Chapter 174: A New Partnership with 3M
Tsim Sha Tsui, Changxing Industrial Headquarters
Early in the morning, as Yang Wendong arrived at the office, a secretary approached with a document in hand. "Mr. Yang, here are today's top news headlines from the morning papers for your review."
"Thanks," Yang nodded politely.
As a businessman, staying informed about external developments was crucial—especially in this era. Any unexpected political or economic event could influence public perception and disrupt the market.
Even as a time traveler who knew that no catastrophic events were imminent, Yang couldn't afford to ignore what others didn't know. The perception of crisis could impact investor confidence and consumer behavior.
That's why he had instructed his secretary to gather all the daily newspapers each morning, clip out any relevant articles, and summarize them for him.
"You're welcome, Mr. Yang." The secretary gave a courteous nod and left.
Yang then flipped through the clippings, which focused mainly on international affairs.
Knock knock knock—
A few minutes later, a knock came at the door. Yang looked up and smiled, "Come in."
Wei Zetao entered with a grin. "Mr. Yang, we've got the sales figures for the rolling suitcase. In just seven days, we sold 1,853 units across Hong Kong."
"Over 1,800 units? So that's roughly 40,000 HKD in revenue," Yang quickly calculated in his head.
The initial model launched was a 20-inch suitcase—not too large. The introductory price was set at 22 HKD per unit.
This size was chosen deliberately. At the time, all luggage was carried by hand, so people were used to smaller formats.
Yang planned to launch larger sizes later, once people adapted to the concept.
"Yes," Wei confirmed. "Sales through Mr. Zhao's airport channels were especially strong. Sales in regular malls were weaker, but we have more points of sale there, so the total volume was still good."
"Great." Yang nodded. "Still, the Hong Kong market is too small. How's the overseas rollout going?"
During the company's early days, due to limited channels and marketing resources, Yang had focused solely on dominating the local market.
But now, with Changxing Industrial operating at large scale and having access to media resources, global outreach could happen much faster.
Hong Kong was just a testbed. The real profits would come from abroad.
Wei replied, "We're already prepared. Taiwan and Japan will be our next two markets. We already have distribution partners there for the adhesive hooks and spin mops.
We'll ship out a batch of rolling suitcases directly to them. The main retail targets are airports and department stores."
"Having the channels really makes things easier." Yang smiled. "But we still need to decide whether these partners should get exclusive rights later."
"Agreed. For now, it's standard cooperation," Wei said. "We'll evaluate them carefully before offering exclusivity.
That said, the size of the rolling suitcase makes it expensive to transport and display. In some cases, logistics may cost more than the product itself."
"We'll worry about logistics later," Yang said. "Shipping to Japan is manageable, but shipping to Europe or the U.S. will be far more expensive.
Right now, we're positioning ourselves as a premium brand. So even if the retail price is high, it's acceptable. Our initial production capacity can't handle massive volume anyway."
Wei nodded. "Exactly. But with our strong start in Hong Kong, Dehe is already planning to build a second factory to meet expected demand from Japan and Taiwan."
"They still want to co-invest?" Yang asked.
Two months ago, he had authorized Changxing Industrial to partner with Dehe Injection Molding to build a rolling suitcase factory—a win-win arrangement that further tied the two parties' interests.
"Not this time," Wei replied. "Liu Chong Hing Bank is already aware of the product's early success. They've seen the suitcase and believe it has huge potential, so they're willing to finance the new factory.
However, since there's no collateral, they've asked for our company to provide a guarantee."
"We can guarantee it," Yang agreed. "But we must factor that guarantee into our investment calculations.
If we're covering their risk, then we need reduced interest rates—ideally below standard levels."
"I'll have Legal calculate that," Wei said.
Yang added, "Dehe was the first to work with us on this. They deserve more orders in the future.
But they shouldn't be our only partner. Rolling suitcase sales will likely grow rapidly. We'll need other suppliers too, under similar joint-venture models."
"No problem," Wei said with a grin. "Several suppliers have already reached out."
"Good." Yang nodded. "By the way, Robert arrived the day before yesterday, right?"
"Yes," Wei confirmed. "He came in two days ago. Didn't want us to pick him up. Said he had some personal errands. Just asked for an English interpreter."
"Interpreter? He's sightseeing?" Yang asked.
"No," Wei replied. "According to our interpreter, they've been visiting factories and looking at industrial zones—seems like they're scouting locations."
"You think they're planning to set up a factory in Hong Kong?" Yang speculated.
It was certainly possible.
In the original timeline, 3M hadn't invested in Hong Kong. But because of Yang's presence—his butterfly effect—he had become an important partner to them.
And with low-end manufacturing starting to shift away from the West in the 1960s, companies that might have considered Mexico or Eastern Europe could now be eyeing Hong Kong.
Wei nodded. "Could be. In the past year or two, a number of Western and Japanese factories have begun investing in Hong Kong.
Labor is cheap, and it offers direct access to the Commonwealth market."
"Not bad," Yang said with a smile.
If he could attract a U.S. industrial giant like 3M to invest locally, it would be a major contribution to Hong Kong's economy—especially since it would create jobs.
And unlike local sweatshops, 3M would pay decent wages. For working-class Hongkongers, this could be a big win.
"We just don't know which product line they'll relocate," Wei said.
"My guess is ordinary adhesive tape," Yang replied. "The market is huge, but margins are thin. Producing it in the U.S. probably loses money.
But in Hong Kong, the economics work."
"Could be." Wei didn't press further. "Anyway, I'll go talk to Dehe about their second plant."
"Alright." Yang nodded.
...
Two days later, at Changxing Industrial's Factory:
Robert and Robin arrived for a scheduled tour.
Yang personally led them through the production floor before escorting them to the reception room.
The secretary served coffee. Yang smiled and said, "Robert, Robin—this is Santos coffee from South America. It's got a great aroma."
"Smells wonderful already," Robert said with a grin, taking a sip. "Delicious."
"If you like it, I'll send you some," Yang offered.
"Thanks. I'd appreciate that," Robert replied, not refusing the polite gesture.
After some casual conversation, they turned to the usual topic—Post-it Notes.
With the second factory nearing completion, U.S. demand would soon be met in full, much to Robert's satisfaction.
Then Robert got to the real reason for his visit. "Eric, aside from discussing Post-it supply, 3M has another proposal we'd like to discuss with you."
"Oh?" Yang asked.
Robert continued, "As you know, rising labor costs in the U.S. are forcing many of our manufacturing lines offshore. 3M is no exception.
Originally, we planned to relocate some production to Mexico and Eastern Europe. But lately, company leadership has taken a strong interest in Hong Kong.
I've been sent to evaluate the situation here."
"Hong Kong is absolutely worth investing in," Yang said with a smile. "What can I help with? Do you need industrial and legal information about the city?"
Big corporations always conducted extensive research before investing in a region. If they had help from a local business leader, the process could go much more smoothly.
Robert said, "If you can assist with that, it would be a huge help.
Also, we plan to move part of our adhesive tape production to Hong Kong. We're hoping your local adhesive factory can supply the glue."
"That's no problem at all," Yang agreed. "But I'm curious—why not produce glue here yourselves?"
Robert chuckled. "Some members of our board are still hesitant about committing to large-scale investments in Hong Kong. They worry about political instability.
So we're only moving tape production for now. Wherever we can, we'll rely on local suppliers."
"Ah, I see." Yang nodded.
This was the 1960s, after all. Political uncertainties loomed large—even among the locals, not to mention foreign investors.
In fact, the 1966 economic crisis was largely triggered by fears of political instability.
Even Hong Kong's biggest conglomerate, Jardine Matheson, had adopted a strategy of making money in Hong Kong while aggressively investing overseas.
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