Chapter 438: The Calm Before the Storm

The Wanjia Electrical City's strategy is partly due to Li Li Dongling's status as a major shareholder; Li Li Dongling certainly hopes to align Wanjia Electrical City with domestic appliance brands on the same vehicle.

Another aspect is a high-stakes gamble: betting that domestic appliance brands will grow strong; if they reach the level of today's Japanese appliances, Wanjia Electrical City, with its exclusive distribution rights, could make enormous profits.

Currently, the world's most popular appliances are Japanese and Korean, especially in the mid-to-high-end segment; American and European brands are steadily losing ground to Japanese brands like Toshiba, Panasonic, Sony, and Sharp, barely holding on to the high-end market by relying on brand image and prestige.

In the future, if domestic appliance brands develop, their exclusive distribution rights will become Wanjia Electrical City's most valuable asset!

"Besides the mainstream value-for-money domestic appliance brands, Wanjia Electrical City also carries high-end brands like General Electric, Gaggenau, Bosch, and AEG—this segment is Wanjia Electrical City's most profitable market!"

Wanjia Electrical City originally started by acquiring the Falanxi brand Bronge; its existing European supply and sales channels were naturally absorbed by Wanjia Electrical City.

After Li Li Dongling and Ning Ning Wenke arrived on the fourth floor, the layout was noticeably more luxurious than the three floors below, dominated by brand-store designs reminiscent of malls from the previous era, giving visitors an immediate sense of "premium."

Hong Kong's per capita income has surged in recent years, giving rise to a large middle-class population; people always want to climb upward, and middle-class families look to the lifestyle of the upper class.

Although they can't afford multi-thousand-square-foot penthouses, hilltop villas, or sea-view villas, many Hong Kong households still eagerly pursue home appliances and furniture priced in the tens of thousands of Hong Kong dollars.

Wanjia Electrical City's high-end appliances are primarily sold to middle-class and above households; in plain terms, buyers of these appliances care less about practicality and more about showcasing their lifestyle taste, quality of life, and social status—so that visitors immediately recognize the homeowner's social standing.

All retail staff at Wanjia Electrical City undergo professional training before taking up their posts; they never discriminate against customers from any region. Compared to other appliance stores, Wanjia Electrical City offers the best shopping experience and after-sales service in Hong Kong's appliance industry!

Ning Ning Wenke said: "What is 'big store bullying customers'? It's when you go to a store to spend money, yet the sales staff glare at you, look down on you, ignore you—even because you don't speak the local dialect."

This upside-down reality actually happened: while Japanese, Falanxi, British, and New York luxury stores began playing mainland Chinese music and trained their staff in Mandarin and electronic payments to please mainland customers, many Hong Kong stores still looked down on mainland buyers.

The consequence? Fewer mainland customers came, and those stores then blamed their poor sales on the mainlanders themselves.

As for those once-dismissive sales staff, they were naturally fired when the stores eventually closed.

At Wanjia Electrical City, Ning Ning Wenke specifically instructed that all retail staff under Ning Corporation's management, whether in Hong Kong or Southeast Asia, must undergo training and sign employment agreements before joining; they must treat all customers equally—whether they speak Mandarin, Cantonese, or English—and any violation results in immediate dismissal, with no exceptions.

Since Wanjia Electrical City opened in Hong Kong, over ten staff members—including supervisors—have been fired for this reason; some even sued Wanjia Electrical City's Hong Kong branch after being dismissed.

Public opinion in Hong Kong has been divided on this policy, but Wanjia Electrical City has never backed down, preferring to spend money on legal fees rather than pay compensation to those fired!

However, Wanjia Electrical City's reputation in Hong Kong has been firmly established; after all, who wants to be treated like a servant while shopping? Even those who accuse Wanjia Electrical City of overreacting still unconsciously choose to shop there.

Li Li Dongling walked to a brand store and saw the unmistakable logo of Shenzhou; he couldn't help but smile.

Elsewhere, Shenzhou's status may be uncertain, but inside Wanjia Electrical City, Shenzhou is treated as a premium brand, occupying a prime location throughout the entire electrical city; after all, if even its own territory doesn't protect it, what justice is there? What law exists?

"Director Ning!"

"Director Li!"

The Shenzhou store's lead sales supervisor rushed forward upon seeing Ning Ning Wenke.

Li Li Dongling entered the Shenzhou store and saw it mainly sold Shenzhou digital cordless phones, Shenzhou USB drives, Silver Mink mice, and a prototype Silver Mink mechanical keyboard developed by Li Dongling High-Tech.

In fact, Li Dongling High-Tech, using the Silver Mink brand, has already released two keyboards: one budget-friendly membrane keyboard and one Silver Mink mechanical keyboard.

In the computer keyboard industry, membrane keyboards—replacing mechanical switches with films, conductive silicone, and plastic keycaps—have achieved extreme cost control and completely displaced mechanical keyboards.

Even Japan's ALPS mechanical switches, one of the two major types, have been driven out; now, only Sakura remains in the mechanical keyboard industry—but it's not celebrating.

The good news is Sakura won the mechanical keyboard war and now dominates the global market; the bad news is the mechanical keyboard market is dead.

After all, a membrane computer keyboard costs only 30 to 50 RMB, and even branded ones rarely exceed 100 RMB, while a mechanical keyboard sells for 500 RMB!

Even with membrane keyboards' many flaws—poor tactile feedback, easily malfunctioning keys, short lifespans of just a few months to a year or two—they still destroyed mechanical keyboards.

Can these flaws stop membrane keyboards from dominating? Computer manufacturers and users have already voted with their wallets.

Membrane keyboards are now the norm; after Silver Mink launched its membrane keyboard, sales were decent, mostly purchased by domestic computer manufacturers.

But unlike other companies that completely abandoned mechanical keyboards, Li Dongling High-Tech's computer peripherals R&D department has continued developing mechanical keyboards.

Silver Mink's mechanical keyboard is merely a trial run; its switches are licensed patents from Sakura, only possible because the mechanical keyboard market is in decline—otherwise, it would have been impossible.

This keyboard is Li Dongling High-Tech's first tentative step into the mechanical keyboard market; it still imitates Sakura's switches. When the timing is right, Silver Mink will launch its own switch, and China will have its own domestic mechanical keyboard!

When e-sports and gaming become mainstream, that's when mechanical keyboards will revive; Silver Mink will never abandon this market—top-tier mechanical keyboards will become one of Li Dongling High-Tech's key selling points in the computer industry!

"How are sales here?" Li Li Dongling asked the Shenzhou sales supervisor.

The supervisor glanced at Ning Ning Wenke, saw her nod, then replied: "Currently, the best-selling products are the Shenzhou digital cordless phones and Shenzhou USB drives!"

Li Li Dongling nodded; he wasn't surprised. Shenzhou digital cordless phones represent a premium brand, and since Hong Kong still relies heavily on landline phones, their popularity here isn't unexpected.

As for USB drives, Shenzhou USB drives also represent premium products; USB drives are now essential office hardware. According to the earlier USB alliance between Li Dongling High-Tech and four other manufacturers, the Asian USB market is essentially a duel between Shenzhou and Toshiba; in Hong Kong, it's strictly a choice between these two.

Shenzhou has always been positioned by Li Dongling High-Tech as a premium brand; in the future, nearly all of Li Dongling High-Tech's premium products will carry the Shenzhou label.

Li Li Dongling and Ning Ning Wenke arrived at the electrical city's operational area and entered an office, where Ning Ning Wenke handed Li Li Dongling several reports.

"Wanjia Electrical City Hong Kong currently operates two large malls, one in Mong Kok and one in Central, plus 14 stores in shopping malls and other areas, and over 34 smaller retail outlets across Hong Kong; besides retail, these outlets primarily handle after-sales service and repairs!"

"Additionally, Ning Trade Company manages Wanjia Electrical City outlets in Thailand and Malaysia, each with one mall, but both are still operating at a loss; even Hong Kong only barely broke even last month!"

Wanjia Electrical City requires heavy capital investment; originally, plans were to buy land and build or purchase and renovate a shopping mall, but Li Li Dongling halted this expansion and switched to leasing.

Yet regardless of the method, upfront costs are substantial; even leasing imposes heavy monthly rent, plus procurement, advertising, and labor costs—Wanjia Electrical City in Hong Kong has only just reached break-even.

After glancing at the performance reports, Li Li Dongling set them aside; malls are inherently industries of upfront investment and delayed returns; nothing unusual here—the key lies in operational management, and most importantly…surviving long enough.

"How much liquid capital does Wanjia Electrical City Hong Kong currently have on its account?"

Li Li Dongling asked directly; since Ning Ning Wenke began managing Wanjia Electrical City Hong Kong, he instructed her to do one thing: spend less, borrow more—borrow from banks in Japan, Korea, Singapore, Malaysia, and elsewhere, borrow as much as possible, but convert the borrowed local currency into U. S. dollars and withdraw it.

"Wanjia Electrical City Hong Kong's account currently holds $320 million, but debt is heavy; we must repay large bank interest payments monthly—this is one reason Wanjia Electrical City Hong Kong has yet to turn a profit!" Ning Ning Wenke said, looking at Li Li Dongling.

"Not enough."

"What?" Ning Ning Wenke blinked in surprise.

Li Li Dongling calculated: this sum is sufficient for Wanjia Electrical City Hong Kong to weather the storm Soros will unleash; when that time comes, all of Southeast Asia will be in ruins—any chain mall or shopping complex owing bank debt will collapse.

With U. S. dollars in hand, Wanjia Electrical City could buy the current Mong Kok and Central mall buildings at rock-bottom prices, and take over competitors' malls in Thailand, Malaysia, Japan, and Korea, eliminating rent payments forever—solving Wanjia Electrical City's problems in one stroke, possibly even turning it into a rental income source.

"Wanjia Electrical City needs to raise more capital; you can ask Babcock & Brown for help, but it must be converted into U. S. dollars!" Li Li Dongling said.