"Okay, then I will arrange for someone to go to Wanwan to find out the basic situation of these people first." Lei Shengli nodded and agreed.
Chen Zhiwen added: "Xu Sheng's friend can give me some benefits, which will be a lot more convenient."
"Understood." Lei Shengli said.
"Okay, this matter is more important. Let me know if there is any progress." Chen Zhiwen nodded and said. With this factory, even if it can one day be able to produce the chips they need for various electronic factories in Hong Kong, it will not be possible. The profit will be very high. After all, its own technology is still relatively weak. In addition, Hong Kong's local electronics industry is the simplest, and there is not much profit margin.
But the meaning is much more important. Everything goes from easy to difficult. If you keep developing steadily, you can improve yourself.
"Okay." Lei Shengli said again: "Xugong, you go and do your work first. Chen Sheng and I still have some things to discuss."
"Then I'll leave first." Xu Zhishan stood up quickly, nodded slightly and left.
Lei Shengli said: "Sheng Chen, there are some problems in the negotiations with the Hong Kong government regarding the color tube factory. The Hong Kong government believes that the color tube factory pollutes the environment relatively much, and is not willing to approve this land in Yuen Long. Instead, I suggest We moved the factory to Tin Shui Wai."
"Isn't it also possible in the remote countryside of Yuen Long?" Chen Zhiwen said with a frown. Different from ordinary home appliances or parts companies such as motors and refrigeration compressors, many processes in color tube factories are polluting to a certain extent. Many production processes require the use of different acidic substances, various glues, and some chemicals. Materials and so on.
After negotiating with Sony to acquire a production line from the other party, Chen Zhiwen was not prepared to place the factory in the existing Midea Industrial Park. First, the color tube production line required an area that was too large, and the Midea Industrial Park was not suitable. Secondly, The second is the issue of pollution. Midea Industrial Park has some Red Bull factories as well as chip and LCD factories that are being prepared. It is unacceptable to have a factory that pollutes the environment.
Therefore, Chen Zhiwen arranged for Lei Shengli and Lin Yanming from the Ministry of Justice to negotiate with the Hong Kong government to find a piece of land of sufficient size not too far from the Midea Industrial Park to build the color tube factory.
"The area of Yuen Long is not very large. The Hong Kong government is worried that if we have been granted a large piece of industrial land, it will be difficult for them to develop in the future, especially since our factory still has certain pollution problems." Lei Shengli said: " Under normal circumstances, Lin Sheng and I could have a good talk with the Hong Kong government, but Sony seems to be ready to disassemble and assemble the equipment for shipment, so I would like to ask Chen Sheng what he means."
"Don't worry about pollution. Sony's factory in Japan has strong environmental protection facilities. If it's not enough, I can invest again." Chen Zhiwen thought for a moment and said, "But the land still needs to be in Yuen Long. This is much more convenient, please give me a map of Hong Kong."
It is important to open a factory, but life safety and health are more important. Chen Zhiwen has always attached great importance to this aspect. Many of his factories have invited safety experts from Japan and Europe for guidance. This is also because Midea's main business is assembly, small Accidents have occurred several times, but no major accident has occurred yet. But now that it involves polluting industries, especially when employees are exposed to toxic substances, funds must be invested to protect the safety of employees and the environmental safety of the surrounding people.
"Okay, wait a minute." Lei Shengli agreed quickly and quickly brought over a map.
"There should be several hills here, right?" Chen Zhiwen pointed to a place and said.
"Yes, there are several small hills tens of meters high. I have also been to this place. Many local farmers have grown some vegetables on the hills." Lei Shengli said.
"Then discuss with the Hong Kong government to get this land and we will level the hill." Chen Zhiwen said.
"Leveling the hills? That's possible, but it also requires a lot of money." Lei Shengli nodded and said.
"It doesn't cost much. Hong Kong real estate companies have moved mountains and reclaimed seas for land." Chen Zhiwen said with a smile.
Many hills in Hong Kong are not hundreds of meters high like those in the Mainland. Many of them may be just one mound, surrounded by several hills, which makes it impossible to develop large-scale agriculture in this area.
The cost of removing hills is not low, but compared with the profits from real estate, it is trivial. For example, the Sha Tin reclamation land currently being planned by Dad's Hengyi and the Future Four Family Consortium requires several companies. The consortium comes to carry out land reclamation, and then the Hong Kong government takes part of it, and the rest is regarded as the return of the consortium.
Under normal circumstances, the cost of reclamation is higher than that of moving a mountain (a small mountain). However, the real estate consortium can only obtain part of the land when reclamation, which is enough to show the high value of the land.
"Having said that, the real estate company is just for commercial land. After we develop it, it can only be industrial land. It doesn't feel like a good deal." Lei Shengli said with some regret.
"Those real estate companies cannot get all the land. The Hong Kong government does not do good things. Since our land is for industrial use, we should discuss with the Hong Kong government and give us a larger area. In the future, color TVs will be our main project. Maybe Just like a fan, how many people can be employed here, how big the export volume is, and how big the industrial chain is. There are only two or three small villages near this large area. If they are all moved, then this area will belong to us, and we will move it again. Mountain." Chen Zhiwen said as he drew a circle on the map.
Although it is a bit exaggerated, the color TV project is indeed his main goal in the future.
Fans were able to expand on a large scale in the past because the industrial chain was simple. Chen Zhiwen invested heavily and produced most of the entire industry chain in-house. Now, the core component of color TVs, color tubes, are also produced in-house, so they are naturally next.
The reason why air conditioners and refrigerators do not use fans is because air conditioners need to be installed. This labor cost needs to be controlled unless after-sales service is spread across the United States, but this is impossible, at least not now. As for refrigerators, although after the acquisition of Bitzer We basically have an industrial chain and don’t need much after-sales service. However, the size of the refrigerator is too large, the cost of ocean transportation and land transportation is too high, and the transportation cost ratio is too high. The low labor cost in Hong Kong In terms of cost and the entire industry chain, the advantages are no longer obvious.
Color TVs are right in between the two, perfectly becoming the next home appliance product that Midea is ready to fully invest in and promote.
"Okay." Lei Shengli looked at the circle on the map. The area is definitely not smaller than Midea Industrial Park. If it is really won, Midea's color TV industry will be much more convenient.
"Sheng Chen, currently Parknshop has acquired 238 properties in Hong Kong, and another 56 are leased, which basically covers 90% of Hong Kong's population. The remaining people live in remote areas or have difficult transportation. It's not suitable to open a new store there. This is the location map of all our stores." Wu Weibing, who is in charge of Watsons Company, just came to work in the morning and brought over a piece of paper almost half the size of a table.
"It's mainly on both sides of Victoria Harbor." Chen Zhiwen said looking at the picture. This piece of paper is a map of Hong Kong, with the location of each PARKnSHOP supermarket marked on it.
"Almost 75% of Hong Kong's population is now in Kowloon or Hong Kong Island, and we have almost 200 stores in this area." Wu Weibing said.
"Okay, since it's almost done, that's it. Are there enough funds? How much is left of the 200 million Hong Kong dollars re-mortgaged?" Chen Zhiwen asked.
Previously, HSBC loaned 250 million Hong Kong dollars to Watsons to expand Parknshop. If it were just to open a supermarket, these funds would not be a problem. However, Parknshop also aims to acquire properties. With 200 properties, this amount of funds is a bit stretched. , so Chen Zhiwen asked Parknshop Supermarket to use the properties as collateral after acquiring some properties and obtain bank loans in reverse. Of course, the second loan was no longer from HSBC.
"There is almost 34 million left. This fund should be enough to maintain the daily operations of the supermarket. But the problem is that Parknshop's debt is a bit too heavy. It cannot support this nearly 500 million Hong Kong dollars by relying on retail income. The interest on the loan will be charged unless we significantly increase the selling price of the items, but this may also lead to the loss of users." Wu Weibing said tentatively.
"The selling price cannot rise. Even if we have a monopoly, we don't have to make this kind of money. A long-term and stable price is the safest. If the interest is too heavy, we can use the supplier's delivery funds to balance it out. If that doesn't work, , I am transferring some funds to you." Chen Zhiwen thought for a while and said.
The retail industry that wants long-term development cannot do whatever it wants even after a monopoly. Only by winning with cost-effectiveness in the long run can it sit firmly on the Diaoyutai. In addition, the properties are owned by oneself. As long as they can survive the loan repayments in the first few years, then in the future Life is very easy.
It is estimated that supermarkets opening stores in cities have never had such a high self-sustainment rate in the history of the world. This kind of upfront investment is huge. In addition, due to the recent high-interest policies adopted by Europe and the United States to suppress inflation, which has affected Hong Kong, PARKnSHOP supermarkets are naturally under pressure. It's too big and can't bear it.
"Okay." Wu Weibing was relieved.
"Actually, if house prices rise again, the properties in PARKnSHOP's hands can still be mortgaged a third time." Zhou Jiayang reminded at the side.
"It's also a method." Chen Zhiwen nodded. As long as there is property, almost all financial problems can be solved. Hong Kong housing prices are rising too fast. Hong Kong tycoon Chen Songqing used this routine, plus some deceptions, to continuously expand the scale of his company, and then went public for financing. After obtaining the funds, he purchased properties and continued to remortgage them. Then he purchased properties and then speculated on the stock price. It came and went, and the bubble didn't burst until the real estate crisis broke out in 1982.
"That's okay, but more funds will be needed in the later stage." Wu Weibing said with some embarrassment.
"It's okay, as long as it lasts for a while, I will pay off this debt for you later." Chen Zhiwen said with a smile. In two or three years, if everything goes well, funds will no longer be a problem for him.
"Okay, thank you Chen Sheng." Wu Weibing said.
"In addition, Baijia Supermarket also needs to undertake some social obligations for our entire group factory. In terms of recruitment, it can target some disabled people, and also recruit some part-time workers, so that some ordinary people can earn more money. In addition, if there are people with disabilities every day, Excess food or some daily necessities can also be distributed to people in need nearby, but you should be aware of some legal risks." Chen Zhiwen added.
When Midea, Hutchison, and Galaxy become large enough, there will be no shortage of such things. One is to promote their positive side, and the other is that a big company does need to do these things. Many British-funded companies like to donate funds to the government. Institutions, nursing homes. It's easy and simple, but Chen Zhiwen still hopes to be more practical and help those Chinese who are really in difficulty.
"That's no problem. Parknshop Supermarket has been recruiting people with less severe disabilities to help them find jobs. As for food, it is difficult to distribute. Many people who don't need it at all will come to get it, and they will also Some people just don’t want to buy anything and just wait to receive food.” Wu Weibing replied.
"What time does the supermarket usually finish cleaning up after get off work?" Chen Zhiwen suddenly asked.
"About 11 o'clock." Wu Weibing replied. Parknshop Supermarket usually closes at 9 o'clock, and then it is necessary to conduct a partial inventory of the entire supermarket and add goods, or the layout needs to be rearranged when there are activities.
"Then send it out at 11 o'clock. Those who really need it will come." Chen Zhiwen thought for a while and said.
The kind of throwing sand into the porridge in disaster relief plots in later costume TV dramas, although unkind, is indeed a way to truly screen out refugees. Of course, it cannot be done like this in modern times, but if the time is delayed until very late, there are many things that are not lacking Those who want food will not come.
Although the 1970s was an era of rapid economic development in Hong Kong, there were still many people living at the bottom. Many people could only say that they would not starve to death, but starvation may be the norm, or they could only eat the cheapest food, especially It was difficult for people who came from the mainland to find jobs at first. Parknshop supermarkets would also have expired food every day. In the past, supermarkets in Hong Kong and even in Europe, America and Japan would throw expired food directly into the trash can, but after Chen Zhiwen took over, he still I think it would be good to distribute it.
Even if someone takes advantage, as long as it is more difficult to obtain, some of it can still be given to those who need it.
"Okay, let's try it first." Wu Weibing nodded and said.
"Okay, there is basically no big problem in the Hong Kong market. We have completed all the layouts. The possibility of other consortiums coming in is almost zero. We just need to wait for the debt to be reduced a little bit. However, Hong Kong is only one of the top 100 companies. In other words, the starting point of Watsons. My plan is to start expanding overseas in 80 years. There are still two years left. Your team can do more research on the situation in the Gulf or Southeast Asian countries, especially the Gulf, which will be our next step. A major market." Chen Zhiwen continued.
Retail sales here in Hong Kong are very simple within Hong Kong. It can be done with large capital and high-quality supplies from Galaxy Trading. However, the Hong Kong market is too small. After taking it all, you must go out, otherwise you will have to go out. It can only be a small local retail company.
However, it is quite difficult to open a supermarket in someone else's territory, especially as historical experience from later generations shows that basically retail supermarket groups can only dominate locally and struggle overseas.
For example, Wal-Mart has a huge scale in the United States, but its performance in Europe, Asia, and South America is mediocre. This is the result of its own huge supply chain control capabilities. Similar to European supermarket giants Auchan and Carrefour, the same is true in the global market.
However, it is difficult to return, so Chen Zhiwen still wants to give it a try. Not to mention other things, there are Chinese people in Wanwan, so the probability of success should be much higher. Even if it does not make money, it will not hurt him if the industry is larger.
Zhou Jiayang said: "Sheng Chen, I have been to many countries in Southeast Asia and worked there before. The xenophobia there is more serious. Unless we are investing in factories and there is no conflict with local business giants, then There won't be any big problem, but if you open a supermarket to earn their money, it will be a bit difficult.
To develop the market there, the safest way is to cooperate with large local consortiums. They are responsible for stabilizing our investment. We provide cheap goods, and the final profits are divided according to the ratio. It is best to find local Chinese capital, Southeast Asia In fact, many industries are controlled by local Chinese. "
"That's okay. The main thing is to find suitable partners. First try to communicate with companies owned by well-known wealthy Chinese people. You can try it first. If there is a chance, I will mention it to them if I meet them. "Chen Zhiwen nodded and said.
It has to be said that in Asia, the Chinese are still the most diligent and intelligent. Countless Chinese have gone overseas, and many have become local business tycoons. In Europe and the United States, they are still suppressed by local groups. But in Southeast Asia, which is on the same starting line, It is much more obvious. To exaggerate, the Chinese account for half of the rich list in Southeast Asia, which is basically correct.
"Okay, I will send people to Southeast Asian countries to investigate, and then try to contact them." Wu Weibing agreed.
"The key point is to prepare for Wanwan first, and Southeast Asia is also doing the same." Chen Zhiwen thought for a while and said: "Watson's own cosmetics brand has also developed well in Hong Kong recently, and it can also try to expand outwards, but this small The store does not have much interest, so we can just look for ordinary merchants overseas to join us. In terms of goods, we purchase goods in a unified manner and strive to reduce the cost of the procurement chain as soon as possible so that we can expand internationally."
Watsons currently has two main businesses, one is PARKnSHOP supermarket, and the other is Watsons' own cosmetics chain store. During this period, the focus has been on PARKnSHOP supermarket, because it can obtain the absolute monopoly position in Hong Kong through rapid investment. The Watsons cosmetics chain store has a low investment and has remained the same since opening 30 stores in Hong Kong. This type of cosmetics chain store can only expand in multiple cities. The future market will mainly be overseas, and they are all scattered.
This takes a long time to operate and requires continuous investment of funds, but the advantage is that this kind of store can only absorb a small amount of profit in one place and will not arouse the covetousness of local snakes. Moreover, it will mainly adopt the franchise method. This It is also profit sharing.
"Then Watsons also wants to open up the Wanwan market first?" Wu Weibing asked.
"You can try it first, but the overall economy in Wanwan is much worse. Just choose to find franchisees in a few big cities in Taipei. The main thing is to accumulate experience. Watsons still needs to focus on Europe and the United States. For the United States, , I will try to find some partners to invest together and pave the way first." Chen Zhiwen thought for a while and said.
In the original history, Hutchison Whampoa, owned by Li Jiacheng, also valued Watson's cosmetics business and invested in Europe, America, Southeast Asia and even Japan. However, with his capital at that time, he only became rich in the 1990s. Of course, Chen Zhiwen today will not After waiting for such a long time, especially in the United States, where I still have certain resources, I only need to make an investment first to open up the market, and then use these successful cases as publicity to guide others to join. And as long as the quantity is large, you can choose the best quality supplier.
The operational logic is actually the same as that of a supermarket chain, except that cosmetics stores cannot be large and must be spread around the world.
PS: Please give me a monthly ticket
(End of chapter)
