A century-old wealthy family that rose from Shanghai

Chapter 444 The Instant Noodle Dispute

In March 1962, inside a high-class restaurant in Ginza, Tokyo, with the paper doors closed, more than a dozen Japanese business elites dressed in suits sat around a long table.

The air was filled with the rich aroma of sake and the fresh scent of sashimi, yet no one touched their chopsticks. All eyes were fixed on the elderly man with gray hair at the head of the table.

"Gentlemen," said Hisao Tanaka, president of the Japan Food Industry Association, setting down his teacup, his voice deep and resolute, "for the past five years, we have paid that Hong Konger a total of over two million US dollars in patent fees. He has eroded nearly 40% of our market share with his low-price strategy. Today, we must make a decision."

Sitting on the right, Kenji Matsumoto, president of Sanyo Foods, slammed his fist on the table, making the dishes rattle softly. "This can't go on! Master Kong's instant noodles are 5 yen cheaper per pack than ours; they're dumping! More importantly, that Chinese-Japanese man, Momofuku Ando, ​​actually switched sides and sold his own Nissin brand instant noodles to Master Kong. He's a fake Japanese; deep down, he wants to be Chinese."

“The problem is their patent barriers,” Yamamoto, managing director of Daiwa Foods, adjusted his glasses. “As long as we continue to produce instant noodles, we can’t circumvent their process patents.”

In the corner, a younger man coughed lightly: "I heard that we've found a way to modify the dough-making process to circumvent some of Master Kong's patents."

A glint flashed in Tanaka Hisao's eyes: "Hosokawa-kun, continue."

The man, referred to as Hosokawa, leaned forward slightly: "The key lies in temperature control during the dehydration process. Master Kong's patent clearly specifies a range of 85-90 degrees Celsius, but our experiments show that 92 degrees is equally feasible and does not affect the taste."

A murmur of discussion immediately filled the meeting room.

Tanaka Hisao raised his hand to signal for quiet: "Has the patent attorney conducted an evaluation?"

“Hi,” Hosokawa nodded, “the Iwata Law Firm believes there’s a 70% chance of not being found guilty of infringement.”

Kenichi Matsumoto stood up excitedly: "Then what are we waiting for? Let's do it right now—"

“Calm down, Matsumoto,” Tanaka Hisao interrupted him. “Technology circumvention is only one aspect. We need a comprehensive strategy.” He looked around at everyone. “I propose forming a ‘Washoku Alliance’ to attack from three fronts: First, jointly pressure the Ministry of International Trade and Industry to re-examine the food processing patent policy; second, jointly develop new processes to circumvent patents; and third, establish a price cartel to fight a market war with Master Kong.”

"How should the funds be allocated?" someone asked.

"We'll invest according to our market share, with an initial budget of 500 million yen," Tanaka Hisao answered crisply. "Those who agree, please raise your hands."

Twelve hands were raised in unison, casting firm shadows in the dim light.

On the eve of the Spring Festival, Chen Guangliang arrived in Japan.

After three years of shipbuilding, Global Group now boasts a total deadweight tonnage of 300 million tons, with 12 10.3-ton oil tankers and 4 5.6-ton oil tankers forming its core fleet. Oil tankers account for two-thirds of the total tonnage, while cargo ships account for one-third (100 million tons).

Of course, the Global Group still has about 100 million tons of second-hand ships in its fleet.

Although Chen Guangliang described the period from 1959 to 1961 as a period of "massive shipbuilding," he actually decided to continue large-scale shipbuilding in 1962.

There are two reasons: First, global shipping began to recover at the end of 1961; second, global shipping needed to reach a total tonnage of 500 million tons by the time the Suez Canal closed in 1967, and new ships needed to account for about 80% of that.

Based on this, Chen Guangliang came to Japan, naturally intending to continue shipbuilding.

"Mr. Chen, welcome to Japan. I am Yukito Higaki, the president of the Japan Shipbuilders Association. It is an honor to be your guide this time!" A government official came directly to the airport to greet him.

He knew that the Hong Kong businessman before him was someone the Japanese both admired and envied. They admired Chen Guangliang for his global business standing and his significant influence on the Japanese shipbuilding industry; they envied him for leading Hong Kong's industry in fierce competition with Japan, holding its own in many sectors, and possessing industries that had achieved monopolies in Japan—such as zippers and instant noodles.

"Thank you very much. I am also honored that Chairman Higaki came to pick me up at the airport in person. You are too kind!" Chen Guangliang said kindly.

He builds ships in Japan, which is a high-end business, as his small businesses in Japan don't make much money. However, he builds ships in Japan because the cost is low and the conditions are good, and Japanese shipping companies also lease a large number of his ships.

On the other hand, he also invested in securities and real estate in Japan, earning a considerable amount of money.

That evening, Yukito Higaki and others gathered the heads of several Japanese shipyards at a hotel in Tokyo to welcome Chen Guangliang.

During the conversation, Yukito Higaki mentioned, "Mr. Chen, I heard you like large oil tankers. We happen to have a 13.2-ton oil tanker launched this year. I wonder if you would be interested?"

Chen Guangliang said with a smile, "Of course!"

Of course, the bigger the tanker, the better, since the Suez Canal was closed in 1967 and would remain closed until 1974, almost eight years.

During this period, large oil tankers and cargo ships are the ones that truly make money; while small oil tankers and cargo ships not only carry less cargo, but also face difficult conditions when passing the Cape of Good Hope, as they cannot pass through due to strong winds and waves.

Higaki Yukito quickly pulled Kishida Kito, the head of the Osaka Shipyard, to his side and introduced him, "Kishida Kito, the head of the Osaka Shipyard, this shipyard happens to have a vacancy in its dry dock, which can build a 13-ton oil tanker for Mr. Chen!"

Japan's shipbuilding industry is highly developed, and shipbuilding requires docks, so sometimes the government needs to make arrangements.

Kishida Kito quickly asked, "Mr. Chen, how many ships do you need?"

Chen Guangliang said with a smile, "I like to do big business, so I want four!"

Upon hearing this, the heads of two more shipyards swarmed around, vying for the order.

Higaki Yukito quickly made arrangements: "Then let's wait until Mr. Chen has finished his inspection before deciding which shipyard to build the order at, shall we?"

"Of course, that's exactly what I was thinking!"

After a while, everyone calmed down.

Many shipping tycoons from Japan also attended the banquet. There is both cooperation and competition between Global Shipping and the Japanese shipping industry.

The cooperation stems from the fact that Japanese shipping companies prefer to lease ships from him, which saves them costs.

The competition naturally stems from the rise of Hong Kong shipping and the size of the global shipping fleet, leading to direct competition.

During the conversation, Yasuzo Ichii, the head of Mitsui Shipbuilding, said, "Mr. Chen, our Japanese shipping company leases many ships from your company, and you build these ships in Japan at low prices. Wouldn't you say that this cycle makes Japan an important part of your shipping empire?"

Chen Guangliang knew Ichii Yasuzo; he was one of the key agents of the Mitsui zaibatsu and was very adept at competing in the shipping industry. Therefore, he was actually there to 'stir things up,' because they were competitors.

"Haha," Chen Guangliang laughed, then said, "It's undeniable that our relationship with the Japanese shipbuilding and shipping industries is both cooperative and competitive. Japanese seamen earn significantly more than Hong Kong seamen, and given that Japan has many war victims around the world, Hong Kong ships are very popular in Japan. Therefore, we mutually need and benefit each other!"

Upon hearing this, Ichii Yasuzo could only say admiringly, "Mr. Chen's words hit the nail on the head."

Worldwide Shipping's two largest customers in Japan are Nippon Shipping and Yamaguchi Kisen Kaisha, while Mitsui Marine, where Ichii Yasuzo is based, now has a gross tonnage of around 100 million tons and is one of Japan's three major shipping giants.

Of course, Mitsui Shipbuilding also leases some ships from Global Shipping and Hong Kong, but the proportion is not large. At the banquet, Chen Guangliang not only dealt with the Japanese shipbuilding industry but also with Japanese shipping companies. Currently, revenue from Japan accounts for 35% of Global Shipping's total revenue, which is still a considerable share.

Of course, unlike Bao Yugang in his previous life, Global Shipping has a greater influence in Europe and America, and currently Europe and America account for 50% of its revenue, something Bao Yugang couldn't achieve in the 1970s.

Soon, the news that Chen Guangliang was building four 130,000-ton oil tankers in Japan was widely reported by Japanese media and became a major focus.

Some people say Chen Guangliang is crazy, after all, Japanese and European and American shipping companies build ships one by one, while Chen Guangliang has always built large ships four at a time.

Ignoring these opinions, Chen Guangliang quickly arrived at the Master Kong Building in Ginza.

In recent years, Master Kong has continued to occupy a large market share in Japan by relying on its low-price strategy; at the same time, Nissin instant noodles, which it acquired, is positioned as a mid-to-high-end brand in the domestic market, mainly to earn profits.

With a two-pronged approach, they crushed Japanese instant noodle brands, leaving them utterly defeated.

meeting room.

Vitasoy President Chen Zhixing, Master Kong President Ma Jiabo, Vice President Ando Momofuku, and others gathered together.

"I was just passing by, but I heard you've run into some trouble in the Japanese market?"

Marcel handed the initiative over to Momofuku Ando.

Subsequently, Momofuku Ando reported: "Mr. Chen, twelve Japanese food manufacturers have jointly formed the 'Washoku Alliance,' preparing to launch a full-scale counterattack against us. Meanwhile..."

Chen Guangliang sighed, "They're going to use a three-pronged approach—government lobbying, patent circumvention, and price wars."

Momofuku Ando stroked his chin thoughtfully: "Mr. Chen, I've been in the Japanese food industry for many years, and I've never seen a joint operation of this scale before. They're truly driven to desperation."

Chen Guangliang walked to the sand table in the corner of the conference room. It was a three-dimensional distribution map of the Japanese instant noodle market, with Master Kong's red logo occupying nearly 40% of the area.

He picked up a pointer and tapped it lightly on his palm: "Mr. Ando, ​​based on your understanding of Japanese manufacturers, in which direction are they most likely to make a breakthrough?"

Ando walked to the model and pointed to the Tokyo and Osaka areas: "The manufacturers in these two areas have the strongest technological capabilities and are likely to be the first to attempt patent circumvention. Especially Sanyo Foods; their R&D director, Shoji Watanabe, is a classmate of mine from Waseda University, and he has made significant achievements in the field of food chemistry."

Margaret added, "Our market monitoring shows that Sanyo and Daiwa's R&D spending has increased by 37% in the past three months, which is quite unusual."

Chen Guangliang nodded, then took a few steps and looked out the window at the bustling scene of Ginza.

With just this simple gesture, he quickly turned back and said, "Political lobbying and patent circumvention are actually one and the same. From the beginning, the patent fees we collect have taken the government into account, meaning they are within an acceptable range for everyone. I believe the Japanese government will not easily open this door. Of course, we can't do nothing either. We just need to make it clear to the world that instant noodles were developed by us Hong Kong people. This is an undeniable fact, and it is an invention that has changed human life."

Momofuku Ando immediately said, "Yes! The Japanese food alliance is attempting to circumvent the patent through minor loopholes, but in reality, it only reduces the influence of Master Kong's patent ownership, which has little practical significance. The key is public opinion, and it's still a battle for market share!"

Everyone agreed with this viewpoint.

"President Ma," Chen Guangliang began deploying, "immediately launch the 'Moat Plan,' reducing the price of instant noodles in all of our Master Kong retail channels by 10%, while simultaneously increasing promotional efforts. We'll preemptively strike before the other side can officially take action."

Marco Polo hesitated for a moment: "Mr. Chen, this will significantly compress our profit margin. Last year, our net profit margin had already dropped to 15%."

Chen Guangliang's eyes sharpened: "Short-term profits are not the focus. We need to make Japanese manufacturers understand that any price war will come at a heavy price. Furthermore..."

He paused for a moment, then said, "Notify the legal department to prepare to file lawsuits against any manufacturer suspected of infringement, regardless of their size."

“The lawsuit could provoke backlash from the Japanese public,” Ando cautioned. “The Japanese are now very sensitive to ‘foreign capital monopolies.’”

Chen Guangliang's lips curled up slightly: "So we won't sue the big manufacturers. We'll start by targeting two small local companies as a warning to others. At the same time, we'll have the public relations department prepare promotional materials for 'Technology Sharing Promotes Industry Development,' emphasizing the jobs and innovations we bring to the Japanese food industry."

The phone rang suddenly, and the meeting assistant quickly picked it up.

"Our lawyer called from Tokyo, saying there's an emergency," the secretary's voice came through the receiver.

"speak"

The secretary's voice was visibly tense. "We just received information from our informant at the Ministry of International Trade and Industry that the Japanese Food Alliance has successfully lobbied some members of parliament and is preparing to introduce a special bill on food processing patents next month, which may force us to cancel patent licensing fees."

"Specific content?"

"The draft stipulates that patents involving 'basic national food' should be fully opened to the market if the licensing fee reaches a certain amount. According to this standard, our current fees are already more than double."

Damn it, even American transistor patents are being hacked in this way.

Now, I never expected that even the patents for instant noodles would be attacked in this way.

"Absurd!" Chen Guangliang raised his voice. "What kind of 'basic national food' is instant noodles? The Japanese have lived perfectly well for hundreds of years without eating instant noodles!"

"The problem is that their propaganda has already placed instant noodles on par with rice and noodles, using the banner of 'defending Japanese food culture'," Momofuku Ando lamented. "Public opinion is very unfavorable to us."

Chen Guangliang calmly sat down, and after a while he said, "Alright, since we are already at a disadvantage in terms of government and patents, then next, we will regain our victory in the business world."

They've already collected $200 million in patent fees for instant noodles; they can't keep spending all that money on it.

Marco Polo immediately said, "Boss, our third flavor—seafood ramen—is almost ready to be developed; in addition, our cup-packaged instant noodles are also nearly finished!"

Upon hearing this, everyone became excited.

Momofuku Ando had completely switched sides by this time, and he suggested: "Seafood ramen will definitely be very popular in Japan, so we can launch it as soon as possible; as for cup noodles, I suggest using them as a magic weapon for entering the US market, and of course, they can also be launched in Japan at the same time."

Chen Guangliang said with satisfaction, "Good, this layout is perfect!"

Master Kong has once again launched a price war, while Nissin has launched seafood ramen and cup noodles.

A two-pronged approach: one to win the market, and the other to win profits.

If this battle is won, Master Kong (Nissin) will be able to continue to occupy 40% of the Japanese instant noodle market, a position that Japanese brands will be unable to challenge for a long time.

(End of this chapter)