Chapter 357: The Core of Manufacturing: High Technology and Supply Chain
As the company continued to grow, so did the diversity of its product offerings. This was especially true in the home appliance sector. In his previous life, Chinese companies like Midea, Haier, and Galanz had each produced hundreds of different products—when including different models and versions, new product launches could happen every few days.
In the beginning, upper management paid close attention to every release. But as the product line grew, unless it was a flagship item, most launches became routine.
Now, Glory Electronics was moving in the same direction, gradually expanding its product portfolio.
Wang Zhiqun reported, "Yes, the microwave and the electric hair dryer are both set to launch at the end of the month."
"Launching two products at once—won't that dilute the marketing?" Yang Wendong asked.
"Actually, quite the opposite," Wang Zhiqun said. "Both products are targeted mainly at women, so they might actually boost each other's sales."
"Women as the primary consumers? That does make sense," Yang Wendong nodded.
This era was nothing like the 21st century—domestic work, especially kitchen chores, was still mostly handled by women. And hair dryers had always been a female-centric product.
"But the microwave is so heavy. Wouldn't it be difficult for women to carry?" Yang Wendong asked.
"No need to worry about that," Wang Zhiqun explained. "I've already discussed it with Carrefour. Whether it's a TV, microwave, or any large appliance, we'll provide free delivery. Of course, it's only 'free' on paper—those costs are built into the price."
"Fair enough. That works," Yang Wendong nodded. "I'm looking forward to your sales results. But Hong Kong is just a small market. If we really want to succeed, we'll need to focus on exports."
"Absolutely. We've already established several overseas distribution channels. We'll gradually ramp up our export operations," Wang Zhiqun assured him.
"Good," Yang Wendong said, clearly satisfied.
The home appliance sector had officially launched. Barring any surprises, it would continue growing steadily. In this era, it was considered a high-tech industry—with strong profitability and huge potential for job creation and economic stimulation.
Once it reached scale, it could represent a major turning point in Hong Kong's industrial transformation during the 1960s and '70s.
Wang Zhiqun continued, "Yang Sheng, the motor company we discussed earlier—I've already registered it. We've also sent a team to Japan to order custom equipment. As for personnel, I'm planning to poach some talent from local competitors here in Hong Kong."
Yang Wendong smiled. "So we'll be making our own motors soon?"
"Yes, that's the idea," Wang Zhiqun replied. "But that's just the theory. Even if we produce them, they'll need to pass quality tests before we can use them in our own fans or other products."
"Alright," Yang Wendong said thoughtfully. "As for equipment, Glory can work closely with Dongsheng in the future. Changxing Industrial has already bought a stake in that company—they're basically our internal partner now.
If they can manufacture it, let them. If they can't but the demand is high, give them the opportunity to try."
Changxing Industrial's development had already driven significant growth in Hong Kong's machinery manufacturing sector. Looking ahead, Yang Wendong had asked Wei Zetao to invest in several local equipment companies, anticipating increasing needs across the group.
As for the investment process, Yang Wendong left it to his team. He only stepped in at the strategic level and relied on his finance team for final audits.
By August 25, both the microwave and the electric hair dryer were launched simultaneously. The first sales point was, as always, Carrefour.
That morning, a 30-year-old woman was browsing the store. She lived nearby and had dropped by out of habit—if something caught her eye, she'd buy it.
Soon, her basket was filled with snacks.
She wandered into the electronics section, glanced at the television display, and smiled. Just a few days ago, she had bought a 17-inch TV here. It was over HKD 200 cheaper than Japanese models.
While browsing casually, she spotted a white metal box that immediately caught her attention. She had never seen anything like it before.
The box had a large glass window in front, and through it she could see what looked like a rotating plate inside. To the right of the glass were two dials.
Curious, she walked over. A female store clerk approached with a smile. "Hello, miss! Are you interested in this microwave oven?"
"This is called a microwave? I've never seen one before," the woman said. "What does it do?"
"It's used for heating food," the clerk explained. "You just put a bowl or plate of food inside…"
As she listened to the explanation, the woman began to understand. "Really? It heats food in just a few minutes?"
"Would you like a demo?" the clerk offered. "We have one running over here."
They walked over to a nearby table where a microwave was plugged in, with several buns placed next to it.
"We'll heat up one of these buns in a bowl," the clerk said. "Here, feel this first."
"Cold," the woman confirmed after touching it.
The clerk placed the bun inside the microwave and set the timer for 30 seconds. When the door opened, the woman was greeted by the fragrant smell of a hot bun.
Only freshly heated buns smelled like that. She touched it again—definitely warm.
"Incredible! That was so fast!" the woman said, surprised.
"Buns are small, so 30 seconds is enough," the clerk explained. "If it's a full bowl of rice and vegetables from the fridge, it'll take a bit longer—maybe two to three minutes."
"How much is this?" the woman asked.
"HKD 688," the clerk replied with a smile.
"So expensive?" the woman exclaimed. "I just bought a 17-inch TV here last week for just over HKD 600!"
The clerk responded, "It might seem expensive, but think about how much time it saves you—no need to wash pans or spend time reheating food every day. Over the course of a year, it pays for itself."
And that was the truth. For a modern household, especially one without a helper, the microwave would be a game-changer.
Yang Wendong's design philosophy was always centered around improving daily life: save time, save effort, and offer comfort or entertainment. If a product achieved even one of those goals, it had value.
Microwave ovens checked multiple boxes—and would soon become a staple in every home.
The Hong Kong home appliance industry was just beginning, but thanks to products like this, it was off to a very promising start.
"Hmm, can't it be any cheaper?" the woman asked. She was truly tempted.
The saleswoman shook her head. "I'm afraid not. We don't have the authority to discount this item. Even in Japan, you won't find a microwave like this for sale. This is a product independently developed by our Glory company here in Hong Kong. It's a completely original design that took significant investment to create."
"Alright then, I'll take one," the woman said after a moment of hesitation. She had made up her mind.
It was just too convenient to pass up.
The saleswoman smiled. "Great, I'll get it wrapped for you."
Elsewhere in the store, the electric hair dryer was also drawing attention. Many women were intrigued.
It wasn't that hair dryers didn't exist on the market. It was just that most were large and unwieldy—far too heavy for women to hold for long periods. The new model didn't have any revolutionary features, but it was noticeably lighter.
"HKD 129 for something this small? Isn't that kind of expensive?" a few long-haired young women grumbled.
The saleswoman explained, "Ladies, price isn't always about size. Our hair dryer is compact precisely because of its value. Most dryers use heavy wooden handles. Ours is fully hollow plastic, and the internal structure is much more compact—but the airflow is just as strong. That's technical innovation, and it costs more.
Besides, if you're all living together, why not split the cost? One hair dryer for four people—just HKD 30 each."
"HKD 30 is still a lot. That's a few days' wages," one woman muttered.
They complained, but after some discussion, the four of them ended up buying it anyway.
September 1
Yang Wendong received the sales data for both the microwave and the electric hair dryer. In the first week, they had sold 503 microwaves and 227 hair dryers.
"The microwave actually sold quite a bit better than the hair dryer," Yang Wendong remarked with a chuckle.
Wang Zhiqun explained, "Yes. Mainly because the microwave is a brand-new product. Not just in Hong Kong—even people in Europe, the U.S., and Japan have never seen anything like it. When they see it in person, the convenience is obvious. Even if it's pricey, they're willing to pay.
But with the hair dryer, it's different. We reduced the weight using heat-resistant plastic, but the improvement isn't that dramatic. And our brand doesn't carry the same weight as long-established competitors. Plus, our price isn't much lower than imported models."
"That proves the golden rule," Yang Wendong nodded. "The most profitable products are always those with innovation—either entirely new gadgets, breakthroughs in technology, or a combination of both."
"Exactly," Wang Zhiqun said. "In our group, especially in Changxing Industrial, high profits always come from innovation. Even with Glory, only a few items like the electric mosquito swatter and the microwave oven have strong margins. The TV, for instance—its profit margin is mediocre. It doesn't command a premium price unless our brand value goes up."
"High-tech industries rely on exactly that—technology," Yang Wendong said. "To build a real brand, you need either technical superiority or innovation."
Wang Zhiqun nodded. "Yes. Every world-class appliance company rose to prominence through key technologies."
"That's why, internally, we must prioritize R&D. High technology is the true engine of productivity," Yang Wendong continued. "Although the microwave was our first product in this category, we don't own the core patent. Our only IP is for the microwave heating system that we developed ourselves. If someone else finds another method, they'll still be a threat to us."
"I understand," Wang Zhiqun said. "From what I've heard, a few Japanese companies are also working on microwave heating technology. Even if they're a little behind us, they're probably close to finishing."
"Keep an eye on them. Once competitors start releasing microwaves, our profits won't come as easily," Yang Wendong warned. "But the market is massive. It's still a blue ocean for the next few years—more than enough for us to make good money.
Still, I don't want to just rake in profits for the next few years. I want every cent of those profits to be reinvested into R&D—developing new products and new technologies."
"Got it. No problem," Wang Zhiqun agreed, then asked, "Do you have any suggestions for what technologies or appliances we should focus on next?"
The home appliance industry was huge. There were too many potential directions. Only the boss could decide on the strategic priorities for the whole team to execute.
Yang Wendong replied, "Yes, there are many appliance types. But most of those markets are already mature. So we'll take a two-pronged approach:
First, prioritize innovation—start with kitchen appliances. Focus on solving pain points. Just like reheating food used to be a hassle, and the microwave solved that. Now find the next pain point.
Second, while we can't innovate everything, we still need to enter the traditional white goods segment. Follow your current plan: start by developing motors. Once we master that, move on to compressors, electric controllers, and other components. If we control the key parts, then once containers become widespread and shipping costs drop, we'll be ready to export full-sized white goods."
Wang Zhiqun replied, "Understood. The motor assembly workshop is already set up. As soon as the equipment arrives, we'll begin production."
"Good." Yang Wendong continued, "Besides technology, controlling the full supply chain is critical. If someone in Hong Kong can produce the parts, we don't need to duplicate the effort. But if it has to be imported, we should try to produce it ourselves. Even if the raw materials are imported, the fewer dependencies the better.
If Hong Kong isn't suitable for certain production, consider setting up plants in Taiwan. We'll make Taiwan part of our industrial base too."
China's economic reforms were still 15 years away. Yang Wendong couldn't afford to wait that long to build his supply chain. Taiwan was a viable alternative. With his own shipping fleet, transport costs were manageable, and logistics could be tightly controlled.
Over the next decade, Taiwan's tech industry would develop rapidly—especially in electronics and appliances. Yang Wendong was determined to make full use of that.
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