Chapter 418: A New Electronic Product — The Cassette Music Player
After his conversation with Zhang Hui, it was already midday. Yang Wendong had a quick lunch nearby before boarding his convoy to head toward North Point on Hong Kong Island. It was conveniently on the way, and they arrived in just twenty minutes.
This day's schedule had been arranged in advance. He'd visited Kong Wah Tower in the morning, and now it was time to stop by Rongyao Electronics in the afternoon.
"Mr. Yang, Madam Yang," Wang Zhiqun was already waiting at the entrance of the factory to greet them.
Yang Wendong smiled. "It's been a while since I last came to Rongyao's factory. I had some things I wanted to discuss with you today, so I figured I'd stop by."
Normally, when there were matters to be discussed, Yang Wendong would have his subordinates come to headquarters. That had been the usual practice. But once in a while, a boss had to personally inspect operations. So today, he came in person.
Especially for the electronics sector, which — though still much smaller in scale than Changxing Industrial — was about to enter its explosive global growth phase in the mid-1960s. As someone who had traveled from the future and knew where the world was headed, Yang Wendong was in a perfect position to claim a massive share of the industry.
In contrast, Changxing Industrial might soon plateau, because the number of innovative consumer products would always be limited. Even then, it would remain one of the largest manufacturing groups in Asia, just not on the same growth trajectory as Rongyao Electronics.
"This way, please," Wang Zhiqun said, gesturing.
"Alright," Yang Wendong agreed.
They first headed to one of the nearby production workshops, where a large number of televisions were currently being assembled.
Yang Wendong suddenly asked, "Our transistor production line isn't located here, is it?"
Rongyao Electronics' earliest business wasn't actually in end-user products but in transistors.
At the time, Hong Kong's radios had to import expensive Japanese transistors. Since radios were simple devices, Yang Wendong decided not to manufacture them directly. Instead, he invested in producing transistors locally.
"No, the transistor factory is about three kilometers from here," Wang Zhiqun replied, not quite sure why Yang had asked. "If you'd like to visit later, we can arrange it."
"No need. I wouldn't understand the technical stuff anyway," Yang Wendong said with a wave of his hand. "But I've heard that in the U.S., integrated circuits and chips are starting to become popular. You should start researching that in detail. If there's demand in Hong Kong, see if we can bring in the equipment to manufacture them here."
By the mid-1960s, chips and integrated circuits were beginning to emerge. Yang Wendong was keeping a close eye on this, especially on companies like Fairchild Semiconductor, the so-called "West Point of Silicon Valley." In a few years, companies like Intel would be born.
While he didn't understand the technology himself — as a non-engineering time traveler, Yang was better suited to consumer product strategy — he knew electronics couldn't succeed without serious technical investment. It was time to prepare.
"I've heard of them, but haven't studied them in depth yet," Wang Zhiqun said honestly.
"Ask our team in the U.S. to investigate — especially look into the latest from Fairchild and IBM," Yang instructed.
For the past few years, Rongyao Electronics had focused mainly on end-user products. The technical R&D side had been somewhat neglected. But that was understandable. Hong Kong was an electronics desert — it simply didn't have the infrastructure. Even in the future, it likely wouldn't meet Yang's standards.
"Understood. I'll have our lab in the U.S. collect information and send reports," Wang Zhiqun agreed.
"Good." Yang Wendong smiled.
They then did a full tour of the workshop, following the production manager. Yang watched the assembly lines for several current products.
These weren't very complex devices. Most of the work was manual assembly. Yang asked a few questions and made a few notes before moving on.
—
By 3:00 p.m., Yang was in a meeting room in the front office building. Various fruits had been prepared in advance.
"Mr. Yang, here is last quarter's production and sales report," Wang Zhiqun said, handing over several documents.
"Thanks. Let me take a look," Yang said, flipping through the reports.
After a few minutes, he asked, "From the data, it looks like Rongyao Electronics is starting to hit production capacity limits?"
"Yes, especially with televisions. Our current monthly output is 40,000 units, and it's no longer enough to meet demand," Wang Zhiqun replied. "Our group has extensive global distribution channels—we're now in over 20 countries across Southeast Asia, plus parts of Europe and South America.
On top of that, our televisions are better priced and more reliable than those from Japan. Demand is surging. And that's even after two price hikes on our exports."
Changxing Group's overseas channels far outstripped those of other Hong Kong manufacturers. Its reputation alone meant that foreign trade partners came looking for business. Most factories in Hong Kong had to beg trading firms for orders. Changxing, on the other hand, was courted.
Back in the day, things like the electric mosquito racket opened many doors for distribution. And Changxing Industrial's massive sales network also helped. Even though the two companies sold different products, many distributors were generalists. The overlap was significant and valuable.
In just a few years, Rongyao Electronics had built partnerships in dozens of countries, and those distributors weren't fly-by-nights — they had solid local market presence.
In an era where most electronics were only available from the U.S., Europe, or Japan, and were priced out of reach, Hong Kong products became the ideal low-cost alternative.
That's why the original annual production capacity of 500,000 TVs was already falling short. Back then, none of the managers expected Changxing Group's growth to be this fast.
"Haha, well, that's still good news," Yang Wendong said, nodding. "Let's get ready to expand production. The overseas market is too big to ignore. We have to seize this opportunity."
Even though black-and-white TVs were being phased out in the West, they were still hugely popular in Southeast Asia — and would remain so in mainland China for another 20 years. This was a low-tech but long-lasting industry.
In fact, Samsung Electronics had built its empire starting with black-and-white televisions. Even if the product was outdated, being the best in the world at manufacturing it still meant enormous success. You had to walk before you could run — and mastering black-and-white TVs was the first step toward color TVs and beyond.
"I'm already sourcing options for equipment," Wang Zhiqun said. "Mr. Yang, this time I'm planning to buy a completely new production line. It's unlikely we'll find a secondhand one fast enough. The odds of one being available at the exact time we need it are low.
If we wait too long, we'll risk disrupting our production plans."
"That's fine. We can't control whether secondhand production lines show up or not," Yang Wendong agreed. "Given our current scale, buying new equipment isn't an issue."
Wang Zhiqun then asked, "Should we also consider purchasing a color television production line?"
"Color TVs?" Yang Wendong immediately asked. "Those can only be sold to the U.S., Europe, and Japan. Are you confident in that market?"
Everyone knew that color televisions were better, but the problem was that owning a color TV didn't mean you could watch color programs. Even in Yang Wendong's own home, the display was still in black and white.
The reason? Whether it was cable or broadcast, the signal itself determined color output. Color signals could be viewed in black and white on monochrome TVs, but not the other way around.
In Southeast Asia, most regions still transmitted black-and-white signals, so a color TV was essentially pointless. Therefore, color TV production was only viable if they were to be exported to the West.
Wang Zhiqun responded, "Our costs are slightly lower than Japan's. If we export to the U.S. or Europe, we can still compete — as long as we're cheaper than the domestic brands.
I'm only proposing a small-scale production line, primarily to use as a starting point for R&D."
"What about the picture tube? Can that be manufactured here in Hong Kong?" Yang Wendong asked again.
Color televisions were, at the time, the pinnacle of consumer electronics. Even developed countries jealously guarded the technology, trying to maintain their edge.
"Yes. The technology we're buying is already a generation behind, so there aren't many restrictions," Wang replied. "In fact, the Americans are currently behind Japan in this field. Ironically, because they're behind, they're less strict about letting others access the tech."
"Alright then," Yang nodded. "Prepare a detailed proposal for both a new black-and-white TV production line and a small-scale color TV line. Let me review the numbers before I approve.
But there's one condition — the picture tube must be produced in Hong Kong. And we need to secure distribution channels in advance."
"Understood. I'll research and prepare the full plan," Wang Zhiqun replied. "But since this involves significant investment and site visits across multiple countries, it might take some time."
"Move as quickly as possible. Time waits for no one," Yang said. "From what I know, South Korea, Taiwan, and even some less-developed areas in Japan are all jumping into black-and-white TV production. We need to seize the market before they do."
"Yes, I understand," Wang said.
After a brief pause, Yang Wendong asked, "What about our other small household appliances? How's production capacity looking there?"
"No problems," Wang answered. "The new factory has been completed and is already operating. Production capacity will ramp up quickly — these items are relatively simple to manufacture."
"Still, having our factories spread across multiple locations isn't ideal," Yang said after thinking it through. "Stick with it for now, but later I plan to acquire a large piece of land on Hong Kong Island to centralize production.
Just like our industrial park in Kwun Tong, where everything is together — even major suppliers. It makes operations much more efficient."
Centralized industrial zones weren't just about saving on transportation costs — they were about time, efficiency, and coordination. Even in the 21st century — when apps like WeChat could transmit messages globally in seconds — most manufacturers still clustered together to enhance efficiency. Some automotive plants even required suppliers to be within 100 kilometers.
"That would be great," Wang said. "But is it really possible to secure such a large plot on Hong Kong Island? Even industrial land is hard to come by."
Hong Kong Island had been developed for over a hundred years. In the early days, there was enough open land to graze cattle, but with population growth, vacant land became increasingly rare.
Yes, some land was still available for factories, but large-scale parcels were rare — and most of them were too valuable to be zoned for industrial use. The government would rather allocate them for commercial or residential development.
Yang Wendong smiled. "We'll see. If not, we'll go to Kowloon Peninsula."
Under normal circumstances, no one could pull this off. Not even the biggest property developers. It simply wouldn't make business sense to allocate a massive plot of Hong Kong Island for factory construction.
But with the 1967 crisis approaching, even the most prestigious commercial buildings in Central would be sold at a loss. The government would be strapped for cash — and at that moment, he might just have a chance. The ideal would be to grab a commercial plot, but even if he ended up with a huge industrial site, it wouldn't interfere with other plans.
"Sounds good. That would be ideal," Wang agreed.
Changxing Group had a strict rule: business units could not engage in real estate speculation. So it didn't matter whether the factory was on Hong Kong Island or Kowloon. As for labor concerns, Rongyao Electronics was large enough to manage its own staff dormitories and shuttle buses.
"Alright. We'll leave those topics here for now," Yang Wendong said. "Aside from our ongoing operations, there's one more task, just as important as our decision to manufacture TVs."
"Yes, Mr. Yang?" Wang Zhiqun immediately straightened up.
The fact that the boss had come in person today clearly meant something major was coming. The factory tour was likely just a pretext.
Yang Wendong asked, "You know how most people listen to music at home these days?"
"Music?" Wang paused, then answered, "Usually through the radio. There's lots of music broadcast throughout the day. Or, if they can afford it, they'll use vinyl records. But that's expensive. Even my family doesn't have one."
"If even you don't have one, that says something," Yang laughed.
Record players and vinyl discs often appeared in Republic of China-era dramas from his past life — making them seem common. But in reality, they were very expensive and easily damaged.
Of course, Wang Zhiqun could easily afford one — but the cost likely didn't seem worthwhile to him.
Wang nodded. "Yes, and record rentals are a hassle. I'm usually busy with work. Swapping records all the time is annoying. It's easier to just turn on the radio — the music is decent, even if I can't pick the songs."
"If you want to choose, you need a device that gives you control," Yang Wendong said. "Are you familiar with the European company Philips?"
"Yes," Wang Zhiqun nodded.
"They released something in 1962," Yang continued. "It's a new audio medium called the cassette tape, and the corresponding playback device. I want you to go there and see if you can buy the production rights — bring the technology and production line back here."
This was the infamous cassette tape — an invention that changed music forever in his past life.
For Yang Wendong, it was one of the most important consumer electronic products of the 20th century. Although it would eventually be replaced by CDs, MP3s, and streaming, cassettes had a glorious run. They were compact, portable, cheap, and durable — perfect for mass production in this era.
And once cassette players were everywhere, they would also drive demand for original music, just like TVs drove demand for TV dramas and films.
Wang Zhiqun's expression became serious. "I've heard a little about that device, but I didn't know it was this influential."
"Go check it out," Yang Wendong said. "If it's technically feasible and there's no licensing restriction, let's be the first in Asia to manufacture it."
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