A century-old wealthy family that rose from Shanghai

It's another new year (1963)

On New Year's Day, the Chen family, including Chen Guangcong's family, gathered at Villa No. 79 Deep Water Bay.

The large family members have led to a significant increase in security in the area, with hidden sentries deployed along Deep Water Bay Road.

Of course, as the second generation of family members grew up, the security forces around Chen Guangliang actually weakened.

First, the second generation has reached a point where they can take over at any time, so he no longer needs to worry about something happening to him and the family business he has built being destroyed.
Secondly, given Chen Guangliang's current prestige in Hong Kong, no local would dare to mess with him. He is a "god of wealth" who employs tens of thousands of people in Hong Kong and involves as many as one or two hundred thousand related personnel.

Third, at this time, there were no large gangs, only local gangs. With a single word from Chan Kwong-leung, these people could be left dead in the streets or expelled from Hong Kong.

Based on this, Chen Guangliang now only has two bodyguards, two drivers who also act as bodyguards, and one assistant.

On the lawn of the villa, the family members took their annual 'family photo,' a key part of the event.

Chen Guangliang's mother, Yang Hui, is 73 years old this year and is still alive.

Dozens of people were arranged in two rows, smiling, and the butler pressed the shutter.

"Help Grandma inside. Those of you who want to go in and rest, go ahead!"

"Grandma, let me help you!"

"No need to help me, I'm perfectly healthy!"

"Yes, you're doing great! We're even waiting for you to live to be 100!"

Next, on the grass, people chatted in twos and threes, not necessarily about business, but mostly about their own situations or the things they had encountered.

"Wenkai, when do you plan to get married?"

Everyone was drawn to this topic. Chen Wenkai, the third son of the eldest son's family, is almost 25 years old this year. Last year, while on a business trip in the United States, he met a Taiwanese immigrant girl at a Chinese banquet, and the two fell in love.

Chen Wenkai generously said, "Manxue plans to come to Hong Kong to work this year, and barring any unforeseen circumstances, she will get married in the next year or two."

Everyone offered their congratulations.

Everyone knows that the 'criteria for choosing a partner' set by their parents are actually quite simple: both the man and woman should have received higher education, and the other party's family should be of normal standing.

Chen Wenkai's parents would undoubtedly have no objections to He Manxue's acquaintance, unless he behaved extremely poorly after meeting her.

Chen Wenjie said happily, "Wenming will be a father soon, and we brothers and sisters will gradually become parents ourselves. Only then do we realize how hard it was for our parents to raise us."

As the eldest brother, he was the "parent" of his siblings when their parents were not around. He was also the most methodical second-generation member—he spent two years in the United States, joined the family business, married his childhood sweetheart and had children, became a senior executive in the family business, and now has a son and a daughter.

Chen Wenjin immediately chimed in, "Only when you become a parent do you realize the love and gratitude you owe your parents; only when you start working do you realize how difficult the business world is. Our family originated in Shanghai, and of the truly great entrepreneurs of that time, almost none are still active in the business world today. Some stayed in the mainland, and some went overseas. Take the Rong and Liu families, for example; they are no longer active. I've also met many Chinese families in the Americas, but they all basically struggled to adapt to the business environment. Now that I think about it, with my father as our support, we really have the courage to make the wrong choice as long as we work hard."

He doesn't mind people saying he's far inferior to his father, because that's the truth. Without his father, he wouldn't have become a real estate tycoon in America at such a young age.

No matter how old the siblings were, none of them were tired of the topic. Instead, they all listened attentively, including Audrey Hepburn's eldest son, Chen Wen'ou (11 years old), who was fluent in both Chinese and English.

Chen Wenming lowered his head and said, "I was ignorant before, but I understand now."

Chen Wenjin immediately patted his shoulder and said, "Third brother, let's not talk about the past. Besides, that kind of thing is very normal. You're going to be a father this month, so you'll understand it even more deeply."

Unity and inheritance are probably the 'soul' of this family.

“Yes, Third Brother is actually the one praised the most by Mom and Dad. They say he’s not only smart, but his thoughts are also outstanding.” Chen Leyi came over and put her arm around Chen Wenming’s shoulder.

Although they are two families, they are actually from the same mother, because when they were young, they may have been raised by the other mother for many days and often had gatherings.

Chen Wenming immediately said to Chen Leyi, "Leyi, I haven't asked you anything yet."

Chen Leyi blushed immediately, her usual lively and outgoing personality shattering as she awkwardly said, "Whatever I say, Third Brother, please don't say anything out of turn!"

"Ha ha"

Everyone laughed, but didn't mention it again.

Chen Leyi has always been the most popular, and her parents will not force her to do things she doesn't like, including marriage.

Of course, Chen Leyi's marriage is also restricted, with the key being that it is limited to Chinese people. This was something Chen Guangliang told her privately.

At this point, the family already had a white daughter-in-law, so it was naturally inappropriate to openly impose restrictions. Secondly, Audrey Hepburn's family was of mixed race, so it was also impossible to reveal that.

The whole family is enjoying themselves.

Shortly after New Year's Day, Chen Guangliang arrived at Huatai Company.

This is just a subsidiary of the Yangtze River Industrial Group, which owns two major industries: 'plastic flowers' and 'toys'.

However, after reaching its peak in 1961 (with total exports of HK$6.5 million), plastic flowers began to decline.

Huatai Plastics also made timely adjustments and gradually developed into a production + agency model. Now it only has more than 2000 plastic flower workers. If there are orders that cannot be completed in time, it will find other plastic flower factories or family factories to do the work.

On the contrary, Huatai Toys (Kidswant is a brand) has developed rapidly, exporting a large amount of products every year, and its patented products include Rubik's Cubes, plastic building blocks (some), claw machines and other products.

Chen Guangliang convened a meeting with the management of Huatai Toys, during which he asked, "Have you studied the 'Barbie doll' case? What are your thoughts?"

Audrey, the parent company of Barbie, is Huatai Toys' largest partner, exporting 300 million Barbie dolls annually, and this number continues to grow. An executive stated, "Barbie is not just a plastic doll; it's a culture, a toy with a soul. Therefore, Barbie sales have increased year by year, from less than 30 units initially to ten times that amount now. Audrey's industrial operations are something we can learn a lot from!"

Other senior executives also expressed their opinions.

Huatai Toys (including Kidswant) has a strong corporate culture and is not just a knock-off factory, so its management team is highly competent. Therefore, when promoting Rubik's Cubes and claw machines, they naturally need a certain level of global marketing capability.

Shortly after, Chen Guangliang said, "The reason I've gathered everyone here is to establish a comic book publishing house under the name 'Kids King.' Toys can't be inanimate objects. Take Donald Duck and Talking Tom in the US, for example; they have corresponding works. With the support of these works, toys are just peripheral products. And peripheral products can have Donald Duck printed on clothes or be co-branded with restaurants—that's how IPs are formed. If the toy industry wants to truly become the world's largest, we can't just do low-value-added OEM manufacturing; we have to create IPs. Kids King isn't an IP; it's just a company. So, by establishing this comic book publishing house, I'm preparing to create IPs."

General Manager Su Dongsheng immediately said, "There are comic books in Hong Kong, but they are all from the left, just like the left in movies. If we want to make comic books, we need to cultivate our own talent."

Having worked for the boss for a long time, he wouldn't doubt that the things the boss proposed were small matters, but believed they must have profound significance.

Chen Guangliang said, "More than that. We are going to invest heavily in this industry. First, we need to set up a training course, recruit apprentices, and provide long-term, professional training. Second, we need to make changes to this industry. We can learn from the strengths of the United States and Japan, and then gradually develop a local Hong Kong comic style. Finally, while maintaining a professional art style, we also need to unleash the imagination of the story. Therefore, an excellent comic artist also needs to be intelligent. In short, we need to recruit another thirty students and provide them with professional training."

"Ok"

Once a certain number of talented individuals are available, Chen Guangliang will consider providing an outline and guiding principles to promote the development of this industry.

The reason he intervened in this matter was because Chan Kwong-leung knew the importance of the cultural industry. Hong Kong cannot only have finance, real estate, trade, and industry; it should also attach importance to the cultural industry.

Hong Kong films and TV dramas also count, but these are only classics of a certain period. Comics, on the other hand, can have a longer-lasting impact and are more easily accepted globally.

The top floor of Poly Plaza in Central.

Chen Guangliang's office at Cheung Kong Holdings is located here. This building is currently the tallest building in Hong Kong, with 36 floors.

"Dad, the Hilton Hotel at 2 Queen's Road Central is opening next month and they've invited us to the reception!"

Chen Guangliang raised his head and slowly said, "What do you think of the current state of Hong Kong's hotel industry, and what should we do?"

Chen Wenjie began serving as the Deputy General Manager and Executive Director of CK Asset Holdings this year, and his work has shifted from commercial real estate to all business operations, making him the company's third-in-command.

As for the second-in-command, it is still Yan Kuan, the "old minister," who is only 60 years old this year.

Therefore, Chen Guangliang's inclination was that Chen Wenjie should begin serving as the group's second-in-command before Yan Kuan retired.

Chen Wenjie said:
"The Mandarin Oriental Hotel, which opened at the end of last year, is not far from us. Moreover, the Mandarin Oriental Hotel is a British-style hotel. The Hilton Hotel, which opened this year, is an ambitious joint investment by two real estate developers from Texas and the Hilton Hotel Group. As a result, there are already three five-star hotels in Central and one in Kowloon in Hong Kong—namely, the Peninsula Hotel, the Mandarin Oriental Hotel, and the Hilton Hotel. They are all direct competitors of ours. Of course, once the Cross-Harbour Tunnel opens at the end of next year, there will be four five-star hotels directly competing with each other."

"Our Shangri-La Hotels have a history of over 30 years. They are neither British nor American, but rather a benchmark for modern hotels. We have made many hotel innovations, including buffets, Simmons being the first hotel in Asia to enter Shangri-La Hotels, the promotion of mini bars, and our unique reservation system. So we are not afraid of competition."

"However, Shangri-La Hotels needs to go beyond Hong Kong to prove itself!"

Chen Guangliang nodded and said, "I've already been considering expanding beyond Hong Kong, and we'll finalize the general strategy within the next year or two. Moreover, our actions will be significant, so there's no need to rush."

Chen Wenjie continued, "In the four-star hotel sector, our Miramar Hotel and Furama Hotel hold a dominant position, facing competition from some two- and three-star hotels, such as the Grand Hyatt Hotel on Nathan Road."

"Um"

Chen Wenjie continued, "From the current perspective, Hong Kong's hotel industry is developing rapidly, mainly due to the rapid development of Hong Kong's economy and the rapid growth of foreign investment and tourism in Hong Kong."

Chen Guangliang immediately grasped the key point, saying, "That means the international expansion of the hotel industry will become a hallmark, so Shangri-La Hotels and Resorts needs to enhance its internationalization and service capabilities. The key is to utilize advanced equipment to provide better service."

"Yes. We'll call the Shangri-La Hotels and Resorts group together later to discuss this."

Chen Wenjie is not worried about them falling behind in advanced technology, because his father has shown foresight in many areas.

What about the retail industry?

Chen Wenjie immediately began to think. He knew this was a test from his father, but he didn't need to feel too much pressure. The key was whether he had seriously studied all of the group's businesses.

“In Hong Kong today, the main retail model is the department store industry. Lane Crawford dominates the high-end market, but it is not an easy position to succeed there. Although Lane Crawford has acquired Chung Hwa and Tai Sing Department Stores to enter the mid-to-low-end department store market, Wing On and Sincere are doing better in the mid-to-low-end sector. However, Daimaru Department Store is performing well and has a significant competitive impact on Wing On and Sincere.”

Cheung Kong Holdings owns 50% of Daimaru Department Store.

In this way, Cheung Kong has effectively established a dominant position in the department store sector.

Chen Wenjie continued, "Although we have achieved great success in the department store sector, we have not rested on our laurels. Instead, we entered the supermarket sector early on. Wellcome Supermarket currently has 18 stores, including 3 in Singapore, a very impressive achievement. Our competitors are the joint venture supermarkets of Dairy Farm and others, but they are still in their early stages and only have 3 stores. In addition, Watsons, a long-established retailer, is a very strong player."

Chen Guangliang tapped the table and said, "Supermarkets are developing rapidly, as can be seen in Europe and America. Their characteristic is self-service, giving customers a better shopping experience, just like the rise of shopping malls—it's unstoppable. As for the development of Wellcome Supermarket, I personally oversaw some measures. The overall strategy is sound; the key lies in the product quality and pricing of the supply chain, as well as service."

"Okay, I'll organize a meeting with Lane Crawford later to discuss this!"

Now that he's the deputy general manager, he's constantly in meetings.

Chen Guangliang continued, “There’s another retail model: the convenience store. Represented by 7-Eleven in the US. This convenience store model differs from department stores and supermarkets; it’s more like a chain store – small in size, with long operating hours, and the merchandise sold in each store varies depending on the location. It’s very suitable for highly urbanized and modernized cities. For example, if you open a convenience store in Central, Hong Kong, its main target customers are office workers. So, the merchandise should appeal to office workers. We can also sell ready-made foods, such as hot dogs, steamed buns, instant noodles, boxed lunches, or fast food, and provide microwaves and small tables.”

Chen Wenjie wrote it down with paper and pen. He knew that his father was arranging things for his subordinates. In the past, it was other senior executives who were doing it, but now it was being communicated directly through him.

"I'll have someone from Lane Crawford Department Stores take a look at this convenience store."

"Okay, let's familiarize ourselves with and discuss this business model first, and then submit the proposal to me later."

"Ok"

Chen Guangliang does not intend to create his own brand, but rather plans to acquire the Asian distribution rights for 7-Eleven.

He planned to have Yoko Tsukasa collaborate with Nissin Foods to try and develop the retail industry in Japan, using advanced concepts to establish a firm foothold. (End of Chapter)