Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 135 Squeezing out the last drop of commercial value (First update of 10,000 words per day, please vote with monthly tickets and recommendations, and please continue reading)
Hotel suite in Minato Ward, Tokyo.

Chen Bingwen put down the phone, a satisfied smile appearing on his face.

Ling Peiyi and Li Ming watched him nervously.

“Suntory has confirmed it,” Chen Bingwen said in a relaxed tone. “The estimated sales revenue for the first week was 1.4 million yen, and the target has been achieved ahead of schedule.”

Channel commissions will be charged at the lowest rate of 2%.

"That's great!" Ling Peiyi couldn't help but cheer, clenching her fists excitedly.

Li Ming also breathed a sigh of relief and smiled, "Mr. Chen, now we've completely established ourselves! With a 2% commission and our own production cost control, the gross profit margin is very considerable!"

Chen Bingwen nodded, walked to his desk, picked up his pen, and began to calculate quickly.

"We shipped 150 million bottles, and Suntory settled with us at the wholesale price, which was about 70 yen per bottle (excluding channel commission)."

Total shipments: 1.05 million yen.

"2% channel commission: 300 million yen."

"Our actual revenue: approximately 1.02 million yen."

"Regarding costs," he continued, "the cost of the concentrate, PET bottles, packaging, filling fees (paid to Suntory's filling plant), and logistics to port. The overall cost is controlled at around 15 yen per bottle."

Total cost: 2250 million yen.

Gross profit: approximately 0.795 million yen.

"On the Suntory side alone, the gross profit margin is 77.9%."

“Hmm,” Chen Bingwen put down his pen, “considering this is the first week, the promotional expenses are relatively large.”

Once operations stabilize and economies of scale are achieved, a gross profit margin of 60% is entirely possible, even including advertising and promotional expenses.

This number made Ling Peiyi and Li Ming gasp in shock.

60% gross profit margin!

In the fiercely competitive Japanese fast-moving consumer goods market, this is simply a dream number!

This means that "Pulse" has not only successfully opened up the market, but also possesses extremely terrifying profitability!

“Mr. Chen, this…” Ling Peiyi was at a loss for words.

"As expected." Chen Bingwen smiled and said matter-of-factly, "Functional drinks have a higher profit margin than ordinary drinks."

We leveraged our patent barriers, precise positioning, cultural ties, and channel advantages to achieve brand premium.

Coupled with the extremely low channel costs resulting from the successful performance-based agreement, high gross profit margins are an inevitable outcome.

He looked at Ling Peiyi and Li Ming: "Only with high profit margins can we have sufficient resources to consolidate the market, develop new products, and deal with potential competition."

Before Chen Bingwen could finish speaking, the phone in the suite rang again, breaking the brief atmosphere of excitement.

Ling Peiyi walked over and answered the phone: "Hello? Mr. Inoue? Okay, please wait a moment."

She covered the microphone, turned to Chen Bingwen and said, "Mr. Chen, this is Mr. Tetsuji Inoue from Toho Towa."

Chen Bingwen's heart skipped a beat, and he immediately went over to take the phone: "Mr. Inoue, hello."

"Chen-san!" came Inoue Tetsuji's slightly excited voice from the other end of the phone, "Good news!"

Mr. Kiyoshi Matsumoto, the head of Ms. Yamaguchi's agency, has received your offer of cooperation.

He stated that Ms. Yamaguchi herself was very interested in the 'Pulse' brand concept and was willing to arrange an initial meeting to explore the possibility of cooperation.

Koji Inoue's words reassured Chen Bingwen; the progress was faster than he had anticipated.

He originally thought that Yamaguchi Momoe might have to wait a little longer, until the market response to Pulse became more enthusiastic before there would be any feedback.

After all, before this, Pulse was an unknown product in Japan.

"That's wonderful! Thank you so much for your help, Mr. Inoue! When would be a convenient time to meet with Mr. Matsumoto?"

Chen Bingwen thanked him with a smile.

“Time is tight,” Tetsuji Inoue said. “Mr. Matsumoto is available at 3 p.m. tomorrow. We can arrange the location in the tea room on the top floor of the Imperial Hotel, which is a more private setting.”

Mr. Chen, what do you think?

“No problem!” Chen Bingwen replied without hesitation. “Tomorrow at three o’clock in the afternoon, at the tea room on the top floor of the Imperial Hotel, I will definitely be there on time!”

"Okay! I will pass on your reply to Mr. Matsumoto. I wish Mr. Chen all the best in his negotiations!"

Tetsuji Inoue hung up the phone after he finished speaking.

"Is there any news from Inoue?" Ling Peiyi asked anxiously as Chen Bingwen hung up the phone.

“Yes,” Chen Bingwen nodded. “Momoe Yamaguchi’s manager, Kiyoshi Matsumoto, has agreed to meet at the Imperial Hotel’s tea room at 3 p.m. tomorrow.”

"That's great!" Ling Peiyi and Li Ming were both invigorated.

Momoe Yamaguchi's endorsement is a key step in enhancing the "Pulse" brand image and reaching a wider audience!
"Director Ling, please prepare a detailed brand introduction and market positioning report for 'Pulse', highlighting our core values, target audience, and initial success data in the Japanese market."

In addition, we prepared several preliminary creative proposals for the endorsement, highlighting the fit between Ms. Yamaguchi's healthy, pure, and energetic image and 'Pulse'.

The advertising slogan uses "Choose vitality, choose pulse!" as its core message.

“Okay, Mr. Chen!” Ling Peiyi immediately agreed. “I’ll get right on it! I’ll make sure it’s ready before tomorrow’s meeting!”

The following afternoon, at the Imperial Hotel's rooftop tea room.

The environment is elegant, and the view outside the window is of Tokyo's bustling skyline.

Chen Bingwen and Ling Peiyi arrived ten minutes early.

At exactly 3:00, Matsumoto Kiyoshi appeared right on time.

He was not alone; he was accompanied by a capable female lawyer and a composed financial advisor.

Matsumoto Kiyoshi himself was about forty years old. He was wearing a well-tailored dark suit, with sharp eyes and a calm and capable demeanor, exuding the shrewd aura of a top agent.

"Mr. Chen, it's a pleasure to meet you." Matsumoto Kiyoshi extended his hand and greeted him very politely. "Mr. Matsumoto, it's a pleasure to meet you." Chen Bingwen shook hands with him.

After they were seated, a waiter served them tea.

After a brief exchange of pleasantries, Matsumoto Kiyoshi cut straight to the point without any beating around the bush:

"Mr. Chen, Ms. Yamaguchi agrees with the healthy and energetic lifestyle advocated by 'Pulse' and has also seen the initial potential of your brand in the Japanese market."

However, endorsement collaborations are not merely about using an image; they represent a deep alignment of brand values.

He looked at Chen Bingwen and said, "Miss Yamaguchi's image value is unique in Japan and even in the whole of Asia."

Her endorsements not only require products of excellent quality, but also demands that the brand's image, market positioning, and future development potential be highly aligned with her public persona.

“Mr. Matsumoto,” Chen Bingwen met his gaze, his tone neither humble nor arrogant, but full of confidence, “we fully understand and respect Ms. Yamaguchi’s image and value.”

The core value of 'Pulse' is to promote a healthy and energetic lifestyle.

This perfectly aligns with Ms. Yamaguchi's healthy, sunny, and positive public image.

He gestured for Ling Peiyi to hand over the prepared documents: "This is detailed information about our brand, including market positioning, core values, target audience analysis, and market performance data for the first week in Japan."

For us, Ms. Yamaguchi's endorsement is not just a simple business collaboration, but an elevation of the brand's soul.

We look forward to Ms. Yamaguchi becoming the perfect embodiment of the "Pulse" spirit of vitality.

Matsumoto Kiyoshi took the document, quickly flipped through it, and lingered for a moment on the first week's sales data and market feedback.

He put down the documents and looked at Chen Bingwen: "We have seen Mr. Chen's sincerity and brand planning."

Now, let's discuss the specific cooperation framework.

He paused for a moment, then continued, "Endorsement areas: Japan, South Korea, and Hong Kong Island."

"Endorsement category: limited to 'Pulse' energy drinks."

Endorsement period: three years.

"Image usage: All advertising creative ideas, visual presentations, and scene settings must be ultimately reviewed and confirmed by the Yamaguchi team to ensure that they conform to its healthy, pure, and natural image positioning."

"Endorsement fee: 100 million yen per year (approximately HK$225 million), totaling 300 million yen (approximately HK$675 million) over three years."

Payment will be made in three installments, with the first year's fee due upon signing the contract.

When Matsumoto Kiyoshi announced the number, he kept his eyes fixed on Chen Bingwen, observing his reaction.

One hundred million yen per year!
Three hundred million in three years!

In Japan in 1979, this price was absolutely top-tier, reserved for superstar level!
Ling Peiyi, who was listening nearby, felt a jolt in her heart and subconsciously looked at Chen Bingwen.

Li Ming held his breath.

However, Chen Bingwen's face remained completely expressionless, not even his eyebrows twitched.

At this moment, he had already calculated the costs perfectly in his mind.

"One hundred million yen a year, which is equivalent to 225 million Hong Kong dollars, and 675 million in three years."

"In my previous life in 2020, a top female celebrity endorsed a domestic sparkling water brand. She paid 8000 million RMB for her image rights for just six months, and she could only shoot two short videos and post two Weibo posts."

"Momoe Yamaguchi's contract averages less than HK$300 million per year, and she also received a one-of-a-kind emotional leverage."

"The price-performance ratio is ridiculously high."

Chen Bingwen picked up his teacup, took a small sip, and spoke as if he were hearing a common price rather than an astronomical figure.

Setting down his teacup, Chen Bingwen looked at Matsumoto Kiyoshi, his tone as calm as if he were discussing the weather:

“Mr. Matsumoto, we highly value Ms. Yamaguchi.”

"I can accept a price of 100 million yen per year."

He paused, then changed the subject: "However, the endorsement area cannot be limited to Japan, South Korea, and Hong Kong Island; it must be expanded to the whole of Asia."

“The product categories endorsed cannot be limited to ‘Pulse’ energy drinks; they must be the entire range of Chenji Food products.”

"This includes our upcoming 'Chen Ji' brand of sweet soups, juices, teas, and mineral water, as well as all future new products."

Regardless of whether there are products or not, Chen Bingwen always takes preventative measures to avoid future disputes.

Matsumoto Kiyoshi frowned slightly, clearly not expecting Chen Bingwen to propose such a significant expansion.

He pondered for a moment, then slowly said, "Mr. Chen, you should know that Ms. Yamaguchi is always cautious about endorsements. A deal involving all product categories and all of Asia carries extremely high risks."

"If your brand experiences any negative events in the future, or if new products do not match her image, it will cause her incalculable harm."

Chen Bingwen nodded and said seriously, "I understand Mr. Matsumoto's concerns."

"Therefore, I am willing to add an image protection clause to the contract."

"First, all advertising ideas, product packaging, and promotional copy that use Ms. Yamaguchi's image must be ultimately reviewed by her team."

"Secondly, all Chenji Foods products must conform to the brand's tone of 'health, nature, and vitality.' She has the right to refuse to endorse any new products that do not meet the standards."

"Third, if Chen Ji Foods experiences a major quality incident or brand image crisis, Ms. Yamaguchi has the right to unilaterally terminate the contract, and the endorsement fee already paid will not need to be refunded."

"Fourth, the contract term is extended to five years, with the annual endorsement fee remaining at 100 million yen. However, the contract can be renewed in the fifth year depending on market conditions."

"Fifth, if Ms. Yamaguchi suffers a major personal reputation crisis or conduct during the endorsement period that causes substantial damage to the Chenji brand image, Chenji has the right to terminate the contract in advance and has the right to recover part of the endorsement fee for the unfulfilled contract period and claim compensation of three times the amount of damages."

"Sixth, if Ms. Yamaguchi is unable to fulfill her contractual obligations due to personal reasons, Chenji has the right to terminate the contract in advance. The Yamaguchi team shall refund the corresponding proportion of the endorsement fee for the unfulfilled contract period, bear the relevant marketing and production costs that Chenji has invested and cannot recover, and compensate Chenji for a series of losses caused by the early termination."

After listening, Matsumoto Kiyoshi remained silent for a long time.

He then turned to the female lawyer and financial advisor behind him and whispered a few words of advice before speaking, "Mr. Chen, I have seen your sincerity and courage."

"But I must discuss this matter with Ms. Yamaguchi in person. I will give you my final answer in three days."

Chen Bingwen smiled slightly and extended his hand: "I look forward to cooperating with Ms. Yamaguchi, and I also look forward to 'Chen Ji' and 'Yamaguchi Momoe' jointly ushering in a new era of Asian health drinks."

(End of this chapter)