Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 121 Waiting for the Best Price (Seeking monthly votes and recommendations to continue reading)
At the small preview screening of "Drunken Master" that Chen Bingwen attended before.

After watching the film, distributors in Taiwan, South Korea, and Southeast Asia reacted lukewarmly, pushing down the price for buying out overseas distribution rights.

Wu Siyuan himself was not confident, so he planned to take profits while he was ahead and sell the distribution rights in Taiwan and South Korea to recoup some losses.

If it weren't for Chan Ping-man stopping him, Ng See-yuen probably would have sold the distribution rights for "Drunken Master" in Taiwan and South Korea for only two or three hundred thousand Hong Kong dollars.

Chen Bingwen told Wu Siyuan very firmly at the time, "The movie 'Drunken Master' is different from previous kung fu movies."

You can't feel the impact and the laughter of the audience just by watching the film.

We must wait for its official release and let the market's enthusiasm prove its value.

These buyers are all trying to drive down the price.

Once the Hong Kong Island box office explodes, they'll be scrambling to throw money at us, at prices several times higher than before. Be patient; good things come to those who wait.

It was that timely advice that dissuaded Wu Siyuan from his eagerness to cash out, which led to his current willingness to wait for a better price.

Chen Bingwen smiled calmly: "Mr. Wu, you flatter me."

I simply have confidence in the film itself and in Jackie Chan's potential.

Good things should be sold at a higher price. It seems we made the right decision.

“Yes! Yes! Wait for the best price! That’s absolutely right!” Wu Siyuan nodded repeatedly. “Now that ‘Drunken Master’ is so popular in Hong Kong, the news is spreading like wildfire, and the distribution companies outside the island can’t sit still!”
My phone has been ringing off the hook these past few days, and my office doorstep has practically been worn down by people knocking on it!

"Taiwanese film distributors are now asking for a guaranteed buyout of HK$1 million, plus 15% of the box office revenue! The price in South Korea has risen to HK$800,000! Even in North America, several strong independent distribution companies have expressed strong interest, offering terms that are many times better than the previous one!"
They're all confident that Jackie Chan's kung fu comedies have a market overseas!

Wu Siyuan excitedly recited the numbers, each one representing a huge profit.

This is a world of difference compared to the price he almost sold it for at a bargain price before.

But his purpose in coming today was clearly not just to share his joy and express his gratitude.

"Mr. Chen, I'm here today not only to express my gratitude, but also to discuss two rather special matters with you, or rather, to get your opinion on them, since they involve the agreements in our original contract."

"Oh? Please speak." Chen Bingwen's expression remained unchanged, but he had already vaguely guessed what was going on.

When he initially invested, he gave up profit sharing in Hong Kong and Taiwan in exchange for the copyrights in Japan and Southeast Asia. Now that "Drunken Master" has become a huge hit, the value of these regions has become apparent.

“The first thing is from the Japanese side.” Wu Siyuan lowered his voice a bit, “There is a very, very powerful company called ‘Toho Towa’.”

They sent their vice president in person, expressing great interest in the Japanese rights to "Drunken Master," and asking for a whopping three million Hong Kong dollars.

When Wu Siyuan announced the number, his voice trembled slightly, clearly indicating that the amount had shocked him.

He paused briefly, observing Chen Bingwen's reaction, and cautiously said, "Mr. Chen, according to our previous contract, all copyrights of 'Drunken Fist' in Japan, including distribution, derivatives, etc., belong entirely to you."

The people at Toho and Towa are very keen to facilitate the cooperation; their intention is extremely strong, and their distribution channels are among the best in Japan.

So they asked me to ask Mr. Chen what you think: do you plan to operate the Japanese market yourself, or can you consider licensing it to them?
If we collaborate with them, I believe the box office will be phenomenal.

After Wu Siyuan finished speaking, he looked at Chen Bingwen expectantly, waiting for his decision.

In his view, the buyout price of three million Hong Kong dollars was simply a windfall, and there was almost no reason to refuse.

Chen Bingwen did not answer immediately.

Toho Towa, one of Japan's largest film distributors, has undeniable strength.

A buyout price of three million Hong Kong dollars is absolutely astronomical these days.

But Chen Bingwen thought further ahead.

He recalled Red Bull's failure in the Japanese market in his previous life and knew the power of cultural differences and market barriers.

"Drunken Master" is not just a movie, but also a vehicle for Jackie Chan's personal brand and cultural influence.

While a one-time sale could quickly generate a huge amount of cash, it also meant giving up all potential, potentially greater, future profits, as well as the opportunity to deeply expand into the Japanese market through this film.

“Mr. Wu,” Chen Bingwen said slowly, “Dongbao and Donghe are excellent partners. I have seen their strength and sincerity.”

However, my thoughts might be a little different regarding the Japanese market.

He looked at Wu Siyuan and said, "I don't plan to sell the Japanese copyright outright in one go."

I hope to cooperate with them through distribution agency, and we could even consider jointly establishing a promotional entity.

We provide the source material and some funding, while they handle distribution channels and localized marketing. Revenue is split proportionally.

In this way, we can both leverage their strengths and ensure our long-term control over the IP.

This film should be our stepping stone to opening the door to the Japanese market, not a one-off deal.

Wu Siyuan was stunned, his heart pounding.

Three million Hong Kong dollars in cash!
Chen Bingwen rejected it without even blinking, and instead proposed a more complex and riskier cooperation model!
“I understand, Mr. Chen.”

Wu Siyuan digested the information in Chen Bingwen's words and said admiringly, "You mean, we don't relinquish ownership, only the right to issue shares, in pursuit of long-term profits and control. This idea is indeed more forward-looking! I will convey your meaning to the representatives of Dongbao Donghe and see if they accept this cooperation model."

“Yes.” Chen Bingwen nodded. “What we need are strategic partners, not one-off buyers.”

You can explain this to them.

"Okay, no problem, leave it to me!"

Wu Siyuan nodded and made his promise.

"And the second thing?" Chen Bingwen asked.

“The second thing is Singapore,” Wu Siyuan quickly said. “There is also a very powerful distribution company there called ‘Cathay Organization,’ which is Shaw Brothers’ old rival in Singapore. They want to inquire about the copyright in Southeast Asia.”

"'Cathay Group,' Shaw Brothers' old rival in Singapore?" Chen Bingwen confirmed.

“Yes, ‘Cathay Group’.” Wu Siyuan nodded affirmatively. “They have a lot of influence in Singapore and Malaysia, and their cinema resources are very solid. They have always been a formidable rival of Shaw Brothers there.”

They were very interested in *Drunken Master* and offered HK$800,000 for the exclusive distribution rights in Southeast Asia.

He paused, then asked again, "Mr. Chen, what do you think?"

Whether Cathay Organization was Shaw Brothers' old rival or not was none of Chen Bingwen's concern.

He is now considering how to use the movie "Drunken Master" to integrate the Southeast Asian strategy that he and Ling Pei-yi just finalized.

Lee Ming Zhe is about to take office in Singapore, in charge of the entire Southeast Asia business.

"Pulse" instant concentrated powder is about to be shipped to the Sin Chew plant and Hong Fatt plant, where it will be bottled locally and then launched in the Singapore and Malaysia markets.

Now, another powerful film distributor has arrived, controlling a vast theatrical distribution network…

This is no longer just a simple transaction of film copyrights; it is a golden opportunity to deeply integrate cultural products with physical goods and promote each other!

A clear and bold plan instantly took shape in Chen Bingwen's mind.

He smiled and looked at Wu Siyuan: "Mr. Wu, tell the people at Cathay Group about the Singapore distribution."

"We can discuss it, and I think this is a very good opportunity for cooperation."

Wu Siyuan breathed a sigh of relief and was about to agree when Chen Bingwen suddenly changed the subject and proposed a cooperation model that he hadn't expected:

"However, I plan to be more innovative in my approach to cooperation."

A buyout of 800,000 can serve as a guaranteed income.

In addition to this, I would like to add one more clause: box office revenue sharing.

Cathay Organisation is responsible for distribution and promotion, and we share the box office revenue.

The specific percentage can be negotiated by Chen Ji's legal advisor, Attorney Gu.

In this way, if the movie is a big hit, my earnings will be far more than 800,000.

Even if my performance is mediocre, I have a safety net.

Wu Siyuan's eyes lit up: "A guaranteed minimum plus a percentage of the profits?"

This model is great! It will encourage them to focus more on the release process!

"But that's not the most important thing," Chen Bingwen smiled and continued, "The most crucial thing is that this cooperation must be deeply integrated with our Chen Ji's 'Pulse' energy drink, which will soon be launched in Singapore and Malaysia!"

"Deep integration?" Wu Siyuan didn't quite understand at first. "Chen Sheng, what do you mean?"

"Joint marketing! Resource sharing! I hope that the 'Pulse' brand logo and product image will appear on all promotional materials for 'Drunken Master' in Singapore, including posters, trailers, and cinema standees."

“We can set up ‘Pulse’ experience points in all Cathay Group cinemas and launch a themed movie-watching package called ‘Watch ‘Drunken Master,’ drink ‘Pulse,’ replenish your energy, and laugh your way through the martial arts world.’ We can bundle movie tickets with ‘Pulse’ drinks and offer a discount.”

"Even before the main feature of the movie, a special ad segment filmed by Jackie Chan for 'Pulse' could be added, with content that echoes his character in the film!"

Chen Bingwen's thinking became clearer and clearer as he spoke: "The relevant joint marketing expenses will be mostly borne by Chen Ji!"
For Cathay Group, they not only gained a hit movie, but also a powerful consumer brand to jointly invest resources in promotion, attracting more audiences to theaters. This can only benefit them, with no drawbacks!

Wu Siyuan was stunned, his mouth slightly agape, completely shocked by Chen Bingwen's imaginative yet logically rigorous cross-disciplinary integration approach.

This has completely gone beyond the scope of a film copyright transaction!

"Mr. Chen."

Wu Siyuan really wanted to crack open Chen Bingwen's head and see what was inside.

Why did you come up with such a commercially viable idea?

"Movie promotions drive beverage sales, and beverage distribution channels and promotions, in turn, boost the movie's popularity!"
We can leverage each other's strengths and achieve mutual success!
This is simply a business genius!
Cathay Group will definitely be thrilled when they hear this proposal!
This is much more interesting than simply selling copyrights!

(End of this chapter)