65: Chapter 65 The Expedition (Part 2)

After speaking with Park Min-ji, he returned to his office alone, closed the door, and sat in the darkness without turning on the lights. Outside the window, the night view of Seoul remained the same; the lights from the traffic stretched into long lines in the distance, and the light from the Namsan Tower flickered steadily. He thought back to that fluorescent light in the semi-basement three years ago, where one of the two tubes had turned black and hummed like someone on their last breath. There were no fluorescent lights in this office; instead, there were LED lights embedded in the ceiling that were so bright they felt unreal.

He flipped open his notebook and wrote two words on a blank page—"Nongshim." Below that, he drew two lines, one labeled "Our Advantages" and the other labeled "Their Weaknesses." Under "Our Advantages," he wrote: product innovation speed, first-mover advantage in overseas layout, consumer reputation, and a young team. Under "Their Weaknesses," he wrote: old factories, old channels, and old mindsets—he wrote these four words so heavily that the tip of his pen almost tore through the paper.

His phone vibrated. It was a message from Park Min-ji: "President, have you gone home yet?"

He didn't reply. She sent another one: "Kim Tae-min said the lights in your office aren't on, but you're still inside."

He typed: "Just thinking about things. You go ahead and leave first."

He stared at the screen for a few seconds. Then he stood up and turned on the lights, the brightness stinging his eyes.

In January, Shunyi Foods' China strategy entered its second phase. Kim Soo-jin sent back a detailed expansion plan from Shanghai, spanning eleven pages of A4 paper, filled with charts and text. She divided the map of China into six major regions—East China, South China, North China, Central China, Southwest China, and Northwest China. Each region had a core city selected as a base: Shanghai, Guangzhou, Beijing, Wuhan, Chengdu, and Xi'an.

"President, we need to establish ourselves in one city before moving on to the next. We'll spread out in the first-tier cities first, then second-tier cities, and then third-tier cities depending on the situation. We don't need too many distributors; one or two per city is enough. What's important is quality control; having too many distributors will lead to price wars."

Chairman Wang Shunyi finished reading the plan and called Kim Soo-jin. "Soo-jin, you wrote this plan in too much detail. There's no need for that; I won't read every single word. But make sure the people, money, and time you need are clearly stated."

"People: at least one local salesperson in each city, with one Korean from headquarters to coordinate. Money: opening fees, entry fees, advertising costs, and logistics costs—the initial investment per city is about two billion Korean won. Time: from negotiation to stocking the shelves, it will take about three to six months per city."

Approved.

In early February, Shunyi Foods' strategic partner in Japan came knocking. It wasn't Chairman Wang Shunyi who sought them out; they came on their own. A Japanese man named Tanaka, whose business card identified him as a "Sub-manager of the Food Division at Mitsubishi Corporation," made a special trip to Seoul to talk, having been introduced by Park Jun-ho of Samyang Foods.

Tanaka spoke Korean very well. He wore silver-rimmed glasses, had neatly combed hair, and liked to use honorifics when speaking, yet every sentence got straight to the point. "President Wang, Mitsubishi Corporation's food distribution channel is in the Top 3 in Japan. We have looked at Sunyi's products, especially the fire chicken noodles and double truffle noodles, and the quality is very high. There is a demand for high-quality instant noodles in the Japanese market, but I have one requirement—your products must be produced locally in Japan, not imported from Korea."

"Why?"

"Japanese consumers have doubts about 'imported food.' They feel that imports are not as fresh or safe as locally produced items. If you are willing to cooperate with Japanese factories and use Japanese ingredients to make a Japanese version of Sunyi products, I can guarantee they will be in three thousand stores nationwide within a year."

Chairman Wang Shunyi thought for a moment. "You find the factories, you supply the ingredients, and we provide the recipe. How will the profits be split?"

"Forty-sixty. You get forty, we get sixty."

"Fifty-fifty."

Tanaka was silent for a few seconds as he took a sip of tea. "Fine. Fifty-fifty."

At the end of March, Park Min-ji projected the first-quarter data onto the large screen. The combined revenue of Sunyi, Samyang, and Kims was 420 billion won, a 40% increase year-on-year. Their market share was 33%, narrowing the gap with Nongshim to twelve percentage points for the first time. The atmosphere in the conference room was more enthusiastic than she had expected, but she didn't applaud. She waited until it was quiet before saying a single sentence: "Twelve percentage points. This time last year, it was nineteen. We've closed the gap by seven points in one year. At this rate, we will be number one by this time next year."

Zhang Junhao called in from Singapore, sounding very excited. "President, combined monthly sales across five Southeast Asian countries have surpassed 200 million Singapore dollars for the first time. Indonesia contributed the most, surpassing Vietnam. Malaysia has the fastest growth rate, up 60%. The Philippines has also picked up significantly."

Lee Jae-hoon called in directly from the production line, with the sound of machines running in the background. "President, we need to expand capacity. The logistics center converted from the old Kims factory is already full; we need to rent another warehouse. All three lines at the Sunyi factory are running 24 hours a day in three shifts, and the equipment can't keep up. We must buy another line next month."

"Buy it."

In April, Nongshim Foods' response arrived. Park Jung-chul announced at a press conference that Nongshim would adjust its strategic direction, shifting from family management to professional management. He himself resigned as CEO to serve only as Chairman. The new CEO was a consultant poached from McKinsey named Lee, in his forties, who didn't know how to make instant noodles but knew how to make PPTs.

After reading the news, Chairman Wang Shunyi called Park Jun-ho. "Nongshim changed their CEO. What do you think?"

"Lee Jae-il, from McKinsey. He used to do strategic consulting for Nongshim. He understands data analysis and market research, but he doesn't understand noodles. Instant noodles aren't something decided by data; they're decided by the tongue."

"What will Nongshim do next?"

"Cut costs, slash product lines, and optimize channels. These are the things consulting firms love to do most. But they forget that consumers don't buy noodles because your costs are low; they buy them because your noodles taste good."

In mid-May, Nongshim's new strategy indeed came down. The first cut Lee Jae-il made after taking office was to the product lines, slashing Nongshim's more than fifty products down to thirty. The second cut was to the R&D budget, which was reduced by 30%. The third cut was to overseas markets, prioritizing the withdrawal from those regions that were losing money.

When the news reached the Shunyi Foods office, Zhang Junhao put it most bluntly: "President, Nongshim has castrated itself."

Chairman Wang Shunyi put a stop to such talk, but his expression showed no sympathy. He walked to the whiteboard, picked up a marker, and drew an arrow pointing downward after Nongshim's name.

In June, at the annual mid-term meeting, Park Min-ji projected the semi-annual report onto the screen—the alliance's total revenue was 850 billion won, a year-on-year increase of 42%. Their market share was 36%, while Nongshim's was 45%. The gap was nine percentage points.

Choi Jae-won sat in the front row, his fingers lightly tapping on the table. "Nine percentage points. It was nineteen points this time last year. President, you said it would take three years. Now it seems it won't take that long."

"Mr. Choi, nine percentage points is still a gap. Even a small gap is still a gap."

"Then when will you close this gap?"

"Before the end of the year," Chairman Wang Shunyi said, standing at the front of the room without sitting down. "Before the end of the year, I want to take that top spot."