Chapter 146: The Founding of Honghua Daily
Yang Wendong asked, "What's the idea?"
Qin Zhiye replied, "Mr. Yang, you've probably already noticed this about Hong Kong's newspapers—they're all black and white, right?"
"You mean we should publish a color newspaper?" Yang immediately understood.
Indeed, every newspaper in Hong Kong at the moment was printed in black and white—just like in those old American movies. In fact, it was much like mainland China's papers in the 1980s: cheap ink that left your fingers black after a swipe. Only the most expensive papers avoided this problem with slightly better printing.
Qin nodded. "Yes. In economically developed countries like those in Europe and North America, newspapers are already printed in full color. Even many Japanese newspapers have started transitioning.
As people's living standards improve, so does their appetite for higher-quality reading materials. Once a color newspaper appears in Hong Kong, it's guaranteed to catch the attention of readers with stronger spending power."
"Good point," Yang nodded. It wasn't something he had previously considered. After all, after reading black-and-white newspapers for so long, one simply got used to it.
He wasn't sure exactly when color newspapers had entered the Hong Kong market in his original timeline, but given how the economy was about to take off in the 1960s, demand for such things was bound to grow.
"So," he asked, "Did you propose this idea to your previous employer?"
"I did," Qin said. "But they weren't interested. The printing equipment required for color newspapers isn't even available in Japan yet—it would have to be imported from Europe or the United States. Each unit costs over HK$100,000.
But that's not the biggest issue. The real problem is that color printing requires high-grade paper and more expensive inks, all of which must be imported. At that cost, we'd have to sell each newspaper for 50 cents, plus secure a significant number of advertisers just to break even. That's twice the price of the most expensive newspapers on the market today."
"That's a real issue," Yang agreed.
A six-figure investment in equipment wasn't the end of the world—any of the larger newspapers in Hong Kong could afford that. But the recurring cost of high-end materials was another story altogether.
It reminded him of the well-known company Tetra Pak from his past life. Their equipment wasn't even that expensive, but the catch was—you could only use their packaging materials, which allowed them to monopolize the global dairy and beverage packaging market. In the end, even the biggest corporations ended up working for Tetra Pak.
Qin added, "Exactly. They thought the risk was too high and lacked confidence in the market's willingness to pay."
"This was based on a market survey done this year?" Yang asked.
"Actually, it was last year—mid-1958," Qin replied.
"1958?" Yang smiled. "That was the worst period for the economy!"
Due to various factors, the property market had hit rock bottom in '58. Though real estate wasn't yet Hong Kong's economic backbone, it was a key component. When property prices fell, the entire economy slumped.
Qin nodded. "Yes. If we did the same survey this year, the results might look better. But even then, there's no guarantee that people would be willing to pay a premium."
"There's no such thing as a risk-free business," Yang shook his head. "If you believe something can work, then it's worth exploring."
Even Post-its had involved risk. Sure, there was demand—but demand didn't guarantee success. If they'd suffered a massive quality failure early on, it would've been a devastating blow.
That's why Yang placed so much emphasis on quality. For a fast-growing company, a major defect could be fatal.
Qin asked, "So does that mean you're willing to invest in a color newspaper?"
"I can't say yes just yet. Let's wait for a full analysis before making a decision. If the numbers add up, I'll seriously consider it." Yang didn't want to commit too soon.
Even as a time traveler who knew the future direction of the media, he couldn't afford to make impulsive decisions now. He wasn't in the same position he was in when he'd just started out. Back then, he could just "go for it" if something felt right. Now, he had to be strategic.
Besides, even if he were committed, there was no need to say it out loud. Leaders didn't hand out promises lightly.
"That makes sense," Qin said with a smile. "The economy this year is much better. Many people made a lot of money in real estate. Maybe now they're more willing to pay for a premium reading experience."
Yang nodded. "That might be true. But by your logic, that only tells us people can afford it. Why would they want to spend extra on a color paper?
Even if we launch one, what makes it worth the extra cost beyond a prettier layout?"
Qin replied, "Then we have to offer better content. If the substance is good and the visuals appealing, people will feel it's worth the price."
"But how do we make the content better? Better than the top newspapers that have been doing this for decades?" Yang asked.
This was a real blind spot for him. In a mature market with no obvious technological edge, how did you build a competitive advantage?
As a time traveler, he didn't have any magical tricks here. Flashy clickbait headlines—"shocking revelations" and the like—might work online, but this was paid print media. If he played it wrong, the paper could flop hard.
Qin thought for a moment. "It's not impossible. You see, aside from the occasional local event, most of Hong Kong's news coverage is international.
That means reports from the mainland, Taiwan, Japan, Commonwealth countries, and the United States. Local headlines happen, sure, but they're not the core. Overseas news dominates. That's where the opportunity lies."
Yang nodded. "True. So how do we stay ahead on international news?"
After all, Hong Kong was a small city. Even decades later, when television was widespread, the local news was often just trivial stories—minor car accidents, neighborhood squabbles, the occasional fire.
That said, the current era might offer more substantial stories due to ongoing geopolitical tensions—even if Yang knew full well that no actual wars would break out.
"Speed," Qin said. "No Hong Kong media outlet has the ability to do foreign on-the-ground reporting. What they all do is pick up news from foreign newspapers and wire services, and reprint them.
That gives us two competitive angles. First, how do we get the news faster than everyone else? Second, which sources do we choose from—and how do we select what to print once it arrives?"
Yang Wendong considered for a moment before saying, "So, the selection of content really depends on professional judgment? There doesn't seem to be a better solution?"
"Exactly," Qin Zhiye nodded. "Whether it's domestic or international news, it all comes down to the editor-in-chief's ability. We'll need a top-notch editor to make the call.
I can stay in Hong Kong and handle that part, but for overseas news, we'll still need someone based abroad. They'll have to filter the news and send it back to us."
Yang asked, "So once they've selected stories overseas, how do we get that information to Hong Kong? By mail?"
After all, there was no internet in this era. Transmitting large volumes of news back to Hong Kong sounded extremely inefficient.
"It used to be by mail," Qin explained. "A few years ago, most newspapers relied on friends overseas to send them clippings by post. They'd wait for foreign papers to be published, and then have them mailed back to Hong Kong before selecting what to reprint.
That meant most international news printed in Hong Kong was already a week or two old."
He continued, "But then Galaxy Daily shook things up. They hired someone pretty bold—she stationed people in several European and American cities just to monitor foreign newspapers. Whenever a hot story broke, they'd call Hong Kong immediately and summarize the main points over the phone.
For second-tier stories, they'd use express airmail. As a result, Galaxy Daily could publish international headlines just two or three days behind the original sources, leaving the competition in the dust."
"Galaxy Daily?" Yang raised an eyebrow. The name rang a bell.
Qin chuckled. "The same paper that first broke the story about you—the Post-it King."
"Ah, no wonder. So that wasn't luck after all," Yang nodded. It was clear now: no one in Hong Kong got ahead by accident.
He had looked into it after the initial report and realized that Galaxy Daily was actually the well-known Sing Tao Daily from his past life. Its leader, Hu Sin, was the daughter of Hong Kong press tycoon Hu Wenhu.
Qin continued, "Yes, Hu Sin is a formidable leader. Under her watch, Galaxy Daily is stronger than it ever was under her father.
By accelerating their coverage of international news, they forced the rest of the industry to adapt. But smaller papers simply don't have the budget, so only the top-tier outlets can keep up.
In the end, the media landscape became sharply divided—the strong got stronger, and the weak fell further behind."
Yang nodded thoughtfully. "So, if we want to start a newspaper, we'll need to do the same?"
"Yes," Qin confirmed. "If Mr. Yang intends to launch a general newspaper, it's not so urgent. You could just focus on Hong Kong and regional news—maybe throw in some lifestyle features.
But if you're aiming for a high-end paper, then international coverage is a must. And not just any coverage—it has to be fast."
"Stationing people overseas is just a matter of money. That I can do," Yang said. "But like you said, these people need to be experienced. Can you find them?"
Qin replied, "These people exist, but I can't guarantee they'll be willing to move abroad.
There is another way—we could just poach them. Most big newspapers already have staff overseas. We can review their past performance and recruit the best."
Yang nodded. "That works. So it's just a matter of who can spend more money."
"Exactly," Qin agreed. "It's easy to start a paper. Ming Pao launched with just HK$100,000. But keeping it afloat? You could burn ten times that without blinking.
And let's not forget—the Hong Kong media market is already saturated. Even if we succeed, it could take a long time before we turn a profit."
"I'm aware." Yang wasn't worried.
At present, Post-it production was more than self-sustaining. The adhesive hook trials in Hong Kong were promising, and even the glue traps were doing well during the summer months.
On paper, he still owed money to the bank—but a look at this month's financials made it clear that the debt could be repaid easily. Even the banks now saw him as a quality client with an expanding credit line.
In six months, all debts would be wiped clean.
He asked, "Mr. Qin, how much do you think Jin Yong's novels contribute to newspaper sales?"
"A lot," Qin said. "A good novel can drive thousands of people to buy the paper just to follow the story. But it's not sustainable. Once the story ends or the quality dips, people move on.
Still, if a novel can run for over a year and keep people engaged, it's enough time to build loyalty. But honestly, besides Jin Yong, I can't think of anyone who writes that well."
"I'll take care of that. You don't need to worry about it," Yang said. "We've talked a while now, and I assume you know about my background.
Funding won't be an issue. I want to build a paper that ranks in the top ten in Hong Kong. I'd like your help.
As for compensation—I'll double your current salary. How does that sound?"
He wasn't going to say "top three" just yet. It was too soon. Top ten was ambitious enough for now.
Qin considered this. "Will I be running everything?"
Yang answered, "As long as your proposals are reasonable, well-researched, and clearly beneficial, I won't interfere. Any large investments will need my approval, but the logic is the same."
Qin asked, "Have you decided on a name?"
"I'm thinking of Honghua Daily," Yang replied with a smile. "Short for Hong Kong Chinese Daily. What do you think?"
"Great name," Qin nodded. "Mr. Yang, I'm honored to join Honghua Daily."
Yang extended his hand with a smile. "Welcome aboard, Mr. Qin."
"Just call me Lao Qin," Qin said with a grin.
Yang added, "Alright, Lao Qin. It may be a little while before you officially start.
In the meantime, if you have free time in the evenings, go to Central and start scouting for a location for our future headquarters."
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