"Two years is too long. Nobody knows what the market will look like in the future," Liu Xinze said to Song Tianyao with an unchanged expression.
Song Tianyao smiled and then turned to introduce Angie Perlis, who had remained silent to the three of them, to them:
"Gentlemen, based on the current production level, this factory can only produce 20,000 wigs in two years. This is a drop in the ocean compared to the vast European and American markets. This is Miss Pellis Angie Perlis. In fact, the reason she's here today is to await your decision. If you feel the price is unreasonable, or the two-year order cycle is too long, she will fly to the United States tomorrow to contact United States distributors. I don't necessarily need to sell the goods in Hong Kong; the United States market currently has a greater demand for wigs than the Britain market."
This put the three people in a difficult position. An order for 20,000 wigs was not much, and could even be described as meager. The total price of 22 million Hong Kong dollars sounded daunting, but it should be noted that in the international market, it had to be converted into US dollars or British pounds. 22 million Hong Kong dollars, calculated according to the exchange rate, was actually only equivalent to a little over 700,000 US dollars or a little over 200,000 British pounds.
Two hundred thousand pounds, to be paid in monthly installments over two years. Not to mention splitting it equally among the three department stores, even any one of the department stores present could make the decision without even needing to contact their London headquarters; their Hong Kong branch alone would be enough.
They weren't struggling with sales figures; rather, they had just decided to fuel the price war in Hong Kong's wig industry a year later. Now, Song Tianyao was asking the three companies to sign two-year supply agreements with him. This two-year timeframe put them in a difficult position—not too long, not too short, not quite right, not quite right either, leaving them in an awkward situation.
Even Liu Xinze hesitated. A black wig, if purchased at Hong Kong dollars 1,100, would sell for at least Hong Kong dollars 1,800 in London, roughly £20. Even disregarding the negligible shipping costs to London, the profit per wig was as high as Hong Kong dollars 700. That means a wig priced at £20 would yield a net profit of £7. A third of the profit, £7, and that's just the profit from one wig.
Ultimately, the three could not resist the lure of profits and drove to a law firm. In front of the lawyer and Shek Chi-yik, they signed a formal agreement on behalf of the Hong Kong branches of the three department stores and Long Light Wig Factory. For two years, the three department stores would be responsible for the exclusive sales of Long Light Wig Factory's products, with monthly settlements.
After seeing the three off, it was already dark. After handing the contract to Angie Perlis, Song Tianyao accompanied Shek Chi-yik to the Morrison Hotel's Western restaurant for dinner.
Shek Chi-yik was also in a good mood. Aside from the fact that his wife's account would receive an additional Hong Kong dollars 1 million in income over the next two years, the news that the Long Light Wig Factory had been exclusively sold to three major department stores for two years would wildly stimulate other envious and greedy people to invest in the industry. At least in the short term, it would create some impressive figures for the Industrial and Commercial Administration Office he worked. During the Embargo Order period, Shek Chi-yik did not seek outstanding political achievements, but only hoped not to look too bad and give others an opportunity to attack him.
"Your factory already has a monthly turnover of Hong Kong dollars 990,000, why do you still need to take out a loan guaranteed by HSBC?" Shek Chi-yik asked Song Tianyao across from him, holding a glass of red wine.
Song Tianyao smiled and said, "Business, of course, needs to grow bigger and bigger. For many business people in Hong Kong, this is a very difficult period, but in reality, this period is also an opportunity, at least for me."
"What opportunity? I think you should start thinking now about how you'll face a price war two years from now." Shek Chi-yik tasted the steak, nodded slightly, and said to Song Tianyao, "I'm serious, Song. You're a very good young man. In the next two years, you might go from a secretary to a millionaire. But two years from now, the three major department stores won't be able to sign such orders to you anymore. You won't be the only factory there then."
"It's too early to talk about things two years from now. Maybe you'll be transferred back to London from Hong Kong in two years? Maybe I'll follow you and settle down in London? I've always been curious about the weather in London," Song Tianyao said, skillfully slicing a medium-rare ribeye.
Shek Chi-yik raised his glass and burst into laughter. "I love hearing that. Colonial life is nothing compared to London. Cheers to London, kid."
"Let's toast to two years from now, Director Shi." Song Tianyao raised his glass with a bright smile, lightly clinked it with Shek Chi-yik's, and said sincerely.
Chapter 236 is alright.
When Tang Boqi and Tang Jingyuan learned that Song Tianyao's Long Light Wig Factory had been exclusively sold to Marks & Spencer, Debenhams, Lane Crawford for two years, their reactions were completely different. Tang Jingyuan's mouth dropped open, wishing the factory, equipment, and workers would immediately appear in front of him so he could start production and make money quickly. His father, Tang Wenbao, was also getting restless. He got up and paced slowly in the living room, glancing at Tang Boqi from time to time. If he hadn't been considering Tang Boqi's feelings, he would have directly proposed to build the factory.
Tang Boqi, however, hesitated, pinching his chin.
"Brother Qi? Brother Qi? You've already toured most of Hong Kong these past few days, and you've been to several factory areas. Why don't you hurry up..." Tang Jingyuan was practically saying something vulgar like, "If you slow down, you won't even get to eat shit hot."
"He shouldn't have given two years' worth of orders to three department stores. For two years, he didn't have time to touch the United States market, focusing solely on supplying the Britain. Wasn't that just giving others the opportunity to grow and compete with him?" Tang Boqi stubbed out his cigarette. "I need to go and take a look at Song Tianyao's factory. Even if I've decided to make wigs, it's still necessary to visit his factory and understand the production process."
After he finished speaking, he got up from the sofa without saying anything about taking Tang Jingyuan with him. He put on his suit and walked out.
After Tang Boqi left, Tang Jingyuan looked at his father and said, "Dad, isn't Brother Qi too indecisive?"
"Let's not wait any longer. We'll open our own factory. If he's unwilling to do it, we'll just find United States to sell it to. If he keeps going around in circles like this, all the money will go to others. Song Tianyao is one step ahead of everyone else, and now he has millions in business. Even if we're one step behind him, we're still faster than others. You go rent the factory and order the machines. I'll go see Chu Yaozong and ask him to arrange a meeting with Song Tianyao. Song Tianyao is a member of the Chu Family, so he won't refuse Chu Yaozong's request. Considering we're all from Chiu Chow people, he'll tell us the truth about raw materials and training workers." Tang Wenbao turned around and said to Tang Jingyuan, who was looking at him.