Chapter 356: Supply Chain Industry Expansion
Time quickly moved into early August.
Yang Wendong arrived at a Carrefour supermarket in Admiralty. The local store manager, Li Bochao, as well as several people from the corporate headquarters, were already waiting for him. Also present was Wang Zhiqun from Glory Electronics, since today marked the official launch of Glory's first television sets.
"Lao Wang, how many TVs are sold in Hong Kong annually right now?" Yang Wendong asked out of curiosity.
Wang Zhiqun replied, "Last year, the entire Hong Kong market sold about 18,000 units. This year, it's expected to increase—20,000 shouldn't be a problem. With Hong Kong's economy getting stronger, the first thing people want to buy when they have money is a television."
"Right. For most households, a TV is a huge draw," Yang Wendong nodded.
In his previous life, many people had become desensitized to entertainment. TVs didn't impress anyone anymore. But in this era, TVs were more captivating than computers or mobile phones would be decades later.
He still remembered being a kid in the early 1990s—back then, having a television at home made you the pride of the neighborhood. People would drop by just to watch.
Wang Zhiqun added, "And that's still with the high cost of imported TVs. Even though Hong Kong doesn't impose high tariffs on imports, Japanese brands sell at very high prices. Add shipping costs, and one unit easily costs over HKD 500. HKD 700 or 800 is normal—some even go for over a thousand.
If the price could drop just a bit, I think we could double the annual sales."
Yang Wendong glanced at the price tags on their new TVs. "Ours start at HKD 469. The larger ones are six or seven hundred. That's not much cheaper than Japanese imports. Are the costs still that high?"
Wang Zhiqun nodded. "Yes, we're still relying on fully imported components. Only a few are locally produced. We can't really lower prices until we can manufacture CRTs ourselves.
Besides, we need to ensure profit margins. Even if we could make them cheaper, it's better to undercut foreign brands slightly—not dramatically. That's how we maximize earnings."
"Fair enough," Yang Wendong nodded. "Let's start by gaining market share and building our reputation. Once that's done, we can work on mastering the entire supply chain."
Most products couldn't be developed from the supply chain up. You had to start with finished goods, then work backward into the production line—unless you were already a supply chain company trying to move into consumer products.
In the mainland's automotive and home appliance sectors, that was exactly the path they followed: assemble first, import parts, and gradually localize. Hong Kong had to do the same.
"Got it," Wang Zhiqun said with a smile. "We've already confirmed the quality. Qin Sheng is also supporting us with strong advertising. We're expecting a solid performance."
Yang Wendong smiled. With partial control over Hong Kong media, it was now much easier for him to promote products locally. As long as the product was reliable and included some innovative touches, success was nearly guaranteed.
And afterward, performance in Hong Kong could serve as both market validation and technical trial. That would give them confidence to expand elsewhere.
At 9 a.m., the Carrefour store opened its doors. A wave of customers entered—some heading for the produce section, others heading straight to the electronics department.
The Oriental Daily and Hong Wah Daily had heavily promoted the TV launch in recent days, calling it the first locally-made TV set in Hong Kong. Affordable and limited in quantity, the ad campaign had stirred plenty of curiosity.
Electronics section:
On a large horizontal display stand were 15 televisions—three models in total: 14-inch, 17-inch, and 19-inch black-and-white sets.
All the screens were tuned to Rediffusion Television, the only available channel.
Around the stand, dozens of customers had gathered, looking intently at the TVs. Price tags beside each unit read: HKD 469, HKD 669, and HKD 869.
"HKD 469? That's pretty cheap! Japanese TVs that size cost at least HKD 600!"
"Still seems expensive to me. If Japanese ones are 600+, why are Hong Kong-made ones still over 400? Shouldn't they be HKD 200 or 300?"
"What are you, a Japanese shill? Should we give you a free TV too? Spineless much?"
"Hey, what did you just say?"
"I didn't insult you!"
Crowds always had all types. From a distance, Yang Wendong hadn't expected to witness a near-fight break out. Fortunately, the supermarket's security was on point and promptly escorted the two men out.
Wang Zhiqun, having learned of the incident, informed Yang Wendong, who laughed and said, "That mindset—many people have it. Always assuming that foreign-made means better."
"Well, in some cases, they're not wrong—especially with high-tech products," Wang Zhiqun said awkwardly.
Yang Wendong nodded. "True. That's why we need to develop our own technology and create high-quality brands that belong to us—especially in electronics."
In his past life, even when China became the world's second-largest economy and was producing cutting-edge tech, some people still looked down on domestic brands.
It wasn't necessarily wrong. New brands—even technically superior ones—needed time to win over consumers. That was the value of brand building and long-term market presence.
"I understand," Wang Zhiqun said. "Once our TV production stabilizes, I want to try entering the white goods sector."
"White goods?" Yang Wendong asked. "The basic technology isn't too hard, but those products are large and heavy. Shipping them is expensive. We'll have to rely on exports, which won't be easy."
Televisions were already hard to move, and white goods were even bulkier. Without widespread containerization, transportation was a nightmare.
"I know. That's why I want to start with parts," Wang Zhiqun explained. "Our fans and hair dryers already require motors. So I want to begin motor production.
First, we need them ourselves. Second, motors are small and easy to export. Third, if we ever manufacture finished white goods like washing machines, refrigerators, or air conditioners, they all need motors."
"Starting with components, huh?" Yang Wendong considered. "That's actually a solid plan. But it's going to be tough. You'll be competing directly with global manufacturers on tech."
"Yes, but if we want to gain a foothold in appliances, we need the tech," Wang Zhiqun said. "And motors have broad applications. We need them. The tech barrier is relatively low, so we can start small, meet our own needs, then gradually target overseas brands as a supplier and expand into R&D."
"Alright, sounds good," Yang Wendong nodded. "It's different from our previous product strategy."
Previously, whether with Changxing Industrial or Glory Electronics, the path had been: enter the market with a creative product, gain sales, build supply chains, and then expand into adjacent sectors. It was a classic corporate growth model.
Now, even though motors were tied to their fan products, the fans weren't being pushed by Yang Wendong himself. It was a normal industrial development. Since fan sales were modest, motor orders wouldn't be massive either. Succeeding in this sector would require real skill.
Wang Zhiqun smiled. "True. But don't worry, Yang Sheng. The motor industry is labor-intensive, which suits Hong Kong's current strengths. We still have cost advantages over Japan and the West.
Actually, a few local firms in Hong Kong have been making motors for years—mostly for export—and they're doing quite well."
"Copper wire is still hand-wound, right?" Yang Wendong asked. He knew a bit about motor manufacturing.
"Yes," Wang Zhiqun nodded. "With some help from machinery. It's semi-manual. Labor demand is high."
"That's good," Yang Wendong said. "Give it a shot. The motor market is indeed massive."
Electric motors were essential to modern society—used in appliances, factories, cars, buildings, and later, even in computer fans and game consoles.
Historically, Hong Kong had produced a major motor manufacturer that lasted into the 21st century: Johnson Electric. Its core product? Motors of all kinds.
Of course, it had only survived by relocating its factories to mainland China early on.
"Got it," Wang Zhiqun said with a smile.
Yang Wendong added, "Any future internal projects with a sound market plan will get my support. Don't hesitate to try things. I'll back you."
As a time traveler, Yang Wendong had knowledge of future hit products. But a large industrial group couldn't rely on just a few. For the rest, he had to rely on his team.
And in Hong Kong, with many supply chains missing, they had no choice but to build them from scratch. It would be painful at first, but worth it in the long run. And building those supply chains required teams—not individuals. Even a time traveler couldn't personally solve technical and quality control challenges.
"Alright. We'll start with motors," Wang Zhiqun said with enthusiasm. "I'll set up a new department tomorrow and aim to become a top motor producer in Asia."
"Good ambition," Yang Wendong nodded. "But don't waste too much time. If tech can be bought, buy it. If you need to poach people, do it. Buying time is worth the investment."
"Understood," Wang Zhiqun replied.
For professionals like him, working under a boss like Yang Wendong was a dream—someone who didn't pinch pennies, valued the future, and gave them room to run.
Yang Wendong glanced over at the crowd still buzzing around the TV displays. "Alright, that's enough for now. Let's check back in a few days to see how the TVs are selling."
TVs weren't some innovative product. They were just cheaper. What mattered now was how the sales data played out.
"I'll keep you updated once we have the numbers," Wang Zhiqun said.
One week later—August 16:
Wang Zhiqun returned to Changxing Tower, smiling broadly. "Yang Sheng, we sold 223 TVs in the first seven days."
"223?" Yang Wendong did a quick mental calculation. "That's not bad."
"Yes," Wang Zhiqun said. "And that's just through Carrefour. Once we distribute to other retailers, sales should increase significantly."
"Alright. That's for you to handle internally." Yang Wendong nodded. "If I recall, the microwave ovens are launching soon too, right?"
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