Chapter 1952 Find Out More

After Li Chaoren left, Yin Jun became more energetic.

He was not happy because he kindly dissuaded Li Chaoren from falling into the pit, but he remembered another thing.

The reason why Li Chaoren became Superman is definitely not only because of his achievements in real estate.

In fact, there are so many real estate giants in Xiangjiang. Except in the 1980s and 1990s, Li Chaoren's Cheung Kong Holdings rarely ranked first in the real estate market in Xiangjiang.

The company that has occupied the first place for many years is either Li Zhaoji’s Henderson Land Development or Zheng Yutong’s New World Development.

These two basically focus their greatest attention on real estate.

In fact, as early as the 1980s, Li Chaoren had already set his sights on the world and implemented comprehensive diversified investments.

For example, Hutchison Telecom, which was established this year in the previous life, led the trend of mobile communication networks in Hong Kong. Yin Jun even remembered seeing the clip of Li Shuan advertising for Hutchison Telecom. Hutchison Telecom was very popular for a while.

If Li Xiaochao hadn't gone into the mobile phone communications industry later, Hutchison Telecom might have continued to develop and consolidate and dominate the mobile phone business in Hong Kong.

But this is not enough for Li Chaoren to be called Superman.

Just three years later, Li Chaoren will create a very beautiful investment miracle.

That is to establish a joint venture with Procter & Gamble, the world's largest detergent giant, to help them enter the mainland market.

In this era, in addition to the Japanese, many foreign companies hope to find some partners in Hong Kong to use their influence on China to help them enter the Chinese mainland market.

This seems to be the same as mainland China's hope to let people from Hong Kong and Baodao act as middlemen, let them participate in investment and provide guarantees, which is the same meaning.

In such an environment, it is difficult for people in Xiangjiang and Baodao to remain underdeveloped.

Especially in the 1980s, people in Xiangjiang could basically make money while lying down.

Li Chaoren's effort to make money while lying down is even more exaggerated this time.

In order to take advantage of Li Chaoren's huge influence to enter the mainland market, P&G proposed to establish a joint venture and sold 33% of the company's shares to Hutchison Whampoa for HK$30 million.

Therefore, in fact, all the P&G products we saw in the 1980s and 1990s, including Rejoice, Head & Shoulders, Pantene, Tide, etc., were all P&G Hutchison products, not the "Cantonese" products in the advertisements. State Procter & Gamble”.

"Guangdong Procter & Gamble" is nothing more than a deliberate promotion by Procter & Gamble to cover up Hutchison's name and increase its influence.

After Procter & Gamble entered China, how crazy it was to get money. I believe that in the 1990s and 2000s, everyone could see clearly that this was really a super giant that dominated more than 80% of China's detergent market.

From the very beginning, the company entered a rapid pace, which P&G never expected.

Therefore, they regretted giving Li Chaoren 33% of the shares at such a low price of HK$30 million.

If I had known earlier, we could have done it ourselves!

But of course there is no regret medicine in the world, so they can only keep offering to buy back shares.

Li Chaoren is not a fool. He looks like he is making so much money, how can he sell it so easily?

So he chose two stages to sell shares.

The first one was ten years later, in 1997, when Hutchison Whampoa transferred 11% of P&G Hutchison shares to Procter & Gamble for US$650 million.

The second was another seven years later, in 2004, when Hutchison Whampoa transferred the remaining 20% ​​of P&G Hutchison shares to P&G for US$1.923 billion.

Adding up the two transactions, Hutchison Whampoa was sold for a total of US$2.573 billion. Compared with the original investment of HK$30 million, the profit was a full 600 times! It’s a huge amount of money! !

This business was called by Hutchison Whampoa's managing director Fok Jianning with a smile "a tooth-crushing fat chicken leg business." You can imagine how satisfied they were.

From the perspective of 2020, this is purely a brain-dead idiot from Procter & Gamble, who actually let Li Chaoren pick up the gold for nothing.

But if you were in the environment around 1988, you would know that this is a historical necessity.

Procter & Gamble has never done business in the new country of China, so how do they know that their business is guaranteed?

If they did a good job and were directly confiscated by Chinese officials, wouldn't they have to cry to death?

With Li Chaoren as a guarantee, they will feel more at ease. At least they don't have to worry about the mainland turning against them and swallowing up their efforts.

Yin Jun started thinking about P&G Hutchison from Hutchison Telecommunications.

As a Chinese, Yin Jun certainly does not want China's detergent market to be monopolized by foreign giants.

But in fact, China's detergent market has long been monopolized by foreign giants.

Giants such as Procter & Gamble, Unilever, L'Oréal, Mejixiang, Johnson & Johnson and other giants jointly occupy 80% of China's various laundry products market.

State-owned brands can only struggle in a small range of fields, and they can't even talk about counterattack.

This was the situation in the previous life. Although companies such as Libai, Lanju, and Huhai Jahwa continued to work hard to expand, they could not shake the overall situation at all.

But this life is different.

Even Procter & Gamble, the first company to come to China, only cooperated with Hutchison Whampoa in 1988, and it would be around 1990 before it truly entered the Chinese market!

China's current laundry supplies market is all in the hands of its own state-owned brands and companies!

Whether it is Huhai Jahwa, Jinwei Yumeijing, or Vitality 28; whether it is washing powder, soap, shampoo, skin cream, etc., Huaguo has its own brands, and the quality is quite good.

The cosmetics, washing products, etc. of our era are really not that bad.

For example, Yumeijing skin care products won the gold medal in France in 1992 and were recommended by France for domestic use - this is France! One of the ancestors of the cosmetics industry! !

But their biggest shortcoming is that the vitality of the market segment is too low.

For example, Vitality 28, a super-concentrated laundry detergent, accounts for 25% of sales in Xiangjiang, not to mention 70% of sales in China.

By the early 1990s, the market share had increased to 80%.

In this case, once foreign companies cut off your Vitality 28 brand, there will be a huge vacuum for them to plunder and occupy.

Historically, our washing powder market has been lost like this.

If there are four or five dynamic 28 companies in the market at the same time, and they all occupy a certain market share, then even if one of them dies, the rest of the market will quickly be occupied by other companies with similar strength. It was all swallowed up by foreign companies.

Huhai Jahwa's "Lumei" and "Mejiajing" are also similar to the example of Huihuo Erba. After being forced to form a joint venture with foreign capital, they were directly relegated to the sidelines and lost their market share.

However, it’s still the same sentence.

If you look at it from the 1980s, it is not unreasonable to see that the vitality of this market segment is low and one brand often dominates the country.

Because in this era, almost all companies and factories are state-owned or collectively owned units!

We are all one family. Is competition and market competition useful? Does it make sense?

There is no need at all!

Anyway, making money belongs to the country, monopolies also belong to the country, good things belong to the country, and bad things also belong to the country. Does it matter if I do more or less?

There was not enough competitiveness and a lack of aggressive mentality, which led to this weird situation in the 1980s.

After 2000, when major private companies emerged and continued to rely on their strength and ambition to seize the market, that was the beginning of us regaining some lost ground.

Yin Jun thought of the wave of invasion caused by P&G, and naturally wondered if he could do anything.

After all, there are still three or four years of preparation time. If you have a good strategy and can actively plan it out, you will definitely be able to achieve better results than in your previous life.

Even if it is just to acquire these brands first and guide them to develop, it would be a great thing.

At least in Yin Jun's hands, it is absolutely impossible for these national brands to disappear in the long river of history, only to be lamented by future generations.

Moreover, ten years later, when we actively introduce foreign capital and force local factories to establish joint ventures with foreign capital, these factories are already Hong Kong-funded enterprises, and there is absolutely no way they will be forced to form joint ventures with companies such as Procter & Gamble and SC Johnson. Ruin these brands.

With Yin Jun's years of preparation, I believe that neither Huajing nor the local governments below will create any obstacles for Yin Jun to enter this industry.

But such acquisitions and integrations cannot be solved by just talking.

Involving the acquisition and integration of several or even a dozen factories, it is a very large project. The feeding, drinking and eating of tens of thousands of workers, as well as the improvement of various production scales and plans, require a large amount of manpower and material resources.

The so-called alternate lines are like mountains.

Kirin Group is not like Procter & Gamble and Unilever, who have been doing this kind of work all their lives. As long as they negotiate the conditions and bring production lines and machines directly from abroad to China, they can immediately put into production and start to occupy the market. .

Therefore, even if Yin Jun has this idea and interest, he cannot negotiate rashly.

This requires very detailed planning and investigation, as well as a series of trials and discussions before it can finally take shape.

Compared with these, funds are a very small matter. The hundreds of billions of Hong Kong dollars in cash flow of the world's richest man are not bragging, but real gold!

Thinking of this, Yin Jun wrote down some of his ideas, including what companies he wanted to acquire and how to integrate them, all in his notebook.

In two days, he was going to discuss it with Le Yiling.

No matter whether this acquisition and integration can be successful or not, it will never go wrong to understand and do some research first.

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