Chapter 291: Jardine Joins the Fray, Competition Begins
Afterward, Yang Wendong followed Wei Zetao to inspect various workshops throughout the industrial park. Eventually, they arrived at the section producing Rubik's cubes.
"How many units are we selling of this little toy each year?" Yang Wendong asked with a chuckle as he picked one up.
This was a toy he had prioritized in the early days, but now within Changxing Industrial, it was performing rather modestly.
Wei Zetao replied, "Roughly over a million units annually. The problem is, there are a lot of counterfeits. We can only control markets where legal enforcement is stronger."
"Mm," Yang Wendong nodded. "I heard someone in the UK has published a book about how to solve the Rubik's cube?"
In recent years, the Rubik's cube had been largely left to grow on its own. Thanks to its identity as a "high-IQ toy," it gradually gained popularity among educated circles.
Some people with strong math backgrounds had discovered the underlying mathematical logic and started conducting research, eventually finding methods for consistent solution.
Wei Zetao said, "Yes, a mathematics professor at Oxford University compiled a complete method for solving the Rubik's cube from any configuration. After we confirmed it, as promised, we paid him HKD 10,000 as a reward."
"Mm," Yang Wendong nodded again. "The initial wave of popularity has passed. So next, I want to launch a new promotional campaign — I want to organize a Rubik's Cube solving competition."
"A competition?" Wei Zetao immediately understood. "You mean, a group of people racing to see who solves it fastest?"
"Exactly," Yang Wendong nodded.
In the early days, the cube was too obscure, so organizing a competition was out of the question — not to mention the lack of funds or manpower to run a global campaign. Even collaborating locally had been difficult, especially given that television airtime was extremely limited.
But now, years later, the Rubik's cube was a recognizable product, and Yang Wendong had the financial clout. The time had come.
Wei Zetao thought for a moment. "That would be an excellent promotional idea — but it would be best to collaborate with a TV station."
"Right. Talk to Rediffusion," Yang Wendong said. "They may not have many subscribers, but this is Hong Kong — it's all we've got for now. Try a pilot competition here. If it works, we'll expand to other countries."
At the time, Hong Kong had no wireless TV stations — only Rediffusion, the precursor to Asia Television. It was cable-based and cost HKD 35 per month, so the subscriber base was less than 10,000.
Not an ideal partner, but it was the only choice for now.
Wei Zetao nodded. "Got it. I'll reach out to Rediffusion."
Yang Wendong continued, "The point of the Rubik's Cube competition is to boost awareness, but we're not expecting to make serious money off the cube itself. The real goal is to use its uniqueness to open distribution channels for our toys.
Once that's done, our other toys will have a smoother launch. But we still need the cultural side to succeed first."
"Understood," Wei Zetao said with a smile. "Without brand recognition, toys are just like any other cheap factory product — squirt guns, plastic animals…
Even if we design beautiful figurines, they won't fetch a premium price. Distributors will squeeze us dry."
"Exactly," Yang Wendong asked, "How are other local toy factories doing in terms of distribution?"
Wei Zetao replied, "Changxing Trading and the channels we built through the Rubik's cube are helping some of the factories in our industrial park find new clients.
Last month, our trade volume broke HKD 100,000."
"Good. Keep expanding those channels. When our other toys are ready, they'll benefit," Yang Wendong said.
Just as Glory Electronics had leveraged Changxing's supply chain, Yang Wendong's investment in the Rubik's cube was about paving the way for a bigger toy business.
Cultural products took time to export. But once the comics division matured, it would support the toy line.
July 15, East Market, Tsim Sha Tsui:
This had become the most famous wet market in Tsim Sha Tsui — not for product quality or service, but because a young man once sold rat traps here and had now become one of Hong Kong's most prominent Chinese tycoons.
People even visited just to say they'd been there.
"Fresh vegetables! Just brought in from the mainland!" an elderly woman shouted.
"I'll take some of that… and that… and two of those radishes," said a female customer, pointing item by item.
"Alright!" the vendor weighed each item and quoted the price.
The woman, who didn't seem too concerned about money, pulled out a cloth shopping bag and began packing her purchases.
The vendor said, "Miss, want a plastic bag? Just two cents — fits everything nicely."
"Plastic bag?" the woman asked in surprise. "I thought only Carrefour had those."
The vendor smiled. "That was before. Word is plastic bags are being distributed across all of Hong Kong now. We got ours early thanks to a connection with Mr. Yang Wendong."
"Oh, I see," the woman replied. "But I already brought my own bag. And these cost money, so maybe next time."
The vendor replied, "But your cloth bag will get dirty, right?"
The woman nodded.
"Then you'll have to go home and wash it, hang it to dry. That takes time and water. Wouldn't you rather just spend two cents and save the trouble?
Even if the plastic bag gets dirty, rinse it once and you're good. Fold it and reuse it anytime. Fits in your pocket. No one even knows you're carrying it."
"You're right. Alright, I'll take one," the woman agreed.
Compared to cloth bags, plastic bags didn't need washing.
Compared to paper bags, they didn't tear easily.
Compared to baskets, they were lighter and collapsible.
Convenient, cheap, and anonymous — nothing else came close.
In the days that followed, plastic bags began appearing across Hong Kong — from upscale malls to the most basic corner shops. Nearly every store had them.
All of a sudden, people realized just how much easier life had become.
No longer did they need to prepare a large basket at home before going out to buy groceries — a task that used to limit what else they could do that day.
Now, they could just slip a plastic bag into their pocket and head out the door. They could go out to play or run errands, and only stop to buy groceries right before heading home.
Even if they forgot the bag, it wasn't a big deal — a new one only cost two or three cents.
Changxing Plaza:
"Mr. Zhao, here, have a drink," Yang Wendong said with a smile, raising his glass.
Zhao Chengguang quickly responded, "Mr. Yang Wendong, allow me to toast you instead."
In just four years, the young man to whom he once gave a chance had become one of the top tycoons in Hong Kong's business world. Zhao Chengguang no longer dared treat him casually as he once had.
Yang Wendong laughed, "Mr. Zhao, our relationship isn't just a business one. I'm also truly grateful for the help you gave me back then."
Back in 1958, if not for the opportunity to collaborate with Zhao Chengguang — leasing a warehouse and taking on the rodent extermination job at the docks — Yang Wendong's entrepreneurial path wouldn't have taken off so rapidly, even if he had eventually succeeded.
It wasn't a life-saving favor, but it was a crucial stepping stone. And Yang Wendong had always remembered to show due respect, prioritizing internal collaborations in Hong Kong with Zhao Chengguang.
"You're too kind, Mr. Yang Wendong," Zhao Chengguang smiled. "These past few years, I should be the one thanking you. My business has grown tenfold."
"It's as it should be." Yang Wendong then asked, "I also have to thank you for the support with the plastic bag rollout."
Zhao Chengguang replied, "Mr. Yang Wendong, with or without me, these plastic bags would've taken off. They're too convenient and sell themselves. Everyone's fighting to get them."
Yang Wendong laughed, "Haha, even Carrefour's sales jumped nearly 30% after they started using plastic bags."
Zhao Chengguang added, "Congratulations on yet another milestone. But I've heard that some people are now buying plastic bags in bulk and selling them at high prices in neighboring Southeast Asian countries."
"That's within expectations. Those people are sharp," Yang Wendong nodded. "But it's fine. I'm already planning to scale up production. This business — we'll take it over ourselves."
"That's good," Zhao Chengguang chuckled, then added, "Mr. Yang Wendong, there's something I need to tell you."
"What is it?" Yang Wendong asked.
Zhao Chengguang said, "The Hongkong Land Company is planning to enter the supermarket business. Their people have already contacted me, hoping I'll supply some goods."
"Oh? So it's finally Jardine?" Yang Wendong wasn't surprised. He had known months ago that a major conglomerate would eventually jump into the supermarket game.
Supermarkets, when well-run, brought not only profits but strong cash flow.
Before Carrefour, there were no true supermarkets in Hong Kong, and the local tycoons weren't paying much attention to overseas retail trends. But once Yang Wendong launched Carrefour in Hong Kong, the business model became too obvious to ignore.
Zhao Chengguang said, "Yes. Hongkong Land owns vast properties across Hong Kong Island. If they get serious, they could open supermarkets quickly — and in large numbers."
"Everyone wants in on a profitable business. That's normal," Yang Wendong said cheerfully. "Let them come. I'm not afraid of competition."
Everyone wants a monopoly. But in the service industry, true monopolies are rare. And when they do form, it's usually after fierce competition.
In the original timeline, the main players were PARKnSHOP and Wellcome, backed by Hutchison and Jardine respectively. Their decades-long rivalry never led to a real monopoly.
Though Yang Wendong introduced the supermarket model nearly ten years ahead of schedule, other tycoons weren't blind. Once they saw the potential, they'd naturally want a piece of the action. That was expected.
If a duopoly eventually formed through this competition, that would be ideal. It could elevate the entire industry.
Zhao Chengguang asked, "So, Mr. Yang Wendong, you're not afraid of Jardine?"
Yang Wendong smiled faintly. "Not really. Financially, they've got more muscle than I do — but success in business isn't just about having money.
Supermarkets may look simple, but running them well is not easy."
Carrefour's current model was adapted from Walmart and then modified for local conditions.
It looked simple, but mastering it took years of refinement. Yang Wendong had the advantage of being the first mover. Anyone trying to catch up now would have to pay dearly.
"Then that's good," Zhao Chengguang said.
Yang Wendong looked at him and added, "Mr. Zhao, if Hongkong Land comes to you for supplies, go ahead and sell to them. It's no big deal. If you don't, they'll just find someone else.
But — one condition."
"Of course, please say it," Zhao Chengguang said quickly.
Yang Wendong said, "Charge them a slightly higher price than us. Your current prices are based on Carrefour's bulk orders. That advantage came from our volume.
So it's only fair that you profit more from them. Just keep your prices at market levels, and don't go lower than what others would offer."
"Alright," Zhao Chengguang agreed. "Then how about this — we split the extra profit 50-50?"
He understood clearly: without Carrefour's initial orders, his own supply channels wouldn't be what they were today. His business relied heavily on Carrefour.
"Sure." Then Yang Wendong added, "Mr. Zhao, since we've worked together for so long, how about I invest in your trading company?"
Distribution was complex. A supermarket could only control pricing on high-margin goods. For the majority of products, they still relied on traders.
Even in the 21st century, Walmart couldn't handle 100% of sourcing directly. It took years to optimize supply chains.
So managing relationships with large trading partners was crucial. You couldn't stop them from supplying others, but if they used your purchasing power to lower costs and then supplied competitors, that was frustrating.
Taking an ownership stake — that was one solution.
"Absolutely. No problem," Zhao Chengguang agreed without hesitation. "I'll tidy up our financials. Hope you won't laugh — things are a bit messy over there."
Yang Wendong said, "Totally understandable. Use this opportunity to standardize your accounting and operations. If you want to scale up, you'll need corporate-level management. Who knows, maybe you'll go public one day."
"Sounds good," Zhao Chengguang nodded, already inspired with ideas.
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