Chapter 33: Emergency Response

That afternoon, the conference room of the Golden Elephant Company’s Hong Kong office.

"Mr. Chen, I fully understand your concerns."

The Golden Elephant regional manager, a middle-aged man with slicked-back hair and broken Cantonese named Somchai, wore a mechanical smile, though his eyes held a trace of arrogance. "However, a 30% price hike is the final decision made by our Bangkok headquarters based on global market supply, demand, and cost fluctuations. We regret this, but it is a matter of force majeure. I believe that with Chen Ji’s current brand influence and premium pricing power, absorbing these costs should not be a problem."

Chen Bingwen sat opposite him, his expression calm but his eyes icy. "Manager Somchai, we understand force majeure. But a 30% increase is far beyond the reasonable range of market fluctuations. Chen Ji is a key client of Golden Elephant, and our procurement volume is growing steadily. We are looking for a long-term, stable partnership, not someone to take advantage of our predicament."

"Taking advantage of a predicament? Mr. Chen, you are being overly dramatic." Somchai’s smile remained unchanged. "This is simply market behavior. It’s not just Thailand; coconut-producing regions in Indonesia and the Philippines have also been hit by disasters to varying degrees, and international buyers are scrambling for stock. The price we have offered Chen Ji already takes our partnership into priority consideration. As for the existing contract, the company will compensate you for the unfulfilled portion according to the terms."

"If Mr. Chen finds this difficult to accept, perhaps you could consider... well, adjusting your product formula? For instance, reducing the coconut milk ratio or using some... alternatives?" He hinted at the use of flavorings or cheap coconut powder.

Chen Bingwen sneered inwardly. Lower quality? Using substitutes? That would be equivalent to single-handedly smashing the high-end reputation Chen Ji had just established! How Chen Ji Sweet Soup is managed is not for a raw material supplier to dictate.

Ignoring Somchai, Chen Bingwen said bluntly, "Manager Somchai, I hope you will convey our position to the Bangkok headquarters: Chen Ji cannot accept this price hike. If Golden Elephant insists, we will have to consider suspending our cooperation, seeking other suppliers, or even... establishing our own procurement channels in Thailand."

The smile on Somchai’s face finally stiffened. Suspend cooperation? Build their own channels? Although Chen Ji was not yet a massive enterprise, its momentum in the Hong Kong catering industry was strong, especially its high-end dessert line, which had a significant demand for high-quality coconut milk. Furthermore, the unquestionable aura Chen Bingwen exuded left him feeling uneasy.

However, he quickly regained his composure. "Mr. Chen, I understand your position. I will report it to headquarters truthfully. However, I suggest you reconsider carefully. Finding a new, reliable supplier is not easy, especially in these special times. Golden Elephant’s quality and supply stability have been tested by the market."

The negotiation reached a stalemate. Somchai refused to budge on the 30% increase, agreeing only to "consider at his discretion" implementing the hike in phases.

***

Chen Bingwen knew that in Hong Kong, he could not extract any further concessions.

He walked out of the Golden Elephant office and, instead of returning immediately to the Kwun Tong factory, sat alone on a park bench nearby for a while. The roar of traffic and the rush of pedestrians helped him calm down and sort through the sudden crisis.

The core issue was clear: coconut milk was the soul of their Mango Pomelo Sago and Coconut Sago, and it accounted for a huge portion of their costs. A 30% increase meant that the profitability of these two products—which had just cracked the high-end market and become the pillar of Chen Ji’s profits and brand image—would be halved, or even decapitated.

Accepting the price hike meant severe short-term profit losses and, in the long run, handing over the hard-earned brand premium to greedy suppliers. Not accepting it meant facing the risk of a supply cut, which would cripple the new product launch and potentially cause them to lose their market lead. Limiting supply? That would be akin to cutting off their own arms, admitting that their product strength was insufficient, and would equally damage their brand image.

"The source..." Chen Bingwen whispered to himself, his gaze fixed in the distance.

It was impossible to tell if Somchai’s excuses were true or false, and sitting in Hong Kong was meaningless. To break the deadlock, he had to jump out of the information cocoon woven by Golden Elephant, go to the source himself, understand the true situation, find alternatives, and even build his own line of defense.

His resolve hardened. He stood up, flagged down a taxi, and headed straight to the Kwun Tong factory.

At the factory, Gao Zhenhai, Zhong Qiang, and A-Chang were waiting anxiously at the office door. Seeing Chen Bingwen, the three immediately rushed forward.

"Brother Wen, how did it go? Golden Elephant..." Gao Zhenhai did not finish his sentence; seeing Chen Bingwen’s somber face, his heart sank.

"They are dead set on 30%, no room for negotiation. For the breach of contract, they are only willing to pay the penalty as stipulated." Chen Bingwen walked into the office, took off his jacket, and concisely recounted the negotiation results.

Zhong Qiang was livid. "Those bloodsuckers! We just heated up the market, and they’re jumping in to take a bite!"

"Complaining is useless." Chen Bingwen cut him off. He walked to his desk, drank a glass of water, and turned to A-Chang. "What information have you gathered?"

A-Chang stepped forward quickly. "Boss, we have preliminarily confirmed that the main coconut-producing areas in southern Thailand were hit by a strong typhoon, but the specific losses in the plantations are unknown. News from peers in Hong Kong confirms that Golden Elephant’s price hike is not targeting Chen Ji alone, but all merchants in Hong Kong who use their coconut milk. Regarding inquiries, I’ve contacted three other Thai coconut milk suppliers with businesses in Hong Kong, as well as two in the Philippines and Malaysia. The quotes... are all very high."

"The other three Thai companies are quoting 5-8% lower than Golden Elephant’s new price, but we lack verification of their long-term supply volume and quality stability; the risk is high. The quotes from the Philippines and Malaysia, after adding the 20% import tariff, are about 12% higher than the current Thai prices. They are not competitive."

Bad news followed one after another.

"It seems that what Somchai called the 'industry-wide situation' is, at least in the current Hong Kong market, a reality. They have formed some kind of tacit understanding or price alliance," Gao Zhenhai said, clenching his fists.

Chen Bingwen frowned. The market inquiries confirmed Golden Elephant’s strength but also revealed a key piece of information: the pricing space of other Thai suppliers was not monolithic; there was a 5-8% difference. This might be the breakthrough.

"Alright, the situation is clear." Chen Bingwen looked up at the three. "Now, we divide and conquer. Brother Qiang, starting today, all five standard stores will suspend all free tastings and promotional activities related to Mango Pomelo Sago and Coconut Sago. At the same time, implement strict daily supply limits for these two products. The limit should be based on maintaining basic market heat and satisfying core customer needs. Calculate the exact quantity based on historical sales data and remaining inventory to ensure the stock lasts for at least 45 days."

"A-Chang, your work is critical. First, use all your connections to investigate the real extent of the disaster in southern Thailand. I need specific data: which areas were hit? What is the loss ratio? What is the assessment of the impact on overall production? Are there any areas that were unaffected or less affected?"

"Second, focus on contacting those three Thai suppliers with lower quotes. Don’t just look at the price; dig deep into their production capacity, major clients, quality control processes, and past supply stability records. I need to judge who has the most potential to become our supplier."

"Third, simultaneously learn about the export policies, production, quality, and transportation costs of Hainan coconut milk as a backup plan."

"Fourth, find someone to look into the situation at the Sompa Coconut Plantation in Mae Rim District, Chiang Mai. Get these things figured out within the next two days, and then you are coming with me to Thailand!"

Chen Bingwen calmly arranged everything. As an investment manager in his past life, he had flown to Southeast Asia many times for inspections. The Sompa Coconut Plantation in Mae Rim, Chiang Mai, which had been operating for decades, had left a deep impression on him. With nearly 500 acres of coconut groves rolling over the hills, the owner had told him then that it was a legacy passed down from his grandfather, with the oldest trees over sixty years old. Calculating the time, the plantation should have a considerable scale now. Since he was going to Thailand, he would stop by Chiang Mai. If possible, securing their supply would not only solve Chen Ji’s current raw material crisis but also provide enough for future bottled production.

"Go to Thailand?" Gao Zhenhai and Zhong Qiang were startled.

"Yes!" Chen Bingwen walked to the map on the wall and pointed to Bangkok. "Trapped in Hong Kong, we are just lambs waiting to be slaughtered. We must go to the source! I want to see the situation in the producing areas with my own eyes and verify the truth of Golden Elephant’s claims. I will inspect the potential suppliers A-Chang identifies, evaluate their factories, equipment, management, and quality control on the ground. My goal is to lock in at least one qualified backup supplier within 45 days and sign a competitive long-term framework agreement."

"Most importantly, I want to explore the possibility of establishing our own direct procurement channels at the source. For example, can we bypass the middlemen and establish direct links with large plantations or cooperatives? This will be the key step to completely ridding ourselves of being held hostage in the future!"

Gao Zhenhai immediately said, "Brother Wen, I’ll go with you! The situation there is complex; having another person makes it safer!"

Thailand had not been a stable place in recent years, with frequent political turnover and civil unrest. It was indeed dangerous. Chen Bingwen thought for a moment and shook his head. "No. The home front needs you more. During my absence, the daily production management, quality control, and the foundational work for the new franchise system at the Kwun Tong and Cheung Sha Wan factories must be coordinated by someone. Zhong Qiang will focus on technology and production, coordinating the R&D center and the factory; the R&D for the bottled line cannot stop. You must shoulder the burden and ensure the entire system runs stably and efficiently while I am away, ready to handle any emergencies. Your responsibilities are heavy; you cannot be negligent."

Gao Zhenhai felt the weight of the responsibility and nodded firmly. "Understood! Brother Wen, don't worry. I will keep a close eye on everything in the factory!"