Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 84 Negotiation (Third update of 10,000 words per day! Please vote with your monthly tickets and recommendations!)

Pepsi, one of the world's largest beverage companies, was a behemoth to Chen Ji at that time in terms of size, resources and influence.

Its proactive approach is both an affirmation and a test.

how to respond?

Is it a war?

Is it and?

How can we leverage this contact to secure the greatest possible benefit for Chen's company?
“Mr. Chen,” Ling Peiyi broke the silence first, “the Pepsi vice president is personally leading the team, it’s a very high-level event.”

They're clearly serious.

Vincent Fang analyzed: "Pepsi's choice to come to Hong Kong secretly, rather than to exert pressure or file a lawsuit, shows that they prefer cooperation to confrontation."

Patent licensing, and even strategic partnerships, are their most likely demands.

This is a risk for us, but also an opportunity!
If a partnership can be reached with Pepsi, both the licensing fees and distribution channels will open a door to the global market for Chenji!

Zhou Zhiyuan frowned slightly: "But the premise of cooperation is that we must safeguard our core patents and brand independence."

A giant like Pepsi doesn't have a small appetite.

Chen Bingwen leaned back in his chair, his mind racing.

Pepsi's actions were faster and more direct than he had anticipated.

This precisely demonstrates the value of bottle cap patents!
Pepsi's choice to make secret contact indicates that they did not want to alert Coca-Cola and wanted to gain the upper hand.

This gave Chen Ji a perfect opportunity to play both sides!
Coca-Cola is observing, while Pepsi is taking action.

Chen Ji could easily take advantage of the competition between these two giants and reap the benefits!
The key lies in how to set the bottom line in negotiations, how to demonstrate your bargaining power, and how to control the pace of the negotiation!
“Mr. Fang,” Chen Bingwen looked at Fang Wenshan, “Contact lawyer Robert and ask him to provide detailed background information on the core members of the Pepsi delegation before the Pepsi team arrives in Hong Kong.”

Know yourself and know your enemy, and you will never be defeated!

"No problem, Mr. Chen!"
"I'll contact Robert right away!" Fang Wenshan's spirits lifted.

Having arranged all this, Chen Bingwen looked at everyone present and said, "Pepsi wants our patent? Fine."

But it depends on what they can offer in exchange.

Patent licensing fees? Negotiable, but the price can't be low!

Strategic cooperation? We welcome that too, but Chen Ji's brand independence and core interests are inviolable!
Channel sharing? We'd love to, but it must be a deep, mutually beneficial partnership!

He paused, then emphasized, "This meeting is not about us begging Pepsi to cooperate."

Instead, Pepsi recognized our value and proactively approached us!

What we need to do is make them clearly see the value of Chen Ji's bottle cap patent!
Let them understand that partnering with us is the best option for them to open up new markets and enhance their competitiveness!

Remember, the initiative is in our hands!

three days later.

Chen Bingwen was in his office reviewing the materials on the Pepsi team members that Fang Wenshan had brought.

Just then, the internal telephone on the table rang.

“Mr. Chen,” the receptionist’s voice came through, “a man from the Peninsula Hotel who claims to be Mr. Ross’s assistant called and wants to speak with you.”

coming!

Chen Bingwen and Fang Wenshan exchanged a knowing glance.

Pepsi is more urgent than expected.

"Bring them in," Chen Bingwen said calmly.

After the call was transferred, a male voice with a slightly strange Chinese accent spoke up: "Hello, Mr. Chen Bingwen? I am James Chen, Mr. David Ross's executive assistant."

I'm sorry to bother you.

"Hello, Assistant Chen," Chen Bingwen replied politely but firmly.

Following that, James Chen gave a brief introduction of his own identity and that of David Ross over the phone.

Then, he got straight to the point:

"Mr. Chen. Mr. David Ross asked me to convey his sincere greetings to you."

Our Pepsi team has made a low-key visit to Hong Kong Island with the utmost sincerity, hoping to have an in-depth discussion with you regarding your company's innovative diamond-shaped anti-slip bottle cap technology.

James Chen's words were impeccable: "Mr. Ross greatly admires your business acumen and Chen's Food's innovative capabilities, and believes this is the starting point for a dialogue that can create a win-win situation."

He greatly valued this opportunity to meet.

"Therefore, Mr. Ross has taken the liberty of entrusting me to formally extend an invitation to you to meet."

I wonder if Mr. Chen's schedule is convenient at any time and place so that we can meet?
Mr. Ross and our team are ready to fully cooperate with your time and location arrangements.

A slight smile appeared on Chen Bingwen's lips.

Robert's information, Pepsi's rapid pace of invitation, and the respect and concessions implied in the other party's wording all confirmed his judgment: Chen Ji's bargaining chips were substantial!
He didn't answer immediately, but deliberately let the other end of the phone line be silent for a few seconds.

Then he spoke:
"Please convey to Mr. Ross that I am also looking forward to this meeting."

"Since you are so sincere and have come from afar," he paused before slowly stating his decision:
"The time is set for 3 p.m. tomorrow."

The meeting room at the Peninsula Hotel is a good choice.

Our representatives included myself, Ling Peiyi, Operations Director of Chen Ji Foods, and Mr. Fang Wenshan, who is in charge of patent matters.

“Three o’clock this afternoon, Peninsula Hotel conference area, okay!” James Chen quickly replied. “Mr. Ross will be very pleased to receive this confirmation!”

Our team will be waiting for Mr. Chen and his party here.

Please feel free to contact me if there are any details that need to be discussed.

"Okay," Chen Bingwen replied, ending the call.

After hanging up the phone, Fang Wenshan looked at Chen Bingwen excitedly, "Mr. Chen, Pepsi's attitude suggests that their evaluation results highly recognize the value of your patent!"

Chen Bingwen nodded, "Let's see what price Pepsi will offer tomorrow at 3 PM!"

Time passed quickly and it was the next afternoon.

The Peninsula Hotel, a luxurious and highly private meeting room on the top floor.

The huge floor-to-ceiling windows offer a panoramic view of Victoria Harbour, and the sky after the rain is a clear, deep blue.

Chen Bingwen wore a well-tailored dark gray suit, a white shirt, and no tie, which made him appear calm yet sharp.

Ling Pei-yi and Fang Wen-shan sat on either side.

Opposite them sat three foreigners.

The man in the middle, around fifty years old, was tall and wore a well-tailored dark blue striped suit. His sharp eyes carried the composed air of someone who had long held a high position.

This person is David Ross, Senior Vice President of PepsiCo's International Business Division.

On either side of him was a blonde woman in her forties with a serious expression, Emily Carter, PepsiCo's Global Legal Director.

The other was a sharp-looking Asian man in his thirties, Chen Ziming, PepsiCo's Director of Strategic Investment.

After a brief exchange of pleasantries, David Ross cut straight to the point without further formalities:
"Mr. Chen, we at PepsiCo are very interested in the diamond-shaped anti-slip bottle cap technology developed by your company."

Frankly speaking, this design solves a long-standing pain point in the glass bottle beverage industry regarding the opening experience, and has significant commercial value.

We have noticed that your company has already established a global patent portfolio.

PepsiCo, as a leading global beverage company, boasts unparalleled brand influence and distribution network.

We believe that this technology, when combined with PepsiCo's resources, will be able to serve global consumers faster and better.

Therefore, the purpose of our visit is to have in-depth discussions regarding the global exclusive licensing of your company's bottle cap patent.

He paused, his gaze fixed on Chen Bingwen: "PepsiCo is willing to pay a substantial licensing fee and promises to promote this technology globally."

This will bring Chenji huge brand exposure and stable cash flow.

Mr. Chen, what are your thoughts?

Exclusive authorization?

A substantial licensing fee?

Chen Bingwen sneered inwardly.

Pepsi has a shrewd plan.

The idea was to use a sum of money to buy out the global exclusive rights to the patent, and to completely integrate Chen Ji's technology into the Pepsi system, thus solving its own needs and blocking the path of its competitors.

As for the "considerable licensing fees"?
In the eyes of a giant like Pepsi, even the most "impressive" figures are just a drop in the ocean compared to the enormous size of the global bottled beverage market.

Chen Bingwen still wore a faint smile, his tone calm yet carrying an undeniable sharpness:
"Mr. Ross, thank you Pepsi for recognizing Chenji's patented technology."

However, Chen Ji has its own principles regarding patent licensing.

He looked directly at David Ross: "First of all, Chen Ji's bottle cap patent is an important part of the company's core assets, and we will not consider exclusive licensing."

Secondly, licensing fees are not our sole, or even most important, consideration in this collaboration.

David Ross frowned almost imperceptibly: "Oh? Then what does Mr. Chen consider most important?"

“Strategic collaboration, Mr. Ross.” Chen Bingwen’s voice was clear and strong. “Chen’s is a rapidly growing food and beverage company. We have innovative technology, unique products and huge market potential.”

We seek partners who are not merely buyers paying licensing fees, but strategic allies with whom we can jointly expand the market and achieve mutual benefits.

He paused, then continued, "PepsiCo's vast distribution network globally, especially in mature markets like North America and Europe, is an ideal springboard for Chen Ji's products to enter these markets. I hope PepsiCo can open these channels to Chen Ji."

"All products?"

David Ross astutely grasped this key word.

He originally thought that Chenji's only noteworthy patent was its bottle cap, but now it seems that there is more to it than that.

“That’s right, Mr. Ross.” Chen Bingwen nodded calmly. “The core value of Chen’s Foods is not just about a bottle cap technology.”

We are a food and beverage company with a complete product portfolio, strong R&D capabilities, and a clear brand positioning.

(End of this chapter)