Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 170 Planning Ahead (Seeking monthly votes, recommendations, and subscriptions!)
Inside the China Resources Company's conference room, General Manager Zhang Jianhua's question drew everyone's attention to Li Guowei.

After a moment's thought, Li Guowei replied, "President Zhang, I believe that although Chen Bingwen is young, his vision and courage far surpass those of his peers."

His acquisition of Watsons was not a simple capital operation or a pursuit of temporary fame.

Judging from his previous interactions and how he handled this situation, he has a very clear vision for industrial development.

He paused for a moment, then continued, "When I took over that county-run beverage factory in Dongguan last time, he discussed with me the country's abundant natural resources."

He specifically mentioned tea, believing that the quality of tea from mainland China is world-class, but its deep processing and branding are insufficient.

He intends to leverage Chenji's R&D capabilities and market channels to develop domestic tea resources, processing them into easy-to-drink tea beverages, targeting not only the domestic market but also hoping to export them to generate foreign exchange in the future.

“Your judgment is basically the same as mine,” Zhang Jianhua said. “This young man, Chen Bingwen, has a long-term vision and does things in a methodical way.”

He handled the acquisition of Watsons brilliantly, achieving not only commercial success but also setting a positive political example.

He paused for a moment, then said to everyone present, "Chen's has made a good start."

This proves that Chinese-owned enterprises are fully capable and have the courage to take over and manage those long-established British-owned enterprises.

This is of great significance for the smooth transition of Hong Kong's economy in the future.

We need to study this case carefully and strive to encourage more capable Chinese-owned enterprises to participate.

Everyone agreed.

Zhang Jianhua concluded by saying to Li Guowei, "Your import department should continue to maintain close communication with Chenji and provide necessary support and guidance, provided it complies with policy requirements."

"Understood, Mr. Zhang," Li Guowei replied solemnly.

……

Just as Chen Bingwen had predicted, the public opinion storm triggered by the acquisition of Watsons quickly subsided with the airing of the emotionally resonant advertisement, the endorsement of a retired pharmacist, and the positive coverage from newspapers such as Sing Tao Daily and Kung Shui Daily.

Public attention shifted from the “acquisition of a British-owned business” to the “rise of Chinese capital and the revival of old businesses”, and Chen Ji’s reputation rose rather than fell.

That day, Chen Bingwen was reviewing Ling Peiyi's preliminary plan for the integration of Watsons' channels in his office on the top floor of the Weiye Building when his secretary announced that Mr. Li Guowei from China Resources was coming to visit.

Chen Bingwen immediately stood up to greet him: "Manager Li, welcome, welcome!"

Li Guowei smiled and cupped his hands in greeting: "Mr. Chen, congratulations! Not only did you successfully acquire Watsons this time, but you also skillfully resolved the public opinion crisis. Now you are the undisputed leader among Hong Kong's Chinese businessmen!"

As he spoke, he gave a thumbs-up, "You set a great example by acquiring a century-old British business; it's of great significance!"

Chen Bingwen smiled and invited Li Guowei to sit down in the reception area, saying humbly, "Manager Li, you flatter me. I just did what I was supposed to do."

The main reason was that Hutchison Whampoa was interested in selling, and we just happened to be the ones taking over. Speaking of which, I should thank China Resources for hosting the reception, which gave me the opportunity to acquire Watsons.

The two exchanged a few pleasantries and talked about recent business developments in Hong Kong.

Then, Chen Bingwen casually steered the conversation to a news report he had just seen: "Manager Li, I recently noticed a report that Coca-Cola has been approved to enter the mainland market and sell to foreigners in Friendship Stores and hotels catering to foreigners?"

"That's true." Li Guowei nodded. "The country hopes to earn more foreign exchange through this method."

Chen Bingwen looked at Li Guowei and said very sincerely, "Manager Li, you see, our Chenji bottled sugar water and 'Pulse' energy drink are doing quite well in overseas markets."

Our products also have the potential to generate foreign exchange through exports.

He paused briefly, and seeing that Li Guowei showed no unusual expression, but instead seemed to be listening attentively, he continued, "I was thinking, could Chenji also refer to Coca-Cola's model and try selling in some foreign hotels, tourist attractions and Friendship Stores in China?"
Even if it is initially sold only to foreign guests and overseas Chinese, it can still contribute to increasing the country's foreign exchange earnings.

This is a win-win situation for both the country and businesses, so why not do it?

After listening, Li Guowei did not answer immediately, but began to think about it seriously.

After a while, he spoke up: "Mr. Chen, your idea is very constructive."

Coca-Cola has indeed made an exception, and theoretically other food and beverages that meet the standards can also follow suit.

However, this matter involves multiple aspects such as import permits, sanitary inspections, and sales channels, which is not something China Resources can decide on its own.

He looked at Chen Bingwen and said, "Here's what I'll do. When I get back, I'll immediately report your idea and request to the company leaders and the relevant comrades in the Ministry of Commerce and the Ministry of Light Industry."

Let me see what you think of the comments above, and then I'll give you an answer. How about that?

Chen Bingwen felt reassured, knowing that Li Guowei's willingness to push forward meant that half the battle was won. He immediately expressed his gratitude: "That's great! Then I'll trouble Manager Li to put in the effort! Whether it succeeds or not, Chen Ji will thank you for your help."

"It's your job."

Li Guowei waved his hand, "It's all for economic development."

Chen Bingwen's decision to make this request to Li Guowei at this time was not a spur-of-the-moment thing.

At the beginning of the year, Coca-Cola successfully entered the mainland market through a partnership with COFCO Group.

At that time, Coca-Cola's unique medicinal taste and price of 45 cents a bottle were not accepted or recognized by ordinary mainland consumers, and its sales channels were strictly limited to Friendship Stores, hotels catering to foreign guests and overseas Chinese.

But Chen Bingwen was well aware that Coca-Cola's strategic intention in this move was not simply for sales volume and profit.

Its core objective is to conduct a long-term market education and brand awareness implantation. Through continuous exposure in high-end international venues, Coca-Cola is subtly reaching its most influential and powerful consumers.

Foreigners, returned overseas Chinese, and a few well-connected people from the mainland are instilling in them the concept that Coca-Cola represents a modern, fashionable, and high-end Western beverage.

This "high and mighty" image has laid a solid foundation for brand recognition, enabling the company to penetrate the market on a large scale and quickly seize market share once foreign direct investment in factories is permitted.

By then, it will no longer be a "foreign gadget" that ordinary people can't afford, but a "brand name product" that many people have already heard of and long to try.

Chen Bingwen does not want Chen Ji to be absent from this upcoming beverage market revolution, and he is even less willing to see the mainland market completely dominated by a few international giants in the future.

He had to reserve a spot in advance for Chen Ji's products.

After seeing Li Guowei off, Chen Bingwen asked his secretary to invite Ling Peiyi to his office.

A few minutes later, Ling Peiyi knocked on the door and came in.

"Chen Sheng, you were looking for me?"

"Please sit down, Director Ling."

Chen Bingwen pointed to the chair opposite him and praised, "You have done a very good job in expanding into the Singapore and Japanese markets."

Especially in the Japanese market, the fact that we were able to establish a foothold in such a short time has exceeded my expectations.

Ling Peiyi smiled, not being overly modest: "It's because you, Mr. Chen, set a good strategy; we were just executing it. Besides, the team worked very hard."

"A merit is a merit." Chen Bingwen waved his hand and said with a smile, "It is precisely because of your outstanding performance that I decided to entrust you with the heavy responsibility of integrating Watsons this time."

At this point, his expression became serious: "First, I believe in your abilities; second, this integration is crucial to the company's foundation for the next few years."

Do it well, and the position of company vice president is ready for you.

Ling Peiyi's eyes flickered slightly, and she immediately replied, "I understand, Mr. Chen. Please give your instructions."

Chen Bingwen nodded and continued, "The goal of integrating Watsons is very clear: First, to stabilize morale and ensure that Watsons' original business does not decline significantly."

Second, we need to tap into its potential, especially its distilled water plant and soft drink production line, and optimize them as soon as possible to improve efficiency.

Third, and most importantly, is channel integration.

We need to effectively integrate Watsons' network of over seventy stores with our existing Chen Kee stores, convenience stores, and mobile sales points to avoid internal friction and create synergy.

Ling Peiyi nodded and quickly took out her notebook to jot down the key points.

Chen Bingwen continued, "I have some ideas on the specifics of the operation, which you can refer to."

For existing employees, especially those in the middle and lower levels, the priority should be stability. Those who are qualified should be retained, and those who perform well will also have opportunities for promotion.

Regarding management, we will observe them; those who are capable and willing to integrate into the new team are welcome.

Those with outdated ideas or dissenting opinions should be decisively adjusted.

The compensation system can be gradually transitioned, but ultimately it must align with Chenji's performance-based system.

These ideas are Chen Bingwen's integration of his previous experience in mergers and acquisitions, aiming to minimize cultural conflicts and talent loss that are common in corporate mergers.

Ling Peiyi listened and nodded, a thoughtful look in her eyes.

"In addition," Chen Bingwen changed the subject, "the new project led by Professor Zhou in the R&D department, electrolyte water, is progressing well."

This stuff is closely related to exercise, sweating, and hydration.

Once Watsons' channel integration is running smoothly, you should start planning the product's launch strategy in advance.

In particular, how to integrate marketing efforts with sporting events we might sponsor, such as the Macau Grand Prix, which is currently under negotiation.

"I've reviewed the project information for electrolyte water, and it has great market potential."

I will follow up in advance and arrange Watsons' production line accordingly.

Ling Peiyi closed her notebook and said confidently, "As for Watsons, I will definitely complete the integration as soon as possible."

"Very good." Chen Bingwen nodded in satisfaction. "Go ahead and implement the specific integration plan. If you encounter any obstacles, come to me directly."

In addition, some management personnel who have taken over from Hutchison Whampoa, such as Manager Xu Shiwen, have good business skills and have changed their mindset. You can appropriately give them more responsibility and let them assist you.

“Understood, I will cooperate well with Manager Xu.” Ling Peiyi noted down the key points, stood up and said, “Then Mr. Chen, if there’s nothing else, I’ll go and refine the plan.”

"Go."

After Ling Pei-yee left, Chen Bing-wen went on to process several more documents.

Just then, the phone on the table rang.

Chen Bingwen picked up the receiver, and Cheng Long's cheerful yet somewhat mysterious voice came through: "Mr. Chen!"
Are you free tonight?
Want to grab a bite? I've invited a friend; I'm sure you'd like to meet them.

(End of this chapter)