Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 33 Emergency Response (Please add to your favorites, vote for this chapter, and recommend it to others!)
That afternoon, in the conference room of the Golden Elephant Company's Hong Kong office.

"Mr. Chen, I understand your concerns."

The port manager of Golden Elephant, a middle-aged man with slicked-back hair and a broken Cantonese accent, named Somchai, had a formulaic smile on his face, but his eyes held a hint of arrogance. "However, the 30% increase is the final decision made by the Bangkok headquarters based on changes in global market supply and demand and costs."

We are also very sorry, but this is due to force majeure.

I believe that with Chen Ji's current brand influence and product premium capabilities, absorbing these costs shouldn't be a problem.

Chen Bingwen sat opposite him, his expression calm but his eyes cold: "Manager Songchai, we understand force majeure."

However, a 30% increase far exceeds the reasonable range of market fluctuations.

Chenji is an important customer of Jinxiang, and our purchasing volume continues to grow.

What we want to see are long-term, stable partnerships, not opportunistic exploitation.

"Taking advantage of someone's misfortune? Mr. Chen, you're exaggerating." Songchai's smile remained unchanged. "It's just a market behavior."

Now, not only Thailand, but also coconut-producing areas in Indonesia and the Philippines are suffering from varying degrees of damage, and international buyers are scrambling to buy them.

The price we offered Chenji already took into account our cooperative relationship.

Regarding the previously signed contract, for the unfulfilled portion, the company will compensate you with liquidated damages as stipulated in the contract.

If Mr. Chen finds this unacceptable, perhaps we could consider adjusting the product formula?
For example, reduce the proportion of coconut milk, or choose some alternatives?
He was alluding to the use of flavorings or cheap coconut milk powder.

Chen Bingwen sneered inwardly.

Lowering quality?

Use alternatives?
This is tantamount to personally destroying the high-end brand that Chen Ji has just built up!

How Chen's Dessert Shop operates is none of your business, even as a raw material supplier!

Chen Bingwen ignored Songchai and said directly, "Manager Songchai, I hope you can convey our position to the Bangkok headquarters: Chen's cannot accept this price increase."

If Golden Elephant insists, we will have to consider suspending cooperation and seeking other suppliers, or even considering building our own procurement channels in Thailand.

Songchai's smile finally froze for a moment.

Suspend cooperation?

Build your own channels?

Although Chan Kee is not a top-tier brand, it is gaining momentum in the Hong Kong Island catering industry, especially its high-end dessert line, which has a significant demand for high-quality coconut milk.

Moreover, Chen Bingwen's undeniable aura made him feel vaguely uneasy.

But he quickly regained his composure: "Mr. Chen, I understand your position. I will report to headquarters truthfully."

However, I suggest you reconsider carefully.

Finding new, reliable suppliers is no easy task, especially during this special time.

The quality and supply stability of our Golden Elephant products have been proven by the market.

Negotiations have stalled.

Somchai insisted on a 30% cap, only agreeing to "consider" implementing the increase in stages.

Chan Bing-man knew that he could not get any more concessions on Hong Kong Island.

After leaving the Hong Kong office of Golden Elephant Company, Chan Ping-man did not immediately return to the Kwun Tong factory, but instead sat alone on a bench in a nearby park for a while.

Amidst the noise of vehicles and the hurried pace of pedestrians, he calmed himself down and processed the sudden crisis.

The core issue is crystal clear: coconut milk is the soul of mango pomelo sago and coconut milk sago, accounting for a huge proportion of the cost.

A 30% increase means that the profitability of these two products, which have just entered the high-end market and become the profit pillars and brand name of Chenji, will be cut in half or even completely eliminated.

Accepting price increases will severely damage short-term profits, and in the long run, it's tantamount to handing over the hard-earned brand premium to greedy raw material suppliers.

If they do not accept, they will face the risk of supply disruption, their new product promotion plan will be severely damaged, and they may even lose their market advantage.

Limited supply? That would be tantamount to cutting off one's own arm, admitting that the product is not good enough, and would also damage the brand image.

“The source,” Chen Bingwen murmured to himself, his gaze fixed on the distance.

It's hard to tell whether Songchai's excuses are true or false, but there's no point in sitting here on Hong Kong Island and talking nonsense.

To break the deadlock, we must break free from the information cocoon woven by Jinxiang, go to the source, understand the real situation, find alternative solutions, and even build our own defenses.

Having made up his mind, he stood up, hailed a taxi, and headed straight for the Kwun Tong factory.

At the Kwun Tong factory, Gao Zhenhai, Zhong Qiang, and Achang were anxiously waiting at the office door.

Upon seeing Chen Bingwen, the three immediately came to greet him.

"Brother Wen, how is it? Jinxiang's side..." Gao Zhenhai's words were cut short when he saw Chen Bingwen's somber expression, and his heart sank as well.

"They are sticking to the 30% limit, with no room for negotiation. As for the breach of contract, they are only willing to pay a small amount of liquidated damages according to the terms."

Chen Bingwen walked into the office, took off his coat, and succinctly recounted the negotiation results.

Zhong Qiang's face turned pale with anger: "These bloodsuckers! We just got the market going, and they pounce on us and take a bite!"

“Complaining is useless.” Chen Bingwen interrupted him, walked to his desk, picked up a water glass and gulped down a glass of water comfortably, before turning to Achang and asking, “What’s the information we have?” Achang quickly stepped forward: “Boss, it’s preliminarily confirmed that the main coconut-producing areas in southern Thailand were hit by a strong typhoon, but the specific damage to the coconut plantations is unknown.”

Sources from our counterparts on Hong Kong Island have confirmed that the price increase of coconut milk by Golden Elephant Company is not targeted at Chan Kee, but at all businesses on Hong Kong Island that use coconut milk.

Regarding price inquiries, I contacted three other Thai coconut milk suppliers with operations in Hong Kong, as well as two from the Philippines and Malaysia.

The prices are all very high.

The prices quoted by the other three suppliers in Thailand are on average 5%-8% lower than the prices after Golden Elephant raised their prices, but we lack long-term cooperation to verify their supply volume and quality stability, so the risk is not small.

The prices quoted by the Philippines and Malaysia, after adding a 20% import tariff, are about 12% higher than the current prices in Thailand, making them uncompetitive.

The bad news came one after another.

“It seems that the ‘general situation in the industry’ that Songchai mentioned exists, at least in the current Hong Kong market. They have formed some kind of tacit understanding or price alliance.” Gao Zhenhai clenched his fist.

Chen Bingwen frowned.

The market inquiry results confirmed Golden Elephant's strength, but also revealed a key piece of information: the price margins of other suppliers in Thailand are not uniform, with differences ranging from 5% to 8%.

This might be the breakthrough.

“Alright, the situation is clear.” Chen Bingwen raised his head and glanced at the three of them. “Now, split up and act.”

Brother Qiang, effective immediately, all free tasting and promotional activities related to mango pomelo sago and coconut sago will be suspended at the five standard stores.

At the same time, strict daily supply limits will be imposed on these two products.

The limited quantity is designed to maintain basic market demand and meet the needs of core customers. The specific quantity will be precisely calculated by you based on each store's historical sales data and remaining inventory, ensuring that inventory can last for at least 45 days.

"Achang, your work is very important. First, use all your connections to conduct an in-depth investigation into the true extent of the disaster in the main production areas of southern Thailand."

I need specific data: Which areas were affected? What is the percentage of damage? An assessment of the impact on overall production? Are there any unaffected or lightly affected production areas?
Second, focus on contacting the three Thai suppliers with slightly lower prices.

Don't just focus on the price quote; delve deeper into their production capacity, major customers, quality control processes, and past track record of supply stability.

I need to determine who has the most potential to become our supplier.

Third, we should simultaneously understand the export policies, output, quality, and transportation costs of Hainan coconut milk as a backup plan.

Fourth, find someone to inquire about the situation at the Sompha Coconut Plantation in Mae Rim District, Chiang Mai.

Let's get a few things sorted out in the next couple of days, then you and I will go to Thailand together!

Chen Bingwen calmly arranged everything.

In his previous life, as an investment manager, he flew to Southeast Asia many times for research. In Mae Rim District, Chiang Mai Province, northern Thailand, the Sompha Coconut Plantation, which had been operating for decades, left a deep impression on him.

The coconut grove, covering an area of ​​nearly 500 acres, stretches across the rolling hills.

The owner of the coconut plantation at the time told him that the Songpa Coconut Plantation was a business passed down from his grandfather's generation, and the oldest coconut trees were over sixty years old.

Judging by the time, the Sompha Coconut Plantation should have grown to a considerable size by now. Since we're going to Thailand anyway, we might as well visit Chiang Mai Province.

If possible, signing a contract with Songpa Coconut Garden for coconut milk would not only immediately solve Chen Ji Foods' current coconut milk raw material problem, but would also be more than enough for future bottled sugar water production.

"Go to Thailand?" Gao Zhenhai and Zhong Qiang were both surprised to hear Chen Bingwen's decision.

“Yes!” Chen Bingwen walked to the map on the wall and pointed to the location of Bangkok.

"Trapped on Hong Kong Island, we are just lambs to the slaughter."

We must go to the source! I need to see the production area with my own eyes and verify the truth of Jinxiang's claims.

He personally inspected the potential suppliers selected by Achang, and conducted on-site assessments of their factories, equipment, management, quality control, and reliability.

The goal is to identify at least one qualified alternative supplier within 45 days and negotiate a competitive long-term framework agreement.

The most crucial step is to explore the possibility of establishing our own direct sourcing channels at the production sites. For example, can we bypass intermediary traders and establish direct connections with large plantations or cooperatives?

This will be a crucial step towards completely breaking free from being controlled by others!

Gao Zhenhai immediately said, "Brother Wen, I'll go with you! The situation over there is complicated, and it'll be good to have more people to help each other!"

Sawadika has not been a good place in recent years, with eight prime ministers in six years and constant civil conflicts.

Going to Thailand does indeed pose some risks.

Chen Bingwen thought for a moment and shook his head: "No."

We need you to take charge in the rear.

During my absence, someone must coordinate the daily production management and quality control of the two factories in Kwun Tong and Cheung Sha Wan, as well as the groundwork for the preparation of the new franchise system.

Zhong Qiang focuses on technology and production, coordinating the connection between the R&D center and the factory, and the research and development of bottling cannot stop.

You must take on the responsibility and ensure that the entire system operates stably and efficiently during my absence, and be ready to respond to any emergencies that may arise.

Your responsibility is heavy; you must not be careless.

Gao Zhenhai felt the heavy responsibility on his shoulders and nodded vigorously: "Understood! Don't worry, Brother Wen, I will keep a close eye on things at the factory!"

　Thank you all for your support!
　　
　
(End of this chapter)