Started from Hong Kong Island

Chapter 389 387 [Meeting at Damaru Department Store]

Since the second half of the 80s, the stock market, local markets, and other industries have all entered a good stage of development, and the pockets of Hong Kong citizens have been greatly enriched.

After Wheelock & Company took over Dah Sing Company, Ye Wenjian mobilized huge funds from various sources, and successively joined forces with Sincere Department Store and Wing On Department Store to compete with companies such as Tokyu Department Store and Matsuzakaya Department Store in R country. Naturally, the measures adopted were price cuts and discounts to attract citizens.

Major newspapers reported with great excitement the fierce competition among department stores, which was dazzling and exciting. Some housewives kept an eye on these department stores every day and bought large quantities of cheap goods when the prices were low.

Wheelock Company Meeting Room
Li Wendi learned from special channels that the largest shareholder of Daimaru Department Store, the first company to enter the Hong Kong department store market, was Zhang Yuliang from the Zhang Zhushan family. Considering that Zhang Yuliang wanted to fade out of Hong Kong, Li Wendi considered acquiring Daimaru Department Store.

Daimaru Department Store opened in Causeway Bay, Hong Kong in 1960. Its principle of "customers are king" was welcomed by Hong Kong citizens. In addition, its low prices and good quality, as well as the support of the Zhang Zhushan family, allowed it to gain a firm foothold without being rejected by its peers.

"Mr. Li wants Wheelock to acquire the shares of Daimaru Department Store that I hold?!" Zhang Yuliang was a little surprised. It was not that the identity of the major shareholder of Daimaru Department Store was exposed, but that Li Wendi wanted Wheelock to enter the mid- and low-end department store industry. This industry is not like before, it is now a money-burning industry.

"Hutchison Whampoa has acquired Dah Sing Company from Cheung Kong Holdings Group. According to the plan, the acquisition of Daimaru Department Store is also part of the plan." Li Wendi said, crossing his legs.

Now he no longer needs to be too polite to Zhang Yuliang. After all, Henderson Land Development has fallen into the hands of the Cheung Kong Group and no one can snatch it away.

Zhang Yuliang thought for a moment and responded, "Based on the current situation, this model of department stores will be eliminated sooner or later. Instead, high-end supermarkets, such as Wellcome Supermarket under Hong Kong Land and ParknShop under Hutchison Whampoa, will be the ultimate destination for department stores."

I have to say that Zhang Yuliang has a sharp vision and has actually seen the next stage of development of the department store.

If the Zhang family had not adhered to the principle of keeping a low profile, Li Wendi believed that this family had the potential to become a global family.

"No matter what model it is, it all depends on reputation and the market share that is occupied first. Dah Sing's performance in recent years has been too poor, with a market share of only 4% to 5%, and it is limited to the small place of Hong Kong." Li Wendi retorted, "Lane Crawford has become the leader of high-end department stores in Hong Kong. If Wheelock can occupy a large share of the low-end and mid-range department store market, Wheelock may monopolize the department store industry in Hong Kong."

Seeing the hesitation on Zhang Yuliang's face, Li Wendi continued, "If Mr. Zhang has no intention of selling the shares of Damaru Department Store, I won't force it. There are many department stores in the market that are in trouble, and Wheelock can also acquire them to break the deadlock."

Zhang Yuliang thought for a long time, "There is no problem in selling all the shares of Daimaru Department Store to Wheelock, but I want to put forward a condition. I heard that Changxin Group has established a firm foothold in Singapore with the help of the Goodwood Garden Hotel Group. Can you take care of the branch of Kam Hing Land Company in Singapore?"

Li Wendi nodded. "Okay! Although Changxin Group does not have much foundation in Singapore, it has bought a lot of land and can develop together with Jinxing Land Company."

Singapore has a large population and limited land. Much of the land is obtained through large-scale land reclamation and is quite expensive. However, Singapore's hotel industry and commercial buildings are good directions.

One is Singapore's tourism industry, and the other is Singapore's developing financial industry. Li Wendi is most optimistic about the financial industry and shopping malls.

The two reached a preliminary verbal agreement and then discussed some details.

Li Wendi, Li Jiacheng and Huang Qingshan, head of Hong Kong region of Huarun Group, from the Central Hilton Hotel, gathered here to discuss the Tin Shui Wai new town project.

After shaking hands and exchanging a few words of greeting, they got straight to the point.

Huang Qingshan has been in Hong Kong for two years and of course he has heard of Li Wendi's name. Li Wendi controls large enterprises such as Wharf Holdings, Cheung Kong Holdings, Wheelock Holdings, and Hong Kong Electric Company. His scale is almost as large as that of Hong Kong's leading enterprise, Jardine Matheson Holdings. The only difference is the overseas industries.

"Mr. Huang, I will ask some questions directly. Please forgive me if I have offended you." Li Wendi said with a faint smile.

"Mr. Li, you're too polite. If you have any questions, just tell me." Huang Qingshan didn't want to show off in front of Li Wendi.

"As far as I know, Huarun Group will spend most of its manpower and resources to help the special economic zone build its economy. It should be difficult for you to undertake the construction project of Tin Shui Wai New Town, and you also lack experience in building large-scale real estate projects. So how do you plan to proceed?" Li Wendi meant that if you are the ones taking the lead, you should act like the leader, otherwise Hutchison Whampoa and Cheung Kong Holdings will become the leaders.

Huang Qingshan is indeed not an ordinary person. Facing such questioning, he smiled faintly and said, "I can understand Mr. Wendi's question. You should wear a hat that fits your head. Huarun Group is not here just to share profits. As long as the matter is settled, we will immediately recruit talents from the mainland or other regions to complete this super large project. There should be some problems in the early stage, but we are very confident in this project."

This is official language, and the subconscious meaning is that don't worry about what we do, the project will not be abandoned halfway anyway.

"Mr. Huang, I don't mean to make things difficult for the Huarun Group. My company has a lot of investments in Guangdong Province, and we are planning to join hands with Hopewell Industries to build a highway in Guangdong Province. The investment in the Tin Shui Wai project is too huge, so I have to pay special attention to the details." Li Wendi said.

Li Wendi meant to say that I was reluctant to give up the leadership of this project. Your Huarun Group owes me a favor, so remember to repay it later.

Seeing that the atmosphere was somewhat tense, Li Jiacheng smiled and said, "If you two have no problem, we will go sign the agreement later."

Li Wendi and Huang Qingshan both nodded.

"In fact, the most difficult part of Tin Shui Wai New Town is not the funding and technology, but the transportation." Li Jiacheng continued, "This matter still requires Huarun Group to send someone to coordinate with the Hong Kong government."

"Mr. Li, to be honest, Huarun Group cannot contact the Hong Kong government for the time being. Negotiations between the two sides are still ongoing. The identity of Huarun Group is sensitive. If it is misunderstood by someone with ulterior motives, we will all be punished." Huang Qingshan said apologetically.

"In that case, let Mr. Li and I take care of the transportation matters first, and Huarun Group will take care of the rest." Li Wendi expressed his understanding.

Li Jiacheng said, "Mr. Li is right. Let's contact the Hong Kong government first."

Huang Qingshan smiled and said, "Then I'll trouble you two Mr. Li."

(End of this chapter)