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One month after its launch, the Shenzhen-Hong Kong 1 mobile phone has already received over 200,000 pre-orders.

However, production capacity cannot keep up.

The factory was operating at full capacity, with three shifts running, and the workers were exhausted. Yet, they could only produce 80,000 units a month.

There are still 120,000 units of orders piling up, and the customers are urging us every day.

"President Su, is it really impossible to increase production any further?" Sales manager Li Xiao was so anxious that he had blisters on his lips, feeling as if he had missed out on trillions of dollars. "I get hundreds of calls every day, all urging for delivery. Some distributors have said that if we don't deliver the goods soon, they will go and become agents for other brands."

Suning looked at the production capacity report calmly. "Eighty thousand units is not a small number! One should learn to be content. It seems your AI robots still need some practice."

"But Mr. Su, this is all money being thrown away! We make 1,500 yuan per unit, so 120,000 units would be 180 million yuan! It's all going to waste!"

"We won't lose it. Right now, when we don't have it, they want it even more. Once we have it, they'll be scrambling to buy it."

"but……"

“No buts.” Suning waved his hand. “Proceed according to plan. The second batch will release 50,000 units, and the third batch will release 50,000 units. The remaining orders will be placed next year.”

Li Xiao wanted to say something more, but seeing Su Ning's resolute attitude, he had no choice but to shut up.

Actually, Suning is also anxious, but they appear calm on the surface. After all, we can't let the AI ​​robot look down on us.

In fact, traveling through countless worlds with an AI robot and experiencing different storylines is also a way of training a large model.

Therefore, as you experience more instanced worlds, your AI robot becomes more and more human-like.

Who wouldn't want a profit of just 180 million?

But Suning knew that this matter couldn't be rushed.

The industrial chain of Shenzhen-Hong Kong Electronics is not yet mature.

The chips are produced by a wholly-owned wafer fab, the screens are produced by an LCD screen factory in Guangzhou, the batteries are produced by a new energy factory in Dongguan, but the assembly is done in Shenzhen.

There were problems at every stage – low chip yield, insufficient screen production capacity, unstable battery supply, and low assembly line efficiency.

The entire industry chain is like an old machine that is barely functioning, and it may break down at any time.

Forcibly increasing production will only lead to a decline in quality and a collapse in reputation.

It's really not worth the risk.

……

In the office, Afu made a suggestion.

“Master, we can actually utilize the production capacity of your spatial world. Your spatial world has a complete industrial chain, with technology that is more than 60 years ahead of this era. Producing a simple mobile phone like the Shenzhen-Hong Kong 1 would be a piece of cake.”

Suning shook his head. "It's not the right time yet."

"Why?" Afu asked, puzzled. "With so many orders now, it's a great opportunity to make money. Using the production capacity of the space world, producing a million units a month wouldn't be a problem. The profit would be billions."

“Ah Fu, have you thought about this?” Su Ning said, “If our production capacity suddenly increases dramatically, from 80,000 units a month to one million units, what will people think? How will they explain it?”

"You could say we expanded our production line..."

“Expansion will take time,” Su Ning said. “Moreover, the equipment and technology we use are all ahead of their time. If we suddenly bring them out, it will arouse suspicion. The government will investigate, competitors will investigate, and the media will investigate. How will we explain that? That’s why I dare not use the space funds. After all, the funds in the space world are of unknown origin and will attract investigations from financial institutions.”

Afu fell silent; he had naturally remembered this.

“There’s also the issue of price,” Suning continued. “If our production capacity increases dramatically, we will have to lower prices to clear inventory. But the Shenzhen-Hong Kong 1 is currently priced at 3,999 yuan, which already provides a large profit margin. Lowering the price further would disrupt the market and damage the brand image.”

"So... we're just going to watch orders slip away?"

“It’s not a loss, it’s a delay,” Suning said. “Afu, you have to understand that our biggest problem right now is not production capacity, but the immaturity of the industrial chain. The most urgent task is not to rush to make money, but to improve the industrial chain and enhance the technological level.”

He stood up and walked to the map. "The chip wafer fabs need to expand and improve yield rates. The screen fabs need to upgrade and increase production capacity. The battery fabs need to improve processes and increase stability. The assembly lines need to be optimized and improved in efficiency. All of this takes time and requires investment."

"But Master, perfecting the industrial chain also requires money!" Afu said. "We have money now, why don't we make more first?"

"Making money is necessary, but we can't be greedy," Suning said. "The Shenzhen-Hong Kong 1 is selling well now because we have a slight lead. But this advantage can easily be overtaken. Foreign brands are already developing new products, and domestic manufacturers are also eager to copy them. If we don't seize the time to improve our technology, we will soon fall behind."

"Therefore, my plan is: Shenzhen-Hong Kong 1 will maintain its current production capacity, continue the scarcity marketing strategy, and maintain brand popularity. At the same time, we will focus all our efforts on developing Shenzhen-Hong Kong 2. When Shenzhen-Hong Kong 2 is launched, Shenzhen-Hong Kong 1 will be significantly reduced in price to seize the mid-to-low-end market."

Afu's eyes lit up, "You mean..."

“Yes.” Suning nodded. “The Shenzhen-Hong Kong 2 will be positioned as a high-end product, and the price can be set at 5,999. The Shenzhen-Hong Kong 1 will be reduced to 2,999, or even 1,999, to sweep the low-end market. At that time, we will need a lot of production capacity. But the premise is that the industrial chain must be mature and the cost must be reduced.”

“I understand,” Afu said. “There’s no rush now. We’ll release production capacity once the industrial chain is mature.”

“That’s right,” Su Ning said. “Moreover, we can use the technology from the space world to appropriately improve the performance of Shenzhen-Hong Kong 1—for example, by extending the standby time and improving the signal. But the appearance will remain the same, and the price will be greatly reduced. Consumers will feel that the same thing, which used to sell for four thousand, is now selling for two thousand, and anyone will feel that it’s a great deal!”

"Brilliant!" Afu exclaimed sincerely. "This way, it won't arouse suspicion, and it can seize the market."

“So now, we have to be patient,” Suning said. “It’s painful to see orders slip away. But it’s a necessary sacrifice. We need to take a long-term view and not just focus on the immediate profits.”

"Yes, Master."

"In addition, tell the R&D center to speed up the development of Shenzhen-Hong Kong 2. I want to release Shenzhen-Hong Kong 2 before the end of 1995. Its functions should be much stronger than Shenzhen-Hong Kong 1—the screen should be larger and clearer, the standby time should be longer, and it would be best to add simple game functions."

“It’s already underway. Dr. Wang said that the chip performance of the Shenzhen-Hong Kong 2 has been improved by 50%, the screen has been upgraded to 4 inches and the resolution has doubled. The battery capacity has been increased by 30%, and the standby time can reach six days.”

"Where's the game?"

"We are developing two simple games—Snake and Tetris—that can be installed on mobile phones."

“Okay.” Su Ning nodded in satisfaction. “Tell Dr. Wang that funding is not a problem; he can provide whatever he wants. What I need is the best product.”

"clear."

After Afu left, Su Ning looked out the window and fell into deep thought.

Although I know my decision is right.

But seeing so many orders lost, it's impossible not to feel heartbroken.

Who wouldn't want a profit of 180 million?

But he had to endure it.

Because his goal wasn't to make this quick money.

The goal is to build a true electronic empire, and then turn around and do something else.

The goal is to make Shenzhen-Hong Kong Electronics the Nokia and Apple of China.

This requires time, patience, and strategic resolve.

This current loss is for a greater gain in the future.

……

When Xiao Ran heard the news that Suning refused to increase production capacity, he was also very surprised.

"President Su is willing to give up 180 million to make money?" Xiao Ran said to Liu Yuan. "This kind of courage is something that not everyone can have."

Liu Yuan nodded, "Hmph! If it were me, I would definitely find a way to increase production and make money first."

"So you're the employee, and he's the boss. Mr. Su has a long-term vision. He's not in a hurry to make money now; he's planning for the future."

"But Lao Xiao, how's your soap project going?" Liu Yuan then looked at Xiao Ran with a complicated expression and asked.

"Not bad. Yuxueqing medicated bath soap sold 50,000 yuan worth in the month since it was launched. The response has been very good, and many people who have used it say that it has a good cooling and anti-itch effect. Zhou Zhenxing said that at this rate, 200,000 yuan worth can be sold out by the end of the year."

Congratulations! You've done an excellent job as general manager.

"I have to thank President Su! If it weren't for his investment, I wouldn't have had such a great opportunity."

"That's true. Lao Xiao, how come there's such a big gap between us and President Su? He can invest five million without batting an eye. We're working overtime every day for projects worth a few hundred thousand."

"Stop comparing yourself to others. It's just a waste of time and energy. Let's just focus on doing our own thing."

Despite saying that, Xiao Ran admired Su Ning in his heart.

He has courage, vision, and a broad perspective.

People like that deserve to succeed.

This investment in him, in particular, completely won over Xiao Ran.

He himself also needs to work hard; he can't live in Suning's shadow forever.

One day, Xiao Ran will carve out his own path in the world.

……

At the end of December, Xiao Ran and Zhou Zhenxing came to Su Ning excitedly to report.

"President Su, that batch of soap is completely sold out!" Xiao Ran couldn't hide his excitement. "Two hundred thousand yuan worth, not a single bar left! Sales revenue of one million two hundred thousand yuan, net profit of eight hundred thousand yuan!"

Zhou Zhenxing added, "The Yuxueqing brand has become well-known, and many pharmacies and maternity and baby stores have taken the initiative to contact us to purchase our products, asking us to increase production."

Suning was looking at the mobile phone sales report when he looked up and asked, "How's the market response so far?"

"It's really good!" Xiao Ran said. "We conducted a user survey, and 90% of people said that it really relieved the itching and reduced mosquito bites after using it. Especially those with children at home, they all repurchased it."

“Some mothers also asked if there are any baby-specific bath washes,” Zhou Zhenxing said. “They said that soap is a bit drying for their children and they want a gentler product.”

Su Ning nodded. "What are your next plans?"

“We contacted professors at Guangzhou University of Chinese Medicine to ask for their help in improving the formula,” Xiao Ran said. “The current formula is peppermint and mugwort, which works well, but the taste is still a bit strange. We want the experts to adjust it so that it smells better and the effects last longer.” “In addition, we want to expand our production line,” Zhou Zhenxing said. “The factory equipment is outdated and production can’t keep up. We want to upgrade the equipment and expand capacity. Next year, we plan to produce six million bars of soap and achieve sales of thirty million yuan.”

After listening, Su Ning smiled and said, "You can broaden your thinking a bit more."

The two of them were stunned.

“The market for just soap is too small,” Suning said. “Daily chemical products are a huge category, including soap, toothpaste, shampoo, shower gel, laundry detergent… Each category has a large market. Since you’ve started making herbal soap, why not expand into other products?”

Xiao Ran's eyes lit up. "You mean... make Chinese herbal toothpaste? Chinese herbal shampoo?"

“Yes,” Suning said. “Right now, toothpastes on the market are all mint or fruit flavored, mainly focusing on whitening and cavity prevention. Shampoos are all about dandruff control and smoothing. Are there any with traditional Chinese medicine formulas? For example, Tianqi toothpaste, ginger shampoo? Or soapberry shampoo? These are all untapped markets.”

Zhou Zhenxing slapped his thigh excitedly, "That's right! How come we didn't think of that!"

“Traditional Chinese medicine toothpaste can focus on ‘clearing heat and reducing inflammation, relieving gum bleeding’,” Suning continued. “Traditional Chinese medicine shampoo can focus on ‘preventing hair loss and removing dandruff’. These are all consumer pain points, and the concept of traditional Chinese medicine is very popular now.”

Xiao Ran's mind raced. "But... the production processes for toothpaste and shampoo are different from those for soap. We don't have the technology or the equipment."

“If you don’t have the technology, you can buy it; if you don’t have the equipment, you can import it,” Suning said. “I’ll give you an additional investment of five million. You can go and investigate, learn, and recruit people. If you’re going to do it, do the whole thing—a series of Chinese herbal daily chemical products.”

"Five million?" Both of them were stunned.

“Yes, five million,” Su Ning said. “But this time the equity will be readjusted. I will own 65%, and you two will split the remaining 35%. You can discuss the specifics of the split yourselves. The company will be renamed ‘Yuxueqing Daily Chemical Group,’ with Xiao Ran as Chairman and General Manager, and Zhou Zhenxing as Deputy General Manager and Chief Financial Officer. Any questions?”

"No! We'll come up with a share distribution plan soon," the two said in unison.

"Okay." Su Ning picked up the phone. "President Fu, come in for a moment."

After Afu came in, Suning instructed, "Invest an additional five million yuan in Yuxueqing Company for new product research and development and production expansion. Shengang Electronics will hold a 65% stake. In addition, help them contact domestic and foreign daily chemical equipment suppliers and R&D personnel."

"clear."

“Also,” Suning said to Xiao Ran, “the brand positioning needs to be clear. Yu Xue Qing will not make low-end products, but mid-to-high-end products. The packaging should be exquisite, and the promotion should be effective. We can find celebrities to endorse it, shoot commercials, and appear on TV.”

"But Mr. Su, the prices of mid-to-high-end products are high. Will consumers be able to accept them?" Xiao Ran asked with some concern.

“It’s acceptable,” Suning said. “Now that living standards have improved, people are willing to spend money on health and quality. Traditional Chinese medicine formulas are natural and healthy, and that’s the selling point. It’s perfectly reasonable for the price to be 30% to 50% higher than ordinary products.”

He paused for a moment, then added, "Furthermore, we don't operate through supermarkets; we focus on pharmacies, maternity and baby stores, and boutiques. Consumers in these channels value quality more and don't mind spending a little more money."

"I understand!" Xiao Ran exclaimed, suddenly enlightened.

“In addition,” Suning said, “we can do experiential marketing. Set up experience points at the entrance of pharmacies and offer free trials. Let consumers experience the effects for themselves. If the effects are good, they will naturally buy it.”

“That’s a great idea!” Zhou Zhenxing said. “That’s exactly how we make soap. Almost everyone who tries it buys it.”

“Then it’s settled,” Su Ning said. “Go back and develop a detailed plan. If you need any support, ask Afu.”

"Thank you, Mr. Su!"

The two left the office excitedly.

Su Ning watched their retreating figures and smiled.

The daily chemical industry is also a gold mine.

Foreign brands like Procter & Gamble and Unilever earn tens of billions of yuan a year in China.

If Yu Xueqing can succeed, it will be another money-making machine.

Moreover, this is Xiao Ran's own business.

In the original drama, Xiao Ran started his business in the daily chemical industry.

Now, by making plans in advance, we can help him avoid detours and achieve success faster.

This can be considered... a change of fate.

Although this change was based on him making money for him.

But a win-win situation is always better than a lose-lose situation.

……

Xiao Ran and Zhou Zhenxing returned to Yu Xueqing Company and immediately convened a meeting.

"President Su has invested an additional five million! We're going to grow bigger and stronger!" Xiao Ran announced at the meeting. "The company will be renamed Yuxueqing Daily Chemical Group, and I want to make a series of products—Chinese herbal soap, Chinese herbal toothpaste, Chinese herbal shampoo, and Chinese herbal shower gel!"

The employees were very excited.

"Great! With funding, we can definitely do it!"

"Traditional Chinese medicine toothpaste? That's a great idea! There aren't any on the market right now!"

"The shampoo market is much bigger; if you do it well, you can make much more money than bar soap!"

Next is the specific division of labor.

Xiao Ran is responsible for overall planning and product development.

Zhou Zhenxing was in charge of finance and equipment procurement.

The others split up and went their separate ways...

Some went to Guangzhou University of Chinese Medicine to discuss cooperation, some went to Shanghai to inspect daily chemical equipment, and some went to Beijing to recruit R&D talent.

A month later, progress was rapid.

The professors from Guangzhou University of Chinese Medicine agreed to cooperate and establish a "Chinese Medicine Daily Chemical Research and Development Center," with the university providing the technology, the company providing the funding, and profits being shared.

We've also made contact with equipment suppliers in Shanghai, and they can import the latest toothpaste production line and shampoo filling line from Germany.

Three R&D personnel were poached from Beijing; all of them had previously worked at Procter & Gamble and Unilever and had extensive experience.

Product development is being carried out simultaneously.

This herbal toothpaste features a formula primarily composed of Panax notoginseng and honeysuckle, which helps to clear heat and reduce inflammation, thus alleviating gum problems.

This herbal shampoo features a formula with ginger and Polygonum multiflorum to prevent hair loss and promote hair growth.

This herbal shower gel features a formula with aloe vera and chamomile, making it gentle and moisturizing, suitable for the whole family.

The packaging design was also handled by a professional company, taking a simple and high-end approach to highlight the concept of "natural Chinese medicine".

Advertising planning is also underway.

"Yu Xue Qing, a traditional Chinese medicine formula, is natural and healthy."

"Say goodbye to chemical additives and return to nature."

"A healthy choice for the whole family."

The advertising slogan is ready, and celebrity endorsement is being negotiated—a popular actress with a healthy and approachable image has been found.

They are still artists under Starlight Entertainment, so this can be considered a perfect closed loop.

Everything is going according to plan.

Xiao Ran is extremely busy every day, but she is full of energy.

This is his own business.

Although Suning is the major shareholder, he is the actual operator.

As the company grows bigger, he gains prestige and makes money.

More importantly, he proved himself, showing he was no less capable than anyone else.

……

Before the Spring Festival in 1995, samples of Yuxueqing's new products were produced.

The toothpaste is light green and has a faint herbal scent, but it's not unpleasant.

The shampoo is a clear liquid with a fresh ginger scent.

The shower gel is milky white and has a refreshing aloe vera scent.

Xiao Ran took it home for Han Ling to try.

"This toothpaste is good; it leaves my teeth feeling very clean after brushing," Han Ling said. "The shampoo is also good; it leaves my hair smooth and not dry after washing."

"Really?" Xiao Ran was overjoyed. "That means our product is a success!"

"Hmm!" Han Ling nodded. "Xiao Ran, you're really amazing. Just a few months ago you were selling pagers, and now you're the chairman of the board."

"It was all thanks to President Su that I had the opportunity," Xiao Ran said. "But I did work hard."

"I know." Han Ling hugged him. "Xiao Ran, I believe you can succeed."

"Well, definitely."

The two looked at each other and smiled.

We are full of confidence in the future because Shenzhen is a city full of opportunities.

...(End of chapter)