Hong Kong Island: From a small stall to a global supplier

Streamlining the industrial chain is indeed one of the most effective ways to reduce industry risks.

Wang Yaotang's interest in the blank videotape manufacturing industry is not without reason. His company, Yaoguang Audio-Visual Recording, was one of the earliest large-scale videotape recording companies in Hong Kong. In recent years, with the growth of the videotape rental and sales industry, the factory has also expanded rapidly. Last year, the company reported that it recorded 3000 million genuine videotapes annually!

What concept?

This is the golden age of Hong Kong cinema, producing 150-200 films a year. Each film has thousands to tens of thousands of tapes recorded. In addition, there are some videotape recording jobs undertaken for scripts, Korean and Taiwanese films, educational films, etc., with an annual recording volume of 5000 tapes.

Yaoguang holds a 70% market share.

In addition, approximately 2000 million tapes of erotic films are recorded each year, and approximately 2000 million pirated European and American films are also recorded. More than 7000 million blank videotapes are consumed annually!

In recent years, the production capacity of blank videotapes in Japan has exploded, driving down prices significantly. As a major customer, Yaoguang can get a purchase price of around $1.8, with annual imports of videotapes reaching approximately $1.4 million.

We can't keep having our necks choked, can we? What's the point of talking about industry safety then? Besides, it's $1.4 million, why not do it ourselves?

With its own factory as a safety net, it's only natural to venture into manufacturing; the videotape business can continue for at least another 13 years.

Four-Eyes had thought about this a long time ago, but Wang Yaotang kept acting haphazardly, which is why things have been dragging on for so long.

……

"Good afternoon, Yamashita-kun."

In a private room of an izakaya in Tokyo, Chinese-American lawyer Zhang Changbang bowed and gestured for people to enter. As a Chinese-American lawyer born and raised in Japan, he no longer showed any trace of his Chinese heritage, and even changed his everyday name to a Japanese one.

As for people who can speak Chinese and write Chinese characters, there are too many of them in Japan, and the higher you go, the more there are.

Even the tombstones of high-ranking members of organized crime groups like the Yamaguchi-gumi are inscribed in Chinese after their deaths...

Only the lowest commoners use Japanese...

Yamashita Matsumoto smiled and bowed, and after a few polite exchanges, the two stepped inside.

After eating and drinking, and downing two bottles of sake, Zhang Changbang felt the atmosphere was just right, and with a smile, he brought up the purpose of the invitation: "I heard that nearly half (60%) of the blank videotapes produced each year are sold to Hong Kong?"

"Ah, that's right. Some of it is recorded in Hong Kong, and some is transshipped through Hong Kong to Southeast Asia and Europe." Yamashita Matsumoto nodded with a smile.

Wow, such a large quantity?

"Haha, the labor over there is even more lowly. People from the noble Japanese Empire would never want to do such low-end work."

“I see the benefits not only as lower labor costs, but also as a better tax environment there, which definitely allows you to earn more money.”

"This is real."

"So, haven't the major companies considered setting up factories in Hong Kong?"

Matsumoto Yamashita laughed loudly, "You don't understand. This isn't simply a matter of how much money we make. In the videotape manufacturing industry, we Japanese have a monopoly. Any extra costs can be passed on to other companies, ensuring more jobs domestically, which increases the bargaining power of each company. As for building factories overseas..."

Yamashita Matsumoto shrugged. "Unless one day other countries catch up in terms of videotape production and quality, forcing them to lower prices to compete, but that's impossible. Benz is the strongest!"

As he spoke, he picked up his wine glass and drank it all in one gulp. He squinted his eyes and hummed a little tune in a blissful state, clearly a little drunk.

Zhang Changbang smiled and drank a glass with me, saying, "This kind of monopoly is certainly a good thing for us at the University of Pennsylvania, but it may not be so for individuals."

"With Yamashita's abilities and contributions, he should have gone further long ago, but there is almost no competition in the market, allowing those who are incompetent to occupy high positions. I feel sorry for Yamashita."

"Hmm?" Yamashita Matsumoto slightly opened his eyes.

"Yamashita-kun just said that it's impossible for him to lower prices for the sake of competition. If Yamashita-kun wants to advance further, he can only wait for the people above him to retire... I wonder how old those people are now?"

When this was mentioned, Yamashita Matsumoto's expression turned rather unpleasant.

He graduated from the University of Tokyo and joined Fuji Electric early on. For twenty years, he worked diligently and gradually worked his way up to the position of Production Director and Deputy Director, but then he got stuck for five years!
Five years, five years, do you know how I've spent these past five years!
The department head was only a year older than him. The reason that bastard was able to sit in this position was entirely because he married a director's woman. Damn it, you could tell from the way he foamed at the mouth when he spoke that he was a guy who got to the top by licking abalone!

Because he lacks ability, this guy has no chance of advancing to the position of Managing Director. He can't improve, so he's completely suppressed!

Seeing Yamashita Matsumoto's grim expression, Zhang Changbang finally revealed his true intentions: "Life is like a dream, and time is running out. Are you willing to watch your talent be wasted little by little, Mr. Yamashita?"

"What do you mean!" Yamashita Matsumoto put down his wine glass, his brows furrowed so deeply they could kill someone.

"As you said, Hong Kong sells 60% of videotapes, has lower labor costs, a better tax environment, and is a better location to build factories. Companies can only maintain sales and profits because of their monopoly. The crisis is right there, just waiting for someone to take that step. Instead of waiting, why not go for it? Then you will be the new Kobayashi Yotaro (CEO of Fujifilm). No, no, no, the market there is bigger and the costs are lower. As long as you develop the local market, you can easily surpass Fujifilm!"

"To catch up with Maxell, to catch up with Tokyo Denki Chemical Industry, and become the most ambitious person in the videotape manufacturing industry!"

"Yamashita-kun, what are you waiting for!"

Yamashita Matsumoto's eyes shifted. "Someone sent you to poach me?"

"That's because Yamashita-kun is talented!"

“I could never betray the company. Fuji has a bright future, but there’s nothing in Hong Kong. It’s a company that doesn’t even exist yet. You don’t even dare to mention his name. Haha, no, no, no, you refuse.”

"Mr. Yamashita, there are many people like you in Fuji, Hitachi, JVC, Maxell and Tokyo Denki Kagaku. We are too powerful in this industry and have accumulated too many professionals. Because the market is solidified, they have no way to move up. Change is bound to happen. It just depends on who takes that first step."

You just said I'm talented...

Yamashita Matsumoto slammed his hand on the table, jumped up, opened the door, put on his shoes, and turned to leave.

Zhang Changbang didn't try to stop him. He shook his head, picked up the wine on the table, and sipped it gently. "Why refuse a polite toast only to be forced to drink a penalty shot..."

Slightly drunk, I walked out onto the street. A gust of wind made my head feel even more fuzzy. I looked around and walked toward my car.

Just as I was about to pull open the car door, I suddenly felt a numbness in my waist.

"Fuck-"

Yamashita Matsumoto's mind went blank for a moment, and his body stiffened and twitched slightly.

A person behind gently supported the Matsumoto at the foot of the mountain. A Toyota Hiace happened to drive up, the door opened, and with a pull and a lift, in about 10 seconds, the Hiace sped off.

When I woke up down the mountain, all I could see was a white blur. The lights were a bit too bright. I sat up instinctively and squinted as I looked around. It looked like a hospital room. There was an operating light overhead and some instruments on the side.

What's wrong with you?
Why did we get here?
Am I sick?
Just as I was wondering what was going on, the operating room door was opened and a group of people walked in.

Yamashita rubbed his eyes, his gaze immediately locking onto Zhang Changbang. "You!"

"How is this going!"

"Mr. Yamashita, it's been a long time. Do you still remember me?" The four-eyed man walked over with a smile and extended his hand.

“You…” Yamashita Matsumoto felt a little confused. The person in front of him was speaking Cantonese and looked somewhat familiar, but he couldn’t quite place him.

"This is Mr. Kwan Kai-cheung, a director of Hong Kong Yiu Kwong Audio-Visual Recording Co., Ltd." Zhang Changbang translated with a smile and then reminded him.

Matsumoto Yamashita remembered that 80% of Fuji's blank videotapes were sold to Hong Kong's Yiu Kwong, but he was in the production department and had only seen Yiu Kwong a few times at the annual post-purchase reception.

Looking at Zhang Changbang, he immediately understood who wanted to poach him to work in the factory.

Yaoguang certainly has the capability; its production capacity is so strong that it can handle the output of two Fuji cameras.

But... looking at the four men in black suits standing at the door, it was clear that he had been kidnapped after refusing and that's how he ended up here.

"Mr. Yamashita said before that I didn't dare to say the company's name. Now that you've met him, how about it? Pretty capable, right?"

"This is how you Chinese poach people? You kidnap them when you can't persuade them! It's outrageous! You barbaric and despicable bastards!" Yamashita Matsumoto shouted angrily. Zhang Changbang stared wide-eyed, stunned. The bespectacled man frowned; he understood Japanese.

"Let him come to his senses." The four-eyed guy waved his hand.

The four men in black suits walked up without a word. Yamashita Matsumoto's muddled mind finally cleared up. If they were going to resort to kidnapping, what kind of good people could they be?
"No, no, no, let me go! I'm calling the police! This is illegal detention! I'm going to sue you!" Yamashita struggled frantically, but his hands and feet were quickly held down by two men in black suits.

The man in the black suit was even more excited...

A man in a black suit pulled over a surgical stand, picked up a steel needle, waved it in front of Shan Xia's eyes, and grabbed Shan Xia's left little finger.

Yamashita Matsumoto couldn't help but look over. The steel needle was slowly approaching his finger, and before it even went in, his scream had already become shrill.

The steel needle pierced his fingernail firmly and slowly. The pain, so intense that it made Yamashita Matsumoto convulse, was excruciating. Witnessing himself being tortured only amplified his fear and pain. He was sweating profusely and screamed so hard that he suddenly collapsed.

Zhang Changbang, standing next to him, turned his head away, too afraid to look. The screams were too piercing. Even without seeing the scene, they were imprinted in his mind. He felt a series of stinging pains in his fingers, dizziness, weakness in his legs, and even difficulty controlling his urination.

He took a bottle of ice water and poured it on the person's face down the mountain to wake them up, then pulled their little finger back and pierced it with the steel needle again.

The little finger has a large surface area. With a steel needle, it would take more than ten attempts to separate the entire fingernail. However, Yamashita Matsumoto's willpower was too weak. He wet his pants and foamed at the mouth after only two attempts, making Four-Eyes afraid that he would die suddenly.

This guy is quite important.

There are several companies that produce blank videotapes, each with its own technological strengths.
TDK Tokyo Electric Chemical Industry's SA-90 features high signal density, strong anti-interference capabilities, and low noise. It accounts for 30% of global production and is priced at $1.8-2.2.

Maxel's XL-II 120 features a metallic coating, offering high quality and a long lifespan. Its double-sided coating allows for 120 minutes of recording time, making it suitable for professional and/or high-end home use. Priced at $2.5-$3.0.

JVCE metal evaporation tape, 400-line resolution, the most professional, priced at $3.5-$4.0.

Hitachi ceramic-reinforced tape base, the most durable, can be repeatedly erased and rewritten 500 times, mostly used for surveillance, $1.8-$2.0.

Fujifilm, on the other hand, is for mass consumption and is the cheapest, priced at $1.5-$1.8.

What Wang Yaotang values ​​most is the low price; it's perfect for his hometown and the Southeast Asian market!
Seeing that the guy couldn't hold on any longer, the four-eyed guy waved his hand, walked over, and looked down at Matsumoto at the foot of the mountain. "Are you awake now?"

At this moment, Yamashita's mind was numb. When he saw the four-eyed guy, he immediately shrank back and subconsciously kept nodding "Hai" "Hai". Zhang Changbang could only say that these Japanese guys were too damn despicable.

After giving the guy some painkillers and a pick-me-up, Zhang Changbang began to introduce him, "Do you know Mr. Wang Yaotang?"

Yamashita Matsumoto shook his head.

"Mr. Wang Yaotang started from the streets and amassed a fortune of tens of billions in just eight years. I'm talking about Hong Kong dollars. His Sheng Yi Society has over ten thousand members, 100% monopolizes Hong Kong's power industry, and also operates mines, docks, shipping, entertainment, and so on. I won't go into details about those. The key point is his Umbrella Security and Defense Company..."

"Are there any local warlords?"

"Do you have a private fleet?!"

"He can control everything with one hand!"

“If Mr. Wang wants to set up a factory in Hong Kong, there will be no obstacles at all. He can purchase equipment that others cannot, and he can also purchase equipment that others cannot purchase. It’s a special privilege granted by the Chinese!”

"Do you know how many people want to work for Wang Sheng? What does it feel like to be second only to one person and above ten thousand others?"

"You may be so-so in Southeast Asian countries if you use Fuji's name, but if you go out with Wang Sheng's name, even your enemies and competitors will treat you with respect."

“Don’t be fooled by this document. Wang Sheng doesn’t even need to say a word. His men will contact the local companies, and someone will immediately provide a professional place to do the work.” Zhang Changbang pointed around. “Believe it or not, even if you go to the police, they won’t take this case.”

"Even if the evidence is conclusive, what can you do? Can you go to Hong Kong to arrest people?"

"Two years ago, when BHP Billiton was transporting coal to Sumitomo Metal, their cargo ship was intercepted by Wang Sheng's fleet in the Pacific Ocean. They didn't utter a sound. Isn't that enough of a show of force?"

"As long as you do your job well, even if you commit a crime outside, Wang Sheng can keep you safe and sound. Do you know how great a privilege that is?"

"A meteoric rise to power, isn't it?!"

"Yamashita-kun, what are you waiting for? Time waits for no one, rise up!"

Yamashita Matsumoto's face flushed red, his whole body trembled, and he then forcefully clenched his fist, shouting, "Go for it!"

This shout startled the four-eyed guy. What the hell is wrong with these Japanese devils?
Judging from the way things are going, they've been persuaded.

What were you doing with him all this time?
You only feel comfortable after being tortured, right?

The Japanese devils are all perverts.

His mindset changed, he surrendered. Yamashita Matsumoto's attitude made a complete 180-degree turn. Ignoring the fact that his pants were still wet, he got off the bed and bowed 90 degrees to the four-eyed guy.

"We still need to rely on them," the bespectacled guy said with a smile, patting him on the shoulder. "Let's have a drink together."

"Hi!" Yamashita Matsumoto bowed again at a fawning 90-degree angle.

As the deputy director of the production department, this guy has an excellent understanding of the entire production process. He is proficient in all aspects, from the selection of key equipment, technical characteristics and routes, process difficulties, and quality management.

After all, videotapes have been commercialized for less than 10 years, and he has all the experience to build from scratch.

I worked at Fujifilm for 20 years. My colleagues, old friends, and subordinates are all over Fujifilm. Many of them are quite capable but frustrated. Wang Yaotang offers relatively high prices. He can bring in a complete team of purchasing, R&D, production, and testing to make the frame. He can recruit some local people to cooperate and set up the factory immediately.

All that's left is to get used to each other.

At least the four-eyed guy is very satisfied now. As for the future... we'll talk about it when our own people can take over. If it works well, we'll continue using it; if it doesn't, we'll shut it down.

There's no need to talk about chivalry with the Japanese.

Poaching people isn't something that can be done in a day or two. First, we need to get a list. On one hand, Yamashita Matsumoto will sound him out, and on the other hand, Zhang Changbang will try to persuade them. If we still can't get it done, Four-Eyes will ask Yamaguchi and his gang to use some methods.

It's incredibly easy to drag someone into the water.

While Four-Eyes was busy finding manpower, Wang Yaotang was not idle either; he never thought of putting the factory in Hong Kong.

Land rent is too high, labor costs are too high. Since we're aiming to reduce costs, why not just go directly to Shenzhen?

I originally thought that videotape technology had only been developing for 10 years and there were no videotape manufacturing plants in my hometown. But when I asked around in Guangzhou, I realized that the Chinese are indeed the Chinese!

Recently, Pengcheng Universe Audio-Visual Company, established in 84, produces 800 million audio tapes annually, 80% of which are exported to Hong Kong. It is currently in talks with Toshiba to import a batch of equipment and technology to produce video tapes.

Further back, there's the Hangzhou Magnetic Tape Factory, a key project during the Seventh Five-Year Plan period. Its initial investment was 2.2 million yuan, covering an area of ​​20 square meters. It's already in production and has produced 20 videotapes to date, but the quality is somewhat worrying. They are currently in talks with TDK Tokyo Electric Chemical Industry Co., Ltd. about technology transfer and preparing to build a complete videotape production line.

Further north was the Dalian Magnetic Tape Factory, which imported high-speed slitting machines from TDK in Japan. It won the National Silver Medal in 87 and mainly supplied magnetic tapes for broadcasting and television. However, the quality of these tapes was also somewhat inferior.

Wang Yaotang took a liking to it immediately, but after checking it out, his heart sank.

Universe Audio-Visual is a joint venture. The Chinese side is Pengcheng City Cultural Enterprise Development Co., Ltd., a wholly-owned subsidiary of Shenzhen Investment Holdings, and the Hong Kong side is Hong Kong Da Wen Media Group, a subsidiary of Hong Kong Da Wen.

One word: Very hard!
Four words: Tall and tough!

Therefore, Wang Yaotang had no choice but to abandon the Xie family's approach and start from scratch on his own.

Of course, it's not all bad. The advantage of joint ventures is that they can benefit from policy dividends, but they also suffer from negative drawbacks such as bloated staff, chaotic management, and insufficient investment in research and development.

Yi Chu's career declined after 95...

Cosmic Audio-Visual was even shut down in 90...

There are pros and cons... (End of Chapter)