The Industrial Giant Reborn
Chapter 527 Jianlibao Cooperation Begins with AC Milan
Because the interests involved in Red Bull and Midea's Gigafactory were too great, and sole proprietorship was also convenient for self-management, Chen Zhiwen personally came forward to negotiate with the mainland government on corresponding conditions to allow sole proprietorship and full access to the domestic market.
But there is no need for Anta. The scale is too small. Chen Zhiwen does not need to spend his face here. He just needs to abide by the regulations of each place and maximize profits. Although Chen Zhiwen also thinks that the scale of the shoemaking industry will be very large in the future, But it is still not comparable to the electronic products and food industries, and this industry does not have any special protection walls. It is purely a competition for the brand's promotional efforts, as well as its own quality and price. Any consumer, except for a few brand fans, most people I just wanted to change the brand.
Entering the domestic market as early as possible does not mean cultivating a group of loyal fans, but that by building a reputation, it will become one of everyone's top priorities in the future.
Of course, another benefit is that Anta will definitely have stronger capital to expand terminal retail stores everywhere. Especially after China loosens many restrictions in the late 1980s or early 1990s, Anta's own capital will be able to expand its business on a large scale. When opening a store in the country, the property is cheap and the future growth value is high. In addition, Hutchison Whampoa, Wharf, and Land will inevitably build various large and small shopping malls in the country on a large scale. Anta can also easily enter and obtain high-quality locations. With this advantage, etc. In 20 years, brands like Nike and Adidas will not compete with Anta, but with rent.
This can be regarded as the advantage of the prophet. Spending a small amount of money in advance to lay out a large number of service industry properties in China, including retail stores, etc., can almost have a cost advantage that other brands cannot match.
In the following half month, Chen Zhiwen's life in Hong Kong gradually became more leisurely. He often took Liu Xiaoli or some other friends to taste various street snacks in Hong Kong, or took a cruise ship and went fishing.
In fact, there are no big things happening in Hong Kong at present. The entire Hong Kong society is as usual. Everyone is waiting for the results of Yanjing’s negotiations. However, there are too many things involved, and the British often act like monsters. Naturally, It won't go that smoothly.
This month, senior executives of several groups have also sent many people to the mainland to discuss investing in the mainland and developing the mainland market. But even with the permission of the big boss, the details will take time. The only way is to quickly Yes, it’s Jianlibao’s investment.
"Sheng Chen, this is the final draft agreement between us and Li Jingwei. The entire Jianlibao company, including Jianlibao's brand and ingredient patents, has a total valuation of US$850,000. We will take 49% of the shares and pay US$416,500. Then we will The two parties will inject funds at a ratio of 51:49, so we need to invest another US$400,000, for a total of US$816,500 to invest in Jianlibao." said Kong Weide, a vice president of Red Bull Group.
"Jianlibao is so valuable? Was it worth US$850,000 before we bought shares?" Chen Zhiwen asked curiously. Although US$850,000 is just a drop in the bucket to him, a mainland company that can barely produce products is worth so much. It did make him a little curious.
"Although Jianlibao itself has no assets, Li Jingwei is very capable. Through PepsiCo, he has produced a lot of drinks in the past two years and sold them to many big cities. It can be said that the channel has been initially established, and because of the taste Yes, the market feedback is also very high, but the cost of Pepsi's OEM is too high, resulting in high prices that ordinary people cannot afford. If you can produce it yourself, then the market potential will definitely be very large." Kong Weide explained: "And the most important thing is Pepsi-Cola also proposed to acquire the brand at the beginning of this year, but it was to fully acquire the brand and move it to Shenhai City for production, so it was rejected by Li Jingwei and the Sanshui County Government. At that time, Pepsi’s offer was US$600,000.”
"Okay, if there are no other problems, then we can sign the contract. Li Jingwei is indeed very capable." Chen Zhiwen nodded and said, after all, in the original history, others have built this brand.
You must know that the domestic beverage brands that were popular in the 1980s and 1990s were basically based in first- and second-tier cities, and they were all companies with a long history and strong financial resources. They took advantage of the opportunity of re-opening to expand the market and rise. Even these companies have They are all very capable, and they have fought their way out of countless remote places. Although Jianlibao is also a state-owned enterprise, Sanshui County is far behind other cities. Its rise is entirely due to Li Jingwei's personal ability. Part of this factor is also the fundamental reason why in history, a conflict of ideas broke out between him and the local government more than ten years later.
As long as you have your own production line, costs will drop, everything is under your control, and with Li Jingwei's management capabilities, Jianlibao will be able to take off immediately.
"However, Li Jingwei also made another request. He hoped that Hisense Bank could lend him a loan of approximately US$3 million." Kong Weide added.
"3 million U.S. dollars? What does he need so many U.S. dollars for? Tens of thousands of U.S. dollars, is it enough to buy the corresponding production equipment?" Chen Zhiwen asked.
In this era, the U.S. dollar, or any currency, is very valuable and has strong purchasing power. A normal family car only costs a few thousand U.S. dollars. The reason why the domestic Santana is so expensive is because of the low industrial level and defective products. Very much, even for Yanjing Jeep.
Similarly, industrial equipment in this era, especially light industrial equipment, is not ridiculously expensive. For hundreds of thousands of dollars, you can buy several very good production lines.
"What Li Jingwei means is that he needs a lot of funds to go to major cities in the country and continue to open up new markets. In this way, when the production capacity is sufficient, all the products can be sold immediately." Kong Weide said.
"Do you want to expand the market? Yes, as long as it's beneficial, I support it." Chen Zhiwen nodded and said, 3 million US dollars is not much, and besides, it is still a loan, and it will still have to be repaid in the future.
In theory, Jianlibao and Red Bull are actually competing products because they are both sports drinks. However, Chen Zhiwen still wants to invest in Jianlibao because the positioning of the two is different. Red Bull's attribute abroad is high-end, so in the future domestically also the same.
In later generations, Red Bull has only firmly grasped the high-end market, and the rest can only be occupied by various other energy drinks or functional drinks. If Red Bull ends up on its own, even if it builds another brand, the probability of success may not be high. But the possibility of it affecting you in turn is quite high.
Moreover, the value of Red Bull is only suitable for areas with a good economy. In other words, it will not start to gain popularity in China until at least 2000, while Jianlibao has already reached very high achievements in the 1990s.
In this case, it would be the simplest win-win situation for Jianlibao to avoid the problems it had in its history, or to do better than its history with its own support.
"Okay, then I will prepare the relevant agreement and sign it with Li Jingwei and the Sanshui County Government." Kong Weide said.
In fact, such an investment of hundreds of thousands of dollars or a loan of millions of dollars does not need to alarm the boss at all. Normally, this situation will be just an item in an annual investment form, usually at the end of the year. It’s almost time to give the boss a look. Of course, there will still be internal professional review.
However, the investment in Jianlibao was personally promoted by the boss and he paid close attention to it, so he needed to report in person.
"Okay, let's go. From now on, Jianlibao's operating status will also be summarized annually and then handed in." Chen Zhiwen nodded and said.
Even if Jianlibao achieved its original historical results in the 1990s, with a yearly turnover of more than 5 billion, which was very good, it was nothing to me, because at that time, not to mention Central, it was just a small building in Kowloon. Some buildings may not be more than this price. But what Chen Zhiwen is more concerned about is what kind of development Jianlibao can develop if it does not have the problems in its original history. Now that Hong Kong investors have invested in it, Chen Zhiwen is very interested in knowing what the upper limit of this domestic brand will be in the future.
But the future is the future, and it is just a baby now. Just invest some money and let the capable Li Jingwei do the tossing on his own.
The time soon came to July, and the first good news finally came back from Europe.
"Sheng Chen, we have already negotiated with the existing shareholders of AC Milan. The final transaction price is US$115 million. The transaction will be completed in three installments within half a year. 40% will be paid after signing the contract, and 30% will be paid after three months and half a year. % of the balance." Xiang Tianyou, who is in charge of Red Bull's business in Europe, quickly returned to Hong Kong to report after completing negotiations with AC Milan's shareholders.
"Okay, we finally got a European football team." Chen Zhiwen nodded and said, took the contract and looked at it. This is an agreement expressed in three languages, namely Italian, English and Traditional Chinese. The content in English shall prevail. This is a common way of international contracts. Not only because the United States and the former United Kingdom are relatively powerful, but also because among all the languages commonly used in developed countries, English is the simplest. Compared with other Moral education in French or even Chinese is far too simple, not on the same level at all.
After reading the agreement for a while, there wasn't much about finances, there were only a few pages about transaction laws, and most of them were about team operations, including the requirements of Italian officials and so on.
"How will we operate in the future? Are you ready?" Chen Zhiwen asked after putting down the contract agreement.
"We will not be involved in the operation of the team itself, but we will develop a certain level of reward plan, which is higher than before, such as goal bonuses in various competitions, and the treatment, which may be a little higher. , it can be regarded as encouragement, especially if you have achieved results and become famous. Others include the cooperation between Red Bull and football stars, as well as the advertising arrangements at competition venues, etc., and try your best to promote the popularity of Red Bull. Xiang Tianyou said.
"Okay, but we need to be more generous. It will be easier to find ways to buy people from other teams and buy good ones." Chen Zhiwen nodded and said. It doesn't matter if the team itself doesn't make money. What's important is that the results are good. Fame, so that you can endorse your various products.
"Okay, I will inform the current club manager, but if you want to trade top players, it may not be that easy and you will have to wait a long time." Xiang Tianyou said.
"It's okay, there's no rush." Chen Zhiwen said nonchalantly. The football team is just one of Red Bull's promotional methods. There is also basketball in the United States. In addition, various extreme events and the most common advertisements will be there. Yes, combined, Red Bull can maintain its strong reputation in the energy drink market. Unfortunately, European and American TV stations cannot intervene, otherwise it would be more convenient.
"Sheng Chen, there is one more thing. We have held an event with Italian football officials to prepare for next season to distribute a free bottle of Red Bull drink to all spectators attending Italian Serie A football matches. It is estimated that this event will cost thousands. Ten thousand Hong Kong dollars." Xiang Tianyou said again.
"Is it just in Italy?" Chen Zhiwen asked.
"Yes, if it involves the whole of Europe, the cost is too high." Xiang Tianyou said.
"Okay, let's start with Italy. At any rate, we have also acquired a football team." Chen Zhiwen nodded and said: "But for the whole of Europe, we can try to distribute them for free in the last few games, or sell them at cost price in other places. Give it to the shops inside the football stadium, and give these shops high profits. Those who go to participate in the game are usually avid fans, and they are not short of money."
"Okay." Xiang Tianyou agreed.
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