Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 176 Negotiation (Seeking monthly votes, recommendations, and subscriptions!)
Chen Bingwen was naturally unaware of the heated argument between the Wang siblings at the herbal tea shop.

Even knowing this wouldn't change his determination to acquire the Wanglaoji formula and trademark.

In his past life's memories, Wanglaoji, a herbal tea originating from the Daoguang period of the Qing Dynasty, was not only one of the most exported and best-selling natural plant beverages in China, but also carried a unique cultural symbolic meaning.

He must not sit idly by and watch it repeat the same mistakes, gradually lose its way, decline, or even ultimately lose its true nature amidst potential trademark disputes, capital games, and operational difficulties in the future.

Although the mainland market is currently limited by policies and consumption levels, and does not yet have the conditions for large-scale promotion of herbal tea beverages, it is of great significance to bring Wanglaoji under its wing in advance.

He can immediately begin product research and development upgrades, standardized production research, and market education preparation.

Market expansion can begin in areas with existing Chinese communities, such as Hong Kong Island, Southeast Asia, and North America.

The Wanglaoji brand had been sold in these regions in its early years, so it wasn't without a foundation.

Its subsequent decline was not due to a lack of product competitiveness, but rather to complex reasons such as historical turmoil, poor management, and a break in the succession.

Now that we've acquired Wanglaoji's secret recipe and trademark, we can gradually unify these peripheral markets.

Once the mainland market opens up to investment and people's consumption levels rise, then we will enter the mainland market in a big way.

Over the next few days, there was no response from the Wang family, and Chen Bingwen was not in a hurry to urge them.

He simply instructed Ling Peiyi to arrange for someone to keep a close watch on the Wanglaoji store and report any unusual activity immediately.

He knew that being too hasty with such a time-honored brand, which had a deep historical foundation and family sentiment, would backfire and easily cause the other party to feel resentful.

Sometimes, patience is the best strategy.

A few days later, Chen Bingwen hosted a banquet at a club in Central, inviting Li Guowei of China Resources to dinner alone.

Chen Bingwen wanted to learn about the specific progress and plans for China Resources' development of Tin Shui Wai from Li Guowei.

The land Watsons bought with a loan is right next to Tin Shui Wai, and its value is closely related to the development of Tin Shui Wai.

During the meeting, the two first exchanged information about the recent production progress of the Dongguan soda factory and the initial ideas for the research and development of tea beverages.

After a few rounds of drinks and in a relaxed atmosphere, Chan Ping-man seemingly casually steered the conversation toward Tin Shui Wai.

He filled Li Guowei's glass with wine and said calmly, "Manager Li, we recently took over a full inventory of Watsons' assets and discovered that they have a piece of industrial land in Yuen Long, right next to the Tin Shui Wai planning area. It's quite large."

He paused briefly before continuing, "The current situation of this land is a bit awkward. It's a pity to leave it idle, but we're not quite sure how to develop it."

I'd like to ask you if your company has any more specific plans for the overall development of Tin Shui Wai recently?
I can use this information to think about the best course of action for this land. We can't just leave it barren, wasting resources and incurring interest payments.

Li Guowei put down his chopsticks, sighed softly, and said with a hint of helplessness, "Mr. Chen, we're not strangers, so I'll just tell you the truth."

The Tin Shui Wai project is currently a major headache for the company.

He lowered his voice: "You know China Resources, our original business and strength is in trade."

To develop such a large new town, to build a city from scratch, is truly a first for a young woman getting married!
There is a severe shortage of experienced and professional talent.

The original blueprint was drawn up by international experts. It was ambitious and aimed to build a modern new city that could accommodate hundreds of thousands of people.

The ideal was great, but reality was different. When we actually started to push it forward, we found that the complexity and difficulties were far beyond our imagination.

It involves a multitude of tasks, each requiring a huge financial investment and exceptional coordination capabilities, resulting in a very slow pace of progress. Not only is there immense financial pressure, but it also necessitates a large number of professional personnel.

To be honest, the project is currently at a bit of a standstill.

Although Li Guowei phrased it rather subtly and tactfully, Chen Bingwen immediately understood.

China Resources, as the main developer, lacked experience and expanded its operations too much.

The overly idealistic and ambitious initial plan has encountered a harsh reality, and progress is currently difficult. The project is under immense pressure in terms of funding and resources, and has stalled.

This perfectly matches the historical moments in Chen Bingwen's memory.

He understood, and after a moment's thought, he comforted him, "Manager Li, it's perfectly normal to encounter various difficulties and challenges in the early stages of such a large-scale comprehensive development project."

After all, Rome wasn't built in a day.

He paused for a moment, then continued, "I was thinking, perhaps we could try a different development approach?"

This may not be accurate and is for reference only.

Li Guowei asked expectantly, "Mr. Chen, what good ideas do you have? Please speak freely!"

"It's just a preliminary idea," Chen Bingwen said modestly, then added, "I think we could adopt a strategy of 'overall planning, phased implementation, and rolling development'?"

He explained, “The first step is strategic contraction and focusing on the core. We will temporarily set aside the long-term blueprint for those hundreds of thousands of people, and instead concentrate all our human, material, and financial resources to prioritize the creation of a ‘model demonstration zone’.”

We selected one or two areas that were the first to be launched and had the best locations, and thoroughly improved the infrastructure of the core area to a high standard and with high quality.

Roads, water and electricity, communications, schools, medical stations, community centers, and a decent small commercial plaza.

The goal is to allow citizens and investors to see firsthand the tangible, convenient, and high-quality development of a new district, thus quickly building market confidence and making them feel that the area has potential and are willing to come.

"The second step is to use key points to drive overall development and promote continuous progress."

Leveraging the demonstration effect, popularity, and stable cash flow generated by the successful operation of the core demonstration area, these revenues will then be reinvested in the development of the next adjacent area.

Like a snowball rolling downhill, each area matures, is developed, sold, and the recovered funds are reinvested in new developments.

This way, the investment scale at each step is relatively controllable, the financial pressure is small, the risk is low, and each step is taken solidly and steadily.

At this point, Chen Bingwen naturally steered the conversation back to his own land: "For example, the industrial land that Watsons owns over there. If China Resources' overall development strategy can be adjusted according to this idea, Chen's Group can fully cooperate with the overall situation."

At this stage, instead of leaving that land idle, we can invest in it first and build a modern regional warehousing and logistics center.

On the one hand, this can meet our Chen Kee's growing warehousing and distribution needs in the Northwest New Territories.

On the other hand, and more importantly, it can immediately provide strong logistical support for the large-scale development and construction in Tin Shui Wai in the early stages, such as storing building materials and equipment, and serving as a distribution transit station.

This is crucial for infrastructure development in the early stages.

In the next few years, when the surrounding commercial atmosphere matures, the popularity increases, and the land value rises, the land use can be adjusted according to the new regional plan, such as converting it to commercial or residential land for secondary development, thus maximizing its value.

In this way, the land not only avoided being left idle, but also played a crucial role in the early stages of development, becoming a high-quality asset.

Li Guowei listened intently. Chen Bingwen's approach was progressive, pragmatic, and detailed, providing a highly practical measure for the Tin Shui Wai project.

“Overall planning, phased implementation, and rolling development. First, create a core demonstration area and use logistics land to support infrastructure construction.” Li Guowei murmured these keywords repeatedly, and the more he thought about it, the clearer things became. “Chen Sheng!”
Your idea is not just feasible, it's like seeing the light at the end of the tunnel! It perfectly pinpoints our biggest problem right now!
That's it! We can't be greedy and try to do everything at once; we must concentrate our efforts and first make a good example!
With a model in place, everything else becomes much easier! Your idea for a logistics center is the finishing touch; it instantly revitalizes a dead asset and solves a major problem in the early stages of development!

He seemed a little excited, picked up his wine glass and said, "Mr. Chen, when I get back, I will definitely report your idea to the company's main leaders in its entirety and in detail."

I believe the leadership will take this very seriously! If the company's strategy can truly be adjusted in this direction, the way you handled that land will absolutely be a prime example of a win-win situation!

"Manager Li, you flatter me. I was just offering some immature suggestions from the perspective of a partner, hoping they would be helpful to the project."

Chan Ping-man raised his glass and gently clinked it with his, saying very sincerely, "Everyone hopes that the project will be successful and make a real contribution to the future development of Hong Kong Island."

"We will fully support Chen Ji in any future endeavors that require their cooperation."

"Definitely! Definitely!" Li Guowei nodded repeatedly and drank the wine in his glass in one gulp.

After seeing Li Guowei off, Chen Bingwen stood at the entrance of the clubhouse and let out a slight sigh of relief.

This is just the first step in promoting the transformation of the Tin Shui Wai development model.

He knew that there would inevitably be some debate and negotiation within China Resources, but he believed that his proposal had a high probability of being adopted due to its strong feasibility and low risk.

Once the "rolling development" model is established, the value of his now seemingly remote industrial land will quickly become apparent.

The early-established warehousing and logistics center can not only generate stable rental income, but also be deeply integrated with the development process of Chan Kee and Tin Shui Wai projects, laying a solid foundation for obtaining more business opportunities in the future.

A few days later, Chen Bingwen was processing documents in his office when the phone on his desk rang.

It was Ling Peiyi who called from the inside.

"Mr. Chen, Ms. Wang Jianyi from Wanglaoji just called me."

She said that after discussing with her family, they agreed in principle to conduct in-depth discussions on cooperation regarding the herbal tea recipe and trademark.

She asked when would be a convenient time for you, saying that she and her brother, Wang Jianquan, could come over for a visit, or we could go to their shop to discuss things in detail.

Chen Bingwen's lips curled up slightly; the fish had finally taken the bait.

It was even faster than he had expected.

In his previous life, Chen Hongdao spent four or five years finally persuading Wang Jianyi to obtain the Wanglaoji secret formula and trademark.

Now, less than half a month later, Wang Jianyi's attitude has softened, which shows that their current situation is indeed somewhat difficult.

"You reply to Ms. Wang, thanking them for their trust."

Let's go and visit them; it will show more sincerity.

The time is set for 3 PM tomorrow. You'll come with me.

Chen Bingwen gave instructions.

"Okay, Mr. Chen. I'll arrange it right away."

The next afternoon, Chen Bingwen and Ling Peiyi appeared on time at the Wanglaoji herbal tea shop on Aberdeen Street.

Compared to last time, the shop seemed to have been specially cleaned and appeared much tidier.

Wang Jianyi stood in the store with a man in his thirties who had a similar appearance to hers but with a slightly furrowed brow; presumably, this was her brother, Wang Jianquan.

After a brief exchange of pleasantries and taking their seats, Wang Jianquan spoke first: "Boss Chen, my sister told me about your proposal."

To be honest, our Wang family herbal tea has been passed down for over a hundred years; it's an ancestral business. If it weren't for the current severe difficulties in running the business, we wouldn't have considered partnering with outsiders.

Chen Bingwen nodded, indicating his understanding: "Mr. Wang, Ms. Wang, I completely understand your feelings about your ancestral property."

Because I know the value and history of Wanglaoji, I don't want to see it buried because of temporary business difficulties.

My idea isn't simply a transaction, but rather a collaboration in a way that better protects the brand's heritage and allows it to flourish again.

Wang Jianyi added softly, "Mr. Chen, what we care about most is whether the quality and original flavor of the herbal tea can be guaranteed if we really cooperate."

This recipe was passed down from my great-uncle; we can't ruin its reputation.

"Please rest assured on this point," Chen Bingwen said with great certainty. "We pursue large-scale, standardized production, but this does not mean compromising quality."

On the contrary, we will establish a dedicated R&D team, hiring food experts and master chefs to conduct in-depth research on the formula using modern technology. The goal is to solve the problems of unstable production, large batch differences, and difficulty in preservation and transportation caused by manual cooking, while absolutely guaranteeing or even optimizing the core taste and efficacy.

What we want to do is to make sure that more people, whether in Hong Kong, Southeast Asia, or Europe and America, can enjoy the same authentic Wanglaoji.

He then presented a pre-prepared cooperation plan: "Regarding the specific cooperation methods, I can provide two options for your reference: First, Chenji Food will buy out the formula and trademark rights of Wanglaoji in one go, and we will hire you two as technical consultants to be responsible for quality supervision and inheritance guidance, and provide you with generous compensation."
Secondly, we will jointly establish a new company, with you contributing your formula and trademark rights as equity, to jointly operate the business and share the profits.

After explaining the cooperation plan, Chen Bingwen said frankly, "Both of these plans have their advantages and disadvantages. You two can take your time to consider them and discuss them with your families."

Regardless of the method, I can promise: First, the Wanglaoji brand will never be shelved or misused.

Second, the core quality of the product must be the top priority.

Third, the Wang family's heritage and spirit surrounding Wanglaoji will be fully respected and reflected in future brand promotion.

"If the first cooperation plan is adopted, how much is Chen Ji prepared to pay for the buyout, and how much can we be paid as technical consultants?"

Compared to joint investment, Wang Jianquan is clearly more interested in a one-time buyout.

Chen Bingwen was not surprised by Wang Jianquan's directness.

He glanced at Ling Peiyi, who nodded knowingly and took out a simple draft letter of intent from her briefcase, but did not immediately give specific figures.

"Mr. Wang, both the buyout price and the consultant's salary require professional evaluation."

Chen Bingwen said with a smile, "The buyout price requires a comprehensive assessment of the historical reputation of the 'Wanglaoji' trademark, its retention in the memory of Chinese communities in Hong Kong, Macau and Southeast Asia, and the uniqueness of the formula."

The compensation for technical consultants depends on the time they invest, the depth of their technical guidance, and whether it involves subsequent product improvements.

He paused briefly to allow Wang Jianquan and his sister some time to process the information, and then provided a more concrete framework: "For now, we can first determine a general scope."

If the final evaluation selects a buyout option, Chen Ji's initial intended buyout price will fluctuate around this figure.

Chen Bingwen held out his hand, raised his index finger, and said, "One million Hong Kong dollars!"

(End of this chapter)