Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 61 Nanhua Trade (Seeking monthly votes and recommendations to continue reading!)

Accompanied by Ling Pei-yee and Ko Chun-hoi, Lam Man-hung entered the production area of ​​the Kwun Tong Food Factory.

Upon entering the workshop, a sweet aroma of fresh fruit and coconut milk wafted over, replacing the expected industrial smell.

Lin Wenxiong was invigorated; this was quite different from the many food factories he had visited.

"Mr. Lin, this way please." Gao Zhenhai led the way, his voice loud and clear. "This is our raw material pretreatment area."

As you can see, all the mangoes and grapefruits arrive fresh daily and are manually selected to ensure they are free from rot and spoilage.

Lin Wenxiong watched as the workers, dressed in neat work clothes, wearing masks and gloves, skillfully peeled and pitted the mangoes, removing the pulp, while the grapefruit was carefully peeled to extract its plump segments.

The processed fruit pulp was quickly transferred to the cold storage area.

"To ensure the best flavor, our mango puree and grapefruit pieces are processed and used immediately, never left overnight."

Ling Peiyi added from the side.

Next, they arrived at the core area, the bottled sugar water production line.

A huge stainless steel cooking pot was steaming, filled with a bubbling golden liquid, and the rich aroma of mango was even more pronounced.

"This is our cooking and mixing area," Gao Zhenhai said, pointing to a huge stainless steel container. "We strictly follow the recipe proportions to mix and cook fresh mango puree, coconut milk, sago, grapefruit pieces, etc., and then sterilize them at high temperature."

Lin Wenxiong noticed that workers recorded the temperature, time, and amount of ingredients at each stage, and clear operating procedures and quality control standards were posted on the wall.

"After sterilization, it enters the vacuum degassing tank." Gao Zhenhai pointed to the next device, "to remove dissolved air and prevent oxidation from affecting the flavor and shelf life."

After a period of practice, Gao Zhenhai has become very familiar with all the parameters of this Italian hot filling production line.

Then, they came to the most crucial part: the hot filling line.

Lin Wenxiong's gaze was immediately drawn to it.

The piping hot mango pomelo sago was pumped into a preheated transparent glass bottle, with the liquid level precisely controlled.

Next, the aluminum bottle cap, which had been preheated to 85°C and had a unique diamond-shaped anti-slip texture on the side, was precisely snapped onto the bottle mouth by an automatic spinning machine. The high temperature instantly melted the sealing material, completing the aseptic seal.

"Snap! Snap! Snap!" The slight sealing sound was clearly audible amidst the machine's operation.

The sealed bottles are placed in a cooling water tank for rapid cooling.

Finally, during the labeling process, labels bearing the prominent "Chen Ji" logo were precisely affixed to the bottles.

The entire process was efficient, smooth, and highly automated, with key steps monitored by humans. Lin Wenxiong watched intently, secretly astonished.

He had thought Chen Ji was just a local brand that started with craftsmanship, but he was surprised to find that the production process was so modern and standardized, and the quality control was so meticulous.

"Mr. Lin, look, this is our core filling line," Gao Zhenhai proudly introduced. "Sacmi's hot filling equipment is imported from Italy and has high stability."

Combined with our unique process and strict quality control, we ensure that every bottle of sweet soup meets optimal taste and safety standards.

"Incredible! This is truly an eye-opener!" Lin Wenxiong exclaimed sincerely. "Chen Ji's production management and quality control far exceeded my expectations!"

This is more standardized and advanced than the production lines in many factories in Singapore and Malaysia!
The bottle cap design is particularly ingenious, as it is both easy to open and ensures a tight seal.

No wonder it tastes so good!

He pointed to the finished product that had just come out of the cooling tank: "The bottle design is simple and elegant, the 'Chen Ji' logo is eye-catching, the product name is clear, and it is highly recognizable on the shelf."

Ling Peiyi chimed in at the opportune moment: "Yes, Mr. Lin."

We place great emphasis on brand image and user experience, striving for excellence in every step, from raw materials to finished products.

This is also why we were able to quickly open up the market in Hong Kong Island.

After visiting the production line, Gao Zhenhai then showed Lin Wenxiong the raw material warehouse and the finished product inspection area.

Inside the warehouse, coconut milk from Thailand and carefully selected mango ingredients are neatly stacked and clearly labeled.

Throughout the visit, Lin Wenxiong observed very carefully and asked very professional questions.

He praised Chenji's modern production processes, strict quality control standards, and unique product design.

Originally attracted by the product's taste, he is now more confident in becoming a distributor of Chen's Dessert after witnessing the strength behind it. He also realizes that Chen Bingwen is no ordinary person and the terms of cooperation are unlikely to be lenient.

After the tour, they returned to the conference room. Lin Wenxiong's excitement hadn't faded.

"Mr. Chen, Director Ling, Factory Manager Gao, thank you so much for the arrangements! This visit has given me a completely new understanding of Chen Ji's strength!"

Lin Wenxiong sincerely said, "Your company's production management, quality control, and product design are all first-class!"
Especially the bottled mango pomelo sago, from its taste and packaging to the production guarantee behind it, perfectly meets the needs of the Singapore market!
I am full of confidence in the prospects of our cooperation!

He leaned forward slightly and said eagerly, "Mr. Chen, our Nanhua Trading has been deeply rooted in Singapore for many years, and our channels cover all major supermarkets, convenience stores and high-end hotels across the island."

As long as your company can guarantee the supply, I have absolute confidence that Chen Kee bottled desserts, especially this Mango Pomelo Sago, will become the leader in the Singapore ready-to-drink dessert market!
We are very keen to secure the exclusive distribution rights for Singapore, Malaysia, and Indonesia!

Looking into Lin Wenxiong's eager eyes and listening to his repeated insistence on the exclusive agency rights, Chen Bingwen had already formed a preliminary judgment: this Mr. Lin was serious, his channel strength was genuine, and he was impressed by Chen Ji's production capabilities.

The next step is to leverage this enthusiasm to secure the best possible cooperation terms for Chen Ji.

He smiled slightly and said calmly, "We have felt Mr. Lin's sincerity and confidence."

We also highly value the strength of Nanhua Trading.

The markets of Singapore, Malaysia, and Indonesia are indeed an important step in Chen Kee's internationalization.

Regarding the specific details of the cooperation, such as the scope of agency, initial order quantity, pricing structure, marketing responsibilities, and the definition and duration of this 'exclusivity,' we still need to sit down and discuss them in detail.

He emphasized the word "exclusive" and looked calmly at Lin Wenxiong.

Lin Wenxiong's smile remained, but his expression became even more focused.

He understood that the real negotiations had begun.

Chen Bingwen did not immediately agree to the "exclusivity" offer, but instead raised a series of key points that needed to be clarified, which is the behavior of a mature businessman.

“Mr. Chen is right! The details of the cooperation must be clarified!” Lin Wenxiong laughed heartily and sat up straighter. “Exclusive agency rights are the core demand of Nanhua Trading.”

Although the Singapore market is small, it is highly competitive, and huge investments are required in channel development and brand building.

Without exclusive protection, if we invest heavily in developing the market and it becomes too competitive, other small distributors will rush in, dumping their products at low prices, or even engaging in unauthorized sales. We'll be the ones who suffer losses. Mr. Chen, you're also in the business world; you should understand this.

He paused, observing Chen Bingwen's expression, and continued, "Of course, what we understand as exclusive is an exclusive agency right."

During the contract period, all sales channels for Chen Ji bottled syrup in the Singapore-Malaysia-Indonesia market, including but not limited to supermarkets, convenience stores, hotels, and catering wholesalers, can only be conducted through Nan Hua Trading. We guarantee to do our utmost to promote the Chen Ji brand and achieve the sales targets agreed upon by both parties. As for the timeframe…”

Lin Wenxiong held up three fingers: "We hope to sign a three-year contract. This will give us enough time to cultivate the market and establish solid channels and brand recognition."

Chen Bingwen listened quietly without offering any opinion.

three years?

They have quite an appetite.

He smiled slightly, not directly addressing the question about the timeframe, but instead posed another question: "I admire Mr. Lin's confidence in the markets of Singapore, Malaysia, and Indonesia."

We can consider exclusive distribution rights.

However, the prerequisite is that Nanhua Trading must come up with a practical and feasible marketing plan and sales target commitment.

We cannot guarantee market success with just a contract.

In addition, the initial order volume is also very important, as it relates to our production schedule and our confidence.

"The initial order quantity?" Lin Wenxiong was prepared and answered without hesitation, "150,000 bottles! 100,000 bottles of mango pomelo sago, 40,000 bottles of coconut milk sago, and 10,000 bottles of tangerine peel red bean soup!"

This is a conservative estimate based on our market research and channel feedback!

As long as distribution is adequate and promotion is effective, the sales volume will only increase, not decrease!

150,000 bottles! This number moved Ling Peiyi and Gao Zhenhai, who were standing next to him.

Chen Bingwen's smile remained unchanged, but he was silently calculating in his mind.

"Mango pomelo sago has the highest cost, as the raw materials mango, coconut milk, and grapefruit are not cheap. Add to that the cost of bottles, caps, labor, and logistics, and the cost per bottle is close to HK$1.5. Coconut milk sago is the next most expensive, at about HK$1.1. Red bean paste is the cheapest, at about HK$0.4."

"Even with the biggest discount, the gross profit from 150,000 bottles would still be HK$60,000 to HK$70,000!"

"But the current daily production capacity is stable at 2.6 bottles, and the maximum sprint can reach close to 4."

150,000 bottles, which is equivalent to Chen Ji's total production for nearly four days!
Although production capacity is ramping up, exporting 150,000 bottles at once will put considerable pressure on the supply of the local market on Hong Kong Island.

If we want to take on this business, we can only tap into our own potential and bring full capacity of the hot filling production line to the forefront.

Having made up his mind, he slowly said, "Boss Lin, 150,000 bottles is no small sum."

In particular, the agency coverage you just mentioned includes Singapore, Malaysia, and Indonesia.

These three markets differ in population, consumption habits, and distribution channels.

Did Mr. Lin take into full account the consumption habits of diverse ethnic groups when formulating his product mix?

150,000 bottles is no small number; if the proportion becomes unbalanced, the risk of unsold stock could be significant.

Lin Wenxiong's initial order for 150,000 bottles was certainly good news for Chen Bingwen.

The huge order volume means considerable sales and profits, and is also a direct driving force for ramping up production capacity. It can also be the first step for Chenji's internationalization.

However, behind the huge orders lie enormous risks.

If Lin Wenxiong was simply blinded by the product's taste and initial enthusiasm, and became blindly optimistic...

The actual situation of consumer groups in Singapore, Malaysia, and Indonesia is not taken into account, nor are the differences in preferences among different ethnic groups.

Therefore, even the best products can become slow-moving goods due to imbalanced ingredients or misaligned distribution channels.

Ultimately, the stockpiled inventory in the warehouse not only undermined Lin Wenxiong's confidence but also damaged Chen Ji's brand reputation and its future potential for expanding into the Southeast Asian market.

Back then, Huang Bo's line, "Brand! Baleno!", directly nailed a once-glorious Hong Kong-funded brand to the pillar of shame as cheap and outdated.

Chen Bingwen vividly remembers this case.

Once a brand image is damaged, the cost of repairing it is high, and it may even be irreversible.

Chan Kee Dessert, a newly established brand in Hong Kong Island, is at a crucial stage of growth.

In the Singapore market, due to distributors' over-expansion of goods and unsold products, Chen Kee bottled sweet soup has appeared in cheap discount stores on the streets.

Or, if the taste deteriorates due to prolonged storage, leaving consumers with the impression that Chen Ji is "not good to drink" and "worthless" from their first encounter with the brand, the damage to the brand would be devastating.

Chan Bing-man would never allow his hard-earned brand to stumble at the very first step outside of Hong Kong.

Therefore, he had to make Lin Wenxiong understand in advance.

Enthusiasm cannot replace market research, and boldness cannot mask potential risks.

His statement that "150,000 bottles is no small number, and if the proportion is unbalanced, the risk of unsold inventory is not small" was not alarmist, but a calm reminder based on common business sense and painful lessons.

He not only wants to protect his own profits, but also to safeguard the brand value of Chenji.

Lin Wenxiong's smile faded slightly. He sensed the weight in Chen Bingwen's words and understood how much Chen Bingwen valued the brand's reputation.

He pondered for a moment and said seriously, "In that case, Mr. Chen, for our first order, we will focus on Singapore!"
All 150,000 bottles were released into the Singapore market!
I will readjust the proportions of mango pomelo sago, coconut milk sago, and red bean soup with tangerine peel based on more detailed consumer research data in Singapore to ensure that they better suit the taste preferences of Singapore's diverse population!
In the Malaysian and Indonesian markets, we will temporarily postpone large-scale distribution and instead conduct small-scale, multi-batch trial sales to understand the consumption preferences and acceptance levels of different regions and ethnic groups before developing a detailed promotion plan!
What do you think? We at Nan Hua Trading are determined to make Chen Ji's brand a resounding success in Singapore!

"It's excellent that Mr. Lin was able to adjust his thinking in time," Chen Bingwen praised. "Focusing on Singapore, taking small but quick steps, and proceeding steadily is the right way to explore new markets."

150,000 bottles focused on Singapore – this volume is acceptable to us.

In addition, the pilot sales plans for Malaysia and Indonesia should also be included in the proposal. We need to see your initial strategies and risk assessments for these two markets.

Remember, quality and brand image are our lifeline.

"No problem!" Lin Wenxiong nodded emphatically. "Don't worry, Mr. Chen!"

I'll go back and immediately re-analyze the data and adjust the plan!

We will definitely provide you with a detailed plan based on in-depth analysis of the Singapore market! Nan Hua Trading will live up to your expectations and make Chen Ji Dessert a premium product with a strong reputation in Singapore, Malaysia, and Indonesia!

(End of this chapter)