Chapter 68: Bestselling Products and the Seasonal Crisis
"Do we get exclusive distribution rights in Japan?" Kojima Kawaken asked.
Yang Wendong shook his head. "Mr. Kojima, exclusive rights depend on guaranteed sales volume. It's a bit too early to talk about that. Let's first assess how well glue boards perform in the Japanese market, then we can consider the rest."
Anyone with a bit of business sense could already see the potential of glue boards — especially after their strong performance in Hong Kong.
Smith from the UK had reacted the same way. It was only natural. If Yang were in their shoes as a distributor, he'd want either the patent or exclusive rights too.
And while exclusivity wasn't off the table, he had to understand the market better first. After all, holding the patent made his factory the only legal producer — at least in theory.
"Very well. Then what about pricing?" Kojima followed up.
"Same as Hong Kong," Yang replied with a smile. "Forty cents per sheet, ex-factory. Since your company has a base in Hong Kong, we'll conduct the transactions here — how does that sound?"
"That transaction model works," Kojima nodded. "But the price will need to be negotiated. Our purchase volumes will be very large. For large-quantity orders, there should be some discounts."
"Fair enough," Yang laughed. He had already padded the price slightly to leave room for negotiation. Once the pricing discussion started, the deal was basically halfway done.
That afternoon, Yang returned to his factory.
Su Yiyi was busy doing the books. Upon seeing him, she asked, "How did it go, Dong-ge?"
"Half a success," Yang said thoughtfully. "We've reached a cooperation agreement. The price is tentatively set at thirty-five cents per unit, but it'll depend on how sales perform in Japan — similar to how it is with the UK side."
"That's great!" Su Yiyi put down her pen, stood up, and poured him a cup of tea. "Business has been going really well lately, huh?"
"That's because our product is strong," Yang said with a smile. "You know Li Ka-shing, the Plastic Flower King, right?"
"Of course! He's been all over the news lately," Su Yiyi nodded.
"Last year, after launching his plastic flowers, overseas distributors were falling over themselves to get in line and pay upfront — all just to get product early," Yang said. "As long as your product fits the market, you'll never have to worry about finding buyers."
There had been similar cases in his past life in China — products like Jianlibao and Master Kong instant noodles saw the same kind of explosive growth in their early days.
"Dong-ge, your glue boards will definitely be the next plastic flower success," Su Yiyi said with a grin. "If he's the Plastic Flower King, are you gonna be the Rat Slayer King?"
"What is this, Journey to the West? Rat Slayer King?" Yang laughed, shaking his head. "Plastic flowers have a much broader market than glue boards."
In the weeks that followed, life at the factory settled into a fast-paced but steady rhythm.
The Changxing Pest Control Factory had gone from slightly busy to completely overwhelmed.
Massive orders were coming in from both Japan and the UK. Japan in particular, due to its proximity and short delivery times, saw an explosion in demand. Just as Yang had predicted, the country's wooden homes were perfect breeding grounds for rats.
Once glue boards entered the market and demonstrated their high effectiveness, they took off.
Daima Trading Company placed an order for 150,000 sheets — and even indicated more would be coming soon.
1:00 p.m., inside the factory canteen
Su Yiyi looked at the cleaners still tidying up after the lunch rush, then turned to Yang and said, "Dong-ge, these new orders are crazy. Even the workers are getting cramped during meals."
"Mhm, looks like I underestimated Daima Group's distribution ability," Yang replied with a smile.
That Japanese trading company had been introduced to him by lawyer Zhang Weida, who had his own network of contacts. Of course, the favor wasn't free — Yang had given him a red envelope and promised more rewards if future introductions led to deals.
It was a tactic to activate his extended network — because if he had to rely on himself alone, it would take years to find the right partners.
"Should we consider expanding?" Su Yiyi asked.
"We can. Look around nearby — let's try not to move too far from the current site," Yang said, then added, "But expansion has to be cautious. Winter's coming."
"Winter..." Su Yiyi immediately understood. "Right. Once winter hits, the rats and flies disappear. That'll be bad for us."
Yang shrugged. "Yeah. In Hong Kong, we might still see some rats in the winter. But in Japan and Europe? Practically nothing."
Su Yiyi's expression grew worried. Then she asked, "Aren't there some places where it's warm year-round? Didn't you once say the Southern Hemisphere is the opposite of us?"
Yang nodded. "Yeah. But there aren't many big markets in the Southern Hemisphere. South Africa might be worth exploring — it's a Commonwealth country, so maybe we'll get a chance there.
But really, Southeast Asia is our best bet. Even though their economy is weaker, they have more people — higher population means higher demand. During winter, that market could help keep us afloat."
Su Yiyi nodded, then asked, "Then why are we focusing on the UK and Japan first?"
"Because there's money to be made," Yang said with a grin. "In the short term, we can earn good profits. Even if winter brings a downturn, we'll have cash reserves to get through it.
If we went straight for Southeast Asia, we might still be waiting on our first order today."
"Oh, I see," Su Yiyi laughed. "So it's 'make fast money first — worry later.'"
"Exactly. That's how a lot of Hong Kong businesspeople operate," Yang nodded. "Besides, if we do well in Japan and Europe, it'll be easier to promote our product in Southeast Asia later.
We might even get approached by traders from there directly. That's part of the plan too. For now, we focus all our energy and resources on the UK and Japanese markets."
"Got it. Don't worry, Dong-ge — I'll manage the finances and make sure the factory keeps running smoothly," Su Yiyi promised.
"Good. The next few months — summer in Japan and Europe — will be peak season. If we want to make money this year, it's going to come from this window," Yang said with a grin.
Su Yiyi thought for a moment, then asked, "So that means... starting next year, we'll be entering our real phase of large-scale growth?"
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