Chapter 342: Unexpected Report on Charity Industry

Chapter 342: Unexpected Returns from Charity

Although the snakeskin bag is inconspicuous and has low technical content, it is an invention that is very beneficial to social transportation. It saves a lot of herbal packaging materials, which can reduce transportation costs and indirectly protect the natural environment.

Although it does not look as high-end as electronic product innovation, Changxing Industry itself is taking the route of small product innovation, and the raw materials are under its own control, so the snakeskin bag is a very suitable product.

Although snakeskin bags are not disposable products like plastic bags, they will become damaged or old after being used too much, and customers will also replace them. In this way, the market will become very large.
Wei Zetao said with a smile: "Okay, I have already placed an order for 10 production lines in Japan at one time, and also placed an order for 3 flat wire production lines in Germany. This is mainly due to their production capacity, otherwise I would have placed more orders."

The most special thing about the products launched by Changxing Industrial is that when the ideas for them first came out, insiders were almost 100% sure that they would be a hit.

For example, the early post-it notes, sticky hooks, and trolley cases, and later plastic bags, woven bags (snakeskin bags), etc., as soon as the samples came out, everyone could see that they would definitely be popular.

Of course, these are all the boss’s ideas. Although the products made in-house by Changxing Industrial sell well, they are not on the same order of magnitude at all.

"Well, this is normal. We need to do it step by step." Yang Wendong nodded and said, "We also need to pay attention to the training of our internal personnel. Although this thing is simple, it is easy to have problems if the number of products produced is too large."

Anyone who has worked in a manufacturing factory knows that no matter how simple a product is, when it is produced in large enough quantities, it will be extremely difficult to produce it stably.

"Okay." Wei Zetao agreed and said, "Our current production capacity is 5000 snakeskin bags a day. I plan to focus on the vegetable market and free rice transportation. This way, their exposure rate will be the highest."

"Okay, you guys can handle this yourself." Yang Wendong nodded and said, "Increase production capacity as soon as possible, and then we can export."

Today, Changxing Industry already has its own network of channels. Although it is not perfect yet, it already has multiple distributors in many countries, which is enough to promote its own products.

It was May soon, and the sultry summer began to get hotter.

On the 2nd, Yang Wendong came to the Watsons beverage factory, also located in North Point, Hong Kong.

Zhou Haoran also personally received Yang Wendong at the door and said, "Mr. Yang, judging from the data in the past half month, our can production is ready to be put on the market."

"What's the pass rate?" Yang Wendong asked.

Zhou Haoran replied: "According to our current statistics, there is a probability of about 1.4 in that the can will rupture and cause the beverage to leak out."

"There are 100 bottles out of 14 million. This probability is not very high." Yang Wendong nodded and asked, "What is the failure rate of the beverages?"

Leakage in beverage packaging can be seen directly, but if the beverage is a little spoiled, it is difficult to check, which is also a headache.

Zhou Haoran said: "We have sampled thousands of bottles of beverages and found no unqualified ones. This is mainly because our tea drinks have a heating process in the early stage to sterilize them. Unlike juice or other beverages, they have to be sterilized at room temperature. The process is very difficult and it is easy to fail to achieve perfection."

"Indeed, high temperature sterilization is the lowest cost method." Yang Wendong smiled.

Traditional beverages such as juice or milk must never be heated to boiling point. This problem has no solution at the global level today, so Hong Kong has milk companies that specialize in delivering fresh milk.

This technical problem was not solved until European packaging giant Tetra Pak launched a series of sterilization solutions, which made it possible to preserve milk and fruit drinks at low cost, allowing many people to drink cheap milk conveniently.

The reason why Yang Wendong knew about Tetra Pak was because in his previous life, after the mainland introduced the Anti-Monopoly Law, Tetra Pak was one of the first targets for investigation, because it did monopolize the global milk packaging market. For example, most of the profits of mainland beverage giants such as Yili and Mengniu had to go to Tetra Pak.
Zhou Haoran added: "It will take a long time and a lot of manpower and resources to investigate the probability of beverage spoilage, so the data we have obtained so far does not reveal any major problems. After the beverage is launched on the market and the base number is large enough, we will conduct a detailed investigation."

"Hmm," Yang Wendong thought for a moment and said, "Don't relax on this aspect. Although in Hong Kong, even if consumers find problems after eating, they may not necessarily complain, our products will be exported in the future. If problems arise overseas, they may not be easily resolved, especially in the European and American markets."

Zhou Haoran agreed: "Understood, we will follow you later."

"Yeah," Yang Wendong nodded, "Let's go and take a look at the assembly line."

"Okay, this way." Zhou Haoran said, pointing in the direction of the workshop.

After putting on their safety gear, they walked into the workshop, looked around, and tasted the drinks on the end of the production line. After being chilled, they tasted really good. Then Yang Wendong said, "Lao Zhou, talk to Carrefour and ask them to put our drinks in the refrigerator, so that they can be more attractive to buy."

"Okay, I guess it will be like this." Zhou Haoran agreed.

"Okay, let's wait until our drinks are on the market and then see the market feedback," said Yang Wendong.

As a manufacturer, we have done everything we can, including the most advanced packaging, appropriate taste research and some of our own channels. The rest depends on the market itself.

However, Yang Wendong is still confident. Hong Kong people like to drink herbal tea. Many people will drink some when they get up early and go out. Now that they have such a drink, it will be much more convenient for them.

Not to mention that we are still experiencing drought and water shortage, coupled with the heat, so buying herbal tea drinks that can relieve the heat will definitely be the choice of many people. Even Watsons ginger ale, which doesn't taste very good, is selling very well now.

After coming out of another door of the can factory, Yang Wendong saw at a glance a large number of people carrying barrels of purified water onto trucks, and some were carrying empty barrels down.

"The purified water business is really good." Yang Wendong said with a smile.

Zhou Haoran replied: "Yes, the weather has started to get hot recently, and the water shortage is much more serious than during the Chinese New Year. It is said that in many places, water can only be obtained once every one or two days, and many people still cannot get it. Even real estate speculators have begun to line up at official water points to sell their spots, or sell the water they have obtained at a high price."

"It's indeed a bit outrageous. I've also heard that someone even died in a fight," said Yang Wendong.

In his previous life in the mainland, Yang Wendong was born in the 80s. Although his family was poor when he was a child, the food was generally bad but he did not starve. As for water, he never had a problem with shortage of water. At most, it was too hot in the summer and there was a shortage of water in the fields, but he just had to go to the river to fetch water for irrigation.

Now that he has traveled through time, he has encountered a serious water shortage in modern cities. This situation is really irritating. Whether it is the Hong Kong government or him, they can only ensure that people will not die of thirst, even if they use a lot of resources. However, there are too many places that need water for normal life.
Zhou Haoran nodded and said, "Yes, there are a lot of people coming to our factory to buy water. Now I am fully committed to producing purified water. I don't have to worry about the distribution channels. Many cars even start queuing up at my factory at night."

"It's good this way. Rich people can buy our water directly and don't have to compete with ordinary people for water." Yang Wendong said with a smile.

Zhou Haoran agreed: "Yes, personally, I would rather spend more money than queue up. If that doesn't work, I can only buy water from scalpers."

Yang Wendong asked again: "How much water can you sell in a month now?"

Zhou Haoran whispered, "We estimate that we can sell 200 million this month, and the net profit is estimated to be around 150 million."

"So high? Your profit is higher than Changxing Real Estate." Yang Wendong asked in surprise, but after thinking about it carefully, it didn't seem outrageous.

Zhou Haoran said: "Yes, the profit margin is extremely high. This is not because I took the opportunity to raise the price, but even if I keep the profit margin low, the merchants who buy it will definitely sell it at the highest price;

In addition, the supply here is in short supply, so there is no reason to let the middleman take advantage of it. I have the most expensive water resources here, but I make little money? This does not meet the market demand.

Besides, Mr. Yang, you are transporting water on a large scale, and you also spend your own money to buy water to help the poor people in the shantytowns. It is only right that you earn money back from the rich now."

"What you said does make sense." Yang Wendong smiled and said, "I didn't expect that I would make more money by accidentally relying on you while transporting water for charity."

Even if we don't consider the future profits of the old ships in the Middle East crisis, and only talk about water transportation, the Hong Kong government also pays, so I can only say that I won't make a lot of money in the water transportation business;
However, we also need to spend money to buy water, and then provide water for free to shanty towns and some poor areas. This is the real cost.

In order to achieve this goal, he must control the water source. With the water source, he can supply water to Watsons, which will make a profit. This was something Yang Wendong did not think of when he was preparing to do this in the early years.

With the emergence of the term "purified water", Hong Kong's control over water companies was bypassed, and there were no legal restrictions. As a result, in today's society where water is scarce, the profits brought by purified water actually exceeded the investment in the squatter huts.

Zhou Haoran smiled and said, "Mr. Yang, you wanted to invest in charity early on, and now you can make a profit by combining various opportunities. This is also God's reward for good people like you."

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(End of this chapter)