A century-old wealthy family that rose from Shanghai

Upon returning to Hong Kong, Chan Kwong-leung immediately threw himself into his work. Although he always prioritizes the big picture over the small details, it doesn't mean he actually neglects the small things.

The so-called "delegation" does not mean abandoning small businesses, but rather entrusting the details to subordinates.

On this day, Chan Kwong-leung visited Mong Kok to inspect the Wellcome Supermarket store, a joint venture between Lane Crawford and Global Trade, a collaboration between subsidiaries of the two major groups.

Lane Crawford and Worldwide Trading both have extensive experience in supply chain management, making their collaboration a perfect match.

In just over a year, Wellcome Supermarket has opened three supermarkets, all of which are considered large-scale retail stores in Hong Kong.

Stepping into the Wellcome store in Mong Kok, one is immediately struck by its large number of customers, a testament to its success. The overall layout is remarkably similar to modern supermarkets, from the shelves and trolleys to the arrangement and variety of goods – all at the level of a modern supermarket.

Wellcome supermarkets are more advanced than those in the United States.

"Boss, this store mainly serves residents in the community. We focus on fresh produce, rice, oil, milk, and other essential goods, which is why the store is doing very well, with daily sales reaching [amount missing]."

Wang Shouyuan, the general manager of Huikang Supermarket, accompanied the inspection.

He was originally a senior executive at a chain retail store under Global Trade, and was personally appointed by Chen Guangliang to serve as the general manager of Wellcome Supermarket.

On the other side of Chen Guangliang was Bruce, a British manager. He was a member of the Lane Crawford management team and was also appointed as the deputy general manager of Wellcome Supermarket, responsible for the supply chain.

Lane Crawford has an advantage in Western sourcing and trade, while Worldwide Trading has an advantage in Asian sourcing and trade.

A powerful alliance.

"Yes, supermarkets are an emerging industry, but they will definitely be the biggest model in the future retail industry. However, at this time, both the UK and the US are still in their infancy. Whether Wellcome can take the lead depends on whether your management can build an excellent team."

In terms of the model, Chen Guangliang has already presented the final version; the rest is up to his subordinates.

"Yes, we are constantly improving our work and trying our best to do our best."

Chen Guangliang countered with, "Then what aspects do you think are necessary to run a successful Huikang Supermarket?"

Wang Shouyuan immediately said, "Supply chain and service. In terms of supply chain, the main focus is on achieving product diversification and controlling product quality and costs. Regarding service, we need to be focused and ensure customer satisfaction."

"Since you're so confident, why don't you open a supermarket in Singapore?"

"Yes"

If Wellcome Supermarket is done well, Hutchison Whampoa will not be so important in the future.

After all, Hutchison Whampoa's advantages in its past were ports and retail. Now, with the Global Group actively promoting its container terminal business in Hong Kong, it will definitely be the first to enter the market. As for the retail sector, Hutchison Whampoa currently has nothing besides Watsons.

Of course, it may not be important, but if we can acquire it, we must strive for it in the future.

Time came to 1958.

In the past year (1957), Hong Kong's exports of "Hong Kong products" surpassed "entrepot trade," becoming big news.

This marks Hong Kong's transformation from a region primarily engaged in entrepot trade to one primarily focused on industrial production, which is something to be very happy about.

This happened about three years earlier than in my previous life.

Undoubtedly, Cheung Kong Industrial Group is the most crucial representative of this group. Another reason is that there are more Shanghai factory owners who have come to Hong Kong in this life (nepotism effect).

Cheung Kong Industrial Group has once again set a record, earning a profit of HK$5000 million, with HK$1500 million coming from plastic flowers alone.

During this phase, industry was more profitable than real estate, and by a significant margin.

In my past life, during the 1950s and 60s, running a factory was just as lucrative as running a real estate business. It's just that many large factory owners didn't adapt quickly enough to enter the real estate industry. But once they did enter the real estate sector, they undoubtedly became major real estate developers, like Chen Tinghua's Nan Fung Group and Li Ka-shing's Cheung Kong Group, both of whom transitioned from factory owners to real estate developers.

After New Year’s Day.

At the meeting held at Huatai Plastics Factory, Chen Guangliang presided over the meeting.

General Manager Su Dongsheng reported: "In the past year, the total export value of plastic flowers was around HK$1.5 million, accounting for an estimated 95% of the global market share. Our Huatai Plastic Flowers accounted for 35% of the Hong Kong market share, with total exports exceeding HK$5000 million and a profit margin of 30%."

Profits far exceeded those of textiles and garments; initially, plastic flowers even yielded profits as high as 60%.

However, with the increasing number of plastic flower factories in Hong Kong, profit margins have naturally continued to decline.

Chen Guangliang then said, "On the surface, these data all indicate that plastic flowers are booming, but we also need to understand the hidden dangers involved."

Mai Kao-hsiung, the person in charge of the plastic flowers, immediately said: "Yes, there are more and more factories, and everyone is willing to compete with low prices, so profit margins will continue to decline. However, in terms of exports, I personally believe that there is still a lot of room for growth in the future."

Chen Guangliang was quite satisfied with the independent thinking abilities of his subordinates, which fully demonstrates that his delegation of authority was conducive to their growth.

Of course, he has been paying attention, just like with this meeting.

Chen Guangliang said, "We won't discuss things that can't be changed. However, I think there's still some room for improvement. Take profit margins, for example; I think we should make some strategic moves."

Upon hearing this, everyone fell into thought.

Later, General Manager Su Dongsheng said, "Since the export of plastic flowers continues to increase, the plastic flower industry may not be sustainable. Therefore, my suggestion is to let residents of public housing complete some of the processes, and we will pay them on a piece-rate basis. The advantages of doing this are: First, we have a better advantage in terms of workers, and our costs are higher than other factories, but plastic flower making is a low-barrier-to-entry industry; second, we do not need to recruit more people, which greatly saves on labor costs; third, it allows more families to benefit, and it is a win-win situation for everyone, with those who are capable doing more work."

Chen Guangliang immediately said, "This model is excellent! It should be implemented as soon as possible. Furthermore, the production of Barbie dolls can also draw upon this model."

Everyone echoed this sentiment, thus achieving the desired effect.

In fact, this is based on the same principle as the 'temporary workers' of later generations, which is to reduce labor costs.

Next, Chen Guangliang said, "Currently, toys around the world are gradually shifting towards plastic materials. I hope Huatai Toy Factory will also develop more new products. Rubik's Cubes are one example, but we should also explore building block toys. These building block toys are similar to the ancient Chinese craftsman Lu Ban, using interlocking mechanisms. Let's immediately establish such a project to specifically research and produce them."

Only by continuously developing new products can we achieve development.

Although LEGO holds some patents, it is not enough to dominate the industry, especially since Hong Kong itself is a region known for its counterfeit factories.

In addition, Cheung Kong Industrial Group also holds many patents, including those for plastic flowers, rolling suitcases, instant noodles, etc., but it is still very difficult to protect its rights in some overseas places.

"Ok"

Everyone was highly motivated, after all, the company was constantly coming up with new ideas, and everyone was eager to work under such a boss. (Osaka, Japan)

At Daimaru Department Store, Ma Jiabo, the general manager of Master Kong instant noodles, personally led Chinese and Japanese employees to set up a sales cart.

After New Year's Day, Master Kong instant noodles entered the Japanese market, aiming to conquer it as quickly as possible. At that time, although Master Kong instant noodles had patent rights, once this product became a popular food in Japan and even Asia, it would inevitably be unable to maintain its position.

It's very simple. The competitor can retaliate with a 'monopoly'. At that time, unless Master Kong doesn't enter the local market, it won't be able to win the battle.

Just like when Momofuku Ando invented instant noodles in his previous life, dozens of instant noodle manufacturers in Japan launched a joint counterattack, forcing Momofuku Ando to disclose his patent rights.

Chen Guangliang naturally also considered that instead of stubbornly clinging to patent rights, it would be better to suppress other products in the market.

A chicken noodle soup took decades to develop a new flavor; a cup noodle only appeared ten years later. Therefore, whether in terms of innovation or strength, Master Kong has the potential to become a global instant noodle company.

"Sir, would you like to try our new product? It's a convenient and quick food," the Japanese employee enthusiastically introduced.

A Japanese man looked curiously at the noodles cooking in the pot and laughed, "Isn't this just noodles? Why do you call it a new product? Haha!"

The Japanese employee immediately pointed to the opened and unopened instant noodles next to him and said, "These are instant noodles. They can be cooked in boiling water in three minutes, and they taste like chicken broth, so you can eat them right away."

As soon as he said this, people gathered around, and then the staff began to give each person a sample to try.

"tasty"

"Yosh, this is so delicious!"

Asians generally have similar tastes, so promoting instant noodles is easy.

Seeing the customers' satisfaction and praise, Margaret also breathed a sigh of relief. This time, the instant noodles entered the Japanese market and persuaded several department stores to allow them to enter and promote their products.

Once it's accepted by the Japanese, retailers will place orders like crazy.

Of course, Margaret's trip to Japan was also to build a factory locally, albeit a small-scale one, by renting factory space.

Currently, production costs are lower in Hong Kong.

A few days later, instant noodles became a hit after being heavily promoted by the Japanese media.

Orders poured into Master Kong instant noodles like snowflakes, much to the surprise of many managers and employees; things went so smoothly.

at the same time.

In a house in Ikeda City, Osaka Prefecture, Momofuku Ando saw that instant noodles had already been invented and patented, and he immediately stood up.

He also came up with this idea last year.

At that time, his credit union went bankrupt, and Ando, ​​the chairman who bore unlimited liability, was forced to sell his business to pay off his debts, leaving him with only his own home in Ikeda City, Osaka Prefecture.

He is preparing to conduct research, while sales in Hong Kong have already begun three months ago.

"Since someone else has already beaten me to it, I'll create the first instant noodle brand in Japan. As for patents, I don't believe they can stump everyone."

Momofuku Ando, ​​realizing this, immediately decided to imitate Master Kong instant noodles, even if it meant infringing on patents.

After all, he is now bankrupt and has to try everything.

While the Japanese were trying to circumvent patents and produce instant noodles themselves, Midea Electric Appliances, a subsidiary of Cheung Kong Industrial Group, had already begun assembling radios and selling them in Hong Kong under the "Midea" brand.

Of course, the components of Midea's radios are mainly sourced from Japan, and the technology involved is not high.

Moreover, Midea radios are mainly sold in Hong Kong and exported to Southeast Asia, with only a little over 1000 units produced each month. The production workshop is only a little over 1000 square feet, and each worker can assemble a few dozen units a day, making it a very small operation.

But this was a good start, and Hong Kong's electronics industry was born as a result.

Chen Guangliang also understood that even in the 'basic electronics industry,' Hong Kong's total electronics exports amounted to HK$27.57 billion in 1975; more than doubled to HK$64.64 billion in 1978; and by 1981, it had increased by about double again compared to 1978.

In this way, as long as he follows the historical trend and accumulates technology, Hong Kong can also become a high-tech industrial region in the future.

"Boss, Sony Japan said that if we give up producing Midea brand radios, they are willing to have us manufacture Sony radios for them, at least 4000 units per month."

When Chen Guangliang visited Midea Electric Appliances, the person in charge reported some surprising news.

Chen Guangliang immediately replied, "It's impossible to give up Midea brand radios. Does our Yangtze River Industrial Group need a pittance from him?"

The person in charge laughed and said, "I have already refused. After all, Midea radios are the beginning of Hong Kong's electronics industry, how could we cut off our own limbs? Moreover, the reason why Sony wanted to manufacture in Hong Kong was because countries such as Britain and Canada imposed restrictions on Japanese semiconductors, and they wanted to produce in the Commonwealth region to circumvent these restrictions."

Chen Guangliang said with satisfaction, "You were right to refuse. Come on, show me our production workshop."

Yes, please.

Midea doesn't just produce radios; it also produces electric fans, but it's really just starting out.

Seeing the Midea brand electric fan reminded Chen Guangliang of his time in Shanghai, when the Huaxia electric fan brand faced suppression and competition from American brands, yet still maintained the self-respect of a national brand and had a better market share than American brands at the time.

If Chinese people could manage under those circumstances, then conditions are much better now, and he suddenly became confident in Midea's electrical appliances.

"We've successfully opened up the market with these two products. Next, I plan to have you develop and produce telephones. Do you have the confidence?"

"We are confident. Our Yangtze River Industrial Group is not lacking in technology and creativity, and Midea Electric Appliances should be too."

Everyone answered with great confidence.

In fact, Hong Kong telephones should have been introduced in the late 1960s and early 1970s.

After arranging the appliances at Midea, Chen Guangliang left satisfied.

While promoting the establishment of the Hong Kong Polytechnic, he also invested in the technology industry. The technology and experience he accumulated will one day bring him a huge return.

Even if all else fails, there's always the mainland market where they can make a name for themselves. (End of Chapter)