’s invisible clients.
“The way to make Blue Suede competitive is to continue launching new items. As long as we can lead the fashion trends, Blue Suede will be able to stand tall,” Mag analyzed.
“Luxury brand… Imitations?” Gloria furrowed her brows together. After thinking for a long while, she started to become clear. She looked at Mag, and said, “I understand. Blue Suede should be focusing on moving towards being a high-end exquisite product brand. That itself would be able to bring us a large market and high profit. We should not be thinking of earning whatever money we can.”
“Yes. However, middle and lower-tier clothing is actually an even larger market. If you are able to efficiently produce large batches of clothes, lower the cost price of each individual item of clothing, and cover the middle and lower-tier clothing market, the amount of profit that you will be able to rake in is unimaginable. Of course, to do this, you must create a completely new brand that is exclusive from Blue Suede, and is operating in a completely different price range.” Mag looked at Gloria, and said, “I have been considering going into that recently. I wonder if you would be interested to join me?”
“Mr. Mag, do you want to switch careers?” Gloria looked at Mag, shocked. Mag only participated in the designing aspect for Blue Suede previously. Now, he sounded as though he had the intention to jump straight into the fashion industry.
“Actually, I am rather interested in cooking and fashion design. If I can find a partner that could be in charge of operations, that will be the best. That was why you were the first one who came to my mind,” Mag told Gloria with a smile. His eyes were filled with trust and expectations.
Working with Gloria had been very enjoyable. Besides, Mag could see the leadership quality in her. All she needed was time and opportunity, and she would definitely become a giant in the business industry, whereas he was more suitable to play the role of an angel investor.
“I’m the first one you thought of?” Gloria looked at Mag, and when she saw that gentle smile, she felt her heart skip a beat and blushed. She said with a shivering voice, “Do… do you have a plan?”
Mag nodded, and said, “I’ve set up a spinning mill in the northern part of the city a while ago, and it has already started production. With the help of new spinning machines, the efficiency has increased, and I was intending to build another weaving factory and a clothes-making factory there too.
“For the clothes-making factory, I plan to produce the middle to lower-tier clothes in large quantities, and the target consumers would be the largest group of people, the middle to low-income people. My aim is to allow them to wear cheap clothes of good quality.
“However, producing the clothes is just one aspect. My most urgent problem right now is how to sell the finished clothes and build a wide enough network. I know the Moreton Family’s textile assets used to sell very well. Right now, you should be managing this property, so I want to know if you would wish to work with me in this direction so that I can sell my clothes through you.”
“Sell your clothes through us?” Gloria was slightly stunned.
“Is there a problem?”
“No… It’s not…” Gloria shook her head, and said, “My grandfather just announced that he was going to hand the family’s textile assets over to me this morning. He also said that he would give me three months to reform the assets, including simplifying the supply chain so that we would stop making a loss. My other reason for coming over is to ask you for your suggestions on this.”
Mag was stunned when he heard that. What a coincidence. He thought for a while, and said, “In that case, I suggest for you to close the parts of the supply chain that are making a loss, strengthen the distribution channels, and be the sole distributor for my factory. According to my plans, my factory will be able to start mass production in a month’s time, and we will be able to provide a substantial amount of finished products. As long as the distribution channels can keep up with the production, it should reap in quite a hefty profit.”
“Aright. I will begin working on this once I get back.” Gloria nodded.
“Shouldn’t you have your doubts?” Mag asked with a smile.
“I believe in you, Mr. Mag. Besides, I do think that this is a very huge market, and since you are willing to trust me and give me this opportunity, I don’t see what’s there to doubt,” Gloria said with a smile.
Mag looked at Gloria’s beautiful smile, and felt more relaxed. With a smile, he said, “I will come up with a concrete proposal for the partnership in a couple of days, and then we can go through the specific details. I reckon you would be busy for a while. After all, reformation for an old brand is really troublesome.”