Chapter 259 Planning of Cultural Industry

Chapter 259 Planning of Cultural Industry

Chapter 259 Planning of Cultural Industry

The supermarket in Causeway Bay opened the day after that. The supermarket in Central also opened.

There are 3 more properties currently under renovation, and they will open one by one once everything is ready.

In this process, as terminal sales increase, they will have a stronger voice in the procurement supply chain, thereby reducing the prices of terminal goods. This is also the fundamental reason why chain supermarkets can gradually replace department stores.

Otherwise, no matter how good the service experience is, it is difficult to compete with the cheap price, unless you take a high-end route. However, in the supermarket industry, or any industry, the needs of the ordinary class will be the largest market.

The smooth opening of the three supermarkets also made Yang Wendong in a good mood. Unless there are any major accidents, Carrefour will definitely develop normally in the future.

By the time the real estate crisis hit in 66, it had acquired enough properties to become a retail giant in Hong Kong.

Unless large conglomerates such as Jardine Matheson and Swire also join in the fight, it would be possible to pose a threat to Carrefour.

As the boss, Yang Wendong has done his best to provide various early support to Carrefour. As long as the subsequent funding and resource needs are reasonable, they can be easily met internally.

Next, it will depend on the ability of the team headed by Liu Huayu.

February 2st is here quickly and the Chinese New Year is just 1 days away.

On this day, Yang Wendong came to Changxing Industrial Park in Kwun Tong.

"Mr. Yang." Wei Zetao naturally came to the administrative building to greet him.

Yang Wendong smiled and said, "I come here quite often, so you don't have to come down to greet me every time, so as not to delay your work."

"It's okay, just come down for a walk." Wei Zetao said with a smile.

Yang Wendong nodded and said, "Yes, let's take a walk in the park. It's a good opportunity for me to see the development of the park."

"Okay." Wei Zetao said, "Then I'll lead the way."

Afterwards, the two of them walked towards the interior of the park, and of course, they were accompanied by several department heads of Changxing Industrial.

Along the way, Wei Zetao introduced the products produced in each building, as well as the names and general situations of some of the companies that rented out the buildings.

"It seems that Hong Kong's toy industry is developing quite well." Yang Wendong said with a smile.

Wei Zetao nodded and said, “Yes, more than a decade ago, Hong Kong’s plastics industry, from its early stages of development, mainly produced various small toys;

The famous plastic flowers from a few years ago and several plastic products from our Changxing Group are well-known, but in terms of industrial scale, they are still not as good as the hundreds of plastic toy factories."

"Well, but there is basically no profit, right? These companies?" Yang Wendong asked again.

He still remembered that in the year when he traveled through time, when the mousetrap business had achieved some success, the first property he acquired was a small factory producing plastic toys.

At that time, he also talked to the boss who sold the property. Although they made many kinds of toys, they were all OEM and the profit was meager.

Wei Zetao said: "Yes, they are all OEMs with very low profits. However, after they came here, they can directly purchase plastic particles imported from Taiwan, which reduces costs a lot and makes a little more profit."

"Yes, but it's not enough." Yang Wendong continued: "In the past, Hong Kong's factories were sandwiched between the trading companies at both ends, with raw materials on one side and export channels on the other.

Now that we have control over the raw materials, we will release some profits to them appropriately, but the export channels are still not available.”

Although the purpose of doing business is to obtain the highest profit, Yang Wendong's principle is to seek mutual benefit as much as possible. Even if he has the initiative, he will not exploit his partners.

In the early years, the profits of the plastic factories that produced for it were calculated by Changxing Industrial. They were not very high, but not very low either.

The same goes for the plastic particle trade. He will not follow the example of the foreign companies of the past and force Chinese factories to death. This is not cost-effective in the long run, especially since these factories can be moved to Taiwan or other Southeast Asian regions in the future.

After listening to this, Wei Zetao also understood and said, "Mr. Yang, do you want to be an export channel for toys?"

"I can't do overseas channels, but exports to Hong Kong are still possible." Yang Wendong smiled and said, "Don't we have many overseas customers for our Rubik's Cubes in recent years?
They are all overseas toy chain stores in many countries, or local toy import traders. Since they already have channels, it shouldn’t be difficult to add some toys, right?”

Actually, when Yang Wendong created the Rubik's Cube, he didn't expect it to make a lot of money. It can't even compare to sticky notes and suitcases, let alone sticky hooks.

But it has a unique characteristic: it is a representative of high IQ toys.

It also has the ability to self-propagate, although the speed is very slow.

Over the past few years, Yang Wendong would occasionally inquire about the progress of the Rubik's Cube. Although sales were not very high, many toy dealers around the world would choose to purchase it because there were no other similar products that could replace it.

Of course, there is the problem of piracy, but the sales volume of the Rubik's Cube is not very high. Even if each one is not cheap, the total quantity is not large. Many large dealers will not do such illegal things that do not bring much profit.

This also enabled Changxing Industry to gradually establish contacts with many distributors around the world, which is the most important channel in the toy industry.

"Yes, we have channels in many European and American countries." Wei Zetao nodded and said, "Mr. Yang wants to expand Changxing Trade and also participate in the toy export business?"

Changxing Trading was originally established to undertake the plastic trade between Formosa Plastics and Hong Kong. Its main customer is also Changxing Industrial. Therefore, the trading company is under Changxing Industrial and is also managed by Wei Zetao.

After all, it is impossible for such a small company to report directly to the big boss, but being able to have the word "Changxing" in its name means it is definitely valued by the boss.

Yang Wendong nodded and said, "Yes, now the channels are almost ready, so I naturally need to try my best to take advantage of this, whether it's our own toys or other companies'."

Now that the channels have been established, the resources are there, and by introducing other people's toys, you can also make a profit.

Of course, channels cannot be manipulated arbitrarily. They are also a kind of resource and are selective. Not all toys from Hong Kong can be sold.

"Okay, I understand. I will ask our customers and the factories in Hong Kong to see if there is any match between their demands and production." Wei Zetao nodded and said.

"Well, OK." Yang Wendong said, "What do you think about our own toys?" Wei Zetao said, "Now we have enough factories in this plastic industrial park, and we have trained enough talents in the past few years. No matter what toys we make, there will be no problem with production capacity.

But if we don’t do OEM for toy products, we can only compete with other Hong Kong peers for business and make various small toys.”

Most of the toys in Hong Kong are OEM, but there are also a small number of original and patented ones.

For example, toy water guns are in extremely high demand and there are many varieties. Without a patent, anyone can produce them. But with so many people producing them, there is no profit even with a patent.

"Since I'm exporting to my Hong Kong counterparts, I won't compete with them for business." Yang Wendong smiled and said, "Behind these toys is actually a cultural industry. Barbie dolls and Mickey Mouse toys can sell hundreds of millions of dollars a year. Isn't that a kind of culture?"

"Yes, only with culture can we make good toys." Wei Zetao nodded and said, "Many toy companies in Europe and the United States do not have their own production factories, and they are completely produced by others.

They just need to do a good job of cultural propaganda and let many children and even adults like their animations. "

"That's a good point. If we want to make toys well, we must do a good job in the cultural industry." Yang Wendong said, "Otherwise, we can only take advantage of the lowest-end OEM profits in the toy industry or the low-end toy market.

If that's the case, then it's better not to do it and focus on other industries."

"But cultural industry is synonymous with economy." Wei Zetao reminded: "Generally speaking, only countries or regions with good economies can create good cultural industries.

Take Hong Kong for example. Our current TV penetration rate is less than 1%. This cultural industry is not easy to promote.”

"I know, but it's not impossible." Yang Wendong paused and said, "Well, first check how many people in Hong Kong can draw, especially those who are good at drawing, and find out their information.

It would be even better if we could find their products.”

"Mr. Yang, do you want to make comics first?" Wei Zetao thought for a moment and said, "That's a good idea."

"Yes, since we can't do TV programs for now, we can only make comics." Yang Wendong nodded and said.

Regarding TVB's affairs, he might try to find a way to push it forward, but it won't be that fast. Besides, it takes time to set up a TV station. Even if the license is obtained today, it will probably take a long time to wait before the broadcast can begin.

Comics are much simpler. As long as you have creativity and drawing talent, you can create a work of art.

As a time traveler, although he could not remember the specific plot of any comic or animation, he still knew the general plot of some famous comics.

As long as there are talented painters and story writers, even if we can’t replicate the blockbuster classics of the previous life, it may still be possible to get something close to that level.

"Okay, I'll arrange someone to investigate this information right away." Wei Zetao agreed.

"Well," Yang Wendong said again, "You should also contact Qin Zhiye and do this together.

He has media channels and some connections with culture, so it should be faster for him to find people like him. Moreover, the development of the cultural industry will have a lot to do with them in the future. On your side, you may just be producing toys."

"I understand." Wei Zetao said with a smile: "We have no problem making products here, but not culture."

"Okay, let's do this first. The New Year is coming soon. We can let the Oriental Daily release the news and let them come to our door on their own initiative." Yang Wendong said again.

Wei Zetao agreed and said, "Okay."

The two chatted as they walked, and soon arrived at a queue.

Yang Wendong asked: "What are you doing here?"

Wei Zetao replied: "Mr. Yang, this is distributing New Year's goods."

"New Year's goods?" Yang Wendong asked again: "What kind of things are you giving out?"

Last year, Changxing Industrial's profits hit a new high, and it also built the 10,000-person industrial park below. Therefore, before the Chinese New Year, all employees were given an extra month's salary.

In addition, there are enough New Year's goods to ensure that employees and their families can have a good New Year, and that everyone can work harder after the New Year begins next year.
As the boss, he naturally knew about this, but he had signed it a long time ago and now had forgotten the details;
Wei Zetao said: "Each employee was given 20 kilograms of rice, 10 kilograms of flour, and 2 kilograms of bacon, or salted fish and salted chicken;
These are the only things that can be preserved for a long time, but it is not easy to send out more of the others.”

"That's enough." Yang Wendong nodded.

At this time, the average middle class in Hong Kong could not afford a refrigerator, so naturally they had no way to store food. This also caused expensive food to spoil easily.

Wei Zetao added: "Mr. Yang, there is one more thing. Our budget was set in November last year, and we started purchasing supplies recently. During this period, the price of food in Hong Kong has increased by about 11%-15%, so the budget has increased a bit."

"It has increased so much?" Yang Wendong was a little surprised.

In places where the Engel coefficient is high, a slight increase in food prices has little impact on rich people, but for ordinary people, food basically consumes most of the family income.

Wei Zetao explained: "It's mainly because the prices of food in the mainland have risen a lot. You know the situation in recent years. Not only food, but also many materials that need to be imported from the mainland have become much more expensive."

"Yes, Lao Zheng once told me that the construction materials imported from the mainland to Hong Kong have also increased in price." Yang Wendong nodded: "It's just that the housing prices have risen sharply, and the increase in construction materials has little impact."

Even though the economy in the mainland is bad and supplies are scarce, many of Hong Kong's supplies still come from the mainland, for no other reason than that the distance is short.

Hong Kong is also an important place for the country to earn foreign exchange, and the two complement each other.

Although Hong Kong’s economy is not bad, it is severely polarized. For ordinary people, the price increase of goods is unbearable. This is why many countries care about inflation.

Wei Zetao said: “Yes, we purchase our supplies directly from China Resources, and we can’t get many preferential prices, but it is much cheaper than the vegetable market or even your supermarket;
So Sister Wang proposed an idea, that is, we can distribute more supplies appropriately, but this is paid, employees need to pay the cost price, we do not make any profit, and buy directly from China Resources. "

"Okay, we can try." Yang Wendong naturally agreed.

He has no way to deal with the rising prices in Hong Kong as a whole, but since he has tens of thousands of people under him, it will be much cheaper to purchase some supplies in a centralized manner, which will benefit everyone.

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(End of this chapter)