Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 143 Functional Chewing Gum (Seeking monthly votes, recommendations, and continued reading)
When the meeting adjourned, Chen Bingwen called Fang Wenshan aside for a private talk.

"Director Fang, please stay for a moment."

After everyone else left the meeting room and the door was closed, Chen Bingwen remained silent for a moment before slowly speaking.

"The collective apathy and delays in the marketing department this time are very serious."

Li Ming and Director Ling were developing the market in Japan. As the deputy manager, Wan Yingying should have managed the marketing department well, but now the marketing department has such a systemic problem.

Wan Yingying, as the temporary person in charge, cannot escape blame.

With only him and Vincent Fang left in the conference room, there was no need to hold back some things.

He directly expressed his opinion of Wan Yingying.

What was the state of the marketing department when Li Ming was in charge?
Keen, proactive, and incredibly combative! The Hong Kong market has never seen anything like this before, where counterfeit goods have infiltrated our doorstep without us even realizing it!
Li Ming has been in Japan for less than a month, and such a big mistake has already occurred!

This isn't a matter of ability; it's a matter of attitude and a matter of responsibility!

They are simply incapable of shouldering any responsibility!

Chen Bingwen waved the sales report in his hand, "As the deputy manager of the marketing department, she is the person in charge of the work and is the primary person responsible."

Anomalies were discovered, but were not investigated promptly and thoroughly.

Upon discovering a counterfeit, one should not immediately report it;

When problems arise, they try to downplay them and cover them up!
This kind of sluggishness in the face of crisis and avoidance of responsibility is a major taboo for the marketing department!

If she dares to conceal counterfeit goods today, she'll dare to conceal an even bigger crisis tomorrow!
This kind of trend must not be allowed to continue!

He paused, then said to Fang Wenshan, "Originally, I wanted to train her to be the head of the marketing department, but now we can't keep her."

At the very least, he can no longer remain in the position of head of the marketing department.

Fang Wenshan nodded slowly with a solemn expression: "Mr. Chen, I understand what you mean."

Manager Wan's performance this time was indeed disappointing. The person in charge of the market definitely needs stronger decisiveness and a greater sense of responsibility.

“You should talk to her personally and ask her to transfer to another position, or let her choose to leave the company herself.”

Given Fang Wenshan's age and experience, he is the most suitable person to step forward and dismiss the person.

“Understood, Mr. Chen.” Fang Wenshan immediately understood. “I will handle it properly to ensure a smooth transition and not affect the work of the marketing department.”

What about the marketing department?

“You will be in charge for a few days for now,” Chen Bingwen said decisively. “The key is to change the atmosphere in the marketing department; otherwise, it will be the same no matter who is in charge.”

“Okay, I know what to do!” Fang Wenshan replied.

Chen Bingwen has great confidence in Fang Wenshan's execution ability. "You can handle the specifics. But there's only one principle: act decisively, leave no loose ends, and stabilize the situation at the same time."

Since we can't fire all the marketing staff, we can only make the most of the existing personnel and carry out a tough crackdown and rebuild the atmosphere.

Fang Wenshan looked solemn, nodded slightly, and turned to leave the conference room.

He knew that Chen Bingwen was making an example of one to warn others and thoroughly rectify the internal atmosphere.

Wan Yingying became the first person to be sacrificed in this internal purge.

This also reaffirms Chen Bingwen's bottom line to everyone: ability can be cultivated, but a lack of responsibility and commitment will not be tolerated.

Back in his office, Chen Bingwen stood alone by the window, gazing at the chimney of Chen Ji Guantang Factory in the distance, his brow furrowed, lost in deep thought.

"Although this incident was discovered in time and handled appropriately..."

"But the problems it exposed are far more fatal than those of a few counterfeit workshops."

Chen Ji's current product line is still too thin.

Ultimately, the core profit-generating products are only the "Pulse" energy drinks and the "Chenji" bottled sugar water series.

Sweet soups rely on food culture and specific consumption scenarios, and while their growth is stable, their growth ceiling is clearly visible.

"Pulse" has made great strides thanks to its functionality and innovative formula, but it is ultimately a niche product category.

Although we have a first-mover advantage for now, once the giants react and squeeze in with all their might, the competition in the functional beverage sector will be unimaginably brutal.

His thoughts drifted to the Japanese market, and the rapid counterattack of Liposuction seemed to be right before his eyes.

Moreover, both sugar water and "Pulse" are extremely dependent on distribution channels.

Strong distribution channels lead to strong sales; once the channels fluctuate, or as in this case, counterfeit products infiltrate through the capillary-like distribution channels of general stores, sales will be immediately affected.

It's like a person who has grown in size, but whose life force is still in someone else's hands, leaving them too passive.

Whether in Hong Kong, Singapore, or now Japan and South Korea, Chan Kee's sales channels almost always rely on other people's channels!

Suntory, Coca-Cola, Cathay Group. They are powerful, but also assertive.

To some extent, Chen Ji's lifeline is in the hands of others.

Today they may open the door wide for Chen's business, but tomorrow they may tighten or even close the door due to a shift in interests.

Just like with local distribution channels on Hong Kong Island, once counterfeit products appear, Chan Kee's control becomes incredibly weak.

This feeling of being controlled made Chen Bingwen, who was used to being in control, feel extremely uncomfortable.

The counterfeit incident was just the beginning; what truly alarmed him was the potential risk in Chenji's overall strategy—over-reliance on a single product and external channels.

"Change is necessary!"
Chen Ji cannot remain just a 'dessert shop' and 'functional beverage company' forever.

We must build our own moat—a wider and deeper moat!

He strode back to his desk, picked up his pen, and wrote two words heavily on a blank sheet of paper:
1. Product diversification

2. Channel autonomy

His mind raced as he stared at those two words.

"Product diversification is not about blind expansion."

Based on Chen Ji's current situation

Our core strengths lie in food research and development and brand marketing.

He thought of Zhou Zhiyuan and Isabella's R&D team, "The sweet soup can be upgraded and the product range can be expanded."

The success of 'Pulse' proves our understanding of market demand and our R&D capabilities.

So, what's the next step?

His thoughts began to wander:
Are you drinking tea?
The idea had barely crossed his mind when Chen Bingwen quickly rejected it.

Making ready-to-drink tea now would be too costly in terms of market cultivation, so it's not the best time yet.

He muttered to himself, and without hesitation, drew a big X over the three characters “既饮茶”.

"juice?
"The concept of 'real fresh-pressed juice' requires extremely high standards for the cold chain, including warehousing, transportation, and terminal freezers, resulting in enormous costs."

Moreover, the orange juice and apple juice market has long been divided up by international brands and local manufacturers, making it a bloodbath within a bloodbath.

Mixed fruit juice?

The concept is good, but the cost of consumer awareness and education is too high, making it difficult to achieve significant scale in the short term.

Another cross.

Convenience food? Snacks?
"The leap is too big. The technology, equipment, and channels are all brand new. It's like starting from scratch, which diverts already strained resources and energy."

no."

Another cross.

He slammed his pen on the table in frustration, leaned back heavily in his chair, and rubbed his throbbing temples.

One idea after another was proposed, only to be quickly rejected by myself.

These options are either fiercely competitive red oceans or bottomless pits that deviate from the core track and require huge investments; none of them can accurately solve his most fundamental anxiety.

How can we leverage Chenji's existing core strengths at the lowest cost and fastest speed to build a moat that is difficult for competitors to imitate and overcome?

His gaze unconsciously swept over the corner of the table again.

There were a few pieces of chewing gum that I brought back from Japan.

It was a promotional gift from Lipovitan, mint flavor, nothing special.

His gaze swept across the area unconsciously, his previously agitated thoughts not lingering.

But the next second, his pupils suddenly contracted, and he froze as if struck by an electric current!
Those few unremarkable pieces of chewing gum seemed to emit a dazzling light in his eyes at that moment!
An absurd and sudden thought suddenly became incredibly clear, like a lightning bolt flashing in the darkness, instantly tearing apart all the fog of his thoughts!

"Wait... chewing gum?" He sat up abruptly, grabbed the few pieces of chewing gum, and held them in his palm.

"If we don't put the core functional ingredients of 'Pulse,' such as taurine, caffeine, B vitamins, and glucose, into bottles and make people 'drink' them..."

Instead, could we highly concentrate them into a tiny energy core, then encapsulate it within this gel-like base, allowing people to absorb it through 'chewing'?

He muttered to himself, an irrepressible excitement surging from the depths of his heart.

Functional chewing gum!

"Energy-boosting chewing gum!"

The word exploded in his mind like a thunderclap!
This is not a simple product extension; it's a complete innovation of a product category!

A track that was absolutely nonexistent globally in 1979!

In an instant, all the memory information formed a clear strategic path in his mind.

First, in 1979, the global annual sales of chewing gum were about $60 billion, but it was almost monopolized by giants such as Wrigley and Mars. The products were all mint and fruit flavors, and there was no fundamental innovation for decades!
This is a mature but huge market waiting to be disrupted!

"Functional segmentation, from zero to one, the potential is limitless!" His mind was racing.

"Currently, the market share of functional chewing gum is zero!"
Absolutely zero!

However, with the global fitness craze and rising workplace pressure, the demand for 'portable energy boosters' is real and enormous!

With its first-mover advantage, Chenji can completely define this category and capture consumers' minds!
Over the next ten years, if we can capture just 10% of this $6 billion market, that's $60 million in sales annually!

Secondly, the formula for the Pulsating Instant Powder is readily available and can be used with minor adjustments!

The core production equipment, such as the vacuum sugar boiling pot and cooling tunnel, highly overlaps with the beverage production line!
The only thing needed is a small roller slicer, which costs only tens of thousands of Hong Kong dollars!

It can be put into production in just a few days, with almost zero risk!

Finally, chewing gum is classified as candy worldwide!

Adding functional ingredients such as caffeine is virtually unrestricted, far simpler and faster than applying for any health product approval, and export tariffs are much lower than for beverages.

Moreover, chewing gum can be placed at the cash register, on small shelves, or at the gym front desk, perfectly complementing beverages that take up freezer space!
Not only can it share all of Chen Ji's existing channel network, but it can also offer bundled sales—'Buy a bottle of Gatorade and add a pack of energy-boosting gum, get X yuan off instantly'!
This is a natural growth market, where you can work with yourself!

In addition, its small size, light weight, and high added value mean that its gross profit margin is expected to easily exceed 85%!

The profit per unit transport volume is more than seven times that of beverages! Air freight to the US is profitable!

More importantly, we can immediately register patents for the core formula and preparation process!
This golden track will be locked up for at least twenty years in advance!
Later entrants either can't avoid it or have no choice but to obediently pay patent licensing fees!
This is not just a product, but a patent fortress from which 'seigniorage' can be collected!

The more he thought about it, the more excited he became.

This is more than just a new product.

This is a strategic nuclear weapon tailor-made for Chen Ji!

It can use the lowest cost and the fastest speed to fully utilize all of Chenji's existing resources (technology, raw materials, equipment, channels, and licenses) to create a brand new, uncontested multi-billion dollar market out of thin air.

It can solve the problem of product monopoly, build extremely high barriers through patents, and in turn consolidate and expand channels!

It perfectly and disruptively achieved the two strategic goals of "product diversification" and "channel autonomy" at the same time!
"That's it! It must be it! This is the answer!"

Chen Bingwen stood up, all his hesitation and confusion vanished, replaced by an excitement like discovering a new continent.

Without any further hesitation, he pressed the intercom.

"Ali, please ask Professor Zhou to come to my office! Tell him there's an extremely important technical direction that needs to be discussed immediately."

"Okay, Mr. Chen," came Ali's voice from the microphone.

A few minutes later, there was a knock on the door.

Zhou Zhiyuan, wearing a white coat, pushed open the door and came in.

"Mr. Chen, you were looking for me?"

Zhou Zhiyuan asked, explaining that he was currently focusing all his efforts on the paper cup milk tea project.

"Professor Zhou, please have a seat."

Chen Bingwen's face was filled with barely suppressed excitement.

He personally poured Zhou Zhiyuan a glass of water, then pushed a few ordinary mint gums he had brought back from Japan onto the table in front of him.

Zhou Zhiyuan picked up the chewing gum with some doubt, looked at it, and then asked in confusion, "Isn't this chewing gum?"

"Yes, this is chewing gum I brought back from Japan. It was a free gift when I bought a drink."

Chen Bingwen nodded and explained to Zhou Zhiyuan with a smile, "Professor Zhou, I have an idea that may sound a bit far-fetched, and I need you to give me a preliminary assessment from a technical perspective right away."

"Please speak, Mr. Chen." Zhou Zhiyuan put down his chewing gum and became focused.

He knew that Chen Bingwen wouldn't make baseless accusations.

"The core functional ingredients of our 'Pulse'—taurine, caffeine, B vitamins, and glucose—are water-soluble and must be dissolved in water to be absorbed, right?"

Chen Bingwen began to guide the discussion.

"Basically yes, especially for achieving rapid absorption." Zhou Zhiyuan nodded.

“So, what if we change our approach?” Chen Bingwen continued, “Instead of dissolving them in water for people to ‘drink,’ what if we highly concentrate them into an extremely fine, rapidly soluble powder mixture, then encapsulate them in this gel base, allowing people to quickly absorb them in the mouth through chewing and saliva?”

Upon hearing this, Zhou Zhiyuan's pupils contracted slightly, and he instinctively sat up straight.

He did not immediately deny it, but fell into a brief moment of contemplation.

“Oral mucosal absorption,” he muttered to himself. “Theoretically, certain small molecules and B vitamins can indeed be absorbed to some extent through the oral mucosa, although the efficiency and speed may not be as good as the gastrointestinal tract, but it is not entirely impossible.”

Caffeine is absorbed through a more diverse range of pathways.

A few seconds later, he suddenly looked up and exclaimed in realization, "Mr. Chen, you mean to make a functional chewing gum that can 'refresh you'?"

"Exactly!" Chen Bingwen slammed his hand on the table. "It's 'functional chewing gum'!"
Professor Zhou, what do you think is the biggest technical challenge? Is it possible to overcome it in the short term?

(End of this chapter)