Chapter 1836 - Reorganizing the Wen Corporation
Chapter 1836: Reorganizing the Wen Corporation
Wen Xinya was extremely fervent in her bid to clean up and completely reorganize the Wen Corporation.
With Xia Ruya trying to lure away their staff with higher pay, Wen Xinya took this chance to get rid of those employees who were so easily swayed by promises of higher pay, as well as those unmotivated workers who were just turning up every day to get a salary.
She moved very discreetly, such that only a small number of the employees were directly fired by the company. Most of them were quietly managed out, and a large proportion of them ended up jumping over to the Li Corporation.
Very quickly, the Li Corporation was at full capacity and could no longer hire any more. There were still many Wen Corporation staff who wanted to leave but did not dare to do so for fear of not getting a better job. The Wen Corporation might be in dire straits now, but they were still getting paid. As a result, those employees stayed on despite their doubts.
It was a major talent drain for the Wen Corporation.
But after Wen Xinya’s reorganization and clean sweep, she still managed to retain most of their top employees.
As their sales continued to take a hit in the markets, Wen Xinya led Cao Zixing, Xue Yishan, and several other directors to conduct a thorough review of all the operations in the Wen Corporation.
Even their warehouse operations were not spared.
“Are these the outfits that had been recalled from the market due to quality issues?”
Wen Xinya’s face turned grim as she looked at the huge pile of outfits stacked inside the warehouse. This batch of clothes had caused major losses to the corporation. They had been stored inside the warehouse all this while.
Sun Yichen said, “Yes, there are about 1.2 million outfits here. Not only are there quality issues with the fabric, but even the stitching also does not meet the required standards. There is even a portion of the outfits which had been made with extremely inferior materials.”
His words were met with complete silence.
This batch of clothing was supposed to be premium items and had cost them more to produce. They would have fetched a higher price in the market too. The sight of them piled up like trash here was heartbreaking.
Wen Xinya said calmly, “Since the problem lies with the quality of the fabrics, then just get rid of them. We can’t sell them anyway, so there’s no need to keep them here.”
She was most worried about this batch of inferior quality garments being leaked onto the market. Previously, Wen Corporation could still decisively recall their products and compensate consumers so as to resolve any issues. But now, the Wen Corporation was mired in the money laundering scandal and had suffered a huge blow to their reputation. They could no longer afford any more damage to their brand name.
Sun Yichen raised his brows slightly. “The fabric quality issues of this batch of clothing is not too severe. The biggest problem is the stitching. We can still release this in the lower-priced markets if we send these back for re-stitching.”
It would be too huge a loss for the Wen Corporation if they dumped such a large batch of clothing.
Wen Corporation was already in dire straits now. Although they had been downsizing their operations and cutting costs wherever possible, their finances still remained an issue. They really couldn’t afford to lose this batch of goods.
He would never have suggested such a solution in the past, as the Wen Corporation had to maintain its reputation and brand name.
But things were not the same now. The Wen Corporation was in major financial distress. He was confident that Miss Wen would definitely support his suggestion.
Everyone started discussing about Sun Yichen’s suggestion.
“That is a pretty good suggestion. The most pressing issue at the moment is still Wen Corporation’s financial crisis.”
“The Wen Corporation now is no longer like how we were before. There’s no point sticking to the old way of doing things. Earning money and getting profits is the most important thing now.”
“This batch of clothing doesn’t look that bad. It will be a pity to just throw them away.”
One by one, everyone agreed with Sun Yichen’s suggestion.
In everyone’s opinion, with all this downsizing, the Wen Corporation would soon end up a small second-tier enterprise, anyway. By those standards, these batch of goods were definitely good enough.
Wen Xinya’s lips curled up in a slight smile. Her tender, pink lips radiated a chilly aura. “I don’t agree. Good reputation and trusted quality have always been the number one goal pursued by the Wen Corporation. This goal will not be changed for any reason.”
Giving up Wen Corporation’s good reputation hard-earned over so many years just for short-term profits—these folks were just too near-sighted.
She glanced subtly toward Sun Yichen.
He was Grandpa’s most trusted assistant. Since she took over control of the Wen Corporation, he had been by her side the entire time and helped her a lot. As a result, she also trusted him quite a bit.
However, his earlier suggestion had disappointed her.
To be fair, he was only suggesting so to help the Wen Corporation overcome this current obstacle. But what about thereafter?
If the Wen Corporation did this and lost its good reputation, even after the money laundering case was resolved, the company would have already degraded into a second-tier business. It would be very difficult for them to rise again then.
It was obvious Sun Yichen didn’t believe that the Wen Corporation would be able to overcome its current difficulties.
Sun Yichen said, “Miss Wen, the Wen Corporation is already right at the brink. We need to face up to reality and choose the most appropriate pathway for the company. Different parts of Country Z have developed at a different pace, which has created a huge income disparity. As a result, there are all sorts of spending levels.
“Wen Corporation’s good reputation has already been damaged by Li Corporation’s constant attacks. It is very difficult for us to continue selling high-end luxury items. But as our company has been around for years and built a good foundation, it is still possible for us to sell mid-range products. Selling this batch of lower-quality goods in the second- and third-tier cities will bring much-needed revenue to the Wen Corporation. It is not at odds with our sale of high-end luxury items at all. We will just be expanding into the mid-range markets.”
He made a lot of sense. Many people indicated their agreement.
All except Cao Zixing, Xue Yishan, and Wen Xinya, who were frowning.
Wen Xinya spoke up. “I admit that your suggestion is not bad given the current status of Wen Corporation. But it is in direct contrast to the Wen Corporation’s long-standing company mission. It will be a major impact on our corporate image if we do that.
“Consumers who spend large sums of money on luxury items are not just looking at quality, but also for the sense of superiority of owning a product with a high-end brand name. If this same brand is also servicing the low-end markets, and there are many others who are wearing second-tier products bearing the same brand name as your luxury item, do you think there will still be any sense of superiority left?
“A brand that has no fixed identity is not suited for the luxury industry. If the Wen Corporation wants to cater to the lower-tier markets, then we should give up the luxury brand sector and give up the name which we have so painstakingly built up for ourselves over the past 50 years. Do you think it is worth it?”
Everyone was struck speechless.
Even though the Wen Corporation was facing its greatest danger yet in its entire history of operations, no one was willing to see the company give up its reputation and stoop so low as to compete for the second-tier market.
It was not just a matter of pride.
It was also a matter of profits and interest.