Chapter 260: The Piracy Dilemma and Brand Promotion
"One bag of rice, one bag of flour, one piece of salted meat—bring your own basket for the meat!"
Someone at the front of the line shouted instructions.
In the line, two young women watched the people ahead receive their food rations, visibly happy and excited.
"Sis, I didn't expect that just half a month after joining, we'd be getting this much food," said the short-haired girl with a beaming smile.
"Yeah, prices at the market have gone up way too much this year—worse than any past New Year. I could barely afford to buy meat for the kids," said the long-haired girl. "Now the factory's giving out salted meat, which keeps for a long time, and we won't even have to use as much salt."
"Even salt's gotten expensive lately," the short-haired girl added with a worried tone. "Our younger sister can't read very well and didn't pass the entrance screening. She ended up working at a regular factory with lower wages, and she has to bring her own lunch. She's working all day and still has to cook at night. Sometimes she doesn't even have time to shop for groceries… sigh."
"There's nothing we can do. She didn't pass the interview," said the long-haired girl. "I asked some veteran workers. Next time the factory opens hiring again, we can get recommendations from supervisors. Maybe we can help her get in."
"Is it guaranteed?" the short-haired girl asked.
"Of course not. There's still an interview," the long-haired one replied helplessly. "Tons of people want in now, so they've tightened the screening. Even employees of Changxing Industrial have to interview—connections are useless unless you're tied to the heavens.
But the other companies in the industrial park have much looser standards."
"Getting into another company would still be great," the short-haired girl said. "Even the worst job here pays better than outside."
"It's because of Mr. Yang Wendong, the Post-it King," the long-haired girl said. "I heard it was his order that all Changxing suppliers must treat employees fairly. He even checks employee turnover rates, so those companies don't dare to mistreat their workers."
"Mr. Yang Wendong is such a kind person," the short-haired girl said emotionally.
"Coming from the squatter settlements himself, he probably understands the struggles of the working class best," the long-haired one agreed.
"We should help our little sister learn to read," the short-haired girl said. "Once she knows more characters, her chances of getting in will go way up."
"Absolutely," the long-haired girl nodded.
"Move faster in the front—there are still a lot of people waiting!" someone yelled from the front of the line.
"It's almost our turn," the long-haired girl said with a joyful smile.
Soon, the two girls received their heavy goods and struggled to carry them to their lockers, where they locked them away.
"I'm exhausted," the long-haired girl gasped. "It's so heavy and awkward to carry."
"I'd rather be more tired—heavier means more food," the short-haired girl laughed, equally out of breath but clearly pleased.
The rations would last their families more than a month. The factory issued rice and flour every quarter—not as much as during New Year, but still a significant help with household expenses.
Just then, a commotion erupted near the lockers. Many people seemed excited.
The two girls exchanged a glance, got up, and walked toward the crowd. They found a familiar face and asked, "Ah Hua, what's going on?"
"Lin-jie!" Ah Hua beamed. "We just got word from management. The company will soon start offering cheap essential food items—rice, flour, oil, salted meat, sugar, soybeans, salt. We can apply once a month, and they'll distribute everything at around 30% less than market prices."
"That cheap?" the long-haired girl gasped. That would save a ton.
The short-haired girl quickly asked, "Ah Hua, are there limits? Like, can we only buy a certain amount per person?"
"The notice didn't specify," Ah Hua replied. "Buying a little extra should be fine, but if you buy too much, they'll know you're reselling it."
"I just wanted to help a friend out," the short-haired girl said with a smile.
"That should be okay then," Ah Hua said.
"Great, Sis," the short-haired girl said happily.
The long-haired girl's eyes lit up. If they could buy enough for their younger sister too, that would really ease her burden.
Even without the new offer, they'd already planned to share some of their own supplies.
"Come on, let's go look at the prices before we have to go back to work," Ah Hua said.
"Yeah!"
February 3, three days before Lunar New Year.
Yang Wendong arrived at Changxing Tower. The building had been decorated with Spring Festival couplets—an old tradition full of festive energy.
All of Changxing Group's senior executives were also gathered.
"Everyone, this is a new glue we just developed at Changxing Industrial," Wei Zetao said, introducing the product to those around him. "It's not super strong—it's mainly starch-based with no harsh chemicals. Perfect for putting up Spring Festival decorations."
Zheng Zhijie laughed, "Isn't that just boiled rice paste?"
"No, no, it's better," Wei Zetao explained. "It's way more convenient. People don't have time to boil rice glue these days. Buying a bottle for a few cents is much more practical."
"Fair enough. Give me a few bottles," said Qin Zhiye.
"Me too," several others chimed in.
Wei Zetao replied, "Don't worry—we've prepared plenty for everyone. It's free."
At that moment, Yang Wendong entered the room.
"Mr. Yang Wendong~" Everyone stood up respectfully. Though he was casual most of the time, this was an official meeting.
"No need to be formal. Sit down," Yang Wendong said with a wave. He glanced at the glue on the table and chuckled, "I heard this new glue is selling pretty well. Looks like Changxing Industrial's R&D is stepping up its game."
"We've made some progress, but we're not quite there yet," Wei Zetao said modestly. "This glue is based on folk recipes—just slightly refined."
"That's a great direction to explore," Yang Wendong smiled. "Our culture is thousands of years old. Many traditional practices have stood the test of time.
We just need to apply modern science and systematize them. R&D based on this approach will yield twice the results with half the effort."
"You're absolutely right," Wei Zetao agreed.
Yang Wendong continued, "Everyone, today is our last major internal meeting before the Lunar New Year.
This is our first annual summary meeting since the founding of Changxing Group. The goal is to review our achievements over the past year, let various departments get to know each other better, and coordinate plans for the future.
Especially for major initiatives—it's important to let everyone know in advance so we can support each other."
The attendees all understood and had no objections.
"I'll give everyone a heads-up first," said Wang Fengzhi, the CFO. "This meeting will only discuss business operations. Everyone already knows their own financials—those are proprietary to each subsidiary, so no need to go into detailed numbers here."
"Understood~"
"Got it~"
Several branch managers nodded in agreement.
Yang Wendong continued, "Let's start with Changxing Industrial. It's the foundation of our entire group. Without Wei Zetao's hard work, none of us would be where we are today."
"Mr. Yang Wendong is too kind," Wei Zetao quickly replied. "Changxing Industrial only came this far thanks to your inventions and strategic leadership. My contribution is just putting in the legwork."
"Haha, let's stick to the facts," Yang Wendong chuckled.
What he said wasn't wrong. No matter how much labor is put in, it can't compare to strategic contributions. Whether it's a company or a person, choosing the right direction is far more important than any amount of effort afterward.
Still, even though someone else might've managed to succeed in the same role, Wei Zetao was the one who had the good fortune to be chosen early and then proved himself by managing operations well. That made him both a founding member and a key contributor to the group.
"Alright." Wei Zetao opened the folder in front of him and began, "Currently, I've divided Changxing Industrial into two main divisions.
One is the adhesives division, focused on products like Post-it notes, adhesive hooks, and glue traps—including our glue manufacturing.
The other is the plastics division, which centers around rolling luggage, spin mops, toy lines, and plastic trading—anything related to plastics."
Yang Wendong asked, "Aren't adhesive hooks also made of plastic?"
"Yes, but the core component is still the glue," Wei Zetao explained. "So we categorize them under the adhesives division."
"Fair point," Yang Wendong nodded.
Wei Zetao continued, "Right now, the adhesives division operates mainly out of Tsim Sha Tsui, while the plastics division is based in Kwun Tong. That's also due to local government relationships in those areas.
Our core adhesive product is still the Post-it note. With the opening of our Phase IV factory, we can now meet global demand. Last year alone, we exported 680 million units."
"680 million?" Yang Wendong thought for a moment and asked, "That can't be global demand, right?"
"It's definitely not," Wei Zetao said. "We've already discovered many counterfeit versions. We've worked with distributors to crack down on piracy, but it's an endless problem. Compensation is small, and the legal process is exhausting. Sometimes, the legal fees cost more than the settlement."
"That's a tough one," Yang Wendong agreed. "Do your best to work with distributors and develop your markets. And try to differentiate the product quality so that it's noticeably better than the knockoffs."
Piracy was a global issue even in the 21st century, let alone now.
Wei Zetao nodded. "Understood. Glue traps and adhesive hooks face even worse piracy issues. But our quality is clearly superior."
"Exactly," Yang Wendong said. "Pirates are just looking to make a quick buck. They won't invest in quality."
"Yes. Mr. Yang Wendong, I'd like to invest in some marketing across Europe and North America to build up our brand," Wei Zetao said. "We now have multiple products—luggage, Post-it notes, toys in development—and they all need brand support."
"Go ahead," Yang Wendong nodded. "Branding is crucial for recognition. And since we're hitting our ceiling in terms of sales, advertising is the only way to reclaim market share from the knockoffs."
The best way to fight counterfeits was with a strong brand. When brand recognition was high, more customers would choose to buy the real product.
"Got it," Wei Zetao said. "Based on our pricing structure, total revenue from Post-it notes last year exceeded HK$80 million. That makes it the highest-selling single product in Changxing Industrial."
"What about glue traps and adhesive hooks?" Yang Wendong asked.
Prices for Post-it notes varied by region. Early on, in the U.S., they were sold at about $1 for 50 sheets. In Europe and elsewhere, the price dropped to $1 for 30–40. They weren't exactly cheap, but not expensive either. The profit margin was around 30–40%, which was deliberate. If prices went too high, piracy would only get worse and eventually backfire.
Wei Zetao replied, "Glue traps and adhesive hooks brought in around HK$10 million combined. These products are easier to pirate since their design is so simple. Glue is widely available, and even home workshops can make them."
"Then branding is clearly the only way forward," Yang Wendong agreed.
The simpler the product, the easier it was to copy.
At least Post-it notes required a small-scale production line and special glue. That created a barrier to entry.
Glue traps and adhesive hooks? Their manufacturing complexity was ten times lower.
"Exactly. So our main goal this year is to promote the 'Deli' brand overseas," Wei Zetao said. "We haven't finalized our advertising budget yet, but it'll be significant."
"No worries. Spend what you need to," Yang Wendong said without concern. "If the branding works, the ROI in a few years could be many times over.
Plus, we've got other products under the same brand. It's well worth it."
It was like Coca-Cola. Its brand was so powerful that even if it launched a completely unrelated product—say, coffee—people would still buy it just to try it out.
That was the power of branding. Unfamiliar products under no-name brands rarely got a chance.
Granted, products involving safety (like food or medicine) required even higher brand trust. Deli's products weren't quite in that category, but having a brand was still far better than being unknown.
"Understood," Wei Zetao said. "At our glue factory in Tuen Mun, we now have four production lines. Last year, total output reached 65,000 tons.
Our own internal demand is about 20,000 tons. The remaining 45,000 is all for 3M's tape production facility here in Hong Kong."
"They've built a massive operation," Yang Wendong said with a laugh.
In less than a year of operation, their glue demand had already doubled his own.
Wei Zetao explained, "3M mainly produces standard tape. That stuff is used everywhere, and their annual production is in the tens or hundreds of millions.
Each roll of tape uses far more glue than a single Post-it note. That's why their glue demand is so high.
This year, we plan to double our glue capacity again. But the details still need to be finalized. Once we've got the plan, I'll bring it to you for review."
"Is all that demand coming from 3M?" Yang Wendong asked.
"Partially," Wei Zetao replied. "3M tape sells well throughout Asia, and they're planning to expand.
But I'm also planning to get into the glue export business myself."
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