Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 138 Exclusive Distribution and Exclusive Agency (Seeking monthly votes, recommendations, and continued reading)
Kim Sung-soo gestured dramatically and said, "After the movie ended, Assistant Park and I walked out of the theater and heard many audience members talking about it:"
Wow, that sweet soup looks delicious!

'What kind of sweet soup is it? Mango pomelo sago? Coconut milk sago?'

Where can I buy it?

The results of it? "

He spread his hands, making a helpless expression, "We searched all the supermarkets, convenience stores, and even traditional markets in Seoul, but we just couldn't find it!"
The audience was extremely disappointed!

Assistant Park nodded repeatedly and added, "Chairman Chen, Drunken Master is extremely popular in South Korea!"

Two weeks after its release, the number of moviegoers has exceeded one million!
And the hype continues!

Many young people, especially female viewers, pay close attention to the fashion elements and food featured in the film.

'Chen's Dessert' has become a hot topic among young people in South Korea!
Everyone's asking, "Where can I buy the same bottled sugar water featured in the movie?"

At this point, Kim Sung-soo looked at Chen Bingwen eagerly and pleaded, "Chairman Chen, our Seoul Food Trading Company has mature food import channels and distribution networks in South Korea, and we have good cooperation with large supermarkets and chain convenience stores such as Lotte and Shinsegae."

We are very sincere in our desire to obtain the exclusive distribution rights for Chen Ji bottled sweet soup in South Korea!

Bringing such a great product to Korean consumers!

Chen Bingwen listened quietly with a faint smile on his face, but his heart was in turmoil.

He anticipated that product placement in "Drunken Master" would be effective, but he did not expect it to generate such a direct and enthusiastic market response in South Korea!
The "hunger" that audiences feel after watching a movie, actively seeking out products but unable to purchase them, is exactly the kind of situation marketers dream of!
This is more persuasive than any advertising blitz!

The South Korean market has a population of nearly 4000 million and its economy is in the early stages of rapid development. Consumer spending power is gradually increasing, especially among young people who are highly receptive to new things.

He had previously planned to enter the South Korean market in a year or two.

Now, with the huge traffic and buzz generated by "Drunken Master," entering the fray at this time is simply perfect timing and opportunity!

However, Chen Bingwen thought of something even deeper.

The product placement in the movie only boosted the popularity of "Chen Ji Dessert Soup," but Chen Ji's core new product and future growth engine is the "Pulse" energy drink!
The success in Singapore and Japan has proven that "Pulse" has a huge market among young people and manual laborers.

South Korea's economy is taking off, its overtime culture is prevalent, and its large young white-collar workers and students are precisely the potential target customers for "Pulse".

This is an excellent opportunity to simultaneously launch "Pulse" into the South Korean market!

By leveraging Kim Sung-soo's distribution channels and the popularity of "Drunken Master," bundling and promoting "Chen's Dessert" and "Pulse" can create a product mix that covers a wider range of consumption scenarios, maximizing the use of this opportunity!

Thinking of this, Chen Bingwen smiled and said, "President Jin, thank you very much for your and Mr. Park's recognition of Chen's products."

We are very happy that "Drunken Master" is popular in South Korea.

Regarding the entry of bottled sugar water into the South Korean market, Chen's is open to it.

He then changed the subject: "However, our Chenji product line is not limited to bottled sugar water."

We also have a functional beverage called "Pulse" that claims to "instantly refresh and revitalize".

It has been very well received in Southeast Asia and Japan, and is especially popular among young office workers, students and athletes.

Since Chairman Kim is so optimistic about the Korean market, why not introduce both "Chen's Bottled Sugar Water" and "Pulse" energy drinks to the Korean market together?

Upon hearing Chen Bingwen's words, Kim Sung-soo's eyes lit up immediately, and he said happily, "'Pulse' energy drink? Chairman Chen, we've also heard of this product!"

It seems to be selling extremely well in Japan and Singapore!

That would be wonderful if it could be imported to South Korea along with bottled sugar water!

A more diverse product line means greater market potential!

Assistant Park excitedly added, "Yes, Chairman!"
South Korean youth are now paying more attention to health and energy management, leading to rapid growth in the functional beverage market!
This kind of energy drink is especially needed by office workers and students who often work overtime!

Chen Bingwen took in their reactions, which made him even more certain.

He pressed his advantage, saying, "I felt Chairman Kim's enthusiasm. The Korean market has huge potential, and Chenji also attaches great importance to this cooperation opportunity."

However, we need to discuss the cooperation method you just mentioned in detail.

Exclusive distribution rights involve multiple aspects, including market development, brand building, channel management, and after-sales service. We need to ensure that our partners have sufficient strength and sincerity to work together to expand and strengthen the market.

As soon as Chen Bingwen finished speaking, Jin Chengzhu immediately patted his chest and assured him, "Chairman Chen, please rest assured!"

Our Seoul Food Trading Company has been deeply involved in the Korean food industry for many years, with a good reputation and strong financial strength!
As long as Mr. Chen is willing to authorize us, we guarantee to invest the best resources to fully promote Chen's Dessert and Pulse Energy Drink!

The price will definitely satisfy Mr. Chen!

Chen Bingwen smiled and did not immediately respond to his question. Instead, he asked, "Chairman Jin, what types of food did your company mainly distribute before?"
What is your experience with beverage distribution channels, especially in logistics and end-user management of refrigerated short-shelf-life products?

He needs to find out more about the other party.

Bottled sugar water is a product with a short shelf life, which places extremely high demands on cold chain logistics and end-of-life turnover efficiency.

If partners lack relevant experience and rush into the market, it could lead to product deterioration and a damaged reputation.

Kim Sung-soo seemed to have been prepared, and spoke eloquently: "Chairman Chen, we previously mainly distributed snacks and condiments from Japan and Southeast Asia, as well as some chocolates from Europe."

I don't really have much experience with beverages.

"But!" he said confidently, changing the subject. "We have a well-established cold chain logistics partner!"

South Korea has a highly developed cold chain logistics system, and the logistics companies we cooperate with have a nationwide network of refrigerated trucks and warehouses!

On the retail side, we have close relationships with purchasing managers of major supermarkets and convenience stores, which ensures the best display locations and timely restocking!
"As for experience," he smiled confidently, "the market is something you forge your way into! We're confident we can do it!"

Upon hearing Kim Sung-soo's words, Chen Bingwen immediately understood.

Kim Sung-soo appears to be very enthusiastic and possesses the corresponding abilities.

However, they actually lack experience in the niche market of ready-to-drink refrigerated beverages.

Granting exclusive distribution rights for two core products based solely on Kim Sung-soo's own words carries excessive risk.

However, the opportunity to enter the Korean market and the popularity brought by "Drunken Master" were too tempting to miss. After thinking for a few seconds, Chen Bingwen quickly formed a more prudent plan in his mind.

“I can feel Chairman Kim’s enthusiasm and strength.” Chen Bingwen nodded. “The South Korean market has huge potential, and our Chen’s also attaches great importance to it.”

However, considering the different product characteristics, market positioning, and cold chain requirements of 'Pulse' and bottled sugar water, and also in order to respond to market feedback more quickly and adjust strategies flexibly,

I suggest we adopt a more flexible and risk-controlled cooperation model.

He looked at Kim Sung-soo and Assistant Park: "Chenji Foods has authorized Seoul Food Trading Co., Ltd. as the exclusive distributor in the Korean market, responsible for the import and sales of the 'Pulse' energy drink and 'Chenji bottled sugar water' product lines."

Specifically, Chenji is responsible for production, quality control, and core brand promotion support, including leveraging the popularity of the movie "Drunken Master".

Seoul Food Trading Co., Ltd. is responsible for import customs clearance, warehousing and logistics, channel distribution, terminal promotion and after-sales service in South Korea.

We supply goods to Seoul Food Trading Company at the agreed ex-factory price. Seoul Food Trading Company has pricing power and channel profit margins in the Korean market.

In addition, we will provide standardized product manuals, promotional materials, and sales training support.

Chen Bingwen explained: "This model can leverage your company's advantages in local channels and connections in South Korea, while also ensuring Chen Ji's control over the brand and product quality."

It is also more flexible and efficient for initial market development.

What does Chairman Kim think?

Exclusive agency and exclusive distribution may seem similar, but in fact they are completely different in core dimensions such as legal nature, ownership of goods, profit model, and risk-bearing.

Exclusive distribution means that Seoul Foods will bear all the inventory risks, capital occupation and operational pressures, with a larger profit margin, but the responsibilities and risks also increase exponentially.

Chen Ji firmly controls the two most profitable and core aspects: branding and production, and can remotely control the threshold of market performance through KPI clauses.

This is a more mature, more demanding, but also fairer cooperation framework.

It requires Seoul Foods to prove that it is not only "passionate," but also "capable" and "well-funded."

Upon hearing Chen Bingwen's request, Kim Sung-soo's smile froze, and a thoughtful expression appeared on his face.

After a few seconds, he whispered a few words to Assistant Park, then asked, "Chairman Chen, we can accept this model."

However, is there any sales target assessment for this 'exclusive distributor'?

Will our qualifications be revoked if we fail to meet the target?

“Of course there will be sales targets,” Chen Bingwen affirmed. “This is a shared expectation for the efforts of both parties.”

The targets will be set reasonably based on market size and growth potential.

At the same time, we will set an observation period, such as six months.

If your company has indeed invested resources but has not yet achieved its goals due to market reasons, we can analyze the reasons together and adjust our strategies. We will not easily disqualify you.

However, if the issue stems from your company's poor execution or actions that damage your brand, we reserve the right to adjust the cooperation agreement.

He added, "In addition, we need to jointly determine the quantity and product mix of the first order based on the taste preferences and channel characteristics of the Korean market."

For example, which is more popular: mango pomelo sago, coconut milk sago, or red bean soup with tangerine peel?
Does the sweetness need to be adjusted?
Will the functional claims and taste of 'Pulse' be readily accepted?
These all need to be validated by the market.

Upon hearing this, Kim Sung-soo's hesitation vanished, replaced by excitement: "Great! Mr. Chen has considered everything thoroughly!"

We agree to the exclusive distributor model!

We hope to arrange our first order as soon as possible!

As for the taste and the products," he rubbed his hands together, "we believe in Chen Ji's product strength!"

Mango pomelo sago and coconut milk sago pudding featured in the movie are definitely the main dishes!

Our first order should be 50,000 bottles each! No, 100,000 bottles!
Get it to Seoul as soon as possible!

Seeing Kim Sung-soo's eagerness, Chen Bingwen chuckled inwardly, but remained calm on the surface: "Chairman Kim, I suggest we conduct a small-scale market test first regarding the quantity of the initial order."

For example, 10,000 bottles of each type of bottled sugar water and energy drink were distributed for trial sales.

Meanwhile, several representative cinemas and convenience stores in Seoul's core business districts will be selected to conduct joint promotions and tasting events in conjunction with the popularity of the movie "Drunken Master".

After collecting consumer feedback, we then determine the main products to promote and subsequent large-volume orders.

This is safer and less risky.

What do you think?

Although Kim Sung-soo was eager to sign the big deal immediately, he calmed down after listening to Chen Bingwen's clear and logical analysis: "Chairman Chen is indeed a big businessman, he has thought things through very well!"
Okay! We'll do it your way!

For our first trial order, we want both 'Pulse' and bottled sugar water!

We will finalize the specific categories and quantities later.

We will fully cooperate with the promotional activities!

Chen Bingwen smiled and said, "The promotion costs can be shared according to the agreement."

If subsequent cooperation goes smoothly and the scale expands, unit costs will naturally decrease, and profit margins will become more substantial.

Our top priority right now is to let South Korean consumers experience the deliciousness of 'Chen's Dessert' and the energizing effect of 'Pulse' as quickly as possible, and effectively translate the huge buzz generated by 'Drunken Master' into positive product reputation and market share!

“Yes, yes, yes! Chairman Chen is right!” Kim Sung-soo nodded repeatedly, extending his hand proactively. “We’ll go back and prepare a detailed plan immediately! We look forward to cooperating with Chen’s!”

"It's a pleasure to work with you!" Chen Bingwen extended his hand and shook hands firmly with Kim Sung-soo.

At this moment, the South Korean market will be added to Chen Ji Foods' global map.

And it all started with a bowl of unforgettable sweet soup from the movie "Drunken Master".

(End of this chapter)